INDEX

Executive Summary Chapter 1 : Introduction to the study Objective o the project !ypothesis "esearch methodo#o$y Chapter 2 : Introduction o %irte# ' (oda one 1& 2

Chapter )

"evie* o the #iterature

+,

Chapter -

%na#ysis o the project Observations ' indin$s .imitations

+2

Chapter /

Conc#usions ' Su$$estions

+&

%ppendix

0ib#io$raphy

Chapter 1 Executive summary

The topic of the Project is comparative analysis of marketing strategy of Vodafone and airtel. I have chosen this topic just because I wanted to know which company is better in providing service.

My objectives are to know which company is better. To know the uses of telecommunication

Taking this into mind I conducted an online research where I made the questionnaire on the college. oogle doc and sent to the all my college as well as the students of other

I collected !""# responses. $s if my sample si%e was !""& I had to select only !"" students all across Mumbai.

I started the analysis work by making the tabulation form and then collectively forming it in a right way.

$fter that I started making the analysis that how many students said yes or no. $nd side by side I noted down on a piece of paper and came up with the conclusion. 'anted to choose such a topic on which research is possible. The first step was of selecting the topic. My friends suggested me some topics for research. I came to a conclusion to choose the above mentioned topic. This topic was suggested by my elder brother. The reason why I have chose this topic is because of the following reasons(

O01EC2I(E O3 2!E S24D5

)very organi%ation has to achieve its

organi%ation

goals. *or

this

it

is

very essential for an organi%ation to know about the view of consumers and their competitive products. This survey research may be also aimed as to estimate potential buyer for the product. The objective of the study is as under(+ ,. To identify the difference between market performance of $irtel industry and Vodafone. !. To study the market of $irtel Industry and Vodafone on big scale telecommunication sector.

-. To

compare

various

parameters

of

marketing

strategies&

manufacturing process technology adopted production policy& advertising& collaboration& e.port scenario& future prospect f or the tw o companies and government policies. /. To study customer buying behavior and factors which influence

the purchase decision process.

0. To know how the company has been successful in encountering the aggressive marketing strategies of competitors.

!ypothesis

The *ollowing hypothesis were framed. 1ypothesis ,(Than ,!0 million telephones network is one of a blistering pace. 1ypothesis !(. 2urrently more than -" lakh phones are being added each month and it is targeted that by the end of !""3 the total number of phones may reach a level of-0" million taking the tele+density to more than -"4 which is currently at !/.5-4. the

largest communication networks in world& which continues to grow at

6E2!OD O3 CO..EC2ION *ield procedure for gathering primary data included interviews data& observation and through self

interview schedule in which the questionnaires were filed by the personal administered survey was done to collect was undertaken& that designed. "ESE%"C! INS2"46EN2 6uestionnaire 2he 7uestionnaire *as ormu#ated by 8eep in mind the o##o*in$ points. iving the respondents clear comprehension of the question. the market research

was accomplished by performing various activities

Identifying the needs to be known.

% brie history o 2e#e sector in India In the early ,77"s& the Indian government adopted a new economic policy aimed at improving India8s competitiveness in the global markets and the rapid growth of e.ports. 9ey to achieving these goals was a world+class telecom infrastructure. In India& the telecom service areas are divided into four metros :;ew <elhi& Mumbai& 2hennai and 9olkata= and !" circles& which roughly correspond to the states in India. The circles are further classified under >$&> >?> and >2&> with the >$> circle being the most attractive and >2> being the least attractive. The regulatory body at that time @ the <epartment of Telecommunications :<AT= @ allocated two cellular licenses for each metro and circle. Thirty+four licenses for BM7"" cellular services were auctioned to !! firms in ,770. The first cellular service was provided by& Modi Telstra in 9olkata in $ugust ,770. *or the auction& it was stipulated that no firm can win in more than one metro& three circles or both. The circles of Cammu and 9ashmir and $ndaman and ;icobar had no bidders& while 'est ?engal and $ssam had only one bidder each. In ,775& the Telecom Degulatory $uthority of India :TD$I= bill was introduced in the Eok Babha and the president officially announced the TD$I ordinance on !0 Canuary ,77F. The government decided to set up TD$I to separate regulatory functions from policy formulation& licensing and telecom operations. Prior to the creation of TD$I& these functions were the sole responsibility of the <AT. 1igh license fees and e.cessive bids for the cellular licenses put tremendous financial burden on the operators& diverting funds away from network development and enhancements. $s a result& by,777 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March ,777& a new telecom policy was put in place :;ew Telecom Policy
6

G;TPH ,777=. Inder this new policy& the old fi.ed+ licensing regime was to be replaced by a revenue+ sharing scheme whereby between 3+,! percent of cellular revenue were to be paid to the government. INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION Indian 2ellular market immediately after the first round of licensing in

,77/+75 was beset by several problems for - + / years till the ;ew Telecom Policy,777 was announced. Bome of these roadblocks J current position is tabulated below(

"O%D0.OC9S

C4""EN2 :OSI2ION High license fees Migration to revenue sharing mode in ,777 mitigates high initial fund requirements for payment of license fees. Inadequately funded businesses J weak and fragmented promoters. ?usinesses that have since been adequately funded growing at over 5"4 per annum& while businesses with weak promoters continuing to languish + spate of acquisitions J mergers& with /J0 major groups emerging in the last oneJtwo years.

Regulatory authority not in place Telecom Degulatory $uthority of India :TD$I= firmly in place& and its role being accepted by all operatorsK <eptt of Telecommunications :<AT= restructured& with operations and policy making roles vested in different bodies. Issues relating to unfavorable interconnect terms for private operators& pass through income& intra circle long distance& spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationali%ed& risks on pass through income to <AT J ?1$DTI Mahanagar Telecom ;igam Etd.= resolved to the satisfaction of all parties with changes in methodology J revenue sharing& intra circle long distance allowed& spectrum availability cleared with vacation of frequencies for usage by BM operators.

Problems in Financial clos res ! e "o# Eicensing tenure of ," years Earge upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment $sset based financing approach by Indian *inancial Institutions. Eicensing tenure increased from ," to !" years Earge upfront cash requirements for license fee payments mitigated with migration institutions. Forei$n o%ners&i' ( c&an$e o) 'ar"ner limi"a"ions ownership norms clarified& and change of partners allowed as a matter of routine allowin ease of entry J e.it + paves the way for full control of businesses by foreign companies. Inadequate growth of market J subscribers Doadblocks spelt out earlier resulted in growth& but with e.pected to %oom. low market J subscriber to sharing mode allowing promoters to deploy more capital for capital e.penditureK project financing being considered by most financial

corrective measures taken& market J subscriber base

*+* DE,ELOPMENTS IN THE CELLULAR INDUSTR-

The interconnection regime between cellular operators and fi.ed+line operators is still biased against the former. <espite the recent gains of the cellular industry& not everything is rosy. The cellular penetration rate is still very low at ".3 percent in a nation of over one billion people. In recent years& many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In ,777 alone& Bwisscom pulled out from Bterling 2ellular& Telstra from Modi Telstra and both the Telecom Argani%ation of Thailand and Casmine International from CT Mobile. In !"""& Telecom Malaysia sold its stake in Isha Martin Telecom& and both Bhinawatra of Thailand and ?e%eq e.ited from *ascel. In Cune !"", ?ritish Telecom e.ited from ?harti 2ellular. ?ell Bouth International has also indicated its intention to pull out from Bkycell 2ommunications& and 1ong 9ong+based <istacom is seeking to sell its stake in Bpice 2ommunications. *irst PacificLs :based in 1ong 9ong= continued commitment to )scotel is uncertain& and the former is reviewing various options. The string of sell+outs notwithstanding& there has been a merger and

acquisition wave sweeping across the Indian cellular industry in recent years. 1ong 9ong+based 1utchison 'hampoa& via 1utchison :19=& acquired major stakes in Bterling Telecommunications :<ecember,777=& 2ellular

Isha Martin Telecom :mid+!"""= and *ascel :Beptember !"""=. Through a partnership with local company& 9otak Mahindra *inance& 1utchison 'hampoa practically controls operators. 1utchison 'hampoa *ascel and Isha Martin Telecom& thus is also the controlling shareholder of circumventing the /7 percent limit on foreign ownership in Indian cellular 1utchison Ma. Telecom. ;ot to be outdone& ?harti )nterprises @ another major cellular player @ acquired Telecom. ;ot to be outdone& ?harti
10

)nterprises @ another major cellular player @ acquired. 2ommunications renamed ?harti Mobinet :$ugust !"""=. ?harti also acquired the Punjab license of )ssar and started operations& giving competition to the lone operator there& Bpice 2ommunications. oing forward& ?harti is likely to merge all its cellular companies into one entity. *ive companies together bid Ds,5.- billion to bag the licenses for the fourth operator slots in four metros and ,- circles. ?harti emerged as the ;o. , bidder with eight new licenses& followed by )scotel with four& 1utchison with three& and Vodafone and Idea cellular with one each. ?harti and 1utchison have already commenced operations in all the circles while Idea is set to launch in <elhi. )scotel and Vodafone have not made any headway ?1$DTI& the third cellular operator for <elhi and Mumbai& started services in March !"",. ?B;E as the third nationwide cellular operator& launched services in 9olkatta and ?ihar in Canuary !""!. This was followed by Tamil ;adu in Culy !""!. $ nationwide launch was scheduled for ! Actober!""!. 1owever& this has been postponed until after mid Actober. Ance ?B;E rolls out its service& most telecom circles will have four cellular operators. There will be tremendous competitive pressure& which will result in lower tariffs. *uture rate cuts are e.pected& which will drive demand together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks& ?harti came out with its long+awaited initial public offering :IPA= in Canuary !""!. Eeveraging on the success of its cellular service& the company got a very good response from the primary market. The total si%e of the IPA was ,30 million shares at a floor price of D s,". The issue was oversubscribed by more than !.0 timesnetting Ds3.- billion. This will be used to fuel its investment in long+ distance& basic and cellular services. $s of Actober !""!& only ?PE Mobile has launched commercial general packet radio service: PDB= in Mumbai. 1owever& large+scale uptake remains elusive. 'hile both ?harti and Idea have PDB+enabled networks& there is caution on their part to launch the service. 'ith hardly any applications& the
11

success of

PDB remains a question.

In !""0 1utchison )ssar an Indian and hongkong telecommunication alliance was taken over by the Inited 9ingdom based telecommunication company name Vodafone telecomm services and comes with the name of Vodafone essar. Virgin mobile comes in Indian Territory with the alliance of T$T$ telecommunication Maharashtra in !""3. Mitsubishi a Capanese telecomm services :MTB= company comes in India in !""7 and take over B il!in$ .isibili"/ an! a%areness <eviating from competing on the price platform& cellular operators are actively promoting their brand advertising and and service portfolio through high+visibility promotional campaigns. 2ellular operators like ?harti&

Arange and ?PE Mobile have been advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility. 2ustomer+focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Arange in Mumbai offers >Arange 1olidays> and>Arange Monsoon Affers> at very attractive rates and added benefits like discounts on airfare& food and beverages& among others. Athers offer special privileges in retail outlets& cinemas and music shops.

En"er'rise mobile a''lica"ions 0 'romisin$ re.en e s"ream $ll along& customer acquisition and the top line have been the focus. *ew operators have concentrated on offering differentiated services
12

for businesses. 1owever& as operators reali%e that offering basic voice and Bhort Message Bervice :BMB= provisioning superior services. 2ost+centered solutions like closed user group :2I =& value+adds like unified messaging and instant alerts are being offered. $ variety of mobile applications are finding takers among the enterprise segment. ?harti is in the process or buses by tracking movement of introducing a facility to fleet management companies so that they can improve the efficiency of trucks and ensuring higher+use& accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. 2orporations can choose enhanced services like user+defined call routing to prevent misuse. 2alls can be barred& limiting access to select numbers and diverting calls to one single number. ?roadcasting services are also quite popular& especially among fast food centers that have a central number. roup BMB is quite popular& especially among enterprises both in the roup BMB is quite popular& especially among roup BMB is quite popular& service as well as number. will get them the numbers but not the margins& some are now seriously looking at the enterprise segment for

enterprises both in the service as well as number. consumer goods

especially among enterprises both in the service as well as the fast+moving :*M2 = segment that have a large field force and need to provide regular updates on inventory status& discount schemes and movement of goods from warehouse to the retail outlet. ?anks too find bulk BMB service very useful to forward transactional alerts to their customer

13

*+1 FUTURE TRENDS AND DE,ELOPMENT

There will be more competition& forcing operators to constantly focus on differentiations to maintain their lead.

The implementation of and differentiate better.

enhanced networks like !.0

will enable

operators to offer data services. This is an opportunity to customi%e

The entry of state+run operators like ?B;E and ?1$DTI means that prices will no longer be controlled& thus there is less chance of a cartel being formed.

;etwork coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. The bigger the service providerLs national presence& the better it is for businesses. An the roaming front& signing up with a national operator is advantage

Eimited mobility wireless in local+loop services :by fi.ed network service providers= will be a disadvantage for cellular operators in the short term. 2onsequently& operators need to streamline their customer relation activities and adopt strategies aggressive subscriber acquisition and retention

14

*+2 RE3ULATOR- ISSUES The operations of this sector are determined as under the Indian

Telegraph $ct of ,330. $ document buried in the sands of time. The ne.t major policy document& which was produced& was ;ational Telecom Policy of ,77/& a consequence of the on going process of liberali%ation. 5ear Event

,30, *irst telephones in India

,7/- ;ationali%ation of telephone companies ,730 <AT was created ,735 2reation of ?1$DTI and VB;E

,77, Telecom equipment liberali%ed

,77/ Eicenses for paging ,77/ Telecom policy announced Beptember ,77/ uidelines for private sector participation in basic services

;ovember ,77/ 2ellular licenses issued for metros <ecember ,77/ Tenders for cellular licenses in ,7 cities apart from / metros Canuary ,770 Tenders for !nd operator in basic services apart from <AT on circle basis

15

$ugust ,770 VB;E launches Internet services Canuary ,775 TD$I formed ;ovember ,773 Internet policy announced

The ;ational Telecom Policy of ,77/ document& which laid out broad policy guidelines rather than a series of action points. Eike other policies& it sought to achieve the impossible in finite time like improve quality of service and its availability& wide coverage :a phone in every village=& at reasonable rates& etc. The targets in quantifiable terms were installation of 7.0mn additional lines& telephone on demand by ,77F& and a P2A pop of 0"". The )ighth Plan had also allowed private operators in value added services. To facilitate licensing& the nation was divided into !" circles:akin to a state= for basic and !, circles for cellular telephony. Mumbai falls in Maharashtra circle and <elhi in itself a circle. The basic premise on which competition has been introduced is that every circle will have one private operator apart from <oTJ ?1$DTI for basic and two operators for cellular. <oTJ ?1$DTI have the option to become the third cellular operator in future. overnment did not achieve most of its stated targets. The basic theme& which was broadening the reach of telephony in India& has not been met. )ven liberali%ation policies were not implemented properly. The regulator TD$I was set up after delays and confusion and even after its creation <oT continued to fight with it in courts. It was also affected by the resource crunch& and financing options like ?AT& ?AAT and ?AET was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention& though noble failed to achieve its goals because of improper implementation& the economic costs are still borne by the end user.

16

The telecom sector was completely

has witnessed some fundamental structural and in ,77,. Value+added services :including

institutional reforms in the past decade. Telecom equipment manufacturing deregulated cellular services= were thrown open to private sector participation in ,77!. ?asic services were opened to private participation in ,77/ by dividing the country into !, telecom 2ircles and allowing one private operator per 2ircle to compete with <AT. $n independent telecom regulatory $uthority of India was set up in ,77F. $ new Policy for Internet Bervice Policy Providers :IBPs= providers to enter Deorgani%ation of was announced in ,773 allowing independent service the sector ending <AT& the earlier monopoly of VB;E. separating policymaking function and service

provision and corporati%ation of <ATLs operational network are two major institutional reforms& which need to be implemented.

Scope o the study

To conduct this

research the target population was BM technology.

the mobile

users& 'ho are using

Targeted geographic area of <elhiJ ;2D. Bample si%e of 0" persons was taken.

To these 0" people a questionnaire was given& the questionnaire was a combination of both open ended and closed ended questions. The date during which questionnaires were filled. Bome dealers were also interviewed to know their Interviews with the managers of conducted. prospective.

BM service providers were also

*inally the collected data and information was analy%ed and compiled to arrive at the conclusion and recommendations given.

17

Sources o secondary data M Internet M Maga%ines M Cournals M ?harti 2irculars Btore M Vodafone Btore M Vodafone Ministore

18

2hapter ! Introduction Af the Topic

The project is an e.tensive report on how the $irtel 2ompany markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products. The report begins with the history introduction manufacturing of the $irtel process& 2ompany. technology& This of the report pr oducts and the also contains policy& the

basic marketing strategies that are used by the $irtel 2ompany of production advertising& collaboration& e.port scenario& future prospect and government policies. The report includes some of the key salient features of marketer end issues. In today8 s world of cutthroat fierce competition& it is very essential to not only e.ist but also to e.cel in the market. Today8s market is enormously more comple.. 1ence forth to s ur vive in the market& the company not only needs to ma.imi%e its profit but also needs to satisfy its customers and should try to build upon from there.

19

%I"2E. Company pro i#e %I"2E. is a brand of telecommunication services in India operated by ?harti $irtel. $irtel is the largest cellular service provider in India in terms of number subscribers. ?harti $irtel owns the $irtel brand and provides the following sevices under the brand name $irtel( Mobile Bervices :using Technology=& ?roadbandN Telephone Bervices :*i.ed line& BM Internet

2onnectivity:<BE= and Eeased Eine=& Eong <istance Bervices and )nterprise Bervices :Telecommunications 2onsulting for corporates=. It has presence in *ocus on satisfying and retaining customers by ensuring high level of customer satisfactionK Eeverage strengths of its strategic and financial partnersK and )mphasi%e on human resource development to achieve operational efficiencies. all !- circles of the country and covers F,4 of the current population :as of *O"F.Eeading international telecommunication companies such as Vodafone and BingTel held partial stakes in ?harti $irte. (ision >$s we spread wings to e.pand our capabilities and e.plore new hori%ons& the fundamental focus remains unchanged( seek out the best technology in the world and put it at the service of our ultimate user( our customer.> These are the premise on which ?harti )nterprises has based its entire plan of action. ?harti )nterprises has been at the forefront of technology and has revolutioni%ed telecommunications with its world+class products and services.

20

in ,730& ?harti has been a pioneering force in the telecom sector. 'ith many firsts and innovations to its credit& ranging from being the first mobile service in <elhi& first private basic telephone service provider in the country& first Indian company to provide comprehensive telecom services outside India in Beychelles and first private sector service provider to launch ;ational Eong <istance Bervices in India. ?harti had appro.imately -.!, million total customers P nearly!.33 million mobile and --/&""" fi.ed line customers. Its services Pradesh& sector businesses <elhi& include mobile ujarat& 1aryana& operations in $ndhra 1imachal Pradesh& 2hennai&

9arnataka& 9erala& 9olkata& Madhya Pradesh circle Maharashtra circle& Mumbai& Punjab& Tamil ;adu and Ittar Pradesh :'est= circle. In addition& it also has fi.ed+line operations in the states of broadband and long distance networks. ?harti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of IndiaLs mobile networks. The 2ompany is also implementing a submarine cable project connecting 2hennai+ Bingapore for providing international bandwidth. Madhya Pradesh and 2hhattisgarh& 1aryana& <elhi 9arnataka and Tamil ;adu and nationwide

?harti )nterprises also manufactures and e.ports telephone terminals and cordless phones. $part from being the largest manufacturer of IB$. ?harti Tele+VenturesL strategic objective is Qto capitali%e on the growth telephone instruments& it is also the first telecom company to e.port its products to the

opportunities that the 2ompany believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India with a focus on providing mobile servicesR.

21

The 2ompany has developed the following strategies to achieve its strategic objective

*ocus on ma.imi%ing revenues and marginsK

2apture ma.imum

telecommunications

revenue

potential

with

minimum geographical coverageK Affer multiple telecommunications services to provide customers with a >one+ stop shop> solutionK Position itself to tap data transmission opportunities and offer

advanced mobile data servicesK *ocus on satisfying and retaining customers by ensuring high level of customerK satisfactionK Eeverage strengths of its strategic and financial partnersK

andS.)mphasi%e on human resource development to achieve operational efficiencies.

22

0usinesses

?harti Tele+Ventures current businesses include Mobile services

*i.ed+line

;ational and international long distance services

VB$T& Internet services and network solutions

?roadband services with <BE and 'i+*i network

Competitive Stren$ths ?harti Tele+Ventures believes that the following elements will contribute to the 2ompanyLs success as an integrated telecommunication services provider in India and will provide the 2ompany with a solid foundation to e.ecute its business strategy a solid foundation to e.ecute its business strategy ;ationwide *ootprint + appro.imately 7!4 of IndiaLs total mobile subscribers resided in the 2ompanyLs of IndiaLs land mass. fifteen mobile circles. These ,0 circles collectively accounted for appro.imately 054

*ocus on telecommunications related business opportunities.

to enable the

2ompany to better

anticipate industry trends and capitali%e on new telecommunications+

The strong brand name recognition and a reputation for offering high

23

quality service to its customersK 6uality management team with vision and proven e.ecution skillsK and The 2ompanyLs strong relationships with international strategic and financial investors such as BingTel& 'arburg Pincus& International *inance 2orporation& $sian Infrastructure *und Eife Insurance. 0rand %rchitecture: ?harti is working on a comple. "o "&ree-la/ere! bran!in$ arc&i"ec" re roup and ;ew Oork

0!%"2I %I"2E.

2O4C!2E.

INDI% ONE

Air"el - The flagship brand for cellular operations all across the Indian country.

To c&"el- The brand earmarked for basic service operations.

In!ia One- The brand for national long distance :;E<= telephony Though the costs of creating new brands are heavy but the group wants to create4!is"inc" in!e'en!en" bran!s "o a!!ress !i))eren" c s"omers an! 'ro)iles5+

24

Bran! S"ra"e$/

To understand the brand strategy& let8s first look at the brand building e.ercise associated with $irtel @ a brand that had to be repositioned recently to address new needs in the market. 'hen the brand was launched seven years ago& cellular telephony wasn8t a mass market by any means. *or the average consumer& owning a cellular phone was e.pensive as tariff rates :at Ds 3 a minute= as well as instrument prices were steep @ sometimes as much as buying a second+hand car. ?harti could have addressed the customer by rationally e.plaining to him the economic advantage of using a mobile phone. ?ut Bachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. QInstead of the value+proposition model& we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand&R he e.plains. Bo the $irtel Qleadership seriesR campaign was launched showing successful men with their laptops and in their delu.e cars using the mobile phone. In simple terms& it meant $irtel was positioned as an inspirational brand that was meant for leaders& for customers who stood out in a crowd. <id it workT Depeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand @ leadership& dynamism and performance. These were valuable qualities& but they only took $irtel far enough to establish its presence in the market. $s tariffs started dropping& it became necessary for $irtel to appeal to a wider audience. $nd the various brand+tracking e.ercises showed that despite all these good things& there was no emotional dimension to the brand @ it was perceived as cold& distant and efficient.

25

Bachdev and his team reali%ed that in a business in which customer relationships were the core this could be a major weakness. The reason with tariffs identical to competitor Vodafone telecomm and roughly the level of service and schemes& it had now same for become important

?harti toQhumani%eR $irtel and use that relationship as a major differentiation. The brand had become something like Eufthansa @ cold and efficient. 'hat they needed was to become Bingapore $irlines& efficient but also human. $ change in tack was important because this was a time when the cellular market was changing The leadership series was okay when you were wooing the crUme de la crUme of society. Ance you reached them you had to e.pand the market so there was need to address to new customers ?y that time& ?harti was already the leading cellular subscriber in <elhi with a base of -.FF lakh :it now has ,.3 million customers=. $nd with tariffs becoming more affordable @ as cell companies tasrted cutting prices @ it was time to e.pand the market. 1ow could ?harti leverage this leadership position down the value chainT Burveys showed that the concept of leadership in the customer8s minds was also changing. Eeadership did not mean directing subordinates to e.ecute orders but the $irtel brand. $lso& a survey showed that 0" per cent of the new customers choose a mobile phone brand mostly word+of+mouth endorsements from friends& family or colleagues. Thus& e.isting customers were an important tool for market e.pansion with them. and ?harti now focused on building closer relationships to work along with a team to achieve common objectives @ it was& again& a relationship game that needed to be reflected in

26

That

is

precisely

what the brand tried to

achieve through its

new

positioning under the $irtel 4To c& Tomorro%5 brand campaign. This set of campaigns portrayed mobile users surrounded by caring family members. Bays Bachdev( QThe new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive.R $s it looks to e.pand its cellular services nationwide @to eight new circles apart from the seven in which it already operates @ ?harti is now reali%ing that there are new compulsions to rework the $irtel brand& and a new e.ercise is being launched to this effect. Dight now& the company is unwilling to discuss the new positioning in detail. ?ut broadly& the focus is on positioning $irtel as a power brand with numerous regional sub+brands reflecting customer needs in various parts of the country.

If $irtel is becoming more humane and more sensitive as a brand& ?harti has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated.

To bring in new customers& the company decided that it needed to segment the market. Ane such e.periment& launched last year& is Ooutopia& a brand aimed at the youth in the ,/ to ,7 age bracket and for those who are Qyoung at heartR. 'ith its earlier positioning& $irtel was perceived as a brand for the well+heeled older customerK there was nothing for younger people. 'ith Ooutopia $irtel hoped to reverse that In order to deliver the concept& $irtel offered rock bottom tariff rates :!0 paise for -" seconds= at night to Ooutopia customers @ a time when they make the ma.imum number of calls. It also set up merchandising e.ercises around the scheme @ like a special portal for young people to buy things or bid for goods. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling BMB rates with normal calls to make it cheaper for young people to use.
27

The other e.periment that ?harti has worked on is to go in for product segmentation through the Tango brand name. The brand was created to offer mobile users Internet+interface services or what is known as '$P :'ireless $pplication Protocol=. The idea was to bring Internet and mobile in perfect harmony. QThe name was chosen from the popular movie title I" Ta6es basically& you need the two services to tango to offer customers a new choiceR& says Bachdev. This& however& had less to do with the branding e.ercise as with inefficiency of service :accusingly slow download speeds= and the limited utility of '$P services.

Bubsequently& the ads were withdrawn& but the company re+iterated that the branding e.ercise could be revived because Tango will be the brand to offer PDB services @ or permanent Internet.

28

2he 6a$ic

Perhaps the more ambitious e.periment has been with@ the pre+paid card. The idea was to make the brand affordable& accessible and& most importantly& feasible as a means of e.panding the market even faster. PHASE I 7 Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. Buch a customer used the phone sparingly+ mostly for emergencies @ and was not willing to pick up a normal mobile connection with its relatively high rentals :pre+paid cards do not include rental charges=. To achieve its objectives ?harti did three things.

Ane& the product was made available at prices ranging from Ds -"" to Ds -&""" with no strings attached and was simple to operate.

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

Third& to make the product more QapproachableR to the customer& the company came with vernacular ad campaigns Eike4Ma$ic Daalo Sa/ Hello5

29

30

This apart& the company roped in 9arisma 9apoor and Bhah Dukh 9han for a major ad campaign all across <elhi& a ruse that saw the number of subscribers go up from 0./F lakh to ,.! million today& overtaking )ssar8s branded pre+paid card S'ee!& which was launched much ahead of Magic& which was launched much ahead of Magic. The company is now re+working its Magic strategy even further. )arlier& the branding strategy was aimed at roping in only

interested customers + that is& customers who were already inclined to opt for mobile services. ?ut now& with basic service providers having been allowed limited mobility at far cheaper rates& mobile service providers could find themselves under threat again. That is why the new e.ercise is aimed at co+opting non+adopters. 'hile the e.act strategy is under wraps& insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre+paid card.

:!%SE II ; ?harti used $irtel Magic to build a strong value proposition and accelerate market e.pansion through India8s first national pre+paid card TV brand campaign *irst time ever in India + any pre+paid card brand goes on TV $ combination of the film genre e.posed through the TV medium designed to connect with the masses of Indi

Oouth based + romance driven strategy platform makes the value proposition of $irtel MagicVMumkin 1ai8 come alive
31

$ll elements + user imagery& conte.t& tone N language created to connect the category to the lives of the B)2 ? N B)2 2 segment P the middle class non+mobile user.

$irtel Magic positions itself on the platform of being e.cellent for emergency situations increasing productivity as a part of everyday life.

Bharukh 9han makes Veverything in life possible8 while romancing pretty 9areena 9apoor with $irtel Magic& India8s leading pre+ paid mobile card.

. It gives you the freedom to control your life in a way never possible before. Indeed& anything that think is possible is possible with $irtel Magic. The new brand slogan VMagic hai to Mumkin 1ai. This strategy is designed to help us talk to this segment directly in the tone& manner N language of the masses. The QMumkin haiR value proposition will help us e.pand the market and gain a higher percentage of market shares in the process.

?rand ambassadors Bhahrukh 9han and 9areena 9apoor embody this Vcan do8 or QMumkin 1aiR spirit :infact that is the reason they were selected as brand ambassadors=. Bharukh rose from a TV actor to become India8s top film star and national heartthrob. 9areena8s success is due to her attitude8& talent& hard work and the sheer ability to make a mark in such a short time. ?oth these stars have said VMumkin hai8 and made it happen for themselves The genre of this new strategy N campaign is 1indi cinema led. This genre connects millions across India. The spirit of romance& dancingS the Indian cinema& well known to most as ?ollywood& holds millions of Indians
32

together as one. The new TV campaign of $irtel Magic crafted in the 1indi film idiom& magnifies the empowering optimism of QMumkin 1aiR& in the endearing situation of a boy+ girl romance. 'here Bharukh 9han& sets his eyes on 9areena 9apoor and wins her love with the help of $irtel Magic:Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won=. The strategy N new brand campaign is targeted at the large untapped base of intending mobile customers from Bec $& ? N 2. The estimated addressable market of such customers in the ne.t two years is around !0 million in $irtel8s ,5 states. The new strategy aims at correcting the perception that the mobile category is useful mainly for Vbusiness8 or Vwork8 related scenarios. The new strategy& brand positioning N brand slogan is an outcome of an e.tensive nationwide research and is an integral part of $irtel Magic8s new multi+media campaign. $dvertising The campaign has been created by Percept

33

:!%SE III < ?harti used $irtel Magic to build a strong value proposition and accelerate market e.pansion through India8s first national pre+paid card TV brand campaign. *irst time ever in India recharge any value $ combination of the film genre e.posed through the TV medium designed to connect with the masses of India. Oouth based + romance driven strategy platform makes the value proposition of $irtel Magic + $isi a%aadi aur kahanTR come alive Bharukh 9han Makes Veverything in life possible8 $irtel today unveiled its strategy for market e.pansion with the launch of its new $irtel Magic pre+paid card brand campaign P VMagic 1ai to Mumkin 1ai8. . The value proposition is centered on a person8s desire to make all his J her dreams& ambitions N aspirations instantly possible. The new campaign for $irtel Magic is all about empowering millions of Indians to be on top of their lives. The brand is positioned to be relevant to the mass+market who want to make all their dreams& hopes N desires come aliveS instantly .$t a amount of your choice you can recharge your account with available validity time .Improving productivity& letting you befriend the world and opening up new hori%ons. It gives you the freedom to control your life in a way never possible before. Indeed& anything that you think is possible is possible with $irtel Magic. The new brand sloganV$isi a%adi aur kahan8 has been specially created to capture this effectively. + any pre+paid card brand gives such freedom to

34

O"&er Bran! B il!in$ Ini"ia"i.es The main idea is to stay ahead of competition for at least si. months. 'orking on the above game plan ?harti is constantly coming up with newer product offerings for the customers. The focus& of course& is to offer better quality of service.

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

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

To assist customer care personnel to deal with subscriber queries& a storehouse of /"&""" frequently asked questions and their answers have been stored on the computers.

?harti e.pects that most of its new customers :one estimate is that it would be 5" to F" per cent of the total new subscriber base= would come from the pre+paid card segment. Bo& they must be given value+ added products and services which competitors don8t provide.

?harti& for the first time for a cellular operator& has decided to offer roaming services even to its pre+paid customers& but the facility would be limited to the region in which they buy the card. To ensure that customers don8t migrate to other competing services :which is known as churn and ranges from ," to ,0 per cent of the customer base every month=& the company is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone.

35

The loyalty program will not be only for a Vbadge value8& it will provide real benefits to customers. The idea is to create an $irtel community.

$nother key area which ?harti is concentrating its attention upon is a new roaming service launched in <elhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network.

The company also offers multi+media messaging systems under which customers having a speciali%ed phone with a in+built camera can take pictures and e+mail it to friends or store it in the phone. The cost per picture is between Ds 0 to Ds F.

?harti is also aware that it has to make owning a ready+to+ use cellular service much easier than it is today. $ key area is to increase the number of activation centers. )arlier ?harti had !0" $irtel 2onnect stores which were e.clusive outlets :for its services= and about !0" $irtel Points which were kiosks in larger shops. ;ow activation can be done by all of them& and not only by 2onnect outlets& all within ,0 to !" minutes. In comparison& the competition takes two to four hours.

Pre+ paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. *irst& they are easier to obtain and convenient to use. Inlike post+paid&

one need not pay security deposits for picking up a pre+paid card. It is often available even with paanwalas. $s befits a fast+moving consumer service& the game is now moving beyond price to e.panding distribution reach and servicing a well+spread+out clientele with technology to make and strategic alliances. ?harti is focusing on two factors and making recharging more convenience.

pre+paid cards more attractive 9eeping the entry cost low for consumers

36

?harti is in the process of launching a new system in alliance with Mumbai+based 2ompany Venture InfoTech which will enable a pre+paid card user to renew his subscription by just swiping a card. The system will not only save users the hassle of going out and buying a card every time it e.pires but also enable mobile companies to reduce the cost of printing and distributing cards. ?harti Televentures has tied up with L'aiter on wheels&L a company delivering food at home& to reach its Magic pre+paid cards to subscribersL doorsteps. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. $part from improving the convenience of recharging& mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value proposition for its pre+paid service. They are leveraging technology to e.pand their distribution network subscribers. ?harti 2ellular has also launched a special service& 2areTouch& for high+ value& corporate customers& access for any assistance providing them with instant& single+point they require. 2ustomers can dial FFF and and deliver round+the+clock recharge options to its MATB :Mobile on the Bpot=

enjoy a slew of services& which includes easier payment of bills service on priority basis& and value+added services without any additional paper work. ?harti 2ellular through an is offering a voice range of services without going interactive recorder ensuring that they save time.

<edicated V2areTouch8 e.ecutives are e.pected to assist customers with any service on priority basis. ?esides the regular proactive reminder calls for bill payment customers can also call 2areTouch for bill payments at free of cost. $irtel presented MT, Inbo8 the first Von+air8 BMB based interactive music dedication show e.clusively for $irtel and $irtel Magic customers. 1ighly interactive VC based show with real+time feedback mechanism. ?oth brands joined hands to target the high growth youth segment.

37

B&ar"i9s ,ie% on i"s Bran!in$ s"ra"e$/#*irst& brand building efforts in today8s conte.t have to be seen in a more holistic manner. <elivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. Inflinching orientation to customer needs is the second key success factor. 2ustomers :be it for industrial products or consumer goods and services= across the world are more informed and& at the same time& becoming more individualistic in their needs and far more demanding with the passage of time. Pro+active tracking of shifts in consumer behavior& anticipating redefined or emerging customer needs& and then reacting in Qreal+timeR are essential to attract and retain customer loyalty @ a key element of creating brand equity in the present situation. 2ustomi%ing the product :and communication of specific needs of various consumerJcustomer element in creating brand appreciation. $s far as allocation of time and financial resources are concerned& too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to say that advertising and promotion are less relevant. An the contrary& with more choices and higher media clutter& businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise+ wide QreengineeringR of the business philosophy and core design& production& and delivery operations for the product itself. The positive spin to this argument is that by first addressing the fundamentals& the enterprise itself becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. its benefit= to meet the

sub+segments is the third

38

It is& however& crucial to note that in the years to come& not only will the cost of building a regional or a national :or an international= brand will continue to ris

S=O2 %N%.5SIS Stren$ths ?eing one of the largest companies in India the company has achieved a degree of focus in its core business of its products It has a strong brand name& super ior quality products and an

enviable distribution network. It has a clear and well+defined organi%ation structure and

limits of financial authority. Increase in advertisement spends affect the company8 s margins .

The companyVs bottom line f alls victim to the bloated and highly paid workforce& which affects its mar gins.

=ea8ness Eittle efforts over the $dvertising of products. <istribution channel is not accurately categori%ed. Premium priced products& hence can8t compete in low price segment. ;o separate strategy for rural market.

Opportunities

39

The boost

companyLs

financial

performance

can

receive

major

from There is a lot of

scope of

product and market

diversification. ).ports of products will also have huge chances in the coming years $irtel8s from business the has ample scope for gaining market share

unorgani%ed sector . Dural penetration too holds vas t

potential to bring about growth.

2hreats The slowdown in the economy has restricted top line growth of most *M2 major s and for $irtel also it will be difficult to maintain historical growth rates in such a depressed scenario. 2ompany8s major raw materials are influenced by government

policies J controls as well as vagaries of the monsoons. *luctuations in the prices of raw materials would have significant impact on costs and mar gins of the company. Moreover & inordinate hike in ?road ? and Internet products would also increases company8s production and distribution cost.

40

(OD%3ONE ESS%"

(oda one Essar& previously is a 1utchhison )ssar in cellular operator India that covers ,5 telecom circles in India. <espite the official name being Vodafone )ssar& its products are simply offers both prepaid and postpaid BM cellular branded (oda one> It

phone coverage throughout India and is especially strong in the major metros. ! services based on 7"" M1% and ,3"" M1% digital BM technology&

offering voice and data services in ,5 of the countryLs !- licens (oda one Essar& previously is a 1utchhison )ssar in cellular operator India that covers ,5 telecom circles in India <espite the official name being Vodafone )ssar& its products are simply offers both prepaid and postpaid BM cellular branded (oda one> It

phone coverage throughout India and is especially strong in the major metros.

41

Comparison o mar8etin$ strate$ies bet*een 0harti ' %irte#

42

:urpose o comparison The sub main purpose of this report is to compare the marketing Btrategies adopted by ?harti $irtel and its rival Vodafone The comparison shows how both of the companies have been challenging each other to gain market shares. =hy comparison *ith voda one ?harti $irtel is the leader in telecommunication sector

?harti $irtel holds the lion share of market of communication sector.

1owever& Vodafone has been giving tough competition to ?harti $irtel.

Vodafone is the second largest player and share holder in 2ommunication sector.

Bince its launch Vodafone has been adopting aggressive marketing strategies. The comparison shows how 1utchison )ssar Telecom. 2aptured !!4 market share in one month of its first launch of postpaid subscription in !""!. 'ith a different technology Vodafone creates its own market Vodafone today deals in every business of communication sector. Vodafone making and changing the strategies to capture the market shares

43

0rand positionin$ by 0harti %irte# Mar6e" se$men"a"ion eographical segment :metropolitans N cities India= <emographic segment + middle income groups People age group of !" to !3 year

Tar$e" mar6e"in$ People who living in cities and towns. Poor or middle income group people. Ooungsters in big cities. ?usinessmen Posi"ionin$ 2reating brands :Bharukh khan N Bachin Tendulker= $ds and promotions. Promotion for study of poor childrens. Mar6e"in$ mi8

Price(

low price strategy

44

Place(

ma.imum outlets and service centers

Product(

verities available for various groups

Promotion(

various schemes for pre+paid and post+paid

6ar8etin$ strate$ies o (OD%3ONE (oda one tar$et the rura# India

The main targeted customers of Vodafone are from rural India. ?y offering cheap and light mobile sets Vodafone attracts customers of small villages and towns. O erin$ cheap handsets Vodafone offers cheap and free connections to all customers. The cost for these sets was Ds+F77+3/7+,"77Wset and onward 3ree support and services In every district and big towns Vodafone opens its service centers to provide better support and services. most of the

Stron$ #o$istics and supp#y chain Vodafone has a strong logistic and supply all over India. In every small town the potential customers can easily purchase the Vodafone

45

BIM N Bets. 2ar$etin$ youn$sters in metropo#itans Vodafone attracts youngsters by offering colorful handset at very low prices.

0rand positionin$ by (OD%3ONE

Mar6e" se$men"a"ion

eographical segment :rural India= <emographic segment + middle income groups

Tar$e" mar6e"in$ People living in small towns and villages. Poor and middle income groups.

Ooungsters in big cities.

?usinessmen

46

Posi"ionin$ 2reating brands $ds and promotions

Mar6e"in$ mi8 Price ( low price strategy Place ( ma.imum outlets and service centers Product ( verities available for various groups Promotion( various schemes for pre+paid and post+paid Ser.ices 'ro.i!e! b/ B&ar"i Air"eI Mobile services with BM technology

*i.ed+line connections

;ational and international long distance services

VB$T& Internet services and network solutions

?roadband services

47

Ser.ices 'ro.i!e! b/ ,o!a)one mobile services with BM technology

fi.ed+ line telephone services

Iniversal Internetworking

VoIP :Voice over Internet Protocol=

Interactive Television

Visual 2ommunication

?roadband Portal

48

"ESE%"C! 6E2!ODO.O?5

$chieving accuracy the subject.

in any research requires

a deep study regarding

The prime objective of the project is to compare $irtel with the

e.isting competitor :Vodafone= in the market and the impact of 'EE on $irtel. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Becondary data has been used to support primary data wherever needed.

Primar/ !a"a %as collec"e! sin$ "&e )ollo%in$ "ec&ni: es

6uestionnaire Method

<irect Interview Method and

Abservation Method

The main tool used was& the questionnaire method. *urther direct interview method& where a face to+face formal interview was taken. Eastly observation method has been continuous with the questionnaire method& as one continuously observes the surrounding environment he works in.

49

D%2% CO..EC2ION 6E2!OD There two type of method of data collection

PDIM$DO <$T$

B)2A;<$DO <$T$

:"I6%"5 D%2% <ata used for the research work was primary in nature. Primary data is that which is the collected for the first time and thus happen to be originated in character.

@4ES2IONN%I"E S4"(E5 In the studies a questionnaire is prepared. the questionnaire consists of ,0 questions.

50

SECOND%"5 D%2%

Becondary study& are as follow

data

refer

to

the

data

that

has

been

already collected .the secondary data& which has been used to carry out this

?AA9B& CAID;$EB& M$ $XI;)B& ;)'BP$P)DB

I;<IBTDO D)PADTB

2AMP$;O8B I;T)D;)T BIT)

BAM)AT1)D D)E)V$;T BTI<O M$T)DI$E $;< ')?BIT)B

S%6:.E 4NI2

The research process was done by interacting with number of customers during the activities performed& which included& markets cold calling& canopies& etc. sample design consists of random sampling.

S%6:.E SIAE: !"" P)APE)

51

6%"9E2 :.%5E"S IN 2E.E CO664NIC%2ION Operator 6ar8et share %u$BB,/ ?harti $irtel Vodafone Deliance info Idea 2ellular ,7."5 !,.3, ,F.","./0 6ar8et share %u$BB,& !!./7 ,5.75 ,5.", 3./7

6ar8et share %u$BB,/ 6ar8et share %u$BB,&

2 5 2 0 1 5 1 0 5 0 Ma rk e tS h a re A u g Ma rk et s h a re 0 9 0 5 B h a rti A irte l V o d a f o n e R e lia n c e In f o Id e aC ellu la r

52

*rom above the graph it show that in !""0 Vodafone has highest market share but in !""7 $irtel gets highest share market comperesion to other comp

%$e ?roup ?raph

$s we can see from the above graph& the people who are in the age group of !,+!3 years are the ones who are the ma.imum users of mobile phones. This segment is the one which gives ma.imum business to the mobile operators. This segment constitutes the young e.ecutives and other office going people. They are 504 of the total people who were interviewed. The ne.t age group are the people who are !3+-0 years old. They are !"4 of the total. They are those who are at home or have small business units etc. $nd the ne.t age group is the youngest generation who are ,0+!, years old. They are school and college going students and carry mobile phones to flaunt. They are,04 of the total interviewed people.

53

Occupation ?raph

OCC4:%2ION

,"4 ,04

,04 Btudent ).ecutives 1ouseholds Ather 004

S24DEN2S EXEC42I(ES !O4SE!O.DS O2!E"

$s the above graph shows that 004

of the total people interviewed are

working. Bo& these people are the ones who are the ma.imum users of mobile phones. They are the young e.ecutives managers& Tele + callers etc. who require mobile for their official purposes. The ne.t category is the households& who are either housewife& small units which operate from their homes etc. They are !"4 of the whole. The ne.t segment is the students. They are ,04 of the whole. $nd ,"4 of the whole is categories who are the professionals.

54

Service :rovider ?raph

These are the total market share of mobile user or people captured by the mobile provider company. There two major company in mobile phone service sector Vodafone and $irtel who respectively hold the market share with other company as ,F4 and !"4 of total market user segment of mobile customer.

55

56

Customer Service %t %irte# ?raph

,"4 ,"4 *ully Batisfy Partialy <issatisfy !"4 5"4 *ully <issatisfy

$s the above graph clearly shows that customer services at $irtel seems good. 5"4 of the people are satisfied with the customer services provided by $irtel. They are the ones who have the ma.imum share in the market but they are lagging behind in the customer services. ,"4 of the people were fully dissatisfied with the customer services of $irtel. This could leave an impact on the mind of the consumer. 1e can even switch over his brand. !"4 of the people seemed partially satisfied with the customer services and only 5"4 seem to be fully satisfied with $irtel8s customer services& which is a very large amount.

57

2ype O Card ?raph

Types of cards

sim cards

cash cards

,04

304

2ash cards seemed quite popular among the people interviewed. 304 of the total mobile users were having cash card connections. This means that the cash cards should be easily and readily available in the local markets. $irtel should make sure that Magic is available in each and every nook and corner of the market. ,04 of the people were having sim connections which is the regular bil.

58

6onth#y expense $raph 6onth#y Expense

!/4

,!4

Ds 5"" Ds /0" Ds !""

5/4

People on an average spend DB 0"" per

month as their mobile phone

e.pense. 5/4 people spend this amount. !/4 people spend DB -"" per month as their monthly mobile e.pense. $nd the remaining ,!4 had an e.pense more than DB ,"""& they could the ones having sim connections or having cash cards and having a lot of business calls on their mobile.

59

%*areness %bout =.. ?raph

-04 $wareness Af 'EE Oes ;o 504

'EE seemed to be a new word for many of the people. /04 of the people were not at all aware of such a technology. Bo& in order to get the answer for this question they were first e.plained the concept .Anly 504 people knew 'EE is all about

60

A%areness o) ;LL Pla/ers 3ra'&

$irtel& 3"4 3"4 F"4 5"4 0"4 /"4 -"4 !"4 ,"4 "4 $irtel Vodafone Vodafone& !"4 $irtel Vodafone

Vodafone was the brand which was popular amongst the interviewed people. $s Vodafone had done so much advertising and has it banners and hoarding spread all over <elhi. Bo& this could be one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly because of less promotions done by them as compared to Vodafone An the basis of analysis of the questionnaire I have found that the and other office goersT They spend a ma.imum of DB 0"" as their mobile e.pense. There is more no. of prepared cards than post paid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. ;ow when I compared $irtel with its competitor from the point of view of the consumer I found that on the basis of Tariff plan& value added services and billing accuracy $irtel is at par or ahead of case of customer care and competitors. its competitor they lag but behind in the there availability ma.imum no. of people who use mobile phones is in the age group of !" to !3. 'ho are the young e.ecutives

61

Chapter ) .iterature revie*

2e#ecom Sector In India Than ,!0 million telephones network is one of the largest communication networks in world& which continues to grow at a blistering pace. The rapid growth in the telecom sector can be attributed to the various pro+ active and positive well as the policy measures taken by the government as dynamic and entrepreneurial spirit of the various telecom

service providers both in private and public sector. The telecom sector has shown impressive growth during the past decade. Two striking features of this growth vi%. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the etlecom sector. The share of mobile phones :including 'EE mobile= has overtaken the share of landlines with 5!4 in the total number of phones. The private sectorLs contribution is also increasing rapidly. 2urrently more than -" lakh phones are being added each month and it is targeted that by the end of !""3 the total number of phones may reach a level of-0" million taking the tele+density to more than -"4 which is currently at !/.5-4. Net*or8 Expansion:< The total number of telephone subscribers has reached !3,.5! million at the end of Canuary !""3 as compared to !-!.3F million in Culy !""F. The overall Teledensity has increased to !-.5-4 in Canuary !""3 as compared to !,.!"4 in $ugust!""F. =ire#ess Service:< The wireless segment saw a surge of 3.FF million subscribers last month compared to 3.,F million in <ecember!""F. This pushed the total wireless subscribers base to !/!./" million by Can -, !""3

62

=ire #ine Subscribers:< The wire line segment subscriber base stood at -7.F- million with a decrease of ".,5 million at the end of Canuary !""3.

domestic as well as international charges have also fallen considerably. 2e#edensity :< The gross subscriber base reached !"5.3- million at the end of March !""F. The Teledensity is !/.5-4at the end of Canuary !""3 as compared to ,3.-,4 at the end of March !""F& registering an increase of 54. Increasin$ "o#e o :rivate Sector:< The private sector has played a

significant role in the growth of telecom sector. The share of private sector has risen to 30 per cent in <ecember!""F from 5/.,/ per cent in ;ovember !""5 2ari for "eba#ancin$ 6easures:< There has been a dramatic fall in the local calls have fallen considerably in recent months especially for %uthority o India C2"%ID: TD $I of TD$I was are

tariffs due to increased competition. The minimum effective charges cellular service. The long distance 2e#ecom established "e$u#atory under the Telecom Degulatory $uthority of India $ct& ,77F objectives framework providing a regulatory that facilitates ,777. TD$I

enacted on March !3&,77F. The goals and focused towards

achievement of the objectives of ;ew Technology Policy :;TP= together with better quality and affordable prices.

has endeavored to encourage greater corporation in the telecom sector

63

Chapter -

3INDIN?S %ND %N%.5SIS

6., ;ame those companies which provide telecom services now a daysT

$irtel Vodafone Deliance Tata <ocomo Idea

0 35 30 25 20 15 10 5 0 airetel !odafone reliance tata doco" o idea

64

6.! which mobile company services you are using now a daysT $irtel Vodafone Athers

Athers& !"4 $irtel $irtel& 0"4 Vodafone& -"4 Vodafone Athers

The graph clearly show that there is 0"4 people who are using $irtel and Vodafone has only -"4 customer in the market other is remaining !" 4which include all other company. The graph suggest that $irtel providing better service in present time.

90 %0 $0 #0 50 0 30 20 10 0

' a s t (es t )orth

1s t &tr

2nd &tr

3rd &tr

th &tr

65

6.- 'hich ?rand you& prefer mostT $irtel Vodafone Deliance Tata <ocomo Idea

2ustomer preference using telecom service

"./0 "./ ".-0 ".".!0 ".! ".,0 "., "."0 " " $irtel Vodafone Deliance Tata Idea ,/4 ,"4 54 /!4 !34

Most of the customer like to use $irtel because it provide better service and networking. In this graph $irtel customer is about /"4 and Vodafone has !34 and other are not in large no. so $irtel has ma.imum customer compare to other.

66

6./ 1ow long you have been using this ProductT "+! Oears !+0 Oears 0+," Oears More than ," years

0rand .oya#ty
3"4 5"4 /"4 !"4 "4 "+! Beries, 504 !+0 !"4 0+," ,"4 More than ," year 04

This graph show that customer change their brand according to new schemes launch by the different company. In this graph there are 504 customers which are loyal for only "+! years. $nd !"4 people they used the product at least !+ 0 .There are some people who used the product at least 0+," years due to their satisfaction of the brand and 04 people who used the product for long time. Most of time businessmen don8t change their product due to their business .

67

6.0 $re you using other product with $irtelT Oes ;o

$irtel

O)B& /"4 O)B ;A ;A& 5"4

1ere are the customer responses about the use of the $irtel product and other product rather than $irtel in this segment of survey 5" 4 of customer are aspire with $irtel and /" 4 shown interest in other telecom products in urban areas.

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6.5 <o

you

collect

any

information search before decision

making

purchaseT

;A& ,04

O)B ;A

O)B& 304

In this graph it represent that every customers before purchase they gather the information .304 people search information before purchasing and ,04people they do not want to search any information . They purchase which they like to want. The graph show that people are more aware to purchase any product.

69

6.F how would you rate the e.perience with ?randT ).cellent ood $verage ?elow average $irtel Vodafone Deliance Tata 0" !0 ,0 ,"

,"4 ,04 $irtel ).cellent 0"4 !04 Vodafone ood Deliance $verage Tata ?elow $verage

The above graph show that $irtel is more e.cellent brand compare to Vodafone& Deliance Tata Indicom. Vodafone is also good but not enough to $irtel. Deliance is quiet average by the rate of e.perience by the customer according to brand name.Tata is below average due low markets and less awareness of the people. Bo $irtel is a strong brand in the market due to their better services.

Chapter /

70

.I6I2%2IONS ;o project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations(+ ,. <uring the study& on many occasions the respondent groups gave us a

cold shoulder. !. The respondents from whom primary data was gathered any

times displayed complete ignorance about the complete branded range& which was being studied. -. Eack of time is the basic limitation in the project. /. Bome retailersJwhole sellers refuse to cooperate with the queries. 0. Bome retailersJwholesalers gave biased or incomplete information regarding

CONC.4SION $fter analy%ing the findings of the research& I can conclude that

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$irtel

lagged

behind

its competitors

as far as customer service and

availability is concerned. The ma.imum no. of people who use the mobile is in the age group of !" to !3. 2ash cards are the most popular type of mobile connections& as they are consumer friendly and recharging the connection is not a problem. Ma.imum no. of people spends DB 0"" on their connections. $s $irtel is the only company having the ma.imum no of mobile connections so it must seriously look into the loop holes of the e.isting customer service department. $s we know that now $irtel has already launched its product with logo Q8 $isi a%aadi aur kahanR has already became popular in market. Bo we can say that in spite of so many competitors in the market $irtel is having a good position just because every time& it tries its best to understand the need of its important customers. *rom the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti $irtel has to more work in every field of communication business. It is the time not only to survive but to sustain in the market for a long time. *or this $irtel has to work on its all marketing strategies& marketing& promotion& brand image etc. $irtel has to take Vodafone. Very seriously and update its own strategies from time to time and when the need arises. 'ith aggressive marketing strategies $irtel has to target rural India as F"4 of population of India lives in these areas. The other segment may be costumers of all age groups.

S4??ES2IONS

72

*ollowing are the few suggestions to %I"2E. for improving the market share and image of the products concerned. 1> :"OD4C2 YModification must be brought about in $IDT)E& in terms of quality. Its demand should be increased.

2> :.%CE Y The brands must be made available easily in& P2A N general store )> :"O6O2 ION Y2ompany awareness. Y*ree samples should be distributed among the prospects. Bales promotion tools like gifts& contests and coupons must be given to retailers as well as customers and prospects. Y 2atalogues should be distributed among customer. -> :"ICE Y Price should be as competitive as other company maintains. Y <istribution of new connection should be in reach of customer pocket. must undertake e.tensive promotional activities like

advertisements must be released in different Medias to create brand

@4ES2IONN%I"E

73

<ear BirK I PDIT)B1 P$T9$D & student of ?MB of Vidyalankar school of

informational technology. I am doing my project on Q Comparative ana#ysis o mar8etin$ strate$y o (oda one and %irte#E Please give your precious time for filling these detail. . questionnaire

6., ;ame those companies which provide telecom services now a daysT

$irtel Vodafone Deliance Tata Indicom Idea

6.! which mobile company services you are using now a daysT $irtel Vodafone Deliance Tata Indicom Idea 6. - $mong them& which ?rand you& prefer mostT $irtel

74

Vodafone Deliance Tata Indicom Idea 6./ 1ow long you have been using this ProductT

"+! Oears !+0 Oears 0+," Oears More than ," years 6.0 $re you using other product instead of $irtelT

Oes ;o 6.5 how would you rate the e.perience with ?randT ).cellent $irtel Vodafone Deliance Tata Indicom ood $verage ?elow $verage

6.F <o you collect any information search before making purchaseT

75

Oes ;o 6.3 If yes& which sources are usedT Maga%ines <ealers Bales ).ecutives $ny others 6.7 'hat are the features you look for in a product before making purchase decisionT ive preferences :,+1ighest& 5+ least=

?rand credibility Price and <iscount $fter sales services and parts& network Value for money Vehicle performance $dd on features or ergonomics of design

6.,". 'hich of these marketing J sales schemes attracts you while purchasing any connectionT ood ;etwork <iscount scheme

76

Bervice package $ny other

6.,, If you have to purchase a new connection or product in near future& which ?rand will you go for and whyT

ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ

6.,! $re you aware of various promotional activities being run by $irtel& if yes then howT $re you satisfied with these promotional activitiesT

Very satisfied satisfied 2ustomer 2are ?y $d *ilms ?y 2amp ;ot satisfied

somewhat

!/ hrs call center services6.,- 1ow would you r ate $irtel performance as your e.pectation on 0 points scale :0 1ighestT=

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, $fter Bale service Maintenance Product as per e.pectation

/ 0

6.,/ 'hat are

you

suggestions for

improving

the product

quality&

service availability and parts availabilityT

0I0.IO?"%:!5

78

In this project report& while finali%ing and for analy%ing quality problem in details the following ?ooks& Maga%inesJCournals and 'eb Bites have been referred. $ll the material detailed below provides effective help and a guiding layout while designing this te.t report.

0oo8s :

QPrinciples of MarketingR PPhilip 9otler N 9evin keller edi. ,! QMarket DesearchR P <.<. Bharma QDesearch MethodologyR P 2.D. 9othari

=ebsites: www. $irtelworld.com www.india.com www.Vodafone.in

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