Shradha Report Airtel

8/13/2019 Shradha Report Airtel

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A REPORT

ON

Marketing Strategies Of Bharti Airtel In

B2B

For Voice and Data Products In Pune(2013)

BY

SHRADHA PANDEY

MIT PUNEs

MIT SCHOOL OF TELECOM MANAGEMENT

(MITSOT), PUNE


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A REPORT

ON

Marketing Strategies Of Bharti Airtel In

B2B

For Voice and Data Products In Pune(2013)

BY

SHRADHA PANDEY

PRN: 12096

Batch: 2012-2014

Under the guidance of

PROF. RAJASHRI KADAM

A

REPORT SUBMITTED IN

PARTIAL FULFILLMENT OF REQUIREMTS OF

PGDM (MARKETING)

BATCH 2012-2014

MIT PUNEs

MIT SCHOOL OF TELECOM MANAGEMENT

(MITSOT), PUNE


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Acknowledgements:

I would like to acknowledge all of my family members to making me avail this opportunity andmy whole heartedly gratitude to all the staff teaching or non-teaching involved directly or

indirectly in making my project successful.

I would like to thank the following contributions in preparing this report:

Mr. Manish Mishra

Project Manager

(Airtel)

Selected me and made meavailable with all the available

resources and provided

valuable insights about future

findings.

Mr. Paras Doshi Project Manager(Airtel)

Mentoring throughout the

project through day to day

discussions,providing valuableinsights to the different issues

and helping to come out with

major proposals.

Mr. Amol Shinde IT Head

(Airtel)

Provided the trainings from

the starting till the end helped

in getting out of all the

situations, explained all theproduct portfolios that are new

in the market.

Prof. Rajashri kadam Faculty Marketing

Department

Guided me from the verybeginning by helping to

choose the project title,

explaining the significance

and scope of the project,facilitating all the data feed

and overall monitoring.


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TABLE OF CONTENTS

CHAPTER PAGEAcknowledgement......

Executive Summary List of Tables..

EXECUTIVE SUMMARY

I. INTRODUCTION1.1 1.2Aim and Objectives

1.3 Research Problem Statement.

1.4 Scope of the Study

1.5 Rational for the Study......................................................................................

CHAPTER 2

Profile of the Company and Industry Overview

2.1Industry Overview.2.2 Company Overview.

2. ....

2.4 Product Portfolio..

2.4 Market Share/Financial Analysis...................................................................

CHAPTER 3

Data Analysis3.1 Overall Research Process45

4.2 Research Design47

4.3 Research Methods.484.4 Quantitative and Qualitative Research...49

4.5 Types of Data: Secondary Data & Primary Data...52

4.6 Data Collection Instruments..534.6.1Selected Data Collection Method..57

4.6.2 Questionnaire Design.57

4.7 Survey Procedure574.7.1 Sampling.58

4.7.2 Sampling Techniques.59

4.7.3 Probability Sampling...61

4.7.4 Non-Probability Sampling.. 624.8 Sampling Elements... 63

4.8.1 Population63

4.8.2 Sampling Unit63

4.8.3 Sample Size..634.9 Research Limitations..64


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CHAPTER 5

Findings and solutions

7.1 Suggestions737.2 Conclusion......73

CHAPTER 6 .......................................................74

AnnexureAnnexure- 1- Sample Questionnaire...................................................................77

Annexure- 2- Statistical Outputs.. ..78


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Executive summary:The objective of this report is to summarize the activities I undertook as part of my summer

internship at Bharti Airtel Limited, Pune. I had work in coordination with the companys salesand marketing team to analyze the and to access the benefit derived from it. Its include dealers

and distributers visiting in Jaipur city and surrounding areas.

This report on Bharti Airtel is done to find out certain objectives regarding the strategic

approach Adopted by Airtel to stand strongly in the competitive telecom market. Airtelsmarketing strategies are analyzed using various models like SWOT analysis, BCG Matrix, ,

porters five forces etc. The outcomes of these models are properly analyzed to find out the

various aspects like companies position and competitors position in the market.The report not just focus on the company but also on the telecom industry and it also talks about

the various marketing strategy adopted by the company. SWOT analysis of Airtel helps to find

out the weak points of the company and to find out the way to overcome this problem. and to

understand the strategy why company is looking for overseas market like Nigeria and Seychelles.


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I. Introduction:About telecom industry:

Until the late 90s the Government of India held a monopoly on all types of communications as

a result of the Telegraph Act of 1885.Till the industry was liberalized in the early nineties, it wasa heavily government-controlled and small-sized market, Government policies have played a key

role in shaping the structure and size of the Telecom industry in India. As a result, the Indian

telecom market is one of the most liberalized market in the world with private participation inalmost all of its segments. The New Telecom Policy (NTP-2012) provided the much needed

impetus to the growth of this industry and set the trend for globalization in the industry.

Present Status of the Telecommunication Sector (As on December 31, 2012) Indian telecom network is second largest in the world after China.

The country has 895.51 million telephone connections, including 864.72 million wirelesstelephone connections.

Overall tele-density in the country is 73.34%.

Urban tele-density is 149.55%, whereas rural tele-density is 39.90%.


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The share of wireless telephones in total telephones is96.56%.

The share of private sector in total telephones is 85.51%.

Number of Broadband connections is 14.98 million. The entire evolution of the telecomindustry can be classified into three distinct phases.

The objectives of the NTP-2012, inter-alia, include the following:

Provide secure, affordable and high quality telecommunication services to all citizens

Strive to create One Nation - One License across services and service areas. Achieve One Nation - Full Mobile Number Portability and work towards One Nation -

Free Roaming.

Increase rural tele-density from 39 to 70 by the year 2017 and 100 by the year 2020. To recognize telecom, including broadband connectivity as a basic necessity like

education and health and work towards Right to Broadband.

Provide affordable and reliablebroadband-on-demand by the year 2015 and to achieve175 million broadband connections by the year 2017 and 600 million by the year 2020 atminimum 2 Mbps download speed and making available higher speeds of at least 100

Mbps on demand.

Provide high speed and high quality broadband access to all village panchayats througha combination of technologies by the year 2014 and progressively to all villages andhabitations by 2020.

Recognize telecom as Infrastructure Sector to realize true potential of ICT fordevelopment

Address the Right of Way (RoW) issues in setting up of telecom infrastructure. Mandate an ecosystem to ensure setting up of a common platform for interconnection of

various networks for providing non-exclusive and non-discriminatory access.

Enhanced and continued adoption of green policy in telecom and incentivize use ofrenewable resources for sustainability.

Achieve substantial transition to new Internet Protocol (IPv 6) in the country in a phasedand time bound manner by 2020 and encourage an ecosystem for provision of a

significantly large bouquet of services on IP platform.


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Foreign Direct Investment (FDI)

Foreign direct investment has been one of the major contributors in the growth of the Indian

economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy. Thetelecom sector has played a crucial role in attracting FDI in India. The share of telecom sector in

the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3% in FY05.

The telecom sector requires huge investments for its expansion as it is capital-intensive and FDI

plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom

accounts for almost 10% of the total FDI inflows in the country and has been the third-largest

sector to attract FDI in India in the post-liberalization era.


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Contribution to GDP

According to the UNCTAD, there is a direct correlation between the growth in mobile Tele-density and the growth in GDP per capita in developing countries, which tend to have a high

percentage of rural population. The share of the telecom services industry in the total GDP has

been rising over the past few years (the telecom sector contribution in GDP went up from 2.52%in FY05 to 2.83% in FY07).

Employment

The Indian telecommunication industry employs over 400,000 direct employees and about 85%of these employees are from government-owned companies. The ratio of number of subscribers

to employees, an indication of efficiency and profitability, is much higher for private companies

than for government companies.


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1.1) About Bharti Airtel:

Bharti Airtel Limited is a leading global telecommunications company with operations in 20countries across Asia and Africa, Headquarter in New Delhi, India. The company ranks

amongst the top 4 mobile service providers globally in terms of subscribers. In India, the

company's product offerings include 2G, 3G and 4G wireless services, mobile commerce,fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services includingnational & international long distance services to carriers. In the rest of the geographies, it

offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over 269 million

customers across its operations at the end of March 2013.

Bharti Airtel Limited is India's leading provider of telecommunications services. The

businesses at Bharti Airtel have been structured into three main strategic business groups

Mobile Services, Broadband & Telephone Services and Enterprise Services.

Bharti Airtel Limited is one of India's leading private sector providers of

telecommunications services with a market share of all India wireless subscribers at 30%.The company is the only operator to provide mobile services in all the 23 circles in India.

The company also provides telephone services and Internet access over DSL in 15

circles. The company complements its mobile, broadband & telephone services with

national and international long distance services.

The company also has a submarine cable landing station at Chennai (Network i2i), which

connects the submarine cable connecting Chennai and Singapore. The company is a keyconsortium partner, which jointly owns and has developed the next generation undersea

cable system SMW-4.The SMW-4 (South East Asia, Middle East and Western Europe 4)

is the new undersea cable connecting the Pacific to the Atlantic, and has been built with

4th generation Terabit DWDM technology. The company provides reliable end-to-enddata and enterprise services to the corporate customers by leveraging its nationwide fiber

optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and

international bandwidth access through the gateways and landing station.Latest projects of Bharti Airtel in partnership with radio mirchi has launched mirchi

mobile. Bharti Airtel said it has launched a new SIM card for global travelers. Bharti

Airtel ranked second best corporate governance.


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1.2) SWOT Analysis of Airtel

Strengths

Largest telecom operator in India: Bharti Airtel is the largest telecom service providerin India and the 5th largest integrated telecom operator in the world.

Strong customer base growth: Bharti Airtel's subscriber base has grown from 137.0 mnin Mar 2010 to 220.9 mn in Mar 2011, a phenomenal growth of 61.2%.

4G service launch: The telecom operator has bagged 3G spectrum in 13 out of the 22circles in India and plans to offer these services in all these circles (covering 65-70% of

its subscriber base) by the end of March 2011.

Large passive infrastructure: Bharti has 32,792 towers under Bharti Infratel and108,586 towers under Indus at the end of FY2011.

Increase in total minutes on network: The total minutes on network have increasedfrom 182,001 million minutes in Q4FY10 to 240,245 mn in Q4FY11.

Maximum number of active customers: Bharti Airtel has ~92% active customers, themaximum in the industry.

Focus on rural sales: The Company enjoys one-fourth of the rural market share and isfocused on increasing it further.

Global infrastructure: the only Indian company which is havin international submarinecable.

Weaknesses

Decline in customer market share: Bharti Airtel's customer market share has declinedto 20.0% in March 2011 compared to 21.8% in March 2010. However, all the major

telecom service providers except Tata Teleservices have taken a hit on their market share

during this period due to the new Greenfield operators offering rock bottom prices

Decline in ARPU's: Due to the company's focus on the rural markets, ARPU's havedeclined from Rs 220 in Q4FY10 to Rs 194 in Q4FY11.


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Opportunities

India is the fastest growth mobile services market in the world: The mobileconnections in India increased by ~20 million in March 2011 to reach 811.6 million. The

high growth is expected to continue, going further.

New subscriber additions through MNP: Bharti Airtel has the opportunity of attractingsubscribers of other telecom service providers after the launch of Mobile Number

Portability (MNP) recently, as the company has a reputation of providing excellent

services.

Future potential of Telemedia services: The government has a huge stake in the growthof these services as a 10% growth in the broadband services results in ~1.38% growth in

the GDP of the country. This presents a good opportunity for Airtel in the coming years.

Opportunities in Africa: Airtel is the dominant player is most of the 16 Africancountries that it operates in. The remaining countries in the continent, where the company

has no presence provide an opportunity for the future.

Possibility of acquisitions:The new Greenfield operators have not been successful inacquiring a decent revenue and customer market share, in spite of offering lower prices.

This may lead to an opportunity for the bigger players like Bharti to acquire these

businesses in the future.

Threats

MNP can be a double edged sword: Other telecom service providers, especially the newGreenfield entrants could try to entice Airtel's customers through rock bottom prices.

Temporary setback to telecom tower growth:Due to the uncertainty faced by the newoperators over license conditions, the new operators have put their network rollout on

hold, thus affecting the tower business.


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1.3)BCG Matrix Study

BhartiAirtel (Enterprise Services)

BCG Matrix(Airtel portfolio):-

StarSBU: Enterprise

Services(Carriers &

Corporate)

Reason :-( Major Contributor

to revenue in just 4 years of

coming )

?SBU: 4G-LTE

Reason:-(Very new

approach but quick grip of

market/Good Collaborations

like-Indus Towers/Untapped

Market)

Cash Cow

SBU: Mobile Services

Reason:-(Legacy of Bharti)

Dog

SBU: Tele-media Services

Reason : (Significant fall in

ARPU/Other Big Players

existing in Market)


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1.4) About the project:

Business Telecommunications Portfolio:

Mobile services Telemedia services

Airtel business Digital TV services

Airtel business:This business unit delivers end to end telecom solutions to India's large corporates. It

serves as the single point of contact for all telecommunication needs for corporatecustomers in India by providing full suite of communication services across data, voice

and managed services.

These services include; Internet, MPLS -VPN, domestic and international private leasedcircuits, Satellite services (VSAT), Audio & Video conferencing, Data centre services,

Managed network services, corporate value added services, EPBX, Centrex, Contactcentre solutions.

Airtel business:

Emerging business Enterprise & government Global business

End-to-end comprehensive managed solution with flexibility to customize solutions as per

your needs:

Managed transport services Managed MPLS services Managed services

MPLS transport servicesMake your network efficient, scalable and reliable with our MPLS solutions. We offer end-to-end comprehensive solutions for network connectivity, thus giving you flexibility through

customized solutions and increased coverage. MPLS solutions portfolio MPLS Layer 2, Layer

3

Our global MPLS backbone is capable of carrying any type of data (i.e. voice, video, CRM,

ERP, FTP etc.) across the globe. With direct and extended coverage in more than 190 countries,our MPLS network is the right choice for managing your Global WAN connectivity

requirements. Airtel offers four classes of service to suit various application requirements.

Managed MPLS Service

Airtel has been certified as the first Tier-1 service provider in Asia-Pacific under the CISCO

Managed Services Channel Partnership (MSCP) program. Airtel is the 1st Service Provider inAsia-Pac to get this Tier 1 Global Certification


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II. Research methodology:.

2.1) Objective of the study:

To analyze different strategies in detail and find out the adoption timing of all strategiesamong existing and new customers requirements so that the ground can be set for thedevelopment of the comprehensive marketing plan for the competition of Bharti Airtel

Limited.

To understand the requirements of different data products in the Pune market ,we wererequired to connect with the market directly and understand requirements through a

structured questionnaire designed for in-depth interview or survey.

We were supposed:

To study marketing strategies Airtel is implementing to defend and increase the marketshare.

To find who are the competitors of the Airtel and the market shares of the competitors.

To find out market potential of data products i.e. MPLS, leased line for SME segment. To study the factors influencing the buying decision of customers having data products. To find out need of internet leased line from customers. To study satisfaction level of Airtel/Non-Airtel customers in Data products.

2.2)Scope of the study:

The research work was carried out in Pune in areas of Kothrud, Bavdhan-Khurd, Deccan ,JMroad, Tilak road. The respondents were the executives from the IT/Non-IT companies.

In view of the above mentioned reasons the selected topic i.e.Marketing strategies of Airtel in

B2B for Voice and Data Products for the year 2013 is justifiable.

2.3)Research design:The market research can be divided into three types namely:

1. Exploratory research.2. Descriptive research.3. Causal research.

I have used **Exploratory research design

Exploratory research is conducted into an issue or problem where there are few or no

earlier studies to refer to. The focus is on gaining insights and familiarity for later

investigations. Secondly on the basis of what calculations I got from exploring myproblem I have done further descriptive type of research to give final solution and got the

final findings and solutions. Here data is quantitative and statistical tools are applied for

getting the final solutions. It is used to obtain information on a particular problem orissue. Finally causal or predictive research seeks to explain what are the strategies, what

is happening in market and into a particular situation .


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Here exploratory research design used to understand the overall aspects of the

respondents opinion. It was also done to discover ideas that may be potential business

requirements.The study was done in steps stated below:

1. Understanding the data products through training given by the Airtel IT head.2.

Understand the difference between DSL (broadband) and Data products i.e.Leased line.

3. Finding different routes through which Airtel provides Internet leased line.4. Strategies for differentiating the Market segment i.e. Corporate , SMEs,

Commercials.5. Doing cold calls and collecting data.

Primary data- through questionnaire and personal interview of differentcompanies in Pune region.

Secondary data- through internal system & software , internet ,magazines,newspaper etc.

6. To analyze the data.7.

Finally the solutions and giving recommendations on the basis of research.

2.4)Research methods:

In terms of data capture and analysis there are two main types of Market research methods .

1. Qualitative research.2. Quantitative research.

I have used** both of themfor my final solutions and findings.

Qualitative research:

In this type of research ,Qualitative researchers aim to gather an in-depth understanding

of human behavior and the reasons that govern such behavior. The qualitative methodinvestigates the whyand howof decision making, not just what, where, when.

I have used**In-depth interview and focus groups.

. In-depth interviews:

The method of the in-depth interview is appropriate if you need to gain an insightinto individual evaluations of specific material.In-depth interviews are most appropriate

for situations in which you want to ask open-ended questions that elicit depth of

information from relatively few people.

Thats why they are used mainly research in business markets and they are themain form of qualitative research. Here I have spend time in one-to-one interview finding

out the customers individual opinions.

.

2.5) Quantitative research:

It refers to the systematic empirical investigation of social phenomena viastatistical, mathematical or computational techniques. The objective of quantitative


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research is to develop and employ mathematical models, theories and/or hypotheses

pertaining to phenomena.

Quantitative researchis generally done using scientific methods, which can include:

The generation of models, theories and hypotheses.

The development of instruments and methods for measurement Experimental control and manipulation of variables Collection of empirical data. Providing solutions through statistics. Analysis of data.I have used **Questionnaireas my instrument in the research.

Research instrument:A questionnaireis a research instrument consisting of a series of questions and

other prompts for the purpose of gathering information from respondents. Although theyare often designed for statistical analysis of the responses, this is not always the case. The

questionnaire was invented by Sir Francis Galton.

The questionnaire helped us to get following information from customers:

Satisfaction level of customers with their current brand or Airtel. Their current requirements. Their perception about Airtel. To understand their spending on Telecom (Voice and Data). To understand the factors that affects the buying behavior of the

organizations.

If they use ERP/Data centre.Types of Data:

1. Secondary data.2. Primary data.

I have collected **both the data.

Secondary data: .

It is collected through internet published data, magazines, newspapers.1. Internet: Sites of various service providers were visited, the information

studied and even non-numbered data was collected from the sites.

2. Journals: White papers from some consulting firms were used to collectdata.


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Primary data:Data is collected to obtain desired information through structured

questionnaire. The primary data for this project was collected through personalinterviews with IT professionals from about 35 companies.

2.6) Survey procedure:

Sampling techniques:

1. Probability sampling.2. Non-probability sampling.

I have used**Non-probability sampling,(convenience sampling) technique.

Convenience sampling technique:This method is been used for obtaining data as per the convenience and

because of time constraint of 2 months.The process followed was:

1. Firstly ,I differentiated all the companies and collected data atinitial time of research about different companies and compiled in

excel sheet.2. The whole data is transferred into SPSS 17.0 .3. Then I used SPS software for in-depth analysis of survey.4. With the help of Descriptive analysis tools of Analysis in SPSS

analyzed the whole data.

2.7) Sampling elements:

Population:

In view of scope of research the population was approximately 12000 IT/non-ITcompanies in Pune. I have covered approximately 50 companies in doing the survey.

Sampling frame:The whole SMEs population was impossible to complete because oftime constraint of 2 months so, I have divided the population of 12000 companies into a

sample frame consisting of only IT/non-IT companies in some specific areas Kothrud,

Bavdhan-Khurd, Deccan ,JM road, Tilak road as per my convenience.

Sampling unit:

The SMEs using Internet leased line or voice services or fixed lines.

Sample size:

The sample size taken is 50 companies. These companies have given

complete detail on the basis of interview questions and the preparedquestionnaire. Sample size was so small because of time and monetary

constraints.


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III. SECONDARY DATA ANALYSIS:(On the basis of industry)

1. PORTERS FIVE FORCES MODEL OF INDIAN TELECOM SECTOR

THREAT FROM NEW ENTRANTS

Economies of Scale Demand Side Benefits Capital Requirement Incumbent Advantages Government Policy

BARGAINING POWER OF THE BUYER

Less differentiation among the service providers. Cut throat competition among numerous suppliers. Price sensitive customer.

RIVALRY AMONG EXISTING COMPETITORS

High Exit Barriers.

High Fixed Cost. 6-7 players in each region. Price wars.


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BARGAINING POWER OF THE SELLERS

More number of suppliers. Shared tower infrastructure.

Limited pool of skilled managers and engineers those well versed in the latesttechnologies.

THREAT OF SUBSTITUTES

VOIP (Skype, Messenger etc.) Online Chat. Satellite phones. Price-Performance trade-off very high.


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PEST ANALYSIS

POLITICAL

Presence of huge number of players inthe market.

DOT, TRAI, DTS who takes care of the

rules and regulation.

Apart from them it keeps issuing policy

and act which checks the events

happening in the industry.

ECONOMIC

The areas served bproviders.

Increased econom

liberalization.

Opening of value a

SOCIO-CULTURAL

The main aim is to sustain the customer

base.

Provide the customers with the highest

level of satisfaction and delight.

Diversification in other areas.

TECHNOLOGICAL

IT support is essent

A business has to

supply chain proce

information flow.

Convergence of te

IT.


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DIFFERENT COMPETITIVE STRATEGIES:

Cost Leadership Strategy

A firm gains cost leadership in an industry when its cost of production is lower than that of its

competitors.

By : Managing its processes and resources efficiently and effectively and bringing down its

operational costs.

Offered products and services at lower prices. Because either the profit margins are greater or the sales volume has increased.

Operationalmargin

NETMARGIN

company June 12 Jun 13 June 12 June 13

Bharti 43% 38% 26.4% 19.30%

Rcom 37.90% 31.60% 23.90% 13.20%

IDEA 32.80% 26.60% 14.10% 6.50%

MTNL 23.70% 22.90% 7% 6.80%

A cost leadership strategy works well for Airtel in the event of a price war in the industry. Since

the firm is already working on a low price strategy, it has reap profits while the competitors

are bound to make losses.


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Differentiation StrategyThe differentiation strategy adopted by the firms needs to possess sufficient skills and abilities to

differentiate the product from that of the competitors based on some attributes that allow theconsumers to perceive the product as different from that of the competition. Firms adopt the

differentiation strategy successfully have access to advanced scientific research, a highly skilled

labor force, effective customer communication strategies, etc.Airtel is providing free digital EPABX with free leased lines (no connectivity charges).So thefirm is providing latest EPABX to the customer which is costing approx Rs 50,000.

1. Best service provider, good call center service esp. in local languages, good service evenin the remote areas, emphasis on barriers break when people speak, new initiatives likegoogle search on airtel live, downloads etc.

2. Long term HR strategy, Gallup Great Workplace Award, Both internal developments aswell as external hiring, development programs with IIMs.

Business Challenge:

Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a

business-driven framework for integration, allowing it to implement and deliver new services

rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel

needed to find a way to focus on developing new services that could set it apart from thecompetition and strengthen its customer relationships.

Solution

Bharti Airtel entered into a comprehensive 10-year agree-ment with IBM to transform itsprocesses and take on the management of its IT infrastructure. Its new platform provides a

standardized framework for Bharti Airtel to integrate its channels and customer-facing

processesenabling a more seamless customer experience, higher customer satisfaction and

more profitable growth.

Key Benefits:

1. Ability to process 1.5 million new customers per month2. Outsourcing of technology enables Bharti Airtel to focus resources on growing the

business


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Focus Strategy

A firm pursuing a focus strategy tends to serve a specific segment instead of catering to the

entire market. This segment may be a special group of customers, a specific geographic area, or aparticular product or service line. The customers will also be loyal to the company and therefore,

the entry of a new competitor into that area becomes difficult.

Airtel is focusing on the customers who is having more than Rs10000 monthly landline billing.Airtel is offering landline services which consist of PRI (Primary Rated Interface).Focusing

more on wireless services with fast introduction of 4G and provision of services through RF

(radio frequency) in pune.

Source: www.trai.gov.in

Airtel is focused in fast response time towards its customer complaints and growing its

relationship with customers day by day.

14%

86%

Market Share of Basic Services Segments in

India (2011-12)

wireless lines fixed lines


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Product planning strategy:

The product or service is the heart of the marketing mix. Without a product or a servicecustomers needs cannot be satisfied. The basic product promise by Airtel is mobility.

Airtel's main marketing strategy is to be a first mover all the time. It has recognized thesignificance of making the first move-- because in the field of Communication &Information Technology changes occur at a tremendous pace.

Airtel seeks to carry out this segmentation through provision of new information servicesand making new facilities available.

The product policy and planning depends on the stage of the product life cycle. Atpresent the cellular phone market has reached the maturity stage. Since, the premium

segment is nearing saturation the company targeting the upper middle and middle-middleclass.

Airtel is trying to optimize the price performance package by offering suitable "productbundling".


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PRIMARY DATA ANALYSIS

( on the basis of sample)

Characteristics of the Sampling frame:

Data analysis is a body of methods that help to describe facts, detect patterns, develop

explanations, and test hypotheses. It is used in all of the sciences. It is used in business, in

administration, and in policy. The data obtained from a study may or may not be in numerical or

quantitative form, that is, in the form of numbers. If they are not in numerical form, then we can

still carry out qualitative analyses based on the experiences of the individual participants. If they

are in numerical form, then we typically start by working out some descriptive statistics to

summarize the pattern of findings. These descriptive statistics include measures of central

tendency within a sample (e.g. mean) and measures of the spread of scores within a sample (e.g.

range). Here in this research sample taken is on the basis on census method. It means data is

collected from all the 50 companies. The basis of data collection was to understand consumer

behavior and perception about Airtel. In questionnaire it is clearly mentioned about the

preferences, some customers give preference to Technology, some give to Service, Some give

preference to Brand and some to Price. It is mentioned whether they think airtel is a good

brand/best brand/better brand/poor brand. On the basis of study of it we can conclude why

customers prefer different companies than airtel.


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Market Share Analysis

Table: Survey Information

Total no. of companies visited 100

No. of persons interviewed 70

No. of persons refused 15

No. of companies didnt existed/shifted 10

Share of each service provider:

Service

providersKothrud Bavdhan Deccan JMroad Swargate

Airtel 5 4 3 6 2

Tata 4 3 5 3 5

Tulip 3 3 2 4 3

BSNL 2 2 1 3 2

You 5 4 4 5 2

Sify 2 3 2 5 3

Figure5.1: Pie Chart showing share of each Service Provider

Interpretations: It clearly shows the biggest competitor for Airtel is Tata which is having a

wide market presence and brand loyalty. Almost all the companies availing services of Tata are

Airtel

Tata

Tulip

BSNL

You

Sify


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also fully satisfied while many of the Reliance customers are not satisfied with their services and

so such customers should be chased.

Bandwidth Distribution:

Airtel 2mbps 6 mbps 256 kbps 12 mbps5 4 3 6 2

4 3 5 3 5

3 3 2 4 3

2 2 1 3 2

5 4 4 5 2

2 3 2 5 3

FigureF5.2: Pie Chart showing Bandwidth distribution

Interpretations:

As we visited many companies of which most of them were SMEs and dont have much of

internet/data usage and so are comfortable with 1-2 mbps line. It also shows that to save few of

connectivity cost they are not moving towards high speed plans. But the future prospects are high

as the rates may be decreased by most of the SPs and the data usage is also increasing.


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Share of Broadband and Lease Line customers:

Airtel Lease line Broadband

74 26

Figure F1.3: Pie Chart showing the share of broadband and lease line customers

Interpretations:As most of the companies have different branches/offices in other locations and for their

connectivity they are using Lease Line but still many of them are adjusting with the broadband

services to save on costs.

Lease line

Broadband


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Satisfaction level with current Service Provider

Airtel Very satisfied Satisfied Unsatisfied No opinion

30 45 10 15

FigureF5.4: Pie Chart showing satisfaction level with current SP (out of 10)

Interpretations:Here, around 45 customers are quite satisfied with the services being offered to them but the

non-Airtel customers of these also had a good perception for Airtel. So, once they get aware of

the various features and benefits of Airtel Lease Line/MPLS they may change their services to

Airtel when their current plan gets expired.

very satisfied

satisfied

unsatisfied

No opinion


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Perception of Airtel in the minds of customers

Airtel

Very good 25

Good 50

Ok 15

Bad 10

FigureF5.5: Pie Chart showing perception of Airtel in the minds of customers (out of 10)

Interpretations:Here, almost 85% of customers have a good perception for Airtel who call is as a Good Brand

in the range of 50 and 25 out of 100 and that shows Airtel can chase many of such customers

with better features, tariffs and/or plans.

very good

good

ok

bad


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IV. FINDINGS AND CONCLUSION:

Shradha Report Airtel

Documents

Transcript of Shradha Report Airtel