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Value Added Services of Airtel: The Cat To Bell
Submitted in the partial fulfillment of Post Graduate Diploma in Managment
By
Varun RajITM Business School, Navi Mumbai
Under the guidance of
Mr Manoj Gupta Prof. Sudipto ChakrabortyManager, Marketing (VAS) Professor
Airtel, Delhi ITM Business School
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Certificate of Approval
The following Summer Project Report titled "Value Added Services of Airtel in Delhi NCR Circle" is
hereby approved as a certified study in management carried out and presented in a manner satisfactory
to warrant its acceptance as a prerequisite for the award ofPost-Graduate Diploma in Management for
which it has been submitted. It is understood that by this approval the undersigned do not necessarily
endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve
the Summer Project Report only for the purpose it is submitted.
Summer Project Report Examination Committee for evaluation of Summer Project Report
Name Signature
1. Faculty Mentor Prof. Sudipto Chakarborty ___________________
2. Company Guide Mr Manoj Gupta ___________________
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Certificate from Summer Project Guides
This is to certify that Mr. Varun Raj, a student of the Post-Graduate Diploma in Management, has
worked under our guidance and supervision. This Summer Project Report has the requisite standard andto the best of our knowledge no part of it has been reproduced from any other summer project,
monograph, report or book.
Prof. Sudipto Chakarborty Mr. Manoj Gupta
ITM Business School Manager, Marketing (VAS)Navi Mumbai Bharti Airtel Ltd.
270, Udyog Vihar, Gurgaon
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Acknowledgement
I take this opportunity to express my happiness and gratitude towards Bharti Airtel Limitedand
its management for providing me the opportunity to pursue my summer training in the
Company.
I feel great pleasure in expressing my deep sense of gratitude and profound thanks to my
project guide/mentorMr. Manoj Gupta (Manager Marketing - VAS) for his continuous
encouragement and assistance which helped me in completing this project successfully.
I also express my gratitude to my summer internship guide, Prof. Sudipto Chakraborty, Faculty,
ITM Business School, Navi Mumbai for providing necessary guidance from time to time
essential to the completion of my project.
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OBJECTIVES
Understanding the Value Added Services of Airtel in Delhi NCR Circle. Finding the Ways to increase the market penetration of these services:
- Studying the Customer Behaviour- Understanding the Retailers Market of Value Added Services.- Customer Profiling using various segmentation criteria.
METHODOLOGY
PRIMARY RESEARCH
Customer Survey (Telephonic Survey) Retailers Survey (Questionnaire Based)
SECONDARY RESEARCH
Secondary data analysis: Understanding the Usage Pattern (November 08 April09) Customer Profiling on the basis of cell site analysis Demographic (Age & Gender) and Socio-Cultural (Religion Based) Segmentation Age on Network Vs Decrement Analysis
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INDIAN TELECOM INDUSTRY
INTRODUCTION
The Indian telecommunications industry is one of the fastest growing in the world and India is the
second largest telecom market globally just behind China. In fact, in April 2008, India had already
overtaken the US as the second largest wireless market.
A large population, low telephony penetration levels, and a rise in consumers' income and spending
owing to strong economic growth, have been instrumental in Indian telecom market growth. Mobile
telephony was introduced in Indian markets in mid- 1990s. In the last few years, the sector has
witnessed tremendous growth.
India added 113.26 million new customers in 2008, the largest globally. To put this growth into
perspective, the countrys cellular base witnessed close to 50 per cent growth in 2008, with an average
9.5 million customers added every month. According to the Telecom Regulatory Authority of India
(TRAI), the total number of telephone connections (mobile as well as fixed) had touched 385 million as
of December 2008, taking the telecom penetration to over 33 per cent. This means that one out of every
three Indians has a telephone connection, and telecom companies expect this pace of growth to
continue in 2009 as well.
According to CRISIL Research estimates, eight infrastructure sectors, which include the telecom sector,
are expected to draw more than US$ 345.28 billion investment in India by 2012. With the rural India
growth story unfolding, the telecom sector is likely to see tremendous growth in India's rural and semi-
urban areas in the years to come. By 2012, India is likely to have 200 million rural telecom connections
at a penetration rate of 25 per cent. And according to a report jointly released by Confederation of
Indian Industry (CII) and Ernst & Young, by 2012, rural users will account for over 60 per cent of the total
telecom subscriber base.
Further, according to Business Monitor International, India is currently adding 8-10 million mobile
subscribers every month. It is estimated that by mid 2012, around half the country's population will own
a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density
of around 51 per cent by 2012.
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After the Telecommunication policies were revised to allow private operators, companies such
as Bharti Telecom, Tata Indicom, Vodafone, MTNL, Idea and BPL entered the space. Liberalized
policies have ensured lower tariffs and reduced roaming rentals. This will lead to increased
usage of mobile phones. Mobile telephony can be further categorized into CDMA and GSM.
Mobile telephony provides services such as messaging- text and multimedia- mobile commerce
through GPRS enabled mobile Internet, with local calls and long distance calls- national and
international. Not only service providers but also equipment manufacturers are contributing
towards the growth of the sector. Mobile telephony started up with bulky handsets and has
now reached to smart phones with cameras, radio facility and lots of other multimedia
applications. Also, PDAs have entered Indian markets with operating systems that make it a
pocket PC.
Although India's tele-density has improved from under 4% in March 2001 to over 35% by the
end of January 2009, we are still way behind other developing nations. Cellular telephony has
emerged as the fastest growing segment in the Indian telecom industry. The mobile subscriber
base (GSM and CDMA combined) has grown from under 2 million at the end of FY00 to touch
400 million at the end of May 2009. Tariff reduction and decline in handset costs has helped the
segment to gain in scale.
Source: Cellular Operators Association of India
Bharti Airtel
33%
Vodafone24%
BSNL/MTNL
16%
Idea
15%
Aircel
7%
Reliance
4% Others
1%
GSM Market Share (As on May'09)
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Source: Cellular Operators Association of India
Industry Size
y The telecom network in India is the fifth largest network in the world meeting up with globalstandards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to Indias GDP.
y FY09 saw the continuance of strong growth for the Indian telecom market, which witnessed a46% YoY increase in its subscriber base during the 12-month period. At the end of January 2009,
the countrys total telecom subscriber base (fixed plus mobile) stood at 400 million. Tele density
crossed the 35% mark by the end of the fiscal.
y Growth remained robust in the GSM mobile space, with the same growing its subscriber base by71 m, thus contributing to 76% of the total incremental subscriber addition for the entire Indian
telecom market. After a strong 75% YoY increase in subscriptions during FY07, the GSM industry
recorded another good performance during FY08, growing subscriber base by 59% YoY to over
192 m.
y During FY08, India's mobile subscriber base grew by 58% YoY, from 165 m to 261 m, while thefixed subscriber base declined by 3%, from 40.8 m to 39 m.
y The year also saw a strong 67% YoY rise in the Internet broadband subscriber base. Currently,the base stands at around 4 m users, as against 1.4 m at the end of March 2007.
Reliance
57%
Tata Tele
33%
BSNL/MTNL
7%
Others
3%
CDMA Market Share (As on May'09)
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Growth Estimates
It is well established that India has had one of the most remarkable growth in Telecom sector
since it was opened to private investments in 1994. India has been breaking all types of records
on new subscriber additions in the last two years by adding up to 8-10 million phones a month.
The Department of Telecommunication has estimated that Total mobile subscriber base in India
will cross 1 billion by the year 2014. Mobile teledensity is also expected to cross 80% in the
same year, which means that 8 out of every 10 Indians will have access to a mobile device.
YEAR POPULATION (millions) MOBILE DENSITY SUBSCRIBER BASE
2010 1200.9 46.5 558.9
2011 1217.8 55.8 680
2012 1233.3 64.7 797.8
2013 1248.9 72.9 909.1
2014 1264.8 80.2 1014.4
2015 1280.9 88.7 1109.1
(DOT forecast on Mobile Penetration, Times of India, May 26, 2009)
Growth Prospects
As far as the fixed line business goes, the low penetration levels in the country and the increasing
demand for data based services such as the Internet will act as major catalysts in the growth ofthis segment, which had a subscriber base of over 39 m at the end of FY08. The huge market
share of public sector behemoths, MTNL and BSNL is likely to get reduced further as the
penetration by private players spreads. In spite of this the PSUs will continue to retain their
dominant position this is on account of high capital investments required in setting up a
nationwide network. As a result, the private sector players will have to rely on key business
centers and pockets of high urbanization for their growth.
Increasing choice and one of the lowest tariffs in the world have made the cellular services an
attractive proposition for the average consumer. The segments subscriber base has grown by
over 57% YoY in FY08. Policy measures like lowering of taxes on the cellular industry and
benefits of enhanced FDI limits shall further the prospects of the cellular industry. Although
increased competition will result in depressed revenues in the near term, low tariffs would
ultimately result in increased volumes and higher usage.
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PROVIDER ADDITION IN JUNE 09 TOTAL BASE
AIRTEL 2.81 102.3
VODAFONE-ESSAR 2.36 68.7
AIRCEL 1.11 21.7
IDEA-SPICE 1
.61 47
RELIANCE COMM. 3.6 69.2
TATA TELESERVICES 1.4 32.7
BSNL-MTNL 1.2 50.8
Source: TRAI (All figures in millions)
GrowthDrivers
y Vast geographic expanse of India acts as a catalyst to boost mobilityy Low call costs since 2002 has fueled the wireless segmenty Narrowing gap of call costs between fixed and wireless customers and convince them to
subscribe to the wireless connections
y Improving standard of living with people having more dispensable income.y Nationwide roaming facilities on GSMy SMS facilityy Internet + Subscription bundlingy Reduced cost of handsets (affordability factor)y Customs duties have been reduced from 10% to 5%y In remote areas where providing fixed line connections were difficult, wireless did the
magic.
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MOBILE VALUE ADDED SERVICES (MVAS)
Today Telecommunication has moved beyond providing just basic voice calls. The mobile phone has
evolved from a mere communication device to an access mode with an ability to tap a plethora of
information and services available in the ecosystem. This is the reason why it is now being referred to asthe fourth screen, after Cinema halls, Television and PC.
Value Added Service (VAS) in telecommunication industry refers to non-core services, other than the
standard voice calls and fax transmission. The value added services are characterized as under:-
Not a form of core or basic service but adds value in total service offering.
Stands alone in terms of profitability and also stimulates incremental demand for core or basic services
Can sometimes be provided as stand alone.
Do not cannibalize core or basic service.
Can be add-on to core or basic service and as such can be sold at premium price.
May provide operational synergy with core or basic services.
A value added service may demonstrate one or more of these characteristics and not necessarily all of
them.
As per the definition of Telecom Regulatory Authority of India (TRAI), Value Added Services are
enhanced services which add value to the basic teleservices and bearer services for which separate
licence are issued
Today Value Added Services are used as a tool for differentiation and allow mobile operators to develop
another stream of revenue contributing 20% of their total topline.
The Current Indian Mobile VAS industry is estimated at Rs 9760 crores and is expected to grow steadily
at around 70% over the next few years to touch Rs 16500 crores by end June 2010. (Source-IMRB)
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UNDERSTANDING THE DIFFERENT MVAS CATEGORIES
Entertainment VAS Information VAS mCommerce
Definition These services provideEntertainment for leisure
time.
These services usually
generate
mass appeal
These are the services which
provide
some useful information to
the end
user. The user interest comes
from
personal or relevant
component of the
content.
These are the services which
involve some transaction on
mobile
Current Status Entertainment VAS is drivingthe
VAS market both in terms of
volume and revenue.
Information VAS is getting
popular
with different categories
depending
on the relevance
mCommerce is currently in
embryonic stage
Future Status Entertainment VAS isexpected to
remain the VAS driver for the
next
few years
Information VAS is going to
be key to address the needs
of
growing rural market
mCommerce has the
potential to
emerge as a key VAS
component
once security concerns are
addressed
Examples Jokes, Ringtones, Caller RingBack tones (Hello Tunes),
Wallpapers etc.
News, Stock Updates, Travel
Information, Bank Account
Information, Traffic Update
Train Ticket, Air Ticket, Movie
Ticket, Bill Payment
Perceived Value - Perceived value of a MVAS depends on perceived rather than the actual utility to the
end user. When the immediate benefit may not be clear to the subscriber, the value that a subscriberderives from it largely depends on the marketing efforts and persona related to the service.
A good example of a MVAS with high perceived value is CRBT (Caller Ring Back Tone).
Practical Value - Practical value is completely based on tangible benefits derived from the service. The
benefits considered could be based on convenience, time or money. E.g. Service availed to get the
cheapest air fares available, money transfer using mobile.
MVAS
Entertainment Infotainment mCommerce
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Source: IMRB Research
NEED FOR MOBILE VALUE ADDED SERVICES
Over the last 5 years, the telecom industry has understood the importance of MVAS. Given the declining
ARPU and increasing competition among operators its imperative to focus on alternate revenue
streams.
Thats where there is a felt need for capitalizing on the Value Added Services Market.The reasons for the increasing importance of MVAS can be classified as:
DECREASE IN ARPU DESPITE INCREASE IN MOU: Though the subscriber base is growing at a rapid
pace andhas positively impacted industry revenues, operator margins also have shrunk owing to
competition andlower Average Revenue per User (ARPU) as the major growth is coming from
bottom of the pyramid.As ARPU declines and voice gets commoditized, the challenge is to developalternative revenue streamsand retain customers by creating a basis for differentiation in high-churnmarkets.
0
2
4
6
8
10
0 2 4 6
Percieve
d Value
Practical Value
VAS Market 2008
Entertainmen
t
Infotainment
mCommerc
e
0123456
789
10
0 2 4 6
Percieve
d Value
Practical Value
VAS Market 2013
Entertainment
Infotainmen
t
mCommerc
e
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NEED FOR DIFFERENTIATION: There is a greater need among the telecom operators to differentiate
themselvesfrom each other.
Increasing Competition: With increasing number of licensees in the telecom space the averagenumbers of operators in many circles have increased to 5-6 operators offering more choices to the
consumer. Thus the competition among the operators has increased tremendously. Therefore it is
very important for them to differentiate themselves from the others. Now that voice has got
commoditized these operators are using MVAS for their differentiation and marketing these services
heavily for creating awareness among the consumers.
3G bidders who are non operators: The arrival of new technologies will give rise to greatercompetition as many non operators are also bidding for the 3G licenses. Department of Telecom has
planned to allow five 3G operators in each circle depending on the availability of spectrum.
Therefore there would be a greater need to differentiate one self in order to attract new customers
and retain the existing ones.
Saturation in Metro and Urban Market: The metro/urban areas offer high level of penetrationand have significant mobile subscribers. In such a highly saturated market with the entry of
MVNOs the competition will get fierce. Therefore capitalizing on value added services will give
operators opportunity to increase ARPU by providing premium services.
0
50
100
150
200
250
300
350
ARPU in INR
Declining Average Revenue Per User (ARPU)
Source: TRAI Quarterly
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Metro Circle Penetration
Delhi 90%
Mumbai 70%
Chennai 89%
Kolkata 67%
Bangalore 80%
Source: Broadband & Internet India
y INCREASING NEED AND DEMAND FROM CONSUMERS: In addition to the above supply sidereasons, the pull effect from consumers asking for more than just basic telephony is also a key
driver for MVAS services. Today most of the consumers are seeking more from their communication
device apart from just mobility and desire to stay connected.
MOBILE VALUE ADDED SERVICES VALUE CHAIN
Content Owners
These are the actual owners of the content who hold the copyright of the same. Though the content is
developed for some other media, the MVAS has started contributing significantly to their overall
revenuegeneration. For Example Aaj Tak News Channel Providing News Alert. They mostly providecontent to Content Aggregators but also some times interact directly with the operators.
Content Aggregators/Developers:
The MVAS growth has given birth to a new entity which aggregates content originally designed for some
other media, from different sources. Some of the content aggregatorsalso develop content especially
formobile phones for e.g. mobile games. For Example, Symbiotic, OnMobile etc.
Content OwnerContent
AggregatorTelecomOperator
PlatformEnabler
End User/Subscriber
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Technology Enablers
Technology partner & platform enablers handle software platforms and authoring tools. Thus they
provide thebackbone to all the MVAS being provided. The technology backend include solutions likeTelevoting system,Voice portal, etc.
REVENUE SHARING MODEL
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DRIVERS TO THE GROWTH OF MVAS IN INDIA
Push Factors:
Marketing Efforts by Operators : Operators are investing heavily in reaching out tocustomers moreeffectively to make them aware ofvarious services being offered by them. Among the promotionscarried out by operators, 60-70% would be for VAS be it Hello Tunes, Alert Services or m-Commerce.
Increase in User Base: On an average about 8.5 Million mobile subscribers are being added every month
and therefore the mobile industry is witnessing an unprecedented growth. With increasing growth rate
oflow end subscribers Traditional MVAS (P2P and P2A SMS) will have a huge growth potential amongthelow end mobile subscribers.
Price Decline of MVAS services: Looking at the high growth rate of low end mobile subscribers the
MVAS services are being offered at attractive prices such as subscription packs of free SMS or news
alerts etc.
New Technology Adoption By operators: From 3G, new services for premium MVAS consumers will
come like video services which use fair amount of bandwidth, (live TV, cricket match). Today because of
lack of data speed it just does not work
Pull Factors:
In the age of convergence, the prominent growth driver of MVAS would be the consumers desire of
gettingmore and more from their personal cellular device. While among the youth in India
entertainment servicewould be popular, the other consumers would also look out for utility basedservices like location information,mobile commerce (M-Commerce) for mobile transactions and Localcontent rich services.
Need for Entertainment: The youth segment that makes up 30% of the total handsets market in India
seeks entertainment on mobile. Currently, about 44% of MVAS revenue in India is driven by short
messaging service applications. The youth segment will also continue to drive the market, particularly in
the entertainment MVAS.
M-commerce and Transaction based services: In year to come money transfers, driven by lack of
banking infrastructure seems to be a key service need. M-commerce would be a large growth driver in
2-3 years time. With a lot of companies offering billpayment for utility services through mobile will
help grow m-commerce. This will largely come from urban because m-commerce is related verystrongly with bank accounts, credit cards which is largely anurban phenomenon.
Local Content : Unfortunately today Local content not available adequately. The content partners
currently are not developing content specific to even big metropolitan towns such as Durg or Raipur
not totalk about relatively smaller towns. Therefore there is a great need of investing right resources indeveloping rich content which millions of users will start subscribing.
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BARRIERS TO THE GROWTH OF MVAS IN INDIA
Demand Perspective
Limited awareness of services: The consumers are not fully aware of the services offered in the MVAS
market. The promotional SMS sent on the mobile phones are the primary source of making end
consumeraware of value added services. This method of promoting MVAS has now reached the
saturation stage.The stakeholders need to ensure that the consumers are educated about the value of
the services in theMVAS market. This would ensure more acceptability and usage of services among the
users.
High cost of content: Currently, the value added services are priced at a higher side. This is hampering
growth of MVAS market. The consumers look for value in a service if they are paying for it. Presently,
the consumers perceive that MVAS is priced higher than the actual value it is delivering to theconsumers.The Indian MVAS market consists primarily of prepaid users, who have relatively lower
budget forMVAS in their overall mobile expenditure. The stakeholders need to package the services in a
mannerthat ensures correct mix of money and value to the consumer.
Exit barriers for MVAS consumers are high: The service providers dont make the consumers well
aware of the process of unsubscribing from any service. The consumers may restrain from using the
services in case the exit barriers are too high. The service providers need to ensure that there is a
correct mechanism for making the users aware of exiting from the service.
Supply Perspective
Transparency in Revenue sharing arrangements: Revenue sharing arrangement in India is one of the
biggest hindrances for the growth of MVAS market. The stakeholders are in conflict with each other
about the revenue sharing system in India. Presently, telecom operators take majority of the revenue
andthe other entities get a lower share in the overall revenue. This is hampering the growth of content
development in India, and in turn the overall MVAS market. There is a need for designing a fair revenue
structure so that all the stakeholders in the ecosystem get theirshare of the revenue. This can be
achieved by aligning the revenue structure in accordance with theservices.
Limited availability of local content: Growth of MVAS market in India is hampered by lack of
localization of the content. Lack of local content restrains the growth of MVAS market in regional areas,
which has a great potential. This requires investment from the content providers. The stakeholders are
unsure about the return on investment, therefore, are concentrating only on mass market services.
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Introductionto Bharti Airtel
Bharti Airtel Limited is Indias largest integrated and the first private telecom services provider with a
footprint in all the 23 telecom circles. It also acts as a carrier for national and international long distance
communication services. The company has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore. Globally, Bharti Airtel is the 3rd
largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.
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. Established in 1985, Bharti
has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging
from being the first mobile service in Delhi, first private basic telephone service provider in the country,first Indian company to provide comprehensive telecom services outside India in Seychelles and first
private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures
Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its
subsidiaries operate telecom services across India. Bhartis operations are broadly handled by two
companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles
across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and
satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables
across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. The
group has a total customer base of 100 million.
Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities the company
believes are available in the Indian telecommunications market and consolidate its position to be the
leading integrated telecommunications services provider in key markets in India, with a focus on
providing mobile services.
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BHARTI AIRTEL STRATEGIC BUSINESS UNITS
The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBUs): -
Bharti Airtel
Tele-MediaServices
Mobile ServicesEnterprises
Services
Bharti Airtel offers
GSM mobile services
in all the 23-telecom
circles of India and is
the largest mobileservice provider in
the country, based
on the number of
customers.
The group offers high
speed broadband
internet with a best
in class network.
With Landlineservices in 94 cities it
help you stay in
touch with your
friends & family and
the world. Get world
class entertainment
with Indias best
direct to home (DTH)
service digital TV in
more than 150 cities
Enterprise Services
provides a broad
portfolio of
services to large
Enterprise andCarrier customers
(B2B). This division
comprises of the
Carrier and
Corporate business
unit. Enterprise
Services is
regarded as the
trusted
communications
partner.
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Missions
To meet the global standards for telecom services that delight customers through:
y Customer service focusy Empowered employeesy Innovative servicesy Cost Efficiency
Values
CUSTOMER: We will be responsible to the needs of our customers.
PEOPLE: We will trust and respect our employees.
LEARNING: We will continuously improve our services innovatively and expeditiously.
COMMUNITY: We will be transparent and sensitive in our dealings with all stakeholders.
OPPORTUNITIES: Imagine having the resources to influence tomorrows reality today. At Airtel
we are seeking people whose ideas can make a difference, individuals who thrive on the opportunity to
think creatively and be empowered to deliver. We are proud of our ability to nurture individuals and
provide them the space and empowerment they need to home their talents. Our size gives us the
unique ability to provide fast growth and high responsibility early in ones career as well as multiple
avenues to reach the top.
Vision and Promises
By 2010 Airtel will be the most admired brand in India:
y Loved by more customersy Targeted by top talenty Benchmarked by more businesses
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Marketing Department in Delhi Circle
The marketing department in Airtel Delhi circle is divided into a number of sub -divisions that
look after the various aspects of marketing the services offered by Airtel in the NCR circle. The
main functional divisions are:
Some Recent Achievements:
y In May, 2009 Bharti Airtel became the first telecom operator in India to cross 100 millioncustomer mark. This milestone made Airtel the fifth largest telecom operator in the
world and the second largest in Asia.
y In June, 2009 Airtel crossed 5 million customer mark in Delhi NCR circle.y In June, 2009 Bharti Airtel successfully entered into the much awaited and ambitious
strategic marger with South African Telecom Giant, MTN.
Marketing
AcquistionUsage
& RetentionValue Added
ServicesRevenuePlanning
MarketingCommunication
& Branding
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CUSTOMER SEGMENTATION ON THE BASIS OF VARIOUS CRITERIA
Value Added Services (SMS based alerts) is a highly niche product. Thus for a person to shell out
money for such services required to have a strong need as well as interest for the same. In such
a scenario the segmentation and profiling of customers as per the services become imperative.The following table shows the various criteria on which the segmentation can be done for eachservice.
DEVOTION
Demographic(Age)
Socio-Cultural(Religion and
Beliefs)
GeographicUsing the Cell
sites
NEWS/STOCK
Demographic(Age and
Occupation)
Socio-Cultural(CorporateCustomer)
Geographic
Using the Cellsites
SPORTS/CRICKET
Demographic(Age and
Occupation)
Geographic
Using the cellsites
JOBS
Demographic(Age and
Occupation)
Geographic
Using thecell sites
BOLLYWOOD/
LOVE
Demographic
(Age)
Psychographic(Movie Buff)
Geographic
Using the cellsites
HEALTH/ BEAUTY
Demographic(Age and Sex)
Socio-Cultural(Corporate
People, HighClass)
Psychographic(Health
Conscious &
BeautyConscious)
Geographic(Establishments)
Using the cell site
JOKES/SHAYARI
Behavioural(On the basis
of SMSusage)
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DEMOGRAPHIC & RELIGION BASED SEGMENTATION OF ENTIRE CUSTOMER BASE OFDELHI NCR CIRCLE
Total MobileCustomers
(54.7)
Postpaid
(9.3)
DND
(4.65)
Non DND
(4.67)
Age
Gender
Faith
Prepaid
(45.4) Non DND(41.26)
Age
Gender
Faith
DND
(4.13)
Inactive Base
(9.0)
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24 | P a g e
Post-paid Customers
Remaining customer base (mostly consisting of Hindu) could not be segmented on the basis of religion
using their last name.
Non DND
(4.67 lakh)
Age
Gender
Religion
Age Grou
No. of customers
ercentage
< 7 6
>
6
6
otal 4
Gender alutation
otal ustomers years
ale
r.
6
6
(76
!)
" # 7
$7(
# !)
% $7
#4
#(4
!) 7
# % (
% .
!)
s.
$ " (7
!)
% $ 4
$(
.4
!)
% 66
#(
#.
!) 4
$ (
% !)
rs.
4 % "
(7. !
) 4 %
4(% !
)# #
(4. !
)"
67%
(% !
)&emale
Religion No. of '
ustomers <
years
years >
year
un(
abi 6 ( .4) ) 4 6 6 4
Gu
taAgra
0al etc.
66 (7
))
46
4 4
4
1uslims 6
6 (
.
))
6
67
2
ain 4 ( . ) ) 4 4
'hristian
(
.
)) 4
6
4
73
6 in number =4 3 5 6
73
6 in last =7 3 6
7
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26 | P a g e
CUSTOMER PROFILING USING CELL SITES
A cell site is a term used for a site where antennas and electronic communications equipment are placed
on a radio tower to create a cell in a network. A cell site is composed of a tower or other elevated
structure for mounting antennas, and one or more sets of transmitter/receivers transceivers, digital
signal processors, control electronics, a GPS receiver for timing, regular and backup electrical power
sources, and sheltering.
Customer Data of 50 lakh was used for this analysis. Database contained the phone number and the
corresponding cell site from where that customer did maximum calling for the month i.e May09.
Results after using Cell Site based Segmented customer Base
The following table shows the number of hits i.e. subscription achieved when the customer base of 1 lac
for each of the service was sent the promotional SMS. The number of hits achieved rose significantly
when the promotion was done on the segmented base using Cell Sites Analysis.
ServiceNo. of Cell
Sites
Numb er of Prospective Customers
(on the b asis of cell site analysis)
Sports 183 2,39,236
Devotion 126 2,09,104
Health/Beauty 161 4,52,950
Love/Bollywood 82 1,27,055
News 98 3,55,197
Jobs 139 94,223
Jokes/Shayari 1,97,342
News Stock Health/Beauty Jobs Bollywood
n 1-June,09 543 340 233 175 98
n 15-June,09 1545 1143 797 980 413
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27 | P a g e
Cross Product Analysis
For Above Analysis the following VAS except P2P messaging was taken.
*More than 12 lakhs customers are on >1 VAS.
SMS Alert Analysis On the Basis of Age
All the subscribers of SMS alert services were atleast graduate or above VOCVOC.xls
P2A A2P Airtel Live MKR MOD MCA HT Vchat
Age G o p
A2P P2A HT MOD MKR Vchat Ai tel ive MCA
0 10 849 44 343 39 09 11 687 12 00 9 4 9 12 016 10 426
Total 1 31 646 16 392 9 401 1 42 373 1 33 072 1 09 3 4 1 40 2 8 1 37 101
VAS
Age Go
p
ew
Spo
ts Devotio
Jo
s Jo
es Total
0 1612 67
892 1
34
848
372
SMS Alet*
P2A
AgeGo
ps 1 2 3 4 >5 A2P
50 1
1998 67
773 18
809
780 1
860 HT
Total 18 2 237 8 61 70 2 46 642 70 071 23 64 Vchat
m e ofSubscribe VAS*
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28 | P a g e
AON Vs Decrement Analysis
Selected Area indicated the monthly decrement bracket containing maximum subscribers for a
particular service.
0- - -6 6- j k j l
otal
0- m n 5 5o 5
n
- 0
n 5
n
5
11- j 0 m 5 n n
m
21-0
n m o n 5
55
31-
n n
n m o
o
m
6-60 n n n
n o
61-9 55 m o o
n n 5o
96-120 5 n m o 5 n
m n n n o o
121-150
m o n m o o
n m n
151-180 n n 5
n o o
181-210n n
5
o
o m
211-240 n 5 5
m
241-270 n n n m m m
271-300 n n n n 5 n 5 m n m n
AB 300 n o n n m o
m 5
5 n o
NEWS
Decrement
AON (mont
)
0-1 1-3 3-6 6-12 >12 Total
0-3 z { | | | 5}~
{
|
4-10{5
{ } {
~
} }
{ } z
11-20 {
{
~
{ {
~
{ | z
21-30 {
|5
{ z | z
} |
}
|
31-45| {
{ {
z {5
|5
~ ~
z
46-60z }
~
} { |5
z
z
} |
z
61-95
{ { }
|
{5
~
}
5z
~ ~
96-120z
z z
| |
{ }
~
{ |
121-150|
~
{
z
5 ~
| {5
~
151-180 z
{ {
5| |
~
5
{ |
|
181-210 z z
{
~
| |
~ ~
{ |
|
211-240z { }
{ | z |
} }
{ {
5
241-270{ z } } { |
~
z
5~
5 ~
{
{
271-300 { z~
} { z
~
z z
~
5
5 ~
AB 300{ |
5}
z z {5
5~
5{ |
~
|
JOBS
Decrement
AON(mont )
0-1 1-3 3-6 6-12 >12 Total
0-3
4-10
11-20
21-30
31-45
5
5
46-60
5
61-95
5
5
96-120
5
121-150
151-180 5
5
5
181-210
5
5
211-240
5
241-270
5
5
5
271-300
AB 300
55
5
CRICKET/SPORTS
Decrement
AON (mon t
)
0-1 1-3 3-6 6-12 >12 Total
0-3
5
4-10
11-20
5
21-30
31-45
5
5
46-60
5
5
61-95
96-120
121-150
5
151-180
5
181-210
5
211-240
241-270
5
271-300
AB 300
55
5
DEVOTION
Decrement
AON (mont
)
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29 | P a g e
Voice of Retailer Findings
VAS related findings:
Some other Findings:
y Popular SMS Packs:Vodafone@35, Idea@35, 42 and 79 (where Vodafone@35 is a great hit).
y Higher margin on super value coupons by other operators especially by Vodafone which gives 12-15% margin as compared to Airtel who gives 5-8%.
y Full Talktime@222;great demand in the market.y Local A2A 1000 mins@197 was a hit.y Reclaim of damaged SIMs and recharge coupons poses great difficulty for retailers.y Most of the retailers are not happy with their distributors.
Retailers Covered
West Delhi
(40)
South Delhi
(40)
North Delhi
(40)
East Delhi
(40)
Con
e ns Findings e
ommendations
wareness La
of awareness about
S in the
ar
et. Needof advertisin
S throu
h different
edias so that
ar
et be
o
es aware.
Custo
ers ull La
of
usto
ers de
and for
S throu
h retail
ar
et.
Need of usin
proper se
entation tar
etin
and
ar
etin
i
ta
ti
s.
Retailersush Retailers not willin
to push
S throu
h their
hannel
Retailers Mar
in
his loyalty with
irtel should be paid
pri
e att ention.
O s La
of O s related to
S Greaterneed of
S related O s in the retail
hannel(e
.
odafones Zoo
oos)
Confusion
oo
any short
odes raises
onfusion a
on
the
usto
ers
S
ards and easy
S should be introdu
ed at a bi
er
level.
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31 | P a g e
JOBS
Job Alert shows highest addition and churn among all services
JOKES AND SHAYARI
SPORTS/CRICKET
Mon t s J n Feb March
pril
Tot l b cr ber , ,
, ,
et ined er
ro
revio! "
# ont $
- 20,% %
22,
0,244
Uniq e er to ll
# ont $ 12, & ' & 12, & ' & 12, & ' & 12, & ' &
Additiono(
new
er
) e Mont $ 9, 28 15,105
%
C $ rn er - 8, % 48 7,503 7,855
Mon ths Jan Feb March
pril
Tot l
b cribe r 13 ,442 12,739 16,300 13,564
et inedU er (
ro # 0 revoi
# ont $
- 10,209 10,586 13,126
Uniq
eU er (
or
1 ll ont 2 "7,175 7,175 7,175 7,175
Additiono(
new
! " er ")
e Mont $ 2,530 5,714 438
3 $ rn er - 3,233 2,153 3,174
Mon ths Jan Feb March
pril
Tot1 l 4 ! b " criber " 9,267 10,364 14,124 11,530
5 et1 inedU " er "
ro revoi ! "
ont2
- 7,247 7,344 11,109
Uniq! eU " er " to
1 ll ont 2 "4,122 4,122 4,122 4,122
Additiono
new
! " er "6 1 "
e Mont 2 3,117 6,780 421
7 2 ! rn ! " er " - 2,020 3,020 3,015
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33 | P a g e
EDUCATION
As evident from the findings, most of the subscribers were having sound educational background with
maximum being graduates & above.
S T U thV
T W X
S T Y thV
Y W X
S raduate
& AboveV
a b X
c d e c f g h i p q r d h p
s t
u
th v
t
w
x
s t yth v
t
x
s raduate
& Above v
x
g r h e r
S T U th V
T U X
S T Yth V
Y Y X
s raduate
& Above v
x
g p
S T U th V
T b X
S T Y th V
Y X
s raduate
& Above v
u x
r p
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35 | P a g e
My Airtel My Offer (MAMO)
MAMO is a customized offering of Airtel where customer is informed about the offers according to their
needs. Customer needs to call 12131 for MAMo where he gets customised offers related to four services
viz. Recharge, Validity, Call Rates and Value Added Services.
Two new SMS alert offers were introduced and uploaded on MAMO portal for targeted promotion.
Total Customer Base Allocated = 10,41,446
Ty
of
stom rs
o
ff r Bas Allo at d
Existing Us rs
ASNJF Ne j k P l idl ndJokek m
reen o , n
ASJLF Joke k P l id l ndLovem
ree
,o
N w Us rs
ANNJF Ne P id ndJoke ree , z , o
ANJLF Joke k P l id l ndLovem
ree { , , o
Existing Us | rs
} ~ s ri
|d
} |rv i
|Allo at | d Off| r No.of ~ stom | rs
Ne
ASJLF 36, 34
Love ASNJF 8, 4
Other Servi e ASNJF 81, 18
N | w Us | rs
~ stom | r at | gor i | sAl lo at | d Off| r No.o f ~ stom | rs
Hi
hP A ( ove SMS/month) ANNJF & ANJLF ( % e h) 3,15,640
Hi
hP P ( 5 nd 42SMSP k er)
ANNJF & ANJLF (50% e h)6,00,000 (3,00,000
rome h te
or
)
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36 | P a g e
Recommendations:
Key Recommendations (Based on the Finding):
Some other inference Based Recommendations:
Some bundled offers can be introduced such as News Alert with Stock Alert. Airtel should think of some new utility based services apart from existing services such as
Examination Alerts, Traffic Alerts, Locator (SingTel).
Cross Product Promotion can be used such as Devotion Alerts to Devotion Hello Tunescustomers etc.
Fin ings R c mm n
i ns
etail Channel still not a medium
or promotion and
sales o
AS
Need o
tilisin
the or
anised retail in a more
e
ective way
Demo
raphic Se
mentation on the basis o
A
e ender
and eli
ion
Can be used
or tar
etin
speci
ic content such as
reli
ion based or a
e speci
ic.
12 lacs people on multiple
AS
1) Can introduce some combo o
ers
a
imum
AS SMS Alert) subscriber clustered in
monthly decrem ent bracket o
60 and above.
Daily Allocation
or promotion o
AS consists o
customers above 60 decrement
Around 39,000 subscribers are persistently on some or
the other SMS alert service
ro the last si
months
Need o
incentivi in
such custmers such as
ree one
month subscription
or their retention.
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BIBLIOGRAPHY & REFERENCES:
y Websites of Airtel (www.airtel.in)y DOT websitey www.telecomtiger.comy www.gsmworld.comy www.bloomberg.comy www.telecomwatch.comy www.cellebrum.comy www.secondrepublic.iny Reports from TRAI, COAI, AUSPI, BDA Analysis.y Report by IAMAI & eTechnology Group@IMRB on Mobile Value Added Services in India.
Published in August 2008.