A

Project Report
On
“Comparative analysis of MARKETING STRATEGIES OF
Vodafone & AIRTEL”

Submitted for the partial fulfillment of the requirement

For the award of degree of

“Master OF BUSINESS ADMINISTRATION ”

SUBMITTED BY:-
Umesh Garg
MBA 1V Sem.
Roll No. 08/MBA042

SUBMITTED TO
Mr. Narender Tanwar
Head of Management department

Bhawani Shankar anangpuria institute of technology &

management
Alampur, Faridabad-121004
 ACKNOWLEDGEMENT
We Livjit kaur,Ravinder kaur,Akwinder kaur and sandeep kaur sincerely thankful to all
those people who have been giving me any
kind of assistance in the making of this project report.

I express my gratitude to Mrs. Shilpa Bedi, who has through her vast experience and knowledge has

been able to guide me, both ably and successfully towards the completion of the project. I express my

gratitude to S.Sukjinder singh Engineering &Technology & college, Gurdaspur

I would hereby, make most of the opportunity by expressing my sincerest thanks to all my

faculties whose teachings gave me conceptual understanding and clarity of

comprehension, which ultimately made my job more easy. Credit also goes to all my

friends whose encouragement kept me in good stead. Their continuous support has given

me the strength and confidence to complete the project without any difficulty.

Last of all but not the least I would like to acknowledge my gratitude to the
respondents without whom this survey would have been incomplete.
I am also thankful to authority of Airtel & Vodafone for providing me the information.
(Livjit kaur)
 CONTENT

1. Acknowledgement

2. Contents

3. Declaration

4. Synopsis

5. Introduction

6. Need of the study

7. Objectives of the study

8. Introduction of the topic

• Telecom sector in India
•Airtel
• Vodafone
• Background
• Company profile of Airtel
• The magic
• Comparison between marketing strategy of Bharti Airtel and Vodafone
9. Research Methodology
• Type of research methodology
• Data collection method
• Method of collection

10. Data Analysis and Interpretation

11. Swot analysis

12. Suggestion & Conclusion

13. Recommendations

14. Bibliography
15. Questionnaire
 Declaration
I, Umesh Garg being a student of MBA of Bhawani Shankar Anangpuria Institute of

Technology & Management. (B.S.A.I.T.M.), Faridabad. Hereby declares that the project

report under title“Comparative Analysis of Marketing Strategies of Vodafone & Airtel.” Is

my own work it is the analysis of the big scale sector of communication. This project

involves the big scale services involved in telecommunication sector provided by Airtel

and Vodafone to its customers. The survey was conducted so as to analyze the big scale

sector prevailing in the current industry and the improvement that can be made upon it.

All care has been taken to keep this report error free and I sincerely regret for any unintended

discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be

brought to my attention.

Thank You
Umesh Garg
 NEED OF THE STUDY

1. To identify the difference between market performance of Airtel industry and

Vodafone.

2. To study the market of Airtel Industry and Vodafone on big scale

Telecommunication sector.

3. To compare various parameters of marketing strategies, manufacturing

process, technology adopted production policy, advertising, collaboration, export
scenario, future prospect for the two companies and government policies.

4. To study the level of customer satisfaction in Airtel & Vodafone.

5. To study customer buying behavior and factors which influence the purchase decision
process.

6. To study consumer preferences.

7. To study the consumer trend in telecommunication sector.

8. To study competitive marketing strategies adopted by Airtel and Vodafone

 OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very essential for an

organization to know about the view of consumers and their competitive products. This survey

research may be also aimed as to estimate potential buyer for the product. The objective of the study is

as under:-

1. To identify the difference between market performance of Airtel industry and Vodafone.

2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.

3 3. To compare various parameters of marketing strategies, manufacturing process, technology

adopted production policy, advertising, collaboration, export scenario, future prospect for the

two companies and government policies.

4. To study customer buying behavior and factors which influence the purchase decision
process.

5. To know how the company has been successful in encountering the aggressive marketing
strategies of competitors
 SYNOPSIS
Telecom Sector In India

Than 125 million telephones network is one of the largest communication networks in
World, which continues to grow at a blistering pace.

The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy
measures taken by the government as well as the dynamic and entrepreneurial spirit of the various
telecom service providers both in private and public sector. The telecom sector has shown impressive
growth during the past decade. Today, more

Two striking features of this growth viz. increasing preference for mobile phones and higher

contribution of private sector in the incremental growth have predominated the telecom sector. The

share of mobile phones (including WLL mobile) has overtaken the share of landlines with 62% in the

total number of phones. The private sector's contribution is also increasing rapidly. Currently more

than 30 lakh phones are being added each month and it is targeted that by the end of 2008 the total

number of phones may reach a level of 350 million taking the tele-density to more than 30% which is

currently at 24.63%.

Network Expansion: The total number of telephone subscribers has reached 281.62 million at the end of
January 2008 as compared to 232.87 million in July 2007. The overall Teledensity has increased to
23.63% in January 2008 as compared to 21.20% in August 2007.

Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last month
compared to 8.17 million in December2007. This pushed the total wireless subscribers base
to 242.40 million by Jan 31 2008
Wire line Subscribers: The wire line segment subscriber base stood at 39.73 million with
a decrease of 0.16 million at the end of January 2008.

Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007.
The Teledensity is 24.63%at the end of January 2008 as compared to 18.31% at the end of
March 2007, registering an increase of 6%.

Increasing Role of Private Sector: The private sector has played a significant role in the growth of
telecom sector. The share of private sector has risen to 85 per cent in December 2007 from 64.14 per
cent in November 2006.

Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition.
The minimum effective charges for local calls have fallen considerably in recent months especially for
cellular service. The long distance domestic as well as international charges have also fallen
considerably.

Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory
Authority of India Act, 1997 enacted on March 28,1997. The goals and objectives of TRAI are
focused towards providing a regulatory framework that facilitates achievement of the objectives of
New Technology Policy (NTP) 999. TRAI has endeavored to encourage greater corporation in the
telecom sector together with better quality and affordable prices
 AIRTEL

Airtel is abrand of telecommunication services inIndia operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of

subscribers. Bharti Airtel owns the Airtel brand and provides the following services

under the brand name Airtel: Mobile Services (using GSM Technology), Broadband

& Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line),

Long Distance Services and Enterprise Services (Telecommunications Consulting

for corporates). It has presence in all 23 circles of the country and covers 71% of the

current population (as of FY07).

Leading international telecommunication companies such as Vodafone and SingTel

held partial stakes in Bharti Airtel
 VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator inIndia that covers 16
telecom circles inIndia Despite the official name being Vodafone Essar, its products are simply
brandedVodafone. It offers bothprepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros.

Vodafone Essar provides2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.

Vodafone Essar, previously Hutchison Essar is a cellular operator inIndia that covers 16
telecom circles inIndia . Despite the official name being Vodafone Essar, its products are simply
brandedVodafone. It offers bothprepaid and postpaid GSM cellular phone coverage throughout
India and is especially strong in the major metros. Vodafone Essar provides2G services based on
900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the
country's 23 license areas
 INTRODUCTION

OF

THE TOPIC
 BACKGROUND
BACKGROUND

The project is an extensive report on how the Airtel Company markets its strategies and

how the company has been able in tackling the present tough competition and how it is

scooping up by the allegations of the quality of its products. The report begins with the

history of the products and the introduction of the Airtel Company. This report also

contains the basic marketing strategies that are used by the Airtel Company of

manufacturing process, technology, production policy, advertising, collaboration, export

scenario, future prospect and government policies. The report includes some of the key

salient features of market trend issues.

In today’s world of cutthroat fierce competition, it is very essential to not only exist but

also to excel in the market. Today’s market is enormously more complex. Hence forth, to

survive in the market, the company not only needs to maximize its profit but also needs to

satisfy its customers and should try to build upon from there.
 COMPANY PROFILE

OF

AI
RTEL
Vision

"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus

remains unchanged: seek out the best technology in the world and put it at the service of our ultimate

user: our customer."

These are the premise on which Bharti Enterprises has based its entire plan of action.

Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world-class products and services.

Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and
innovations to its credit, ranging from being the first mobile service in Delhi, first private basic
telephone service provider in the country, first Indian company to provide comprehensive telecom
services outside India in Seychelles and first private sector service provider to launch National Long
Distance Services in India. Bharti had approximately 3.21 million total customers – nearly 2.88
million mobile and 334,000 fixed line customers.

Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi,
Gujarat,Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra
circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has fixed-line
operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi, Karnataka and Tamil
Nadu and nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by offering data transmission services and
voice transmission services for calls originating and terminating on most of India's mobile networks.
The Company is also implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from
being the largest manufacturer of telephone instruments, it is also the first telecom company to export
its products to the USA.

Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities that the
Company believes are available in the Indian telecommunications market and consolidate its
position to be the leading integrated telecommunications services provider in key markets in India,
with a focus on providing mobile services”.

The Company has developed the following strategies to achieve its strategic objective:

• Focus on maximizing revenues and margins;

• Capture maximum telecommunications revenue potential with minimum geographical
coverage;

• Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

• Position itself to tap data transmission opportunities and offer advanced mobile data
services;

• Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

• Leverage strengths of its strategic and financial partners; and

• Emphasize on human resource development to achieve operational efficiencies.

Businesses
Bharti Tele-Ventures current businesses include -

• Mobile services
• Fixed-line
• National and international long distance services
• VSAT, Internet services and network solutions
• Broadband services with DSL and Wi-Fi network

Competitive Strengths

Bharti Tele-Ventures believes that the following elements will contribute to the Company's success as
an integrated telecommunication services provider in India and will provide the Company with a solid
foundation to execute its business strategy:

• Nationwide Footprint - approximately 92% of India's total mobile subscribers resided in the
Company's fifteen mobile circles. These 15 circles collectively accounted for approximately 56% of
India's land mass;

• Focus on telecommunications to enable the Company to better anticipate industry trends

and capitalize on new telecommunications-related business opportunities.

• The strong brand name recognition and a reputation for offering high quality service to its
customers;

• Quality management team with vision and proven execution skills; and

• The Company's strong relationships with international strategic and financial investors such as
SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and
New York Life Insurance.
Brand Architecture:
Bharti is working on a complex three-layered branding architecture — to:

• Create specific brands for each service,

• Build sub-brands within each of these services and

• Use Bharti as the mother brand providing the group its corporate identity as well
as defining its goal to become a national builder of telecoms infrastructure
Airtel - The flagship brand for cellular operations all across the Indian
country.

Touchtel - The brand earmarked for basic service operations.

India One - The brand for national long distance (NLD) telephony
Though the costs of creating new brands are heavy but the group wants to
create “distinct independent brands to address different customers and
profiles”
Brand Strategy:

To understand the brand strategy, let’s first look at the brand building exercise associated with
Airtel — a brand that had to be repositioned recently to address new needs in the market.

When the brand was launched seven years ago, cellular telephony wasn’t a mass market by any
means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a
minute) as well as instrument prices were steep — sometimes as much as buying a second-hand car.

Bharti could have addressed the customer by rationally explaining to him the economic advantage of
using a mobile phone. But Sachdev says that such a strategy would not have worked for the simple
reason that the value from using the phone at the time was not commensurate with the cost.
“Instead of the value-proposition model, we decided to address the sensory benefit it gave to the
customer as the main selling tack. The idea was to become a badge value brand,” he
explains.

So the Airtel “leadership series” campaign was launched showing successful men with their laptops
and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel was positioned as an
inspirational brand that was meant for leaders, for customers who stood out in a crowd.
Did it work? Repeated surveys following the launch showed that there were three core benefits that
were clearly associated with the brand — leadership, dynamism and performance.

These were valuable qualities, but they only took Airtel far enough to establish its presence in the
market. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience. And
the various brand-tracking exercises showed that despite all these good things, there was no emotional
dimension to the brand — it was perceived as cold, distant and efficient.

Sachdev and his team realized that in a business in which customer relationships were the core this
could be a major weakness. The reason with tariffs identical to competitor Vodafone telecomm and
roughly the same level of service and schemes, it had now become important for Bharti to “humanize”
Airtel and use that relationship as a major differentiation.

The brand had become something like Lufthansa — cold and efficient. What they needed was to
become Singapore Airlines, efficient but also human. A change in tack was important because this
was a time when the cellular market was changing.
The leadership series was okay when you were wooing the crème de la crème of society. Once you
reached them you had to expand the market so there was need to address to new
customers.

By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it
now has 1.8 million customers). And with tariffs becoming more affordable — as cell companies
started cutting prices — it was time to expand the market.

How could Bharti leverage this leadership position down the value chain? Surveys showed that the
concept of leadership in the customer’s minds was also changing. Leadership did not mean directing
subordinates to execute orders but to work along with a team to achieve common objectives — it was,
again, a relationship game that needed to be reflected in the Airtel brand.

Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly
through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers
were an important tool for market expansion and Bharti now focused on building closer relationships
with them.

That is precisely what the brand tried to achieve through its new positioning under the Airtel
“Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile users surrounded by
caring family members. Says Sachdev: “The new campaign and positioning was designed to
highlight the relationship angle and make the brand softer and more sensitive.”

As it looks to expand its cellular services nationwide —to eight new circles apart from the seven in
which it already operates — Bharti is now realizing that there are new compulsions to rework the
Airtel brand, and a new exercise is being launched to this effect. Right now, the company is unwilling
to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel as a power
brand with numerous regional sub-brands reflecting customer needs in various parts of the country.

If Airtel is becoming more humane and more sensitive as a brand, Bharti has also
understood that one common brand for all cellular operations might not always work in
urban markets that are now getting increasingly saturated.
To bring in new customers, the company decided that it needed to segment the market.
One such experiment, launched last year, is Youtopia, a brand aimed at the youth in the
14 to 19 age bracket
and for those who are “young at heart”. With its earlier positioning, Airtel was perceived as a brand

for the well-heeled older customer; there was nothing for younger people. With Youtopia, Airtel

hoped to reverse that.

In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at night

to Youtopia customers — a time when they make the maximum number of calls. It also set up

merchandising exercises around the scheme — like a special portal for young people to buy things or

bid for goods.

The company is now looking at offering other services at affordable prices to this segment which

include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper

for young people to use.

The other experiment that Bharti has worked on is to go in for product segmentation through the

Tango brand name. The brand was created to offer mobile users Internet-interface services or what is

known as WAP (Wireless Application Protocol).

The idea was to bring Internet and mobile in perfect harmony. “The name was chosen from the

popular movie title It Takes Two to Tango: basically, you need the two services to tango to offer

customers a new choice”, says Sachdev.

This, however, had less to do with the branding exercise as with inefficiency of service (accusingly
slow download speeds) and the limited utility of WAP services.

Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise could

be revived because Tango will be the brand to offer GPRS services — or permanent Internet

connectivity on the mobile phone — which Airtel is expected to launch soon.

 The Magic
Perhaps the more ambitious experiment has been withM agic — the pre-paid card. The idea was to
make the brand affordable, accessible and, most importantly, feasible as a means of expanding the
market even faster.

PHASE I –

Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him
that he would have to pay only if he made a call. Such a customer used the phone sparingly — mostly
for emergencies — and was not willing to pick up a normal mobile connection with its relatively high
rentals (pre-paid cards do not include rental charges).
To achieve its objectives Bharti did three things.

• One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no
strings attached and was simple to operate.

• Two, the product was made accessible and distributed through small stores, telephone
booths and even kirana shops so that the offering was well within arms reach.

• Third, to make the product more “approachable” to the customer, the company came with
vernacular ad campaigns

Like “Magic Daalo Say Hello” which appealed to local sensibilities.

This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all
across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 1.2 million today,
overtaking Essar’s branded pre-paid cardSpeed, which was launched much ahead of Magic. The
company is now re-working its Magic strategy even further.

Earlier, the branding strategy was aimed at roping in only interested customers — that is, customers
who were already inclined to opt for mobile services. But now, with basic service providers having
been allowed limited mobility at far cheaper rates, mobile service providers could find themselves
under threat again.

That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under
wraps, insiders say the new branding strategy would be aimed at offering them value which they had
not perceived would be available from using a pre-paid card.

PHASE II –

Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion
through India’s first national pre-paid card TV brand campaign

• First time ever in India - any pre-paid card brand goes on TV

• A combination of the film genre exposed through the TV medium designed to connect with the
masses of India

• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic -
‘Mumkin Hai’ come alive

• All elements - user imagery, context, tone & language created to connect the category to the
lives of the SEC B & SEC C segment – the middle class non-mobile user.

• Airtel Magic positions itself on the platform of being excellent for emergency situations -
increasing productivity as a part of everyday life.
•
Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor
with Airtel Magic, India’s leading pre-paid mobile card.

Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-
paid card brand campaign – ‘Magic hai to Mumkin hai’. The strategy is targeted at the non- user
segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at
 accelerating market expansion. The value proposition is centered around a person’s desire to make all
his / her dreams, ambitions & aspirations instantly possible. The new campaign for Airtel Magic is all
about empowering millions of Indians to be on top of their lives.

The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes &
desires come alive… instantly. (At just Rs.300/- per month Airtel Magic is so easy to buy.) Improving
productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to
control your life in a way never possible before. Indeed, anything that you think is possible is possible
with Airtel Magic. The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created to
capture this effectively

This strategy is designed to help us talk to this segment directly in the tone, manner & language of the
masses. The “Mumkin hai” value proposition will help us expand the market and gain a higher
percentage of market shares in the process.

The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “Mumkin Hai”
spirit (infact that is the reason they were selected as brand ambassadors). Sharukh rose from a TV
actor to become India’s top film star and national heartthrob. Kareena’s success is due to her
‘attitude’, talent, hard work and the sheer ability to make a mark in such a short time. Both these stars
have said ‘Mumkin hai’ and made it happen for themselves.

The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions across
India. The spirit of romance, dancing… the Indian cinema, well known to most as Bollywood, holds
millions of Indians together as one.

The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the empowering
optimism of “Mumkin Hai”, in the endearing situation of a boy-girl romance. Where Sharukh Khan,
sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic. (Poignantly
conveying that special feeling we all get when a dream is made possible and a victory of the heart is
won).

The strategy & new brand campaign is targeted at the large untapped base of intending mobile
customers from Sec A, B & C. The estimated addressable market of such customers in the next two
years is around 25 million in Airtel’s 16 states. The new strategy aims at correcting the perception that
the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios.

The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide
research and is an integral part of Airtel Magic’s new multi-media campaign. The campaign has been
created by Percept Advertising.
PHASE III -
Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion
through India’s first national pre-paid card TV brand campaign

• First time ever in India - any pre-paid card brand gives such freedom to recharge any value

• A combination of the film genre exposed through the TV medium designed to connect with the
masses of India

• Youth based - romance driven strategy platform makes the value proposition of Airtel Magic -
‘Aisi azaadi aur kahan?” come alive

• Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market
expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to
Mumkin Hai’. . The value proposition is centered on a person’s desire to make all his / her dreams,
ambitions & aspirations instantly possible. The new campaign for Airtel Magic is all about
empowering millions of Indians to be on top of their lives.

The brand is positioned to be relevant to the mass-market who want to make all their
dreams,hopes & desires come alive… instantly .At a amount of your choice you can
recharge your accountwith available validity time .Improving productivity, letting you
befriend the world and opening upnew horizons. It gives you the freedom to control your
life in a way never possible before.Indeed, anything that you think is possible is possible
with Airtel Magic. The new brand slogan
‘Aisi azadi aur kahan’ has been specially created to capture this effectively
Other Brand Building Initiatives:-
The main idea is to stay ahead of competition for at least six months. Working on the above game
plan Bharti is constantly coming up with newer product offerings for the customers.
The focus, of course, is to offer better quality of service.

• To make the service simpler for customers using roaming facilities, Airtel has devised common
numbers for subscribers across the country for services like customer care, food services and cinema
amongst others.

• It will also launch a unified billing system across circles so, customers moving from one
place to another do not have to close and then again open new accounts at another place.

• To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000
frequently asked questions and their answers have been stored on the computers.

• Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of
the total new subscriber base) would come from the pre-paid card segment. So, they must be given
value-added products and services which competitors don’t provide.

• Bharti, for the first time for a cellular operator, has decided to offer roaming services even to its pre-
paid customers, but the facility would be limited to the region in which they buy the card. To ensure
that customers don’t migrate to other competing services (which is known as churn and ranges from
10 to 15 per cent of the customer base every month), the company is also working on a loyalty
program. This will offer subscribers tangible cash benefits depending upon their usage of the phone.

• The loyalty program will not be only for a ‘badge value’, it will provide real benefits to
customers. The idea is to create an Airtel community.

• Another key area which Bharti is concentrating its attention upon is a new roaming service launched
in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to
his mobile instead of traveling via his home network

• The company also offers multi-media messaging systems under which customers having a
specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the
phone. The cost per picture is between Rs 5 to Rs 7.

• Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is
today. A key area is to increase the number of activation centers. Earlier Bharti had 250 Airtel
Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which were
kiosks in larger shops. Now activation can be done by all of them, and not only by Connect outlets, all
within 15 to 20 minutes. In comparison, the competition takes two to four hours.
• Pre- paid cards are really catching up with the mobile phone users and it is actually helping the
market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one need
not pay security deposits for picking up a pre-paid card. It is often available even with paanwalas. As
befits a fast-moving consumer service, the game is now moving beyond price to expanding
distribution reach and servicing a well-spread-out clientele with technology and strategic alliances.
Bharti is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low
for consumers and making recharging more convenience.

• Bharti is in the process of launching a new system in alliance with Mumbai-based Company
Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a
card. The system will not only save users the hassle of going out and buying a card every time it
expires but also enable mobile companies to reduce the cost of printing and distributing cards.

• Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to
reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with local
grocery shops which will enable users to recharge their cards by just making a phone call to the shop.
Apart from improving the convenience of recharging, mobile operators are beefing up their
distribution channels. The company is constantly innovating to enhance the value proposition for its
pre-paid service. They are leveraging technology to expand their distribution network and deliver
round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers.

• Bharti Cellular has also launched a special service, CareTouch, for high-value, corporate customers,
providing them with instant, single-point access for any assistance they require. Customers can dial
777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, and
value-added services without any additional paper work. Bharti Cellular is offering a range of services
without going through an interactive voice recorder ensuring that they save time. Dedicated
‘CareTouch’ executives are expected to assist customers with any service on priority basis. Besides
the regular proactive reminder calls for bill payment, customers can also call CareTouch for bill
payments at free of cost.

• Airtel presented MTV Inbox; the first ‘on-air’ SMS based interactive music dedication show
exclusively for Airtel and Airtel Magic customers. Highly interactive VJ based show with real-time
feedback mechanism. Both brands joined hands to target the high growth youth segment
Bharti’s View on its Branding strategy:-

First, brand building efforts in today’s context have to be seen in a more holistic manner.
Delivering value on a sustained basis is perhaps the most potent key to build a brand that
lasts.

Unflinching orientation to customer needs is the second key success factor. Customers (be it for
industrial products or consumer goods and services) across the world are more informed and, at the
same time, becoming more individualistic in their needs and far more demanding with the passage of
time.

Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs,
and then reacting in “real-time” are essential to attract and retain customer loyalty — a key element of
creating brand equity in the present situation.

Customizing the product (and communication of its benefit) to meet the specific needs of various
consumer/customer sub-segments is the third element in creating brand appreciation.

As far as allocation of time and financial resources are concerned, too many companies mistakenly
allocate a disproportionate amount on mere advertising and promotion. This is not to say that
advertising and promotion are less relevant. On the contrary, with more choices and higher media
clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this
has to be undertaken in tandem with enterprise-wide “reengineering” of the business philosophy and
core design, production, and delivery operations for the product itself.

The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself
becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity
continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever
increasing value.

It is, however, crucial to note that in the years to come, not only will the cost of building a regional or
a national (or an international) brand will continue to rise but also the time taken to do so will be
longer and will need sustained and focused efforts
Comparison of marketing strategies

Between

Bharti Airtel and Vodafone

 Purpose of comparison

• The sub main purpose of this report is to compare the marketing Strategies adopted by
Bharti Airtel and its rival Vodafone

• The comparison shows how both of the companies have been challenging each other to
gain market shares.

Why comparison with Vodafone

• Bharti Airtel is the leader in telecommunication sector

.• Bharti Airtel holds the lion share of market of communication sector.

• However, Vodafone has been giving tough competition to Bharti Airtel.

• Vodafone is the second largest player and share holder in Communication sector.
• Since its launch Vodafone has been adopting aggressive marketing strategies

•The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one
month of its first launch of postpaid subscription in 2002.AD.

•With a different technology Vodafone creates its own market.

•Vodafone odafone. Today deals in every business of communication sector.
•Vodafone making and changing the strategies to capture the market shares
Brand positioning by Bharti Airtel
Market segmentation

• Geographical segment (metropolitans & cities India)

• Demographic segment - middle income groups
• People age group of 20 to 28 year

Target marketing
• People who living in cities and towns.

• Poor or middle income group people.

• Youngsters in big cities.

• Businessmen

Positioning
• Creating brands (Sharukh khan & Sachin Tendulker)
• Ads and promotions
• Promotion for study of poor childrens.

Marketing mix

• Price: low price strategy

• Place: maximum outlets and service centers

• Product: verities available for various groups

• Promotion: various schemes for pre-paid and post-paid

MARKETING STRATEGIES

OF

VODAFONE
Vodafone target the rural India

The main targeted customers of Vodafone are from rural India.

By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages
and towns.
Offering cheap handsets
Vodafone offers cheap and free connections to all customers.
The cost for these sets was Rs-799-849-1099\set and onward.

Free support and services

In every district and big towns Vodafone opens its service centers to provide better support and
services.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices
BRAND POSIONING

BY

VODAFONE
Market segmentation

•Geographical segment (rural India)

•Demographic segment - middle income groups
Target marketing

• People living in small towns and villages.

• Poor and middle income groups.
• Youngsters in big cities.
• Businessmen
Positioning

• Creating brands
• Ads and promotions
Marketing mix

• Price: low price strategy

• Place: maximum outlets and service centers
• Product: verities available for various groups
• Promotion: various schemes for pre-paid and post-paid.
Services provised by Bharti Airtel

• Mobile services with GSM technology

• Fixed-line connections

• National and international long distance services

• VSAT, Internet services and network solutions

• Broadband services

Services provised by Bharti Vodafone

● Mobile services with GSM technology

● Fixed-line telephone services

● Universal Internetworking

● VoIP (Voice over Internet Protocol)

● Interactive Television

● Visual Communication

● Broadband Portal

● Telecommuting
 RESEARCH METHODOLOGY
Achieving accuracy in any research requires a deep study regarding the subject. The prime objective
of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the
impact of WLL on Airtel.

The research methodology adopted is basically based on primary data via which the most recent and
accurate piece of first hand information could be collected. Secondary data has been used to support
primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method, where a face- to-
face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.
 Type of Research Methodology
EXPLORATORY:

TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THE

OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA
WHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE
COURSE OF ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED

DATA COLLECTION METHOD

THERE TWO TYPE OF METHOD OF DATA COLLECTION.
.PRIMARY DATA
• SECONDARY DATA
Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method, where a face- to-
face formal interview was taken. Lastly observation method has been continuous with the
questionnaire method, as one continuously observes the surrounding environment he works in.

DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE.

PRIMARYDATA:

PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME.
AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER.

QUESTIONNAIRE SURVEY:
IN THE STUDIES A QUESTIONNAIRE IS PREPARED. THE QUESTIONNAIRE

CONSISTS OF 15 QUESTIONS.

SECONDARY DATA

SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY

COLLECTED .THE SECONDARY DATA, WHICH HAS BEEN USED TO CARRY OUT THIS
STUDY, ARE AS FOLLOW:
• BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS
• INDUSTRY REPORTS
• COMPANY’S INTERNET SITE
• SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES.
SAMPLE UNIT: - DELHI & NCR.

THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF

CUSTOMERS DURING THE ACTIVITIES PERFORMED, WHICH INCLUDED, MARKETS,
COLD CALLING, CANOPIES, ETC.
SAMPLE DESIGN CONSISTS OF RANDOM
SAMPLING.

SAMPLE SIZE : - 50 PEOPLE

METHOD OF COLLECTION: -
FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED
OBSERVATION AND INTERVIEW SCHEDULE IN WHICH THE
QUESTIONNAIRES WERE FILED BY THE
INTERVIEWER.
PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS
DONE TO COLLECT THE DATA, MARKET RESEARCH WAS UNDERTAKEN,
THAT WAS ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES
DESIGNED.

RESEARCH INSTRUMENT:

QUESTIONNAIRE

THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE

FOLLOWING POINTS: -

• GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUESTION.

• INDUCING THE RESPONDENTS TO CO-OPERATE.
• GIVING INSTRUCTIONS AS TO WHAT IS NEEDED.
• IDENTIFYING THE NEEDS TO BE KNOWN
 A brief history of Tele sector in India
In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's
competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals
was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and
Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further
classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least
attractive. The regulatory body at that time — the Department of Telecommunications (DOT) —
allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular
services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra
in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one
metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no
bidders, while West Bengal and Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and
the president officially announced the TRAI ordinance on 25 January 1997. The government decided
to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom
operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial burden on the
operators, diverting funds away from network development and enhancements. As a result, by 1999
many operators failed to pay their license fees and were in danger of having their licenses withdrawn.
In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this
new policy, the old fixed-licensing regime was to be replaced by a revenue- sharing scheme whereby
between 8-12 percent of cellular revenue were to be paid to the government.

INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several
problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of these
roadblocks / current position is tabulated below:
ROADBLOCKS
CURRENT POSITION
High license fees
Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of
license fees.
Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum, while businesses

with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5 major groups

emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all

operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making roles

vested in different bodies.

Issues relating to unfavorable interconnect terms for private operators, pass through income, intra

circle long distance, spectrum availability and allocation and the like remained unresolved for long

periods.

Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI (Mahanagar

Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue

sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies

for usage by GSM operators.

Problems in Financial closures due to:
 Licensing tenure of 10 years
 Large upfront cash requirements from promoters due to heavy license fee burden in initial
stages of deployment Asset based financing approach by Indian Financial Institutions.
 Licensing tenure increased from 10 to 20 years
 Large upfront cash requirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital expenditure;
project financing being considered by most financial institutions.
Foreign ownership / change of partner limitations
Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing
ease of entry / exit - paves the way for full control of businesses by foreign companies.
Inadequate growth of market / subscribers
Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective
measures taken, market / subscriber base expected to zoom
2.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY
The interconnection regime between cellular operators and fixed-line operators is still biased
against the former.
Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration
rate is still very low at 0.8 percent in a nation of over one billion people.

In recent years, many foreign companies had pulled out from their cellular joint ventures in India due

to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out from

Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand and
Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin

Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001, British

Telecom exited from Bharti Cellular. Bell South International has also indicated its intention to pull

out from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its stake in

Spice Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is

uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping across

the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via Hutchison

Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin

Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local company, Kotak

Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom, thus

circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Hutchison

Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, Bharti

Enterprises — another major cellular player — acquired control of JT Telecom, which was later

renamed Bharti Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet

(August 2000). Bharti also acquired the Punjab license of Essar and started operations, giving

competition to the lone operator there, Spice Communications. Going forward, Bharti is likely to

merge all its cellular companies into one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four

metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed by

Escotel with four, Hutchison with three, and Vodafone and Idea cellular with one each. Bharti and

Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi.

Escotel and Vodafone have not made any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as

the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002. This

was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002.

However, this has been postponed until after mid October. Once BSNL rolls out its service, most

telecom circles will have four cellular operators. There will be tremendous competitive pressure,

which will result in lower tariffs. Future rate cuts are expected, which will drive demand, together

with falling handset prices and the introduction of prepaid services.

In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial

public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company

got a very good response from the primary market. The total size of the IPO was 185 million shares at

a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This

will be used to fuel its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS)

in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea have GPRS-

enabled networks, there is caution on their part to launch the service. With hardly any applications, the

success of GPRS remains a question.

In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over by the

United Kingdom based telecommunication company name Vodafone telecomm services and comes

with the name of Vodafone essar.

Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication
Maharashtra in 2008.
Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and
take over
first rainbow in Rajasthan with CDMA network criteria
Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively promoting their brand

and service portfolio through high-visibility advertising and promotional campaigns. Cellular

operators like Bharti, Orange and BPL Mobile have been advertising aggressively on hoardings and

kiosks. Public transport like the city

rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the establishment of

longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and "Orange

Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food and

beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops.

Enterprise mobile applications — promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have concentrated

on offering differentiated services for businesses. However, as operators realize that offering basic

voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now

seriously looking at the enterprise segment for provisioning superior services.

Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and
instant alerts are being offered.

A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the

process of introducing a facility to fleet management companies so that they can improve the

efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning.

Premium automakers are also installing a global system for mobile communications inside a vehicle to

help trace lost vehicles and track down stolen cars.

Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can

be barred, limiting access to select numbers and diverting calls to one single number. Broadcasting

services are also quite popular, especially among fast food centers that have a central number. Group

SMS is quite popular, especially among enterprises both in the service as well as the fast-moving

consumer goods (FMCG) segment that have a large field force and need to provide regular updates on

inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks

too find bulk SMS service very useful to forward transactional alerts to their customers.

2.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.
•
The implementation of enhanced networks like 2.5G will enable operators to offer data
services. This is an opportunity to customize and differentiate better.
•
The entry of state-run operators like BSNL and BHARTI means that prices will no longer
be controlled, thus there is less chance of a cartel being formed.
•
Network coverage in terms of geographic spread and quality of coverage is crucial
especially for the business subscriber.
•
The bigger the service provider's national presence, the better it is for businesses. On the
roaming front, signing up with a national operator is advantageous.
•

Limited mobility wireless in local-loop services (by fixed network service providers) will be a

disadvantage for cellular operators in the short term. Consequently, operators need to streamline their

customer relation activities and adopt aggressive subscriber acquisition and retention strategies.
2.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A document

buried in the sands of time. The next major policy document, which was produced, was the National

Telecom Policy of 1994, a consequence of the on going process of liberalization.

Year
Event
1851
First telephones in India
1943
Nationalization of telephone companies
1985
DOT was created
1986
Creation of BHARTI and VSNL
1991
Telecom equipment liberalized
1994
Licenses for paging
1994
Telecom policy announced
September 1994
Guidelines for private sector participation in basic services
November 1994
Cellular licenses issued for metros
December 1994
Tenders for cellular licenses in 19 cities apart from 4 metros
January 1995
Tenders for 2nd operator in basic services apart from DOT
on circle basis.
August 1995
VSNL launches Internet services
January 1996
TRAI formed
November 1998
Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a

series of action points. Like other policies, it sought to achieve the impossible in finite time like

improve quality of service and its availability, wide coverage (a phone in every village), at reasonable

rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines
telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private

operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin

to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi

in itself a circle.

The basic premise on which competition has been introduced is that every circle will have one private

operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTI have the

option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme, which was broadening the

reach of telephony in India, has not been met. Even liberalization policies were not implemented

properly. The regulator TRAI was set up after delays and confusion and even after its creation, DoT

continued to fight with it in courts. It was also affected by the resource crunch, and financing options

like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow

private sector entry in both basic and value added services. The intention, though noble failed to

achieve its goals because of improper implementation, the economic costs are still borne by the end

user.

The telecom sector has witnessed some fundamental structural and institutional reforms in the past

decade. Telecom equipment manufacturing was completely deregulated in 1991. Value-added services

(including cellular services) were thrown open to private sector participation in 1992. Basic services
were opened to private participation in 1994 by dividing the country into 21 telecom Circles and

allowing one private operator per Circle to compete with DOT. An independent telecom regulatory

Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was

announced in 1998 allowing independent service providers to enter the sector ending the earlier

monopoly of VSNL. Reorganization of DOT, separating policymaking function and service provision

and corporatization of DOT's operational network are two major institutional reforms, which need to

be implemented
# To conduct this research the target population was the mobile users, Who are using GSM
technology.
# Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.
# To these 50 people a questionnaire was given, the questionnaire was a combination of both open
ended and closed ended questions.
# The date during which questionnaires were filled.
# Some dealers were also interviewed to know their prospective. Interviews with the managers of
GSM service providers were also conducted.
# Finally the collected data and information was analyzed and compiled to arrive at the conclusion
and recommendations given.
# To conduct this research the target population was the mobile users, Who are using GSM
technology.
# Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.
# To these 50 people a questionnaire was given, the questionnaire was a combination of both open
ended and closed ended questions.
# The date during which questionnaires were filled.
# Some dealers were also interviewed to know their prospective. Interviews with the managers of
GSM service providers were also conducted.
# Finally the collected data and information was analyzed and compiled to arrive at the conclusion
and recommendations given.

Sources of secondary data

Used to obtain information on, Bharti’s history, current issues, policies, procedures etc, wherever

required.

# Internet

# Magazines

# Newspapers

# Journals

# Bharti Circulars Store

# Bharti News Letters

# Vodafone Store

# Vodafone Ministore
Data
analysis
And
Interpretati
on
Subscriber numbers in (mn) held b y Vodafone and Airtel
June-05
Sep-06
Dec-07
Mar-08
Dec-08
Mar-09
Airtel
3.19
4.62
5.50
6.54
10.98
14.07
Vodafone 1.82
4.19
6.24
7.26
10.45
12.99
Source TRAI:
MARKET PLAYERS IN TELE COMMUNICATION
05
10
15
20
25
MarketshareAug''05MarketshareAug''09
Bharti Airtel
vodafone
Relianceinfocomm
IdeaCellular
Operator
Market
share
Aug''05
Market
share
Aug''09
Bharti Airtel
19.06
22.49
FINDINGS AND ANALYSIS
Age Group Grap
As we can see from the above graph, the people who are in the age group of 21-28 years
are the ones who are the maximum users of mobile phones. This segment is the one
which gives maximum business to the mobile operators. This segment constitutes the
young executives and other office going people. They are 65% of the total people who
were interviewed. The next age group are the
people who are 28-35 years old. They are 20% of the total. They are those who are at home or have

small business units etc. And the next age group is the youngest generation who are 15-21 years old.

They are school and college going students and carry mobile phones to flaunt. They are 15% of the

total interviewed people.

Occupation Graph
As the above graph shows that 55% of the total people interviewed are working. So, these
people are the ones who are the maximum users of mobile phones. They are the young
executives, managers, Tele - callers etc. who require mobile for their official purposes.
The next category is the households, who are either housewife, small units which operate
from their homes etc. They are 20% of the whole. The next segment is the students. They
are 15% of the whole. And 10% of the whole is categories who are the professionals.
Service Provider Graph

These are the total market share of mobile user or people captured by the mobile provider company.

There two major company in mobile phone service sector Vodafone and Airtel who respectively hold

the market share with other company as 17% and 20% of total market user segment of mobile

customer.
Customer Service At Airtel Graph

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people are

dissatisfied with the customer services provided by Airtel. They are the ones who have the maximum

share in the market but they are lagging behind in the customer services. 10% of the people were fully

dissatisfied with the customer services of Airtel. This could leave an impact on the mind of the

consumer. He can even switch over his brand. 20% of the people seemed partially satisfied with the

customer services and only 10% seem to be fully satisfied with Airtel’s customer services, which is a

very small amount.

Type Of Card Graph

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were

having cash card connections. This means that the cash cards should be easily and readily available in

the local markets. Airtel should make sure that Magic is available in each and every nook and corner

of the market. 15% of the people were having sim connections which is the regular bill.
Monthly expense graph
People on an average spend RS 500 per month as their mobile phone expense. 64% people spend
this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the

remaining 12% had an expense more than RS 1000, they could the ones having sim connections or

having cash cards and having a lot of business calls on their mobiles.
Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of

such a technology. So, in order to get the answer for this question they were first explained the

concept. Only, 55% people knew what WLL is all about.

Awareness of WLL Players Graph

Vodafone was the brand which was popular amongst the interviewed people. As Vodafone had done

so much advertising and has it banners and hoarding spread all over Delhi. So, this could be one the

reasons of its popularity. Tata was hardly a known brand in this new field. Possibly, because of less

promotions done by them as compared to Vodafone.

On the basis of analysis of the questionnaire I have found that the maximum no. of people who use

mobile phones is in the age group of 20 to 28. Who are the young executives and other office goers?

They spend a maximum of RS 500 as their mobile expense.

There is more no. of prepared cards than post paid cards. The mobile users want to spend money
side by side than to spend money at the end of the month on a big bill.
Now when I compared Airtel with its competitor from the point of view of the consumer I found
that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or ahead

of its competitor but in the case of customer care and availability they lag behind there competitors.

As, Airtel has a hold in the market because it has the maximum no. of connections, so it must improve

upon it customer services. As far as WLL is concerned people are aware about it but not many people

are aware about Tata. They only know more about Vodafone. People at this point of time are not

interested to switch over from GSM to WLL

 Customer Response towards
Questionnaire

Which Brand you, prefer most?

 Airtel

 Vodafone

 Reliance

 TATA

 Idea
How long you have been using this Product?

0-2 years
2-5 years
5-10 years
More than 10 years

Consumers response shown in chart for usage

Are you using other product with Airtel?
Yes
No

Here are the customer responses about the use of the Airtel product and other
product rather than Airtel.
in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown
interest in other telecom products in urban areas
Do you collect any information search before making
purchase?
SWOT ANALYSIS

Strengths
•Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.

•It has a strong brand name, superior quality products and an enviable distribution
network.
•It has a clear and well-defined organization structure and limits of financial
authority.
• Increase in advertisement spends affect the company’s margins.
• The company‘s bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.
Weakness:
• Little efforts over the Advertising of products.
• Distribution channel is not accurately categorized.
• Premium priced products, hence can’t compete in low price segment.
• No separate strategy for rural market.
Opportunities:
•The company's financial performance can receive a major boost from its cost
reduction efforts.
• There is a lot of scope of product and market diversification.
• Exports of products will also have huge chances in the coming years.
•Airtel’s business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth
Threats
•

The slowdown in the economy has restricted topline growth of most FMCG majors and

for Airtel also it will be difficult to maintain historical growth rates in such a depressed

scenario.

Company’s major raw materials are influenced by government policies / controls as well

as vagaries of the monsoons. Fluctuations in the prices of raw materials would have

significant impact on costs and margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also increases
company’s production and distribution cost
 LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that we

underwent during the study. The following points in this direction would add to our total

deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2. The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience due to short period of time.

8. Some retailers did not answer all the questions or do not have time to answer
 SUGGESTIONS

Following are the few suggestions toAI R TEL for improving the market share and image of the
products concerned.

1. PRODUCT
*Modification must be brought about in AIRTEL, in terms of quality. Its demand should be
increased.

2. PLACE
* The brands must be made available easily in, PCO & general stores.

3. PROMOTION
*Company must undertake extensive promotional activities like advertisements must be released

in different Medias to create brand awareness.

*Free samples should be distributed among the prospects. Sales promotion tools like gifts, contests

and coupons must be given to retailers as well as customers and prospects.

* Catalogues should be distributed among customers.

4. PRICE
* Price should be as competitive as other company maintains
* Distribution of new connection should be in reach of customer pocket
 CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged behind its competitors

as far as customer service and availability is concerned. The maximum no. of people who use the

mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as

they are consumer friendly and recharging the connection is not a problem.

Maximum no. of people spends RS 500 on their connections. As Airtel is the only company having

the maximum no of mobile connections so it must seriously look into the loop holes of the existing

customer service department.

As we know that now Airtel has already launched its product with logo “’ Aisi azaadi aur kahan”’ has

already became popular in market. So we can say that in spite of so many competitors in the market

Airtel is having a good position just because every time, it tries its best to understand the need of its

important customers.

From the comparison and deep analysis of every aspect of business of both the companies we can

conclude that bharti Airtel has to more work in every field of communication business.

It is the time not only to survive but to sustain in the market for a long time.

For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc.

Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and
when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of population of India
lives in these areas.
The other segment may be costumers of all age groups.

RECOMMENDATIONS

I have made following recommendation to the company after doing the summer training there:
•
The company should modify its credit policy as they only target the cash paying customers
who are not easy to trace.
•

The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed

by the exporters that their receipts from company doesn’t matches with the sample’s quality shown

before giving orders.

•
The company should make its marketing strategy flexible enough in order to face
competition.
•
The company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.
•

The company rate policy must be flexible enough to catch new customers because if company offers

lower price to a new customer then he may continue buy the goods and can be a permanent customer

for the company.

The company should offers such rate in the market so that it may able to catch a bigger market share

and it should be able to compete with the local traders and commission agents while having a brand

name.

The company should take the opinion of exporters from time to time to know what problems they are

facing from the company’s side. And if any change they require in present supplying condition?
 BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the following

Books, Magazines/Journals and Web Sites have been referred. All the material detailed below

provides effective help and a guiding layout while designing this text report.

Books :
Principles of Marketing –Philip Kotler & Kevin keller edi. 12
Market Research – D.D. Sharma
Research Methodology – C.R. Kothari
Websites:
www. Airtelworld.com
www.google.com
www.india.com
www.Vodafone.in

http://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, Mumbai,
June25,2004.

com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.htm, 4
November 2003Domain, Missed Call, at http://www.domainb

Magazines:

Airtel (2 July to 10 July 2004)

Airtel India page of HT paper (Thursday 1December 2004)

Cowards India (26 December to 4 Jan. 2004)

 QUESTIONNAIRE
Dear Sir/Madam,
I Livjit kaur,Ravinder kaur,, student of MBA of Bhawani Shankar Anangpuria
institute of technology & management, Faridabad. I am doing my project on “Comparative analysis
of marketing strategy of Vodafone and Airtel”. Please give your precious time for filling these
details.

Q.1 Name those companies which provide telecom services now a days?

 Airtel

 Vodafone

 Reliance
 TATA

 Idea

Q.2 which mobile company services you are using now a days?

 Airtel

 Vodafone

 Reliance

 TATA

 Idea

Q. 3 Among them, which Brand you, prefer most?

Airtel

Vodafone

Tata

Idea

Q.2 How long you have been using this Product?

0-2 Years
2-5 Years
5-10 Years
More than 10 years

Q.3 Are you using other product instead of Airtel?

 Yes
 No

Q.5 how would you rate the experience with Brand?

 Airtel Excellent Good Average Below
Average
Vodafone

Reliance

Q.6 Do you collect any information search before making purchase?

 Yes
 No

Q.7 If yes, which sources are used?

 Magazines

 Dealers
 Sales Executives

 Operators reference

 Pamphlets and catalogue

 Reference from friends and relatives

 Any other

Q.8
What are the features you look for in a product before making purchase decision? Give
preferences (1-Highest, 6- least)

 Brand credibility

 Price and Discount

 After sales services and parts, network

 Value for money

 Vehicle performance

 Add on features or ergonomics of design

Q.9. Which of these marketing / sales schemes attracts you while purchasing any connection?

 Good Network

 Discount scheme

 Service package

 Any other

Q.10 If you have to purchase a new connection or product in near future, which Brand will you go for
and why?
_________________________________________________
_________________________________________________
_________________________________________________
Q.11 Are you aware of various promotional activities being run by Airtel,
if yes then how?
Are you satisfied with these promotional activities?

Very Satisfied Some what Not satisfied

satisfied satisfied

Customer care

By ad films

By champ

24hrs cal center services

Q.12 How would you rate Airtel performance as your expectation on 5 points scale (5
Highest?)

1 2 3 4 5

 After Sale service

 Maintenance
 Product as per expectation

Q.13 What are you suggestions for improving the product quality, service availability and parts
availability?

_______________________________________________________________________________

_______________________________________________________________________________

______________________________________