NEW Airtel

7/29/2019 NEW Airtel

1/17

PROJECT REPORT

ON

SUBMITTED TO: SUBMITTED BY:

Dr. M.J Menon. Aditi Bhardwaj (Seat no: 43)Faculty of Marketing. Aditya Garg (Seat no: 44)

Gaurav Upreti (Seat no: 45)

Prachi Mehta (Seat no: 46)


2/17

INTRODUCTION

The telecommunications sector of India is one of the fastest growing sectors of our

country. It is the second largest in the world based on the total number of telephone

users (both fixed and mobile phones). Major sectors of Indian telecommunication

industry are telephony, internet and television broadcasting. Indian telecom

industry underwent a high pace of market liberalization and growth since 1990s.

The industry has grown over twenty times in just in just twelve years, from 37

million subscribers in 2001 to 960.9 million subscribers in 2012. Its rural

tele-density is about 33%. This presents an excellent opportunity for the telecom

companies to expand their business and reap benefits. The entry of foreign giants

like Vodafone into the market is a testimony for the attractiveness of Indian

telecom sector. In the initial stages, Indian telecom sector was a monopoly of the

Department of Telecom. But with the government allowing private participation in

the sector the growth has been phenomenal.

In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and

launched service in Delhi. By 2001, it expanded their services to four more states.

Airtel is the largest provider of mobile telephony and second largest provider of

fixed telephony in India and is also a provider of broadband and subscription

television services.

Bharti Airtel remained the leader in wireless segment with 22.3 per cent market

share, followed by Reliance and Vodafone with 17.72 per cent and 17.27 per centrespectively.


3/17

YEARS

1851 First operational landlines introduce

1881 Merger with postal system

1947 Merger of ETC and IRT into IRCC

1985 DOT established

1986 Conversion of DOT into VSNL and MTNL

1992 Private players were allowed in VAS

1994 National Telecom Policy (NTP) was formulated

1997 Independent regulator, TRAI, was established

1999 NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime

2000 BSNL was established by DoT

2002 ILDservices was opened to competition,Go-ahead to the CDMA technology,Internet telephony

initiated,Reduction of licence fees

2003 Unified Access Licensing (UASL) regime was introduced

2004 Broadband policy 2004 was formulatedtargeting 20 million subscribers by 2010

2005 FDI limit was increased from 49 to 74 percent

2006 Number portability was proposed

2007 Decision on 3G services


4/17

EVOLUTION OF TELECOM INDUSTRY IN INDIA:

ABOUT THE COMPANY

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largestcellular service provider in India, with more than 183 million subscribers as ofNovember 2012. With this, Bharti is now the world's third-largest, single-country

mobile operator and sixth-largest integrated telecom operator. It also offers fixedline services and broadband services. It offers its TELECOM services under the

Airtel brand and is headed by Sunil Bharti Mittal. The company also provides

telephone services and broadband Internet access (DSL) in top 95 cities in India. It

also acts as a carrier for national and international long distance communicationservices. The company has a submarine cable landing station at Chennai, whichconnects the submarine cable connecting Chennai and Singapore.

The businesses at Bharti Airtel have always been structured into three individualstrategic business units (SBU's) - Mobile Services, Airtel Telemedia Services &

Enterprise Services. The mobile business provides mobile & fixed wirelessservices using GSM technology across 23 telecom circles while the Airtel

Telemedia Services business offers broadband & telephone services in 95 cities

and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV.

Shahrukh Khan is the brand ambassador of the mobile company and KareenaKapoor and Saif Ali Khan are the brand ambassadors of the DTH company. The

company provides end-to-end data and enterprise services to the corporatecustomers through its nationwide fiber optic backbone, last mile connectivity in

fixed-line and mobile circles, VSATs, ISP and international bandwidth accessthrough the gateways and landing station.

Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber

base, behind China Mobile and China Unicom. In India, the company has a 19%share of the wireless services market, followed by 17% for Reliance

Communications and 16% for Vodafone. In January 2010, company announcedthat Manoj Kohli, Joint Managing Director and current Chief Executive Officer of

Indian and South Asian operations, will become the Chief Executive Officer of theInternational Business Group from 1st April 2010. He will be overseeing Bharti's

overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj Kohli andwill be the CEO with effective from 1st April, 2010.


5/17

VISION

By 2015 Airtel will be the most loved brand, enriching the lives of the millions.

By this vision, Airtel aims to be globally admired for telecom services that delightcustomers. By providing innovative products and services and error-free servicesthey want to meet the mobile communication needs of their customers.

MISSION

We at Airtel always think in fresh and innovative ways about the needs of

our customers and how we want them to feel. We deliver what we promise

and go out of our way to delight the customer with a little bit more

This mission statement is more of customer centric that shows their concern torevolve around there customers they cater. Technology plays an important role in

telecommunication, but mission remains silent in it as Airtel has outsourced this

aspect who are already well equipped to handle this aspect

OBJECTIVE / GOALS

To undertake transformational projects that has a positive impact on the

society and contribute to the nation building process.

To diversify into new businesses in agriculture, financial services and retail

business with world-class partner.

To lay the foundation for building a conglomerate of future.


6/17

MARKET SHARE OF AIRTEL

Customer share of Airtel

Revenue Share of Airtel

vodafone,

20.70%

Bharti airtel,

33.38%

BSNL, 10.20%

RELIANCE

COM, 11.50%

Idea cellular,

12.10%

Vodafone,

18.80%

Bharti airtel,

24.30%BSNL, 12.70%

Reliance com,

18.90%

Idea cellular,

11.20%


7/17

MARKETING STRATEGIES

Airtel used to apply different marketing strategies for different circles dependingupon the strategies of their competitors. While the company was focusing on its

pricing strategy, which was easily copied by its competitors, hence they started

focusing on developing value added offerings and schemes to expand its market

and gain customer loyalty. Analyst remarked that the players coming up with new

schemes or value-additions almost every week to get the better of their

competitors. By constantly keeping itself abreast with the moves of its competitors

and various proactive/reactive schemes Airtel was able to retain its leadership

position. Despite continual attacks from Vodafone, Reliance, Idea cellular andBSNL, Airtel cellular services remained on top.

In order to build brand preferences and promote brand awareness, airtel put up a

large number of hoarding and kiosks as a part of their promotion campaign. It is

trying to set up a thematic campaign to build a stronger brand equity for airtel. In

the telecommunication sector it is the network efficiency and quality of service that

plays an integral role .What the buyer now looks is to get the optimum price

performance package. In its former stage of promotion airtel began with a series of

teaser hoardings bearingjust the companys name without explaining what airtelwas. And then for the next phase they associated airtel with cellular services. From

handing out brochures to using direct callers, airtel used every kind of direct

marketing. This helped them to entrench their name in consumers mind. In the

first four months alone, airtels spending in advertisement exceeded Rs. 4crores

where the campaign now focused on the utility of cell phone.

Airtel, keeping in mind the importance of the customer retention, values its heavy

users the most and constantly indulges in service innovation. But, since heavy

users comprise only15-20% of the population, the other segment cannot beneglected. The population which has just realized the importance of cellularphones has to be roped in. It is for this reason that the service provider offers a

plethora of incentives and discounts. Concerts like the "Freedom concert" are being

organized by Airtel in order to promote sales. The media channel is chosen with

economy in mind. The target segment is not very concrete but, there is an attemptto focus on those who can afford. The print advertisements and hoarding are placed


8/17

in those strategic areas which most likely to catch the attention of those who need a

cellular phone. The product promise (which might cost different 1 higher) is animportant variable in determining the target audience. Besides this, other

promotional strategies that Airtel has adopted are:

MARKET SEGMENTATION

Segmentation is very important because of the better predictability of the targetconsumer group and to design the proper marketing mix strategy.

Segmentation is done on the following grounds:

Geographic variables

Region wise:

East Region (West Bengal, Assam, Arunachal Pradesh etc).

West Region (Gujarat, Rajasthan, Maharashtra etc).

South Region (Andhra Pradesh, Karnataka, Kerala etc).

North Region (Punjab, Haryana, Himachal Pradesh etc).

Central Region (Madhya Pradesh, Chhattisgarh, Jharkhand, etc).

Density of area:

Urban (Cities Such As Mumbai, Delhi, Pune, Jaipur etc).

Semi-urban (Nasik, Aurangabad, Ahemadnagar etc).

Rural (Baramati, Khed, Saswad etc).

Demographic variables

Age

From age group 18 to 35.


9/17

As most of the people start using a mobile from the age of 18so we may make a segment of a age group 18 to 35 as most of

them will be students and remaining will be freshers working

in the industry. So they need SMS plans for chatting and theyalso need cheap calling rates. We may provide the FRINDZ

card to them.

35 and aboveAs most of these groups will be working and dont use mobile for

SMS and chatting. So this group needs only the calling facility

at a reasonable rate. This Group may continue using thegeneral plans.

Income

Prepaid and postpaid.

Generally the mobile service providers plan their marketingstrategies according to the prepaid market and postpaid market.

So it is basically depends upon the income of the consumer thatwhether he selects the prepaid or postpaid. Generally the

consumers with low income choose prepaid and consumers

with income choose postpaid.

Behavioral variables

Brand loyalty

We can also segment it on the basis of the loyal customers andnon loyal customers of the brand. We can provide various

schemes and offers to the loyal customers to retain him with our

product.


10/17

MARKET TARGETING

Target the premium and upper middle class :

The motto behind this only those segments should be targeted

who value time and have the paying capacity.

PAN-INDIA targeting

High corporate clients.

Professionals by giving free calls in postpaid connections.

Entrepreneur by giving various plans in which they may get

internal calling free. Youth with FRIENDS scheme.

Targeting Students by introducing postpaid connection only for

students and with zero rentals. Also by providing low tariff for

night calling.

MARKETING MIX

PRODUCT

MOBILE SERVICES: Bharti Airtel offers GSM mobile services in

all the 23-telecom circles of India and is the largest mobile service

provider in the country, based on the number of customers.

- PREPAID

- POSTPAID

- BLACKBERRY

- SMART PHONES

- CALLING CARDS


11/17

AIRTEL TELEMEDIA SERVICES: The group offers high speed

broadband internet with a best in class network. With Landline

services in 94 cities we help you stay in touch with your friends &

family and the world. Get world class entertainment with Indiasbest direct to home (DTH) service digital TV in more than 150

cities

- BROADBAND

- FIXED LINE

ENTERPRISE SERVICES: Enterprise Services provides a broad

portfolio of services to large Enterprise and Carrier customers.

This division comprises of the Carrier and Corporate business unit.

Enterprise Services is regarded as the trusted communications

partner to India's leading organizations, helping them to meet the

challenges of growth.

DIGITAL TV SERVICES: Discover the magical experience of

digital entertainment with Airtel. From DVD quality picture and

sound, the best and widest variety of channels and programmers to

the best on-demand content on Airtel Live, your TV viewing

experience change forever with digital TV from Airtel!

PROMOTION

People who have booked Airtel services have been treated to

exclusive premiers of blockbuster movies. Airtel has tied up withLufthansa to offer customer bonus miles on the German airlinesfrequent flier's programs.

There have been educational campaigns, imagecampaigns, pre launch advertisements, launchadvertisements, congratulatory advertisements,


12/17

promotional advertisements, attacking advertisements and

tactical advertisements.

In 2002 Airtel got its signature tune from A.R. Rehman,

this signature tune us perhaps the most downloaded tunein India.

Special discounts in calling rates and SMS services.

Providing wallpapers and screensavers on website.

Large scale print and video advertising.

PLACE

Distribution channel under the company

DSA FSA(Direct selling association) (Franchisee selling association)

CSA(Corporate selling association)

ARC (Airtel relationship center)


13/17

PRICE

Airtel has customer base pricing strategies.

PREPAID TARIFF:

ONE TIME CHARGES

Pulse Rate Per Minute

Price of Pack (Rs.) 31

Free Airtime on

Pack (Rs.)0

Incoming Calls

(Rs.)Free

CALL CHARGES

Airtel CDMA/GSM LANDLINE

LOCAL RATES 0.50 0.60 0.60

STD RATES 0.50 0.60 0.60

SMS

Local 1

National 1.5

International 5

POSTPAID TARIFF:

ONE TIME CHARGES

Activation Charges 500

Membership Fee 0


14/17

Security Deposit 0

MONTHLY CHARGES (FIXED) (Rs.)

Bill Plan Charge 233

CALL CHARGES

AIRTEL CDMA/GSM LANDLINE

LOCALRATES

0.5 0.5 0.5

STD RATES

AIRTEL CDMA/GSM LANDLINE

STD RATES 1.51 1.51 1.51

SMS

Local 0.5

CDMA 0.5

National 1.5

International 5

VAS 3


15/17

PROCESS

Process for availing services is very easy and customer can avail itvery easily at his convenience.

121 is the customer support number which can be dialed fromanywhere in India.

PHSYICAL EVIDENCE

Customer touch points are extravagant and appealing.

Large showrooms and customer care centers.

Unique and appealing brand logo.

PEOPLE

Dedicated and passionate workforce.

Have various attractive schemes and plans or all the managements.

Good and effective customer service.

AIRTEL NEW LOGO


16/17

On 18 November 2010, Airtel rebranded itself in India in the first phase of a globalrebranding strategy. The company unveiled a new logo. It is designed by London-

based brand agency. On 23 November 2010, Airtel's Africa operations were

rebranded to 'Airtel'. Sri Lanka followed on 28 November 2010 and on December2010, Warid Telecom rebranded to 'Airtel' in Bangladesh.

The curved shape & the gentle highlights on the red color gives influence of warm

& inviting. It represents a dynamic force of unparalleled energy that bringscustomers closer. The specially designed logo type is modern, vibrant & friendly.

The use of all lowercase is Airtels recognition for the need for humanity.

Red is part of heritage. It is the color of energy & passion that expresses the

dynamism that has made Airtel the success it is today, in India, and now on the

global stage.

CURRENT HAPPENINGS

Airtel announced organizational changes with the objective of enhancing its focus

on expanding operations in the international market beyond India and south Asia

and also to consolidate its position in India. Over the coming months, Bharti Airtelwould invest heavily in outdoor, radio and digital advertising, as a part of

marketing and advertising budget pegged to be close to Rs 300 crore.

Music Maestro A.R Rehman has been signed to create a

new tone for the company which will be available for the users to download.

Moreover film actors like Kareena Kapoor and Saif Ali Khan have been signed as

the brand ambassadors of Airtel. The new brand identity has been created to appeal

to the customers not only in India but also in neighboring countries like

Bangladesh and Sri Lanka.


17/17

NEW Airtel

Documents

Transcript of NEW Airtel