SUMMER TRAINING PROJECT

“A STUDY OF MARKETING STRATEGIES OF

BHARTI AIRTEL LIMITED”

Undertaken At
BHARTI AIRTEL LIMITED

In the partial fulfillment of Bachelor of Business Administration

(2009-2010)

SUBMITTED TO: SUBMITTED BY:

Prof. Ajai Pal Sharma Isha Arora
Faculty Guide, Marketing Enrolment No. 0621701707
BBA- Vth Semester

TECNIA INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24

1
 TECNIA INSTITUTE OF ADVANCED STUDIES
(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24

TO WHOM IT MAY CONCERN

This is to certify that this summer training project report made by ISHA ARORA, student of BBA
(Vth SEMESTER), ENROLLMENT NO- 0621701707(TIAS), is an authentic work carried out by
her under my supervision and guidance.

Her work has been found satisfactory for the partial fulfillment of the degree of BBA.

___________________
Prof. Ajai Pal Sharma
(Faculty Guide)

2
 ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a key role in the success of any venture.
Working on this project was a challenge and made me a bit filtery in the beginning.

At this level of understanding, it is often difficult to understand a wide spectrum of knowledge

without proper guidance and advice. Hence, I take this opportunity to express my heartfelt gratitude
to Advest Marketing Services Pvt. Ltd. (Corporate Sales Associates of Bharti Airtel Limited.)

I also extend my sincere gratitude to Mr. Rakesh Malhotra (Senior Sales Manager) for his round
o’clock enthusiastic support and commentaries which made this project successful. I’m thankful to
him for his inspiration, encouragement and for the impetus obtained throughout the course of our
project.

Finally, I would like to thank Prof. Ajai Pal Sharma for his motivation and encouragement
throughout my endeavor and making impossible look easy for me.

NAME- ISHA ARORA

ENROLMENT NO- 0621701707

BBA-Vth SEMESTER

3
 PREFACE

Summer Training is an integrated part of B.B.A. course. The emphasis in the course is providing the
student an insight into the Corporate World. The Project is designed to enhance the knowledge. The
Education for becoming successful in the corporate world would be incomplete without an exposure
to work in an Organization. Therefore, Summer Training is essential requirement for all the students.

The Project is made in order to understand the how an Insurance Company works, what are the
things that are to be considered while investing the money, how we can make our Investments
beneficial to us, where one should invest in order to get the best results & many more things.

The Title of my project is “A STUDY OF MARKETING STRATEGIES OF BHARTI AIRTEL

LIMITED”.

The objective of this report is to find out certain objectives regarding the strategic approach adopted
by Airtel to stand strongly in the competitive telecom market. Airtel’s marketing strategies are
analyzed through SWOT Analysis.
This report on Bharti Airtel Limited not just gives a description about the company but it also talks
about the various marketing strategies adopted by the company.

This project is written in simple words & clarity has been given the top priority throughout. Special
care has been taken to present the Project in a simple & easy to understand style.

4
 TECNIA INSTITUTE OF ADVANCED STUDIES
(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail:director@tecniaindia.org, Website: www.tecniaindia.org
Fax No: 27555120, Tel: 27555121-24

DECLARATION

I, Isha Arora, Enrolment No. 0621701707 of BBA- Vth Semester of Tecnia Institute of Advanced
Studies, Rohini, Delhi hereby declare that the Summer Training Project Report entitled
“MARKETING STRATEGIES OF BHARTI AIRTEL LIMITED”
is an original work and the same has not been submitted to any other Institute for the award of any
other degree. A seminar presentation of the Summer Training Report was made on
_______________________ and the suggestions as approved by the faculty were duly incorporated.

Signature of Researcher

Countersigned
Signature of faculty Guide

5
 TABLE OF CONTENTS

1. CHAPTER – I PAGE NO.

PROBLEM AND PURPOSE OF RESEARCH

1.1 COMPANY PROFILE ...............

1.2 VISION AND MISSION ...............
1.3 INDUSTRY PROFILE ...............
1.4 INTRODUCTION ...............
1.5 OBJECTIVES OF STUDY ...............
1.6 PURPOSE AND SCOPE OF STUDY ...............

2. CHAPTER – II
REVIEW OF LITERATURE ...............

3. CHAPTER – III
CURRENT SCENARIO

1.1 SWOT ANALYSIS ...............

1.1.1 STRENGTHS
1.1.2 WEAKNESSES
1.1.3 OPPORTUNITIES
1.1.4 THREATS

6
4. CHAPTER – IV
RESEARCH METHODOLOGY

1.1 RESEARCH DESIGN ...............

1.2 TYPE OF DATA COLLECTED ...............
1.3 RESEARCH TOOL ...............
1.4 DATA COLLECTION ...............
1.5 SAMPLE SIZE ...............
1.6 PRESENTATION TOOL ...............
1.7 LIMITATIONS AND CONSTRAINTS. . . . . . . . . . . . . .

1.8 DATA ANALYSIS AND INTERPRETATION. . . . . . . .

5. CHAPTER – V

DISCUSSIONS AND FINDINGS OF THE STUDY

1.1 FINDINGS OF STUDY ...............

1.2 SUGGESTIONS AND RECOMMENDATIONS. . . . . . .

1.3 ANNEXURE ...............

1.4 BIBLIOGRAPHY AND REFERENCES. . . . . . . . . . . . . .

7
 CHAPTER - I

PROBLEM AND PURPOSE

OF THE RESEARCH

1.1 COMPANY PROFILE

1.2 VISION AND MISSION
1.3 INDUSTRY PROFILE
1.4 INTRODUCTION
1.5 OBJECTIVES OF STUDY
1.6 PURPOSE AND SCOPE OF STUDY

8
 COMPANY PROFILE

Bharti Airtel

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a
diverse business portfolio and has created global brands in the telecommunication sector. Bharti has
recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the
cash & carry business. It has successfully launched an international venture with EL Rothschild
Group to export fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial
protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its
inception has been at the forefront of technology and has steered the course of the telecom sector in
the country with its world class products and services.

The businesses at Bharti Airtel have been structured into three individual strategic business units
(SBU’s)- Mobile Services, Airtel Telemedia Services and Enterprise Services. The mobile
business provides mobile & fixed wireless services using GSM technology across 23 telecom circles
while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and
has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise
services provide end-to-end telecom solutions to corporate customers and national & international
long distance services to carriers.

9
Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The businesses of
Bharti Airtel are structured into two main strategic groups - Mobility and Infotel. The company
also has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and enterprise
services to corporate customers by leveraging its nationwide fibre-optic backbone, last mile
connectivity in fixed-line and mobile circles,

By the end of October 2005, Bharti Tele-Ventures was serving more than 14.74 million GSM mobile
subscribers and 1.10 million broadband and telephone (fixed line) customers. The equity shares of
Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the
Stock Exchange, Mumbai (BSE). As of September 30, 2005, the main shareholders of Bharti Tele-
Ventures were: Bharti Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom
(15.69%), through its investment division Pastel Ltd; and, Warburg Pincus (5.65%), through its
investment company Brentwood Investment Holdings Ltd). Other shareholders with more than a 1%
stake were: Citi Group Global Markets Mauritius Pvt. Ltd (2.99%); Euro pacific Growth Fund
(2.04%); Morgan Stanley & Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon
(1.33%); Life Insurance Corporation of India (1.34%); and, The Growth Fund of America Inc
(1.11%).

Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the
most celebrated face of the telecom sector in India. He began his journey manufacturing spare parts
for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing
new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom
equipment. His true calling came in the mid 1990s when the government opened up the sector and
allowed private players to provide telecom services.

Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's
largest telecommunications company and one of India's most respected brands. Airtel was launched
in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the
brand came to symbolize the very essence of mobile services.

10
Product

Airtel provides a host of voice and data products and services, including high-speed GPRS services.
Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans
that target different segments. A comprehensive range of value-added, customized services are part
of the unique package from Airtel. The company's products reflect a desire to constantly innovate.
Some of these are reflected in the fact that Airtel was the first to develop a 'single integrated billing
system'. Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated
telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider with an all
India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied
customers.

Established in 1976, Bharti has many joint ventures with world leaders like SingTel (Singapore
Telecom); Warburg Pincus, USA, Telia, Sweden; Asian infrastructure find, Mauritius; International
Finance Corporation, USA and New York Life International, USA. Bharti provides a range of
telecom services, which include Cellular, Basic, Internet and recently introduced National Long
Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from
being the largest manufacturer of telephone instruments in India, it is also the first company to export
its products to the USA.

Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across
India in sixteen states covering a population of over 600 million people. Airtel will soon cover the
entire country through a process of acquisitions and green field projects. With a presence in over
1,400 towns, Airtel today has the largest network capacity in the country.

An excellent example is Easy Charge - India's first paperless electronic recharging facility for
prepaid customers. As evidence of its fine record, Airtel has also been conferred with numerous
awards. It won the prestigious Techies Award for 'being the best cellular services provider' for four
consecutive years between 1997 and 2000 - a record that is still unmatched. And in 2003, it received
the Voice & Data Award for being 'India's largest cellular service provider' amongst others..

11
CORPORATE STRUCTURE

12
The Company is a part of Bharti Enterprises, and is India's leading provider of telecommunications
services. The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services.

The mobile services group provides GSM mobile services across India in 23 telecom circles, while
the B&T business group provides broadband & telephone services in 90 cities. The Enterprise
services group has two sub-units - carriers (long distance services) and services to corporate. All
these services are provided under the Airtel brand. It includes:

SERVICES OF BHARTI AIRTEL LIMITED

13
Bharti Airtel became the first private fixed-line service provider in India. It is now promoted under
the Airtel brand. Recently, the Government opened the fixed-line industry to unlimited competition.
Airtel has subsequently started providing fixed-line services in the four circles of Delhi, Haryana,
Madhya Pradesh, Karnataka, and Tamil Nadu & UP (West).

Airtel Enterprise Services, India's premium telecommunication service, brings to you a whole new
experience in telephony. From integrated telephone services for Enterprises and small business
enterprises to user-friendly plans for Broadband Internet Services (DSL), we bring innovative, cost-
effective, comprehensive and multi-product solutions to cater to all your telecom and data needs.

1. Voice - Product Portfolio

Airtel Enterprise Services telephone services go beyond basic telephony to offer our users a whole
host of Value Added Services as well as premium add-ons. Each telephone connection from Airtel
Enterprise Services is backed by a superior fibre-optic backbone for enhanced reliability and quality
telephony. Few of the Value Added Services offered are Calling Line Identification, Three Party
Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc. Airtel Enterprise Services
Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone
connection from Airtel. It’s fast, reliable and gives you unlimited Internet access.

2. Mobile Services

Airtel’s mobile footprint extends across the country in 21 telecom circles. It’s service standards
compare with the very best in the world. In fact, that’s how Bharti has managed to win the trust of
millions of customers and makes it one of the top 5 operators in the world, in terms of service and
subscriber base.

14
The company has several Firsts to its credit:

• The First to launch full roaming service on pre-paid in the country.

• The First to launch 32K SIM cards.
• The First in Asia to deploy the multi band feature in a wireless network for efficient usage of
spectrum.
• The First to deploy Voice Quality Enhancers to improve voice quality and acoustics
• The First telecom company in the world to receive the ISO 9001:2000 certification from
British Standards Institute.

15
 3. Satellite Services

Airtel Enterprise Services provides you connectivity where ever you take your business Our Satellite
Services bring you the benefits of access in remote locations. Airtel Enterprise Services is a leading
provider of broadband IP satellite services and DAMA/PAMA services in India. Our solutions
support audio, video and voice applications on demand.

Satellite Services include:

• PAMA/DAMA
• BIT - Internet
• VPN
• Satellite based IPLCs for redundancy reasons

4. Managed Data & Internet Services

Airtel Enterprise Services brings you a comprehensive suite of data technologies. So we are able to
support all types of networks and ensure that our customers can migrate their network in future
seamlessly. Our Managed Data & Internet services make our customers future proof.

Managed Data & Internet Services include:

• MPLS
• ATM
• FR
• Internet
• IPLC
• Leased Lines
• Customized Solutions
• International Managed Services
• Metro Ethernet

16
 5. Managed e-Business Services

Airtel Enterprise Services offers an internationally benchmarked, carrier class hosting, storage and
business continuity services. A range of services that help to keep your business running the way you
want- 24x7. Thanks to our world-class high tech Data Centers.

Managed e-Business Services include:

• Co-lo: Dedicated and Shared

• BCRS Services
• Web hosting

THE BRAND-“Airtel”

Airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the
day” with an ambition to become the most globally admired telecom service. Airtel, in just ten years
of operations, rose to the pinnacle to achievement and continues to lead.

As India's leading telecommunications company Airtel brand has played the role as a major catalyst
in India's reforms, contributing to its economic resurgence.

Today ‘Airtel’ touches people’s lives with the Mobile services, Telemedia services to connect India's
leading 1000+ corporates. The brand also connects Indians living in USA, UK and Canada with our
call home service.

17
VISION AND PROMISE

By 2010 Airtel will be the most admired brand in India

• Loved by more customers

• Targeted by top talent
• Benchmarked by more businesses

“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.

BHARTI’S MISSION

“To be globally admired for Telecom Services that delight customers.”

We will meet global standatds for Telecom Services that delight customers through:

• Customer service focus

• Empowered employees
• Cost efficiency
• Unified messaging solutions
• Innovative products and services
• Error-free service delivery

18
CORPORATE SOCIAL RESPONSIBILITY

Overview
At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the
stakeholders and environment within their work context. Bharti encourages employees to take
decisions and design business-linked processes that are sensitive to communities and environment.

Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach
programs. It is an integral part of the way Bharti conducts its business. The essence of Bharti’s
commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’, which stem
from its deepest held beliefs. These values are:

19
 INDUSTRY PROFILE

The telecom network in India is the fifth largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to
an estimated contribution of nearly 1% to India’s GDP.

The Indian Telecommunications network with 110.01 million connections is the fifth largest in the
world and the second largest among the emerging economies of Asia. Today, it is the fastest growing
market in the world and represents unique opportunities for U.S. companies in the stagnant global
scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250
million in 2007.

According to Broadband Policy 2004, Government of India has 9 million broadband connections and
18 million internet connections in 2007. The wireless subscriber base has jumped from 33.69 million
in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone
subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total
telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected
to bypass 2.5 million new subscribers per month by 2007.

The wireless technologies currently in use are Global System for Mobile Communications (GSM)
and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators
providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the
country.

20
Evolution of the industry-Important Milestones

History of Indian Telecommunications:

• 1851 First operational land lines were laid by the government near Calcutta (seat of British
power)
• 1881 Telephone service introduced in India
• 1883 Merger with the postal system
• 1923 Formation of Indian Radio Telegraph Company (IRT)
• 1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC)
• 1947 Nationalization of all foreign telecommunication companies to form the Posts,
Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications
• 1985 Department of Telecommunications (DOT) established, an exclusive provider of
domestic and long-distance service that would be its own regulator (separate from the postal
system)
• 1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar
Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone
Nigam Limited (MTNL) for service in metropolitan areas.
• 1997 Telecom Regulatory Authority of India created.
• 1999 Cellular Services are launched in India. New National Telecom Policy is adopted.
• 2000 DoT becomes a corporation, BSNL

21
BSNL

On October 1, 2000 the Department of Telecom Operations andGovernment of India became a

corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now India’s leading
Telecommunications Company and the largest public sector undertaking. It has a network of over 45
million lines covering 5000 towns with over 35 million telephone connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long
distance services throughout India (except Delhi and Mumbai). BSNL, which became the third
operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the
largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a
share of 21 per cent of the entire subscriber base.

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom
services, expand the telecom network, and introduce new services and to raise revenue for telecom

22
development needs of India’s key metros – Delhi and Mumbai. In the past 17 years, the company has
taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating

companies. The company has also been in the forefront of technology induction by converting 100%
of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently
holds 56.25% stake in the company. MTNL has over 5 million subscribers and 329,374 mobile
subscribers.

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate
(Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom service provider with
licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm
offers a complete range of telecom services, covering mobile and fixed line telephony including
broadband, national and international long distance services, data services and a wide range of value
added services and applications.

However, it has now acquired a unified access license for 18 circles that permits it to provide the full
range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6
million subscribers in one year to become the country’s largest mobile operator.

IDEA CELLULAR

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to
become a national player, but in doing so is likely to become a thorn in the side of Reliance
Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in Western India, and has
received additional GSM licenses to expand its network into three circles in Eastern India -- the first
phase of a major expansion plan that it intends to fund through an IPO, according to parent company
Aditya Birla Group .

23
VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 23 telecom
circles in India . Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with
good presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology,
offering voice and data services in 23 of the country's 23 license areas. It is among the top three
GSM mobile operators of India. Vodafone Essar is owned by Vodafone 52%, Essar Group, 33% and
other Indian nationals, 15%.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka
Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja
Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued
at USD 18.8 billion. The transaction closed on May 8, 2007.

24
MAJOR PLAYERS OF INDIAN TELECOMMUNICATION

25
COMPANY MARKET SHARES

26
 COMPANY MILLION SUBSCRIBERS % SHARE

(January 2009)

BSNL 3,03,03,230 19.77

Reliance 43,47,593 2.84

Bharti 4,88,75,664 31.88

MTNL 27,72,120 1.81

Vodafone 3,56,57,546 23.26

Idea Cellular 1,86,71,860 12.18

BPL 11,53,357 0.75

Spice 34,81,710 2.27

Aircel 80,39,355 5.24

MAJOR MARKET TRENDS

27
The telecoms trends in India will have a great impact on everything from the humble PC, internet,
broadband (both wireless and fixed), and cable, handset features, talking SMS, IPTV, soft switches,
and managed services to the local manufacturing and supply chain.

This report discusses key trends in the Indian telecom industry, their drivers and the major impacts of
such trends affecting mobile operators, infrastructure and handset vendors.

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four million
subscribers added every month for the past six months itself). They prefer wireless services
compared to wire-line services, which is evident from the fact that while the wireless subscriber base
has increased at 75 percent CAGR from 2001 to 2006, the wire-line subscriber base growth rate is
negligible during the same period.

In fact, many customers are returning their wire-line phones to their service providers as mobile
provides a more attractive and competitive solution. The main drivers for this trend are quick service
delivery for mobile connections, affordable pricing plans in the form of pre-paid cards and increased
purchasing power among the 18 to 40 years age group as well as sizeable middle class – a prime
market for this service.

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in done on the
basis of number of subscribers will force companies to merge so as to claim large number of
subscribers to gain more spectrum as a precursor to the launch of larger and expanded services.
However it must also be noted that this may very well never happen on account of low telecom
penetration.

INTRODUCTION

28
This report on Bharti Airtel Limited is done to find out certain objective regarding the strategic
approach Adopted by Airtel to stand strongly in the competitive telecom market. Airtel’s marketing
strategies are analyses using various models like SWOT analysis, survey etc.

The outcomes of these are properly analyzed to find out the various aspects like companies position
and competitors position in the market. This report on Airtel not just gives the description about the
company but it also talks about the various marketing strategies 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.

29
 OBJECTIVE OF THE STUDY

The objectives of the study are:

• To know that what are the marketing strategy of BHARTI AIRTEL

• To know about BHARTI AIRTEL company profile

• To make SWOT analysis of BHARTI AIRTEL

• To do a survey for marketing of BHARTI AIRTEL

The study will end with a conclusion giving a reflection of whole project and recommendations on
the basis of data findings.

30
 PURPOSE AND SCOPE OF THE STUDY

Purpose of the study

The main purpose of this study is to analyze

(i) the consumer behavior, and

(ii) Awareness

about the telecom service.

Scope of the project

This project will be very helpful to the following:

This project will be an information guide to the company for increasing the sale of products. They
will avail with the popularity of the products and services by them and also the consumer behavior
and market potential of these products.

31
 CHAPTER - II

REVIEW OF LITERATURE

32
India's first private operator to make cellular profits has an aggressive strategy in all areas of fixed
and wireless telecoms.Indian telecoms company Bharti Enterprises is undertaking a bold expansion
through a series of acquisitions, new network build and forays into the international arena. In so
doing the New Delhi-based company is aiming to become a force to compete with the government-
run Department of Telecommunications (DoT) and state-owned Mahanagar Telephone Nigam Ltd.
(MTNL).

"We would like to become a customer-driven one-stop-shop for a range of telecoms services,
including fixed-line networks, mobile, Internet access [and] VSATs [very small aperture terminals],"
said group chairman and managing director, Sunil Mittal.

Most Recent Technology Articles

33
Bharti started out in the Indian telecoms market offering cellular phone services in Delhi in 1992. Its
mobile division, Bharti Cellular, is the first private operator to make operational profits in the capital
intensive mobile phone business in India, making a net profit of around 165.8 million rupees
(US$3.8 million) in the last financial year (1998-99), and its Airtel brand, operating in Delhi and the
state of Himachal Pradesh, now has more than 175,000 customers.

"For most of India's private operators, telecoms is one of their many business interests, but for Bharti
it is the only one," said Mahesh Uppal, a New Delhi-based independent telecoms consultant.This
focused approach and some aggressive marketing have helped it grow its user base, According to
Mittal the company is adding "about 10,000 cellphone subscribers per month in Delhi."

34
Sanjay Kapur, chief operating officer of Bharti Cellular Ltd., said Airtel is offering Web-based short
messaging services--such as e-mail alerts and news--and has linked up with financial institutions
ICICI Ltd. and Housing Development Finance Corporation Ltd. to offer banking services over its
mobile phones.Meanwhile parent company Bharti Enterprises has been raising funds for acquisitions
by selling equity stakes in its holding companies--including Bharti Televentures, which has stakes in
the cellular interests, and Bharti Telespatial, the holding company for Bharti's foray into Internet
access and VSAT services-to strategic investors, including Intel Corp., BT, Telecom Italia and
Warbur Pincus.

The funds have enabled Bharti Cellular to make a strategic entry into southern India. Last December
it acquired an 18% stake in JT Mobile (JTM) for Rs4 billion (US$93 million), and a 51% stake in
Skycell for Rs1.2 billion.Now with a combined subscriber strength of around 245,000, Bharti is
closing in on India's largest cellular operator, BPL Mobile, which has some 267,000
subscribers.According to the Cellular Operators Association of India (COAI), the total number of
subscribers in India is currently 1.6 million.

"Bharti's buyout of stakes in JTM and Skycell is a vote of confidence in the [government's] new
telecom policy, but it has to turn its purchases into profitable businesses," said T.H. Chowdhry,

director, Centre for Telecom Management & Studies, in Hyderabad. "The company is moving in the
right direction and will be a real competitor to DOT/MTNL," he added.

With these acquisitions the company's fixed and cellular footprint extends from north and central
India to south India and would give the company a major competitive edge for operating national
long-distance services.To this end, Bharti is laying around 18,000 kilometers of optical fiber network
and leasing more from infrastructure providers. The first phase to lay some 3,800 kilometers of fiber
will begin this month.

35
The project is scheduled to be completed by June 2001, and the total cost will be around Rs2O
billion (US$465 million).Long-distance building the domestic fixed-line long-distance market,
currently monopolized by the DoT, and is scheduled to be opened to competition in the near future.
The government has yet to take a decision on the timing, but analysts agree that licenses will be
given to operators for basic inter-state services by the end of the year.Meanwhile, VSNL has the
monopoly on international long-distance services until 2001.

Bharti started offering fixed-line network services in the state of Madhya Pradesh in 1998, competing
with state-owned DoT, and has already garnered around 70,000 subscribers, It is the first Indian
private operator to offer alternative services in the state, and in many other states the DoT remains
the sole provider, with the 1999 telecoms policy to establish competition still not fully implemented.
Although licenses have been issued in 7 of the 22 states in India, not all the private operators have
begun offering fixed-line services.

Bharti was also the first Indian company to offer telecoms services abroad. In October 1999 it was
awarded a license to provide a range of domestic and international mobile, fixed and satellite
services in the Seychelles, through subsidiary Bharti Global. It aggressively positioned its tariffs 50%
lower than those of competitor Cable and Wireless plc, of London, forcing it to reduce its cellphone
tariffs.

AIRTEL CURRENT PLANS AND PRODUCTS

AIRTEL PLAN AIRTEL SUPER 199 AIRTEL MAGIC 199

Monthly Rent 199 199
Free Airtime per month N.A. 199 mins A2M Local
Incoming Call Free Free

36
Within the group-CUG 0.10 Pay Rs. 30/- & get CUG @ 10 p
Outgoing Calls- Local Per Min Per Min
Airtel to Airtel 0.3 0.5
Airtel to Local 0.5 0.5
Airtel to Landline 1 1
Outgoing Calls- STD Per Min Per Min
Airtel to Airtel 1 1
Airtel to Local 1 1
Airtel to Landline 1.32 1.5
SMS Per SMS Per SMS
Lcal SMS 0.5 1
National SMS 1.5 1.5
International SMS 5 5
Local Free SMS N.A. N.A.
STD Toppings N.A. N.A.
Roaming Charges AT ACTUAL AT ACTUAL
CLIP CHARGES FOC FOC

AIRTEL PLAN AIRTEL MAGIC 299 AIRTEL 444

Monthly Rent 299 444
Free Airtime per month 600 mins A2M Local LOCAL & STD 444 Min (A2M)
Incoming Call Free Free
Within the group-CUG 0.10 Pay Rs. 30/- & get CUG @ 10 p
Outgoing Calls- Local Per Min Per Min
Airtel to Airtel 0.3 0.5
Airtel to Local 0.3 0.5
Airtel to Landline 0.5 0.5
Outgoing Calls- STD Per Min Per Min
Airtel to Airtel 1 1
Airtel to Local 1 1
Airtel to Landline 1.5 1
SMS Per SMS Per SMS
Lcal SMS 1 0.5
National SMS 1.5 1.5
International SMS 5 5
Local Free SMS N.A. 444 Local SMS Free

37
 STD Toppings N.A. N.A.
Roaming Charges AT ACTUAL AT ACTUAL
CLIP CHARGES FOC FOC

AIRTEL PLAN New AES 699- Advance

Rental 699 (12 Months)
Monthly Rent 58.25(Effective)
Free Airtime per month N.A.
Incoming Call Free
Within the group-CUG Get 500 mins free in CUG
thereafter @ 10 p
Outgoing Calls- Local Per Min
Airtel to Airtel 0.5
Airtel to Local 0.5
Airtel to Landline 0.5
Outgoing Calls- STD Per Min
Airtel to Airtel 1.5
Airtel to Local 1.5
Airtel to Landline 1.5
SMS Per SMS
Lcal SMS 1
National SMS 1.5
International SMS 5
Local Free SMS 50 SMS Free
STD Toppings Pay Rs. 35/- & get Airtel to all
STD @Rs. 1 per min
Roaming Charges AT ACTUAL
CLIP CHARGES FOC

38
 CHAPTER - III

CURRENT SCENARIO

1.1 SWOT ANALYSIS

1.1.1 STRENGTHS
1.1.2 WEAKNESSES
1.1.3 OPPORTUNITIES
1.1.4 THREATS

39
 SWOT ANALYSIS OF BHARTI AIRTEL LIMITED

Strengths

1. Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular
provider in India, and also supplies broadband and telephone services - as well as many
other telecommunications services to both domestic and corporate customers.
2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with
whom they hold a strategic alliance. This means that the business has access to
knowledge and technology from other parts of the telecommunications world.

40
 3. The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.

Weaknesses

1. An often cited original weakness is that when the business was started by Sunil Bharti Mittal
over 15 years ago, the business has little knowledge and experience of how a cellular
telephone system actually worked. So the start-up business had to outsource to industry
experts in the field.
2. Until recently Airtel did not own its own towers, which was a particular strength of some of
its competitors such as Hutchison Essar. Towers are important if your company wishes to
provide wide coverage nationally.
3. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the
lack of any real emerging market investment opportunity for the business once the Indian
market has become mature.

Opportunities

1. The company possesses a customized version of the Google search engine which will
enhance broadband services to customers. The tie-up with Google can only enhance the
Airtel brand, and also provides advertising opportunities in Indian for Google.
2. Global telecommunications and new technology brands see Airtel as a key strategic player in
the Indian market. The new iPhone will be launched in India via an Airtel distributorship.
Another strategic partnership is held with BlackBerry Wireless Solutions.
3. Despite being forced to outsource much of its technical operations in the early days, this
allowed Airtel to work from its own blank sheet of paper, and to question industry
approaches and practices - for example replacing the Revenue-Per-Customer model with a

41
 Revenue-Per-Minute model which is better suited to India, as the company moved into small
and remote villages and towns.

4. The company is investing in its operation in 120,000 to 160,000 small villages every year. It
sees that less well-off consumers may only be able to afford a few tens of Rupees per call,
and also so that the business benefits are scalable - using its 'Matchbox' strategy.
5. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to
create a new independent tower company called Indus Towers. This new business will
control more than 60% of India's network towers. IPTV is another potential new service that
could underpin the company's long-term strategy.

Threats

1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a
5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival
Hutchison Essar. Knowledge and technology previously available to Airtel now moves into
the hands of one of its competitors.
2. The quickly changing pace of the global telecommunications industry could tempt Airtel to
go along the acquisition trail which may make it vulnerable if the world goes into recession.
Perhaps this was an impact upon the decision not to proceed with talks about the potential
purchase of South Africa's MTN in May 2008. This opened the door for talks between
Reliance Communication's Anil Ambani and MTN, allowing a competing Indian industrialist
to invest in the new emerging African telecommunications market.
3. Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.

42
 CHAPTER -IV

RESEARCH
METHODOLOGY

1.1 RESEARCH DESIGN

1.2 TYPE OF DATA COLECTED
1.3 RESEARCH TOOL
1.4 DATA COLLECTION
1.5 SAMPLE SIZE
1.6 PRESENTATION TOOL

43
1.7 LIMITATIONS AND CONSTRAINTS
1.8 DATA ANALYSIS AND INTERPRETATION

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without a proper well-organized
research plan, it is impossible to complete the project and reach to any conclusion. The project was
based on the survey plan. The main objective of survey was to collect appropriate data, which work
as a base for drawing conclusion and getting result.

RESEARCH DESIGN

Descriptive Research:

The type of research adopted for study is Descriptive. Descriptive studies are undertaken in many
circumstances when the researches is interested to know the characteristic of certain group such as
age, sex, education level, occupation or income. The objective of such study is to answer the “who,
what, when, where and how” of the subject under investigation. There is a general feeling that
descriptive studies are factual, very simple and well structured.

TYPE OF DATA COLLECTED: There are two types of data used. They are primary and
secondary data. Primary data is defined as data that is collected from original sources for a specific
purpose. Secondary data is data collected from indirect sources.

RESEARCH TOOL- QUESTIONNAIRE: This is the most popular tool for the data collection.
Various customers using Airtel connection were approached and asked to fill the questionnaire
designed which is attached in the report.

DATA COLLECTION: The data collection is done through random sampling.

SAMPLE SIZE: The sample size for customer profile is 300.

44
PRESENTATION TOOL: Bar Diagrams and Pie Charts have been used for presenting the results
of survey.

LIMITATIONS AND CONSTRAINTS

1. Slow pace of the reform process.

2. It would be difficult to make in-roads into the semi-rural and rural areas because of the lack
of infrastructure. The service providers have to incur a huge initial fixed cost to make inroads
into this market. Achieving break-even under these circumstances may prove to be difficult.
3. The sector requires players with huge financial resources due to the above mentioned
constraint. Upfront entry fees and bank guarantees represent a sizeable share of initial
investments. While the criteria are important, it tends to support the existing big and older
players. Financing these requirements require a little more liberal approach from the policy
side.
4. Problem of limited spectrum availability and the issue of interconnection charges between the
private and state operators.

45
 DATA ANALYSIS AND INTERPRETATION

PLANTAKENBY CUSTOMERS
140

120

100

80

60

40

20

0
299 249 399 Others
PLANS

NOOFCUSTOMERS

PLAN NO. OF CUSTOMER

1 My plan 299 60
2 249 delight 30
3 Super Saver 399 120
4 Others 90

In my study I found that most of the customers (40%) having Supersaver – 399 plan. My plan 299 -
(20%), 249 delight- (10%) & others (30%) It is shown in the above bar diagram.

46
 MODE OF PAYMENT NUMBER OF CUSTOMER
1 Cash 135
2 Credit Card 105
3 Cheque 54
4 Internet Banking 6

In my survey I observed that most of the customers paid their bill through cash (45%) & credit cards
(35%) respectively. And the rest pay it through cheque (18%) & Internet banking (2%).

47
 Toppingstaken bycustomers
Others
5%

Local SMSpack
20%

Local Mobilepack
10%
STDpack
65%

TOPPING CUSTOMER PERCENTAGE

1 STD Pack 195 65%
2 Local SMS Pack 60 20%
3 Local Mobile Pack 30 10%
4 Others 15 5%

In my survey I found that most of the customers have taken STD pack (65%). It is shown in the
above pie diagram.

48
 CUSTOMER'SPROBLEM TOWARDSPOSTPAID
CONNECTION
250

200

150

100

50

0
Bill Payment NeverGetbill ontime WronglyCharged NeverGetbill

NOOFCUSTOMERS

PROBLEM TOWARDS POSTPAID

PROBLEM CUSTOMER
1 Bill Payment 210
2 Never Get Bill on Time 60
3 Wrongly Charged 21
4 Never Get Bill 9

In my survey I found that most of the customers (70%) have faced their Problems towards bill
payment in counter. 20%, 7% & 3% are those who Never receive bill on time, wrongly charged &
never get the bill.

49
 BILL PAYMENT SYSTEM USED BY
CUSTOMER

20%

30%
50%

Airtel Relationship Center

E-seva
Drop Box

BILL PAYMENT SYSTEM USED BY CUSTOMER

Airtel Relationship Center 150

E-seva 90
Drop Box 60

50 % customer are using airtel relationship centre for bill payment and 30 % using e-seva
while 20 % customer are usiing drop box.

50
 Unsatisfied OVERALLSATISFACTION
5%

Excellent
Average
25%
20%

Good
50%

SATISFACTION LEVEL CUSTOMER PERCENTAGE

1 Excellent 75 25%
2 Good 150 50%
3 Average 60 20%
4 Unsatisfied 15 5%

In my survey I found that most of the customer’s view towards Airtel Post paid connections &
toppings are Good (50%) & Excellent (25%). But Airtel must take care towards unsatisfied
customers (5%), if they want to stay at top.

51
 CONSISTENCY LEVEL OF CUSTOMER

Lessthan 6
Months 6monthsto 1
5% year
10%

Morethan 2years
50%
1to 2years
35%

CONSISTANCY LEVEL CUSTOMER PERCENTAGE

1 More Than 2 Years 150 50%
2 1 to 2 Years 115 35%
3 6 Months to 1 Year 30 10%
4 Less Than 6 Months 15 5%

In my survey I observed that (50%) of the customers are constantly buying Post paid connections for
the past two years, 35% between 1to2 years, 10% between 6months to 1 year and 5% less than 6
months. The survey indicates good consistency level & commitment of the customers.

52
 CHAPTER – V

DISCUSSIONS & FINDINGS

OF THE STUDY

1.1 FINDINGS OF THE STUDY

1.2 SUGGESTIONS AND RECOMMENDATIONS
1.3 ANNEXURE
1.4 BIBLIOGRAPHY AND REFERANCES

FINDINGS OF THE STUDY

53
 1. Customers are satisfied with various plans.
2. It was observed that most of the customers expressed their unhappiness over billing
services. Either they were wrongly charged or they never received bills on time.
3. Senior citizens are very particular about rentals.
4. Through my survey, I came to know that most of the customers are satisfied with our
plans and toppings.
5. Through my survey I observed that most of the customers are using STD pack.
6. I observed that most of the customers are using supersaver-399 plan.
7. I observed that most of the customers like Airtel advertisement and punch-line.

SUGGESTIONS AND RECOMMENDATIONS

1. To ensure better customer satisfaction & maintain higher level of Customer relationship
management, the billing department has to be more effective & efficient.
2. To retain existing customers means offering the best scheme. This would automatically
attract new customers. Airtel need not spend on advertisement to attract new customers.
3. Airtel should continue to offer the best toppings to stay at the top.
4. There should be no compromise in quality and the network facility.

54
ANNEXURE

55
 QUESTIONNAIRE

(A) Customer Name :

(B) Age :

(C) Mobile No. :

(D) Occupation :

Self Employed [ ]

Government Employee [ ]

Non Government Employee [ ]

Student [ ]

Others [ ]

(E) Income per month : Less than Rs 5,000 [ ]

Rs 5001 to 10,000 [ ]

Rs 10,001 to Rs 20,000 [ ]

Above Rs 20,000 [ ]

1. Which plan you are using?

(a) My plan-299 (b) 249 Delight

56
 (c) Supersaver-399 (d) Others

2. How you pay your bill?

(a) By Cash (b) By Cheque

(c) By Credit card (d) By Internet Banking

3. What kind of Toppings are preferred by customers?

(a) STD Pack (b) Local SMS Pack

(c) Local Mobile Pack (d) Others

4. Which type of problem you are facing in postpaid connection?

(a) Bill payment (b) Never get bill on time

(c) Wrongly charged (d) never get bill

5. Mostly where do you pay your bill?

(a) Airtel Relationship Center (b) E-seva

(c) Drop Box

6. Are you satisfied with Airtel call center executives?

(a) Excellent (b) Good

(c) Satisfied (d) Unsatisfied

7. How long have you been using Airtel postpaid connection?

(a) Less than 6 Months (b) 6 months to 1 year

57
 (c) 1 to 2 years (d) More than 2 years

BIBLIOGRAPHY

1. Books:
a. Marketing management: analysis, planning, implementation, and control by

Philip Kotler - Business & Economics - 1988

2. Internet Sites:
a. www.wikipedia.org
b. www.google.com
c. www.airtel.in
3. Other sources

a. Marketing Manual of ‘Bharti Airtel Limited’

58