Airtel Vs BSNL - Marketing
Airtel Vs BSNL - Marketing
ON
A STUDY ON THE CHANGE IN BUYING BEHAVIOR & CUSTOMER PERCEPTION TOWARDS BSNL VS. AIRTEL
VS
Submitted in partial fulfillment for the requirement of the award of degree in Master of Business Administration
Under the Guidance of:Miss Monisha Bhatia
DECLARATION
I ARSHAD ABIDIN a student of MBA of ITS ENGINEERING COLLEGE respectively hereby declare that the Project Report on A Study on the Change in Buying Behavior & Customer Perception towards BSNL vs Airtel is the outcome of my own work and the same has not been submitted to any other University/Institute for the award of any degree or any Professional diploma.
__________________
ACKNOWLEDGEMENT
PREFACE
TABLE OF CONTENTS
1.
INTRODUCTION 1.1. 1.2. 1.3. 1.4. History of Cellular Telephony in India Cellular Industry in India Cellular Market Structure in India The Churn in the Cellular Industry
2.
CONSUMER BUYING BEHAVIOR 2.1. 2.2. 2.3. Stages of the consumer buying process Types of consumer buying behavior Categories that effect the consumer buying decision process
3.
4. 5.
OBJETIVE & SCOPE Research Methodology 5.1. 5.2. 5.3. 5.4. 5.5. Introduction Research design Data sources Research instrument Limitations:
6.
FINDINGS & ANALYSIS 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. Category of service subscribed Cell phone Service subscribed by users The Break Up: Break up in terms of Airtel and BSNL Spending Per Month By Subscribers Time taken for activating sim Satisfaction from Current Tariff 6
Satisfaction from network quality Satisfaction from SMS Service Satisfaction from Roaming facility Satisfaction from Value added Services(VAS) Satisfaction from Voice mail service Satisfaction from Billing Satisfaction from Customer care services Users planning to shift to other cell operators Users recommending their cell operator to others
INTRODUCTION
INTRODUCTION
1. INTRODUCTION "Telecommunications is the backbone of our future economy. International competitiveness increasingly depends on the development of a
The cellular industry all over the world has been witnessing very high growth rates in subscriber base in recent years. For developing countries in particular, cellular services are becoming a very significant proportion of the overall telecom infrastructure. The mechanics of competition within this market involve complex feedback effects between individual service providers and with their operating environment, and these forces play an important role in governing the growth of this industry.
In a country like India which is not yet telephone-saturated and the ongoing changes in related areas are resulting in a rapidly changing profile of users, providers and their respective needs, continuous revision of the telecom policy is imperative. Given the emerging new technologies and the integrating economies there must be fairness among competitors.
The tele-density in India is about four per hundred people in respect of the fixed telephones and a little less than one in respect of the mobile telephony. The low densities are not because there is no need for a telephone but because of its high cost that many cannot afford that one. The situation here is nothing but holding true of the law of demand. Isnt it?
The cost for the companies can come down if the revenue share imposed on them as a condition of license is abolished or drastically reduced. Today every telephone company is bound to pay a share out of its revenue to the exchequer. These costs are, however, not to be scheduled to take a step further in the development of the telecom. In addition when we go through the telephone bill there is a 5 to 8% service charge. This amount also does not go for the telecom development. If these external cost are removed there can be seen a spurt in demand of not less then 40% as expected. 9
While taking the side of suppliers a lot of new companies are coming into the battlefield resulting in reduction of prices and hence a little less burdensome on to the customer. The cost of interconnection with the incumbent is proving to be contributory to the high cost of services provided by the competitors.
The delay in the interconnection disregards the quality of service and high cost will detract from affordability. This is an area in which no consumer body can knowledgeably contribute unless it has the assistant of experts or economists who alone can discover all the relevant fact of all the contesting companies. It indicates the pre-eminent domain of TRAI (Telecom Regulatory Authority of India).
As the driven down of the prices for long distance including international services reduces the amount available for subsidizing the local service, the rental for local services are being increased. Considering that about 90% of the long distance calls are made by less than 20% of customers, 80% of customers are having to pay higher rental this depresses the demand for telephones and affordability. The urban business subscribers will be bearing the bond of the subsidies to be given to the rural private consumers.
1.1
The technology that gives a person the power to communicate anytime, anywhere - has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications.
The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Groupe Speciale Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the 10
world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services.
1.2 The
Cellular Industry in India Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.
1.3
As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to operate in designated geographical operating areas. The service areas include four metro areas and 18 circles categorized as A, B and C. (The categorization is based on the revenue Proceedings of the 36th Hawaii International Conference on System Sciences).
The potential with category C circles in the lower end of the scale. For example the metros account for 40% of the subscriber population, with Category-A, B and C accounting for 33%, 23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual license fee as a percentage of their revenue to the Department of Telecommunications.
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The entry and license fees varied according to the service area, highest for metros and lowest for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and their licenses were revoked leading to a monopoly situation in certain areas. Apart from these charges, each CMSP has to share the revenue with the long distance operators for carrying inter-service area calls.
In profitable metros and circles, the competition is severe and the market is split between the two operators. In a price-cap regulated market, the operators use appropriate pricing strategy to win customers and win market share. In highly price-elastic markets, such as in India, as the service provider reduces the price, the subscriber base increases considerably, and so is the network traffic. The increased network traffic decreases the performance and the quality of service, inviting customers to switch. Being a new entrant in a metro area, the government operator reduced the airtime charges to such an extent that the subscriber base increased suddenly leading to poor network performance. The operator did not have enough network capacity to handle calls leading to blocking of calls, with frustrated customers switching over immediately to competitors.
The operators also have to resort to non-pricing competition strategies to win customers. In India, CMSPs offer a variety of service plans as a means to attract new customers. Different service plans include: pre-paid calling card schemes, discounted airtime rates for evening and night time calls, discounted roaming charges, no or minimum activation fees, and reduced mobile to mobile long distance call rates. The service providers incur additional advertising and infrastructure cost for implementing these plans. Short Message Service (SMS) and Wireless Application Protocol (WAP) service are fast catching up. For example, in India, about 500,000 SMS messages are being carried by a service provider in one metro area alone. When the sector moves over to an oligopoly market, the operators have to provide improved quality of service and value added services in order to survive and gain market share. Larger operators who have experience and infrastructure may be able to provide a higher quality of service and other value-added service at a lower price. They also have access 12
to larger project financing for enlarging their networks and services. For example, a single large operator now has license to operate in 14 service areas in the country with the largest footprint to cover most of the areas of the country. Mergers and acquisitions are commonplace as the operators are consolidating their revenues to survive in the market places.
Cellular subscribers and those with a propensity to go mobile in Delhi have never had it so good. They now have four service providers to choose from, each offering an array of both pre- and post-paid schemes. More importantly, average tariffs across plans have, by some reckoning, dropped by at least 50 per cent in the last six months. The entry of BSNL saw a further drop in tariffs and the operators have come out with new schemes to retain their subscribers and attract fresh ones.
What does this mean for subscribers and for the cellular industry in Delhi? All the four operators Essar Mobile Services Ltd., Bharti Celluar Ltd, MTNL and Idea Cellular services are convinced that the market will only expand and the subscribers will benefit even more. Their reasoning is that cellular penetration in Delhi, which traditionally occupies the third position in other areas, is less than fifty per cent. Therefore, entry of new players will only increase awareness about the facility, the companies say.
Moreover, the state-owned MTNL has also been playing with its cellular service for quite some time. that, with the imminent launch of limited mobility using CDMA (code division multiple access) technology by companies like Tata Tele Services will only add to the subscriber base, probably result in further reduction of tariffs, and an even greater widening of the cellular market, according to officials in four cellular companies now servicing Delhi. However, the companies also sound a note of caution any further drop in tariffs will be harmful to the companies, points out one of the officials taking care of the Sales & Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi across different plans have fallen by 30 per cent since December with launching of the CDMA services.
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Besides the fall in tariffs, what has really happened with the entry of CDMA is a heightened awareness in the market. Mobile penetration in Delhi and its suburbs is estimated to be less than twenty-five percent of the population and the cellular operators believe that this number should definitely go up. It is here that BSNL decided to target the customers with what it believes are unique products and features. Its emphasis has been on value proposition and brand building. Mobility is not only about carrying voice, as per the reports from the marketing department and adds that the unified messaging system for the post-paid customers of (now BSNL) is one such unique product. Accordingly, BSNL signed in its subscribers in lakhs from the year onwards it has been launched in Delhi. Industry analysts say that a majority of them will be pre-paid customers, whose loyalty to a particular brand is always in doubt. However, pre-paid for the cellular is nothing but the engine for growth and there is always a possibility that most of them will shift to post-paid once they are convinced of the quality of service provided. On the other hand the entry of a new operator lends more visibility to the service and there is also increased trade activity that is the number of dealers will increase and more people will be on the road trying to sell the service and product. There is also greater consumer awareness of what cellular service can deliver and expectations go up in terms of pricing or service standards or network availability.
1.4
As like the other products Cellular industry has not been left untouched from the Churn (switching over). During the survey this fact comes to the fore. According to the cellular operators, there is a normal seven to eight percent churn in the customers, especially in the pre-paid category. Among the post-paid customers, the Churn is much lower about two-three percent. They say that one significant change that has happened in the last few months, more so since lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are concerned incoming calls has been set free while they are charging reasonably only for the outgoing ones has changed. A tariff re-balancing has definitely taken place. 14
This means that the cellular operators are encouraging their subscribers to not just receive calls, but also make calls increasing the usage of the service. With falling tariffs, cellular operators are convinced that increasing usage is one way to ensure that average revenue per user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about Rs.1,100 while it may vary from operator to operator. The operators are also concentrating on introducing more value added services to the customers. Value-added services have not really taken off. Only the SMS (short messaging service) has really caught on, but operators like Bharti are bringing in services like music messaging and concierge facility for its subscribers.
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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 firms 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. STAGES OF THE CONSUMER BUYING PROCESS
2.1
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next. THE 6 STAGES ARE: 1. Problem Recognition (awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat. Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes. 17
2. Information search-o o
Internal search, memory. External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set. Hungry, want to go out and eat, evoked set is
o o o o
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives. 4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase--May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. After eating an Indian meal, may think that really you wanted a Chinese meal instead.
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2.2
Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk:
Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that 19
does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.
2.3
A consumer, making a purchase decision will be affected by the following three factors: 1. Personal 2. Psychological 3. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market.
Personal Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making? Young people purchase things for different reasons than older people. Highlights the differences between male and female shoppers in the supermarket. Psychological factors Psychological factors include:
Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix. MASLOW hierarchy of needs!!
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o o o o o
Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. Nutrament, a product marketed by Bristol-Myers Squibb originally was targeted at consumers that needed to receive additional energy from their drinks after exercise etc., a fitness drink. It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. The product was not selling well, and was almost terminated. Upon extensive research it was determined that the product did sell well in inner-city convenience stores. It was determined that the consumers for the product were actually drug addicts who couldn't not digest a regular meal. They would purchase Nutrament as a substitute for a meal. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. These consumers were at the Physiological level of the hierarchy. BM-S therefore had to redesign its MM to better meet the needs of this target market. Motives often operate at a subconscious level therefore are difficult to measure.
Perception-What do you see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it. Information inputs are the sensations received through sight, taste, hearing, smell and touch. Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop). Selective Distortion-Changing/twisting current received information, inconsistent with beliefs. 21
Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused? Selective Retention-Remember inputs that support beliefs, forgets those that don't. Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be expected to be aware of all these inputs, and certainly will not retain many. Interpreting information is based on what is already familiar, on knowledge that is stored in the memory. Problems marketing wine from South Africa. Consumers have strong perceptions of the country, and hence its products.
Ability and Knowledge-Need to understand individuals capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc. South Africa...open bottle of wine and pour it!! Also educate american consumers about changes in SA. Need to sell a whole new country. When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior. 22
Attitudes-Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions Individual learns attitudes through experience and interaction with other people. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Honda "You meet the nicest people on a Honda", dispel the unsavory image of a motorbike rider, late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard core. To change this they have a new slogan "Come ride with us". Attitudes and attitude change are influenced by consumers personality and lifestyle. Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty. There is a difference between attitude and intention to buy (ability to buy).
Personality-All the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include:
o o o o o o o o o o
Workaholism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion 23
o o
Aggressiveness Competitiveness.
Traits effect the way people behave. Marketers try to match the store image to the perceived image of their customers. There is a weak association between personality and Buying Behavior, this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.
Lifestyles-Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology.
Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture.
Opinion leaders-Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences-Role...things you should do based on the expectations of you from your position within a group. People have many roles. 24
Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update information. Family is the most basic group a person belongs to. Marketers must understand:
o o o
that many family decisions are made by the family unit consumer behavior starts in the family unit family roles and preferences are the model for children's future family (can reject/alter/etc)
family buying decisions are a mixture of family interactions and individual decision making
family acts an interpreter of social and cultural values for the individual.
The Family life cycle: families go through stages, each stage creates different consumer demands:
o o o o o o
bachelor stage...most newly married, young, no children...me full nest I, youngest child under 6 full nest II, youngest child 6 or over full nest III, older married couples with dependent children empty nest I, older married couples with no children living with them, head in labor force
o o o o
empty nest II, older married couples, no children living at home, head retired solitary survivor, in labor force solitary survivor, retired Modernized life cycle includes divorced and no children.
Because 2 income families are becoming more common, the decision maker within the family unit is changing...also, family has less time for children, and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.
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Reference Groups-Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members. Families, friends, sororities, civic and professional organizations. Any group that has a positive or negative influence on a persons attitude and behavior. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda, tries to disassociate from the "biker" group. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.
Social Class-an open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions. Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes.
o
Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite
Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends
o o o
Working class, 38%, average pay blue collar workers Lower Americans-lower class, 9%, working, not on welfare Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of products that a person buys or uses. Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering. Stores project definite class images. Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture.
Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In American culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing. No...but that is my opinion!!...Tea is a part of the British culture, hot with milk. Different society, different levels of needs, different cultural values. Culture can be divided into subcultures:
o o
Culture effects what people buy, how they buy and when they buy.
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Company Profile
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Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 8 million satisfied customers. Airtel & Visual Identity For a brand to be successful, it must build enduring relationships with its different audiences. Integral to this relationship is the visual image of the brand the consumer carries in his/her mind. The Airtel brand image is created through the consistent application of a carefully developed visual identity, which helps Airtel distinguish itself in a cluttered market. Airtel's visual identity helps create instant brand recall and strengthens the relationships that its audiences have with it. The Airtel visual identity has different elements that work together to create a strong and consistent identity for the brand. The most important of these are:
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The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest. It is a specially drawn world mark. The Airtel Image style It incorporates two solid, red rectangular forms whose counter form creates an open doorway. The Airtel Typographical style The title case lettering with its capital 'A' was deliberately chosen to reinforce the brand's leadership position. The red dot on the letterform 'I' cues Airtel's focus on innovation.. The words 'Express Yourself' are very much part of the brand identity.
The Airtel Colour Palette The lettering is grey so that the pure black of Airtel is visually unharmed. BHARTI TELE-VENTURES Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector
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provider of telecommunications services based on a strong customer base consisting of approximately 11.84 million total customers which constitute, approximately 10.98 million mobile and approximately 857,000 fixed line customers, as of March 31 , 2005
Corporate Structure
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Organisational Structure
Mobile Division Overview Bharti Tele-Ventures vision for its mobile business is To make mobile communications a way of life and be the customers first choice. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Companys
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strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 3.6 million subscribers as of March 31, 2005 to approximately 51.03 million subscribers as of March 31, 2008. Despite this rapid growth, the mobile penetration rate in India, at approximately 6.9% as of March 31, 2008, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2012 it is projected at 60 million by COAI and 52 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time; Growth in pre-paid customer category; Greater economic growth & continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services. Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited. As of March 31, 2008, 100% of India's total mobile subscriber market resided in the Company's twenty three mobile circles, which collectively 100% of India's land mass.
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With the Indian economy showing signs of a continued and robust growth in the coming years, telecom cannot have a different outlook. Recent developments in the Indian telecom sector have brought the world focus on what is being pronounced as the fastest growing telecom market in the world. While crossing the landmark 200 mn subscribers has indeed brought Indian telecom sector in the big league telecom markets, the best ever rate of growth that we see is the added silver lining. No wonder the world focus is on India, which in all modesty is bound to become the second largest telecom sector in the world, after China. The telecom story unfolding in India has enough spice for any aggressive player because the market is just growing and will continue to see more action! Bharti Airtel Ltd announced that it has crossed the 25-million customer base mark. In a statement issued here, the company said, "The 25 million customer base covers mobile, landline as well as broadband customers." This customer base was achieved in just over 10 years, making Bharti Airtel one of the youngest companies in the category, the company claimed. Mr Manoj Kohli, President, Bharti Airtel said, "It is indeed a remarkable achievement not only for us at Airtel, but also for the country as it clearly underlines the coming of age of the Indian telecom sector. Bharti Airtel's exponential growth highlights the undisputed position of India as the telecom hotspot of the world as the economic development of a country is very clearly linked with telecom penetration." Strong focus on external as well as internal customers, strategic business alliances and a scalable business model have together helped Bharti Airtel to achieve leadership position, he added. The achievement comes shortly after Bharti Airtel was ranked among the top 10 best performing companies in the world in the globally renowned Business Week IT 100 list. Strong Signs of growth The set target of reaching around half a billion customers by 2010 and a teledensity of around 45% seems achievable. What gives the industry the confidence of achieving these numbers is the investor-friendly government policies, a consistently strong GDP 35
growth, the exploding young population and the Indian business model of being profitable despite having the lowest tariff in the world. A case in reference can be the Indian market currently re-attracting foreign players, who had abandoned the market for lucrative propositions. The resurgent India story can be attributed to the phenomenal growth in the BPO sector, growth in industrial production, housing sector, agricultural, fresh demands from the burgeoning middle class population, investments in infrastructure, and finally exports that strengthen our 'made in India' tag. On top of flexing muscles in the home turf, Indian operators/players have become more aggressive by spreading their wings abroad by aquiring new licenses and existing companies. Innovative technologies In the wake of the western markets promising sluggish growth in the wireless, broadband and fixed line segments, and investors turning heat on telecom giants being forced to exist saturated markets, any action in India will be worth watching. I see substantial telecom growth happening in the next two to four years with a slight slowdown in investments later. The intensification of growth will be primarily driven by the wireless market especially the 2.5G, 3G and WiMax in that order. With wireless users being around 55% of the current population, there is vast scope for expansion of the 2.5G network to provide the basic voice connectivity to the masses. Every operator intends to seize the opportunity to grab the land and plans major investments in the area. Despite almost a simultaneous deployment of 3G and WiMax in India, 3G is likely to have a scorching growth depending on the availability of the spectrum. The current 2.5G scenario in major cities shall add to the compulsion of operators to deploy 3G networks to take advantage of the capacity and the device savvy Indian urban population. The Indian urban market is as demanding as any other developed nations which has been proved by the success of applications launched by service providers like CRBT and music downloads. 3G brings in a broadband pipe to the wireless device thereby enabling launch of bandwidth intensive services such as video streaming and mobile TV. Value added services such as video on demand, video streaming, etc would be on customers' most favored list when India embraces 3G. With the government focus on broadband penetration and initiatives like e-Governance and m-commerce, 3G and WiMax shall complement each other to drive the broadband penetration from the current dismal levels of 1.8 mn to a target of 20 mn by 2010 which may seem overambitious to somebody who is new to the Indian telecom sector. While 36
markets for these innovative technologies would be large cities and metros, rural India is thriving to get their pie.
Market leader with a market share of all India mobile subscribers at 23.6%. Highest ever-net addition of 63.9 lakh customers in a single quarter. Total Revenues of Rs. 6,964 crore (up 42%Y-o-Y). EBITDA of Rs. 2,963 crore (up 48%Y-o-Y). Cash Profit of Rs. 2,882 crore (up 35% Y-o-Y). Net Income of Rs. 1,722 crore (up 42%Y-o-Y).
Accomplishments
The largest private sector integrated telecommunications services group in India in terms of the number of customers.
Largest
Mobile
footprint
in
India,
covering
23
circles
of
INDIA.
Proven track record of managing growth - both organic as well as by way of acquisitions.
First and largest private telecommunications services company offering fixed-line services in India.
Existing foreign shareholders have acquired direct and indirect equity interests in the Company for a total consideration exceeding US$1 billion.
First off the block to launch fixed-line services in all the four circles of Delhi, Haryana, Karnataka and Tamil Nadu.
Capture
maximum
telecommunications
revenue
potential
with
minimum
Build high quality mobile networks by deploying state-of-the-art technology to offer superior services.
Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles.
Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.
Vision
To be globally admired for telecom services that delight customers.
Mission
We will meet global standards for telecom services that delight customers through: Customer Service Focus Empowered Employees Innovative Services Cost Efficiency
Services Airtel Prepaid Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt and believed, possible. Airtel Postpaid 38
Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way.
Airtel Roaming Airtel's Roaming service allows you to use your mobile phone to make or receive calls from almost anywhere in India and abroad. Airtel Roaming gives you two great options:
Airtel National - Enjoy roaming in India across 42 partners networks and over 750 cities.
Airtel International - Roam across international destinations, in nearly 119 countries including USA, Canada, UK etc. with 284 partner networks.
Long Distance Now experience complete freedom like never before with Airtel! Our National LongDistance facility allows you to make long distance calls in India and
Overseas from your cellular phone. This service is applicable to both Postpaid and Prepaid customers. VALUE ADDED SERVICES Caller Identification (CLIP) Call Identification gives you the power to know the phone number of the calling party even before you answer the call, thus giving you the choice to either reject or take the call. It provides the added advantage of saving the incoming number directly in the 39
Handset Phone Book. So that the next time you want to call the same person, you don't need to retype his number, simply use your phone book. Dial-a-service With Airtel's information services you can get upto-the-minute cricket scores, order flowers as well as send couriers or check your daily horoscope. FAX & DATA Airtel brings you Fax and Data Service where you can take your office wherever you go. You can send and receive data/fax documents, access the Internet, email accounts as well as corporate databases whenever you are on the move. GPRS / MOBILE OFFICE Mobile Office provides you with access to e-mail and Internet any time and anywhere, even while on the move. It is an indispensable asset for traveling executives, as it enables you to be in touch when at airports, hotels etc. So whether you're in Mumbai or not, you'll be never be short of Internet access. Now you can access official mail, refer to sites for information and do everything that you would, on the Internet. This new-age product is made possible through Airtel's GPRS (General Packet Radio Services) technology.
GPRS Mobile Office service has the following features: a) Access the Internet anytime, anywhere (across all Airtel circles in India) b) No airtime charges c) Cheaper than connecting through land line e) A minimal monthly subscription fee VOICE MAIL SERVICES Voice Mail allows you to receive messages even when your handset is switched off or when you are outside coverage area. You can then retrieve these messages at your own convenience. 40
CALL CONFERENCING With Airtel call conferencing, teleconference with 6 people simultaneously. You can also have the liberty of setting up a conference even when the other five individuals are using a landline.
Airtel Presents... HELLO TUNES With Hello Tunes when you dial an Airtel Subscribers mobile,
you will hear the song that he/she has selected for you!! FEATURES Song of the Day' at the top of the menu to make first time selection easy Various language options : Select from English to Kannada (over 5 different languages) Content represents all major languages Everyone-tune: one song for all callers Special tune: personalized song for specified caller
Easy Billing Now enjoy the luxury of viewing details of your last 3 billing cycles and the convenience of paying your Airtel bill online! Experience complete freedom with Airtel! Subscription Services With Airtel's Subscription Services, you can subscribe for cool alerts at the click of a button! What's better is that you can receive updates automatically on your Airtel phone without requesting everyday. Daily News Alerts 41
With Airtel News Alerts, be in touch with the latest happenings around the world, all the time. Get 2 news bulletins sent to your Airtel phone, courtesy AajTak, the 24-hour news channel from India Today Group. Daily Astrology Alerts Your future lies in your Airtel phone. Literally! Get daily forecasts of each sun sign from renowned astrologer Ma Prem Usha. Daily Joke Alerts Crack up with laughter with Airtel's daily joke alert. Get the funniest jokes that you can forward to your friends to brighten up their day too.
Daily Business Alerts For the latest buzz on the business scenario, now you never have to look very much further than the palm of your hand. Airtel brings you the daily business news and stock alerts, courtesy Business Today, the leading publication on business news & stories.
Daily Filmi Gossip Want the latest khabar on Lara, Salman, Cameron and Toby? Tune into Airtel's Filmi Gossip, with the latest buzz about your favourite Hollywood and Bollywood stars.
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9. 2007 was declared as "Year of Broadband" in India and BSNL announced plans for providing 5 million broadband connectivity by the end of 2007. BSNL upgraded Dataone connections for
43
a speed of up to 2 Mbit/s without any extra cost. This 2 Mbit/s broadband service was provided by BSNL at a cost of just US$ 11.7 per month (as of 21 July 2008 and at a limit of 2.5GB monthly limit with 0200-0800 hrs as no charge period). Further, BSNL is rolling out new broadband services such as triple play.[citation needed] BSNL planned to increase its customer base to 108 million customers by 2010. With the frantic activity in the communication sector in India, the target appears achievable. BSNL is a pioneer of rural telephony in India. BSNL has recently bagged 80% of US$ 580 m (INR 25 billion) Rural Telephony project of Government of India.[14] 10. On 20 March 2009 BSNL advertised the launch of BlackBerry services across its Telecom circles in India. The corporation has also launched 3G services in select cities across the country. Presently, BSNL and MTNL are the only players to provide 3G services, as the Government of India has completed auction of 3G services for private players. BSNL shall get 3G bandwidth at lowest bidder prices of Rs 185 billion, which includes Rs 101.86 billion for 3G and Rs 83.13 billion for BWA. 11. As of December 2011, many other private operators have started rolling out their 3rd Generation (aka 3G) services alongside and are enjoying some success in their campaigns to get market share. While BSNL still maintains its connectivity standard and expands to many more areas including rural areas with their 3G services. Also the network infrastructure has been upgraded from to provide 3.6 Mbit/s to 7.2 MBits/sec. It is enjoying a slow but somewhat steady success in gaining market share in this regard. 12. The introduction of MNP(Mobile Number Portability) which is an service that lets the consumer change wireless service providers while retaining their actual mobile number, BSNL has seen many customers opting for this service to move away from the services to other operators. Despite this as the Indian Wireless market grows BSNL still has a loyal base of subscribers and many more subscribers being added to it every day. This provides customer services for 95 million as of June 2011.
13. The values are stated simply. To be fair and transparent in what they do and how they do it. To provide the quality services with more customer friendly practices. To make ones communications experience simple, pleasurab le and fun. Where he doesn't simply get technology - but technology that is relevant. Where solutions are not just promised in the future - but delivered in the present.
CORE VALUES
We shall uphold the dignity of the individual We shall honor all commitments We shall be committed to Quality, Innovation and Growth in every endeavor We shall be responsible corporate citizens
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BSNL Logo
Services
BSNL provides almost every telecom service in India. Following are the main telecom services provided by BSNL:
Universal Telecom Services : Fixed wireline services and landline in local loop (WLL) using CDMA Technology called bfone and Tarangrespectively. As of 30 June 2010, BSNL had 75% marketshare of fixed lines. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under the brand name Cellone & Excel (BSNL Mobile). As of 30 June 2010 BSNL has 13.50% share of mobile telephony in the country.[7] WLL-CDMA Telephone Services: BSNL's WLL (Wireless in Local Loop)service is a service giving both fixed line telephony & Mobile telephony. Internet: BSNL provides Internet access services through dial-up connection (as Sancharnet through 2009[8]) as Prepaid, NetOne[9] as Postpaid and ADSL broadband as BSNL Broadband[10] BSNL held 55.76% of the market share with reported subscriber base of 9.19 million Internet subscribers with 7.79% of growth at the end of March 2010.[citation needed] Top 12 Dial-up Service providers, based on the subscriber base, It Also Provides Online Games via its Games on Demand (GOD) Intelligent Network (IN): BSNL offers value-added services, such as Free Phone Service (FPH), India Telephone Card (Prepaid card), Account Card Calling (ACC), Virtual Private Network (VPN), Tele-voting, Premium Rae Service (PRM), Universal Access Number (UAN). 3G:BSNL offers the '3G' or the'3rd Generation' services which includes facilities like video calling, mobile broadband, live TV, 3G Video portal, streaming services like online full length movies and video on demand etc.
45
IPTV:BSNL also offers the 'Internet Protocol Television' facility which enables watch television through internet. FTTH:Fibre To The Home facility that offers a higher bandwidth for data transfer. This idea was proposed on post-December 2009 Helpdesk: BSNL's Helpdesk (Helpdesk) provide help desk support to their customers for their services. VVoIP: BSNL, along with Sai Infosystem - an Information and Communication Technologies (ICTs) provider - has launched Voice and Video Over Internet Protocol (VVoIP). This will allow to make audio as well as video calls to any landline, mobile, or IP phone anywhere in the world, provided that the requisite video phone equipment is available at both ends.[11] WiMax: BSNL has introduced India's first 4th Generation High-Speed Wireless Broadband Access Technology with the minimum speed of 256kbit/s. The focus of this service is mainly rural customer where the wired broadband facility is not available
BSNL Broadband
BSNL Broadband is an Internet access service from state-owned Bharat Sanchar Nigam Limited (BSNL) available in India since 14 January 2005. Until 30 September 2007 it was known as Data One.[1]
BSNL is commissioning[when?] a multi-gigabit, multi-protocol, IP infrastructure through National Internet Backbone-II (NIB-II), that will provide services through the same backbone and broadband access network. The broadband service will be available on digital subscriber line technology (on the same wire that is used for plain old telephone service), spanning 198 cities. NIB-II would have put India at par with more advanced nations. The services that would be supported include always-on broadband access to the Internet for residential and business customers, content-based services, video multicasting, video-on-demand and interactive gaming, audio and video conferencing, IP telephony, distance learning, messaging, multisite MPLS VPNs with Quality of Service (QoS) guarantees. The subscribers would have been able to access the above services through Subscriber Service Selection System (SSSS) portal. The service will be given through Multi Protocol Label Switching (MPLS) based IP infrastructure. Layer 1 of the network will consist of a high-speed backbone composed of 24 core routers connected with high-speed 2.0 Gbit/s(STM-16) links.
46
BSNL Mobile
BSNL Mobile is a mobile phone service provider provided by the Indian public enterprise BSNL. It provides both pre-paid and post-paid mobile services as well as many value added services. Bsnl Mobile has pan-India presence with presence in all the 21 telecommunication cellular circles in India. Bsnl Mobile provides all of India with roaming access, including Delhi and Mumbai, and International roaming access to more than 300 networks across the world. Many private Telecom Operators have entered in Indian market and acquired many customers and have given stiff competition to Cellone in recent years. The major private players are Bharti Airtel, Reliance Communications, Tata Communications, Aircel and many more. CellOne started their GPRS/EDGE service on 2005 and has coverage major cities and towns and more places are being covered. BSNL has now introduced 3G services: BSNL has started its 3G services before the allocation of spectrum to private operators in India. Other private players are expected to roll out their 3G services when they are allocated the spectrum for respective circles in 2nd half of 2010. CellOne was christened BSNL Mobile in 2007.
MTNL Directoy
With this facility you can get to know the address and telephone no. of MTNL users.you will be charged Rs.2 per outgoing message.
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Now you can change the ringtone on your BSNL phone according to your moods. You can download logos as well. With the BSNL and Yahoo! tieup you have hundreds of tunes and logos to choose from.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS sent). For every logo/picture message downloaded, you will charged Rs. 3.00 (including the cost of SMS sent).
Dial-in Services
BSNL brings you more conveniences at your fingertips. Use our Dial-in-Services to check cricket scores, horoscope, up-to-the minute news and other relevant information on services that touch your everyday life.
All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse). Here's a shortlist of services you can access
There are occasions when you may not want to take a call, or your BSNL phone maybe busy or simply unreachable. By paying a nominal monthly access fee, you can now retrieve your messages at your convenience. Even if you are roaming, you can retrieve your messages from your voice mailbox through a fixed line, anywhere on earth.
You can access this service by just paying Rs. 49 per month, if you are a postpaid customer. This service is absolutely free if you are a BSNL Prepaid customer.
Itemized Billing
As a BSNL Postpaid customer, you can choose to receive an itemized bill at the end of each month. This is a detailed billing statement which helps you keep track of all your calls. Your itemized bill includes:
49
al charge
All you need is a handset compatible data card (PC Card) or a GSM Software, and a data chord cable with a PC to set up a mobile office.
You can also opt for either BSNL Fax or BSNL Data services independently.
Your BSNL fax number can help you differentiate between incoming voice calls and fax transmissions. You can also send and receive faxes anywhere on earth with your BSNL phone By opting for the BSNL Data Services you can access e-mail, databases and the Internet. All on your single incoming data number. Charges to activate the BSNL Fax and Data service, you just need to pay a one-time activation fee of Rs 500. To access the Fax service, the fee is Rs. 250. The usage charges are nominal at Re 1 per minute.
50
There may be occasions when you need to conference with up to six people at a time or talk to just two. Or you are speaking to someone and want to forward an incoming call to another phone. With your BSNL phone, you can do this and more. BSNLhelps you manage your calls effortlessly so that you stay in control of your conversations, always.
Voice Response
Get your BSNL phone to respond directly to your commands. Custom designed to recognize Indian voices and accents, the Voice Response service makes your life more convenient. You can get the latest updates on news, stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1 minute pulse).
Voice Messaging
Voice Messaging has become even more affordable. You can now send voice messages to cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min* (as against Rs.4.95 per min earlier).
Voice messages within India across select networks will cost you Rs. .95 per min only. Also, recipients of the cellular Voice Messaging service have the option of replying back to the messages, which get returned back as return Voice Mail messages, facilitating twoway (though not simultaneous) voice communication.
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Cell Banking
BSNL now puts the bank in your pocket with Cell Banking. Access your bank account and transact directly on your BSNL phone by sending text messages. The first of its kind in India, this service enables you to conduct your banking without having You can to do visit Cell the Banking bank from or over 90 making countries a call. worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Roaming
Now you can always stay connected, no matter where you are. With the BSNL Roaming facility, you can use your BSNL phone in over 100 countries worldwide and over 1000 cities, towns and highways across India. BSNL Roaming makes life easy and convenient for you.
One number across the globe Your BSNL phone number and PIN number remains the same whether you are in Delhi, Chandigarh, London, Paris or anywhere else in the world.
National and International Roaming on BSNL Prepaid Roaming on BSNL Prepaid gives you the most extensive coverage in over 1000 cities, towns and highways across India, and in over 100 countries around the world. Enjoy Roaming on your BSNL Prepaid card and stay in touch wherever you go.
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WAP
With WAP, you can have the Internet directly in your pocket. So if you are looking for quick and easy delivery of information and services, your BSNL phone can show it all. Use it to check out news, finance, shopping, entertainment, travel, entertainment and city service information etc. To access this service all you need is a WAP enabled handset and WAP services activated on your BSNL phone. This service comes to you at a nominal charge of Re. 1 per minute (1 min pulse).
Group Messaging
Party invitations, movie outings, festive greetings... whatever be the occasion, you can send your message to all your friends at one go!
With Group Messaging from BSNL, you can thus save yourself the bother of painstakingly sending your message to one person at a time whether you are on BSNL Prepaid or Postpaid.
BSNL4help
BSNL4help now lets you take advantage of a lot more services than before. You can connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are stranded in the middle of the road, or if you you need immediate medical attention or if
53
you are looking for a police station close by, BSNL4help gives you instant access to your nearest source of help, anywhere in Delhi or the NCR. All the help services are [email protected]/min. while for police and fire help only local airtime charge is applicable.
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Objective
The research is a cross sectional analysis between two cellular service of Delhi namely AIRTEL and BSNL. This research is done to find the following objectives: 1) What is the consumer satisfaction level by the services offered from the service provider (Airtel and BSNL) 2) What are the expectations of the consumers from the service providers. (Airtel and BSNL)
56
Scope
The given project is to analyze the overall satisfaction of subscribers with their mobile service provider. The scope for the research is not very big. The area of study of the researcher was Delhi region. Marketing is innovative field. Here nothing can be assumed. Whatever ideas we generate, we have to test them and they must be supported by proved results. For this, marketing research is very important. Comparative study is one such aspect that is very difficult to measure by guesswork. Anything you say about it, it must be based on reliable research. I am going to do a ASSESSMENT AND
To justify the customer satisfaction level by services from service providers I have undertaken small survey. This survey throws light on many things like what are the various services with which they are satisfied and dissatisfied, what are the expectations of customers from service provider. To facilitate our purpose, I have formed a questionnaire and asked 200 respondents (100 Airtel and 100 BSNL users) to fill it.
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Research Methodology
58
Research Methodology
5.1.
INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.
5.2.
RESEARCH DESIGN
The researchers propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which the researchers feel remain unanswered or liable to change , this shall be further taken up in the next stage of exploratory research. This stage shall help the researchers to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. These set of questions are then proposed to be studied under a descriptive research setting finally leading to formation of hypotheses and testing under causal research.A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. The survey research was used in this project, because consumers feedback was necessary for obtaining the data.
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the
course of research. Consists of original information that comes from people and includes information gathered from surveys, independent observations and test results.. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation. 59
Primary data was collected by the questionnaire based market survey. In this survey 100 AIRTEL and 100 BSNL mobile users were surveyed.
Secondary data was obtained from journals, magazines, newspapers, books and of course the Internet. Information that already exists somewhere, having been collected for another purpose. Sources include magazines, various web sites, and subscription services. Data that have already been collected and published for another research project (other than the one at hand). There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organisation for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company.
Mode of Survey
The mode of survey was personal interview with the respondents during the filling up of the questionnaires.
Sample Size
A sample size of 200 respondents is used for the study.100 AIRTEL and 100 BSNL customers were contacted and interviewed.
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Sample Unit
This study was basically an opinion survey of the residents of Delhi who are cellphone users regarding their views on the cellular service providers.
Place of Study
Delhi region.
5.5.
LIMITATIONS: Observations of a particular case cannot be universally applied to all instances Universally.
Data made available by interviews and existing documents may be biased. For the sake of convenience the sample size taken is very small so as to be a true Representative of the entire population.
Many factors like predetermined company strategy, hierarchy etc. make a companys framework pretty different from others thus, there are many assumptions inherent in the nature of the case itself.
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62
6.
A sample size of 200 respondents (100 Air Tel and 100 BSNL Users) was used for obtaining the information for this study.
Age Upto 25 Yrs. 26-35 36-45 46 and above 66 82 40 12 33% 41% 20% 6%
20%
6%
33%
41%
Out of the total respondents 66(33%) are of the age of below 25 years Out of the total respondents 82(41%) are of the age of below 2 6-35 years Out of the total respondents 40(20%) are of the age of below 36-45 years Out of the total respondents 12(6%) are of the age of below 46 & above years
63
FEMALE
64
32%
The breakup of the respondents on the basis of Sex is Males 136(68 %) and Females 64( 32 %).
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Education Level
56 24 116 04
58%
12%
Out of the total respondents 56(28%) are have passed high school, 24(12%) are under graduate, 116(58%) are graduates and above qualified and 04(2%) belong to other categories
65
Occupation Student Service Man Service Man Businessman Others 60 58 42 22 18 30% 29% 21% 11% 9%
11%
9%
21%
Out of the total respondents 60(30%) are students Out of the total respondents 58(29%) are Service Man Out of the total respondents 42(21%) are Professionals Out of the total respondents 22(11%) are businessman Out of the total respondents 18(9%) belong to other catogories
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Overall the results show: Prepaid: 62% subscribers Postpaid: 38% subscribers
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70% of Airtel users prefer the prepaid segment while 30% prefer the postpaid segment.
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46% 54%
54%of BSNL users prefer the prepaid segment while46%prefer the postpaid segment.The results clearly show that there is a larger subscriber base in the pre-paid segment, which is in consonance with the industry figures.
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This shows that majority of subscribers of Airtel and BSNL subscribers spends between Rs.500-1000 every month.
70
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Airtel Bsnl
83% 76%
20% 11% 6% 3% 0% 1%
2-3 Days 6% 3%
Airtel
Bsnl
This shows that 83% of Airtel and 76% of BSNL subscribers got their sim activated the same day of purchase while others had to wait for next day and some for 3 days also. This is really a trouble for subscribers waiting for activation.
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13%
This show that only 61% of Airtel users and 53% of BSNL users are very satisfied with tariff charges.15% of Airtel and 18% of BSNL users are dissatisfied with tariff which could lead them to shift to other cell operator providing lower tariff.
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80% 70% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone
73% 67%
15%
18% 10% 8% 2% 7%
Dissatisfied 2% 7%
73% of Air Tel and 67% of BSNL users are very satisfied with network. Only 2% of Airtel users are dissatisfied which show that their network is best. 7% of BSNL users reported dissatisfaction because of poor signals or no signals in basement.
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89% 90% 80% 70% 60% 50% 40% 30% 20% 8% 10% 10% 0% Airtel Vodafone Very Satisfied 89% 81% Satisfied 8% 10% 3% 6% 0% 3% 81%
89% of Airtel and 81% of BSNL users shown great satisfaction from SMS service.3% of BSNL users shown dissatisfaction because of late delivery of messages and high charge.
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70% 62% 60% 50% 40% 30% 20% 10% 0% Airtel Vodafone 18% 20% 13% 10% 9% 10% 58%
62% of Airtel and 58% of BSNL users are very satisfied with roaming facility. 10% of Airtel and 13% BSNL users are dissatisfied with roaming because of high charges and poor signal strength while on roaming.
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53% 48%
Very Satisfied
53% 48%
Satisfied Satisfied to an Extent Dissatisfied 21% 11% 15% 24% 14% 14%
Only 53% of Airtel and 48% of BSNL users are very satisfied from VAS. 15% of Air Tel and 14% BSNL users are dissatisfied from VAS because they are not using these due to high charges for these facilities.
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40%
10%
8% 5%
0% Airtel Vodafone
Dissatisfied 8% 5%
48% of Airtel and 52% of BSNL users are very satisfied with this service. 8% of Airtel and 5% of BSNL users are dissatisfied from service because of high charge.
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35% 30% 30% 25% 20% 15% 10% 5% 0% Airtel Vodafone 23% 24% 25% 21% 18% 31% 28%
only 23% of Airtel and 30% of BSNL users are very satisfied with billing. 28 % of Airtel and 18% BSNL users are dissatisfied with billing because of inflated bills and delay in resolving. In this case BSNL is better in comparison to Airtel with less billing problems.
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80% 70% 60% 50% 42% 40% 30% 21% 20% 10% 0% Airtel
Vodafone
68%
19%
21%
18%
5% Dissatisfied 5% 18%
68% of Airtel and 42% of BSNL users are very satisfied with customer care. In case of BSNL 18% of users are dissatisfied with customer care while in Airtel it is only 5% which shows that Airtel is winner in terms of providing Customer Care services. Reason for this is waiting time to talk to customer care and resolving time taken is very high in BSNL.
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16% of Airtel users are planning to shift to other cell operator because they find call charges expensive. While 23% of BSNL users are planning to shift because of poor customer care and high call charges. This shows that users have much more loyalty towards Airtel in comparison bsnl.
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84% 90% 80% 70% 60% 50% 40% 23% 30% 20% 10% 0% Yes No Airtel 84% 16%
Vodafone
77%
16%
77% 23%
84% of Airtel and 77% of BSNL users are ready to recommend others. This shows high satisfaction level in Airtel users as compared bsnl.
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CONCLUSION
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7.
Conclusion
With the steep fall in the cost of providing cellular services, and increasing deregulation and competition, developing countries are witnessing rapid growth in cellular subscriber base. Indian cellular industry has been witnessing a Compounded Annual Growth Rate of about 105.2%. It is a $5 billion industry today, and the cellular subscriber base in the country has increased to 6.4 million from a mere 28,550 in 2004. According to reports, Indian mobile subscriber base is expected to grow to 19.48 million in the current year, i.e.; 2008. However, the penetration rate of cellular services is very poor in developing countries. In India, the cellular density is 0.56 per 100 population compared to 77.84 in Finland.
Economic conditions, market structure, policies regarding tariffs and interconnect agreements, and customer characteristics are some of the significant forces affecting the growth of cellular services. Since it takes about 3-4 years for cellular operators to attain financial payback on their projects, estimates of market size can be useful for network and investment planning. Qualitative narratives and descriptive
statistics of the cellular sector for many countries are available from a variety of industry sources. However, rigorous empirically based studies of cellular market growth are much more limited in number.
Moreover, these studies do not provide much insight into the mechanics of growth in cellular markets. Such insights can inform policymakers about the process by which growth occurs and help develop policies that can improve cellular penetration in developing countries. They are also useful to service providers in planning their network rollouts and services in the face of market competition.
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With the introduction of new providers, the incumbents face erosion of their subscriber base. They can take preemptive measures to improve the quality of their services offerings, reduce prices and increase the breadth of their service offerings. The new operators have to battle against the advantages of the incumbents such as existing subscriber base, economies of network operations, network infrastructure and their financial strength.
There are other idiosyncrasies that may also need to be considered. In case of India for instance, some of the entities that have received licenses to operate as the fourth operator in metro areas, have prior cellular network provisioning experience in selected parts of the country. They can reduce the roaming charges when the subscriber roams in the operator's other areas. Further, the government owned third operator, was erstwhile monopoly operator in basic and domestic long distance services. This operator has extensive long distance network and a sound financial base that will enable them to cross-subsidize the cellular service and reduce prices.
o This study shows that most of the population prefer the pre-paid segment. o 62% of Airtel and 58% of BSNL users are very satisfied with roaming facility. o 68% of Airtel and 42% of BSNL users are very satisfied with customer care. In case of BSNL 18% of users are dissatisfied with customer care while in Airtel it is only 5%. o 73% of AirTel and 67% of BSNL users are very satisfied with network. o 89% of Airtel and 81% of BSNL users shown great satisfaction from SMS service.
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RECOMMENDATIONS
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8.
Recommendations
Sim card activation should not take more than 24 hrs.
Rent should be brought down to minimum Rs.100 to attract students who forms majority of mobile phone users.
Calling line(CLIP) charges should be abolished as this is the necessity of mobile users to know the number of calling party.
Satisfaction levels of BSNL customers are comparatively lower than Airtel customers. They should introduce reward-based schemes for its customers.
Network signal should reach underground basement with voice clarity. BSNL need to focus on it.
Local SMS charges should brought down to less than 50 paisa as compared to Rs.1.50. SMS is the need of students and easy way to stay in touch and have fun.
Airtel must provide GPRS facility on prepaid as BSNL does. This service is now in very much demand as accessing e-mail,
MMS is now in demand having sound and video messages. This should be provided at low cost. 86
Billing complaints should be resolved within 24 hrs. Airtel should look into this matter as they have more billing related issues.
Call pulse rate should be reduced to 15 seconds as most call end up less than this time. This will save money of customers.
Free unlimited call to 1 or 2 nos. on same network without any charges.(A tribute to LOVEBIRDS)
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BIBLIOGRAPHY
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9.
Bibliography
Boyd, Westfall, Stasch: Marketing Research. ( Seventh Edition) Research Methodology: C.R.Kothari. (Second Edition) Philip Kotler: Marketing Management.( Eleventh Edition) Voicendata magazine. ( Edition: December 2004) Company brochure of Airtel and BSNL. www.airtelworld.com www.BSNLworld.com www.google.com www.voicendata.com
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ANNEXURE
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Questionnaire
1. 2.
NAME: AGE:
_________________________
(a ) upto 25 Yrs. (c ) 36-45 Yrs. 3. SEX: (a) Male 4. EDUCATION LEVEL: (a) High School (c) Graduate & above 5. OCCUPATION: (a ) Student (c) Professional (e ) Other ____________
(b) Female
6.
Which cell phone service you are using: (a ) AIR TEL (b ) BSNL
7.
(a) Prepaid 8. What is your spending per month: (a) Upto 500 (c) Rs.1001-2000 9.
(b) Postpaid
How much time taken by your service provider to activate sim : (a ) Same day (c) 2-3 days (b) Next day (d ) More than 3 days
10.
To what extent you are satisfied with Current Tariff of your cell operator: (a) Very Satisfied (c) Satisfied to an extent (b) Satisfied (d) Dissatisfied
11.
To what extent you are satisfied with Network Quality of your cell operator: (a ) Very Satisfied (c ) Satisfied to an extent ( b) Satisfied (d) Dissatisfied
12.
To what extent you are satisfied with SMS Facility of your cell operator: (a ) Very Satisfied (c ) Satisfied to an extent ( b) Satisfied (d) Dissatisfied
13.
To what extent you are satisfied with Roaming Facility of your cell operator: ( a) Very Satisfied ( c) Satisfied to an extent (b) Satisfied (d) Dissatisfied
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14.
To what extent you are satisfied with Voice Mail Service of your cell operator: (a ) Very Satisfied (c ) Satisfied to an extent (b ) Satisfied (d ) Dissatisfied
15.
To what extent you are satisfied with Mobile Banking of your cell operator: (a ) Very Satisfied (c ) Satisfied to an extent (b ) Satisfied (d ) Dissatisfied
16.
To what extent you are satisfied with Value Added Services like GPRS, MMS, E-MAIL, Chatting, Fax etc. of your cell operator: (a ) Very Satisfied (c ) Satisfied to an extent (b ) Satisfied (d ) Dissatisfied
17.
To what extent you are satisfied with Billing by your cell operator: (a ) Very Satisfied (c) Satisfied to an extent (b ) Satisfied ( d) Dissatisfied
18.
To what extent you are satisfied with Customer Care Service of cell operator: (a ) Very Satisfied (c ) Satisfied to an extent (b ) Satisfied (d ) Dissatisfied
19.
Are you planning to Shift to other cell operator in near future: (a ) Yes (b ) No
20.
21.
CUSTOMERS DATABASE NAME Dheeraj Miglani Anuj Sood Anuj Gupta Mofij Ahmed Miss Deepa Aman Singh N Durga Rao Pooja Tanton Mrs Bharti Mrs Sheila Mrs Jyoti Shah Kiran Kumar Charanjit Singh Arpit Sanjeev Mishra Kartik Sharma Prince Ahuja Manoj Kumar Bhola Devesh Arora Vinay Prakash Prabhat Kumar Shweta Bakshi Deepak Vij Barnali Patgiri Pradeep Sambyal Deeraj Kumar Sharma Gyanendra Dev KJS Kochar Sanjiv Khurana Pooja Thapar Anita Dhillon Jyoti Lahiri Kapil Dev Sharma Sudeep Bhatt Naveet Lomish Saya Chopra Sonaal Pandit Ranjiv kapur 94 GENDER M M M M F M M F F F F F M M M M M M M M M F M F M M M M M F F F M M M F M M AGE 1 2 3 3 2 3 1 3 1 1 1 1 2 2 3 2 1 1 1 2 2 3 1 3 3 4 2 2 2 1 1 1 2 2 2 2 3 3
Vishal Dewan Raj Malhotra Vinay Kapoor Reena Sethi Sunil K Gambhir Lukose K Joseph Nidhi Arora Harish Taneja Sheetal Shweta Paul B N Jha Mayank Sharma Sachin Deshmukh Rahul sethi Abhishek Prashad Shaji Kuruvilla Rajesh Sadhu Moitree Sinha Shameen Rocha Terry O Conner Aruna Khan Neela Bhowmik Sudha Choudhry Lynnette Nath Ashish Kumar Bhawna Makhnotra Sunil Sharma Rajit Mehta I.S. Sandhu Sameema Bano Rajesh Sud Vijay Gupta Pramod Radhakrishnan Vipin jain Baishali Ghosh I B Sahay Praneet Singh Ritesh Nitin Saini Jyoti shahi Rajesh Sadhu Moitree Sinha 95
M M M F M M F M F F F M M M M M M M F F F F F F M F M M M F M M M M M M M M M M M M
4 2 1 1 1 1 1 2 2 2 3 3 2 2 2 2 4 2 3 2 2 2 1 2 1 1 2 3 4 2 3 2 2 3 2 2 3 2 1 1 1 2
Shameen Rocha Terry O Conner Aruna Khan Neela Bhowmik Sudha Choudhry Lynnette Nath Bhawna Makhnotra Sunil Sharma Rajit Mehta Mayank Sharma Sachin Deshmukh Rahul sethi Abhishek Prashad Shaji Kuruvilla Moitree Sinha Alok Nath Eunice Stephen Sabreena R Grimm Ashish Kumar Bhawna Makhnotra Sunil Sharma Rajit Mehta I.S. Sandhu PS Anantha Narayanan Rajesh Sud Vijay Gupta Pramod Radhakrishnan Vipin jain Baishali Ghosh Payal Praneet Singh Ritesh Nidhi Arora Harish Taneja Sheetal B N Jha RASHMI RAJSHREE Dheeraj Miglani Anuj Sood Anuj Gupta Mofij Ahmed 96
F F F F F F M M M M M M M M M F F F M F M M M M M M M M M F M M F M F F F F M M M M
2 2 3 4 2 3 2 1 2 3 2 2 1 1 1 2 1 2 1 3 3 2 4 2 2 2 2 1 2 1 1 1 1 4 2 3 3 1 1 2 3 3
Rakesh Aman Singh N Durga Rao saurabh pandey Mrs Bharti Mrs Sheila Mrs Jyoti Shah Kiran Kumar Charanjit Singh Arpit Sanjeev Mishra Kartik Sharma Prince Ahuja Manoj Kumar Bhola Devesh Arora Vinay Prakash Prabhat Kumar Shweta Bakshi Deepak Vij Barnali Patgiri Pradeep Sambyal Deeraj Kumar Sharma Gyanendra Dev KJS Kochar Sanjiv Khurana Pooja Thapar Anita Dhillon Jyoti Lahiri Kapil Dev Sharma Sudeep Bhatt Naveet Lomish Saya Chopra Sonaal Pandit Ranjiv kapur Vishal Dewan Raj Malhotra Vinay Kapoor Reena Sethi Sunil K Gambhir Lukose K Joseph Nidhi Arora Harish Taneja 97
M M M M F F F F M M M M M M M M M F M F M M M M M F F F M M M M M M M M M F M M F M
2 3 1 3 1 1 1 1 2 2 3 2 1 1 1 2 2 3 1 3 3 4 2 2 2 1 1 1 1 2 2 2 3 3 1 2 1 1 1 1 1 2
Sheetal Shweta Paul B N Jha Mayank Sharma Sachin Deshmukh Rahul sethi Abhishek Prashad Shaji Kuruvilla Rajesh Sadhu Moitree Sinha Shameen Rocha Terry O Conner Aruna Khan Neela Bhowmik Sudha Choudhry Lynnette Nath Ashish Kumar Bhawna Makhnotra Sunil Sharma Rajit Mehta I.S. Sandhu PS Anantha Narayanan Rajesh Sud Vijay Gupta Pramod Radhakrishnan Vipin jain Baishali Ghosh I B Sahay Praneet Singh Ritesh Nitin Saini Jyoti shahi Rajesh Sadhu Moitree Sinha Khushi Sharma Suruch Jain Sweta Rastogi M Male F- Female AGE: 1- Upto 25 Years 3- 36-45 Years
2 2 3 3 1 2 2 2 4 2 3 2 4 2 1 2 1 1 2 3 4 2 3 2 2 3 4 2 3 2 1 1 1 2 1 1 1
98