Institute of Management and Entrepreneurship

Development
Erandwana, Pune

Executive Summary

The focus of this project would be to conduct a market assessment exercise to gauge
and tap the full market potential of hotspot WiFi internet connectivity in India and
based on this develop a comprehensive and fail safe marketing plan for the launch of
“GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel -
Microsense.

World over the communication needs of individuals are drastically increasing. People
want internet connectivity wherever and whenever they move. Dipping prices of
Wireless devices and equipments has resulted in the growth of number of hotspots
with global hotspot growth projected at approximately 20% (CAGR). (Source: In-Stat,
BTSL Analysis)

According to a Gartner study report, the number of worldwide Hotspot users in 2006
was a whopping 30 mn! The total number of WiFi hotspots in the world by 2010,
according to In Stat/MDR is expected to touch 200,000!

A similar trend is expected in India. Intel is looking at facilitating 1000 hotspots in

2008. Microsense & Dishnet are other players upbeat about hotspots. The Indian
Hotspot growth is projected at approximately 70% (CAGR)! (Source: In-Stat, BTSL
Analysis). Southern India has the highest hotspot penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.

However, the company feels that currently the growth in usage in limited primarily
due to stock-outs of scratch cards, limited validity of 24 hrs in most cases &
unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.

A secondary research was conducted to carry out an assessment of the external

economic environment for the industry. While huge prospects are revealed by experts
regarding the internet WiFi connectivity, many have also been caustic towards the
government’s laggardness in providing the right kind of support to the industry.
A primary survey was conducted whereby 250 WiFi users and 10 hotspot retailers
were interviewed. The findings were in line with our environmental assessment. A
market assessment exercise carried out revealed that the current level of business
could it self are as high as 315 Crores annually this is growing at more than 25% p.a.

We conducted a SWOT analysis to form the basis for accurate design of the marketing
mix. Segmentation on the basis of lifestyle was done and 4 segments were identified
to be targeted. While our positioning would be that of a first mover or pioneer our key
differentiators would be roaming and continuous connectivity.

4 pakages of products have been decided based on the requirement of each segment
and their usage patterns. Pricing has been kept around the same as customers have
expected in the survey. Pricing has been done on MBs downloaded basis and on
minutes of usage basis. Detailed effort has been taken to take branding into account. A
new brand under the umbrella brand Airtel would be created namely Airtel E-
connect. It will have a logo similar to the umbrella brand logo.

The distribution would be handled by the same set of distributors Airtel currently
holds. The promotion plan has been decided in broad sense. Exact media plan etc
would be taken at the time of actual implementation. Some additional manpower
would have to be hired at the higher level I order to keep focus on the emerging
business. Detail service delivery process has been discussed and physical evidences
have been listed.

A detailed financial analysis has been carried out taking into account all costs and
other factors. The break even period arrives in the third year of operation. The venture
would require an initial investment in fixed assests of slightly over 3 Crores in
addition to utilize the existing set up.

The service is to be pilot tested in Bangalore and Mumbai and the launched in nine
other cities in India in the first phase. I the second phase we plan to move abroad also
thus the implementation is a two stage process spread over a period of two years.
 ACCREDIATED BY NACC WITH ‘A’ GRADE

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT AND
ENTREPRENEURSHIP DEVELOPMENT, PUNE
PAUD ROAD, ERANDWANE, PUNE – 411038

CERTIFICATE
This to Certify that Mr/Mrs/
…………………………………………………… is a bonafide
student of…………………… Programme of the university in this
institute for the year………………………..
As part of university curriculum he /she has completed a
study project titled…….
……………………………………………………………………………………...
………………………………………………………………………………………
During the period
from…………………………………………………………
The project is prepared by the student under the guidance
of Prof……
……………………………………………………………………………………...
Dr.Nitin Nayak Prof. Vinod Ingawale
(Teacher Guide) (Course
Coordinator)
Date:-…………….
Place:-……………

Date: 7th May 09

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Anand Mohan student of Institute of

Management & Entrepreneurship Development, Pune has successfully
completed the project on “Developing a Marketing Plan for the
Launch of GSM-Wi-Fi Hotspot Internet Connectivity with e-top up.”
with Airtel Limited. from 1st March 09 to 4th May 09..

Please note this project was done for the partial fulfillment of MBA
degree. We wish him success in his future endeavour.

Regards,

(Mr. Shailesh Ranjan)

Sr.Manager
Airtel Limited.
 Acknowledgement

I owe my special thanks to Dr. Nitin Nayak my project

guide for his creative and invaluable guidance.
I feel great pleasure in expressing my deepest sense of
gratitude of sincere makes to Mr. Shailesh Ranjan Sr.
Manager of Airtel Ltd. for giving me to complete this
internship program and this project work.
I also extend my thanks to all staff member of
Management Department, Bharati Vidyapeeth
University’s Institute of Management and
Entrepreneurship Development, Pune who helped me in
several ways to successfully complete this project.
 INDEX

Sr. No. Particulars

1 Executive Summary

2 Section – I : Introduction, Objective, Approach & Methodology

3 Section – II : Environment Assessment

4 Section – III : Market Assessment

5 Section – IV : SWOT Analysis

6 Section – V : The Marketing Plan: Need Identification, STPD, 7P

Marketing Mix

7 Section – VI : Plan of Implementation

8 Section – VII : List of References

9 Section – VIII : Annexure

 Section I

Introduction to the Project

 About the organization Airtel – Microsense

Airtel – Microsense is a joint venture between Airtel, which is a Bharti group

company and Microsense which is a currently existing Wireless Internet Service
Provider (WISP) in the country.

AirTel comes from Bharti Cellular Limited - a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises. Bharti Enterprises has been at the forefront of
technology and has revolutionized telecommunications with its world class products
and services. Established in 1976, Bharti has been a pioneering force in the telecom
sector with many firsts and innovations to its credit.

Bharti provides a range of telecom services, which include

Cellular, Basic, Internet and recently introduced National Long
Distance. Bharti also manufactures and exports telephone
terminals and cordless phones. Apart from being the largest
manufacturer of telephone instruments in India, it is also the first
company to export its products to the USA.Bharti is the leading
cellular service provider, with a footprint in 16 states covering all
four metros. It has over 13 million satisfied customers.

Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals
under its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of
India's finest companies, and its flagship brand 'Airtel', has over 18 million customers
across the length and breadth of India.

Bharti Tele-Ventures Ltd is India's leading provider of telecommunications services.

The company has 4 distinct Business divisions - Mobile & telephone services,
broadband services, long distance services and enterprise services.

The services provided by Airtel include Airtel Prepaid, the Ready Cellular Card from
Airtel, Airtel Post-paid, Airtel Roaming which allows you to use your mobile phone
to make or receive calls from almost anywhere in India and abroad & Long Distance
the facility which allows you to make long distance calls in India and Overseas from
your cellular phone.

Microsense provides WAN and WiFi Solutions in India, through a network of six
offices located at Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Calcutta.
Microsense is focussed on providing integrated network infrastructure, consultancy
services and cutting edge solutions to the technology needs of ISPs and corporates.

Microsense provides WAN and WiFi Solutions in India. It offers expertise and
experience in WAN and internet related technologies and has implemented systems
for several large private and public corporates, educational and R&D institutions.
Its aim is to become the leading Wireless Mobile Data Infrastructure & service
provider in India, with a pan Indian footprint, world class back end / billing systems,
and a significant brand equity.

Microsense, a leading provider of wireless-fidelity (WiFi) infrastructure and services

in India is going to set up 60 WiFi hotspots in Bangalore in the next six months.
Microsense has over 20 hotspots (connecting centres) in Delhi region and 200 in the
country. The locations include Cafe Coffee day outlets, hotels, restaurants and
airports. All Microsense hotspots are Intel certified and WiFi alliance is certified to
ensure highest international standard of service, DHNS reports from New Delhi.

Microsense is focusing on three business models for larger market penetration: build,
operate and show (BOS) for hospitality sector and property owners, build, operate,
transfer (BOT) — for service providers and build, operate and own (BOO). The
service is provided through post-paid and pre-paid access accounts. Under the post
paid scheme users can choose from ‘pay as you browse’ and a monthly flat charge.
 About The Project Which Was Undertaken

World over the communication needs of individuals are drastically increasing. People
want internet connectivity wherever and whenever they move. Dipping prices of
Wireless devices and equipments has resulted in the growth of number of hotspots
with global hotspot growth projected at approximately 20% (CAGR). (Source: In-
Stat, BTSL Analysis)

According to a Gartner study report, the number of worldwide Hotspot users in 2004
was a whopping 30 mn! The total number of WiFi hotspots in the world by 2008,
according to In Stat/MDR is expected to touch 200,000!

A similar trend is expected in India. Intel is looking at facilitating 1000 hotspots in

2006. Microsense & Dishnet are other players upbeat about hotspots. The Indian
Hotspot growth is projected at approximately 70% (CAGR)! (Source: In-Stat, BTSL
Analysis). Southern India has the highest hotspot penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.

However, the company feels that currently the growth in usage in limited primarily
due to stock-outs of scratch cards, limited validity of 24 hrs in most cases &
unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.
 Objective & Scope of the Project

The focus of this project was to conduct a market assessment exercise to gauge and
tap the full market potential of hotspot WiFi internet connectivity in India and based
on this develop a comprehensive and fail safe marketing plan for the launch of
“GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel -
Microsense.

While the initial conceptualization had been formulated by the company itself, my
scope of work & the objective of my project was:

 To do an environment assessment through secondary research on the potential

of hotspot business in India, the market conditions & the competition
prevalent.

 To do a market assessment through primary research to understand customer

profiles, consumption patterns, key business drivers and inhibitors.

 To develop the complete marketing mix for the new e-top up service.

Approach & Methodology

The above flow diagrams represent the exact flow of my project and so also this
project report.
 Section II

Environment Assessment
 The Changing Indian Urban Lifestyle

A study Conducted by JuxtConsult, a Delhi-based internet research consultancy ahs

pointed out the following key findings:

 Digital is the new ‘symbol’ of emerging lifestyles among urban Indian net users.
 Digital is increasingly dominating net users’ lifestyle choices.
 Digital friendly features top their gadget buying agendas.
 Netizens are fairly ‘integrated’ Indians in their media habits.
 More of them prefer to ‘invest’ rather than to ‘save’.
 They associate success very highly with ‘monetary’ success, but essentially look
up to Indians as their role models.

Lifestyle oriented consumers do not buy products and brands they buy lifestyles.

If that is the scenario, then what are the lifestyles that regular net users are seeking or
buying? And how has the Internet impacted and influenced their lifestyle and
consumption preferences?

For urban Indian net users, the digital age is slowly but surely dawning. They are
using digital means of entertainment more and aspire to upgrade to a lifestyle that is
digitally driven.

These and other key insights have emerged out of one of the largest online surveys
conducted by JuxtConsult in August 2008 among the Internet users in India. The
survey sampled more than 30,000 users with the aim to unravel the identity of the net
user along with his lifestyle choices. To estimate the penetration of Internet among
urban Indians a telephonic survey spread across ten cities with over 3,000 participants
was also conducted.

Digital is increasingly dominating net users’ choice of passing time at home. Net
surfing is the most preferred pastime at home already for one in every five net users. It
is the third most popular pastime at home among them at 21 per cent and not far
behind of the top two choices - watching television and listening to music. The three
digital forms of entertainment together are dominating home lives. Social ‘interaction’
has to fit within this way of life, or else it gets left out.

Gadget Consumers

The digital wave is also reflected in the kind of gadgets ‘netsumers’ (consumers with
access to the net) want to buy to enliven their lifestyles. Camera equipped mobile
phones; computers, digital cameras, DVD and MP3 audio systems, home theatres
systems, fully automatic washing machines, microwaves and air conditioners top their
buying agendas. And these buying preferences are not just exclusive to users based in
metro cities but are equally aspired for in the smaller cities. It seems that the
‘integrated technology’ features have become the new ‘symbols’ of the emerging
lifestyle aspirations of netsumers.
Money Symbol of Success

Netsumers associate success very highly with ‘monetary’ success and their top role
models are the rich and famous. Amitabh Bachchan, Sachin Tendulkar, Shah Rukh
Khan rub shoulders with Dhirubhai Ambani, L.N.Mittal and Narayana Murthy among
the top 10 role models of success for net users. Only president APJ Abdul Kalam
stands out for his success without any ‘money’ factor involved in the top ten.

Online Loyalty has Offline Roots

The web also serves as the favorite medium to stay in touch with the world for net
users. Internet is also the preferred way to keep in touch with news for 42% net users.
Television follows at number two with 32% net users picking it, followed thereafter
by newspapers. Magazines, mobiles or radio are still fairly insignificant means for
staying in tune with what is happening around them.

Classier Choices, Premium Preferences

Netsumers are willing to invest in upgraded lifestyle products. They do not mind
shelling out for better quality buys. In fact, two out of every three in the net tribe is
willing to pay ‘mid or upward’ price for their desired product type and value added
features. Be it FMCG or lifestyle products, netsumers are enthusiastic about adopting
a premium way of life.

Some Instances of Netsumers Reaching out for a First-Rate Lifestyle are:

 35% net users display interest in buying a mid size or premium car which may
carry a price tag of over 4 lakh.
 Diamonds are best friends for 41% of the web shoppers and 30% of them are loyal
to gold jewellery.
 A mobile cum palmtop is likely preference of 20% users.

Conclusion

In conclusion, the lifestyle of net users is gearing up gradually towards a more

‘integrated’ and ‘digitized’ way of living. And that is increasingly determining not
only how they spend time at home or when they go out, but also what products, value
added features and brands they choose and prefer. The marketers who are using the
net to reach to these consumers must catch these lifestyle trends to fit in and remain
relevant, or they face the threat of being left out of the shopping basket of these
netsumers.
 The Indian Internet Connectivity Business Scenario

Internet Usage and Population Statistics:

YEAR Users Population % Pen.

2002 1,400,000 1,094,870,677 0.1 %
2003 2,800,000 1,094,870,677 0.3 %
2004 5,500,000 1,094,870,677 0.5 %
2005 7,000,000 1,094,870,677 0.7 %
2006 16,500,000 1,094,870,677 1.6 %
2007 22,500,000 1,094,870,677 2.1 %
2008 39,200,000 1,094,870,677 3.6 %
2009 50,600,000 1,112,225,812 4.5 %

India continues to be one of the fastest growing major telecom markets in the world.
Sweeping reforms introduced by successive Indian governments over the last decade
have dramatically changed the nature of telecommunications in the country. The
mobile sector has grown more than tenfold from 2001 to around 60 million
subscribers by mid-2005. Whilst GSM technology still dominates, CDMA has quickly
grabbed 23% of this market. The mobile industry should continue to boom. Fixed-
lines, although not as spectacular as mobiles, is growing solidly. This report presents
the key measures of this dynamic market and takes a general look at the development
and direction of the market.

India - Internet and E-Services Market Report

Despite the considerable popular interest in Internet in India, the ISP market has been
in disarray. According to the telecom regulator, there were around 180 operational
ISPs in the country, after a period of market rationalisation. Despite the large number
of providers, 10% of the ISPs have 90% of the subscribers. The state-owned – BSNL
and MTNL – have grown rapidly to hold first and second place in terms of
subscribers. The growing popularity of cybercafes has been playing a big role in
fuelling Internet development in India. This report looks at the ISPs and other aspects
of India’s Internet market. There is also some information on Internet content and e-
services.

India - Broadband and Data Services Report

India appears to have embraced the Internet with a degree of ambivalence. There is
tremendous enthusiasm amongst the dial-up users and an estimated 60% of users
regularly access the Internet via the country’s more than 10,0000 cybercafes. But
when it comes to high-speed broadband access, there is reluctance, especially within
the corporate sector, and the take-up rate has been slow. By early 2007 there were
about 70,000,00 broadband subscribers – a penetration of less 0.1%. This report looks
at the stage the development of broadband Internet has reached in India. Some
information is also provided on data services available in the country.

India Internet Usage Surges:

February 17, 2008 - Internet adoption continues to grow in India. According to the
Internet & Mobile Association of India (IAMAI) the low cost of broadband has
helped increase Internet usage. E-commerce and high demand for .in domain
registrations are also factors for the increase in online users. The ".in" domain
registrations surpassed 15,000,00.

Broadband policy and other initiatives by the IT and Telecom Ministry encourage
increased adoption. A monthly broadband subscription costs as little as 199 rupees
(US $4.50). A second factor is the IT Telecom Ministry initiative to make computers
available for purchase under 10,000 rupees (US $226). In addition to working with
hardware manufacturers to remove the financial barrier for households in India, the
organization continues to push development of language fonts to remove language
and localization of content issues.

According to IAMAI, a trade association representing the online content and

advertising, e-commerce and mobile content and advertising industry, Indians go
online for a number of activities including e-mail and IM (98 percent); job search (51
percent); banking (32 percent); bill payment (18 percent); stock trading (15 percent);
and matrimonial search (15 percent).

The WiFi Hotspot Internet Connectivity

What is WiFi Hotspot?

WiFi or 'Wireless Fidelity' allows you to connect to the

Internet without wires, whether you are at work, at the airport
or waiting at a train station. WiFi is a wireless technology that
works rather like a mobile phone. WiFi enabled computers
send and receive data indoors and out; anywhere within the
range of a base station or 'hotspot'. In addition to the obvious
convenience of WiFi, another advantage is the speed of the technology, which is
several times faster than the fastest cable modem connection and enables large
amounts of data to be sent and received quickly.

Today, WiFi enabled devices are enabling users to connect to their office networks,
browse the web, download music or stream live news feeds from convenient
locations, such as hotels, conference centres, airports and bars all around the world.
We see virtually limitless applications for WiFi technology. Users are already making
voice over WiFi calls through their laptops and sending photos from WiFi enabled
cameras. Even WiFi phones and games machines will become readily available in the
not too distant future.

As well as the productivity benefits WiFi affords you and your mobile workforce
while out and about, it can also enable you to add new staff members to your office
network very easily without the need to install complicated cabling, hubs and routers.
Other valuable applications of WiFi can ensure your customers; suppliers and
contractors remain productive while on your premises, without endangering the
security of your corporate network.

How is it done?

What is the technology? How does it work?

It basically works on broadband communication, receiving and relaying
communication signals essentially through special modems meant for the purpose. It
is also known as 802.11 networking and wireless networking. The big advantage of
WiFi is its simplicity. You can connect computers anywhere in your home or office
without the need for wires. The computers connect to the network using radio signals,
and computers can be up to 100 feet or so apart.

Where are we headed?

Wi-Fi is quickly gaining in popularity with access points across the United States
increasing by approximately 100% in 2003. Wi-Fi refers to a set of wireless
networking technologies more specifically referred to as 802.11a 802.11b and
802.11g. These standards are universally in use around the globe, and allow users that
have a Wi-Fi capable device, like a laptop or PDA, to connect anywhere there is a Wi-
Fi access point that is available. The three standards that are referred to signify the
speed of the connection they are capable of producing. 802.11b (which transmits at 11
Megabits per Second) is the most common, although it is quickly getting replaced by
the faster Wi-Fi standards. Both 802.11a and 802.11g are capable of 54 MBPS, with
802.11a adding additional capabilities. Across the board, all of these Wi-Fi standards
are fast enough to generally allow a broadband connection. Wi-Fi is an emerging
technology that will likely be as common as electrical outlets and phone lines within a
few years. Wi-Fi adds tremendous levels of convenience and increased productivity
for workers whose offices are equipped with Wi-Fi, as well as travelers that can
increasingly access Wi-Fi in airports, coffee shops, and hotels around the world.

Who are the players in the Indian Market?

Where is the Indian Hotspot Business Headed?

According to a Gartner
study report, the number of
worldwide Hotspot users in
2004 was a whopping 30
mn! The total number of
WiFi hotspots in the world
by 2008, according to In
Stat/MDR is expected to
touch 200,000!

A similar trend is expected

in India. Intel is looking at
facilitating 1000 hotspots in
2008. Microsense &
Dishnet are other players
upbeat about hotspots. The Indian Hotspot growth is projected at approximately 70%
(CAGR)! (Source: In-Stat, BTSL Analysis). Southern India has the highest hotspot
penetration (79%).

The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.

However, the currently the growth in usage in limited primarily due to stock-outs of
scratch cards, limited validity of 24 hrs in most
cases & unavailability of roaming between
Hotspots.
What are the Key Market Drivers?

High Sale of Laptops: Sale of laptops has gone up many-folds. The average price of a
notebook stood at Rs 35,000 last year and the dip continues, now even faster. This is
expected to rise by 119% per annum in India.

High Hotspot Penetration: A greater number of telecom players offer better services
at lower price points. Companies like Tata, Microsense, BSNL etc. to set up more than
20,00,00 public hotspots by Jan 2010.

Reduced Tariffs: The Tariffs have reduced by more 50% in last 12 months.

Customer Expectation: Attitude Change of Consumers towards Wi-Fi is driving

business to focus on enhancing the Wi-Fi services. Uptake of services by businesses
and end-users has been driven by falling prices and appropriate applications.

Market Differentiation: Installing a Hotspot is now used a differentiator & have a

higher customer lifetime value.

Business Requirement: High speed constant connectivity at all places is now a

business necessity. Wi-Fi hotspots serve as a means solve the problem. This is
especially useful when working away from the primary office location.

Lower Installation Costs: Wireless associated equipment, like Wi-Fi cards, and Wi-Fi
access points, are now much cheaper. The set-up costs of a Wi-Fi Hotspot has gone
down by a considerable 68% in last 18 months. It is further expected to fall by another
25% in coming 12 months.

Multiple usage devices: Laptops are not just the only device that can get connected to
Wi-Fi networks. PDAs & many other devices too can enjoy this mobility. Fully loaded
cellular phones are coming cheaper too!

Increasing Awareness: The market size in India is growing at tremendous 329% as a

outcome of Increasing awareness & acceptability.

Out of Office Connectivity: The service allows mobile employees to be more

productive by working from public “hot spots” at airports, hotels, and coffee bars.

Relaxed Government Regulations: Setting up a Wi-Fi hotspot doesn’t attract any kind
of legal restrictions or fees. The license exempt has brought the prices down
dramatically.

Increased Productivity: WLANs enable workers to be more productive with access to

the Internet, e-mail, and network files wherever they are in the business campus.

What are The Key Market Inhibitors?

Lack of Awareness: The awareness about the facility and usage is not made clear.
Locating a hotspot is also a hindrance. Communication needs to be more strong and
visibility should be high.

Non-target venue deployment: Non-availability of hotspot at target venues and at the

same time deployment in low penetration venues. Thus, all the hotspots do not attract
returns worth the investment.

Incongruence between existing pricing plans and consumer expectations: The

pricing plans or tariff plans are still way above to attract the higher usage and thus,
resulting in low penetration.

No roaming across locations: The restriction on usage across hotspots due to no

roaming agreements and validity of coupons.

Security: The security if data transmission is still under question but with 802.11g the
solutions seems around the corner.

Scratch card stock outs: The non-availability of scratch cards to access hotspots is
highly prevalent, leading to lower usage and take-off.
 Section – III

Market Assessment Using Primary Research

 Data Collection for Market Assessment

Once the secondary research was done and an environment assessment conducted, a
detailed primary research by way of market survey was undertaken in order to obtain
the required data to enable us to undertake a market assessment exercise.

The survey was conducted in two parts. While the first part included interviewing the
hotspot owners/ mangers, the second part included interviewing the end consumers of
WiFi internet hotspot connectivity.

Type of Research: The research was mainly quantitative in nature since it was
required by us to make a near assessment of the true market potential for WiFi
Connectivity. However, it was also ensured that a fair amount of qualitative probing
was also done during the course of the interviews to understand the exact profile of
the end consumers.

Sample Size: It was decided to keep the sample size large enough to ensure near
accurate findings. The sample size decided for consumer’s survey was 250. For this
purpose, 10 hotspot locations were selected across Mumbai & 25 respondents each
were interviewed at these points. Also the hotspot location owners/ managers were
also interviewed simultaneously.

About the Respondent: The respondents would largely comprise of people visiting
Hotspots like café’s and restaurants, Airports, convention centres and business
centres, shopping malls, food plazas, retail outlets and other such public places. These
would be categorized on the basis of age, gender and occupations.

The list of Hotspots visited in order to interview WiFi consumers, has been annexed
along with sample questionnaires for both consumer’s as well as retailer’s surveys.

Criteria for Elimination of Respondents: Only those respondents would be included

who are at least aware to a certain extent about the WiFi connectivity. Also, they must
be either a owner or user of any WiFi enabled device. Also, only those outlets have
been covered, which have hotspot WiFi connection for their customers.

Objective of the Research: The objective of the research broadly would be to

understand customer profiles, consumption patterns, key business drivers and
inhibitors. More specifically it was expected to provide information regarding:

 Level of awareness about WiFi internet connectivity amongst people.

 The profile of the consumers wrt age, gender, profession etc.
 Consumption behaviour wrt where, when, from whom and how much.
 The preferred WISP, its goodwill and the key issue areas.
 The level of likeability for our new service by the consumers and retailers.
 The level of association with our new service by them.
 The price expected by the consumers for this service.
 The probable amount of brand switching possible.
 The % increase in the market due to new service introduction.
 Data Analysis and Key Findings

Consumer’s Survey Findings:

Level of Awareness about WiFi amongst Consumers:

Response Nos. % The adjacent table clearly shows the poor

Yes I am 72 20 awareness levels of WiFi Connectivity! Only
20% respondents were fully aware of it. A
Yes but not clear 88 24 whopping 56% of them are either unaware or
Very little 90 25 know very little.
No I am not aware 110 31
Total 360 100

WiFi Enabled Devices Owned By Consumers:

From the adjacent table it can be seen that the Device Owned/ Used Nos.
majority of the WiFi enabled device users use
Laptops. This is true because the other devices Laptop 200
have not yet fully entered the Indian market. Media player 5
Also notebook PC sales are increasing. Digi cam 12
PDA 18
WiFi phone 25

Preferred Hotspots for Net Access by the Consumers:

The bar graph clearly shows that equally large number of people prefer café and hotel
lounge. It was observed that while the IT professionals and tech savvy youth, who are
primarily high
preferred locations for WiFi net access
frequency but low
duration
consumers,
No. of respondents

preferred café’s
150 over other options,
130
90
the business
80 75
55 executives and
travellers, who are
Convention

high frequency –
College
lounge

airport
Café

other
Hotel

centre

high duration
consumers, prefer
hotel and airport
lounges more over
other options.
The Time Distribution for Usage of WiFi across the Week by the Consumers:

Tim e of consum ption

The Pie chart clearly indicates the
concentration of consumption Weekdays
during the weekend. This is 30%
primarily because then both youth
as well as elderly people use the
service. This is a very vital
w eekends
finding which can help us design 70%
our pricing strategy.

Reasons for Usage of WiFi by the Consumers:

It is evident that
Re a sons for us ing ne t at a Hots pot
people use the WiFi
1 5% for varied reasons.
28% However the majority
1 3%
of people use it for
checking their business
mails which are urgent
8%
12% and important. (28%).
6%
18 % These are the business
leis ure s urf ing pers onal mails c hat dow nloads executives and
inf ormation ac c es s of f ic e s erv erb us ines s mails travellers who are
incidentally also the
heavy consumers. It
was observed that
while the IT professionals and tech savvy youth used WiFi more for leisure surfing,
checking personal mails, downloads, chatting and seeking information to certain
extent, the business travellers and executives mainly used it to check business mails,
seek information or to access their company server!

How Frequently Do They Consume?

Frequency of Usage
Clearly the median class is
once a week. Thus, most
no of respondents

people use WiFi internet

connection at least 4 times
per month. This is another 82
57
48
significant finding that can 29 23
11
help us make a market
< Once a Once a Once a Once a Tw ice a > Tw ice a
assessment. month month fortnight w eek w eek w eek
How Much Do They Consume On Each Occasion?

Duration of usage per occasion

Clearly here the median
class is 30 – 45 mins per
no of respondents

occasion. Hence we can

safely conclude that
99
average consumption per
63
32 38 event of usage of WiFi
11 7 internet connection is 30
< 15 mins 15 – 30 30 – 45 45 – 60 60 – 120 > 120 mins – 45 mins.
mins mins mins mins

Who are the Most Preferred WISPs operating in the Market?

Well, as seen here, Microsense preferred WISP

clearly leads currently being 6% 9%

17%
preferred by 40 % of
respondents followed only by
Sify Wi Zone… This can be
40%
capitalized upon while 28%
launching the new service and
also for the purpose of brand Anora Tech – Boingo Microsense

building. Sify Wi-Zone Dishnet Wireless

Pronto Netw orks

Are the Customers Happy with Their Service Providers?

le ve l of s atis faction w ith cu rr e nt WISP Well, most respondents have

either responded in the negative or
have chosen to take a neutral
8% 19%
13% stand. This indicates that even
though people have the need for
the service very much, the WISP
26% 34%
is not able to give desired level of
service to its customers. The mean
of ratings given to the WISPs is
V dissatisfied Dissatisfied can't say satisfied very satisfied 2.57 which is between dissatisfied
and can’t say. Hence its more
inclined towards the negative.

Also if we add up the negative responses the total comes to more than 50% while if
we add up only the positive responses the total comes to only about 20 %.
What Are The Key Areas of Concern for the Consumers?

key areas of concern currently

no of respondents

212 192
188
123 98
76 56
47 39

Limited coupon
Poor location of

Unavailability of

No roaming

disconnections
High prices of

Poor download

concerns
No info of

Security
location

services

Frequent
facility
hotspots

coupons

speed
validity

It can easily observed from the bar chart above that the three main causes of customer
dissatisfaction are unavailability of coupons, limited validity and lack of roaming
facility, a fact which was pointed out by our secondary research as well and which has
got confirmed now through consumer survey!

Test of Likeability of Our Concept by the Consumers:

counsumers likeability of our new concept 58% respondents have liked the
new roaming concept in WiFi
somewhat
very much not at all no connectivity through mobile top
6%
22% 12%
up. The mean rating achieved
neutral
was 3.56 which is close to
somewhat 24% ‘somewhat like’ response.
yes
36%
Hence we can infer that most
consumers have liked the
concept of our new service.

Test of Association with Our Concept by the Consumers:

Again a large no. of w ill you s ubscribe to this sevice

respondents (58%) have said
they would be subscribing to
def yes not at all I don’t think
the new service. Also only a 20% 4% 10%
very small proportion of the
respondents (4%) have said cant say
28%
they would not subscribe to our I think so
service. The mean rating was 38%

3.6 which is close to ‘I think so’

response.
Consumer’s Response to the Reasonable Price for the Service:
resonalble price for the service in Rs/ Hr
The median class is 90 – 100,
120 108
100
which means most respondents
80 67 are expecting the new service to
60
40
43
24
be made available to them at the
20 12
current market price levels. This
0
< 80 80 - 90 90 - 100 100 - 110 > 110 input would be crucial in
designing our pricing strategy
later.

Consumer’s Willingness to Switch Brand:

22% of the respondents are will you switch to airtel for this service

existing Airtel customer. For the

remaining 78% of the total 13% 22%

respondents, the mean rating

23% 3%

given is 3.42, which is more

10%

29%

towards “I think so”. Thus we can

safely infer that the current ExistingAirtel Cust
can't say
not at all
I think so
I don’t think
abs yes

consumers would have no issues

switching over to Airtel in order
to avail this service!

Will Consumer’s WiFi Usage Increase?

will consumption increase?
55% respondents have opined
16% 8%
that their monthly usage of WiFi
16%
would increase with the
introduction of roaming facility
39% 21% in hotspot connectivity!

not at all I don’t think cant say I think so def yes

Amount of Increase in Consumption Expected:

Out of the 55% respondents who % incre ase in consum ption expected
said their consumption would 54
increase after roaming is made
no of respondents

available, 40% (54) respondents 31 29

have said it could be as high as 16
15 – 20 %! Hence we can safely 8

assume that post launch of e top

up facility, the market would <5 5 - 10 10 - 15 15 - 20 > 20

increase by about the same

percentage points.
Retailers Survey Findings:

Average No. of Visitors at the Hotspot per Day:

avg no of visitors per day t the hotspots

Majority of the hotspot
11% 8% < 50 respondents have suggested the
12%
12% 50 - 100
avg. daily visitors to be between
100 - 150
6%
150 - 200 150 & 200.
200 - 250

51%
> 250
Hence we can safely assume
daily average of visitors at a
hotspot to be around 175.

Proportion of Visitors who use WiFi Connection:

48% respondents have suggested %of visitors who use WiFi at the hotspot

that almost 15 – 20 % of their

visitors make use of WiFi 15% 7%
12%
<5
5 - 10
connection at the Hotspot. 8%
10%
10 - 15
15 - 20
20 - 25
This is a significantly high figure, 48% > 25

which would be useful in making

a market assessment.

Effect on Retailers Business with the Launch of New Service:

will retailesr business increase?
When the retailers were asked
20%
10% whether they feel their business
10% not at all will increase if they provide Airtel
somewhat no
neutral
WiFi connection at their location,
20% somewhat yes 60% of them felt that it definitely
40% very much will. This is crucial to ensure a
win - win situation for both us as
well as the retailers.

Will the Retailers Switch to Airtel – Microsense?

50% of retailers have said they willingness to switch to Airtel - Microsense

have no concerns switching over Existing Microsense

to Airtel – Microsense from their 10% 10%

Point
not at all

current WISP. Also, 10% retailers 10%

I don’t think

currently have Microsense 10%

can't say
40%
connection. So we should not be I think so
20%
having any concerns regarding abs yes
retailer preference.
 Market Assessment

Average frequency of WiFi usage per person = 4 times/ month.

Average duration of usage per occasion = 30 – 45 mins.

Hence, average usage per month per person = 120 – 180 mins
= 2 – 3 hrs

Average rate of usage in Rs/ hour = 100

Hence, average monthly spend per person = 200 – 300.

Hence annual spend per person in Rs/ annum = 2400 – 3600.

Assume mean spend per person per annum = Rs. 3000

Now,

Average visitors per hotspot per day = 150 – 200

Average no. of WiFi users per day per hotspot = 30 - 40

@ 15 – 20%

Thus, average no. of users per hotspot per annum = 11000 – 15000

No. of hotspots in the country = 4000

Total avg. no. of users per annum in India = 44000000 – 60000000

Assuming the same avg. frequency of usage, the

Total no. of WiFi users in the country
(Dividing above fig by 12 x 4 = 48) = 900000 – 1200000

Assume mean no. of WiFi users in India = 1050000

Thus,

The total business for WiFi connectivity = 1050000 x 3000

TOTAL ESTIMATED MARKET SIZE IS Rs 315,00,00,000/-

Rupees Three Hundred & Fifteen Crores!

 Section – IV

SWOT Analysis
Based on our internal analysis we have identified the following strengths and
weaknesses, whereas based upon the external environmental assessment and the
primary research leading to the market assessment, we have identified the following
opportunities and threats.
Strengths
1. Excellent synergy of Airtel and
Microsense.
2. A complete Win – Win – Win
Model for customers, company as
well as retailers.
3. Microsense’s ownership of WiFi
Customers and Hotspots.
4. Airtel is India’s largest mobile
phone operator with 13 million
customer base.
5. Customer data base availability with
Airtel.
6. Vast telecom infrastructure available
with Airtel.
7. In – house IT support from Telesoft.
8. Vast Financial resources with Airtel
Bharti Enterprise.
9. Experience in value added services.
10. Strong brand identity with Airtel.
Opportunities
1. With the launch of roaming in WiFi
connectivity, the consumption of the
service is expected to increase by at
least 20 %.
2. Moreover, the hotspots are growing
at a very rapid pace.
3. Complete consolidation of mobile
phone users and WiFi users.
4. High margin business since very
little competition.
5. Even a mere 20% of market would
mean business in excess of 50Cr.
Can go on to become the preferred
vendor of mobile services to the
corporate sector with this value added
feature!
Weaknesses
1. Microsense already operates in the
WiFi market. This can lead to
confusion in the minds of existing
customers of Microsense.
2. A JV between Airtel and Microsense
would further strengthen the position
of Microsense increasingly.
3. Revenue sharing agreements and
other accounting practicalities can
come in way.
4. Differences in opinions and clash of
interests can seep in hampering the
sanctity of the relation between the
two partners.
5. Too complex a IT and other
infrastructural arrangement exposed
to high risks.
Threats
1. Forward integration by other
infrastructure providers such as Tata
broadband etc.
2. Backward integration by other
WISPs such as Sify Wi-zone etc.
3. Customers unwilling to switch over
to Airtel for their mobile phone
service.
4. Irrational price wars started by
competitors just to alienate their
threats.
5. Clash of interests between the JV
partners namely Airtel and
Microsense.
 Section – V

The Marketing Plan

 The Need Identification

As discussed earlier, world over the communication needs of individuals are

drastically increasing. People want internet connectivity wherever and whenever they
move. Dipping prices of Wireless devices and equipments has resulted in the growth
of number of hotspots. A similar trend is expected in India.

The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all reasons for this boom.

However, as learned from the market research exercise, currently the growth in usage
is limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in
most cases & unavailability of roaming between Hotspots.

Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. We plan to introduce roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.

So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.
 How It Shall Be Done?

In order to facilitate the delivery of such a service Airtel, which supported the telecom
infrastructure requirements for Hotspot connectivity and Microsense, which is a
currently existing Wireless Internet Service Provider (WISP) in the country have
joined hands. The JV is an excellent example of growth through collaboration.

How does the JV make any difference?

Current Business Structure Involving Distributor and Multi Level Money Exchange

New Business Structure Eliminating Distributor And Introducing E – Top Up!

With the JV in place the distributors would get eliminated thereby reducing costs
which can be passed on to the consumers. The customer pays directly to Airtel and not
the hotspot, part of this is shared with Microsense and eventually the hotspot. Hence,
eliminating the need for scratch cards and the problems associated with them.
 Segmentation – Targeting – Positioning - Differentiation

The marketing of WiFi GSM service can be classified as a Niche Marketing exercise
because while the larger category is internet connectivity, with in this category we
have a niche market for WiFi Hotspot connectivity.

Segmentation:

We have selected the Psychographic basis of segmentation based on Lifestyles of

consumers. This is because, while Geography & Behaviour hold no consideration,
Demographic parameters like Age, Gender etc. hold little relevance since in the world
of Netizens, these fail to act as any boundaries of segmentation.

We have segmented the total market into four segments based on lifestyles as follows:

Tech sa vvy Business

youth executive s

IT Business
profe sssionals traveller

Further segmentation would lead us to two groups as follows:

Individual Customers: Young IT professionals and Tech Savvy Youth, who are the
typical urban upwardly mobile persons. These usually use WiFi at the Café. They are
the volume segment with more no. of small sessions and use internet largely for
leisure surfing, emails & chatting as found from the survey!

Corporate Customers: The business executive and traveler, who is an individual

with higher disposable income. These usually use WiFi at the hotel or airport lounge.
This is the lucrative segment with greater usage and margins, like to remain connected
for business emails & for accessing company server.
Targeting:

We plan to tap the whole market i.e. both these segments with the same product/
service. Hence we are following product specialization targeting method and want to
build a strong reputation in this service category.

Positioning:

Our positioning strategy would revolve around our

pioneering effort in eliminating the key inhibitor for
availability of un–interrupted hotspot WiFi connectivity, in
order to fully capitalize on it. We would position ourselves as
the first WISP to provide roaming in WiFi connectivity using
mobile top up method.

Our positioning statement would be:

“We Are the First to Provide You Roaming In WiFi Connectivity”

Differentiation:

Since we are pioneering in this technology we don’t have any direct competition and
hence whatever we do would be obviously different. However, we would also want to
be different from the normal WISPs on the following points:

 Roaming facility!

 Unlimited validity!

 Mobile top up!

 Ease of payment!

 Lower prices!
 The 7P Marketing Mix for Our Service

P1 – The Product:

Product Line: We have categorized the customers into two segments, viz. Individual
and Corporate. Accordingly we have the following products for them to suit their
convenience.

 E- Connect Starter Pack: Allows one to have a trial before subscribing to the
service. It has 200 MB capacity and is valid for a period of 31 days. Both
individual as well as corporate customers are offered this pack.

 My Connect Infinity Surf: It is offered to individual clients whereby they are

charged on the basis of time of usage on a monthly basis.

 My Connect Infinity Download: It is offered to individual clients whereby

they are charged on the basis of MBs downloaded on a monthly basis.

 Corp Connect Infinity Surf: It is offered to corporate clients alone whereby

they are charged again on the basis of time o usage on a monthly basis.
However, anticipating high usage and guaranteed payments, they would be
charged 20% less wrt individual customers. Also the security deposit would
not have to be kept by them.

Corporate clients are not offered Infinity Download plans owing to our
findings about their usage patterns from the primary research.

Branding:

 Brand Name: We would brand our new service as “Airtel E – Connect” &
promote it as the all new WiFi Connectivity with roaming by Airtel”

For the brand to be successful, we must build enduring relationships with its
different audiences. Integral to this relationship would be the visual image of
the brand the consumer carries in his/her mind.

We would strive to harp upon the well established Airtel Brand over the years
to the fullest. This would be helpful to gain quick acceptance with the
prospects.
 The Airtel brand image created through the consistent application of a
carefully developed visual identity would help Airtel E - Connect distinguish
itself in a cluttered market. Airtel's visual identity would help create instant
brand recall and strengthen the relationships with our audiences.

 The Airtel E – Connect Logo:

The Airtel logo is a strong, contemporary and confident symbol for a brand
that is always ahead of the rest. It is a specially drawn word mark. We would
use a similar logo for easy identification and brand recall.

Packaging:

We have taken special care to package our product to suite the general requirements
of the targeted customer segment. Accordingly, the packages are designed for both
individual and corporate customers. Separate names have been given to each package,
even for the two variants with in the individual customer offerings. Also a trial pack
by the name clearly suggesting it has been designed.
P2– The Pricing:

 Basis of the Pricing Strategy:

This is not a highly price sensitive service since it’s a niche service provided by
very few service providers. Since our service is in the introduction stage, we
would want to gather as much market share possible that too at the earliest. Hence
coupled with incessant promotional campaign, we would maintain the price
initially at par with the market expectations so as to rapidly penetrate the market.
Then we would slowly increase our prices to cover our costs and finally start
charging a premium once we have achieved a substantial market share.

 Stages of Our Pricing Strategy:

Upto a market share of 0 – 10 % : Penetrative pricing with rapid penetration.

Market share between 10 – 20 %: Cost plus pricing.

Beyond a market share of 20 % : Value based premium pricing.

 Market Based Pricing Method:

From the survey two key findings were received. Firstly the most comfortable
price range was Rs 90 – 100 per hour of usage. Owing to our lower distribution
cost we can initially provide the service @ Rs 90 / Hr of usage time. Secondly, the
ratio of weekend usage to weekday usage is 70:30. Hence, we shall provide
discounted service during weekends in order to provide incentive to users of other
service providers to subscribe to our service.

 The Introductory Prices For The Different Variants:

• E- Connect Starter Pack: This would be priced at Rs. 99/- for 1 GB capacity
or 31 days usage, which ever exhausts earlier. The price would remain same
for individual as well as corporate customers.

• My Connect Infinity Surf: Rs 1.5 per minute of usage + Initial subscription

charges of Rs 500 + security deposit of Rs. 2000/-

• My Connect Infinity Download: Rs 10 per MB of download + Initial

subscription charges of Rs 500 + security deposit of Rs. 2000/-

• Corp Connect Infinity Surf: Rs. 1.2 per minute of usage + Initial
subscription charges of Rs 500 + Zero security deposit!!

 Mode of Payment: While prepaid mobile customer need not personally pay
anything as the amount would directly get deducted from their balance, for the
Post-paid account holders payment can be done either through cheque, cash along
 with monthly bill or alternately by credit card online at our website using personal
ID and password provided to the customers for this purpose.

P3– The Place/ Availability:

In this case the customer need not each time visit a dealer/ distributor for refilling his
balance, since the same can be done through e top up using a mobile phone having
Airtel connection. However, for the first time in order to subscribe to the service a
customer has to visit an Airtel World which is the Airtel Dealer/Distributor shop
present in large numbers across the various cities in India.

The following is a map showing the number of Airtel Worlds, Authorized distributors
etc in each of the cities where this service would be launched in due course of time.

Also, in order to facilitate the service provision to travellers, the subscription can also
be done at any of the 500 hotspots to be opened up in these cities.

The service would be available more than 500 hotspots in 11 cities by Dec 2007!
Currently he service would be available at around 50 hotspots in Mumbai and
Bangalore.
P4– The Promotion:

Since we have decided to gain rapid penetration, we would do aggressive promotion.

However, this does mean we embark on heavy expenditure. We would strive to
indulge in low cost high efficiency advertising and sales promotion techniques.

The Stage Wise Plan:

 Stage 1: Pre – Launch: Here we would rely heavily on PR rather than

advertising. We can tie up with business newspapers and magazines and other
youth journals to extensively write about our new service thereby creating a
buzz about it. Hence we embark largely on buzz marketing pre-launch. This phase
should continue about 6 weeks before the launch but not more also.

 Stage 2: Launch of Service: A heavy advertising campaign with much

publicised launch of the new service with heavy emphasis on brand and service
awareness and inciting trial urge will have to be carried out. While heavy
advertising is required it is crucial to bear in mind that too frequent advertising
will only act negative. This phase would see lot of TVCs, radio and print
advertising. The launch should in no case exceed a period of 1 week to 10 days.

 Stage 3: Post – Launch: Regular reminder advertising to maintain brand

recall and preference would have to be undertaken. Also immediately post the
launch, we should have heavy PR activity in order to again create a buzz for the
success of launch of our new service.

Some Cost Effective but Highly Efficient Promotional Techniques:

 Introductory discount of 10% for all new subscribers for first three months.
 Existing customers of Airtel as well as Microsense get 10% discount
automatically for a year to maintain loyalty.
 Free Airtel SIM cards and waiver of security deposit to users of other mobile
service providers who subscribe to E connect and have to switch to Airtel service.
 Maintain as much as possible the same last 6 digits for ease of conversion.
 Free starter packs given complimentary to corporates and influential individuals.
 Conducting frequent online polls and contests.
 A baseline with some punch: “Always Stay Connected …”
 SMS campaign to communicate with all the existing Airtel Customers.
 Informative and eye catching hoardings outside airports and railway stations.
 Point of purchase display material at each Airtel World.
 Bright and unique design pointers and sign boards at Hotspots.
 Free address booklet of all the member Hotspots across the country.
 Dedicated hotline customer service desk to handle queries, trouble shoot problems
regarding login etc., also to provide contact details of hotspots in any area.
 A dedicated website – www.airteleconnect.com providing detail information.
 Cross – promotion by way of distribution of information booklet regarding our
service, along with WiFi enabled device vendors.
 Print ads in local dailies, business papers and magazines, IT journals an dyouth
magazines.

P5– The People:

The people who finally interact with the customers in our case are the persons at the
hotspot during service delivery and the dealer’s personnel during subscription, bill
payment, complaints registration etc. however, care has to be taken to avoid any
unpleasant incident during any moment of truth whereby the customer gets a chance
to form an opinion about our service which may not be fully reflective of our
organizations attitude towards customer satisfaction.

Hence, no ground or field staff is required. However, in order to thrust focus on the
capturing of full market potential at the earliest, we would have to hire a dedicated
Marketing Manager & operations manager. Also we would need one technical leader
and a billing and settlement manager. Apart from this we would need one sales person
at each of the cities regional office in order to push sales through the distributor
network.

Hence additional manpower required would be as follows:

Manager Marketing 01 (country head)

Manager Operations 01 (country head)
Technical leader 01 (country head)
Billing Manager 01 (country head)
Sales executives 10 (regional level)
Customer service executive 05 (Country level)

P6– The Process:

Steps Involved During Service Delivery at the Hotspot:

1. Customer visits the hotspot and enquires about WiFi availability.

2. Manger to address his query and inform him about availability.
3. Customer attempts to connect to the WiFi.
4. Manager to assist in case problem is encountered.
5. Helpdesk no. to be made available to customer in case required.
6. In case new subscription is requested manger to execute the request as by the
distributor.
7. At the end of session manager has to request the customer to fill a feedback
form. Don’t insist if the customer is unwilling.
8. Thank him for visiting your hotspot and also to choosing Airtel E Connect for
his service.
9. To shake hands with him and accompany him till the door.
 10. Ask him to visit again.

Steps Involved During Subscription:

1. Customer walks in and enquires about E connect.

2. He/ She is greeted and made comfortable.
3. The customer assistance to address his query and gather full information regarding
the customer usage, WiFi device, type of requirements etc.
4. S/He should provide full information regarding available products to the customer
depending upon his/ her classification and requirements.
5. Ask whether the customer is interested in buying and can he be shown the prices.
6. If he says no, then politely ask for his contact details and references if any. Greet
him and assist him till the door. Thank him for his visit and tell him he can come
back anytime he wishes.
7. If he says yes, then inform him about the pricing structure. Probe and clarify
concerns if any.
8. Ask what type of package he would like to take. Assist him in making a choice but
don’t force what so ever.
9. Once decided, ask for his personal information like contact address, name, contact
number, office addresses etc. Collect proof of residence and identity from him
with due respect to the documents provided by him.
10. Help him fill in the subscription form completely at his own rest.
11. collect subscription charge, security deposit and issue a new subscription package
hamper to him
12. Prepare a receipt towards payments made by him.
13. Inform him about the contents of the welcome hamper. Probe for any further
queries.
14. Thank the customer for subscription and welcome him to the group.
15. Inform him about the customer service hotline.
16. Accompany him till the door and give a firm hand shake with a smile before he
leaves.

P7– The Physical Evidences:

These are very crucial as these give the feel of tangibility to the otherwise intangible
service. In our case we can harp upon the following physical evidences:

 The reassuring look and feel of our

Airtel World franchisee or distributor
shops.
 The Airtel logo which imbibes trust
and faith in the minds of million of
people.
 Our punchy baseline : “Always Stay Connected …”
 The selectivity in selection of location and venue for the hotspot.
 Bright sign board of Airtel E Connect at all hotspots.
 Quality of advertising and other print material

Section VI

Plan of Implementation
 Plan for Implementation

The plan would be rolled out in the following two phases.

Phase I:

In this phase we shall launch the service for Local Mobile Subscribers & National
Roaming Subscribers. This would log for about 2 years before which we are sure of
moving on to the next phase of launch.

Initially test marketing would be done in two cities simultaneously viz. Mumbai &
Bangalore. Mumbai because it is the financial hub of the country and Bangalore
because it is the IT hub of the country!

Upon successful results, we would immediately roll out close to 300 Hotspots in
another 9 cities viz. Pune, Kolkatta, Nagpur, Indore, Gurgaon, Delhi, Ahmedabad,
Hyderabad, and Chennai.

Phase II:

In this phase we plan to venture into foreign markets so as to also provide the service
to our International Roaming Subscribers.
 Section VII

List of References
 List of Websites Visited

1. www.microsense.com

2. www.wifi.com

3. www.getbestinfo.com

4. www.howstuffworks.com

5. www.roamingwire.com

6. www.bharti.com

7. www.contentsutra.net

8. www.mindbranch.net

9. www.iamai.org

Articles Referred To

1. Strategic choices for newly opened market – HBR review sept –oct.

2. View from the ground : the indian cyber space!

Section VIII

Annexure
 Annexure I

Consumer’s Survey Questionnaire (sample)

Good Morning/ Afternoon/ Evening Sir/ Madam,
We are conducting a survey to understand the requirements of hotspot WiFi internet
connection consumers. In this context I would like to have your valued inputs. Can I please
take some precious minutes of your valuable time?”
Section – I: Current Consumption Pattern

1. Are you aware of WiFi Hotspot Internet Connectivity?

Yes, I am Cont Yes but I am not clear Cont
Very little Cont No I am not Term

2. Are you a user of WiFi Hotspot Internet connection?

Yes, I am Cont No, I am not Term

3. What Wi-fi Enabled Devices do you use (if any), owned/otherwise?

Laptop 1 Media Player 2
Digi Cam 3 PDA/ Palmtop 4
WiFi Phone 5 None Term

4. What kind of hotspots do you preferably access WiFi internet connection at?
Neighbourhood cafe 1 Hotel lounge 2
Airport Lounge 3 Convention centre 4
College/ Office 5 Any other 6

5. When do you use WiFi connection more?

Weekdays 1 Weekends 2

6. For what purpose do you use hotspot WiFi Internet connection?

Leisure surfing 1 Personal emails 2
Chat 3 Downloads 4
Information 5 Accessing office Server 6
Business emails 7 Any other 8

7. How frequently do you use a Hotspot WiFi connection?

< Once a month 1 Once a month 2
Once a fortnight 3 Once a week 4
Twice a week 5 > Twice a week 6

8. What is the approx. average duration of your sessions on the net at the hotspot?
< 15 mins 1 15 – 30 mins 2
30 – 45 mins 3 45 – 60 mins 4
 60 – 120 mins 5 > 120 mins 6

9. Which is your most preferred/ used WiFi Internet Service Provider (WISP)?
Anora Tech – Boingo 1 Reliance 2
Microsense 3 BSNL 4
Sify Wi-Zone 5 Any Other 6

10. How satisfied or dissatisfied are you with the service provided by your WISP?
V Dissatisfied Dissatisfied Can’t say Satisfied V Satisfied
1 2 3 4 5
11. What are the key issues or complaints you have encountered with the service?
Poor location of hotspots 1 No info of location 2
High prices of services 3 Unavailability of coupons 4
Limited coupon validity 5 No roaming facility 6
Poor download speed 7 Frequent disconnections 8
Security concerns 9 Any other 10
(Now Introduce Our Concept to the Respondent)

Section – II: The Future Consumption Speculation

12. Do you like the idea of unlimited roaming with mobile top ups in WiFi connectivity?
Not at all Somewhat No Neutral Somewhat Yes Very Much
1 2 3 4 5
13. Do you think you will subscribe to this new service?
Not at all I don’t think so Can’t say I think I would Def Yes
1 2 3 4 5
14. What is a reasonable price (Rs/Hr) for such a service according to you?
< 80 80 – 90 90 – 100 100 – 110 >110
1 2 3 4 5
15. You may have to switch over to Airtel. Would you be comfortable doing so?
No Need Not at all I don’t think Can’t say I think so Abs Yes
0 1 2 3 4 5

16. Do you feel your usage of WiFi would increase with availability of such a service?
Not at all I don’t think so Can’t say I think so Def it will
1 2 3 4 5

Section – III: Personal Details

Name: Gender: M F
Age: 15 – 25 1 Profile: Buss Executive 1
25 – 35 2 Buss Traveller 2
 35 – 45 3 IT Professional 3
45 + 4 Student/ Youth 4

Thank you very much for your time and responses Sir/ Madam!
 Annexure II
Retailer’s Survey Questionnaire (sample)
Good Morning/ Afternoon/ Evening Sir/ Madam,
We are conducting a survey to understand the requirements of WiFi internet connection
Hotspots. Can I please take some precious minutes of your valuable time?”
Section – I: Consumer Profile and Consumption Patterns
1. Which WISP provides service at this Hotspot (if any)?
Anora Tech – Boingo 1 Reliance 2
Microsense 3 BSNL 4
Sify Wi-Zone 5 None Term
2. How many visitors do you approx. receive on an average at this hotspot per day?
< 50 1 50 – 100 2
100 – 150 3 150 – 200 4
200 – 250 5 > 250 6
3. What is the % of visitors who use WiFi connection on an average per day?
< 5% 1 5 – 10 % 2
10 – 15 % 3 15 – 20 % 4
20 – 25 % 5 > 25% 6
4. What are their regular/ key complaints?
Poor location of hotspots 1 No info of location 2
High prices of services 3 Unavailability of coupons 4
Limited coupon validity 5 No roaming facility 6
Poor download speed 7 Frequent disconnections 8
Security concerns 9 Any other 10
(Now Introduce Our Concept to the Respondent)
Section – II: The Future Consumption Speculation
5. Do you think such a service if offered by you, would increase business for you?
Not at all Somewhat No Neutral Somewhat Yes Very Much
1 2 3 4 5
6. Would you be comfortable switching over to Airtel - Microsense?
No Need Not at all I don’t think Can’t say I think so Abs Yes
0 1 2 3 4 5
7. Do you feel your usage of WiFi would increase with availability of such a service?
Not at all I don’t think so Can’t say I think so Def it will
1 2 3 4 5

Section – III: Personal Details

Name of Hotspot: Contact Person:
Address:

Thank you very much for your time and responses Sir/ Madam!
 Annexure III:

List of Hotspots Visited for Collection of Data.

Sr. No. Name of Hotspot Location

1 The Taj Lands End - Bandra Bandra

2 Ramada Palm Groove Juhu
3 Grand Maratha Sheraton Sahar Airport
4 Le Meridian Sahar Airport
5 The Grand Continental Sahar Airport
6 Grand Central Chembur
7 Copper Chimney Bandra
8 Barista Chain Fort
9 Café Coffee Day Chain Bandra
10 CCI club Nariman Point