Priject report

ON
“Marketing strategies of Airtel”
Submitted to

FOR THE PARTIAL FULFILLMTHE DEGREE OF BBA

SESSION 2008-2010
DEPTT. OF MANAGEMENT STUDIES

College
Logo

COLLEGE NAME

Under the guidance of: Submitted by:

Supervisor Name Your Name

Lecturer (college name)

1
 STUDENT DECLARATION

I, YOUR NAME, student of MBA here by declared that the research report entitled

“MARKETING STRATEGIES OF AIRTEL” is completed and submitted under

the guidance of

GUIDANCE NAME is my original work. The imperial finding in this report is based

on the data collected by me. I have not submitted this project report to U.P. Technical

University Lucknow or any other University for the purpose of compliance of any

requirement of any examination or degree.

DATE: YOUR NAME

 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would be a

mammoth task to place on record my gratitude to each and every one of them but

a whole hearted attempt would be made nevertheless, least I be branded

ungrateful.

I am extremely thankful to GUIDANCE AT COMPANY NAME , (Unit Advisor) for

giving me an opportunity to undergo training in BHARTI AIRTEL MARKETING and
making my stay at AIRTEL MARKETING a memorable learning experience.

Where the emotions are involved words cease to work. I am deeply indebt to --------

-------------- for her encouragement, affections, valuable advice and guidance that

helped me to complete this project successfully.

 EXECUTIVE SUMMARY

The project aims at understanding the Marketing strategies at Airtel and its

impact on the perception of Airtel Cellular Services.

Research has demonstrated conclusively that it is far more costly to win a new

customer than it is to maintain an existing one. And there is no better way to

retain a customer than to exceed his expectations. For this purpose it is essential

to know the level of customer satisfaction. The focus of my research was the

measurement of customer satisfaction level for the services provided by Bharti

Airtel. The research was done for the corporate clients of Bharti Airtel. My job was

not only to represent the Corporate Sales Dept. and collect the feedback from the

clients but also to get the major complaints resolved through internal counselling.

There can be no better opportunity to interact with the external as well as the

internal customers of an organization. Finally the results of the research verify the

fact that keeping the customer satisfied is the best strategy to not only retain the

existing customers but also to expand the business to new horizons.

 TABLE OF CONTENTS

1. TELECOMMUNICATION MARKET IN INDIA 7

2. GSM MARKET IN INDIA 11

3. INTRODUCTION 23

4. TARIFF STRUCTURE 39

5. PROMOTIONAL STRATEGY 48

6. MARKET SITUATION 50

7. COMPETITIVE SITUATION 51

8. MARKETING STRATEGY ADAPTED BY BHARTI 60

9. OBJECTIVE 69

10. RESEARCH METHODOLOGY 70

11. LIMITATION 71

12. SWOT ANALYSIS 79

13. CONCLUSION 81

14. BIBLIOGRAPHY 82

15. QUESTIONNAIRE 83
 ACKOWLEDGEMENT

Achievement is finding out what you would be then doing, what you have to do. The
higher the summit, the harder is the climb. The goal was fixed and we began with a
determined resolved and put in ceaseless sustained hard work. Greater challenge,
greater was our effort to overcome it.
This project work, which is my first step in the field of professionalization, has been
successfully accomplished only because of my timely support of well-wishers. I would
like to pay my sincere regards and thanks to those, who directed me at every step in
my project work.
I would also like to thank the faculty members and the staff members of “R . S
DISTRIBUTORS MORADABAD” for their kind support and help during the
project.
 INTRODUCTION TO THE TOPIC

TELECOMMUNICATION MARKET IN INDIA

The Indian telecommunications Network with 250m telephone connections is the

fifth largest in the world and is the second largest among the emerging economies

of Asia. Today it is the fastest growing market in the world and represents unique

opportunities for UK companies in the stagnant global scenario. Tele-density,

which was languishing at 2% in 1999, has shown an impressive jump to 9.5% in

2006 and 10.5% in 2007 and is set to increase to 20% in the next five years

beating the Govt. target by three years. Accordingly, India requires incremental

investments of USD 20-25 bln for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.)

in India. With more than 33 million users (both CDMA and GSM), wireless is the

principal growth engine of the Indian telecom industry. Given the current growth

trends, cellular connections in India will surpass fixed line by late 2004/early

2005. Intense competition between the four main private groups - Bharti,

Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and

MTNL has brought about a significant drop in tariffs. There has been almost 74%
in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in

a boom time for the consumers.

The Government has played a key enabling role by deregulating and liberalising

the industry, ushering in competition and paving the way for growth. While there

were regulatory irregularities earlier, resulting in litigation, these have all been

addressed now. Customs duties on hardware and mobile handsets have been

reduced from 14 percent to 5 percent.

The Indian government has merged the IT and Telecom Ministries to speed up

reforms and decision on the Communication Convergence Bill to enable the

common regulation of the Internet, broadcasting and telecoms will be taken after

the new Government assumes responsibilities in may this year. An independent

regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional.

INDIAN CELLULAR MARKET

The Bharti Group, which operates in 23 circles, continues to be the country's

largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22

circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second

largest cellular operator in terms of subscriber base at the end of the fiscal ending

March 31, 2007, displacing Vodafone from the second position.

Vodafone, which operates in only eighteen circles, is the third largest operator with

a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL,

which operates in Mumbai and Delhi, BSNL has been a very aggressive player in

the market. "Cellular operators who expected BSNL to go the MTNL way, were

taken by surprise and did not take effective steps to counter it, till it was too late

in the day," said a telecom analyst.

Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has

reported a 7.92% growth, the highest growth in any month so far, during March

2005. Year-on-year, the cellular subscriber base in the country has almost

doubled in March 2005, and is expanding at the rate of 25% per year thereafter.

The cellular subscriber club expanded by 21.31 lakh last month. This is much

higher than 5.9 lakh subscribers added in February 2005 and 2.13 lakh in

January 2005. Idea, which operates in Seven circles, is the fourth largest operator

with a subscriber base of 17.80 lakh, higher than BPL's 11.31 lakh subscribers

across four circles. The subscriber numbers per operator drop sharply with the

sixth largest operator, Spice Communications, having a subscriber base of 9.40

lakh, followed by Reliance Telecom's 8.9 lakh subscribers. MTNL is the ninth

largest operator, with a base of 8.32 lakh subscribers.

While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros,

subscriber base of category A circles of Maharashtra, Gujarat, Andhra Pradesh,

Karnataka and Tamil Nadu jumped by 10.18 % to reach 43.64 lakh. Category B

circles of Kerala, Punjab, Haryana, Uttar Pradesh (West), Uttar Pradesh (East),

Rajasthan, Madhya Pradesh and West Bengal recorded a jump of 10.69%, with a

total base of 33.74 lakh subscribers. Circle C has reported 12.74 % growth with

subscriber numbers jumping to 5.08 lakh.

Among the metros, while Mumbai added 1,63,180 subscribers, higher than the

1,58,646 added by Delhi, the Capital's cellular subscriber base of over 80 lakh is

still higher than Mumbai's 66.89 lakh. While the cellular industry has been on roll

for the first three quarters of the previous financial year with an average of 16.75

lakh monthly additions in the third quarter, the first two months of 2007 had seen

the growth slowing down.

 GSM MARKET IN INDIA

Regional Interest Groups - GSM India

With a population of around 1.1 billion growing at roughly 1.7 per cent a year,

India is potentially one of the most exciting GSM markets in the world. After two

rather difficult years, the past 12 months have seen the region's promise

beginning to come to fruition. Much of this success can be attributed to the

stabilisation of the licensing and regulatory environment.

India's telecommunications have undergone a steady liberalisation since 1994

when the Indian government first sought private investment in the sector. More

significant liberalisation followed in 1996 with the licensing of new local fixed line

and mobile service providers. However, it has been the government's New Telecom

Policy (1999) that has had the most radical impact on the development of GSM

services. 'The policy's mission statement is 'affordable communications for all',

There is a genuine commitment to creating a modern and efficient

communications infrastructure that takes account of the convergence of telecom,

IT and media. In addition, the policy places significant emphasis on greater

competition for both fixed and mobile services.'

Competition in the mobile sector has already had a visible impact on prices with

calls currently costing less than 9 cents per minute. This means that service costs

have fallen by 60 per cent since the first GSM networks became live in 1995. It

also helps explain why a recent Telecom Asia survey revealed that more than 70

per cent of Indian mobile subscribers felt that prices were now at a reasonable

level.

One of the challenges facing GSM operators in India is the diversity of the coverage

regions -from remote rural regions to some of the most densely populated

metropolitan areas in the world. India has more than 40 networks, which cover

the seven largest cities, over 7000 towns and several Lacs villages. Such depth of

coverage has required enormous investment from India's operators. It is estimated

that more than Rs200 billion had been invested in India's GSM industry by mid-

2000, a figure that is set to be supplemented by a further Rs. 300 billion over the

next five years.

The good news is that subscriber growth is beginning to look healthy. With India's

low PC penetration and high average Internet usage -at 14-20 hours a month per

user it is comparable to the US -the market for mobile data and m-commerce

looks extremely promising. WAP services have already been launched in the

subcontinent and the first GPRS networks are in the process of being rolled out. In

the year ahead, GSM India will work with its members to realise the potential of

early packet services in anticipation of the award of 3GSM licences.

India fastest growing GSM mart

India is expected to have 145 million GSM (global system for mobile

communications) customers by 2007-08 compared to 26 million subscribers as on

March 2005, according to the Global Mobile Suppliers Association. "For GSM,

India is a success story. It is one of the fastest growing markets with its subscriber

base doubling in 2005. At this pace, the target of 150 million subscribers by 2007-

2008 is definitely achievable," Alan Hadden, president of GSA, said at a news

conference in New Delhi. Globally, the GSM market reached 1 billion users in

February 2005, he said, adding GSM accounted for 80 per cent of the new

subscriber growth in 2005."Almost every Latin American operator has chosen

GSM. In North America GSM growth is bigger than CDMA (code division multiple

access)," he said. Commenting on the raging debate over GSM versus CDMA in

mobile services arena, Hadden said: "GSM is the world's most successful mobile

standard with over 1 billion users, and is an open mobile standard. It also

supports automatic international roaming, which is a major contributor to

business plans."

India’s GSM mobile firms’ revenue up 30 pct

India’s private telecoms firms offering GSM-based mobile services reported a 24

percent rise in revenue in the year to March 2007 but said future growth rates

could slow because of heavy taxes on the nascent industry. Although India’s

mobile sector is the world’s fastest growing major wireless market, it is amongst

the highest taxed industries in the country. Mobile carriers pay as much as 25

percent of their revenue as licence fee, spectrum charges and other taxes. The

Cellular Operators Association of India (COAI) said revenue for fiscal 2003/04

stood at 83.08 billion rupees ($1.86 billion) compared with 64 billion rupees a year
earlier. According to T.V. Ramachandran, director general at COAI, “These

revenue growth rates cannot be maintained unless there is a concerted effort by

the government to cut excessive levies and allow sharing of infrastructure”

“But the potential to do much better exists as there is still huge demand in the

sector.” Ramachandran said the sector was still losing money but declined to

elaborate. Sales jumped because of a doubling of the GSM (Global System of

Mobile Communications) user base as more people entered the flourishing market

thanks to one of the lowest call rates in the world. But the monthly average

revenue per user, a key measure of profitability, declined 17.4 percent to 432

rupees in the fourth quarter compared with 523 rupees in the first quarter due to

a cut in tariffs and excessive competition among companies. Growth slowing,

demand untapped: The association has not included the financial performance

and the GSM-user base of state-run firms Bharat Sanchar Nigam Ltd, the second-

ranked player, and Mahanagar Telephone Nigam Ltd, Ramachandran said. There

are 150 million GSM customers and more than 96 million users of the rival

CDMA-based mobile services in the country.

The pace of growth in monthly additions is slowing after just 1.25 million users

took up the service in April compared with

1.9 million in the previous month and 1.63 million in February. Ramachandran

blamed the slowdown on a majority of small GSM operators being unable to

expand networks into rural swathes where demand remained largely untapped.

“Our surpluses are not enough to cover costs of network expansion and financing

charges on loans. We are making money only to cover operating expenses,” he

said. Carriers are now subsidising handset costs to woo users into the

underpenetrated industry forecast to have more than 250 million customers by

2007. Roughly three percent of Indians own a mobile phone compared with about

20 percent in China. About a dozen firms such as Bharti Airtel Ltd, 28 percent

owned by Singapore Telecommunications, Reliance Infocomm Ltd and the Indian

GSM-unit of Vodafone group battle in the hotly competitive sector.

DOES GSM HAVE THE EDGE?

GSM operators are not the only ones who are worried about the rapid strides made

by CDMA mobile players Reliance Infocomm and Tata Indicom in the Indian

cellular market?

The GSM suppliers – both handset and equipment - who incidentally also have

their other foot firmly placed in the CDMA pie, are beginning to lose some sleep

over what was earlier termed as `niche’ and `minuscule’ data carriage market by

the operators

Apart from the strong success of the two CDMA operators whose networks are

based on code division multiple access (CDMA), the miserable showing of the four

global standard for mobile (GSM) based networks that launched general packet

radio service (GPRS) service for data connectivity in last three years, has the

vendors worried. Global mobile Suppliers Association (GSA) now believes that even

though India will primarily remain a voice traffic-led market in next two-three
years, the data traffic component will grow by 25-30 per cent, an optimism that

it’s trying to make GSM operators feel as well.

THE CDMA CHALLENGE

CDMA players had launched their services with CDMA 2000 1X-based networks,

which can give hi-speed, always-on connectivity to the Internet, and other data

services. GSM operators, on the other hand, have had to migrate from the

frustrating experience of WAP (wireless application protocol) to GPRS, which has

not significantly improved the subscriber’s experience of surfing the Net on/from

mobile.

The top brass of GSA, an organisation comprising Nokia, Siemens, Ericsson,

Alcatel and Lucent Technologies - met on Tuesday in the capital to persuade the

operators to adopt EDGE (Enhanced Data rates for GSM Evolution) and leave

GPRS behind as a dream gone sour.

Only Airtel, Vodafone, BPL Mobile and Idea Cellular had launched GPRS, but the

data transfer speeds of GPRS have been abysmal. The field trials gave a speed of

around 54 kbps, but the actual speeds have not exceeded 14-18 kbps, a major
reason why GPRS growth has been so slow. As against the total GSM cellular base

of 5.61 crore, the country has between 2,80,000 lakh GPRS users only. In

comparison, the two CDMA operators have about 120 lakh connections. All these

sets are data compliant. Though no figures are available as to how many use these

for data services, the figure is believed to be respectable as a percentage ratio for

CDMA.

Bharti is almost there

But first, the EDGE! Bharti Cellular is close to commercially launching its EDGE

service in Delhi and Mumbai by end May or early June, sources said. The

company was the first to conduct field trials in November with its equipment

supplier Ericsson. Idea too held EDGE field trials in February this year with its

vendor Nokia. Vodafone and BPL are yet to hold the trials. The two companies

would eventually migrate to EDGE, but perhaps after seeing the response to

Bharti’s service.

EDGE holds the promise of delivering data speeds of around 170-180 kbps (as

against the theoretical speed of around 380 kbps) which, if achieved, promises the

launch of many data applications. The scalable cost of migrating from GPRS to

EDGE is not too high and mainly comprises software upgrades in case of a

modern network such as Bharti and Hutch, claimed chairman of GSA India

chapter Rakesh Malik.

Will GSM maintain its headstart?

At the GSM Evolution Forum held in New Delhi, GSA president Alan Hadden

predicted that GSM growth will far outstrip CDMA as was happening globally. He

felt India could have as many as 200 million GSM subscribers by 2007-2008, up
from nine million in December 2004. According to GSA, there are over 1.1 billion

GSM subscribers worldwide as against 250 million CDMA customers. The revenue

of top 25 global operators from data averages 18 per cent and 22 of these

operators run GSM networks. Overall, there are 76 operators in 50 countries that

have committed to deploy EDGE.

Almost every country has a GSM-based network and even those US operators,

which operated on now-defunct TDMA technology, were migrating gradually to

GSM, not CDMA, pointed out Hadden at the GSM Evolution Forum. The Forum is

a global GSA program to assist the operators for evolution to third generation (3G)

technologies. “People are using their phones for much more than voice. Fifteen

networks have commercially launched EDGE as it can run 3G like services in the

existing spectrum for the operators without needing a 3G license. Even the

migration to a full-fledged 3G level of Wideband CDMA (WCDMA) will be smooth

with EDGE,” said Hadden.

“Besides, the automatic roaming provided by GSM networks in almost 200

countries is a power that CDMA doesn’t give you. We know for sure that almost

20-25 per cent of the revenue for some GSM operators comes from roaming

customers,” he added. But CDMA is no pushover with Korea and Philippines as

the shining jewels in its crown. The first CDMA 2000 1X was commercially

deployed in October 2000.

Already, 81 operators have launched 77 CDMA 2000 1X networks whereas nine

have launched services based on 1xEV-DO platform across Asia, the Americas and

Europe. At least, 16 new 1X and six 1xEV-DO networks are scheduled to be

deployed in 2004, according to CDMA Development Group. EV-DO and EV-DV are
the next level of evolution on the CDMA 2000 1X platform, capable of delivering

services comparable to 3G WCDMA.

Where are the models?

What will matter a lot in this war will be the availability of EDGE compliant

handsets at affordable rates. While the two CDMA operators have been giving out

handsets that can give hi-speed data transfer, same has not been the case with

GSM. Even now, GPRS handsets have not become commonplace and GPRS feature

is found only in mid and high-end segment handsets.

End sum game

When the networks deploy EDGE, subscribers can expect the delivery of advanced

mobile services such as easy downloading of video and music clips, full

multimedia messaging, besides high-speed Internet and e-mail access, provided

their handset supports all this.

But the real cruncher will be the migration at a later stage to 3G technologies such

as WCDMA, EV-DO or EV-DA as and when the government decides what to do

with the 3G licences. WCDMA for example promises delivery of a phenomenal 2

megabytes per second (mbps), equivalent to what a leased line in many middle

level corporates gives.

More importantly, WCDMA will spawn a whole new range of full motion audio-

video applications, including video telephony. GSM lobby may continue to remain

gung ho over the future of their technologies over that boosted by the American

firms Qualcomm and Motorola, but Indian market could well throw an interesting

scenario that industry experts will do well to watch. In the coming months,
Reliance plans to offer its CDMA subscribers much more than what GSM players

intend to deliver through their EDGE for their subscribers.

Who succeeds in this battle for mobile customer’s eyeballs is most difficult to

predict. A Korea and Japan may not be waiting to happen in India, but India will

probably be more like the Chinese market with both standards co-existing. For

now, GSM rules!

 INTRODUCTION

Airtel (Bharti Airtel Ltd.)

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments

in telecommunications services. Its subsidiaries operate telecom services across

India. Bharti Airtel is India's leading private sector provider of telecommunications

services based on a strong customer base consisting of 50 million total customers,

which constitute, 44.6 million mobile and 5.4 million fixed line customers, as of

March 31, 2007.

Airtel comes to us from Bharti Airtel Limited - a part of the biggest private

integrated telecom conglomerate, Bharti Enterprises. 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 has also put its footsteps into Insurance and Retail segment in

collaboration with Multi- National giants. Bharti is the leading cellular service
provider, with a footprint in 23 states covering all four metros and more than 50

million satisfied customers.

S E R V I C E S

Airtel Prepaid

Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti

Enterprises, India's leading integrated telecom service provider. Going mobile with

Airtel Prepaid is a new way of life. With a host of great features, also simple to use,

Airtel Prepaid makes everything that you dreamt and believed, possible.

Total Cost Control

You can control your Airtel Prepaid like never before. No more rentals or deposits –

simply recharge as much as you need to from as low as Rs. 10, to as high as Rs.

10,000/-.

Pre activated STD/ISD without deposits or rentals

You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No more

paying deposits or having a minimum balance in your account to make an

STD/ISD call. Hassle-free calls are here to stay!

Strong Network Coverage

Enjoy complete clarity when calling with Airtel’s world-class technology and

unbreakable network coverage that spans over 23 circles across the country.

Instant Balance and Validity Enquiry

Your account balance is updated on the screen of your handset at the end of each

chargeable call. You can also call 123 from your mobile phone and listen to the

voice announcement or simply dial *123#, press 'OK' or 'YES' button and your

account balance will be displayed on the screen of your handset.

Recharge your Airtel Prepaid

Recharging is Easy. The calling value on your card keeps reducing as you make

calls or use any other chargeable service. Choose the Airtel Prepaid Recharge

Coupon that’s right for you, from a variety of tailor– made recharge coupons with

different denominations, which are available at a number of outlets across your

city. Simply follow the procedure mentioned below, to recharge your phone.

Prepaid Roaming

Airtel Prepaid comes preactivated with 'National Roaming', so you stay connected

no matter wherever you are. You can also send or receive MMS, check your email

and access other GPRS services while roaming in India as you would in your own

city. While traveling abroad you can receive calls & send or receive SMS.

Other Services

Airtel brings you, a wide range of Services that will change the way you

communicate. Try them and discover a whole new world of fun and excitement.

Call management Services

Call waiting, call hold, call divert and Caller Line Identification Presentation – all

with your Airtel prepaid connection.

Voice Mail

When your handset is switched off, or you’re too busy to answer the phone, Airtel

Voicemail will answer your calls and record a message. The best part is that
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call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily using text, if it's too noisy to talk or you don't

have much time. It's the way to share those interesting one-liners, important

reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.

Subscription Alerts

Get regular alerts on news, jokes, business, health and films on your Airtel mobile

phone with Subscription Services. SMS <SUB NEWS> to 3333 for News, <SUB

JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts &

<SUB VAASTU> for Vaastu tips.

MMS (Multi-media Messaging Service):

Jazz up your messages with pictures, images and video clippings, with MMS from

Airtel! To activate MMS on your phone, SMS 'MMS' to 56465 and save service

settings.

Airtel Live!

Make your mobile the most happening entertainment destination with Airtel Live!

Airtel brings you the latest in entertainment and information services, right on

your phone!

Airtel Live! WAP Services: Download the latest ring tones, games, wallpapers,

videos and much more. You can also get news clips, watch live TV and download

full songs on you phone. To get Airtel Live! settings on your phone, SMS 'Live' to

56465 and save the settings that you receive as your preferred connection. Airtel
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'FUN' to 56465.

Airtel Live! Voice Services: Just Dial 56465, and name the service. For e.g. say

ring tones to download your favorite ring tones. You can also choose a variety of

content options like Live Cricket Commentary, latest National / International

News, Movie Reviews or Stock Market Updates.

Airtel Live! SIM Services: Access loads of fun content and exciting services like

cricket, stocks, on your phone at the touch of a few buttons with Airtel Live! SIM

based Services on your SIM card menu. To download new services on your Airtel

SIM, choose the "What's new" option under the "Airtel services" menu.

Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword

as an SMS to 56465! Choose Astrology / Horoscope, Cricket, Bollywood /

Hollywood / Indi Pop Ring tones. In case you need assistance SMS, Help to 56465.
Hello Tunes

Tired of that boring old ‘tring tring’ on your phone? Well now when a friend calls,

you can make them groove to the hottest new tracks burning up the music charts

with Hello Tunes from Airtel! You get a wide choice of songs in the Popular & New

Arrivals categories that are updated regularly. What's more you can directly call

the number for your kind of music, e.g. call 678005 for English New and 678001

for Hindi New. This would directly take you to your favorite artist's Hello Tunes

listing.

Copy a Hello Tune

Get the tune you want, all you have to do is call 55055 and follow the simple voice

instructions to copy your favorite Hello Tunes. Once inside the copy feature, just

key in the 10-digit Airtel mobile number you want to copy the Hello Tune from and

you get the same Hello Tune assigned to your number.

Gift a Hello Tune

Forget gifting chocolates, flowers and greeting cards. Say it with a song instead!

Gift a Hello Tune to that special someone. Just call 55055 and choose the song

that you want to gift. Follow the simple voice instructions and key in the 10-digit

Airtel mobile number that you want to gift the Hello Tune to. You will get an SMS

notification upon successful receipt of that gift.

Buy Music - Airtel Music Shops

Buying your favorite Hello Tune or Ring tone is as simple as recharging your

phone with talk time. Simply walk into your nearest Airtel Shop and walk out with

your favorite song. Choose from Bollywood Hits to Indipop Remixes, Hard Rock to
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list of more than 18000 songs.

Reach us Anytime Anywhere

In case you need assistance, dial '121' - our toll-free number, accessible from

anywhere in the country, even while roaming. You can also send us an SMS to

121 or mail us at 121@airtelindia.com.

*In case of email, mention your mobile no. like, 9810012345, in the subject of the

mail for a quicker response.

Airtel Postpaid

Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting,

innovative yet simple new ways to communicate, just when you want to, not just

through words but ideas, emotions and feelings. To give you the unlimited freedom

to reach out to your special people in your special way.

Easy Billing

Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’

section and view your monthly bill with call details for last three months. Sort

your calls between personal and official or analyze your usage, at the click of a

button. To change your tariff plan call our IVR at 121 and leave a request.

Easy Payment Options. Anytime Anywhere

You can choose from a host of convenient payment options only with Airtel. Walk

into any Airtel relationship centre and make your payments by cash or credit card.

Drop a cheque at any of the drop boxes for making payments or simply log on to

My Airtel section and pay instantly through your credit card. You can also opt for

easy payment options like:

Standing Instructions

You can give us standing instructions to debit your credit card account for your

monthly Airtel bills. All you have to do is fill the Standing Instruction Form and

mail, fax it to us or drop it any of our relationship centres.

Electronic Clearing System

Fill an ECS form and mail, fax it to us or drop it any of our relationship centres to

directly debit your bank account for your monthly Airtel bill.

Pay while roaming

Airtel has introduced 'Anywhere payment' that offers you the convenience of

making payments while you roam. Walk in to any Airtel Relationship Centre in the

country, make payments by cash or credit card and enjoy uninterrupted Airtel

Services.

Credit limit

Your pre-set credit limit mentioned on your monthly bill helps you keep your

mobile charges in control, keeps track of your usage and ensures that your mobile

phone is not misused. Should you exceed your credit limit, you will be informed

via a voice or a non-voice message to make an interim payment and reduce your

account balance below your credit limit. You may also choose to pay us an

additional refundable deposit to enhance your credit limit or opt for our

convenient payment method of Credit Card Standing instruction .You can also

make use of ECS facility.

Strong Network Coverage

Enjoy complete clarity when calling with Airtel .It offers you world class technology

and unbreakable network coverage that spans over 23 circles across the country.

Long Distance Calling Facility

Call long distance calls in India and Overseas with STD / ISD facility on your

Airtel phone.

Widest Roaming - National and International

Airtel's roaming service allows you to stay connected and use your mobile phone

to make or receive calls from almost anywhere in India and also over 160

countries, abroad.

GPRS - Roaming

Use Airtel Postpaid's GPRS services, while roaming, to access the internet and

office mails (eg. BlackBerry services), from almost anywhere in India and abroad.

Say it. In more than just words, with Services from Airtel

Airtel brings you a wide range of Services that will change the way you

communicate. Try them and discover a whole new world of fun and excitement.

Call management Services

Call waiting, call hold, call divert and Caller Line Identification Presentation, help

you do more with your Airtel Postpaid connection!

Conference call

You can hold a teleconference with 5 people simultaneously with Call

Conferencing service from Airtel. In fact, you can set up a conference even when
the other five are using a landline phone. To know more, call customer service at

121.

Missed call alert

A missed call alert is a SMS that you will receive for all the calls that you missed.

The SMS will detail the CLI and the time when the call was made. To activate, dial

*135*2# then press the call button and wait for the request to be completed.

Voice Mail

When your handset is switched off, or you’re too busy to answer the phone, Airtel

Voicemail will answer your calls and record a message. The best part is that

there's no extra monthly cost for setting up Voicemail - you just pay for the phone

call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily, using text, if it's too noisy to talk or you don't

have much time. It's the way to Share those interesting one-liners, important

reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.

Subscription Alerts

Get regular alerts on news, jokes, business, health and films on your Airtel mobile

phone with Subscription Services. SMS <SUB NEWS> for News, <SUB JOKE> for

Jokes, <SUB BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB

VAASTU> for Vaastu tips to 3333.

MMS (Multi-media Messaging Service):

Jazz up your messages with pictures, images and video clippings, with MMS from

Airtel! To activate MMS on your phone, SMS 'MMS' to 56465 and save service

settings.

Airtel Live!

Make your mobile the most happening entertainment destination with Airtel Live!

Airtel brings you the latest in entertainment and information services, right on

your phone!

Airtel Live! WAP Services: Download the latest ringtones, games, wallpapers,

videos and much more. You can also get news clips, watch live TV and download

full songs on you phone! To get Airtel Live! settings on your phone SMS 'Live' to

56465 and save the settings that you receive as your preferred connection. Airtel

Live! Portal can be accessed from you GPRS enabled phone, by sending a SMS

'FUN' to 56465.
Airtel Live! Voice Services: Just Dial 56465 and say the name of the service. For

e.g. say ‘Ring tones’ to download your favourite ring tones. You can also choose a

variety of content options like Live Cricket Commentary, latest National /

International News, Movie Reviews or Stock Market Updates.

Airtel Live! SIM Services: Access loads of fun content and exciting services like

cricket, stocks, on your phone at the touch of a few buttons with Airtel Live! SIM

based Services on your SIM card menu. To download new services on your Airtel

SIM, choose the "What's new" option under the "Airtel services" menu.

Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword

as an SMS to 56465 ! Choose Astrology / Horoscope, Cricket, Bollywood /

Hollywood / Indi Pop Ring tones. In case you need assistance SMS ‘Help’ to

56465.
GPRS (General Packet Radio Services)

Log on to the internet, with GPRS that allows data transmission at a higher speed.

Access e-mails and internet across Airtel's pan-India presence using 'Mobile Office'

with your phone or a phone and laptop both.

Get the EDGE

Browse the internet on your mobile phone with Airtel's EDGE services. Enjoy live

TV, enhanced WAP experience and Airtel Data Cards on our high speed network.

Hello Tunes

Tired of that boring old ‘tring tring’ on your phone? Well now when a friend calls,

you can make them groove to the hottest new tracks burning up the music charts

with Hello Tunes from Airtel! You get a wide choice of songs in the Popular & New

Arrivals categories that are updated regularly. What's more, you can directly call

the number for your kind of music, e.g. call 678005 for ‘English New’ and 678001

for ‘Hindi New’. This would directly take you to your favourite artist's Hello Tunes

listing.
Copy a Hello Tunes

Like a tune you want, all you have to do is call 55055 and follow the simple voice

instructions to copy your favourite Hello Tunes. Once inside the copy feature, just

key in the 10-digit Airtel mobile number you want to copy the Hello Tune from and

you get the same Hello Tune assigned to your number.

Gift a Hello Tunes

Forget gifting chocolates, flowers and greeting cards. Say it with a song instead!

Gift a Hello Tune to that special someone. Just call 55055 and choose the song

that you want to gift. Follow the simple voice instructions and key in the 10-digit

Airtel mobile number that you want to gift the Hello Tune to. You will get an SMS

notification upon successful receipt of that gift.

Buy Music - Airtel Music Shops

Buying your favourite Hello Tune or Ringtone is as simple as recharging your

phone with talktime. Simply walk into your nearest Airtel Shop and walk out with

your favourite song. Choose from Bollywood Hits to Indipop Remixes, Hard Rock to

Gujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping Tamil Hits from a

list of more than 18000 songs.

Reach us, Anytime Anywhere

In case you need assistance, dial '121' - our toll-free number, accessible from anywhere in the

country, even while roaming. *In case of email, mention your mobile no. like 9810012345

in the subject of the mail for a quicker response. TARIFF STRUCTURE

Prepaid Tariffs

Airtel Prepaid Ready Cellular Card and Recharge Cards are available, all over the

city at over retail outlets including 24-hour outlets. Airtel Prepaid Ready Cellular

Card and Recharge Cards are available, all over the city at over retail outlets

including 24-hour outlets.

Airtel Prepaid Regular

449
SUK
Pulse Rate 60 sec

Price of Pack (Rs.) Rs.449

Free Airtime on Pack (Rs.) Nil

Incoming Calls (Rs.) Free while in home network

Airtel GSM / CDMA Landline / WLL

(10 Digit)

LOCAL RATES (Rs./min) Rs.1.20 Rs.2.00 Rs.2.40

STD RATES (Rs./min) Rs.2.75 Rs.2.75 Rs.2.75

ISD (Rs./min)

USA, Canada, Europe (Fixed Rs.6.40

Line), Australia, Singapore,
Hong Kong, Thailand, Malaysia,
Indonesia, New Zealand.

Gulf, Europe (Mobile), SAARC Rs.9.20

countries, Africa & Rest of the
world

Cuba, Sao Tome & Principe, Rs.40.00

Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands,
Vanuatu, Cook Islands, Tuvalu,
Tokelau, Norfolk Island,
Sakhalin

SMS (Rs.)

Local Rs.1.20

National Rs.2.00

International Rs.5.00

Other Details

*Rs 50 Local Airtel-Airtel Mobile talktime per month for 6 months

* First month Airtel-Airtel credit within 72hrs of activation & balance credit by 1st week of every mon
*The SMS charge as applicable is per 160 characters
* Validity- 24 months.

POSTPAID
Airtel Postpaid allows you to choose from a variety of affordable talk plans,

convenient payment options and host of rich features. So get set to enjoy a world

of limitless possibilities!

Reference Tarif Packages (RTP)

ON TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 524
Bill plan Charge Rs. 444
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 99
Airtel GSM / Landline /
CDMA (10 WLL
Digit)
Local Rates Rs. 1.99 Rs 1.99 Rs 1.99
STD RATES
50 – 200 Km
200 – 500 Km
500 + Km
ISD
USA, Canda, Europe (Fixed Line), Rs. 7.20
Austalia, Singapore, Hong Kong,
Thailand, Malaysia, Indonesia, new
Zealand
Gulf, Europe (Mobile), SAARC Rs 9.99
Countries, Africa & Rest of the
world
Cuba, Sao tome & Principle, Rs. 40.00
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Cook Island, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00

Airtel One Standard 150

ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after
24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 50
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Bissau, Diego Garcia, Nauru,
Solomon Islands, Vanuatu, Cook
Islands, Tuvalu, Tokelau, Norfolk
Island, Sakhalin
SMS
Local Rs 1.00
National Rs 2.00
Intentional Rs. 5.00
VAS Rs. 3.00

 This Bill Plan is also available under Advance Rental of Rs. 799 for 2 years.

Local Pack

Airtel to other local mobiles (non Airtel) At Rs 1 / min

 Monthly rental Rs 25 per months/-

 STD Pack

Airtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min.

 Monthly rental Rs 75 per month/-

 Special offer for Airtel Telephone service customers for availing Airtel

Mobile services

If you already have Airtel Telephone service, you can buy a new Airtel Mobile

connection under Airtel One Standard 150 Plan.

Benefits:

 Non security deposit.

 No membership / activation fee

 Enjoy calls to your Airtel fixed line no. at just 50 P / min.

 Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been

waived off for 1 year.

For details, call us 516-12345

Advance Rental benefits (1year scheme)

Pay an advance rent of Rs 499 and enjoy Airtel One Standard 150 plan at Zero

monthly rental for one year.

Advance rental of Rs 499 gives you a rental discount of Rs 150 every month for

the next 2 months. All other options and charges are as per the existing Airtel

One Standard 150 Plan.

Airtel one Standard 299

ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after
24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs 299
Bill Plan Charge Rs. 150
Monthly Rental Rs. 299
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Airtel GSM / Landline /
CDMA (10 WLL
Digit)
LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00
STD RATES
50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40
200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40
500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40
ISD
USA, Canda, Europe (Fixed Line), Rs. 7.20
Austalia, Singapore, Hong Kong,
Thailand, Malaysia, Indonesia, new
Zealand
Gulf, Europe (Mobile), SAARC Rs 9.99
Countries, Africa & Rest of the
world
Cuba, Sao tome & Principle, Rs. 40.00
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Cook Island, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00

You also enjoy 25 FREE local mobile to mobile SMS

Senior Citizen Plan

ONE TIME CHARGES

Activation Charges Rs. 250
Membership Fee Rs. 250 (Concerts into security
deposit after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 51
Monthly Rental Rs. 99
Clip NA
Cuba, Sao Tome & Principle,
Guinea Bissau, Diego Garcia,
Nauru, Solomon Islands, Vanuatu,
Cook Islands, Tuvalu, Tokelau,
Norfolk Island, Sakhalin
SMS
Local Rs. 1.50
National Rs. 2.00
International Rs. 5.00
VAS Rs. 3.00

With Senior Citizen Plan

You can take 3 Friends and Family numbers:

 Airtel to Airtel (1local no.) – Rs. 0.5 / min.

 Airtel to Airtel (1 STD no.) – Rs 1.5 / min

 ISD calls to US / Canada / South East Asia / Australia / New Zealand) – Rs.

9.99 / min

You also get FREE alert subscription worth Rs 30 / alert or 3 months on:

 News
 Astrology
 Health Tips

The SMS charges as applicable is per 160 Characters.

PROMOTIONAL STRATEGY

Airtel to “Touch Tomorrow” with a new brand vision

The Bharti Mobile promoted AirTel cellular service will go in for repositioning of its

brand image. The new brand ethos is portrayed in two distinct fashions - the tag

line "Touch Tomorrow", which underscores the leading theme for the new brand

vision, followed by "The Good Life", which underscores a more caring, more

customer centric organization. Aimed at re-engineering its image as just simply a

cellular service provider to an all out information communications services

provider, Touch Tomorrow is meant to embrace the new generation of mobile

communication services and the changing scope of customer needs and

aspirations that come along with it

The new communication is about a new dimension in the cellular category that

goes beyond the Internet, SMS, roaming, IVRS, etc but which engulfs the whole

gamut of wireless digital broadband services that will constitute tomorrows

cellular services. The new campaign is in two phases - the first of which will

communicate overall brand philosophy and the second products and services.

According to Mr. Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited,

Karnataka "We are adopting a new brand- platform - Touch Tomorrow - not only

to reflect our corporate ethos but also business strategy".

The new identity will have the logo in Red, Black and White colours along with

lower case typography to convey warmth. AirTel will incorporate the latest

branding in all of its communication and will soon be going in for an enhanced

promotional drive to establish the brand's presence.

LIFE TIME PLAN

PRE-PAID card users need not worry anymore about recharging their coupons

every month. Company has launched a plan that allows users to take a pre-paid

connection with lifetime validity for a one time payment of Rs. 999. Subscribers

availing themselves of this scheme will also get full talk time for the recharge

coupon they purchase and also have the option to buy Taiwanese manufactured

Bird mobile handsets for as low as Rs. 1,399.

The move is aimed at stopping the churn in the pre-paid subscriber base. Once a

subscriber takes this plan, he will always be an Airtel subscriber whether the

mobile is being used or not.

 MARKET SITUATION

At the time of launch

The first mover in the market was Airtel which launched its services in Delhi in

Aug 1995 (Informal launch). Essar Cellphone followed by launching its services

informally in Oct 95. At this point of time, the market was at a nascent stage,

awareness level was low and both operators independently tried to spread

awareness and educate the people

Once the networks were commercially launched, it became a number game with a

multitude of schemes being offered to woo customers Initially the cellphone was

perceived as a status symbol and utility took a back seat The target segment in

Delhi were corporate and the high income group. The average capacity installed

was for 1.5 lakh subscribers. This coupled with the steep license fee paid to DOT

put pressure on the operators to break-even by rapidly expanding their markets.

In the first two years, this led to a number of schemes being offered and prices

crashing.
COMPETITIVE SITUATION

Airtel launched its services before Essar and skimmed the market picking up the

bulk of the high usage premium clients. This is a very competitive industry with

the two companies differentiating either on value-added services or price. Airtel is

perceived as the high quality provider and has a premium image. Essar, on the

other hand, is perceived as the lower end service provider. Airtel positions itself as

the market leader on the basis of the number of subscribers. Essar is trying to

counter this by emphasising on the reach of its network and the quality of its

service. However, Essar is somewhat not been very successful largely due to the

inconsistency in advertising

To promote themselves, both the players have been dependent on tactical

advertising However, they have restrained from using comparative advertising

Hoardings have been a very popular medium for carrying the advertisements Airtel

has also been advertising on television using the Bharti Telecom name.

SALES DEPARTMENT AND STRATEGY

A. Major Accounts (Direct Channel)

 Handles corporate (named and famed) accounts

 Forecasting of sales

 Mapping the accounts

 Providing after sales support to the subscribers.

 Maintaining call reports for records.

 Providing Feedback to the marketing department regarding the requirement

of the market.

B. IDC (indirect Channel)

 Handling distribution

 Maintaining records and level check of the channel partner

 Liaisoning between the channel partner and the company.

  Target achievement

 Training the executives of the channel

C. Distribution Support

1. Logistics

 Monitor handset and SIM card requirements of channel partners and

co-ordinate with stores

 Settle areas of concerns such as incentive claims of channel partners

2. Rental

 Provide cellular services (SIM cards) on rent.

 Provide cellular phones on rent

 Useful for people visiting Delhi for a short interval.

3 Telesales

 Call customers and generate sales lead.

 Follow up with the customers, if they need any assistance

 Pass on the sales lead to the channel department.

4 Audit

 Consultant to the AirTel showrooms.

 Monitor the operations at the AirTel distribution outlets Organize training.

5. Retail

 Locate shops to open retail counters.

 Monitor the retail counters.

MARKET SEGMENTATION

Segmentation is beneficial because of better predictability of the target consumer

group, minimization of risk exposure, better ability to fine-tune a product / service

to the requirement of target buyer and the resultant ease in designing a proper
designing marketing mix strategy In this case segmentation is on the bade of

income.

In evaluating different market segments the company looks at two factors The

overall attractiveness of the segments and the company's objectives & resources

The present market for Cellular phones, pagers and conventional phones is as

follows

Premium Middle Economy

Upper Lower Upper Lower Upper Lower
Cellular Phones X X X - - -
Pager X X X X - -
Conventional X X X X X -
Phones
X Market Segment Targeted

TARGET MARKET SEGMENT

Airtel has targeted the premium and upper middle class. The rationale behind it is

that only those segments should be targeted who value time and have the paying

capacity. It Is also planning to target the business tourists during their stay in the

capital

About 60% of the clientele are top executives of corporate houses. About 15% are

foreign organisations and the rest are professionals and small businessmen.

During the introduction stage there was intense pressure to get consumers across

to hook up with their brand, because getting them to switch brand loyalty later

would be hard

So far Airtel marketers have been concentrating totally on the business executive

class but now that the basic viable volumes has beer) built up and prices have

declined to a certain extent they are planning to venture further a field.

POSITIONING
The product is sought to be positioned as a business efficiency tool. a lifestyle

revolution and a status symbol The emphasis is to remove misconception that the

cellphone is an expensive means of communication and drive home the point that

the cellphone is actually a day-to-day utility

PRODUCT POLICY AND PLANNING

The product or service is the heart of the marketing mix. Without a product or a

service customers' needs cannot be satisfied.

The basic product promise by Airtel is mobility. Airtel's main marketing strategy

is to be a first mover all the time. It has recognised the significance of making the

first move-- because in the field of Communication & Information Technology

changes occur at a tremendous pace.

Effective product segmentation has to be carried on continuously because basic

services can be and will be copied and in time become expected component of the

product. Airtel seeks to carry out this segmentation through provision of new

information services and making new facilities available. The product policy and

planning depends on the stage of the product life cycle. At present the cellular

phone market has reached the maturity stage. Since, the premium segment is

nearing saturation the company targeting the upper middle and middle-middle

class. In order to do so Airtel is trying to optimise the price performance package

by offering suitable "product bundling".

This involves the selection of the suitable hardware (handset) and its software (its

services.) with reasonable price in order to deliver maximum price performance to

its customers. In addition, it offers free Airtime services and other concessions to

make the prices and thus the product more attractive. It has also opened a 24

hours customer service.

Only price doesn't serve as an effective differentiator, value added services become

the effective differentiator.

The "Value Added Services" provided from Airtel are:-

1). Voice Mail service

This system is similar to the answering machine - if the user is not able to answer

a call for some reason the caller can leave messages in the voice mail box which

can be later retrieved by the user

ii) Short Message Service

The short message service is like a two-way pager. It gives an option of sending

and receiving text messages directly from one mobile phone to another without the

intervention of an operator.

iii) Mobile Fax 1 Data Service

This service helps the subscriber to send and receive Faxes, access E-mail,

download computer files from other systems and remotely log on to another

computer and surf the Internet.

iv) Cash Card

The cash card is a pre-paid and pre-activated card which allows the buyers to buy

air time in advance. All it requires is the payment of an initial amount. This is a

useful service for people who travel to Delhi often and those who want to control

the expenses on their calls.

v) Caller ID
Displays calling person's number.

vi) Outgoing call restriction

To prevent or limit outgoing calls, for example, in peak hours. Also possible to

exclude one or several countries, or any geographical region, to permit only local

calls, or to limit the outgoing calls to a listed number.

viii) Call forward

Incoming calls can be forwarded to another fixed or mobile phone.

Besides these some other services provided by Airtel are - Call conferencing, Call

Broadcast et cetera.

It is in the operators -Interest that they not only get many subscribers but also get

them to use the mobile facility frequently. In the early stages getting increases to

subscribe may be easier than getting them to talk since they will find it costlier to

use the mobile phone as compared to a conventional phone [if is believed that

initially cellphones would be used buy]

viii) Roaming Facility

Roaming facility is available while the subscriber is travelling. The billing is done

in the home network (Delhi). Roaming facility is available manually* as well as

semi-automatically. Once a subscriber is In any other city or country, where a

GSM network is available, simply insert the SIM card of the local operator Into

your handset and start talking.

* Manual Roaming means a separate SIM card is provided for each city

** Semi automatic roaming means one card has the facility for different cities.

AIRTEL'S MARKETING ORIENTATION.

Since this is a high-involvement expensive product, the service provider has to

fully take care of the customers.

a) They take personal responsibility to "get" the answer for any problem faced by

the customer

b) They anticipate customers' problems and take pro-active steps to prevent

them

c) They give answers to the questions & requests, quickly & efficiently.

d) They have a positive tone & manner while interacting with customers.

e) They end the interaction on a positive or a humorous note-making the last 30

seconds count.

Airtel realises that attracting people 'Is easy but converting them into loyal

customers is hard, hence emphasis is on maintaining a 'Smiling and a Friendly

Atmosphere' to please and retain the customer.

PRICE AND PRICING POLICY

AIRTEL has realised that the Indian market is price sensitive. Therefore it care of

the has come up with various innovative tariff schemes to take needs of different

category of customers- Generally, the cellular services are more expensive than the

land line based telephone services. This is due to the reason that the operating

companies are required to pay a fee to the government for using airtime.
 MARKETING STRATEGY
ADOPTED BY BHARTI

Bharti has spent a considerable amount on advertising its mobile phone service,

Airtel. Besides print advertising, the company had put up large no of hoardings

and kiosks in and around Delhi.

The objective behind designing a promotion campaign for the ‘Airtel’ services is to

promote the brand awareness and to build brand preferences.

It is trying to set up a thematic campaign to build a stronger brand equity for

Airtel. Since the cellular phone category itself is too restricted, also the fact that a

Cellular phone is a high involvement product, price doesn't qualify as an effective

differentiator. The image of the service provider counts a great deal. Given the

Cell phone category, it is the network efficiency and the quality of service that

becomes important. What now the buyer is looking at is to get the optimum price-

performance package. This also serves as an effective differentiator

Brand awareness is spread through the' campaigns and brand preference through

brand stature. Airtel's campaign in the capital began with a series of 'teaser'

hoardings across the city,' bearing just the company's name and without

explaining what Airtel was. In the next phase the campaign associated Airtel with

Cellular only thereafter was the Bharti Cellular connection brought up. Vans with

Airtel logos roamed the city, handing out brochures about the company and its

services to all consumers. About 50,000 direct callers were sent out. When the

name was well entrenched in the Delhiites’s mind, the Airtel campaign began to

focus on the utility of Cellphone. In the first four months alone Airtei's

advertisement spend exceeded Rs. 4 crores.

As of today the awareness level Is 60% unaided. This implies that if potential or

knowledgeable consumers are asked to name a Cellular phone service provider

that is on the top of his/her mind 60% of them would name Airtel. As for aided it

-is 100% (by giving clues and hints etc.).

Brand strength of a product or the health of a brand is measured by the

percentage score of the brand on the above aided and the unaided tests. The

figures show that Airtel is a healthy and a thriving brand.

Every company has a goal, which might comprise a sales target and a game plan

with due regard to Its competitor. Airtel 's campaign strategy is designed keeping

in mind its marketing strategy. The tone, tenor and the stance of the visual ads

are designed to convey the image of a market leader in terms of its market share.

It tries to portray the image of being a "first mover every time" and that of a

"market leader".

The status of the product in terms of its life cycle has just reached the maturity

stage in India. It is still on the rising part of the product life cycle curve in the

maturity stage.

The diagram on the left hand side shows the percentage of the users classified into

heavy, medium and low categories. The right hand side shows the revenue share

earned from the three types of users.

Airtel, keeping in mind the importance of the customer retention, values its heavy

users the most and constantly indulges in service innovation. But, since heavy

users comprise only 15 - 20% of the population the other segment cannot be

neglected.

The population which has just realised the importance of cellular phones has to be

roped in. It is for this reason that the service provider offers a plethora of

incentives and discounts. Concerts like the "Freedom concert" are being organised

by Airtel in order to promote sales. The media channel is chosen with economy in

mind. The target segment is not very concrete but, there is an attempt to focus on
those who can afford. The print advertisements and hoarding are placed in those

strategic areas which most likely to catch the attention of those who need a

cellular phone. The product promise (which might cost different 1 higher) is an

important variable in determining the target audience.

Besides this, other promotional strategies that Airtel has adopted are .

(i) People who have booked Airtel services have been treated to exclusive

premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer

customer bonus miles on the German airlines frequent flier's programs.

(ii) There have been educational campaigns, image campaigns, pre launch

advertisements, launch advertisements, congratulatory advertisements,

promotional advertise-ments, attacking advertisements and tactical

advertisements.
 DISTRIBUTION

Company

Franchisee Distributor

Dealers
Dealer

Customer
Customer

The- company whose operations are concentrated in and around Delhi. It 27

Franchisees and 15 Distributors- They also have 8 'instant access cash card

counters- Each franchises or distributor can have any number of dealers under

him as long as the person is approved by the Airtel authority. Each franchises

has to invest Rupees Ten Lakhs. to obtain a franchise and should employ an

officer recruited by Airtel. This person acts as an liaison between the company

and the franchises. The franchises can it any number of dealers as long as their

territories do not overlap. But unfortunately Airtel has not been very successful in

controlling territorial overlaps of dealers. The franchises can carry out his 1 her

own promotional strategy. For this the. company contributes 75% of the money

and the franchises contributes 25% of the money. The dealers under the

franchisee receive the same commission. The franchises and the dealer obtain the

feedback from the customers and they are sent through the liaison officer on a

day-to-day basis to Airtel. The dealer has to invest Rupees. One Lakh as an initial
investment. The dealer of Airtel are not allowed to provide any other operators'

service.

Target set for distributors and the dealers is 100 -150 activations per month.

Hence the dealers can also go for their own promotions like banners and discounts

on festivals etc. The dealer provides service promptly. The consumer on providing

the bill of purchase for the handset and proof of residence has only to wait an

hour before getting connected. The staff of the dealers and the franchisees are

provided training by the Airtel personnel.

The complaints encountered by the franchisees and dealers are either handset

being non-functional or the SIM Card not getting activated. Anything more

complicated is referred to the main Airtel office in Delhi.

WHAT DOES AIRTEL OFFER?

With Airtel, the subscriber wouldn't just get a personal phone that lets him/her be

in touch, always, but also gets a host of benefits that let him/her manage his/her

time like never before.

An Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card)

- that is the key to operating his/her cellular phone. His card activates Airtel

cellular services and contains a complete micro-computer chip with memory to

enable one to enjoy one's cellular phone thoroughly. Each SIM card contains a PIN

code (Personal Identity Number) which may be entered by one. Just plug your

SIM card into your cellular phone, enter the PIN code and it becomes 'your'

personal phone'.

PRODUCT LIFE CYCLE

The pattern of cellphone subscriber growth observed elsewhere in the world

reveals that the growth in the market is Initially slow followed by a sharp

acceleration, but so far that has not happened in India. As far as the Product Life

Cycle is concerned. Indians are at the beginning of the maturity stage.

 Introduction Growth Maturity

MARKETING OBJECTIVES

Create product Maximise market Maximise profits

awareness and trial share whole defending

market share

Strategies

Product Offer a basic Offer value Increase in

product/ added services number of value

service. added services.

Price Charge cost- Price to Price to match

plus penetrate or best

market competitors

Distribution Build selective Build Intensive Build more

distribution distribution. intensive

distribution.

Advertising Build product Build awareness Stress brand

awareness and interest in differences and

among early the mass benefits.

adopters and market

dealers.

Sales Promotion Use heavy sales Increase to Increase to

promotion to build and encourage

entice people to maintain brand-

subscribe. relationships switching.

with customers.
 OBJECTIVES OF THE STUDY

Objectives:

 To study the importance and development of tele – communication industry in

today’s scenario.

 To understand the various Marketing Strategies which Airtel has adopted to

survive in highly competitive cell phone industry.

 To make a comparative study of the major players in Indian Service Provider.

 RESEARCH METHODOLOGY

The methodology adopted for this project is exploratory in nature since there is no

hypothesis that has to be tested. The conclusions have been drawn by exploratory

research work.

There have been two sources of information collected:

a) Primary Sources

I have met retailers of the Airtel of the company and have been able to get first

hand information regarding the product, its features and the buying patterns of

the product. Their input has been valuable.

b) Secondary Sources

Secondary source has played a vital role to play in this report. A good amount of

data has been collected from various published articles and reports found in

magazines and journals. Another vital source has been the Internet and

particularly the companies own website.

 LIMITATIONS

Every attempt will be taken to obtain the error free and meaningful result but as

nothing in this world is 100% perfect I believe that there will still the chance for

error on account of following limitations-

(1) Respondent’s unavailability.

(2) Time pressure and fatigue on the part of respondents and interviewer.

(3) Courtesy bias.

 FINDINGS

1. Do you believe that India is potentially one of the most exciting mobile

service providers in the world?

Company Yes No

Airtel 4 1

Vodafone 4 1

Idea 4 1

MTNL 4 1

As according to the above table 16 (80%) out of the total 20 interviewed people in

all the above four specified Indian mobile service providers are of belief that India

is potentially one of the most exciting mobile service providers in the world,

whereas some 4 (20%) of them do not agree to this view.

No
1

Yes
4

0 2 4 6 8 10 12 14 16 18

AirTel Vodafone Idea MTNL

2. Do you find that the government’s telecom policy has had the most

radical impact on the development of mobile service providers?

Company Yes No

Airtel 4 1

Vodafone 3 2

Idea 3 2

MTNL 5 --

As according to the above table 15 (75%) out of the total 20 interviewed people in

all the above four specified Indian mobile service providers find that the

government’s telecom policy has had the most radical impact on the development

of mobile service providers, whereas some 5 (25%) of them deny this.

5
4.5
4
3.5
AirTel
3 Vodafone
2.5 Idea
2 MTNL
1.5
1
0.5
0
Yes No
3. Do you believe that one of the challenges facing mobile operators in India

is the diversity of the coverage regions?

Company Yes No

Airtel 2 3

Vodafone 3 2

Idea 3 2

MTNL 2 3

As according to the above table 10 (50%) out of the total 20 interviewed people in

the mobile service providers are of belief that one of the challenges facing mobile

operations in India is the diversify of the coverage regions, whereas interestingly

another 10 (50%) of them deny this.

2.5

2 AirTel
Vodafone
1.5 Idea
MTNL
1

0.5

0
Yes No

4. To what extent, does you find that mobile service providers is a very

complex standard?
Company To some extent To great extent
(1-5) (6-10)
Airtel 3 2
Vodafone 2 3
Idea 2 3
MTNL 3 2

As according to the above table 10 (50%) out of the total 20 interviewed people in

all the above four major the mobile service providers in Indian Cellular industry

find only to some extent that GSM is a very complex standard, whereas the

another 10 (50%) respondents find to great extent that mobile service providers is

a very complex standard.

2.5
AirTel
2
Vodafone
1.5 Idea
1 MTNL

0.5

0
To some extent To great extent
 CONSUMER LEVEL

1. Do you believe that mobile service providers comes close to fulfilling the

requirements for a personal communication system?

Company Yes No

Airtel 9 1

Vodafone 8 2

Idea 8 2

MTNL 5 5

As the above shows 30 (75%) out of total 40 respondents are of the belief that

mobile service providers comes close to fulfilling the requirements for a personal

communication system, whereas 10 (25%) of them are in no way to this belief.

3
2
No
2
2 MTNL
Idea
Vodafone
2 AirTel
3
Yes
3
3
2. Do you find that mobile service providers as the most exciting and

satisfying mobile standard?

Company Yes No

Airtel 9 1

Vodafone 7 3

Idea 8 2

MTNL 8 2

As the above shows 32 (80%) out of total 40 respondents find that mobile service

providers as the most exciting and satisfying mobile standard, whereas the

remaining 8 (10%) respondents deny this.

No
1

Yes
9

0 5 10 15 20 25 30 35

AirTel Vodafone Idea MTNL

3. Do you believe that your service provider has a genuine commitment to

creating a modern and efficient communications?

Company Yes No

Airtel 10 --

Vodafone 8 2

Idea 10 --

MTNL 8 2

As the above shows 36 (90%) out of total 40 respondents are of the belief that their

service providers have a genuine commitment to creating a modern and efficient

communications whereas the remaining 4 (10%) respondents deny this.

0
No
2

0 MTNL
Idea
Vodafone
8 AirTel

10
Yes
8

10

SWOT ANALYSIS

STRENGTHS

 Cost advantage

 Current leaders in quality service

 Largest distribution network

 Ability to constantly innovate

 Highly skilled workforce

 Entrepreneurial zeal

 Airtel’s increased equity and market cap.

WEAKNESSES

 To prove credibility

 Price pressures

 Need for Government support

 Awareness

 Sales and Marketing

OPPORTUNITIES

 To sustain passion and commitment

 Airtel’s market share increasing at other service provider expense. Thus

opportunity to wipe it out.

 Attain higher value services

 Collaborative business needs to be explored

 Vertical repeatable solutions.

 Low penetration level in rural markets.

THREATS

 Foreign investment

 Global trends moving from GPS to WLL.

 Lack of global parity in telecom tariff

 Other competition
 CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain

with Airtel. Also good no. of users who were willing to switch from their respective

subscribers showed interest in Airtel. Hence, these statistics imply a bright future

for the company. Also the company is now providing more services like the door to

door services which is you dial the Airtel customer care and would like to send

someone flowers the Airtel company delivers those flowers to the person

concerned. Also Airtel is providing free text messaging service and free voice mail

service. Call conferencing is also another feature Airtel provides.

 BIBLIOGRAPHY

 Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System.

In EUROCON 88, June 2005.

 Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal

Communication Services. IEEE Personal Communications. 1(1), 1994.

 Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE

Communications Magazine. April 1993.

 C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario,

editors, Cellular Radio Systems, Artech House, Boston, 1993.

 Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New

York, 1993.

 Vodafone

 Airtel

 Idea

 MTNL

QUESTIONNAIRE

NAME: ____________________________________

ADDRESS: ____________________________________

OCCUPATION: ____________________________________
1. Do you believe that India is potentially one of the most exciting mobile

service providers in the world?

Company Yes No

Airtel

Vodafone

Idea

MTNL

2. Do you find that the government’s telecom policy has had the most

radical impact on the development of mobile service providers?

Company Yes No

Airtel

Vodafone

Idea

MTNL

3. Do you believe that one of the challenges facing mobile operators in India

is the diversity of the coverage regions?

Company Yes No

Airtel

Vodafone

Idea

MTNL

4. To what extent, does you find that mobile service providers is a very

complex standard?
Company To some extent To great extent

(1-5) (6-10)

Airtel

Vodafone

Idea

MTNL
 CONSUMER LEVEL

1. Do you believe that mobile service providers comes close to fulfilling the

requirements for a personal communication system?

Company Yes No
Airtel
Vodafone
Idea
MTNL

2. Do you find that mobile service providers as the most exciting and

satisfying mobile standard?

Company Yes No
Airtel
Vodafone
Idea
MTNL

3. Do you believe that your service provider has a genuine commitment to

creating a modern and efficient communications?

Company Yes No
Airtel
Vodafone
Idea
MTNL