airtel-marketing strategy new
TRANSCRIPT
SUMMER TRAINING PROJECT REPORT ON
STUDY OF MARKETING AND PROMOTIONAL STRATEGY OF AIRTEL LTD.
Submitted in partial fulfilment of the requirements
For the award of the Degree of
Master of Business Administration(2011-13)
(MahamayaTechnicalUniversity, Noida) By
Vikrant ChaudharyRoll No. 1109470115
MBA 2nd Year (GIMT, Greater Noida)Project Undertaken at
Bharti Airtel Ltd.Report Submitted to:
Mr. Anil Sharma(GM-Marketing)
GALGOTIAS EDUCATIONAL INSTITUTIONS1, Knowledge Park, Phase II
Greater Noida
1
To Whom So Ever It May Concern
This is to certify that has prepared a summer training based project report on
the title ‘STUDY OF PROMOTIONAL AND MARKETING
STRATEGY OF AIRTEL LTD.’ for the partial fulfillment of Post
Graduate Diploma In Marketing Management approved from Mahamaya
University Noida.
To the best of our knowledge the matter presented in project report is
satisfactory and we wish her success in her future endeavor.
(Head of the Department) (Project Supervisor)
2
DECLARATION
I, hereby declare that the research work presented in the summer training
based project report entitled, ‘STUDY OF PROMOTIONAL AND
MARKETING STRATEGY OF AIRTEL LTD.’ for the partial
fulfillment for the award of MBA from Mahamaya University is based on
my original research work.
The project report embodies the result of original work and studies carried
out by me and the content of the project do not from the basis for the award
of any other degree to me or to anybody else.
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PREFACE
The objective of any marketing activity is to sell a product. Forthis, one must have the
right product at the right price, available at the right time and place, through the right
promotion commonly understood as the 4 P’s of marketing mix. The fundamental point to
be appreciated is that all these variables must simultaneously fall in place for the success
of a product. Take a look around you at all the successful brands and ask the marketing
managers the reason for success. They will invariably tell you that it is because the
company has been able to get this “mix” right.
If one were to examine these variables carefully one will realize that thee are indeed ways
of “communicating” with the consumer. A product talks to the consumer through its
features, packaging and the promise of fulfilling a need .Its pricing tells the consumer
whether it is affordable, value for money or premium. Its placement also communicates
the values associated with the product. A premium store versus a discount store
communicate very different message to the consumer .The promotion of the product also
obviously communicates some message to consumer.
In effect therefore, marketing is all about communication, whether through the product
and itspackaging, thepricing, the placement and the promotion. We would therefore like
to use the term communication mix and highlight the importance of sales promotion in
that context.
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TABLE OF CONTENTS
01 Certificates 02
02 Declaration 03
03 Preface 04
04 Company Profile 06
05 Introduction of the Industry 44
06 Objective of the Study 62
07 Hypothesis 63
08 Research Methodology 64
09 Data Collection and Analysis 67
10 Findings 87
11 Suggestion 89
12 Limitation 90
13 Conclusion 91
14 Bibliography 92
15 Annexure 93
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COMPANY PROFILE
BHARTI AIRTEL LTD
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail
Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh agri products
exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance
Company Ltd under a joint venture with AXA, world leader in financial protection and
wealth management.
Airtel comes from Bharti Airtel Limited; Bharti Airtel is one of the leading alternative
providers of telecommunications services in India and the first private telecom services
provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has
been at the forefront of technology and has steered the course of the telecom sector in the
country with its world class products and services. The businesses at Bharti Airtel have
been structured into three individual strategic business units (SBU’s) - Mobile Services,
Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile &
fixed wireless services using GSM technology across 23 telecom circles while the Airtel
Telemedia Services business offers broadband & telephone services in 94 cities. The
Enterprise services provide end-to-end telecom solutions to corporate customers and
national & international long distance services to carriers. All these services are provided
under the Airtel brand.
Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom
services providers with operations in 18 countries across Asia and Africa. Bharti Airtel
since its inception has been at the forefront of technology and has pioneered several
innovations in the telecom sector.
The company is structured into four strategic business units - Mobile, Telemedia,
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Enterprise andDigital TV. The mobile business offers services in India, Sri Lanka and
Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in
89 Indian cities. The Digital TV business provides Direct-to-Home TV services across
India. The Enterprise business provides end-to-end telecom solutions to corporate
customers and national and international long distance services to telcos.
Airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven “to
seize the day” with an ambition to become the most globally admired telecom service.
Airtel, in just ten years of operations, rose to the pinnacle to achievement and continues to
lead.
As India's leading telecommunications company Airtel brand has played the role as a
major catalyst in India's reforms, contributing to its economic resurgence.
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COMPANY PROFILE –
Date of Establishment 1995
Revenue6716.88 ( USD in Millions )
Market Cap 1062548.9208608 ( Rs. in Millions )
Corporate Address- Aravali Crescent ,1 Nelson Mandela Road,Vasant Kunj Phase 2
New Delhi-110070, Delhi
Chairperson - Sunil Bharti Mittal
MD - Sunil Bharti Mittal
Directors - Ajay Lal, Akhil Gupta, Arun Bharat Ram, Bashir Currimjee, Chua Sock
Koong, Craig Ehrlich, Deven Khanna, Lim Chuan Poh, Manoj Kohli, Mauro Sentinelli, N
Kumar, Nikesh Arora, Paul O'sullivan, Pulak Chandan Prasad, Quah Kung Yang, Rajan
Bharti Mittal, Rakesh Bharti Mittal, Sarvjit Singh Dhillon, Sunil Bharti Mittal, Tan Yong
Choo, Vijaya Sampath
Bharti Airtel, incorporated on July 7, 1995 is the flagship company of Bharti Enterprises.
The Bharti Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti Airtel is Asia’s leading integrated telecom services
provider with operations in India and Sri Lanka. Bharti Airtel has been at the forefront of
the telecom revolution and has transformed the sect
Company Secretary- Vijaya Sampath
Bankers Auditors- SR Batliboi & Associates
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Business Divisions-
The enterprise services group includes units for both long-distance carriers and for
corporate clients. Bharti Airtel has nearly 29 million total customers -- approximately
more than 27 million GSM mobile and 1.6 million fixed-line customers.
The company was founded as Bharti Tele-Ventures in 1995 and changed its name in early
2006 to Bharti Airtel Limited. It is a unit of Indian conglomerate Bharti Enterprises)
Sunil Bharti Mittal (Chairman and Group Managing Director)
This highly innovative company created telecom history when it farmed out its network
management to experts Nokia and Ericsson, and set a trend in the global cellular industry.
Last year, Vodafone gave the company a vote of confidence by acquiring 10% mostly
from early Bharti investor Warburg Pincus. This year, Bharti will offer its second
overseas services after the Seychelles. It acquired a license for tax haven Jersey, in the
Channel Islands, and is looking for more. It also plans to spend $2 billion this year to
double the size of its network and cover 50% of India's population, up from 40%
currently. )
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.
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The group offers high speed broadband internet with a best in class network. With
Landline services in 94 cities we help you stay in touch with your friends & family and
the world. Get world class entertainment with India’s best direct to home (DTH) service
digital TV in more than 150 cities.
Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier
customers. This division comprises of the Carrier and Corporate business unit. Enterprise
Services is regarded as the trusted communications partner to India's leading
organizations, helping them to meet the challenges of growth.
10
Discover the magical experience of digital entertainment with Airtel. From DVD quality
picture and sound, the best and widest variety of channels and programmes to the best on-
demand content on Airtel Live, your TV viewing experience change forever with digital
TV from Airtel!
VISION OF BHARTI AIRTEL -
By 2012 Airtel will be the most admired brand in India:
Loved by more customersTargeted by top talentBenchmarked by more businesses
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HISTORY OF THE COMPANY
Bharti Tele-Ventures was incorporated on July 7, 1995 as a companywithlimited liability
under the Companies Act, for promoting telecommunications services. Bharti Tele-
Ventures received certificate for commencement of business on January 18, 1996. The
Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited.
The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as
follows:
Calendar year & Events
1995
Bharti Cellular launched cellular services'AirTel'in Delhi
1996
STET International Netherlands NV, or STET, a company promoted by Telecom
Italia, Italy acquired a 20% equity interest in BhartiTele-Ventures
Bharti Telenet launched cellular services in Himachal Pradesh
1997
12
British Telecom acquired a 21.05% equity interest in Bharti Cellular
Bharti Telenet obtained a license for providing fixed-line services in Madhya
Pradesh circle
Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti
BT, for providing VSAT services
1998
Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti
BT Internet for providing Internet services
First Indian private fixed-line services launched in Indore in the Madhya Pradesh
circle on June 4, 1998 by Bharti Telenet thereby ending fixed-line services
monopoly of DoT (now BSNL)
1999
Warburg Pincus (through its investment company Brentwood Investment
Holdings Limited) acquired a 19.05% equity interest in Bharti Tele-Ventures
Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular
Holdings) acquired an effective 32.36% equity interest in Bharti Mobile
(formerly JT Mobiles), the cellular services provider in Karnataka and Andhra
Pradesh circles
13
New York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in
Bharti Cellular
2000
Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti
Mobinet (formerly Sky cell Communications), the cellular services provider in
Chennai
Bharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in Bharti
Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100%
subsidiary of Bharti Tele Ventures
SingTel (through its investment company Pastel Limited) acquired STET's
15.3% equity interest in Bharti Tele-Ventures
Bharti Tele-Ventures acquired an additional effective 41.64% equity interest in
Bharti Mobile (by acquiring the remaining 36.55% equity interest in SC Cellular)
resulting in Bharti Tele-Ventures holding an effective 74% equity interest in
Bharti Mobile.
2001
Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular
Bharti Telesonic entered into a joint venture, Bharti Aqua net, with SingTel for
establishing a submarine cable landing station at Chennai
14
Bharti Tele-Ventures issued additional equity for approximately US$ 481.30
million to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and See jay
Cellular and Bharti Telecom
Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly
Spice Cell ), the cellular services provider in Kolkata
Bharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial from Bharti
Telecom and Intel, respectively
Bharti Tele-Ventures acquired a 44% equity interest in Bharti Cellular from
British Telecom, thereby making Bharti Cellular its 100% subsidiary
Bharti Tele-Ventures acquired an additional 49% equity interest in Bharti
Mobinet from Millicom International and BellSouth International, thereby
owning 89.5% equity interest in Bharti Mobinet, which was further increased to
95.3% following an issuance of additional equity shares by way of rights issue
Punjab license restored to Bharti Mobile by the DoT and migration to NTP -
1999 accepted
Bharti Cellular entered into license agreements to provide cellular services in
eight new circles following the fourth operator cellular license bidding process
Bharti Telenet entered into license agreements to provide fixed-line services in
the Haryana, Delhi, Tamil Nadu and Karnataka circles
Bharti Telesonic entered into a license agreement with the DoT to provide
national long distance services across India
Bharti Aqua net, Bharti Telesonic and Bharti Cellular entered into license
agreements with the DoT to provide ISP services in India
Bharti Telesonic launched national long distance services under the brand name
of India One
15
Bharti Telenet launched fixed line services in Haryana under the brand name of
TouchTel.
2002
Comes out with issue of 18.53 crore equity shares through book building route
with a floor price of Rs 45 per share, received bid for 18.55 crore shares. Through
the issue, it becomes the first company in India to come out with 100% book
building issue
Issue price fixed at Rs 45 per share, floor price fixed by the company. Raises Rs
834 crore
Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of
Rs 45
Enters into a 5-year agreement with Escotel and ETL of the Escorts group to
contract leased line connectivity for its cellular operations
Mr. Ravi Akhoury ceases to be Director of Bharti Tele
DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the
company
Signs MoU with Telia AB to buy out their 26% stake in Bharti Mobile
Ties up with SSC (Secondary School Certification) Board, Hyderabad, where
Bharti will announce SSC results to its customers on their mobile phones
ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs
Bharti forays into Mumbai with offers
16
Alpine International Ltd. and ELM International Ltd. acquire shares of Bharti
Tele-Ventures
Sunil Mittal, Chairman & Managing Director of the company, bags Businessman
of the year award by Business India
2003
Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle
Company accorded its approval for amalgamation of its subsidiary companies
viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd
and Bharti Comtel Ltd through scheme of Amalgamation. The merged entity
would be renamed as Bharti Infotel Ltd
Air Tel launches Local direct dialing facility in Chennai circle
Mobilizes 5 m long term foreign currency borrowings for expansion of cellular
operations
Bharti Cellular unveils Care Touch service
Bharti Group's cellular brand Airtel has unveiled free multimedia messaging
services (MMS) for its customers. The company has also rolled out pan-India
GPRS (General Packet Radio Services) for its corporate subscribers
Launches its `India One Meet press' audio-conferencing service
Punjab, Haryana get free incoming calls from Airtel
AirTel provides SMS facilities to hearing impaired in Chennai
Goa, Maharashtra gets 'voice portal' services by Bharti Cellular-Launches free
additional connection to its new subscribers in New Delhi
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Mr. Sin Hang Boon and Mr. Wong Hung Khim have resigned from the Board of
Directors of Bharti Tele Ventures Ltd with effect from February 27, 2003.
Airtel provides SMS cricket updates
Bharti Mobinet Ltd, the Bharti group company that provides the AirTel mobile
service in Chennai, today launched its GPRS (General Packet Radio Service)
network and an MMS (multimedia messaging) on the GPRS platform
AirTel unveils new ring tones for Karnataka cellular market
AirTel Subscribers exceed 3 million mark
AirTel unveils RAD system
Mr. P M Sinha resigns from the Board of Directors of the Company with effect
from March 31, 2003.
Bharti TeleVentures announces the completion of merger with Bharti Mobitel
Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. AirTel reintroduces 'Mobile
2 Mobile' offer for Karnataka customers
AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel
connection
AirTel rolls out voice mail service for pre-paid customers
AirTel unveils new scheme for pre-paid customers giving away free talk time
worth Rs 10crore
Airtel surpasses 4 lakh subscriber base in Karnataka
Bharti announces new tariff plan AirTel 012
Offers 0-1-2, a new cellular package for the customers, which means zero charges
on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 on mobile-to-
mobile STD calls
Rolls out Airtel messenger service
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AirTel offers bundled handset, connection package for Rs 5715
Airtel slashes SMS rates to 60 paisa; excludes Delhi and Mumbai
Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its
stake to 100% in Bharti Mobile
Iinks distribution pact with Hathaway Cable. With this alliance, Bharti is said to
be the first telecom firm to step into television distribution services
Six cell operators move over from Bharti to VSNL
Airtel augments cellular coverage in TN by including Arcot & Walajapet in its
network
Airtel ties up with Coke in Chennai to sell its Magic prepaid cards
AirTel embarks on network expansion in Hyderabad
Airtel unveils India One Long Distance Calling Card
AirTel introduces unified tariff package in TN, Chennai
Airtel becomes front runner in Karnataka's mobile services market
Bharti Tele launches 'Always on' service to its subscribers
SBI, AirTel announce EMI offer at Rs 299
Bharti and MTV join hands to launch new SIM card
AirTel unveils new post-paid scheme at zero rental
AirTel launches `Happy Plan' in AP
Airtel emerges as the highest selling pre-paid card
Airtel join hands with Alcatel & Videocon to launch new scheme
AirTel service provider touches 5 lakh customers in Punjab
Airtel offers 5 new services for its customers in Mumbai
Bharti launches first dual band network in Delhi
Gets 14th place among top 25 Cos in India
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Bharti Mobile crosses 4 lakh mobile subscribers in AP
Airtel holds top position in terms of dealer penetration
Prof. V S Raju has been inducted on the Board of Directors of the Company.
Touchtel launches SMS service in fixed line phones in Karnal, Panipat
AitTel unveils special offers in Kerala
AirTel launches InnoWest for the western region
Bharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt.
Ltd
Airtel slashes out going sms price to 30ps
AirTel on December 16, 2003 announced the launch of expense tracker service,
which provides customers the option of tracking their day-to-day expenses on a
daily or monthly basis. To avail of this service, the customer should register
himself by sending EXP REG your mail ID{gt} to 3020. This service will allow a
user to track expenses, while on the move by sending an SMS. Each SMS sent to
3020 would cost Rs 3.
AirTel introduces MTV Club Card in Chennai
2004
Bharti unveils new card for Mecca pilgrims
AirTel enrolls 50,000 customers in its mobile service in 60 days
Launches WAP enabled portal Service in Kerala
Bharti Cellular's AirTel has extended its mobile connectivity to Karaikkal, Nagur,
Mannargudi and Kovilpalayam in Tamil Nadu circle.
Airtel customer base touches new high of 5 lakh mark in Andhra Pradesh
20
Mobile service provider AirTel is launching its first ever MMS (Multi Media
service) downloads in Tamil. The launch of this service has been timed to
coincide with Pongal.
AirTel tie up with MAA TV
Airtel launches Rs 50 pre-paids recharge
AirTel launched a family pack for its post-paid customers in Chennai on January
29. According to a press release, the family pack may have a maximum of 10
members spread across the country. The combined basic plan fixed charges/rental
of all family members in the pack will have to be equal to Rs 450 but less than Rs
1000 for the family 450 pack and above Rs 1000 for the family 1000 pack. The
offerings under family pack 450 include 15 free mobile to mobile STD minutes
within the family, 50 free local calling minutes to each family member, calls
within the family in same circle at 50 paisa per minute, 25 free local SMS and one
subscription alert service free for 3 months.
Bharti Tele-Ventures enters into a three year service agreement with Ericsson
Bharti Tele-Ventures (BTVL) has signed and received unified access service
license to provide GSM services in five circles including Uttar Pradesh (East),
West Bengal & Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. The
license has been granted to Bharti Cellular Ltd (BCL), the cellular arm and
subsidiary of BTVL.
Airtel announces the signing of the first-ever bilateral roaming agreement between
an Indian mobile service provider and its counterpart in Pakistan. This facility will
be available to pre-paid as well as post-paid customers. AirTel's roaming
agreement is with Mobil ink, the only GSM cellular service provider in Pakistan
21
Acquires switching systems from Tekelec that will give a technological edge to
the company
Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with
InfoTech major IBM, estimated to be in the range of 0-750 million for a ten-year
period.
Jayant Khosla, new chief executive officer, Mumbai
Signs MoU to join the South East Asia - Middle East - Western Europe 4 (SEA-
ME-WE-4) consortium along with 15 other global telecom operators.
Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latter's
67.5 per cent stake in cellular services company AIRTEL for Rs 430 crore.
Bharti Tele garners 0 m via FCCBs
Samsung India Electronics Limited has tied up with cellular operator Bharti for
bundling its mobile handsets with a connection.
The Bharti group finalized an Rs 500-crore deal to share its national long-
distance (STD) network with VSNL in a first-of-its-kind accord between two top
telecom service providers in a bid to optimize capacities in the NLD segment.
Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) has
signed a Right to Use (RoU) agreement to deploy mobile telephony major, Bharti
Tele-Ventures' existing National Long Distance (NLD) backbone.
Airtel offers talk time transfer service
Airtel has announced money-back guarantee offer in case of call drop or poor
network experience for its subscribers
Bharti launches 2-in-1 card
Airtel launched two-way international roaming and GPRS for prepaid customers
in the Maharashtra and Goa circles
22
India's leading cellular company Bharti Tele-Ventures has bagged the Asian
Mobile News operator of the year award in India and the subcontinent
Bharti Tele-Ventures Ltd has awarded a million equipment contract to Swedish
telecoms company Ericsson
Bharti Televentures announced formation of a new strategic business unit to offer
various telecom and IT services through a single contact
Bharti Televentures unveiled a mobile portal featuring sports, entertainment and
news among others
Airtel ties up with Micro Tech to set up 'Mcops' vehicle security system
Bharti Tele-Venture on July 19 launched ring back tone service which is a
personalized mobile music service where the caller hears songs and other sound
clips instead of the traditional switchboard ring-ring tone
Airtel, a private telecom services provider, has commissioned its first 24x7
customer service centre in Andhra Pradesh
Airtel unveils Rs 199 pre paid card
AirTel join hands with NMIMS to offer executive MBA programme
AirTel introduces new scheme for hearing impaired in Maharashtra & Goa
AirTel inks pact with JP Mobile
AirTel unveils first virtual calling cards in India
BTVL rolls out EDGE services in Bangalore
Airtel rolls out Full Talk time Advantage card
Airtel rolls out Wi-Fi services in Mumbai
BTVL launches new 'Airtel Broadband Friendly Offer'
Airtel launches GPRS services for pre-paid customers
Airtel partners with ITPO to set up Wi-Fi network in Delhi
23
Airtel launches EDGE services and a new pre-paid plan for Chennai
Airtel introduces LAS in Karnataka
2005
Airtel launches video services for its GPRS customers on February 22, 2005
Airtel unveils new TV ad featuring Sachin, Sharukh
Bharti Tele-Ventures launches telecom network in Andaman & Nicobar
BTVL unveil fixed line, broadband services
Bharti inks 5-m deal with Nokia for rural network expansion
Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have
joined hands to launch mChq - a revolutionary new service - a credit card on the
mobile phone
Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India
Bharti Tele Ventures announces agreement with Vodafone
Airtel unveils 'free flight' offer
Airtel unveils starter pack
Bharti Tele-Ventures launches under sea cable system
2006
Airtel unveils Re 1 STD plans
Airtel launches NetXpert.
Airtel launches Post2Pre recharging service on April 04,2006.
Airtel sets up customer centre
24
Mobile service provider Airtel today announced the launch of `Save My Phone
Contact' service for its pre-paid and post-paid customers in Delhi
Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive
Service Provider of the Year' awards
Sunil Mittal bags CEO of the Year award
Cellebrum join hands with Airtel
Airtel Mega unveiled in Coimbatore
Airtel joins hand with Microsoft
Bharti Airtel Ltd has informed that Microsoft and the Company announced a
strategic partnership that will offer a range of software and services for small and
medium businesses (SMBs) in India.
Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliance with the Adani
Group for establishing an end-to-end modern telecommunication network
infrastructure for the latter's
Multi-sector special economic zone (SEZ), located near Mundra Port in Kutch
district of Gujarat.
2007
Bharti Airtel, telecom major, has come out with a slew of initiatives including
buying out SingTel's 50 per cent stake in joint venture under sea cable company
Network i2i for 0 million.
Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on
Economics of Quality.
Bharti Airtel Ltd has announced the following changes in the operational
leadership structure and roles in the Company effective April 01, 2007.
25
Bharti Airtel Ltd on April 01, 2007, has announced the reduction in International
Long Distance Tariffs (ISD) for all its mobile customers in India.
Airtel signs agreement with HTC for touch screen mobile.
2008
Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi
million euro contract from Bharti Airtel Ltd for deployment of a single interactive
voice response (IVR) platform across 23 circles. The three-year turnkey contract
comprises designing, planning, systems integration and optimization services to
raise overall customer experience. The new IVR solution will enable Airtel to
deliver services such as voice SMS, televoting, call management services, caller
ring back tone and voice portal on a faster time-to-market basis and, therefore,
reduce OPEX costs.
Bharti Airtel Ltd on February 13, 2008 has announced that it has achieved the 60
million customer mark. This landmark has catapulted Bharti Airtel into the club
of top mobile operators in the world in terms of subscriber base. The 60 million
customer base covers mobile as well as fixed line and broadband customers.
Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based
iPhone in the country.
Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd
to launch its Direct-to-Home (DTH) television services. Infosys, through its
digital convergence platform, will offer a suite of products including devices,
application servers and interactive applications for Airtel's DTH services.
26
2009
Bharti Airtel HAS signed a five-year managed services deal valued at 0 million
with Alcatel Lucent for its fixed-line and broadband operations.
Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is aimed at
offering the added advantage to Airtel customers to be in touch with each other at
an affordable rate of 50 paisa per minute, be it a national long distance call (STD)
or local call.
In order to create products and services for the small, medium and large
enterprises, Bharti Airtel and Cisco announced a strategic business alliance. The
alliance would combine the strengths of Airtel's network service and Cisco'
Internet Protocol (IP) technologies.
Bharti Airtel - Airtel and mChek announce milestone of One Million users;
introduce a broad range of new mCommerce services.
2012
Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts from
April 9th.
v commercials & airtel signature tune
To download - right click on the icons and choose "save target as"
27
airtel signature tune
download
airtel internet on 3G - TVC 3
airtel internet on 3G - TVC 2
airtel internet on 3G - TVC 1
airtel BlackBerry Messenger
‘start or stop’ any service, anytime
airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven “to
seize the day” with an ambition to become the most admired telecom service provider
globally. airtel, in just ten years of operations, rose to the pinnacle of achievement and
continues to lead.
As India's leading telecommunications company, airtel brand has played the role of a
major catalyst in India's reforms, contributing to its economic resurgence.
Today we touch people's lives with our Mobile services, Telemedia services, to
connecting India's leading 1000+ corporates. We also connect Indians living in USA, UK
and Canada with our callhome service.
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CORPOATE GOVERNANCE
Integrity and Ethics
The partners will conduct all its dealings in a very ethical manner and with the
highest business standards.
All partners with a business relationship with Bharti Airtel shall comply with the
highest level of integrity and ethical practices.
The partners will provide all possible assistance to Bharti Airtel in order to
investigate any possible instances of unethical behavior or business conduct
violations by its employee. Partner will disclose forthwith any breach of these
provisions that comes to their knowledge to allow for timely action in their
prevention and detection.
Partners will adopt appropriate processes to prevent offering any illegal
gratification in the form of bribes or kickbacks either in cash or in kind in the
course of all dealings with us. Any instances of such violations will be viewed in a
serious manner and Bharti Airtel reserves the right to take all appropriate actions
or remedies as may be required under the circumstances.
All partners are required to confirm their compliance to ethical dealings on an
annual basis by signing a certificate to this effect as per Bharti Airtel's standard
annual certificate.
Any ethical or integrity issues observed or encountered while dealing with Bharti
Airtel shall be bought to the notice of Bharti Airtel’s senior management or the
Head of Internal Audit immediately.
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Environment, health and safety
Suppliers dealing with Bharti Airtel shall comply and adhere to all laws,
regulations and guidelines on environment, health and safety.
Suppliers will ensure that all new service offerings as well as new product
designs are in compliance with the relevant environmental regulation and
guidelines, at the time of implementation at Bharti Airtel.
Protection of Intellectual Property
The Partner:
Shall comply with the guidelines for use of the trademarks and trade names
notified by the Company (including but not limited to 'Bharti' and 'Airtel') and
shall not use the Company trademarks and trade names without the prior written
consent of the Company.
Shall, under no circumstances, advertise or use Bharti Airtel's name to market its
own product or associate its company with Bharti Airtel. If a partner spots any
counterfeit or infringing Company product/service, the partner shall immediately
notify Bharti Airtel.
Shall not reproduce, in whole or in substantial part, any copyrighted work in hard
copies, prints, video or electronic copies in violation of the copyright laws
including the Bharti Airtel's Partner Manual.
Bharti Airtel's intellectual property also resides in trade secrets or know-haws.
Trade secrets are technical, commercial or other information unknown to the
public, which can bring economic benefits to its owner. Documents that contain
trade secrets and available to the Partner shall be safeguarded and not shared by
the Partner with any third party without prior written consent of Bharti Airtel.
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Domestic and international trade controls
Suppliers shall understand and follow applicable domestic and international trade
control and customs laws and regulations, including, but not limited to those
relating to licensing, shipping and import documentation and reporting and record
retention requirements.
Conflict of Interest
Suppliers will ensure they do not engage in any personal dealings with Bharti
employees, especially those that they interact with on Bharti business matters.
PARTNER POLICY
Airtel would strive to conduct its business in a manner that reflects its vision and brand
essence. As the sourcing base expands, Airtel will only do business with partners who are
committed to a long term relationship focusing on mutual growth and trust. All Partners
are responsible for making sure that Airtel's vision and brand essence is adhered to when
subcontracting any portion of their obligations. Partners are individually responsible for
ensuring that their employees understand Airtel's vision and brand essence.
Regulatory Compliance
All Partners of Airtel must operate within the bounds of all applicable laws. They must
also adhere to the governing standards of the country and international countries in which
they conduct business. If at anytime a Partner ceases to meet any statutory and/or other
requirement of the country in which they are doing business, Airtel reserves the right to
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immediately cancel all its outstanding orders with that Partner as well as terminate its
agreement with the Partner.
Corporate Citizenship
Airtel believes in Corporate Citizenship. Airtel is committed to protecting the
environment wherever it does business. As a responsible corporate citizen we will favor
those Partners who share our commitment to the community and the environment, as well
as those who conform to all local requirements regarding environmental codes and
guidelines.
Corporate Citizenship
All potential partners are required to undergo the registration process to be considered for
business with Airtel. On successful completion, the partner would be added to Airtel's
Supplier Base and a registration code would be provided. Only registered partners would
be considered for new business opportunities. The registration code would be rendered
inactive for partners not meeting the requirements of the registration process. Once
deactivated, partners would be required to go through the registration process again.
Number of Partners and Business Share
All partners working with Airtel would have a unique partner code and would be
applicable for all their business units globally. Airtel would have a maximum of 6 to 8
partners registered for any product or service. RFP would be released to registered
partners only.
Airtel at any point of time would release a contract to a maximum of 3 partners for a
product or service with a business share split of 60%, 30% and 10%. Incase 2 partners are
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contracted; the business share split would be 67% and 33%. Business share would be
primarily based on partner performance score card. Airtel would provide higher business
share for partners who help it to improve its technology, competitiveness and customer
delight. In case where all criteria are similar the decision would be based on the partner's
dependence on Airtel. Any deviation would be approved at a level higher as per DOA.
Single partner for a product or service would be approved through a specific DOA.
Reciprocity
Airtel's goal is to buy products and services which have the best prices, quality, delivery,
and technology. Airtel encourages partners to use its products for their telecom
requirements and would prefer partners endorsing Bharti Airtel products where all criteria
requirements are being met.
Code of Ethics
Airtel expects the highest standards of integrity and conduct from its partners.
No gifts (other than advertising matter of modest values such as calendars and diaries), or
favors should be offered to an employee of Airtel or to friends or family of employees.
Partners are expected to familiarize themselves with the Airtel Code of Conduct which is
available in the Partner Manual or on request, in order to avoid any ambiguity in this
regard.
Contracting
Supply Chain is solely responsible for selecting partners, obtaining quotations and
awarding purchase orders/contracts for products, equipment, software and/or services.
Direct discussions between the requesting organization and partner shall be coordinated
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by the Supply Chain Department. Airtel will issue a purchase order / contract for all
products and/or services to all partners. Work should not begin until a formal purchase
order/contract is received. Partner performing a service or supplying products without the
proper authorization would do so at its own cost and risk.
Confidentiality
Airtel will treat information received from Partners in a responsible fashion, and expects
Partners to treat information received from Airtel in the same manner. Partners should not
disclose Bharti Airtel as a customer, documentation received from Bharti Airtel or release
information about relationships with Bharti Airtel without written consent (should such
disclosures be legally required, Bharti Airtel will not unreasonably withhold that
permission, which must be obtained in advance and in writing).
Partner Satisfaction
Airtel would conduct an annual partner satisfaction survey and use it as an important tool
to continuously improve and further develop its internal and external processes with
partners. In order to obtain an unbiased feedback, the survey would be conducted by an
independent external agency.
Partner Awards
Airtel recognizes consistent performance of its partners annually by presenting
performance awards. The awards would be primarily based on the partner performance
score card. Awards would be announced and presented during the partners meets.
Consistent & good performers would also be entitled to better share of business and other
benefits, as would be announced from time to time by Bharti Airtel.
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Partner Disengagement
Airtel reserves the right to cancel all orders and/or contracts with a partner in cases where
there is an unethical practice used, code of conduct violation, partner bankruptcy or
insolvency, ownership transfer and/or any other reason deemed fit for disengagement.
Airtel would follow a structured approach for disengagement to ensure the smooth
transitioning where separation becomes inevitable.
Partner Grievance
Airtel's Partner grievance process ensures a Partner's ability to access Airtel's corporate
assurance group and leadership to address concerns, grievances, or complaints relating to
the contracting award process for products or services, or in general.
A Partner who believes that a contract award decision was not determined
appropriately must file a written grievance using the Partner Grievance form
stating facts and concerns. The completed form must be sent via e-mail to
A Partner who has a general concern, grievance & complaint must file a written
grievance using the Partner Grievance form stating facts and concerns. Complete
form must be sent to the supplier Ombudsperson at Airtel via e-mail
COMPETITOR’S PROFILE
Vodafone Essar-
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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.
Growth of the company as Hutchison Essar-
In 1992 Hutchison Whampoa and its Indian business partner established a company that
in 1994 was awarded a license to provide mobile telecommunications services in Mumbai
(formerly Bombay) and launched commercial service as Hutchison Max in November
1995. Analjit Singh of Max still holds 12% in company. By the time of Hutchison
Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in
six mobile telecommunications operators providing service in 13of India's 23 license
areas and following the completion of the acquisition of BPL that number increased to 16.
In 2006, it announced the acquisition of a company that held license applications for the
seven remaining license areas.
In a country growing as fast as India, a strategic and well managed business plan is
critical to success. Initially, the company grew its business in the largest wireless markets
in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban
36
areas it was able to establish a robust network, well known brand and large distribution
network -all vital to long-term success in India. Then it also targeted business users and
high-end post-paid customers which helped Hutchison Essar to consistently generate a
higher Average Revenue per User ("ARPU") than its competitors. By adopting this
focused growth plan, it was able to establish leading positions in India's largest markets
providing the resources to expand its footprint nationwide.
IDEA CELLULAR-
Idea Cellular is a wireless telephony company operating in various states in India. It
initially started in 1995 as a join venture between the Tatas, Aditya Birla Group and
AT&T by merging Tata Cellular and Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in
2004 gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai),
Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttar Pradesh (East and
West), Haryana, Kerala, UP and Delhi (inclusive of NCR).
The company has its retail outlets under the "Idea n' U" banner. The company has also
been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS
services in urban areas.
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Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa,
Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-
West, Himachal Pradesh, UP-East, UP and Kerala. With a customer base of over 23
million, IDEA Cellular's footprint currently covers approximately 60% of India's telecom
population.
A frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinction
of offering the most customer friendly and competitive Pre Paid offerings, for the first
time in India in an increasingly segmented market
Customer Service and Innovation are the drivers of this Cellular Brand. A brand known
for their many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea
has received international recognition for its path-breaking innovations when it won the
GSM Association Award for "Best Billing and Customer Care Solution" for 2
consecutive years.
IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a
market cap of US$ 31.5 billion and in the league of Fortune 500. Anchored by an
extraordinary force of over 100,000 employees belonging to 25 different nationalities,
over 50% of its revenues flow from its overseas operations. With ambitious future plans,
the company is poised for rapid growth across the whole country.
The Brand Idea: It is almost impossible to disintegrate brand Idea from the corporate
Idea. Brand values are the company values and vise versa.
The Brand Vision: It goes without saying that the brand vision of idea mirrors the
Company’s vision. The brand mission statement is... To be the most customer-focused
mobile service brand, continuously innovating to help liberate our customers from the
shackles of time & space.
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Reliance Communications-
Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom
and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to
National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company,
which accounts for more than 1.36 billion shares of the company. Reliance Infocomm is
an Indian telecommunications company. It is the flagship company of the Reliance-Anil
Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services
(Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance
Infocomm is currently managed by Anil Dhirubhai Ambani. It uses CDMA2000 1x
technology.
Company Profile
On November 15th 1999, Reliance infocomm begins its project planning. The founder of
RELIANCE INFOCOMM, Dhirubhai Ambani dream was “Make a phone call cheaper
than a postcard and you will usher in a revolutionary transformation in the lives of
millions of Indians”. In 2000, optic fiber laying process commences in Gujarat, Andhra
Pradesh and Maharashtra. In 2001, first media convergence Node made “Ready for
Electronics” at NCR. In 2002, first Base Transceiver Station (BTS) made “Ready for
Electronics”. Then in same year company obtains International Long Distance License
from Govt. of India. After that they establish 1st point of Interconnect in New Delhi and
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on December 27, Honorable Prime Minister of India Atal Bihari Vajpayee inaugurates
RELIANCE INFOCOMM. Then year 2003 starts which was the most successful year for
Reliance Communications.
Strategic Business Units-
The business of Reliance Communications is organized into three strategic customer
facing business units: Wireless, Global, and Broadband. In addition, one of the wholly
owned subsidiaries of Reliance Communications is engaged in the marketing and
distribution of wireless handsets. Their strategic business units are supported by our fully
integrated, state-of-the-art network and operations platform and by the largest retail
distribution and customer service facilities of any communications service provider in
India.
Tata Teleservices-
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Company profile-
Tata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of
India. The company forms part of the Tata Group's presence in the Telecommunication
Industry in India.
TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile
services in India, specifically in the state of Andhra Pradesh. Tata is the direct competitor
with other operators in India. The company provides unified telecommunication solutions
including mobile, fixed wireless, fixed line and broadband. Other competitors like
Vodafone, Airtel, Aircel, Idea, MTNL, and BSNL providing GSM based mobile
telephony. The company was first in India to provide free intra network calling within
city limits. They launched a unique scheme providing lifetime rental free connectivity on
its mobile and fixed wireless for a one-time charge.
The Tata Group's commitment to building a substantial presence in India's telecom
industry has seen it play a leading role in the development of the country's
communications infrastructure. The telecom services of the Group are offered under the
brand name Tata Indicom, and cover all segments, from retail and enterprise to wholesale
and international. The objective is to make Tata Indicom the preferred
telecommunications choice of customers across the country. The Tata Indicom Enterprise
Business Unit (TIEBU) is the central, specialized enterprise sales and marketing unit for
the Tata Group's telecom initiatives. The unit is the benchmark telecom player in the
enterprise space and was formed with a view to providing customized, end-to-end voice
and data solutions to customers across India. It delivers cost-effective, integrated
solutions that are designed to fulfill the most complex communication needs.
Tata Indicom offers you a range of products and services like Wireless Internet, Wireless
USB Modem and Mobile Phones so you are always connected.
Landline Phones Net Telephony Internet & Broadband It has partnered with Motorola,
Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically
advanced network. The company, which heralded convergence technologies in the Indian
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telecom sector, is today the market leader in the fixed wireless telephony market with a
total customer base of over 3.8 million.
BHARAT SANCHAR NIGAM LTD.
Company Overview
Bharat Sanchar Nigam Limited provides telecommunications services in India. Its
services include wire line and cellular services, as well as other value added services,
such as voice mail service, short message service (SMS), group messaging, national and
international roaming, call forwarding, corporate virtual private network, call
conferencing, friend and family talk, call waiting, and call holding services. The company
also provides 3G; wireless in local loop (WLL) mobile telephone; Internet; Web-hosting;
Web co-location; SMS and bulk SMS; and broadband services. In addition, it offers
managed network services; multi protocol label switching based virtual private network
(VPN) services; integrated services digital network (ISDN) services; data communication
services; intelligent network services consisting of toll free phone service, universal
access number, voice VPN, televoting, and virtual calling cards; and video, audio, and
Web conferencing services. Further, the company provides fleet management solution
comprising eTracK, an on-line tracking system to manage fleet, such as trucks, car
carriers, trailers, tankers, containers, or vehicles carrying hazardous and specialty
explosive chemicals; Inet services for use in various applications, including electronic
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mail services, corporate communications, information retrieval, database services, remote
job applications, credit card verifications, travel reservations, and Internet connectivity;
telex/telegraph services; PABX/EPABX services; and DSPT services, as well as offers
VSAT, voice over Internet protocol, and IN services. Bharat Sanchar Nigam Limited was
founded in 2000 and is based in New Delhi, India.
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INTRODUCTION OF INDUSTRY
TELECOM INDUSTRY IN INDIA
Indian telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic
system in the 19th century, the field of telephonic communication has now expanded to
make use of advanced technologies like GSM, CDMA, and WLL to great 3G technology
in mobile phones. Day by day, both the public players and the private players are putting
in their resources and efforts to improve the telecommunication technologies so as to give
maximum to their customers.
The Telecom industry of India is on the edge of becoming the second biggest
telecom sector in the world with an overall compactness of telecommunications of up to
47.89%. In the year 2009, the industry attracted subscribers of over 562.21 million which
was 3.5% greater than its previous year, as per Telecom Regulatory Authority of India
(TRAI) report.
The Indian telecom industry registered annual revenues of over US$ 8.57 billion
in 2009 triggered by the revival in incomes from landline and mobile services. By 2014,
the industry is anticipated to surface as the highest element in the nation's GDP by
contributing up to 15.5%. Currently, the telecom industry is on an expansion spree and is
adding 9-11 million cellular phone subscribers per month. With this pace the sector is
estimated to cover more than half of the nation's population by 2012.
2010 Budget Telecom Industry Expectations are re-introduction of tax
exemptions in context of system rollouts in rural districts and to telecom infrastructure
service providers, tax relief to businesses undergoing reformatting mentioned in
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provisions under Section 80IA (12A) by the Finance Act, 2007, special additional duty
(SAD) compensation, accessibility of Cenvat Credit in case of relocation of the business,
tariffs of not up to 0.5-2% and explanation on tax reduction of entire spectrum charge.
GSM Mobile Market Share In India –
1. Bharti Airtel: 121.7 million (30.86%)
2. Vodafone Essar: 94.1 million (23.87%)
3. IDEA: 59.8 million (15.19%)
4. BSNL: 59.4 million (15.08%)
5. Aircel: 33.0 million (8.38%)
6. Reliance Telecom: 15.7 million (4.0%)
7. MTNL: 4.6 million (1.17%)
8. Loop Mobile: 2.7 million (0.69%)
9. Uninor: 2.5 million (0.64%)
10. STel: 0.5 million (0.13%)
Total Users: 395.3 million
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46
INTRODUCTION TO SUBJECT MATTER
This project is made on the project title “Marketing and Promotional Strategy of
Airtel Ltd., in NCR Region”
The purpose of this project is to know about the use of mobiles and the need of sales
promotional activities and to know what are the promotional activities company follow to
increase the sale. Now a days mobile service has become a necessary service. In field of
marketing many kind of survey are conducted by Airtel time to time for promotion
awareness.
What is Sales Promotion?
Sales promotion describes promotional methods using special short-term techniques to
persuade members of a target market to respond or undertake certain activity. As a
reward, marketers offer something of value to those responding generally in the form of
lower cost of ownership for a purchased product (e.g., lower purchase price, money back)
or the inclusion of additional value-added material (e.g., something more for the same
price).
Sales promotions are often confused with advertising. For instance, a television
advertisement mentioning a contest awarding winners with a free trip to a Caribbean
island may give the contest the appearance of advertising. While the delivery of the
marketer’s message through television media is certainly labeled as advertising, what is
contained in the message, namely the contest, is considered a sales promotion. The
factors that distinguish between the two promotional approaches are:
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1. whether the promotion involves a short-term value proposition (e.g., the contest is
only offered for a limited period of time), and
2. The customer must perform some activity in order to be eligible to receive the
value proposition (e.g., customer must enter contest). The inclusion of a timing
constraint and an activity requirement are hallmarks of sales promotion.
Sales promotions are used by a wide range of organizations in both the consumer and
business markets, though the frequency and spending levels are much greater for
consumer products marketers. One estimate by the Promotion Marketing Association
suggests that in the US alone spending on sales promotion exceeds that of advertising.
SALES PROMOTION TECHNIQUES OF COMPANY
Good Advertising. Effective Incentive Policy.
Good services.
Wide & Deep Distribution System.
Decorating Retailers shop by display board, dealer’s board etc.
Posters.
Banners.
Types of Sales Promotion
Sales promotion can be classified based on the primary target audience to whom the
promotion is directed. These include:
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Consumer Promotion
Trade Promotion
Sales force Promotion
Consumer Sales Promotion
Consumer sales promotions encompass a variety of short-term promotional techniques
designed to induce customers to respond in some way. The most popular consumer sales
promotions are directly associated with product purchasing. These promotions are
intended to enhance the value of a product purchase by either reducing the overall cost of
the product (i.e., get same product but for less money) or by adding more benefit to the
regular purchase price (i.e., get more for the money).
While tying a promotion to an immediate purchase is a major use of consumer sales
promotion, it is not the only one. As we noted above, promotion techniques can be used
to achieve other objectives such as building brand loyalty or creating product awareness.
Consequently, a marketer’s promotional toolbox contains a large variety of consumer.
There are several possible tools that can be used for consumer promotions. Some of the
more important ones are:
Sampling
Price-off
Quality deals
Banded offers
In-product gift
Out- product gift
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Coupons
Consumer contests
Trade Sales Promotions
As note in the Promotion Decisions Tutorial, certain promotions can help “push” a
product through the channel by encouraging channel members to purchase and also
promote the product to their customers. For instance, a trade promotion aimed at retailers
may encourage retailers to instruct their employees to promote a marketer’s brand over
competitors’ offerings. With thousands of products competing for limited shelf space,
spending on trade promotion is nearly equal that spent on consumer promotions.
Many sales promotions aimed at building relationships with channel partners follow
similar designs as those directed to consumers including promotional pricing, contests
and free product. In addition to these, several other promotional approaches are
specifically designed to appeal to trade partners.
Techniques used in trade promotion
On-consignment sales
Dealer contests
Dealer gifts
Display contests
Point of sale material
Shop board painting
Dealer discounts
Trade fair participation
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Dealer meets
Cooperative advertising
Advantages and Disadvantages of sales Promotion
Sales Promotion techniques yield results that many other marketing communication
elements cannot achieve .For example it can turn around a sales trend in the short
run ,help introduce a new product by encouraging consumer and retail
acceptance ,reinforce message driven by other communication –mix element ,etc.Some of
the benefits of sale promotion :
Sales promotion produces result by stimulating people to act – to try, to buy, to
buy more, or to buy more often. It can lead to trial, generate excitement,
encourage rein peat purchase, attract switchers, etc. It is especially helpful in
situations where there is extreme pressure to increase sales eg.at the end of the
year when there are shortfalls in budgeted sales.
It produces immediate results. While advertising or public relation act as an
investment producing sales in the long run, sales promotion works during a
definite span of time. Most of the sales come during the sale promotions period
itself. Very often, if the promotion is successful, one can get results within hours,
days or weeks.
It can prevent competitor entry or offset competitor promotions and thus help
maintain the brands current market share.
Sales promotion techniques directed at channel members or sales force can gain
channel support and involvement and help “push” the product. It helps in getting
shelf space and merchandising benefits at the retail level, clearing off excess
inventory, motivating sales people to find new contacts etc.
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Sales promotion is relatively easy to design and implement. It is possible to calculate
costs effect on sales and sometimes even on competitor sales.
DISADVANTAGES OF SALES PROMOTION
Most sales promotion is used for short-term results. Any excessive use can shift
the focus on short-term marketing planning that acts only at the behavioral level.
Increasing sales promotion activities has led to clutter, leading companies to cut
each other and thus eroding the bottom line.
In mature markets sales promotion does not do much in attracting new customers but only
switchers who are dear prone.
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INTRODUCTION OF THE PROBLEM
MARKETING STRATEGY BY AIRTEL
Bharti decided to design different marketing strategies for different circles depending on
the strategies, employed by the competitors. While the company was focusing on its
pricing strategies, its competitors in various sectors were concentrated on new service
offerings and value additions since the players almost immediately matched price
reduction moves, companies had begun focusing on developing value-added offerings
and schemes to expand their market and gain customer loyalty.
Analysts remarked that the players were coming up with new schemes or value-additions
almost every week to get the better of their competitors. By constantly keeping itself
abreast with the moves of its competitors and launching various proactive/reactive
schemes, Bharti was able to retain its leadership position. Despite continual attacks from
Vodafone, Reliance, , Idea Cellular and Bsnl, Bharti’s cellular services received good
high response in all circles during 2005. It was reported that in Mumbai, 60-75% of
customers seeking Airtel services were BPL Mobile and Hutch subscribers. In fact, it was
becoming difficult for the company to activate cellular connections in Mumbai swiftly on
account of the high rush – in some cases; it took almost three days to activate a
connection. 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
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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 outbrochures aboutthe company and its services to all consumers.About
50,000 direct callers were sent out.When the name waswell entrenched in the Delhiites’s
mind, the Airtel campaignbegan to focus on the utility of Cellphone.In the first
fourmonths alone Airtei's advertisement spends exceeded Rs. 4crores.As of today the
awareness level is 60% unaided.This impliesthat if potential or knowledgeable consumers
are asked to namea Cellular phone service provider that is on the top of his/hermind 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 measuredby the percentage score of
the brand on the above aided and theunaided tests.The figures show that Airtel is a
healthy and athriving brand.
Every company has a goal, which might comprise a sales targetand a game plan with due
regard to its competitor.Airtel 'scampaign strategy is designed keeping in mind its
marketingstrategy.The tone, tenor and the stance of the visual ads aredesigned to convey
the image of a market leader in terms of itsmarket share.It tries to portray the image of
being a "firstmover every time" and that of a "market leader".
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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 realized 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 organized 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 .
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.
There have been educational campaigns, image campaigns, pre launch
advertisements, launch advertisements, congratulatory advertisements,
promotional advertise-ments, attacking advertisements and tactical
advertisements.
55
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 cell phone 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 awareness and trial
Maximize market share Maximize profits
whole defending
market share
56
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 colors 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.
57
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 organizations
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 cell phone is an
expensive means of communication and drive home the point that the cell phone is
actually a day-to-day utility
PRODUCT POLICY AND PLANNING
The product or services the hearts 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 recognized the significance of making the first move--
because in the field of Communication & Information Technology changes occur at a
58
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 optimize 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 Airtela re:-
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
Short Message Service
59
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
Mobile Fax 1 Data Service
This service helps the subscriber to send and receive Faxes, access E-mail,
download files from other systems and remotely log on to another computer and
surf the Internet.
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.
Caller ID
Displays calling person's number.
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.
Call forward
60
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 cell phones would be used buy]
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.
61
OBJECTIVE OF STUDY
I have further improved my objectives as specified in my synopsis with the help of my
mentor Mr. Abhishek Abraham which are as follows
Primary research objective:-
To study and interpret the sales promotion schemes running by airtel in NCRzone. And to
know that how the consumer can be retain for maximum time on same network.
Secondary research objective:-
To study and analysis the Marketing and Promotional strategy adopted by Airtel in
NCR Region.
To determine the most popular telecom brand
To determine the average age on consumers on same network
To determine the best sales promotion scheme
To determine the consequences of current schemes
62
HYPOTHESIS
The Scope of the Research study would include the geographic & Demographic region of
NCR. The research targets the retailers and distributors who deal into telecom services
and the time period of the survey is from June 2012.
63
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:
The procedures by which researchers go about their work of describing, explaining and
predicting phenomena are called methodology. Methods comprise the procedures used for
generating, collecting and evaluating data. Methods are ways of obtaining information
useful for assessing explanations.
RESEARCH DEFINITION:
The definition of research given by Creswell is "Research is a process of steps used
to collect and analyze information to increase our understanding of a topic or issue". It
consists of three steps: Pose a question, collect data to answer the question, and present an
answer to the question.
Research Design:
The type of research chosen for the study is descriptive research. In descriptive research
various parameters will be chosen and analyzing the variations between these parameters.
This was done with an objective to find out the motivation level of the employees.
Data Sources:
The data collected for the study is mainly through the distribution of questionnaire; to be
precise the data collected for study was both primary and secondary sources.
Primary Data:
Primary data is the information collected for the first time; there are several methods in
which the data is complied. In this project it was obtained by mean of questionnaires.
Questionnaire was prepared and distributed to the people.
64
Secondary Data:
Secondary data needed for conducting research work were collected from
company websites, library and search engines.
Research Instrument:
In this study the primary data was collected by survey technique. In this we distributed
the questionnaires to the respondents. The researcher structured the questionnaire in the
form of:
1. Multiple Choice Questions
Questionnaire:
A questionnaire is a sheet of paper containing questions relating to contain specific
aspect, regarding which the researcher collects the data. Because of their flexibility the
questionnaire method is by far the most common instrument to collect primary data. The
questionnaire is given to the respondent to be filled up.
Sampling Design:
Sampling design is to clearly define set of objective, technically called the universe to be
studied. Sampling technique used is simple random sampling method.
Sample Size:
This refers to the number of items to be selected from the universe to constitute a sample.
The sample size for this study was taken as 100.
Statistical Tools Used:
The data collected was analyzed by employing the following statistical technique:
Percentage analysis:
Percentage refers to special kind of ration. It is used in making comparison between two
or more series of data. It is used to describe relationship. It is used to analyses the data.
Bar charts, pie charts were used to explain tabulation clearly.
65
RESEARCH DESIGN
Descriptive Design.
PR OCEDURE FOR DATA COLLECTION.
Communication, asking questions and receiving a response in person
Visiting the various organizations, libraries, internet and also preparation of the
questionnaire with the help of the project guide.
DATA COLLECTION METHOD
PRIMARY METHOD: - Data was collected from respondents through direct interaction
and through personal meetings.
SECONDARY METHOD: - External study data has also been used through internet.
And through news letters & journals.
66
DATA COLLECTION AND DATA ANALYSIS
GSM MOBILE MARKET SHARE IN INDIA-
TELECOM COMPANY SHARE{%}
BHARTI AIRTEL 30.86%
VODAFONE ESSAR 23.87%
IDEA CELLULAR 15.19%
BSNL 15.08%
AIRCEL 8.38%
RELIANCE 4.0%
MTNL 1.17%
LOOP MOBILE 0.69%
UNINOR 0.64%
STEL 0.13%
67
30.86
23.87
15.19
15.08
8.38
4
1.17 0.690000000000004 0.640000000000006 0.13
SHARE{%}
AIRTELVODAFONEIDEABSNLAIRCELRELIANCEMTNLLOOPUNINORSTEL
From the above data it’s can be say that Airtel is the leading brand in telecom
industry of India , having 30.86% market share and 121.7 million customers. And
second leading brand is Vodafone with 23.87% market share. Airtel is most admired
brand by consumers.
68
AIRTEL MARKET SHARES IN NCR.
MOBILE NETWORK MARKET SHARE
AIRTEL 34.5%
OTHERS {VODAFONE,IDEA,REL.
ETC.}
65.5%
34.50%
65.50%
MARKET SHARE
AIRTELOTHERS
Airtel is the most leading and admired brand in NCR zone with 34.5% market share.
Airtel is providing the best telecom services with better promotional schemes and
with heavy advertisement. Bharti AIRTEL ltd. is a part of Bharti airtel ltd. which is
formatted for UP zone. Bharti AIRTEL is allotted 20 distribution points and 6
territory managers in all over NCR. So that the customers and retailers can easily
use the services.
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MARKET CONDITION OF AIRTEL IN NCR’S DIFFERENT AREAS
WALL CITY
MOBILE NETWORK MARKET SHARE
AIRTEL 38.4%
OTHERS {VODAFONE,IDEA,REL. ETC.} 61.6%
38.40%
61.80%
MARKET SHARE
AIRTELOTHERS
Airtel is on 1st position in wall city area of NCR , wall city is the core area of NCR
city. Airtel is having the 4 distribution points in only this area. Airtel is here leader
because of its better services for retailers and consumers.
Territory manager- Mr. Rakesh Sharma
Distributers :
Gupta brothers agency
Rohini agencies
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S.S. marketing
The delphine
Territory 2 (jhotwara, shashtri nagar, vidhadhar nagar etc.)
MOBILE NETWORK MARKET SHARE
AIRTEL 35%
OTHERS {VODAFONE,IDEA,REL. ETC.} 65%
35%
65%
MARKET SHARE
AIRTELOTHERS
This territory is divided in 4 distribution point. Airtel is again here on top rank
with 35 % market share. In this area Airtel is best service providers among all
other competitors. This is only because of best sales & marketing management by
Airtel.
Territory manager- Mr. Umang mishra
Distributers :
Singhal marketing co.
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Murlidhar chimanilal
Sandesh cellular pvt. Ltd.
Manav agency
Territory 3 (tonk road, sodala, jawahar nagar etc.)
MOBILE NETWORK MARKET SHARE
AIRTEL 33.45%
OTHERS {VODAFONE,IDEA,REL. ETC.} 66.55%
33.45%
66.55%
MARKET SHARE
AIRTELOTHERS
Again Airtel is on 1st position with the 33.45 % market share in this area. Airtel is
having 4 distribution point with experienced staff , providing excellent telecom
services. In this area Vodafone is on second position.
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Territory manager- Mr. Ojesvi
Distributers :
Aditya agency
Pawan specialties
Sri nath services
Shree jee services
Territory 4 (Noida, Ghaziabad, Modinagar etc.)
MOBILE NETWORK MARKET SHARE
AIRTEL 33.2%
OTHERS {VODAFONE,IDEA,REL. ETC.} 66.8%
33.20%
66.80%
MARKET SHARE
AIRTELOTHERS
73
Again Airtel is on 1st position with the 33.2 % market share in this area. Airtel is
having 4 distribution point with experienced staff such as 9 FOS and 10 ARE.
And providing excellent telecom services. In this area Vodafone is on second
position.
Territory manager- Mr. Pushpendra
Distributers :
Ganpati marketing
Subhaashish
Yash agency
Bhasker agency
Territory 5 (Mohan nagar, Meerut, Mawana etc.)
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MOBILE NETWORK MARKET SHARE
AIRTEL 33%
OTHERS {VODAFONE,IDEA,REL. ETC.} 67%
33%
67%
MARKET SHARE
AIRTELOTHERS
In this area Airtel is on top position with 33 % market share . This territory is
devided in Distribution point with a experienced staff of 7 FOS and 6 ARE. In this area
Airtel isBest service providers among all other competitors. This is only because of best
sales &Marketing management.
Territory manager- Mr. Shailendra
Distributers :
Sagar enterprises
R L associates
Suryansh marketing
Modern Trade-
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Modern trade is a different concept of Airtel marketing strategy. It’s having
separate management style of sales & marketing. Under this concept the company
having tie-up with around 115 mobile outlets such as – The mobile store, planet
M, Hotspot mobile point etc. in all over NCR zone.
Modern trade is very effective and beneficial concept . In this Airtel is having
95% market share and rest 5 % of others brands like – Vodafone, idea, banal etc.
MOBILE NETWORK MARKET SHARE
AIRTEL 95%
OTHERS {VODAFONE,IDEA,REL. ETC.} 5%
95%
5%
MARKET SHARE
AIRTELOTHERS
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Territory manager- Mr. Lokesh
Distribution point : Shiv maya
SALES PROMOTION BY AIRTEL IN NCR ZONE
Airtel is leading and most admired brand in NCR. Airtel is contributing 34.5% market in
this zone and rest 65.5% market is acquired by all other companies such as Vodafone ,
idea, bsnl etc.
This shows that Airtel is doing best in telecommunication industry. Bharti Airtel Ltd.
having its own separate entity named as BHARTI AIRTEL LTD. for UP region.
Earlier Airtel was providing mobile SIM cards at very low price or totally free, but the
consequences occurred that the consumer age on network could not be for a long period
because the consumers did not paid for that SIM card and whatever they got as talk value
and other useful schemes, they were used it and threw the SIM cards. Than the Airtel
decided to make a change in this procedure of activations. Now Airtel providing a mobile
connection at a specific price so if customer buy it than he will be with network for a long
period because he has paid a amount for it.
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Activation scheme of may,2012
FRC Rs61+10Rs Sim charge Rs31+10RsSimcharge
Talk time
55+30{A to A min.} 25+15{A to A min.}
Call rate 50p./min{local,std} 50p./min{local,std}
Up front 15+10 Rs{for retailer} 10+10{for retailer}
Lending 46Rs 21Rs
Airtel launched two FRC plan in may,2012 ie. Rs 61 and Rs 31. And 10 Rs for SIM card.
In FRC 61 customer gets 55 Rs as main talk value and 30 min. for A to A network. And
call rate will be 50p./min for local & National call on any network. For this scheme Airtel
decided to give some commission 15+10 Rs. And in FRC of Rs.31 customer gets 25 Rs
as main talk value and 15 min. for A to A network. And call rate will be 50p./min for
local & National call on any network. And retailers get 10+10 Rs as commission.
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TOTAL CONNECTIONS OF UP , (April,2012)
MOBILE NETWORK TOTAL CONNECTIONS
Airtel 823,000 (33.85%)
Others 16,08,000 (66.15%)
33.85%
66.15%
CONNECTIONS
AIRTELOTHERS
From the above statistics it can be say that the airtel contributed in highest ratio, with
33.85% in UP zone. The market base was 2431000 activations in April, 2012and only
airtelcontributedaround 823,000 activations.
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TOTAL CONNECTIONS OF UP , (May,2012)
MOBILE NETWORK TOTAL CONNECTIONS
Airtel 800,000 (33.43%)
Others 15,93,000 (66.57%)
33.43%
66.57%
CONNECTIONS
AIRTELOTHERS
From the above data it can be say that the airtel contributed in highest ratio,with 33.43%
in UP zone. The market base was 2393000 activations in May, 2012 and only airtel
contributed around 800000 activations.
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COMPETITIOR’S SCHEMES (MAY, 2012)
VODAFONE
FRC Rs 28
TALK VALUE 20 Rs
CALL RATE 50P./min{Local & National}
UP FRONT
{FOR RETAILERS}
18 Rs
RELIANCE INDIA MOBILE.
FRC Rs 84 Rs 85 Rs 86
TALK VALUE 51 Rs 51 Rs 51 Rs
CALL RATE 1P./Sec {Local &
National}
50p./Sec {Local
& National}
1Rs./3 Min.
{Local &
National}
UP FRONT
(FOR
RETAILERS )
63 Rs 62 Rs 61 Rs
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IDEA CELLULAR
FRC Rs 47 Rs 49 Rs 130
TALK VALUE 30+20 Rs 30+20 Rs 100 Rs
CALL RATE 1P./Sec {Local &
National}
40p./Min.{Local}
60p./Min.{National}
1P./Sec {Local &
National}
UP FRONT
(FOR
RETAILERS )
20 Rs 18 Rs 50 Rs
Above all activation plans launched by Airtel’s competitors in May, 2012.
These all plans have same motive that is to increase the water fall of total
activations. Water fall here refers for the age of a consumer on the network,
means a sim card is to be activated than for how much days or months this card
be used or be with same network. And for increase this water fall Airtel
launched the different schemes for prepaid connections.
WATER FALL (JAN’12) - 71 %
WATER FALL (FEB’12) – 68%
WATER FALL (MARCH’12) – 75%
Airtel started some other promotional programs such as activation contest for
retailers , bonus issues for its employees and retailers. Airtel announced many
gifts for retailers to motivate them . So the retailers put their efforts and interest
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to increase the sales and no. of activations. Airtel gives a commission on 2.5%
to retailers on every recharge sale. And gives a good return to retailers on their
every activation.
Activation scheme of June,2012
FRC Rs61+10Rs Sim charge Rs62+10RsSimcharge
Talk time 50+15 min.+160sms 50+15 min.+160sms
Call rate 1p./sec{local},1.2p./sec{std} 50p./min{local,std}
Up front 10+15{for retailer} 10+15{for retailer}
Lending 46Rs 47Rs
FRC Rs31+10Rs Sim charge Rs32+10RsSimcharge
Talk time 25+6 min.+90sms 25+6 min.+90sms
Call rate 1p./sec{local},1.2p./sec{std} 50p./min{local,std}
Up front 10+10{for retailer} 10+10{for retailer}
Lending 21Rs 22Rs
In the month of June Airtel make a change in the FRC schemes . which has shown
in above index. Airtel did so to compete in the market. Airtel also launched a sales
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promotional program named as “MANSOON MAHOTSAV” along with all
schemes. Under this program company has fixed some bonus and gifts for the
retailers on some easy conditions and targets. The retailers pay their
concentrations on airtel mobile activations.
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MANSOON MAHOTSAV
This program is brings by airtel for its retailers to motivate and attract them. Airtel
believes that if the retailers are put their efforts and interest to increase the no. of
activation so it will gives the most effective result to the company. So to enhance
the interest of retailers airtel starts this promotional program.
DETAIL OF GIFT VOUCHERS{MANSOON MAHOTSAV}
POINTS GIFTS
300
5 Ltr. Camper/ Bombay dyeing linen
650 20gm Silver/ 3Pc casserole/Steam iron
1000 30gm Silver/ Ceiling fan(Branded)
1500 45gm Silver/ JMG
3500 110gm Silver/ HP photo copier(F4488)
5500 Digital Camera 7 MP/ Home theater / 3gm Gold
7500 Microwave/ 250gm Silver
10,000 Washing machine/ 5gm Gold/ 19” LCD/ HP photo copier (1136)
15,000 1.5 Tn AC/ 7gm Gold/ Handy cam
30,000 32” LCD/ Laptop/ 15gm Gold
35,000 Bike CD DOWN/ 18gm Gold
55,000 Bike Hero Honda passion/ 30gm Gold
90,000 50gm Gold
125,000 TATA Nano car
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COMPETITIOR’S SCHEMES (JUNE, 2012)
VODAFONE
FRC Rs 28 Rs 29
TALK VALUE 20 Rs 20 Rs
CALL RATE 1P./Sec {Local, National} 50p./Min {Local, National}
UP FRONT {For
Retailers}
8 Rs 8 Rs
FRC Rs 48 Rs 98
TALK VALUE 40 Rs 98 Rs
CALL RATE 1P./Sec {Local, National} 1P./Sec {Local, National}
UP FRONT {For
Retailers}
18 Rs 28 Rs
RELIANCE MO.
FRC Rs 85 Rs 86
TALK VALUE 40 Rs 40 Rs
CALL RATE 50p./Min {Local, National} 1P./Sec {Local, National}
UP FRONT {For
Retailers}
65 Rs 65 Rs
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FINDINGS
1. Airtel holds number one position in India with 30.86 % market share.
2. Same as in NCR zone Airtel is on 1st position with 34.5% market share.
3. In NCR zone Airtel having 20 distributers and around 2800 retailers.
4. Airtel launches every month a new FRC scheme.
5. Earlier Airtel provided SIM cards at very low price or free. But this
method was not so effective because consumers started making it use and
throw kind of stuff. By this way company was being unable to make such
stable and long last consumers.
6. Now airtel launches some FRC schemes. So the customer has to pay a
amount for a new sim activation. By this way now consumer age is started
being long.
7. Vodafone is the biggest competitor of Airtel in telecom industry.
8. The distributer gives different scheme to different shopkeepers.
9. Mostly retailers are satisfied with Airtel service.
10. Some retailers reported that they do not get time to time airtel products.
11. Some retailers are not satisfied with margin policy of Airtel.
12. Earlier the FRC plan 61 launched that time some light retailers were facing
problem to convince the customers. Because competitors were providing
same plan at low cost.
13. Some Outlets owners are very angry with the company’s performance
because they did well in Airtel mo. Connection but they were not
appreciated by the company.
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14. Some retailers are facing problem in ID verification policy of Airtel.
Because the company make so strict this procedure.
15. Many customers are diverted to other network due to strictness in id
verification.
16. Some retailers reported that the company does not provide enough return
on their performance.
17.Modern trade is very effective concept. In this concept the Airtel is
contributing 95% market. And rest 5% covered by all other competitors.
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SUGGESTION
First of all company will provide all its dealers and retailers to all sort of promotion
equipment such as glow sign board, banner, pumplates etc. in time so that they
increase their sales which is benefited both retailer as well as company.
Few outlets are unaware about scheme so proper communication is necessary
between distributor and retailers.
Number of hoarding should be increased.
Company should be lenient in ID verification procedure.
To increase the consumer as on network, company should make change in its FRC
plan for example the talk value should be divided in two parts. 50% of talk value
should provide at the time of activation and rest T.T. provide after gap of some
days.
Company should make understand its retailers about the benefits of consumer as
on network.
Company should give extra return and other bonus, gifts to its retailers so they put
their full efforts to increase the Airtel sales.
Company should motivate its sales staff so they will pay more concentration in
sales and activation of new connections.
Company should make some necessary change in its FRC plan. For example
company should divide the talk time in to two time {50% at the time of activation
+ 50% after 15 days.}
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LIMITATION OF STUDY
Many retailers do not cooperate and searching of retailer outlet name was much
more difficult as many of them have not put their Shop name in Board.
Dealers and Retailer do not like to give information of their selling.
The projection is purely based on verbal meeting and may be influenced by
unprecedented factors
Lack of interest in retailers to provide full information of their performance.
Problem occurred in collection of competition details from the retailers.
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CONCLUSION
Every thing in this world is made to utilize properly but it should be reach at the proper
person or to the proper utilized areas. Otherwise the value added to those things became
in vein.
Thus promotion role plays a very important role in achieving the objectives of a
company. Undoubtly, value utility is created by the manufacture of product or service but
time and place utilities are created by marketing role.
The various finding and befitting recommendation have been made to increase the market
share of each product(postpaid, prepaid) of Airtel thereby increasing the market share of
Airtel as a whole. Various facts and data have been enclosed for better perusal and
various graphs have been provided for better comprehension.
Sales Promotion techniques yield results that many other marketing communication
elements cannot achieve.
Sales promotion that is used in with the overall long-turn communication strategy of the
brand is said to use strategically. A promotion should not be used for the sole purpose of
altering sales in the short run .
Sales promotion is used as a very strategic tool to introduce a new product. Although
advertising plays a large role towards creating awareness and attitude information, sales
promotion used to make new product launch easier and more effective.
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BIBLIOGRAPHY
WEB SITES-
BOOKS-
C.R Kothari , “ Research Methodology” , Vishwa Publication , New Delhi , II Edition
William G. Zikmund , “Business Research Methods , 2003 Edition
MAGAZINES-
Business today India today Forbes India
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QUESTIONNAIRE
I Vikrant Chaudhary a final year student of Galghotia MBA (Marketing) . I have prepared the following questionnaire for the completion of my summer project. I promise that all the answer provided by you won’t be made public. This questionnaire is purely for educational purpose.
BHARTI AIRTEL
Name: __________________________________________________________________
Age: ________
Occupation _____________________________________
Address: ________________________________________________________________
Phone No. _________________________________________________________________
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QUESTIONNAIRE
QUS (1)Do you have any mobile connection?
QUS (2) Which age group you belong to? (a)15-20 (b)20-25 (c)25-35
(d)35- above
QUS (3) What occupation do you have? (a)Business (b)Professional (c)Government Employee (d)Student
QUS (4) Do you know how many telecommunication companies exist in Lucknow region? (a)6 (b)5 (c)4 (d)Not confirm
QUS (5) If you have to purchase mobile phone connection which company you will prefer and why? (a)Airtel (b)Reliance (c)TATA indicom (d)Vodafone
QUS (6)How you came to know the scheme/service that you use?
(a) Advertisements (b) Word of Mouth
(c) Internet (d) Promotional activity
QUS (7) You would like to take Prepaid connection or Post paid connection?
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