Report on:
Setup new Airtel business model through IOCL petrol pumps & LPG Domestic, co martial channel
Submitted to: Mr Lokesh Mehra (Territory manager)
Submitted by:
Abhishek Ameriya Bharti Resources Learning Center B-121 Bapu Nagar Jaipur (Rajasthan) .
ACKNOWLEDGEMENT
The Project Title BRAND PROMOTION & LEVEL OF CUSTOMER SATISFACTION IN AIRTEL has been conducted by me during 05th JULY 2008 to 20th AUG 2008.I have completed this project, based on the primary and secondary research under the guidance of: Mr. LOKESH MEHRA, Manager, Sales and Marketing- Modern Trades in Rajasthan. I owe enormous intellectual debt towards my senior guide Mr. LOKESH MEHRA, who has augmented my knowledge in the field of Telecom sector. He has helped me to learn about the various techniques to handle and convince customers. My increased spectrum of knowledge in this field is the result of his constant supervision and direction that has helped me to absorb relevant and high quality information. I would like to thank all the respondents without whose cooperation my project would not have been possible. Last but not the least, I feel indebted to all those persons and organizations who have helped me directly or indirectly in the successful completion of this study.
DatedABHISHEK AMERIYA
20th
AUG,
2008
PREFACE
Management of modern business requires an appreciation of multi-disciplinary concepts and in depth knowledge of specific analytical tools, geared to solve the real life problems. No doubt every real situation is unique but a set of theoretical tools of knowledge, itself based on empirical foundation. It can help in developing the mechanism for handling such situation. So the MBA curriculum has been desired to provide to the future managers ample practical exposure to the business world. Summer training is essential for the fulfillment of MBA curriculum, it provides an opportunity to the student of understand the industry. My summer training for 45 days at Bharti hexacom ,Jaipur was an eye opening experience to see the impact of liberalization of 90s. It has brought the corporate sector into global mainstream and momentous market reforms.
As the telecommunication industry is marching with gushing speed toward the horizon, AIRTEL is also heading with great speed to keep pace with the basic telephony. In MBA we are taught about the subjects, which if not applied properly is a simple waste of time. At Bharti Hexacom I got a chance to apply my theory to the latest technological, general management and marketing environment. In the 45 days of exposure I learned a lot on various aspects of organizational structure, departments, technology, communication and their impact.
Table of Contents
1. Topic of the Project Repot. 2. Cover Page. 3. Acknowledgement.
4. Preface
5. Table of Contents. 6. Introduction of the Company Profile. 7. Introduction of the Topic.
8. Objective of the Study. 9. Research Design and Methodology: 10. Interpretation of Data. Analysis and Recommendations. Conclusion. Bibliography.
11. 12.
13.
INTRODUCTION
Airtel with its tie up with IOCL used the Indian oil outlet {gas agency } to sell is products {connection}. Airtel gave number of benefits to the indane customers like ;
For postpaid connection
Initial charges were only Rs 250 instead of 500 and that too refundable security charges .
Free hello tune subscription for the first month . Airtel also took the pain to provide the phone numbers of the customer's choice on the itself . Activation of the new number in one day.
For the prepaid connection
Direct Rs 100/- off on various prepaid plans like lifetime or one year plan Free hello tune subscription for the first month Activation with in 10 minutes on the field itself Before going in detail to each of the offer given by Airtel and the problem faced during the project, it is essential to first have a glance on these two companies .
BHARTI ENTERPRISES
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TYPE Public, Listed on BSE FOUNDED 1985 HEADQUARTER New Delhi, India S KEY PEOPLE Sunil Mittal INDUSTRY Telecom Mobile and Fixed-Line PRODUCTS Telecommunication operator REVENUE USD 33.66 billion SLOGAN Express Yourself
OUR VISION
BY 2010 WE WILL BE THE MOST ADMIRED BRAND IN INDIA LOVED BY MORE CUSTOMERS TARGETED BY TOP TALENT BENCHMARK BY MORE BUSINESSES
OUR BRAND ESSENCE
THINK FRESH DELIVER MORE BRAND ATTRIBUTES FRESH IN TOUCH ON MY SIDE
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CAN DO
AWARDS AND RECOGNITION
Bharti Tele-Ventures, its subsidiaries and management have received several awards and recognitions, including:
Bharti was recognized as one of the "Leading Lights of magazine with analytical inputs from research
Telecom" in Asia in November 2001 in the Asian edition of the "tele.com" consultants Frost &Sullivan.
The leading telecommunications service provider in India in
a survey of Indian companies conducted by Business World in association with Indian Marketing Research Bureau in September 2001.
The Techies award from Information Communications
World, an international business magazine, for four consecutive years (1997 to 2000) for brand excellence, network quality, customer service and value added service in our Delhi mobile circle.
Golden Peacock National Training Award 1999 to Bharti a non-profit association in India committed to
Cellular for our Delhi mobile operations from the Institute of Directors, improving the competitiveness of Indian business by focusing on development of business leaders, for the best human resources and training practices.
Mr. Sunil Bharti Mittal (Chairman and Group Managing
Director) was honored as " One of the Top Entrepreneurs
Worldwide" for the year 2000 and "Stars of Asia" for the year 2001 by international business magazine, Business Week.
Mr. Sunil Bharti Mittal was selected as the "Businessman of
the year 2002" by Business India.
Mr. Sunil Bharti Mittal was awarded the Dataquest IT man
of the year 2002.
Mr. Sunil Bharti Mittal was selected the "CEO of the year
2002" by World HRD congress.
BHARTI ENTERPRISES
Bharti Enterprises is one of Indias leading business groups with interests in telecom, agri business, insurance and retail. Bharti Airtel, Indias leading integrated telecom company, has been at the forefront of the telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. Bharti has grown successfully in partnership with various leading companies of the world - Singapore Telecom, Vodafone, Warburg Pincus, and British Telecom, to name a few. The other businesses in the group are Beetel, communication and media devices, Bharti AXA, a financial services JV with AXA of France, and Bharti Del Monte India, a joint venture with Del Monte to offer fresh and processed fruits and vegetables in the domestic as well as international markets.
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Bharti has recently forayed into the retail sector with its subsidiary Bharti Retail. It has als3o entered into a joint venture with Wal-Mart for setting up the supply chain, logistics and cash and carry to support the burgeoning retail market in India.
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COMPANIES OF BHARTI ENTERPRISES
BHARTI AIRTEL BHARTI TELETECH LTD TELECOM SEYCHELLES LTD BHARTI TELESOFT LTD TELETECH SERVICES (INDIA) LTDFIELDFRESH FOODS PVT LTD
BHARTI RETAIL PVT LTD
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BHARTI AIRTEL
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agricultural products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.
Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - Mobile Services, Airtel Telemedia
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Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.
Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 71,777,448 customers as of June 30, 2008, consisting of 69,383,716 GSM mobile and 2,393,732 Telemedia customers. The company is the largest GSM mobile service provider in the country, based on the number of customers; it has an all India footprint, with mobile operations in all the 23-telecom circles of India. The company also provides telemedia services (erstwhile broadband & telephone) in 94 cities.
The company complements its mobile and telemedia services with national and international long distance services. For international connectivity to the east, the company has a submarine cable landing station at Chennai, which connects the submarine cable - Network i-2-i, connecting Chennai and Singapore. For international connectivity to the west, it is a member of the South East Asia-Middle East-Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other global telecom operators, and has commissioned the fourth generation cable system. SEAME-WE-4 supports telephone, Internet, multimedia and various other broadband and data. The company provides reliable end-to-end data and enterprise solutions to the top corporate customers by leveraging its nationwide fiber optic backbone, last mile connectivity in mobile and telemedia services, VSATs, ISP and international bandwidth access through the gateways and landing stations.
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Bharti Airtel Ltd. Is today considered one of the Indian finest companies and its Brand Airtel has over 40 mn. GSM and Broadband & Telephone Customers spread across the Length & Breadth of India.
BUSINESS DIVISIONS
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers
The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world.
The group focuses on delivering telecommunications services as an integrated offering including mobile, broadband & telephone, national and international long distance and data connectivity services to corporate, small and medium scale enterprises.
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The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fiber on its national long distance network. For international connectivity to east, it has a submarine cable landing station at. For international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators.
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BHARTI AIRTEL SERVICES LIMITED Bharti Airtel Services Limited (BASL) is a wholly owned subsidiary and strategic business partner of Bharti Airtel limited in the customer experience domain. It is a specialist organisation which is creating a world class frontline customer interfacing ecosystem for Airtel, and thus, would play a critical role in realizing Airtels vision of being the most admired brand in India by 2010. Augmenting customer experience by enhancing performance and delivering greater efficiencies is the key focus area at Bharti Airtel. BASL therefore addresses the entire value chain in the customer experience domain with its vast repertoire of solutions in areas such as talent acquisition, competency development, and performance management and employee engagement.
BASL impacts business performance by sourcing world-class frontline talent, reducing attrition, increasing productivity and enhancing customer delight. Besides, it not only enhances productivity of over 20000 frontline employees on its rolls but also designs and implements learning and development solutions for a large number of people employed with Airtels associates or channel partners, who are instrumental in creating brand customer experience for Airtel.
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ORGANISATION STRUCTURE IN RAJASTHAN (BHARTI HEXACOM LTD.)
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BANDS
3-
sr.V. P . +V. P+G .M
2- deputy general mgr. + senior mgr.
Manager + assistant manager
F- executive + senior executive
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INTRODUCTION TO THE TOPIC
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Subject under study Introduction about IOCL business model:
It is self sustain business model which is started by Airtel on all IOCL petrol pump and LPG gas agency in Jaipur city. In this business model we are going to start Airtel business counters on all IOCL petrol pumps and LPG gas agencies. We will use there already made customer base of thousands customers and domestic & co martial channels to increase not only sales of Airtel telecom products but branding of the company also. There is agreement with IOCL pumps and LPG gas agency owners That we will give them 3% of total business which is done by there counters on lapu sim and 45% on new activations as well as all benefits which we are providing our retail counters and outlets. In initial Kit we are giving them such package like- Airtel PCO coin box, lapu balance, SUKs, recharge cuppens. We have divided this business model into two parts Prepaid which is we use for all IOCL petrol pumps. Prepaid & Postpaid which is we use for LPG gas agencies.
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Branding:
Airtel is very good brand name in telecom sector because of its very good network, easy availability of products and scheming patterns which meet the customers demands and after success of these business model it looks like one more feather in cap of airtel. Airtel is only Telecom Company in India which has started that project till now and such type of tai-up which providing easy buying station to customers.
Advertising:
As we know that Airtel is very big brand and it has highest market shares in telecom industry so each and every person aware about this company. So there is not so much advertising is required because it is nation wide tie-up and almost all the news papers and websites already printed that news. We have also started to put sign boards, hording; knops, banners as well as we are trying some talkative advertisement like printing materials, T-shirts, caps. Instead of these all we are concentrating on one to one communication with every consumer so they can better understand about that service.
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Type of advertisement: Hoardings-
Sign Board:
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Channel Sales:
As I have mentioned earlier in this business model we are using readymade channel of IOCL. For prepaid connections we have huge consumer base of petrol pumps and for post paid connections we will target LPG gas agency and there domestic and co martial channels. With the help this big network we will sell our product and achieve new height. To run this entire business network we have defined two channels: IOCL petrol pump network Through this network we will start our business different location of the city. IOCL LPG gas network Through this network we will use Door to Door service marketing method. Initially both the channels execute by the team 1 and team 2 but when business model run smoothly these channels will executed by agency owners.
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Consumer buying behavior:
Definition of Buying Behavior: Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand: Why consumers make the purchases that they make? What factors influence consumer purchases? The changing factors in our society. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for: Buyers reactions to a firms marketing strategy has a great impact on the business success. The marketing concept stresses that a firm should create a marketing mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.
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OBJECTIVE OF THE STUDY TO STUDY..
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RESEARCH DESIGN AND METHODOLOGY
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Market research & analysis: SWOT ANALYSIS OF IOCL BUSINESS MODEL: STRENGTH WEEKNESS
.
Huge customer base Very good brand name Different scheming programs
Dependency on dealers Time consuming Geographically waste area
We can achieve new heights Brand promotion for company.
Convenience of dealers Wide spread market
OPPORTUNITIES THREATS
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Methodology
Training Sessions:
Training session is very important part of this project. Because as we know it is self sustain business model and the training which we are providing, whole business will run on the basis of that training sessions. We have divided this training session into 3 phases.
Phase 1: Phase 1 is most important part of whole training session because this session was arranged for all petrol pump and agency dealers. That is the region to cal it B to B training (business to business) in this training session we had concentrate only on business in puts and revenue generation part. How it will work? How it will become good business for them? Awareness about Airtel & IOCL business tai-up and bit idea about new activation formalities, awareness about all products, and initial business kit which we giving them etc.
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Phase 2:
This training session was conducted for special team which start The business in initial stage and after that they can train all other petrol pump & LPG gas agency workers so that they can run this business on there own. In this training session we were concentrating on increase our business as much as possible and simultaneously we make people aware about business strategies and availability of products. Before start this training session we divided that team into two parts one for all petrol pumps and other one for LPG gas agency. During the training we concentrate some functionalities of activation process, balance transfer through lapu sim, formalities of PAF, declaration of agency owner, different annexure for different customers. Commands for activate new connection. Etc.
Phase 3: It is final stage of training session and this training is given by prepaid and post paid team members to petrol pump & LPG gas agency workers. It is informal training
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session and keep going on till they get understand all function and formalities of this business model. Main motive of this training session is that when petrol pump & gas agency workers
are get train by the team business will work automatically and become self sustain business model.
Activation process: Step 1: Put sim in mobile handset and dial 123. Step 2: Recharge your sim with appropriate amount. Step 3: UN*mobile no Send to 59109 from lapu. Balance transfer through lapu: Airtel services Easy charge Recharge Customer mo. No. Amount Enter MPIN ok. Different annexure: Annexure A for Gram Panchayet. Annexure B for Companies and Corporate. Annexure C - for Defiance. 31
Annexure D for Students & Institutes. Annexure E for Outstation Visitors. Annexure F for Foreigners Annexure G for Outstation Students.
Location charts:
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Approach to different level of customers:
To make this business model successful, we have to understand consumer physiology, consumer buying behavior, consumer needs and it is changes according different living standard and age group. So, to understand different perception and different mind set of consumers we have divided all people into 3 set of consumers according to there living standard and age group. And these 3 sets are: -Lower middle class: In this category we assume those peoples which are earning below 10000 thousand, we had research on them and find out there needs, which type of scheme can attract them and which type of product they are using and why? -Upper middle class: In this category we assume those peoples which are earning between 10000 20000 thousand, there is majority in that particular set of consumers and mostly they are using all type af product exist in the market and we had research on them and find out there needs, which type of scheme can attract them and which type of product they are using and why?
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-Upper class: In this category we assume those peoples which are earning above 20000 thousand, they have there particular mind set and different type of schemes are does not effect there buying behavior. They always believe in good brands and mostly they use multiple products together. we had research on them and find out there needs, which type of product they are using and why? Channels n area distribution: To manage this business model and control all the areas of the city we have divided whole team into two channels. Prepaid team which concentrate on petrol pumps. Post paid team which concentrate on LPG gas and housing channels. Channel 1: Two start our business we made channels for all petrol pumps and assign one petrol pump to each member of the team. So that we can cover whole city for this model and distribute particular area. After this we have given all the responsibilities of the team one to particular team leader. So that all team members can address there quires & suggestion to him regarding DSR.
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Channel 2:
Channel two we have used same method which we are using in channel one but the major difference is that in channel 2 there is no need to arrange channel and area distribution. Because hear already channel defined we are using.
Primary Data Observation method:
To collect information why we have chosen observation method? We have chosen observation method because some times when we talk to customers about there needs and buying behavior they get confuse and we can not reach on reality. But with the help of observation method we can understand consumer psychology. Benefits of observation method:
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We can understand consumer psychology. We can understand consumer buying behavior. We can understand consumer needs. Very close to reality. There is no disturbance & boundaries. Example: One parson asking about different schemes and tariff vouchers and buy particular one. We can understand his needs like where he makes maximum calls local, STD or ISD. And how much he can spend in.
Questioners-1
Name Occupation Age Income-
1 Which mobile network do you use? Airtel Idea Vodafone Tata BSNL Reliance 2 Why Airtel is good?
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Network Scheming Easy availability 3 Which is your favorite plane? New muskan pack Sathi pack Sms pack Different terrifies 4 How much amount do you spent in mobile every month? 0-500 500-1000 >1000 5 Availability of new Airtel connection or recharges on petrol you? Yes pumps is help
No
Questioners-2
Name Address1
Age-
Are you satisfied with this project if no, why?
2 Is any changes required in business model if yes, where?
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3 Is this business model useful to customers if not, why?
4.Can we start new schemes with sale of Petrol or Diesel & Airtel new activation if yes, which schemes?
Secondary Data Internet Newspaper Magazines
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Others
Data Analysis (Statistical Method) Result according to survey:
Airtel-84 idea-52 Voda-36 Tata-40 BSNL-12 Reliance-28 Airtel Idea Vodafon e Tata BSNL Reliance
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All networks user.
60 50 40 30 20 10 0 Network Scheming Easy availability Series1
Why Airtel is good. Interpretation: Out of 250 users, Airtel has maximum 84 user, Idea has 52 user, Vodafone has 36 user, Tata has 40 user, BSNL has 12 user and Reliance has 28 user. Thus, Airtel has good network, scheming and easy
availability.
New muskan pack Sathi pack Sms pack Different terrifies
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Consumers favorite pack.
90 80 70 60 50 40 30 20 10 0 0-500 500-1000 >1000 Series1
Amount spent in mobile every month (approximation) Interpretation: Out of 84 users in consumers favorite pack,12 consumers used New Muskan Pack,20 Consumers used Saathi Pack,27 Consumers used SMS Pack and 25 Consumers used
different Terrifies.
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Yes
No
IOCL Business Model will help you.
All income groups are equally uses Airtel. All Age groups are equally uses Airtel. Interpretation: About 85% Consumers said YES And Remaining 15% Consumers said NO.
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Recommendations Schemes we should come out such new schemes with the help of petrol pump and agency owners like discount on ideal amount of oil purchase. Advertisement we should concentrate on visual advertising so people will attract towards. Daily offers we can keep Airtel scheme chart/board where we will mention Today Offer so customer will get to know about offers. It helps in seals promotion.
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Conclusion
Now business model is not complete, so we cant conclude it now but we can show some features of this unique business model. It is self sustain business model. There is very huge consumer base. It is less efforts and money consuming. It is unique business model in telecom industry. Both the companies are market leaders.
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SWOT ANALYSIS BHARTI AIRTEL STRENGTHS
Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.
WEAKNESSES
An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market
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investment opportunity for the business once the Indian market has become mature.
OPPORTUNITIES
The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic Solutions. Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices for with example a replacing the Revenue-Per-Customer model Revenue-Per-Minute partnership is held with BlackBerry Wireless
model which is better suited to India, as the company moved into small and remote villages and towns. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower
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company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's longterm strategy.
THREATS
Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.
The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase
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Bibliography Source 1: www.bhartiairtel.in Source 2: www.india-cellular.com Source 3: www.airtel.in Source 4: airtel-broadband.com Source 5: www.trai.gov.in Source 6: www.hindustantimes.com Source 7: news websites (including Indiainfoline, ndtv, economic times, etc.)
Source 8: Advertisements & Write-ups fromes.
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