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Project Report
Comparative analysis of MARKETING STRATEGIES O
!o"afone # AIRTE$%
S&'mitte" for t(e partial f&l)llment of t(e re*&irement
or t(e a+ar" of "e,ree of
S.-MITTE/ -012
.mes( Gar,
M-A 3! Sem4
Roll No4 567M-A589
Mr4 Naren"er Tan+ar
:ea" of Mana,ement "epartment
-(a+ani S(an;ar anan,p&ria instit&te of tec(nolo,y #
Alamp&r< ari"a'a"2393558
I Umesh Garg, sincerely thankful to all those people who have been giving me any
kind of assistance in the making of this project report.
I express my gratitude to Mrs. riyanka !ingh, who has through her vast experience and
knowledge has been able to guide me, both ably and successfully towards the
completion of the project. I express my gratitude to "hawani !hankar #nangpuria Institute
of $echnology % Management, &aridabad
I would hereby, make most of the opportunity by expressing my sincerest thanks to all
my faculties whose teachings gave me conceptual understanding and clarity of
comprehension, which ultimately made my job more easy. 'redit also goes to all my
friends whose encouragement kept me in good stead. $heir continuous support has
given me the strength and confidence to complete the project without any difficulty.
(ast of all but not the least I would like to acknowledge my gratitude to the
respondents without whom this survey would have been incomplete.
I am also thankful to authority of #irtel % )odafone for providing me the information.

*UM+!, G#-G.
1. Acknowledgement
2. Contents
3. Declaraton
!. "#no$ss
%. ntrod&cton
'. Need o( t)e st&d#
*. o+,ect-es o( t)e st&d#
.. ntrod&cton o( t)e to$c
Telecom sector n /nda
Com$an# $ro(le o( Artel
T)e magc
Com$arson +etween marketng strateg# o( 1)art Artel and 0oda(one
2. 3esearc) Met)odolog#
T#$e o( researc) met)odolog#
Data collecton met)od
Met)od o( collecton
14. Data Anal#ss and /nter$retaton
11. "wot anal#ss
12. "&ggeston 5 Concl&son
13. 3ecommendatons
1!. 1+logra$)#
1%. 6&estonnare

I, Umesh Garg being a student of M"# of "hawani !hankar #nangpuria Institute of
$echnology % Management. *".!.#.I.$.M.., &aridabad. ,ereby declares that the project
report under title 7Com$arat-e Anal#ss o( Marketng "trateges o( 0oda(one 5 Artel./ Is
my own work it is the analysis of the big scale sector of communication. $his project
involves the big scale services involved in telecommunication sector provided by #irtel
and )odafone to its customers. $he survey was conducted so as to analy0e the big scale
sector prevailing in the current industry and the improvement that can be made upon it.
#ll care has been taken to keep this report error free and I sincerely regret for any unintended
discrepancies that might have crept into this report. I shall be highly obliged if errors *if any. be
brought to my attention.
$hank 1ou
Umesh Garg.
2++3 4& $,+ !$U31
5. $o identify the difference between market performance of #irtel industry and
6. $o study the market of #irtel Industry and )odafone on big scale
telecommunication sector.
7. $o compare various parameters of marketing strategies, manufacturing
process, technology adopted production policy, advertising, collaboration,
export scenario, future prospect for the two companies and government
8. $o study the level of customer satisfaction in #irtel % )odafone.
9. $o study customer buying behavior and factors which influence the purchase
decision process.
:. $o study consumer preferences.
;. $o study the consumer trend in telecommunication sector.
<. $o study competitive marketing strategies adopted by #irtel and )odafone.
O18ECT/0E O9 T:E "T;D<
+very organi0ation has to achieve its organi0ation goals. &or this it is very essential for an
organi0ation to know about the view of consumers and their competitive products. $his survey
research may be also aimed as to estimate potential buyer for the product. $he objective of the
study is as under=>
5. $o identify the difference between market performance of #irtel industry and )odafone.
6. $o study the market of #irtel Industry and )odafone on big scale telecommunication sector.
7. $o compare various parameters of marketing strategies, manufacturing process,
technology adopted production policy, advertising, collaboration, export scenario,
future prospect for the two companies and government policies .
8. $o study customer buying behavior and factors which influence the purchase decision process.
9. $o know how the company has been successful in encountering the aggressive marketing
strategies of competitors.
Telecom "ector /n /nda
$han 569 million telephones network is one of the largest communication networks in
world, which continues to grow at a blistering pace.
$he rapid growth in the telecom sector can be attributed to the various pro>active and
positive policy measures taken by the government as well as the dynamic and
entrepreneurial spirit of the various telecom service providers both in private and public
sector. $he telecom sector has shown impressive growth during the past decade. $oday,
$wo striking features of this growth vi0. increasing preference for mobile phones and
higher contribution of private sector in the incremental growth have predominated the
telecom sector. $he share of mobile phones *including ?(( mobile. has overtaken the
share of landlines with :6@ in the total number of phones. $he private sectorAs contribution
is also increasing rapidly. 'urrently more than 7B lakh phones are being added each month
and it is targeted that by the end of 6BB< the total number of phones may reach a level of
79B million taking the tele>density to more than 7B@ which is currently at 68.:7@.
Network E>$anson? $he total number of telephone subscribers has reached 6<5.:6
million at the end of Canuary 6BB< as compared to 676.<; million in Culy 6BB;. $he overall
$eledensity has increased to 67.:7@ in Canuary 6BB< as compared to 65.6B@ in #ugust
Wreless "er-ce= $he wireless segment saw a surge of <.;; million subscribers last month
compared to <.5; million in 3ecember6BB;. $his pushed the total wireless subscribers base
to 686.8B million by Can 75 6BB<.
Wre lne "&+scr+ers? $he wire line segment subscriber base stood at 7D.;7 million with
a decrease of B.5: million at the end of Canuary 6BB<.
Teledenst#? $he gross subscriber base reached 6B:.<7 million at the end of March 6BB;.
$he $eledensity is 68.:7@at the end of Canuary 6BB< as compared to 5<.75@ at the end of
March 6BB;, registering an increase of :@.
/ncreasng 3ole o( =r-ate "ector? $he private sector has played a significant role in the
growth of telecom sector. $he share of private sector has risen to <9 per cent in 3ecember
6BB; from :8.58 per cent in 2ovember 6BB:.
Tar(( 3e+alancng Meas&res? $here has been a dramatic fall in the tariffs due to
increased competition. $he minimum effective charges for local calls have fallen
considerably in recent months especially for cellular service. $he long distance domestic as
well as international charges have also fallen considerably.
Telecom 3eg&lator# A&t)ort# o( /nda @T3A/A? $-#I was established under the
$elecom -egulatory #uthority of India #ct, 5DD; enacted on March 6<,5DD;. $he goals and
objectives of $-#I are focused towards providing a regulatory framework that facilitates
achievement of the objectives of 2ew $echnology olicy *2$. 5DDD. $-#I has
endeavored to encourage greater corporation in the telecom sector together with better
Euality and affordable prices.

Artel 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 of
subscribers. "harti #irtel owns the #irtel brand and provides the following services
under the brand name #irtel= Mobile !ervices *using G!M $echnology., "roadband
% $elephone !ervices *&ixed line, Internet 'onnectivity*3!(. and (eased (ine.,
(ong 3istance !ervices and +nterprise !ervices *$elecommunications 'onsulting
for corporates.. It has presence in all 67 circles of the country and covers ;5@ of the
current population *as of &1B;..
(eading international telecommunication companies such as )odafone and !ing$el
held partial stakes in "harti #irtel.
0oda(one Essar, previously :&tc)son Essar is a cellular operator in India that covers 5:
telecom circles in India 3espite the official name being )odafone +ssar, its products are
simply branded 0oda(one. It offers both prepaid and postpaid G!M cellular phone
coverage throughout India and is especially strong in the major metros.
)odafone +ssar provides 6G services based on DBB M,0 and 5<BB M,0 digital G!M
technology, offering voice and data services in 5: of the countryAs 67 license areas.
0oda(one Essar, previously :&tc)son Essar is a cellular operator in India that covers 5:
telecom circles in India . 3espite the official name being )odafone +ssar, its products are
simply branded 0oda(one. It offers both prepaid and postpaid G!M cellular phone
coverage throughout India and is especially strong in the major metros.
)odafone +ssar provides 6G services based on DBB M,0 and 5<BB M,0 digital G!M
technology, offering voice and data services in 5: of the countryAs 67 license areas.
t(e topic
$he project is an extensive report on how the #irtel 'ompany 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 Euality of its products. $he report begins with the
history of the products and the introduction of the #irtel 'ompany. $his report also
contains the basic marketing strategies that are used by the #irtel 'ompany of
manufacturing process, technology, production policy, advertising, collaboration, export
scenario, future prospect and government policies. $he report includes some of the key
salient features of market trend issues.
In todayFs world of cutthroat fierce competition, it is very essential to not only exist but
also to excel in the market. $odayFs market is enormously more complex. ,ence forth,
to survive in the market, the company not only needs to maximi0e its profit but also
needs to satisfy its customers and should try to build upon from there.
G#s we spread wings to expand our capabilities and explore new hori0ons, 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.G
$hese 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 revolutioni0ed
telecommunications with its world>class products and services.
+stablished in 5D<9, "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 3elhi, first private basic
telephone service provider in the country, first Indian company to provide comprehensive telecom
services outside India in !eychelles and first private sector service provider to launch 2ational
(ong 3istance !ervices in India. "harti had approximately 7.65 million total customers H nearly
6.<< million mobile and 778,BBB fixed line customers.
Its services sector businesses include mobile operations in #ndhra radesh, 'hennai, 3elhi,
Gujarat, ,aryana, ,imachal radesh, Iarnataka, Ierala, Iolkata, Madhya radesh circle,
Maharashtra circle, Mumbai, unjab, $amil 2adu and Uttar radesh *?est. circle. In addition, it
also has fixed>line operations in the states of Madhya radesh and 'hhattisgarh, ,aryana, 3elhi,
Iarnataka and $amil 2adu and nationwide 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 IndiaAs mobile
$he 'ompany is also implementing a submarine cable project connecting 'hennai>!ingapore for
providing international bandwidth.
"harti +nterprises also manufactures and exports telephone terminals and cordless phones. #part
from being the largest manufacturer of telephone instruments, it is also the first telecom company
to export its products to the U!#.
"harti $ele>)enturesA strategic objective is Jto capitali0e on the growth opportunities that the
'ompany believes are available in the Indian telecommunications market and consolidate its
position to be the leading integrated telecommunications services provider in key markets in India,
with a focus on providing mobile services/.
$he 'ompany has developed the following strategies to achieve its strategic objective=
&ocus on maximi0ing revenues and marginsK
'apture maximum telecommunications revenue potential with minimum geographical
4ffer multiple telecommunications services to provide customers with a Gone>stop shopG
osition itself to tap data transmission opportunities and offer advanced mobile data
&ocus on satisfying and retaining customers by ensuring high level of customer
(everage strengths of its strategic and financial partnersK and
+mphasi0e on human resource development to achieve operational efficiencies.
"harti $ele>)entures current businesses include >
Mobile services
2ational and international long distance services
)!#$, Internet services and network solutions
"roadband services with 3!( and ?i>&i network
Com$ett-e "trengt)s
"harti $ele>)entures believes that the following elements will contribute to the 'ompanyAs success
as an integrated telecommunication services provider in India and will provide the 'ompany with
a solid foundation to execute its business strategy=
2ationwide &ootprint > approximately D6@ of IndiaAs total mobile subscribers resided in the
'ompanyAs fifteen mobile circles. $hese 59 circles collectively accounted for approximately 9:@
of IndiaAs land massK
&ocus on telecommunications to enable the 'ompany to better anticipate industry trends
and capitali0e on new telecommunications>related business opportunities.
$he strong brand name recognition and a reputation for offering high Euality service to its
Luality management team with vision and proven execution skillsK and
$he 'ompanyAs strong relationships with international strategic and financial investors such
as !ing$el, ?arburg incus, International &inance 'orporation, #sian Infrastructure &und Group
and 2ew 1ork (ife Insurance.
1rand Arc)tect&re?
"harti is working on a complex three-layered branding architecture M to=
'reate specific brands for each service,
"uild sub>brands within each of these services and
Use "harti as the mother brand providing the group its corporate identity as well
as defining its goal to become a national builder of telecoms infrastructure.

Airtel - $he flagship brand for cellular operations all across the Indian
Touchtel > $he brand earmarked for basic service operations.
India One > $he brand for national long distance *2(3. telephony
$hough the costs of creating new brands are heavy but the group wants to
create distinct independent brands to address different customers and
@1asc "er-ce
@Natonal Long
Brand Strategy :
$o understand the brand strategy, letFs first look at the brand building exercise associated with
#irtel M 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 wasnFt a mass market by any
means. &or the average consumer, owning a cellular phone was expensive as tariff rates *at -s < a
minute. as well as instrument prices were steep M sometimes as much as buying a second>hand
"harti could have addressed the customer by rationally explaining to him the economic advantage
of using a mobile phone. "ut !achdev 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.
JInstead of the value>proposition model, we decided to address the sensory benefit it gave to the
customer as the main selling tack. $he idea was to become a badge value brand,/ he explains.
!o the #irtel Jleadership series/ campaign was launched showing successful men with their
laptops and in their deluxe 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
3id it workN -epeated surveys following the launch showed that there were three core benefits that
were clearly associated with the brand M leadership, dynamism and performance.
$hese were valuable Eualities, 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 exercises showed that despite all these good things, there was no
emotional dimension to the brand M it was perceived as cold, distant and efficient.
!achdev and his team reali0ed that in a business in which customer relationships were the core this
could be a major weakness. $he reason with tariffs identical to competitor )odafone telecomm and
roughly the same level of service and schemes, it had now become important for "harti to
Jhumani0e/ #irtel and use that relationship as a major differentiation.
$he brand had become something like (ufthansa M cold and efficient. ?hat they needed was to
become !ingapore #irlines, efficient but also human. # change in tack was important because this
was a time when the cellular market was changing.
$he leadership series was okay when you were wooing the crOme de la crOme of society. 4nce you
reached them you had to expand the market so there was need to address to new customers.
"y that time, "harti was already the leading cellular subscriber in 3elhi with a base of 7.;; lakh *it
now has 5.< million customers.. #nd with tariffs becoming more affordable M as cell companies
started cutting prices M it was time to expand the market.
,ow could "harti leverage this leadership position down the value chainN !urveys showed that the
concept of leadership in the customerFs minds was also changing. (eadership did not mean
directing subordinates to execute orders but to work along with a team to achieve common
objectives M it was, again, a relationship game that needed to be reflected in the #irtel brand.
#lso, a survey showed that 9B per cent of the new customers choose a mobile phone brand mostly
through word>of>mouth endorsements from friends, family or colleagues. $hus, existing customers
were an important tool for market expansion and "harti now focused on building closer
relationships with them.
$hat is precisely what the brand tried to achieve through its new positioning under the #irtel
Touch Tomorro brand campaign. $his set of campaigns portrayed mobile users surrounded by
caring family members. !ays !achdev= J$he new campaign and positioning was designed to
highlight the relationship angle and make the brand softer and more sensitive./
#s it looks to expand its cellular services nationwide Mto eight new circles apart from the seven in
which it already operates M "harti is now reali0ing that there are new compulsions to rework the
#irtel brand, and a new exercise is being launched to this effect. -ight 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
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.
$o bring in new customers, the company decided that it needed to segment the market. 4ne such
experiment, launched last year, is 1outopia, a brand aimed at the youth in the 58 to 5D age bracket
and for those who are Jyoung at heart/. ?ith its earlier positioning, #irtel was perceived as a brand
for the well>heeled older customerK there was nothing for younger people. ?ith 1outopia, #irtel
hoped to reverse that.
In order to deliver the concept, #irtel offered rock bottom tariff rates *69 paise for 7B seconds. at
night to 1outopia customers M a time when they make the maximum number of calls. It also set up
merchandising exercises around the scheme M like a special portal for young people to buy things
or bid for goods.
$he company is now looking at offering other services at affordable prices to this segment which
include music downloads on the mobile and bundling !M! rates with normal calls to make it
cheaper for young people to use.
$he other experiment that "harti has worked on is to go in for product segmentation through the
$ango brand name. $he brand was created to offer mobile users Internet>interface services or what
is known as ?# *?ireless #pplication rotocol..
$he idea was to bring Internet and mobile in perfect harmony. J$he name was chosen from the
popular movie title It Ta!es To to Tango= basically, you need the two services to tango to offer
customers a new choice/, says !achdev.
$his, however, had less to do with the branding exercise as with inefficiency of service *accusingly
slow download speeds. and the limited utility of ?# services.
!ubseEuently, the ads were withdrawn, but the company re>iterated that the branding exercise
could be revived because $ango will be the brand to offer G-! services M or permanent Internet
connectivity on the mobile phone M which #irtel is expected to launch soon.
$he Magic
erhaps the more ambitious experiment has been with "agic M the pre>paid card. $he idea was to
make the brand affordable, accessible and, most importantly, feasible as a means of expanding the
market even faster.
#$AS% I &
Magic was aimed at bringing in infreEuent users of a mobile phone into the market and assure him
that he would have to pay only if he made a call. !uch a customer used the phone sparingly M
mostly for emergencies M and was not willing to pick up a normal mobile connection with its
relatively high rentals *pre>paid cards do not include rental charges..
$o achieve its objectives "harti did three things.
4ne, the product was made available at prices ranging from -s 7BB to -s 7,BBB with no strings
attached and was simple to operate.
$wo, 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.
$hird, to make the product more Japproachable/ to the customer, the company came with
vernacular ad campaigns
(ike "agic 'aalo Say $ello which appealed to local sensibilities.
$his apart, the company roped in Iarisma Iapoor and !hah -ukh Ihan for a major ad campaign
all across 3elhi, a ruse that saw the number of subscribers go up from 9.8; lakh to 5.6 million
today, overtaking +ssarFs branded pre>paid card Speed, which was launched much ahead of Magic.
$he company is now re>working its Magic strategy even further.
+arlier, the branding strategy was aimed at roping in only interested customers M 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.
$hat is why the new exercise is aimed at co>opting non>adopters. ?hile the exact strategy is under
wraps, insiders say the new branding strategy would be aimed at offering them value which they
had not perceived would be available from using a pre>paid card.
=:A"E // B
"harti used #irtel Magic to build a strong value proposition and accelerate market expansion
through IndiaFs first national pre>paid card $) brand campaign
&irst time ever in India > any pre>paid card brand goes on $)
# combination of the film genre exposed through the $) medium designed to connect with the
masses of India
1outh based > romance driven strategy platform makes the value proposition of #irtel Magic >
PMumkin ,aiF come alive
#ll elements > user imagery, context, tone % language created to connect the category to the
lives of the !+' " % !+' ' segment H the middle class non>mobile user.
#irtel Magic positions itself on the platform of being excellent for emergency situations >
increasing productivity as a part of everyday life.
!harukh Ihan makes Peverything in life possibleF while romancing pretty Iareena Iapoor
with #irtel Magic, IndiaFs leading pre>paid mobile card.
#irtel today unveiled its strategy for market expansion with the launch of its new #irtel Magic pre>
paid card brand campaign H PMagic hai to Mumkin haiF. $he strategy is targeted at the non>user
segment defined as young adults, 59>7B years of ageK in the !ec " % ' segment is aimed at
accelerating market expansion. $he value proposition is centered around a personFs desire to make
all his Q her dreams, ambitions % aspirations instantly possible. $he new campaign for #irtel
Magic is all about empowering millions of Indians to be on top of their lives.
$he brand is positioned to be relevant to the mass>market who want to make all their dreams,
hopes % desires come aliveR instantly. *#t just -s.7BBQ> per month #irtel Magic is so easy to
buy.. Improving productivity, letting you befriend the world and opening up new hori0ons. 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. $he new brand slogan PMagic hai to Mumkin
haiF has been specially created to capture this effectively.
$his strategy is designed to help us talk to this segment directly in the tone, manner % language of
the masses. $he JMumkin hai/ value proposition will help us expand the market and gain a higher
percentage of market shares in the process.
$he brand ambassadors !hahrukh Ihan and Iareena Iapoor embody this Pcan doF or JMumkin
,ai/ spirit *infact that is the reason they were selected as brand ambassadors.. !harukh rose from
a $) actor to become IndiaFs top film star and national heartthrob. IareenaFs success is due to her
PattitudeF, talent, hard work and the sheer ability to make a mark in such a short time. "oth these
stars have said PMumkin haiF and made it happen for themselves.
$he genre of this new strategy % campaign is ,indi cinema led. $his genre connects millions
across India. $he spirit of romance, dancingR the Indian cinema, well known to most as
"ollywood, holds millions of Indians together as one.
$he new $) campaign of #irtel Magic crafted in the ,indi film idiom, magnifies the empowering
optimism of JMumkin ,ai/, in the endearing situation of a boy>girl romance. ?here !harukh
Ihan, sets his eyes on Iareena Iapoor and wins her love with the help of #irtel Magic.
*oignantly conveying that special feeling we all get when a dream is made possible and a victory
of the heart is won..
$he strategy % new brand campaign is targeted at the large untapped base of intending mobile
customers from !ec #, " % '. $he estimated addressable market of such customers in the next
two years is around 69 million in #irtelFs 5: states. $he new strategy aims at correcting the
perception that the mobile category is useful mainly for PbusinessF or PworkF related scenarios.
$he new strategy, brand positioning % brand slogan is an outcome of an extensive nationwide
research and is an integral part of #irtel MagicFs new multi>media campaign. $he campaign has
been created by ercept #dvertising.
=:A"E /// B
"harti used #irtel Magic to build a strong value proposition and accelerate market expansion
through IndiaFs first national pre>paid card $) brand campaign
&irst time ever in India > any pre>paid card brand gives such freedom to recharge any value
# combination of the film genre exposed through the $) medium designed to connect with the
masses of India
1outh based > romance driven strategy platform makes the value proposition of #irtel Magic >
P#isi a0aadi aur kahanN/ come alive
!harukh Ihan Makes Peverything in life possibleF #irtel today unveiled its strategy for market
expansion with the launch of its new #irtel Magic pre>paid card brand campaign H PMagic ,ai to
Mumkin ,aiF. . $he value proposition is centered on a personFs desire to make all his Q her
dreams, ambitions % aspirations instantly possible. $he new campaign for #irtel Magic is all
about empowering millions of Indians to be on top of their lives.
$he brand is positioned to be relevant to the mass>market who want to make all their dreams,
hopes % desires come aliveR 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 hori0ons. 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. $he new brand slogan
P#isi a0adi aur kahanF has been specially created to capture this effectively.
Other Brand Building Initiati(es :-
$he main idea is to stay ahead of competition for at least six months. ?orking on the above game
plan "harti is constantly coming up with newer product offerings for the customers.
$he focus, of course, is to offer better Euality of service.
$o 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.
$o assist customer care personnel to deal with subscriber Eueries, a storehouse of 8B,BBB
freEuently asked Euestions and their answers have been stored on the computers.
"harti expects that most of its new customers *one estimate is that it would be :B to ;B per cent
of the total new subscriber base. would come from the pre>paid card segment. !o, they must be
given value>added products and services which competitors donFt 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. $o
ensure that customers donFt migrate to other competing services *which is known as churn and
ranges from 5B to 59 per cent of the customer base every month., the company is also working on a
loyalty program. $his will offer subscribers tangible cash benefits depending upon their usage of
the phone.
$he loyalty program will not be only for a Pbadge valueF, it will provide real benefits to
customers. $he idea is to create an #irtel community.
#nother key area which "harti is concentrating its attention upon is a new roaming service
launched in 3elhi 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.
$he company also offers multi>media messaging systems under which customers having a
speciali0ed phone with a in>built camera can take pictures and e>mail it to friends or store it in the
phone. $he cost per picture is between -s 9 to -s ;.
"harti is also aware that it has to make owning a ready>to>use cellular service much easier than
it is today. # key area is to increase the number of activation centers. +arlier "harti had 69B #irtel
'onnect stores which were exclusive outlets *for its services. and about 69B #irtel oints which
were kiosks in larger shops. 2ow activation can be done by all of them, and not only by 'onnect
outlets, all within 59 to 6B minutes. In comparison, the competition takes two to four hours.
re> paid cards are really catching up with the mobile phone users and it is actually helping the
market to increase. &irst, they are easier to obtain and convenient to use. Unlike post>paid, one
need not pay security deposits for picking up a pre>paid card. It is often available even with
paanwalas. #s befits a fast>moving consumer service, the game is now moving beyond price to
expanding distribution reach and servicing a well>spread>out clientele with technology and
strategic alliances. "harti is focusing on two factors to make pre>paid cards more attractive.
Ieeping the entry cost low for consumers and making recharging more convenience.
"harti is in the process of launching a new system in alliance with Mumbai>based 'ompany
)enture Info$ech which will enable a pre>paid card user to renew his subscription by just swiping a
card. $he system will not only save users the hassle of going out and buying a card every time it
expires but also enable mobile companies to reduce the cost of printing and distributing cards.
"harti $eleventures has tied up with A?aiter on wheels,A a company delivering food at home, to
reach its Magic pre>paid cards to subscribersA doorsteps. $he 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. $he company is constantly innovating to enhance the value proposition
for its pre>paid service. $hey are leveraging technology to expand their distribution network and
deliver round>the>clock recharge options to its M4$! *Mobile on the !pot. subscribers.
"harti 'ellular has also launched a special service, 'are$ouch, for high>value, corporate
customers, providing them with instant, single>point access for any assistance they reEuire.
'ustomers can dial ;;; and enjoy a slew of services, which includes easier payment of bills,
service on priority basis, and value>added services without any additional paper work. "harti
'ellular is offering a range of services without going through an interactive voice recorder ensuring
that they save time. 3edicated P'are$ouchF executives are expected to assist customers with any
service on priority basis. "esides the regular proactive reminder calls for bill payment, customers
can also call 'are$ouch for bill payments at free of cost.
#irtel presented "T) Inbo*+ the first Pon>airF !M! based interactive music dedication show
exclusively for #irtel and #irtel Magic customers. ,ighly interactive )C based show with real>time
feedback mechanism. "oth brands joined hands to target the high growth youth segment.
Bharti,s )ie on its Branding strategy:-
&irst, brand building efforts in todayFs context have to be seen in a more holistic manner.
3elivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.
Unflinching orientation to customer needs is the second key success factor. 'ustomers *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.
ro>active tracking of shifts in consumer behavior, anticipating redefined or emerging customer
needs, and then reacting in Jreal>time/ are essential to attract and retain customer loyalty M a key
element of creating brand eEuity in the present situation.
'ustomi0ing the product *and communication of its benefit. to meet the specific needs of various
consumerQcustomer sub>segments is the third 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. $his is not to say that
advertising and promotion are less relevant. 4n 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 Jreengineering/ of the business
philosophy and core design, production, and delivery operations for the product itself.
$he positive spin to this argument is that by first addressing the fundamentals, the enterprise itself
becomes more competitive. $his can be the beginning of a virtuous cycle wherein brand eEuity
continues to increase as the enterprise sustains delivery of an appropriate product or service at an
ever increasing value.
It is, however, crucial to note that in the years to come, not only will the cost of building a regional
or a national *or an international. brand will continue to rise but also the time taken to do so will be
longer and will need sustained and focused efforts.
Com$arson o( marketng strateges
1)art Artel and 0oda(one.
=&r$ose o( com$arson
$he sub main purpose of this report is to compare the marketing !trategies adopted by "harti
#irtel and its rival )odafone
$he comparison shows how both of the companies have been challenging each other to gain
market shares.
W)# com$arson wt) -oda(one
"harti #irtel is the leader in telecommunication sector.
"harti #irtel holds the lion share of market of communication sector.
,owever, )odafone has been giving tough competition to "harti #irtel.
)odafone is the second largest player and share holder in 'ommunication sector.
!ince its launch )odafone has been adopting aggressive marketing strategies.
$he comparison shows how ,utchison +ssar $elecom. 'aptured 66@ market share in one month
of its first launch of postpaid subscription in 6BB6.#3.
?ith a different technology )odafone creates its own market.
)odafone odafone. $oday deals in every business of communication sector.
)odafone making and changing the strategies to capture the market shares
1rand $ostonng +# 1)art Artel
"ar!et segmentation
Geographical segment *metropolitans % cities India.
3emographic segment > middle income groups
eople age group of 6B to 6< year
Target mar!eting
eople who living in cities and towns.
oor or middle income group people.
1oungsters in big cities.
'reating brands *!harukh khan % !achin $endulker.
#ds and promotions
romotion for study of poor childrens.
"ar!eting mi*
rice= low price strategy
lace= maximum outlets and service centers
roduct= verities available for various groups
romotion= various schemes for pre>paid and post>paid
0oda(one target t)e r&ral /nda
$he main targeted customers of )odafone are from rural India.
"y offering cheap and light mobile sets )odafone attracts most of the customers of small villages
and towns.
O((erng c)ea$ )andsets
)odafone offers cheap and free connections to all customers.
$he cost for these sets was -s>;DD><8D>5BDDSset and onward.
9ree s&$$ort and ser-ces
In every district and big towns )odafone opens its service centers to provide better support and
"trong logstcs and s&$$l# c)an
)odafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the )odafone !IM % !ets.
Targetng #o&ngsters n metro$oltans
)odafone attracts youngsters by offering colorful handset at very low prices.

"ar!et segmentation
Geographical segment *rural India.
3emographic segment > middle income groups
Target mar!eting
eople living in small towns and villages.
oor and middle income groups.
1oungsters in big cities.
'reating brands
#ds and promotions
"ar!eting mi*
rice = low price strategy
lace = maximum outlets and service centers
roduct = verities available for various groups
romotion= various schemes for pre>paid and post>paid

Ser(ices pro(ided by Bharti Airtel
Mobile services with G!M technology
&ixed>line connections
2ational and international long distance services
)!#$, Internet services and network solutions
"roadband services
Ser(ices pro(ided by )odafone .
Tmobile services with G!M technology
Tfixed>line telephone services
TUniversal Internetworking
T)oI *)oice over Internet rotocol.
TInteractive $elevision
T)isual 'ommunication
T"roadband ortal
#chieving accuracy in any research reEuires a deep study regarding the subject. $he prime
objective of the project is to compare #irtel with the existing competitor *)odafone. in the market
and the impact of ?(( on #irtel.
$he research methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. !econdary data has been used to
support primary data wherever needed.
#rimary data as collected using the folloing techni-ues
Luestionnaire Method
3irect Interview Method and
4bservation Method
$he main tool used was, the Euestionnaire method. &urther direct interview method, where a face>
to>face formal interview was taken. (astly observation method has been continuous with the
Euestionnaire method, as one continuously observes the surrounding environment he works in.

T#$e o( 3esearc) Met)odolog#

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$,+-+ $?4 $1+ 4& M+$,43 4& 3#$# '4((+'$I42 $,+-+ $?4 $1+ 4& M+$,43 4& 3#$# '4((+'$I42. .
-IM#-1 3#$# -IM#-1 3#$#
!+'423#-1 3#$# !+'423#-1 3#$#
#rimary data as collected using the folloing techni-ues
Luestionnaire Method
3irect Interview Method and
4bservation Method
$he main tool used was, the Euestionnaire method. &urther direct interview method, where a face>
to>face formal interview was taken. (astly observation method has been continuous with the
Euestionnaire method, as one continuously observes the surrounding environment he works in.
3#$# U!+3 &4- $,+ -+!+#-', ?4-I ?#! -IM#-1 I2 2#$U-+. 3#$# U!+3 &4- $,+ -+!+#-', ?4-I ?#! -IM#-1 I2 2#$U-+. =3/MA3< DATA =3/MA3< DATA? ?
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#23 $,U! ,#+2 $4 "+ 4-IGI2#$+3 I2 ',#-#'$+-. #23 $,U! ,#+2 $4 "+ 4-IGI2#$+3 I2 ',#-#'$+-.
6;E"T/ONNA/3E ";30E< 6;E"T/ONNA/3E ";30E< = =
I2 $,+ !$U3I+! # LU+!$I422#I-+ I! -+#-+3. $,+ LU+!$I422#I-+ I2 $,+ !$U3I+! # LU+!$I422#I-+ I! -+#-+3. $,+ LU+!$I422#I-+
'42!I!$! 4& 59 LU+!$I42!. '42!I!$! 4& 59 LU+!$I42!.
!+'423#-1 3#$# -+&+- $4 $,+ 3#$# $,#$ ,#! "++2 #(-+#31 !+'423#-1 3#$# -+&+- $4 $,+ 3#$# $,#$ ,#! "++2 #(-+#31
'4((+'$+3 .$,+ !+'423#-1 3#$#, ?,I', ,#! "++2 U!+3 $4 '#--1 4U$ $,I! '4((+'$+3 .$,+ !+'423#-1 3#$#, ?,I', ,#! "++2 U!+3 $4 '#--1 4U$ $,I!
!$U31, #-+ #! &4((4?= !$U31, #-+ #! &4((4?=
"44I!, C4U-2#(!, M#G#VI2+!, 2+?!#+-! "44I!, C4U-2#(!, M#G#VI2+!, 2+?!#+-!
I23U!$-1 -+4-$! I23U!$-1 -+4-$!
'4M#21F! I2$+-2+$ !I$+ '4M#21F! I2$+-2+$ !I$+
!4M+4$,+- -+(+)#2$ !$U31 M#$+-I#( #23 ?+"!I$+!.. !4M+4$,+- -+(+)#2$ !$U31 M#$+-I#( #23 ?+"!I$+!..
"AM=LE ;N/T "AM=LE ;N/T= > 3+(,I % 2'-. = > 3+(,I % 2'-.
$,+ -+!+#-', -4'+!! ?#! 342+ "1 I2$+-#'$I2G ?I$, 2UM"+- 4& $,+ -+!+#-', -4'+!! ?#! 342+ "1 I2$+-#'$I2G ?I$, 2UM"+- 4&
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'4(3 '#((I2G, '#24I+!, +$'. !#M(+ 3+!IG2 '42!I!$! 4& -#234M '4(3 '#((I2G, '#24I+!, +$'. !#M(+ 3+!IG2 '42!I!$! 4& -#234M
!#M(I2G. !#M(I2G.
"AM=LE "/DE "AM=LE "/DE= > 9B +4(+ = > 9B +4(+
&I+(3 -4'+3U-+ &4- G#$,+-I2G -IM#-1 3#$# I2'(U3+3 4"!+-)#$I42 #23 &I+(3 -4'+3U-+ &4- G#$,+-I2G -IM#-1 3#$# I2'(U3+3 4"!+-)#$I42 #23
I2$+-)I+? !',+3U(+ I2 ?,I', $,+ LU+!$I422#I-+! ?+-+ &I(+3 "1 $,+ I2$+-)I+? !',+3U(+ I2 ?,I', $,+ LU+!$I422#I-+! ?+-+ &I(+3 "1 $,+
I2$+-)I+?+-. I2$+-)I+?+-.
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3E"EA3C: /N"T3;MENT 3E"EA3C: /N"T3;MENT= =
LU+!$I422#I-+ LU+!$I422#I-+
=O/NT" =O/NT"= > = >
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I23U'I2G $,+ -+!423+2$! $4 '4>4+-#$+. I23U'I2G $,+ -+!423+2$! $4 '4>4+-#$+.
GI)I2G I2!$-U'$I42! #! $4 ?,#$ I! 2++3+3. GI)I2G I2!$-U'$I42! #! $4 ?,#$ I! 2++3+3.
I3+2$I&1I2G $,+ 2++3! $4 "+ I24?2. I3+2$I&1I2G $,+ 2++3! $4 "+ I24?2.
A +re( )stor# o( Tele sector n /nda
In the early 5DDBs, the Indian government adopted a new economic policy aimed at improving
IndiaAs competitiveness in the global markets and the rapid growth of exports. Iey to achieving
these goals was a world>class telecom infrastructure.
In India, the telecom service areas are divided into four metros *2ew 3elhi, Mumbai, 'hennai and
Iolkata. and 6B circles, which roughly correspond to the states in India. $he circles are further
classified under G#,G G"G and G',G with the G#G circle being the most attractive and G'G being the
least attractive. $he regulatory body at that time M the 3epartment of $elecommunications *34$.
M allocated two cellular licenses for each metro and circle. $hirty>four licenses for G!MDBB
cellular services were auctioned to 66 firms in 5DD9. $he first cellular service was provided by,
Modi $elstra in Iolkata in #ugust 5DD9. &or the auction, it was stipulated that no firm can win in
more than one metro, three circles or both. $he circles of Cammu and Iashmir and #ndaman and
2icobar had no bidders, while ?est "engal and #ssam had only one bidder each.
In 5DD:, the $elecom -egulatory #uthority of India *$-#I. bill was introduced in the (ok !abha,
and the president officially announced the $-#I ordinance on 69 Canuary 5DD;. $he government
decided to set up $-#I to separate regulatory functions from policy formulation, licensing and
telecom operations. rior to the creation of $-#I, these functions were the sole responsibility of
the 34$.
,igh license fees and excessive bids for the cellular licenses put tremendous financial burden on
the operators, diverting funds away from network development and enhancements. #s a result, by
5DDD many operators failed to pay their license fees and were in danger of having their licenses
withdrawn. In March 5DDD, a new telecom policy was put in place *2ew $elecom olicy W2$X
5DDD.. Under this new policy, the old fixed>licensing regime was to be replaced by a revenue>
sharing scheme whereby between <>56 percent of cellular revenue were to be paid to the
I.'IA. /%0010A2 "A23%T - %A20I%2 2OA'B0O/3S A.' T$%I2 2%SO01TIO.
Indian 'ellular market immediately after the first round of licensing in 5DD8>D: was beset by
several problems for 7 > 8 years till the 2ew $elecom olicy of 5DDD was announced. !ome of
these roadblocks Q current position is tabulated below=
C;33ENT =O"/T/ON
High license fees
Migration to revenue sharing mode in 5DDD mitigates high initial fund reEuirements for payment of
license fees.
InadeEuately funded businesses Q weak and fragmented promoters
"usinesses that have since been adeEuately funded growing at over :B@ per annum, while
businesses with weak promoters continuing to languish > spate of acEuisitions Q mergers, with 8Q9
major groups emerging in the last oneQtwo years.
Regulatory authority not in place
$elecom -egulatory #uthority of India *$-#I. firmly in place, and its role being accepted by all
operatorsK 3eptt of $elecommunications *34$. 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
Interconnect terms since rationali0ed, risks on pass through income to 34$ Q ",#-$I
*Mahanagar $elecom 2igam (td.. resolved to the satisfaction of all parties with changes in
methodology Q revenue sharing, intra circle long distance allowed, spectrum availability cleared
with vacation of freEuencies for usage by G!M operators.
#roblems in 4inancial closures due to:
(icensing tenure of 5B years
(arge upfront cash reEuirements from promoters due to heavy license fee burden in initial
stages of deployment #sset based financing approach by Indian &inancial Institutions.
(icensing tenure increased from 5B to 6B years
(arge upfront cash reEuirements for license fee payments mitigated with migration to
revenue sharing mode allowing promoters to deploy more capital for capital expenditureK project
financing being considered by most financial institutions.
4oreign onership 5 change of partner limitations
&oreign ownership norms clarified, and change of partners allowed as a matter of routine allowing
ease of entry Q exit > paves the way for full control of businesses by foreign companies.
InadeEuate growth of market Q subscribers
-oadblocks spelt out earlier resulted in low market Q subscriber growth, but with corrective
measures taken, market Q subscriber base expected to 0oom.
6.6 '%)%0O#"%.TS I. T$% /%0010A2 I.'1ST27
$he interconnection regime between cellular operators and fixed>line operators is still biased
against the former.
3espite the recent gains of the cellular industry, not everything is rosy. $he cellular penetration
rate is still very low at B.< 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 5DDD alone, !wisscom pulled out
from !terling 'ellular, $elstra from Modi $elstra and both the $elecom 4rgani0ation of $hailand
and Casmine International from C$ Mobile. In 6BBB, $elecom Malaysia sold its stake in Usha
Martin $elecom, and both !hinawatra of $hailand and "e0eE exited from &ascel. In Cune 6BB5,
"ritish $elecom exited from "harti 'ellular. "ell !outh International has also indicated its
intention to pull out from !kycell 'ommunications, and ,ong Iong>based 3istacom is seeking to
sell its stake in !pice 'ommunications. &irst acificAs *based in ,ong Iong. continued
commitment to +scotel is uncertain, and the former is reviewing various options.
$he string of sell>outs notwithstanding, there has been a merger and acEuisition wave sweeping
across the Indian cellular industry in recent years. ,ong Iong>based ,utchison ?hampoa, via
,utchison $elecommunications *,I., acEuired major stakes in !terling 'ellular *3ecember 5DDD.,
Usha Martin $elecom *mid>6BBB. and &ascel *!eptember 6BBB.. $hrough a partnership with local
company, Iotak Mahindra &inance, ,utchison ?hampoa practically controls &ascel and Usha
Martin $elecom, thus circumventing the 8D percent limit on foreign ownership in Indian cellular
operators. ,utchison ?hampoa is also the controlling shareholder of ,utchison Max $elecom. 2ot
to be outdone, "harti +nterprises M another major cellular player M acEuired control of C$
$elecom, which was later renamed "harti Mobile *3ecember 5DDD., and !kycell 'ommunications
renamed "harti Mobinet *#ugust 6BBB.. "harti also acEuired the unjab license of +ssar and
started operations, giving competition to the lone operator there, !pice 'ommunications. Going
forward, "harti is likely to merge all its cellular companies into one entity.
&ive companies together bid -s5:.7 billion to bag the licenses for the fourth operator slots in four
metros and 57 circles. "harti emerged as the 2o. 5 bidder with eight new licenses, followed by
+scotel with four, ,utchison with three, and )odafone and Idea cellular with one each. "harti and
,utchison have already commenced operations in all the circles while Idea is set to launch in
3elhi. +scotel and )odafone have not made any headway.
",#-$I, the third cellular operator for 3elhi and Mumbai, started services in March 6BB5. "!2(,
as the third nationwide cellular operator, launched services in Iolkatta and "ihar in Canuary 6BB6.
$his was followed by $amil 2adu in Culy 6BB6. # nationwide launch was scheduled for 6 4ctober
6BB6. ,owever, this has been postponed until after mid 4ctober. 4nce "!2( rolls out its service,
most telecom circles will have four cellular operators. $here will be tremendous competitive
pressure, which will result in lower tariffs. &uture rate cuts are expected, which will drive demand,
together with falling handset prices and the introduction of prepaid services.
In the midst of declining interest in technology stocks, "harti came out with its long>awaited initial
public offering *I4. in Canuary 6BB6. (everaging on the success of its cellular service, the
company got a very good response from the primary market. $he total si0e of the I4 was 5<9
million shares at a floor price of -s5B. $he issue was oversubscribed by more than 6.9 times,
netting -s<.7 billion. $his will be used to fuel its investment in long>distance, basic and cellular
#s of 4ctober 6BB6, only "( Mobile has launched commercial general packet radio service
*G-!. in Mumbai. ,owever, large>scale uptake remains elusive. ?hile both "harti and Idea have
G-!>enabled networks, there is caution on their part to launch the service. ?ith hardly any
applications, the success of G-! remains a Euestion.
In 6BB9 ,utchison +ssar an Indian and hongkong telecommunication alliance was taken over by
the United Iingdom based telecommunication company name )odafone telecomm services and
comes with the name of )odafone essar.
)irgin mobile comes in Indian $erritory with the alliance of $#$# telecommunication Maharashtra
in 6BB<.
Mitsubishi a Capanese telecomm services *M$!. company comes in India in 6BBD and take over
first rainbow in -ajasthan with '3M# network criteria.
Building (isibility and aareness
3eviating from competing on the price platform, cellular operators are actively promoting their
brand and service portfolio through high>visibility advertising and promotional campaigns.
'ellular operators like "harti, 4range and "( Mobile have been advertising aggressively on
hoardings and kiosks. ublic transport like the city
rail system and cabs are used widely to carry the message of mobility.
'ustomer>focused activities are gaining traction among cellular operators with the establishment of
longstanding consumer benefit programs. 4range in Mumbai offers G4range ,olidaysG and
G4range Monsoon 4ffersG at very attractive rates and added benefits like discounts on airfare, food
and beverages, among others. 4thers offer special privileges in retail outlets, cinemas and music
%nterprise mobile applications 8 promising re(enue stream
#ll along, customer acEuisition and the top line have been the focus. &ew operators have
concentrated on offering differentiated services for businesses. ,owever, as operators reali0e that
offering basic voice and !hort Message !ervice *!M!. will get them the numbers but not the
margins, some are now seriously looking at the enterprise segment for provisioning superior
'ost>centered solutions like closed user group *'UG., 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 of introducing a facility to fleet management companies so that they can improve the
efficiency of trucks or buses by tracking movement and ensuring higher>use, accurate route
planning. remium automakers are also installing a global system for mobile communications
inside a vehicle to help trace lost vehicles and track down stolen cars.
'orporations can choose enhanced services like user>defined call routing to prevent misuse. 'alls
can be barred, limiting access to select numbers and diverting calls to one single number.
"roadcasting services are also Euite popular, especially among fast food centers that have a central
number. Group !M! is Euite popular, especially among enterprises both in the service as well as
the fast>moving consumer goods *&M'G. 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 !M! service very useful to forward
transactional alerts to their customers.
6.9 41T12% T2%.'S A.' '%)%0O#"%.T
$here will be more competition, forcing operators to constantly focus on differentiations to
maintain their lead.
$he implementation of enhanced networks like 6.9G will enable operators to offer data
services. $his is an opportunity to customi0e and differentiate better.
$he entry of state>run operators like "!2( and ",#-$I means that prices will no longer be
controlled, thus there is less chance of a cartel being formed.
2etwork coverage in terms of geographic spread and Euality of coverage is crucial especially
for the business subscriber.
$he bigger the service providerAs national presence, the better it is for businesses. 4n the
roaming front, signing up with a national operator is advantageous.
(imited mobility wireless in local>loop services *by fixed network service providers. will be a
disadvantage for cellular operators in the short term. 'onseEuently, operators need to streamline
their customer relation activities and adopt aggressive subscriber acEuisition and retention
6.: 2%;10ATO27 ISS1%S
$he operations of this sector are determined as under the Indian $elegraph #ct of 5<<9. #
document buried in the sands of time. $he next major policy document, which was produced, was
the 2ational $elecom olicy of 5DD8, a conseEuence of the on going process of liberali0ation.
1ear +vent
5<95 &irst telephones in India
5D87 2ationali0ation of telephone companies
5D<9 34$ was created
5D<: 'reation of ",#-$I and )!2(
5DD5 $elecom eEuipment liberali0ed
5DD8 (icenses for paging
5DD8 $elecom policy announced
!eptember 5DD8 Guidelines for private sector participation in basic services
2ovember 5DD8 'ellular licenses issued for metros
3ecember 5DD8 $enders for cellular licenses in 5D cities apart from 8 metros
Canuary 5DD9 $enders for 6nd operator in basic services apart from 34$
on circle basis.
#ugust 5DD9 )!2( launches Internet services
Canuary 5DD: $-#I formed
2ovember 5DD< Internet policy announced
$he 2ational $elecom olicy of 5DD8 document, which laid out broad policy guidelines rather than
a series of action points. (ike other policies, it sought to achieve the impossible in finite time like
improve Euality of service and its availability, wide coverage *a phone in every village., at
reasonable rates, etc. $he targets in Euantifiable terms were installation of D.9mn additional lines,
telephone on demand by 5DD;, and a '4 pop of 9BB. $he +ighth lan had also allowed private
operators in value added services. $o facilitate licensing, the nation was divided into 6B circles
*akin to a state. for basic and 65 circles for cellular telephony. Mumbai falls in Maharashtra circle
and 3elhi in itself a circle.
$he basic premise on which competition has been introduced is that every circle will have one
private operator apart from 3o$Q ",#-$I for basic and two operators for cellular. 3o$Q ",#-$I
have the option to become the third cellular operator in future.
Government did not achieve most of its stated targets. $he basic theme, which was broadening the
reach of telephony in India, has not been met. +ven liberali0ation policies were not implemented
properly. $he regulator $-#I was set up after delays and confusion and even after its creation,
3o$ continued to fight with it in courts. It was also affected by the resource crunch, and financing
options like "4$, "44$ and "4($ was not used at all. $he major policy direction it showed was
to allow private sector entry in both basic and value added services. $he intention, though noble
failed to achieve its goals because of improper implementation, the economic costs are still borne
by the end user.
$he telecom sector has witnessed some fundamental structural and institutional reforms in the past
decade. $elecom eEuipment manufacturing was completely deregulated in 5DD5. )alue>added
services *including cellular services. were thrown open to private sector participation in 5DD6.
"asic services were opened to private participation in 5DD8 by dividing the country into 65 telecom
'ircles and allowing one private operator per 'ircle to compete with 34$. #n independent
telecom regulatory #uthority of India was set up in 5DD;. # new olicy for Internet !ervice olicy
roviders *I!s. was announced in 5DD< allowing independent service providers to enter the sector
ending the earlier monopoly of )!2(. -eorgani0ation of 34$, separating policymaking function
and service provision and corporati0ation of 34$As operational network are two major institutional
reforms, which need to be implemented.

Scope of the study
E $o conduct this research the target population was the mobile users, ?ho are using G!M
E $argeted geographic area of 3elhiQ 2'-. !ample si0e of 9B persons was taken.
E $o these 9B people a Euestionnaire was given, the Euestionnaire was a combination of both open
ended and closed ended Euestions.
E $he date during which Euestionnaires were filled.
E !ome dealers were also interviewed to know their prospective. Interviews with the managers of
G!M service providers were also conducted.
Y &inally the collected data and information was analy0ed and compiled to arrive at the conclusion
and recommendations given.
Sources of secondary data
Used to obtain information on, "hartiFs history, current issues, policies, procedures etc, wherever
Y Internet
Y Maga0ines
Y 2ewspapers
Y Cournals
Y "harti 'irculars !tore
Y "harti 2ews (etters
Y )odafone !tore
Y )odafone Ministore
Data anal#ss
Subscriber numbers in (mn) held by Vodafone and Airtel
8&neB4% "e$B4' DecB4* MarB4. DecB4. MarB42
Artel 3.12 !.'2 %.%4 '.%! 14.2. 1!.4*
0oda(one 1..2 !.12 '.2! *.2' 14.!% 12.22
"o&rce T3A/?

O$erator Market s)are
Market s)are
"harti #irtel 5D.B: 66.8D
)odafone 65.<5 5:.D:
)odafonecomm 5;.B7 5:.B5
Idea 'ellular 5B.89 <.8D
Age Gro&$ Gra$)
#s we can see from the above graph, the people who are in the age group of 65>6< years are the
ones who are the maximum users of mobile phones. $his segment is the one which gives
maximum business to the mobile operators. $his segment constitutes the young executives and
other office going people. $hey are :9@ of the total people who were interviewed. $he next age
group are the
people who are 6<>79 years old. $hey are 6B@ of the total. $hey are those who are at home or
have small business units etc. #nd the next age group is the youngest generation who are 59>65
years old. $hey are school and college going students and carry mobile phones to flaunt. $hey are
59@ of the total interviewed people.
Occ&$aton Gra$)
#s the above graph shows that 99@ of the total people interviewed are working. !o, these people
are the ones who are the maximum users of mobile phones. $hey are the young executives,
managers, $ele > callers etc. who reEuire mobile for their official purposes. $he next category is the
households, who are either housewife, small units which operate from their homes etc. $hey are
6B@ of the whole. $he next segment is the students. $hey are 59@ of the whole. #nd 5B@ of the
whole is categories who are the professionals.
"er-ce =ro-der Gra$)
$hese are the total market share of mobile user or people captured by the mobile provider
company. $here two major company in mobile phone service sector )odafone and #irtel who
respectively hold the market share with other company as 5;@ and 6B@ of total market user
segment of mobile customer.
C&stomer "er-ce At Artel Gra$)
#s the above graph clearly shows that customer services at #irtel seems poor. :B@ of the people
are dissatisfied with the customer services provided by #irtel. $hey are the ones who have the
maximum share in the market but they are lagging behind in the customer services. 5B@ of the
people were fully dissatisfied with the customer services of #irtel. $his could leave an impact on
the mind of the consumer. ,e can even switch over his brand. 6B@ of the people seemed partially
satisfied with the customer services and only 5B@ seem to be fully satisfied with #irtelFs customer
services, which is a very small amount.
T#$e O( Card Gra$)
'ash cards seemed Euite popular among the people interviewed. <9@ of the total mobile users
were having cash card connections. $his means that the cash cards should be easily and readily
available in the local markets. #irtel should make sure that Magic is available in each and every
nook and corner of the market. 59@ of the people were having sim connections which is the
regular bill.
Mont)l# e>$ense gra$)
eople on an average spend -! 9BB per month as their mobile phone expense. :8@ people spend
this amount. 68@ people spend -! 7BB per month as their monthly mobile expense. #nd the
remaining 56@ had an expense more than -! 5BBB, they could the ones having sim connections or
having cash cards and having a lot of business calls on their mobiles.
Monthly Ex!n"!
R" #00
R" $50
R" 200
Awareness A+o&t WLL Gra$)
?(( seemed to be a new word for many of the people. 89@ of the people were not at all aware of
such a technology. !o, in order to get the answer for this Euestion they were first explained the
concept. 4nly, 99@ people knew what ?(( is all about.
Aareness of <00 #layers ;raph
)odafone was the brand which was popular amongst the interviewed people. #s )odafone had
done so much advertising and has it banners and hoarding spread all over 3elhi. !o, this could be
one the reasons of its popularity. $ata was hardly a known brand in this new field. ossibly,
because of less promotions done by them as compared to )odafone.
4n the basis of analysis of the Euestionnaire I have found that the maximum no. of people who
use mobile phones is in the age group of 6B to 6<. ?ho are the young executives and other office
$hey spend a maximum of -! 9BB as their mobile expense.
$here is more no. of prepared cards than post paid cards. $he mobile users want to spend money
side by side than to spend money at the end of the month on a big bill.
2ow when I compared #irtel with its competitor from the point of view of the consumer I found
that on the basis of $ariff plan, value added services and billing accuracy #irtel is at par or ahead
of its competitor but in the case of customer care and availability they lag behind there
competitors. #s, #irtel has a hold in the market because it has the maximum no. of connections, so
it must improve upon it customer services. #s far as ?(( is concerned people are aware about it
but not many people are aware about $ata. $hey only know more about )odafone. eople at this
point of time are not interested to switch over from G!M to ?((
'ustomer -esponse towards
?hich "rand you, prefer mostN
,ow long you have been using this roductN
B>6 1ears
6>9 1ears
9>5B 1ears
More than 5B years
'onsumers response shown in chart for usage
#re you using other product with #irtelN
,ere are the customer responses about the use of the #irtel product and other
product rather than #irtel.
in this segment of survey :; @ of customer are aspire with #irtel and 77 @ shown
interest in other telecom products in urban areas.
3o you collect any information search before making
"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, superior Euality products and an enviable distribution
It has a clear and well>defined organi0ation structure and limits of financial
Increase in advertisement spends affect the companyFs margins.
$he companyPs bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.
(ittle efforts over the #dvertising of products.
3istribution channel is not accurately categori0ed.
remium priced products, hence canFt compete in low price segment.
2o separate strategy for rural market.
$he companyA s financial performance can receive a major boost from its cost
reduction efforts.
$here is a lot of scope of product and market diversification.
+xports of products will also have huge chances in the coming years.
#irtelFs business has ample scope for gaining market share from the unorgani0ed
sector. -ural penetration too holds vast potential to bring about growth.
$he slowdown in the economy has restricted topline growth of most &M'G majors and
for #irtel also it will be difficult to maintain historical growth rates in such a depressed
'ompanyFs major raw materials are influenced by government policies Q controls as well
as vagaries of the monsoons. &luctuations in the prices of raw materials would have
significant impact on costs and margins of the company.
Moreover, inordinate hike in "road "and Internet products would also increases
companyFs production and distribution cost.

2o project is without limitations and it becomes essential to figure out the various constraints that
we underwent during the study. $he following points in this direction would add to our total
5. 3uring the study, on many occasions the respondent groups gave us a cold shoulder.
6. $he respondents from whom primary data was gathered any times displayed complete
ignorance about the complete branded range, which was being studied.
7. (ack of time is the basic limitation in the project.
8. !ome retailersQwhole sellers refuse to cooperate with the Eueries.
9. !ome retailersQwholesalers gave biased or incomplete information regarding the study.
:. Money played a vital factor in the whole project duration.
;. (ack of proper information and experience due to short period of time.
<. !ome retailers did not answer all the Euestions or do not have time to answer.
&ollowing are the few suggestions to A/3TEL for improving the market share and image of the
products concerned.
1. =3OD;CT
ZModification must be brought about in #I-$+(, in terms of Euality. Its demand should be
2. =LACE
Z $he brands must be made available easily in, '4 % general stores.
3. =3OMOT/ON
Z'ompany must undertake extensive promotional activities like advertisements must be released in
different Medias to create brand awareness.
Z&ree samples should be distributed among the prospects. !ales promotion tools like gifts, contests
and coupons must be given to retailers as well as customers and prospects.
Z 'atalogues should be distributed among customers.
!. =3/CE
Z rice should be as competitive as other company maintains
Z 3istribution of new connection should be in reach of customer pocket
#fter analy0ing the findings of the research, I can conclude that #irtel lagged behind its
competitors as far as customer service and availability is concerned. $he maximum no. of people
who use the mobile is in the age group of 6B to 6<. 'ash cards are the most popular type of mobile
connections, as they are consumer friendly and recharging the connection is not a problem.
Maximum no. of people spends -! 9BB on their connections. #s #irtel is the only company having
the maximum no of mobile connections so it must seriously look into the loop holes of the existing
customer service department.
#s we know that now #irtel has already launched its product with logo JF #isi a0aadi aur kahan/F
has already became popular in market. !o 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 )odafone. )ery 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 ;B@ of population of India
lives in these areas.
$he other segment may be costumers of all age groups.
I have made following recommendation to the company after doing the summer training there=
$he company should modify its credit policy as they only target the cash paying customers
who are not easy to trace.
$he company should emphasis more on the Euality of harmaceuticals roducts it was
mostly claimed by the exporters that their receipts from company doesnFt matches with the
sampleFs Euality shown before giving orders.
$he company should make its marketing strategy flexible enough in order to face
$he company should keep an eye on the proper delivery of the goods to exporter on time,
as it has been recommended by exporters to make the delivery on time.
$he company rate policy must be flexible enough to catch new customers because if
company offers lower price to a new customer then he may continue buy the goods and can be a
permanent customer for the company.
$he company should offers such rate in the market so that it may able to catch a bigger
market share and it should be able to compete with the local traders and commission agents while
having a brand name.
$he company should take the opinion of exporters from time to time to know what problems they
are facing from the companyFs side. #nd if any change they reEuire in present supplying
In this project report, while finali0ing and for analy0ing Euality problem in details the following
"ooks, Maga0inesQCournals and ?eb !ites have been referred. #ll the material detailed below
provides effective help and a guiding layout while designing this text report.
1ooks ?
rinciples of Marketing Hhilip Iotler % Ievin keller edi. 56
Market -esearch H 3.3. !harma
-esearch Methodology H '.-. Iothari
http=QQwww.blonnet.comQ6BB8QB:Q6:QstoriesQ6BB8B:6:B65<B;BB.htm, Mumbai, Cune 69, 6BB8.
comQcompaniesQcompanies[rQ)odafone[infocomQ6BB755B8[stop>roaming.htm, 8 2ovember 6BB7
3omain, Missed 'all, at http=QQwww.domainb
#irtel *6 Culy to 5B Culy 6BB8.
#irtel India page of ,$ paper *$hursday 53ecember 6BB8.
'owards India *6: 3ecember to 8 Can. 6BB8.
3ear !irQMadam,
I Umesh Garg, student of M"# of "hawani !hankar #nangpuria institute of
technology % management, &aridabad. I am doing my project on JCom$arat-e anal#ss o(
marketng strateg# o( 0oda(one and ArtelH. lease give your precious time for filling these
L.5 2ame those companies which provide telecom services now a daysN
L.6 which mobile company services you are using now a daysN
L. 7 #mong them, which "rand you, prefer mostN

L.6 ,ow long you have been using this roductN
B>6 1ears
6>9 1ears
9>5B 1ears
More than 5B years
L.7 #re you using other product instead of #irtelN
L.9 how would you rate the experience with "randN

+xcellent Good #verage "elow #verage
L.: 3o you collect any information search before making purchaseN
L.; If yes, which sources are usedN
!ales +xecutives
4perators reference
amphlets and catalogue
-eference from friends and relatives
#ny other
L.< ?hat are the features you look for in a product before making purchase decisionN Give
preferences *5>,ighest, :> least.
"rand credibility
rice and 3iscount
#fter sales services and parts, network
)alue for money
)ehicle performance
#dd on features or ergonomics of design
L.D. ?hich of these marketing Q sales schemes attracts you while purchasing any connectionN
Good 2etwork
3iscount scheme
!ervice package
#ny other
L.5B If you have to purchase a new connection or product in near future, which "rand will you go for
and whyN

L.55 #re you aware of various promotional activities being run by #irtel, if yes then howN
#re you satisfied with these promotional activitiesN
'ustomer 'are
"y #d &ilms
"y 'amp
68 hrs call center services
!atisfied !omewhat
L.56 ,ow would you rate #irtel performance as your expectation on 9 points scale *9
5 6 7 8 9
#fter !ale service
roduct as per expectation
L.57 ?hat are you suggestions for improving the product Euality, service availability and parts