sandeep and richa

8/7/2019 sandeep and richa

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MOS REPORT ON THETELECOMMUNICATION INDUSTRY

(VODAFONE, AIRTEL, RELIANCE)

ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude to Prof.meenakshi

gujrali for giving us an opportunity to make this project. My sincere



thanks to him for his total involvement and dedication in

accomplishing this time bound exercise. It was a real learning

experience making this project.

.

Special thanks to the company executives and the enployees, without

whose guidance and support this project work would not have been a

success.

TABLE OF CONTENTS

1) INTRODUCTION



2) Indian Telecommunication Industry

3) BHARTI AIRTEL

MARKETING MIX

SWOT ANALYSIS

4) VODAFONE

MARKETING MIX

SWOT ANALYSIS

5) RELIANCE

MARKETING MIX

SWOT ANALYSIS

6) COMPARITIVE STUDY OF THE INDUSTRY

COMPARISON ON THE BASIS OF 7 P’S

Airtel, Vodafone have 3G edge over other players

7) CONCLUSION

8) RECOMMENDATIONS

INTRODUCTION



Telecom in the real sense means transfer of information between two distant pointsin space. The popular meaning of telecom always involves electrical signals andnowadays people exclude postal or any other raw telecommunication methods fromits meaning.

The characteristics of the Telecom Industry are:

> The proliferation of attractive promotional offers that makecustomers keep switching their loyalties.> Numerous innovations due to which the penetration of each of theseinnovations and promotional offers is not guaranteed.

The largest sector of the telecommunications industry continues to be madeup of wired telecommunications carriers. Establishments in this sector

mainly provide telecommunications services via wires and cables thatconnect customers’ premises to central offices maintained bytelecommunications companies.

Changes in technology and regulation now allow cable television providersto compete directly with telephone companies. An important change hasbeen the rapid increase in two-way communications capacity.

Although the telecommunications industry employs workers in manydifferent occupations, 56 percent of all workers are employed in either

http://en.wikipedia.org/wiki/Telecom

http://en.wikipedia.org/wiki/Electrical_signal

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/wiki/Telecom

http://en.wikipedia.org/wiki/Electrical_signal

http://en.wikipedia.org/wiki/Telecommunication



installation, maintenance, and repair occupations or office andadministrative support occupations.

Greater demand for an increasing number of telecommunications services

will cause overall employment in the telecommunications industry toincrease. In addition, many job opportunities will result from the need toreplace a large number of workers who are expected to retire in the comingdecade.

Average weekly earnings of nonsupervisory workers in thetelecommunications industry were $963 in 2006, significantly higher thanaverage earnings of $579 in private industry.

Improvements in the telecommunications networks are expected toresult in greater demand by people and businesses for ever wider ranges of telecommunications services.Residences will demand more services such as high-speed Internet, video-on-demand, and wireless and Internet-based telephone services. Businesses willdemand faster and improved telecommunications systems to conduct electroniccommerce, ordering, record keeping, and video conferencing. These servicesare being supplied increasingly by all the competing sectors of the industry, asthe lines become blurred between cable and satellite TV, wireless, and wirelinetelecommunications systems.



Indian Telecommunication Industry

Indian telecommunication Industry is one of the fastest growing telecom market inthe world. The mobile sector has grown from around 10 million subscribers in

2002 to reach 150 million by early 2007 registering an average growth of over

90% yoy. The two major reasons that have fuelled this growth are low tariffscoupled with falling handset prices.The Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP and currently the Indian Telecommunication market isvalued at around $100 billion (Rupees 400,000 crore). Two telecom playersdominate this market - Bharti Airtel with 27% market share and RelianceCommunication with 20% along with other players like BSNL (Bharat Sanchar Nigam Limited) and AT&T.

Evolution of the industry-Important Milestones

History of Indian Telecommunications

http://trak.in/Tags/Business/2007/05/03/indian-telecom-industry-surprised-by-reliance-offers/

http://trak.in/Tags/Business/2007/05/03/indian-telecom-industry-surprised-by-reliance-offers/



Major Players

There are three types of players in telecom services:• -State owned companies (BSNL and MTNL)

• -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,Escotel, Idea Cellular, BPL Mobile, Spice Communications)

The leading cellular service providers have the following number of

subscribers:

Service Provider No. of CDMA Subscribers No. of GSM Subscribers

Reliance 2.75 crores 38.76 lakhs

Tata 1.07 crores

Airtel 3.37 crores

MTNL 24.98 lakhs

BSNL 2.44 crores

Hutch 2.44 crores

Idea 1.3 crores

Spice 25.56 lakhs

BPL 10.62 lakhs

Aircel 48 lakhs

Bharti Airtel has the largest customer base with 31% market share, followed byHutch and BSNL with each holding 22% market share.



BHARTI AIRTEL

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The BhartiGroup, has a diverse business portfolio and has created global brands in thetelecommunication sector. It has successfully launched an international venture with ELRothschild Group to export fresh agri products exclusively to markets in Europe andUSA and has launched Bharti AXA Life Insurance Company Ltd under a joint venturewith AXA, world leader in financial protection and wealth management. Bharti Airtel Limited is India’s largest integrated and the first private telecom servicesprovider with a footprint in all the 23 telecom circles. Bharti Airtel since its inceptionhas 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 Airtelhave been structured into three individual strategic business units (SBU’s) - mobileservices, broadband & telephone services (B&T) & enterprise services. The mobilebusiness provides mobile & fixed wireless services using GSM technology across 23telecom circles while the B&T business offers broadband & telephone services in 94cities. The Enterprise services provide end-to-end telecom solutions to corporatecustomers and national & international long distance services to carriers. All theseservices are provided under the Airtel brand.

Products and Services:

Mobile

Prepaid

Postpaid

Home Phones

Fixed Line

Fixed Wireless Phone

Broadband & Internet

BlackBerry

BlackBerry Internet Services 2.0



Email on the go

Window Mobile 5.0

Airtel Easy Mail

Calling Cards

International Calling Cards

Airtel Call Home

Airtel World Calling Cards

Wireless Internet

Data Card

USB Modem

PRICE:

We can choose the tariff plan that suits our usage and our budgetand get a whole bunch of value added services to go with it.

Airtel also Provides a number of special offers to attract thecustomers.

Competitive Pricing.

PLACE:

We can get a new Airtel connection, subscribe to any of the value addedservices and get more information on them, pay bills or get a new handsetby Visiting the nearest Airtel Relationship Centre which are located in:-

Global Network : Airtel offers an unmatched calling experience withouradvanced Fiber Optic network SMW-4 and i2i around the entire globewith and one of the most reliable networks in India, covering more than4000 towns . This seamless global network assures instant connectivity toanywhere in India, anytime.



PROMOTION:

ADVERTISING: A story to tell; a cast to die for -Airtel continues toromance the audience conveying different messages tied by one

thread breaking barriers. Airtel KBC Promotion.

Airtel promotion at SGS Mall & Mariplex

Events like JP Morgan Indian conference.

Billboards and hoardinds.

Mass communication media such as the press and the radio.

Celebrity endorsements (Vidya Balan and R Madhavan). In the year 2000, AirTel formulated an advertising campaign which wasarguably the first of its kinds from the cellular service sector. AirTelroped in famous movie actors Shahrukh Khan and Karishma Kapoor

as brand ambassadors for its prepaid service “Magic”. Bharti Tele-Ventures adopted celebrity endorsement as its chief

promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market.

loyalty rewards.D

Discount coupons.

In February 2003, AirTel launched a Valentine's Day PromotionContest, which was targeted primarily at youth celebratingValentine's Day...

collaboration with premium phone brands such as Blackberry and

iphone joint promotions .example that with Pepsi

PEOPLE:

The people associated with Idea have qualities such as EthicalTruthfulPrincipledTransparentUprightRespectful

They are disciplined

Result oriented and commitment.

Here are some ways in which people add value to an experience, aspart of the marketing mix - training, personal selling and customer service

PROCESSES:

Deliver value through all elements of the marketing mix.

http://www.thehindubusinessline.com/cgi-bin/bl.pl?mainclass=11&subclass=600


http://www.thehindubusinessline.com/catalyst/2008/08/28/stories/2008082850090300.htm


http://www.thehindubusinessline.com/catalyst/2008/08/28/stories/2008082850090300.htm



Customers are retained, and other serves or products areextended and marked to them.

The businesses at Bharti Airtel have been structured intothree individual strategic business units (SBU’s) - mobile services,telemedia services (ATS) & enterprise services. The mobile services

group provides GSM mobile services across India in 23 telecomcircles, while the ATS business group provides broadband &telephone services in 94 cities. The Enterprise services group hastwo sub-units - carriers (long distance services) and services tocorporates. All these services are provided under the Airtel brand.

PHYSICAL EVIDENCE:

Internet/web pages:Website contains the details of all processesofferings, schemes,upcoming events,past records,etc.

Packaging Paperwork (such as invoices, tickets and despatch notes)

Brochures

Signage (such as those aircrafts and vehicles).

Business cards.

The building itself (such as prestigious offices or scenicheadquarters)

Mailboxes and many others.

SWOT ANALYSIS

STRENGTHS:

Bharti Airtel has more than 65 million customers (July 2008). It is thelargest cellular provider in India, and also supplies broadband and telephoneservices - as well as many other telecommunications services to bothdomestic and corporate customers.

Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and SingTel, with whom they hold a strategic alliance. This means that the businesshas access to knowledge and technology from other parts of thetelecommunications world.

The company has covered the entire Indian nation with its network. Thishas underpinned its large and rising customer base.

WEAKNESSES:

An often cited original weakness is that when the business was started bySunil Bharti Mittal over 15 years ago, the business has little knowledge andexperience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.



Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers areimportant if your company wishes to provide wide coverage nationally.

The fact that the Airtel has not pulled off a deal with South Africa's MTNcould signal the lack of any real emerging market investment opportunity

for the business once the Indian market has become mature.

OPPORTUNITIES:

The company possesses a customized version of the Google search enginewhich will enhance broadband services to customers. The tie-up withGoogle can only enhance the Airtel brand, and also provides advertisingopportunities in Indian for Google.

Global telecommunications and new technology brands see Airtel as a keystrategic player in the Indian market. The new iPhone will be launched in

India via an Airtel distributorship. Another strategic partnership is held withBlackBerry Wireless Solutions.

Despite being forced to outsource much of its technical operations in theearly days, this allowed Airtel to work from its own blank sheet of paper,and to question industry approaches and practices - for example replacingthe Revenue-Per-Customer model with a Revenue-Per-Minute model whichis better suited to India, as the company moved into small and remotevillages and towns.

The company is investing in its operation in 120,000 to 160,000 smallvillages every year. It sees that less well-off consumers may only be able toafford a few tens of Rupees per call, and also so that the business benefits

are scalable - using its 'Matchbox' strategy. Bharti Airtel is embarking on another joint venture with Vodafone Essar

and Idea Cellular to create a new independent tower company called IndusTowers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin thecompany's long-term strategy.

THREATS:

Airtel and Vodafone seem to be having an on/off relationship. Vodafone

which owned a 5.6% stake in the Airtel business sold it back to Airtel, andinstead invested in its rival Hutchison Essar. Knowledge and technologypreviously available to Airtel now moves into the hands of one of itscompetitors.

Bharti Airtel could also be the target for the takeover vision of other globaltelecommunications players that wish to move into the Indian market.

The quickly changing pace of the global telecommunications industry couldtempt Airtel to go along the acquisition trail which may make it vulnerableif the world goes into recession. Perhaps this was an impact upon thedecision not to proceed with talks about the potential purchase of SouthAfrica's MTN in May 2008. This opened the door for talks between



Reliance Communication's Anil Ambani and MTN, allowing a competingInidan industrialist to invest in the new emerging Africantelecommunications market.

VODAFONE

• Vodafone Group Plc is the world's leading mobile telecommunicationscompany, with a significant presence in Europe, the Middle East, Africa,Asia Pacific and the United States through the Company's subsidiaryundertakings, joint ventures, associated undertakings and investments.



• Formed in 1984 as a subsidiary of Racal Electronics Plc.and becameindependent in sept,1991 at which its name was changed to VodafoneGroup Plc .The group,s subsidiaries operate under the brand nameVodafone.

• Vodafone in India-Vodaphone completed the acquisition of Hutchison

Essar in may 2007 iin $11.1billion ,and formally named Vodafone Essar injuly 2007 and launched in India in sept,2007.

• Company operates 16 out of 23 circles across the country,and is currentlythe 2nd largest GSM service operator with a subscriber base of 34.1million .Over years Vodafone Essar,under the Hutch brand has beennamed the ‘Most respected telecom company,’the ‘Best mobile services inthe country,’and the ‘Most creative and most effective advertiser of theyear’.

PRODUCTS & SERVICES:

Postpaid connections

Prepaid connections

Magic Box handsets

World calling cards

Vodafone PCO

Home calling cards

Vodafone handyphone

Tunes and downloads

Entertainment

Call management services

Finance ,astrology, travel, sports

Dial in services

News and updates

Mail and messaging services

PRICE:

You can choose the tariff plan that suits your usage and your budget and geta whole bunch of value added services to go with it. Starting Prepaid fromRs.99 and Postpaid from Rs.149.

Unlike other players this also goes for competitive pricing.

PLACE:

Vodafone Mobile Stores are currently only available in Rajasthan, Mumbai,Gujarat, Chennai, Karnataka, Kolkata, Andhra Pradesh, Delhi, Haryana, Keralaand Maharashtra & Goa (except Mumbai)

http://www.vodafone.in/existingusers/Products/handsets/Pages/Handsets_home.aspx

http://www.vodafone.in/existingusers/services/Pages/entertainment.aspx

http://www.vodafone.in/existingusers/services/Pages/finance.aspx






Small in size, so you´ll find them in nooks & corners across the city. Andbig in service, so you can buy a new connection, reactivate an old one, pay your bills and much more.

PROMOTION:

In the past pug was used to make that seamless transition from brandOrange to Hutch ,now pug is used as a link between old brand and the newone ,this time Round as well.The music in the back ground that is theoriginal “You And I “ jingle was tweaked a little to make it sound moreyoung,energetic,fresh and happy…to signify a new beginning.These are thevalues that the brand Vodafone stands for internationally.Scoring high bothin brand recall and awareness,Vodafone TV commercial topped Mint’s Addranking for October.

Festivals and special occasions were times when cellular service providers

offered a range of schemes on ground promotional activities, the youthbecomes more aware of our fantastic value proposition

Hutch implemented the celebrity endorsement strategy partially, relyingprimarily on its creative advertising for the promotion of its brand.

Television is the major source for promotion

Hoardings and banners

It celebrates a Karakoke festival this valentine in Hyderabad.

Vodafone customers can now get Traffic Updates and Railway Informationon mobile

Offers gifts with every new connection.

Above the line marketing:

Advertising on TV, on billboards, in magazines and in other mediaoutlets reaches large audiences and spreads the brand image and the message veryeffectively. This is known as above the line promotion

Below the line marketing:

Stores have special offers, promotions and point of sale posters toattract those inside the stores to buy.

Vodafone's stores, its products and its staff all project the brand image.

Vodafone actively develops good public relations by sending pressreleases to national newspapers and magazines to explain new productsand ideas

PHYSICAL EVIDENCE:

Internet/web pages:Website contains the details of all processes offerings,schemes,upcoming events,past records,etc.

Packaging

Availbale everywhere

http://www.thetimes100.co.uk/glossary--effectively-1477.php

http://www.thetimes100.co.uk/glossary--point-sale-627.php

http://www.thetimes100.co.uk/glossary--public-relations-851.php

http://www.thetimes100.co.uk/glossary--press-releases-1747.php


http://www.thetimes100.co.uk/glossary--effectively-1477.php







PEOPLE:

Vodafone employed approximately 72,000 people worldwide during the

2008’ Recruit, develop and retain the most talented, motivated people’

Provide a productive and safe working environment, treating people withrespect and offering attractive performance based incentives andopportunities.

They are disciplined

Result oriented and commitment

Here are some ways in which people add value to an experience, as part of the marketing mix - training, personal selling and customer service.

PROCESSES:

Over the years, Vodafone Essar, under the Hutch brand, has been named the'Most Respected Telecom Company', the 'Best Mobile Service in thecountry' and the 'Most Creative and Most Effective Advertiser of the Year'.

The Essar Group is a diversified business corporation with interestsspanning the manufacturing and service sectors like Steel, Energy, Power,Communications, Shipping & Logistics and Construction.

\



SWOT ANALYSIS

STRENGTHS:

Innovation

The high-end loyal customers.

Its communication.

Network-global company,available in 5 continents,no problem with

national and international roaming. Distribution-stores at a very approachable distance.

Strategic alliances with nokia and seimens-help it to expand speedily.

Recent deal with Chinese handset manufacturer ZTE,may also meanthat it will get low cost handsets to India,enabling it to gain moreground in the country.

Flexibity.

WEAKNESSES:

Customer care:they are not updated with the changes in the company for the last 3 mts.The management is through U.K.,they are not informedabout the schemes.

Small retailers are not happy as they can sell just few selectednumbers.they are not getting much benefits,as the customer cancontinue with same no. even if switching from prepaid to postpaid.

There are certain schemes available only at company offices and not atfranchise offices,hence it become problem for customers as companyoffices are limited.

OPPORTUNITIES:

Internet connections.

Pco services

Bundling

THREATS:

Lack of infrastructure in he country



As per a recent report of TRAI,the country will require about 350,000telecom towers by december2010,as against 125000 in 2007,calling for a 180%appreciation in facilities! Vodafone task to gain a hold over 25% market share by2012,also appears daunting as per Macquarie Research. It says its bit unrealisticwithout help of mergers and acquisitions.

Potential is set to intensify. The government has received about 575applicants to start telecom services in 23 regions. Thus new entrants mean lower tariffs, while existing players will loose some subscribers to new players.

RELIANCE

Reliance Communications (formerly Reliance Infocomm), along with RelianceTelecom andFlag Telecom, is part of Reliance Communications Ventures(RCoVL). According to National Stock Exchange data, Anil Ambani controls66.75 per cent of the company, which accounts for more than 1.36 billion shares of the company.[1] It is an Indian telecommunications company. It is the flagshipcompany 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.

Reliance’s core competence lies in its ability to conceptualise and

implement multi-billion dollar projects

Reliance is the leading Indian group to think, and act, truly world scaleand world class

Reliance’s mantra is innovation in thinking, and efficiency in execution -

turning dreams into reality

PRODUCTS & SERVICES:

Mobile Pre-paid

Mobile Post paid

VAS

o SMS / MMSo Ring Tones / Caller Tunes / Customized tones

o Call forwarding / waiting / conferencing

R Mobile World - Mobile Portal with Internet Community

Serviceso Content download – songs, posters, wallpaper, screensaver

o Interactive – games, internet –web sites

o Information – Astrology, weather, news, stocks, flight & railway

o Community – friends, messenger / chat

Data Services (Internet on move for laptops)

http://en.wikipedia.org/wiki/Flag_Telecom

http://en.wikipedia.org/wiki/Reliance_Communications#cite_note-0%23cite_note-0

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/Reliance_Energy

http://en.wikipedia.org/wiki/Reliance_Capital

http://en.wikipedia.org/wiki/Anil_Ambani


http://en.wikipedia.org/wiki/CDMA2000_1x

http://www.reliancemobileworld.co.in/

http://en.wikipedia.org/wiki/Flag_Telecom

http://en.wikipedia.org/wiki/Reliance_Communications#cite_note-0%23cite_note-0

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/Reliance_Energy

http://en.wikipedia.org/wiki/Reliance_Capital



http://en.wikipedia.org/wiki/CDMA2000_1x



Blackberry – Smart Phone Serviceo Email Service, messaging and Web browsing

o Secure asccess to company specific files/info

o Access to presentation, docs, worksheets and multimedia files

o Stock trading, Blackberry for prepaid, Boomberg Professional

Services

Otherso Fixed Wireless – CDMA based Fixed phone

o International Calling Cards

PRICE:

Its pricing strategy is completely market based..They are followers and keepprices competitive with rivals like Airtel or Vodafone.

They offer lot of discounts and schemes to the customers to retain them.

The Reliance Global Calling Card is available in 5 denominations, prepaidReliance STD Calling Card offers very affordable rates for local andnational long distance (NLD) calls.

"The pricing system is in line with Dhirubhai Ambani's dream and directiveof making phone calls affordable for every Indian.Reliance Infocomm challenged conventional cost structures in the

telecommunications industry.

PLACE:

Besides a wide range of phones and associated services, we find a wholearray of digital offerings at the Broadband Centre @ Reliance World. With241 Reliance World outlets across 105 cities in the country, you are sure tofind one in your vicinity.



PROMOTION:

Reliance Infocomm aggressively promoted its limited mobility telecomservice byparticipating in or having partnerships at various shopping malls, book fairs,community functions, kiosks, letting people have a mobile phoneconnection.

To build the customer base Reliance Infocomm went where the customerswere going – to grocery stores, gas stations, music stores, departmentalstores, street side vendors, bookshops and even hotels and restaurants.

Retailers like FabMall, PlanetM, HP,Music World and Timex started to

bundle their products along with Reliance India Mobile. Phones weredistributed at discount prices with many products the consumer bought.Additionally the company conducted nationwide product demonstrationsand announced that the Pioneer Scheme would be a limited period offer,which further enhanced the interest of the consumers.

For marketing promotions Reliance again used unconventional strategies.The mobile service was promoted aggressively through every marketingchannel. Huge signs were put up in front of every gas station and officespace in addition to the prime spots booked across the nation.

Advertising – Educating Masses and Evoking Passions:

The company offered a Rs.850 (US$18.9) discount on initial payments onsubscription per connection.

Dhirubhai Ambani Entrepreneurship Programme – A New Way to

Market:

SALES AND MARKETING STRATEGY:

Reliance Infocomm radically redefined marketing models in India and engagedhomesand enterprises directly by having the ability to deliver physical and virtualproducts andservices as part of one system. Reliance Infocomm through its aggressive,



unconventional tactics changed the rules of the mobile marketing game.

PHYSICAL EVIDANCE:

Retail outlets in prime commercial and residential areas.

At the WebWorlds the customer could interface directly with the companyofficials, see, touch and try the products and then buy.

Reliance Infocomm utilized every media vehicle very effectively.

Internet/web pages:Website contains the details of all processes offerings,schemes,upcoming events,past records,etc.

Packaging

PEOPLE:

Young committed team - over 20,000 people, with an average age of just 35

years. Attracting and retaining the best people, and nurturing the ‘intrapreneurial’

spirit

The company is open for Engineers, MBAs, Telecom network analysts andIT specialists. Innovation, initiation, leadership, problem solving approach,etc. are the qualities the company looks for. Freshers also haveopportunities to work with the company.

Reliance Communications believes in hiring world-class talent andsupporting them with an enabling organisational framework.

They have already invested in 50,000 person training days and state-of-the-

art e-learning facilities. Several progressive and employee friendly HR practices in e-HR, Employee

Self Service, Performance Management System, 360° Feedback andLeadership Development initiatives.

PROCESSES:

Deliver value through all elements of the marketing mix.

Customers are retained, and other serves or products are extended and markedto them.

It has established a pan-India, next-generation, integrated (wireless andwireline), convergent (voice, data and video) digital network. The network iscapable of supporting best-of-class services that span the entire infocom valuechain, covering over 20,000 towns and 450,000 villages.

Reliance Communications owns and operates the world's largest next-generation IP-enabled connectivity infrastructure, comprising over 165,000kilometers of fiber optic cable systems in India, the United states, Europe, theMiddle East, and the Asia Pacific region.

MARKETING STRATEGY:



Capitalize on volume

Take mobile service to masses

Not only expand market share but expand the market as whole

Kill competition with aggressive pricing strategies

Capitalize on brand “Reliance”

Counter GSM handset advantage with low price CDMA hands bundling.

Leverage inherent data capabilities of CDMA tech

Provide a strong user experience – Focus on VAS and New Services.

SWOT ANALYSIS

STRENGTHS There is much strength that Reliance Infocomm can count on and boast off.



The state-of-art technology Reliance Infocomm is offering-CDMAtechnology.

The strong subscriber base over 10million subscriber's in their kitty.

Mobile with in the reach of common man. Affordable schemes.

Comprehensive Network-The strong back bone high capacitynetwork(terabit capacity) supported by fiber optic cables laid all over thecountry(60,000km)

Offering Value Added services to it's customer's almost free of cost or withnominal charges.

Reliance Infocomm was the first service provider to introduce financeoption on handsets.

Value Added Services: First Call Center of 2,000 seats in Mumbai

Aggressive roll out to capture dominant market share and create an entrybarrier

CDMA 1x Technology

WEAKNESSES Market perception of relatively

Customer unfriendly (feeling of mistrust), CDMA service lack premium.

Customer base.

OPPORTUNITIES: GSM spectrum allocation

Leverage dual technology for capacity/add. services

Leverage content and media presence (adlabs and zapak) 3G, Mobile TV etc.

THREATS: CDMA as technology losing ground

Unattractive CDMA handset story

Entry of strong players –Vodaphone

New technologies – Wimax, Skype phone etc

Coalition between – GSM players



COMPARITIVE STUDY OF THE INDUSTRY

COMPARISON ON THE BASIS OF 7 P’S

7 P’S

COMPANIES

AIRTEL VODAFONE RELIANCE

PRODUCT Mobile

Home Phones

Broadband &Internet

BlackBerry

Email

Calling Cards

WirelessInternet

Mobile

Magic Boxhandsets

Vodafone PCO

Tunes anddownloads

Entertainment

Call managementservices

Finance ,astrology,travel, sports

Dial in services

News and updates

Mail and

messaging services

Mobile

VAS

R MobileWorld

DataServices

Blackberry

FixedWireless

PRICE tariff plan

Competitive Pricing

valueadded services

specialoffers

Tariff plans

Value AddedServices

Competitive pricing.

Marketbased

Discountsand schemes

GlobalCalling Card











PLACE VodafoneMobile Stores,nooks & cornersacross the city

Small in size

Rajasthan,Mumbai, Gujarat,Chennai,Karnataka,Kolkata, AndhraPradesh, Delhi,Haryana, Keralaand Maharashtra& Goa

BroadbandCentre @Reliance World.

With 241Reliance World

outlets across105 cities in thecountry

PROMOTION ADVERTISING

Airtel KBCPromotion

Mall &Mariplex

conference

Billboards andhoardinds

Masscommunication

Celebrityendorsements

PromotionContest

Discount coupons

loyalty rewards

Jingle

Festivals andspecial occasions

Celebrityendorsementstrategy

Television

Hoardings andbanners

Karakoke festival

Traffic Updates

Offers gifts

Billboards, inmagazines

Above the linepromotion

Point of sale posters

Develops goodpublic relations

Shopping malls,book fairs

Grocery stores,gas stations,music stores

Discount prices

Pioneer Scheme

unconventionalstrategies

Huge signs

Advertising

DhirubhaiAmbaniEntrepreneurship Programme

PEOPLE TruthfulPrincipledTransparentUprightRespectful

Theyare disciplined

Result oriented andcommitde.

72,000people worldwide

Recruit,develop andretain the mosttalented,motivatedpeople’

safe working

Youngcommitted team- over 20,000people

best people

Engineers,MBAs,Telecomnetwork








environment

disciplined

Resultoriented andcommitment

training,personal sellingand customer service

analysts and IT

world-classtalent

50,000 persontraining days

employeefriendly HR practices

PHYSICAL

EVIDENCE Internet/webpages

Paperwork (suchas invoices, ticketsand despatch notes)

Brochures Signage (such asthose aircrafts andvehicles).

Business cards.

The building itself (such as prestigiousoffices or scenicheadquarters)

Mailboxes

Events

Internet/webpages

Packaging

Availbale

everywhere

Retailoutlets in primecommercial andresidential areas

interface

directly media

vehicle

Internet/web pages

Packaging

PROCESS Al elements of the marketing mix

mobileservices,telemedia services(ATS) &enterpriseservices

23 telecomcircles

two sub-units -carriers

Interestsspanning themanufacturing and servicesectors likeSteel,Energy,Power,Communications, Shipping

& LogisticsandConstruction.

elementsof the marketingmix

pan-India,next-generation,integrated(wireless andwireline),convergent(voice, data and

video) digitalnetwork

world'slargest next-generation IP-enabledconnectivityinfrastructure



Airtel, Vodafone have 3G edge over other players

Vodafone’s expertise in 3G and Bharti Airtel’s partnership with SingTel may themtake lead over other operators. While Bharti Airtel will roll out its 3G services inSri Lanka by year-end, thus having a six-month lead to test its services, Vodafonewill look to bring its global 3G expertise to India.

While Bharti Airtel has already launched 3G in Seychelles, Jersey and Geurnsey,Vodafone is credited with rolling out 3G services in global markets like the UK,Germany, New Zealand, Australia, Spain and others.Bharti Airtel will also have a six-month advantage of testing its 3G services in theregion as it rolls out services in Sri Lanka by December, 2008. Bharti Airtel plansto rollout 3G in India by mid-2009 only. Both Vodafone and Airtel may importtheir successful products and applications to India.In contrast, Vodafone marketing head Harit Nagpal said that Vodafone has alreadyrolled out 3G services in Egypt, parts of Africa and Turkeymarkets similar toIndia. “With a global subscriber base of 280 million, Vodafone’s 3G expertise isunmatched. We have the capability of handling migration of customers from 2G to3G in markets like Egypt and Turkey. We will also see such migration in India.Moreover a strong leadership presence in metro cities, will give us an advantageover others,” he said.

Interestingly, Vodafone and Bharti Airtel are competitors in India, but this has not



stopped the companies from extending their alliance to markets abroad. JerseyAirtel and Guernsey Airtel, subsidiaries of Bharti Enterprises, last year entered intoan agreement with Vodafone to jointly offer telecom services in Jersey andGuernsey (islands in Europe, close to UK). (Bharti was granted licenses to operate2G and 3G mobile services in Jersey and Guernsey in 2006.)

While the two rivals have partnered globally, they may not replicate the samemodel in India. Meanwhile, Bharti Airtel and Vodafone will begin selling the newgeneration 3G-enabled iPhone from August 22. This will also give them anadditional edge over other operators.

Bharti and Vodafone, which account for a significant number of the high ARPU(average revenue per user) subscribers in India, will have a further edge as a largesegment of their high end users already have 3G compatible handsets.

Interestingly, the move to partner Airtel and Vodafone marks a major shift in

Apple’s global strategy of ‘one country-one operator’. With India emerging as thefastest-growing cellular market, Apple wanted to maximize its exposure here asAirtel and Vodafone have a combined subscriber base of over 120 million.

CONCLUSION

Service sector is one of the most significant sectors of the Indian economy,contributing nearly 55% to the GDP in 2007–08.The Indian telecom industry continued its growth momentum for another consecutive quarter with the overall sector registering a modest revenue growth of 25% during AMJ08 compared with AMJ07.The total number of telecom subscribers in the country touched 300m at the end of March 2008, of which 261.07m were mobile subscribers and 39.42m were

fixed/landline subscribers.The wire-line subscriber base has shown marginal improvement in JFM08 as

compared to last four quarters, as subscriber base declined in each of thesesquarters. There were 11.09mInternet subscribers approximately at the end of March 2008 as compared to 10.36

million at the end of December 2007 registering a growth of 7.08%. This growthrate is slightly less than the growth rate of 7.64% at the end of December 2007.Airtel remained the market leader with 32.16% GSM market share, adding 6.82msubscribers during JFM08. Vodafone, with 22.09% GSM market share, was thesecond runner up, adding 4.27m subscribers in JFM08. BSNL was at third place at118.79% market share, Idea with 12.45% market share and Aircel at 5.51% market



share. Meanwhile, in the CDMA segment, Reliance Communications is still theundisputed leader with 56.71% market share followed by TTSL at 35.58%. Thewire-line segment is still led by PSUs. BSNL dominance in the fixed line remainedintact with a market share of 82%, followed by MTNL at 9%. BSNL, with a shareof 50.82% was the leading ISP followed by MTNL at 17.12% in JFM08.

Airtel’s revenue is estimated to touch Rs77.6 billion in AMJ08 and may grow at38% from AMJ07. Reliance is expected to ramp up a revenue to Rs36.5 billion. Interms of profits, Bharti Airtel is likely to be the leader with EBDITA and PAT atRs32.59 billion and Rs17.23 billion in AMJ08. As per Cygnus estimates, theIndian telecom industry is expected to maintain the growth trajectory in the AMJ08quarter as well, with top-line growth of 25%.

RECOMMENDATIONS

The market is also very much competitive, all the players are keen toincrease the market share, so the prices are getting slashed. The currentplayers in the market are :Reliance Infocomm

Bharati Telecom (AirTel)BSNLTata TeleserviceSpice TelecomHutchison / Orange

Players with stronger brand and financial back up will make the futureprofit.Indian mobile operators offerings are segmented in two broad categoriesPre-paid and Post-paid. Although mobile market is growing positively, the



Post-paid market is declining and Pre-paid market is increasing by leapsand bounds.SO the need of the hour is:Adequate marketing research orientationUpward communication

Sufficient relationship focusAdequate service recovery Service Standards - having right standard and design,translate accurately customers' service expectations into specifications or guidelines foremployees.Appropriate physical evidence.

Appropriate internal support systems (e.g., recruitment, training,technology, compensation) that enable employees to deliver toservice standards’ .

Efficient HR policies .

Match Supply & Demand capacity .

Good Intermediaries.

Internal Communication -Consistencies between what customersare told the service will be like and the actual service performance .

Integrated services marketing communication.

Effective management of Customer expectation.

No over promisingManagers must also systematically analyze and correct potentialdeficiencies within the organization. Customer perceptions are subjectiveassessments of actual service experiences; customer expectations are thestandards of, or reference points for, performance against which service

experiences are compared. Good marketing strategies should be developed.

As Mobile Telecom service is Remote Service, people dont see any infrastructure of Network, consumers want to see the Front offices /people of the provider. This was realized by Reliance very quickly,they offered the Handset on Mail order basis which didnt work outwell, immediately they started opening retail store which brought lotof success for them, even entering late in the market. AirTel (Bharti),Hutch, Spice offer this presence through the dealer network andselective retail store. But provider direct presence is more valuable.BSNL being the poor customer handler, they are still able to keep

large market share because of their physical presence. Physicalpresence also helps provider to get feedback quickly.

Communication to the consumers play much bigger role than here,the need for mobile communication is much more in Rural India andcities, but the impediments are the cost and learning process.

As the costs of mobile services are coming down, the opportunity inRural India will grow.

In Indian market, Word-of-Mouth is much powerful than any othercommunication, and people follow their families, friends, and socialgroups.



All these can help a mobile telecom company create an efficient sale andmarketing and customer care operations. Using CRM as marketing andcustomer care tools, the telecom companies can differentiate theirservices for different strata of customers. For example profiling and

segmentation of customers open up new marketing opportunities. Withthe help of a good CRM tool, a customer base can be divided intodifferent segments and subsegments. All these can help a mobiletelecom company create an efficient sale and marketing and customercare operations. Using CRM as marketing and customer care tools, thetelecom companies can differentiate their services for different strata of customers. For example profiling and segmentation of customers openup new marketing opportunities. With the help of a good CRM tool, a

customer base can be divided into different segments and subsegments.

sandeep and richa

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