ASSIGNMENT NO.

2
OF
CRM
TOPIC: AIRTEL &VODAFONE

SUBMITTED BY:
SHIVI GARG
RS1806B31
BBA-MBA
Telecom Sector In India

Than 125 million telephones network is one of the largest communication

networks in world, which continues to grow at a blistering pace.

The rapid growth in the telecom sector can be attributed to the various pro-
active and positive policy measures taken by the government as well as the
dynamic and entrepreneurial spirit of the various telecom service providers
both in private and public sector. The telecom sector has shown impressive
growth during the past decade. Today, more

Two striking features of this growth viz. increasing preference for mobile
phones and higher contribution of private sector in the incremental growth
have predominated the telecom sector. The share of mobile phones (including
WLL mobile) has overtaken the share of landlines with 62% in the total
number of phones. The private sector's contribution is also increasing rapidly.
Currently more than 30 lakh phones are being added each month and it is
targeted that by the end of 2008 the total number of phones may reach a level
of 350 million taking the tele-density to more than 30% which is currently at
24.63%.

Network Expansion: The total number of telephone subscribers has reached

281.62 million at the end of January 2008 as compared to 232.87 million in
July 2007. The overall Teledensity has increased to 23.63% in January 2008
as compared to 21.20% in August 2007.

Wireless Service: The wireless segment saw a surge of 8.77 million

subscribers last month compared to 8.17 million in December2007. This
pushed the total wireless subscribers base to 242.40 million by Jan 31 2008.
Wire line Subscribers: The wire line segment subscriber base stood at 39.73
million with a decrease of 0.16 million at the end of January 2008.

AIRTEL

Airtel is a brand of telecommunication services in India operated by Bharti Airtel.

Airtel is the largest cellular service provider in India in terms of number of

subscribers. Bharti Airtel owns the Airtel brand and provides the following
services under the brand name Airtel: Mobile Services (using GSM
Technology), Broadband & Telephone Services (Fixed line, Internet
Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise
Services (Telecommunications Consulting for corporates). It has presence in
all 23 circles of the country and covers 71% of the current population (as of
FY07).

Leading international telecommunication companies such as Vodafone and

SingTel held partial stakes in Bharti Airtel.

VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that

covers 16 telecom circles in India Despite the official name being Vodafone Essar,
its products are simply branded Vodafone. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India and is especially strong in the major
metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 16 of the country's 23 license
areas.

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that

covers 16 telecom circles in India . Despite the official name being Vodafone Essar,
its products are simply branded Vodafone. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India and is especially strong in the major
metros.

Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 16 of the country's 23 license
areas.

Strategies to achieve

• Focus on maximizing revenues and margins;

• Capture maximum telecommunications revenue potential with minimum

geographical coverage;

• Offer multiple telecommunications services to provide customers with a "one-

stop shop" solution;

• Position itself to tap data transmission opportunities and offer advanced

mobile data services;

• Focus on satisfying and retaining customers by ensuring high level of

customer satisfaction;

• Leverage strengths of its strategic and financial partners; and

• Emphasize on human resource development to achieve operational

efficiencies.
 •

• Competitive Strengths

Bharti Tele-Ventures believes that the following elements will contribute to the
Company's success as an integrated telecommunication services provider in India
and will provide the Company with a solid foundation to execute its business
strategy:

• Nationwide Footprint - approximately 92% of India's total mobile subscribers

resided in the Company's fifteen mobile circles. These 15 circles collectively
accounted for approximately 56% of India's land mass;

• Focus on telecommunications to enable the Company to better anticipate

industry trends and capitalize on new telecommunications-related business
opportunities.

• The strong brand name recognition and a reputation for offering high quality
service to its customers;

• Quality management team with vision and proven execution skills; and

• The Company's strong relationships with international strategic and financial

investors such as SingTel, Warburg Pincus, International Finance
Corporation, Asian Infrastructure Fund Group and New York Life Insurance.
 BHARTI

AIRTEL TOUCHTEL INDIA ONE

(Cellular (Basic Service (National Long
Operations) Operations) Distance)

Comparison of marketing strategies

between
Bharti Airtel and Vodafone.
Purpose of comparison

• The sub main purpose of this report is to compare the marketing Strategies
adopted by Bharti Airtel and its rival Vodafone

• The comparison shows how both of the companies have been challenging
each other to gain market shares.
Why comparison between Vodafone???

 Bharti Airtel is the leader in telecommunication sector.

 Bharti Airtel holds the lion share of market of communication sector.

 However, Vodafone has been giving tough competition to Bharti Airtel.

 Vodafone is the second largest player and share holder in Communication

sector.

 Since its launch Vodafone has been adopting aggressive marketing strategies.

 The comparison shows how Hutchison Essar Telecom. Captured 22% market
share in one month of its first launch of postpaid subscription in 2002.AD.

 With a different technology Vodafone creates its own market.

 Vodafone odafone. Today deals in every business of communication sector.

  Vodafone making and changing the strategies to capture the market shares

Marketing mix

 Price: low price strategy

 Place: maximum outlets and service centers

 Product: verities available for various groups

 Promotion: various schemes for pre-paid and post-paid

Type of Research Methodology

EXPLORATORY:

TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE;

THE OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE
APPROXIMATE AREA WHERE THE DRAWBACK OF THE COMPANY LIES
AND ALSO TO IDENTIFY THE COURSE OF ACTION TO SOLVE IT. FOR
THIS PURPOSE THE INFORMATION PROVED USEFUL FOR GIVING RIGHT
SUGGESTION TO THE COMPANY.
SUBSCRIBER NUMBERS IN (MN) HELD BY VODAFONE AND AIRTEL

June-05 Sep-06 Dec-07 Mar-08 Dec-08 Mar-09

Airtel 3.19 4.62 5.50 6.54 10.98 14.07

Vodafone 1.82 4.19 6.24 7.26 10.45 12.99

CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged
behind its competitors as far as customer service and availability is concerned. The
maximum no. of people who use the mobile is in the age group of 20 to 28. Cash
cards are the most popular type of mobile connections, as they are consumer friendly
and recharging the connection is not a problem.

Maximum no. of people spends RS 500 on their connections. As Airtel is the only
company having the maximum no of mobile connections so it must seriously look
into the loop holes of the existing customer service department.

As we know that now Airtel has already launched its product with logo “’ Aisi
azaadi aur kahan”’ has already became popular in market. So we can say that in spite
of so many competitors in the market Airtel is having a good position just because
every time, it tries its best to understand the need of its important customers.

From the comparison and deep analysis of every aspect of business of both the
companies we can conclude that bharti Airtel has to more work in every field of
communication business.
It is the time not only to survive but to sustain in the market for a long time.

For this Airtel has to work on its all marketing strategies, marketing, promotion,
brand image.etc.

Airtel has to take Vodafone. Very seriously and update its own strategies from time
to time and when the need arises.

With aggressive marketing strategies Airtel has to target rural India as 70% of
population of India lives in these areas.

The other segment may be costumers of all age groups.