special study project final
TRANSCRIPT
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Special Study ProjectOn
Comparison of Bharti Airtel Ltd.
with the competitors
Submitted to: Prof.Pratik Kanchan
Submitted By:
Janak Patel (2938) & Hiten Maniyar (2920)
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CONTENTS
ACKNOWLEDGEMENT -- 3 PPRREEFFAACCEE ---- 44 EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY ---- 55 OBJECTIVE OF THE STUDY -- 6 RESEARCH METHODOLOGY -- 7 INTRODUCTION -- 9 COMPANY PROFILE -- 13 FINDINGS AND ANALYSIS -- 17 SWOT ANALYSIS -- 27 BCG MATRIX ANALYSIS -- 29 PORTERS FIVE FORCES ANALYSIS -- 3O
CONCLUSION -- 32
RECOMMENDATION -- 33 LIMITATIONS -- 34 BIBLIOGRAPHY -- 35 QUESTIONNAIRE -- 36
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Acknowledgment
We are sincerely thankful to all those people who have been giving us any kind
of assistance in the making of this project report.
We express our gratitude to Mr. Pratik Kanchan who has through his vast
experience and knowledge has been able to guide us, both ably and
successfully towards the completion of the project. We express my gratitude,
B.K.School Of Business Management. We hereby, make most of the
opportunity by expressing my sincerest thanks to all my faculties whose
teachings gave us conceptual understanding and clarity of comprehension,
which ultimately made our job more easy. Credit also goes to all our
classmates whose encouragement kept us in good stead.
Their continuous support has given us the strength and confidence to
complete the project without any difficulty.
Last of all but not the least we would like to acknowledge our gratitude to the
respondents without whom this survey would have been incomplete.
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Preface
The project title Comparison of Bharti Airtel Ltd. With competitors is the
analysis of the big scale sector of Telecom Service Provider. This project
involves services provided by Airtel to its customers. The survey was
conducted to analyze the telecom services prevailing in the current industry
and the improvement that can be made upon it and the differences in service
quality that exists in the market. What the customers preferences are provided
by the Airtel?
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Executive Summary
This report on bharti airtel is done to find out certain objective regarding the
strategic approach adopted by bharti airtel to compete strongly in competitive
telecom market. Airtels marketing strategies are analyzed by using various
models like SWOT, BCG Matrix and Porters Five Forces Model.
The outcome from the various model are properly analyzed to find out the
various aspect like companies position and competitors position in the market.
This report on airtel gives the brief history about the company and marketing
strategies adopted by the company.
SWOT analysis helps to find out the weak points of the company and find out
the way to overcome this problem.
The Opportunities and different strategic options can be used by airtel under
the different market condition.
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Objective of the Study
What marketing strategies the airtel is implementing to defend and
increase the market share.
To find out who are the competitors and market share of the competitors
and what strategies airtel can implement to beat the competitors.
What technological advantages airtel needs to bring in order to achieve
better satisfaction of the customers.
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Research Methodology
Achieving accuracy in any research requires in depth study regarding the
subject. As the prime objective of the project is to compare Airtel with the
existing competitors in the market and the impact Airtel, the research
methodology adopted is basically based on primary data via which the most
recent and accurate piece of first hand information could be collected.
Secondary data has been used to support primary data wherever needed.
Primary data was collected using the following techniques
Questionnaire Method
Direct Interview Method
The main tool used was, the questionnaire method. Further direct interview
method, where a face-to-face formal interview was taken. Lastly observation
method has been continuous with the questionnaire method, as one
continuously observes the surrounding environment he works in.
Procedure of research methodology
# To conduct this research the target population was the mobile users, who
are using GSM technology.
# Target geographic area and Sample size of 110 was taken.
# To these 110 people a questionnaire was given; the questionnaire was a
combination of both open ended and closed ended questions.
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# Some Company Outlets were also interviewed to know their prospective.
Interviews with the managers of GSM service providers were also conducted.
# Finally, the collected data and information was analyzed and compiled to
arrive at the conclusion and recommendations given.
Sources of secondary data
Used to obtain information on, Bhartis history, current issues, policies,
procedures etc, wherever required.
# Internet
# Magazines
# Newspapers
# TRAI press release data
# Bharti Circulars
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Telecom History & Introduction of Airtel
In the early 1990s, the Indian government adopted a new economic policy
aimed at improving India's competitiveness in the global markets and the
rapid growth of exports. Key to achieving these goals was a world-class
telecom infrastructure.
In India, the telecom service areas are divided into four metros (New
Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly
correspond to the states in India. The circles are further classified under
"A," "B" and "C," with the "A" circle being the most attractive and "C" being
the least attractive. The regulatory body at that time the Department of
Telecommunications (DOT) allocated two cellular licenses for each
metro and circle. Thirty-four licenses for GSM900 cellular services were
auctioned to 22 firms in 1995.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
introduced in the Lok Sabha, and the president officially announced the
TRAI ordinance on 25 January 1997. The government decided to set up
TRAI to separate regulatory functions from policy formulation, licensing and
telecom operations. Prior to the creation of TRAI, these functions were the
sole responsibility of the DOT.
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High license fees and excessive bids for the cellular licenses put
tremendous financial burden on the operators, diverting funds away from
network development and enhancements. As a result, by 1999 many
operators failed to pay their license fees and were in danger of having
their licenses withdrawn. In March 1999, a new telecom policy was put in
place (New Telecom Policy [NTP] 1999). Under this new policy, the old
fixed-licensing regime was to be replaced by a revenue- sharing scheme
whereby between 8-12 percent of cellular revenue were to be paid to the
government.
Five companies together bid Rs16.3 billion to bag the licenses for the
fourth operator slots in four metros and 13 circles. Bharti emerged as the
No. 1 bidder with eight new licenses, followed by Escotel with four,
Hutchison with three, and Reliance and Idea cellular with one each. Bharti
and Hutchison have already commenced operations in all the circles while
Idea is set to launch in Delhi. Escotel and Reliance have not made any
headway.
BHARTI, the third cellular operator for Delhi and Mumbai, started services in
March 2001. BSNL, as the third nationwide cellular operator, launched
services in Kolkata and Bihar in January 2002. This was followed by
Tamil Nadu in July 2002. A nationwide launch was scheduled for 2
October 2002. However, this has been postponed until after mid October.
Once BSNL rolls out its service, most telecom circles will have four
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cellular operators. There will be tremendous competitive pressure, which
will result in lower tariffs. Future rate cuts are expected, which will drive
demand, together with falling handset prices and the introduction of prepaid
services.
In the midst of declining interest in technology stocks, Bharti came out with
its long-awaited initial public offering (IPO) in January 2002.
Leveraging on the success of its cellular service, the company got a very
good response from the primary market. The total size of the IPO was 185
million shares at a floor price of Rs10. The issue was oversubscribed by
more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its
investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general
packet radio service (GPRS) in Mumbai. However, large-scale uptake
remains elusive. While both Bharti and Idea have GPRS- enabled
networks, there is caution on their part to launch the service. With hardly
any applications, the success of GPRS remains a question.
There will be more competition, forcing operators to constantly focus on
differentiations to maintain their lead.
The implementation of enhanced networks like 2G will enable operators to
offer data services. This is an opportunity to customize and differentiate
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better. The entry of state-run operators like BSNL and BHARTI means
that prices will no longer be controlled, thus there is less chance of a cartel
being formed.
Network coverage in terms of geographic spread and quality of coverage
is crucial especially for the business subscriber.
The bigger the service provider's national presence, the better it is for
businesses. On the roaming front, signing up with a national operator is
advantageous.
Limited mobility wireless in local-loop services (by fixed network service
providers) will be a disadvantage for cellular operators in the short term.
Consequently, operators need to streamline their customer relation activities
and adopt aggressive subscriber acquisition and retention strategies.
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Company Profile:
Vision:
By 2015 , airtel will be the most loved brand , enriching the lives of millions.
AIR values :
Alive : we are alive to the needs of the customers. We act with passion ,
energy and can do attitude to help our customer and realize their dream.
Inclusive : airtel is for everyone . we champion diversity, recognizing the
breadth and depth of the community we serve.
Respectful : we live the same life as our customers sharing the same joysand the same pains.
Its services sector businesses include mobile operations in Andhra
Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,
Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra
circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In
addition, it also has a fixed-line operations in the states of Madhya
Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and
nationwide broadband and long distance networks.
Bharti has recently launched national long distance services by offering data
transmission services and voice transmission services for calls originating
and terminating on most of India's mobile networks.
The Company is also implementing a submarine cable project
connecting Chennai-Singapore for providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and
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cordless phones. Apart from being the largest manufacturer of telephone
instruments, it is also the first telecom company to export its products to the
USA.
Bharti Tele-Ventures' strategic objective is
to capitalize on the growth opportunities that 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.
The Company has developed the following strategies to achieve its
strategic objective:
The Company has developed the following strategies to achieve its
strategic objective:
Focus on maximizing revenues and margins;
Capture maximum telecommunications revenue potential with minimum
geographical coverage;
Offer multiple telecommunications services to provide customers with a
"one-stop shop" solution;
Position itself to tap data transmission opportunities and offer advanced
mobile data services;
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Focus on satisfying and retaining customers by ensuring high level of
customer satisfaction
Leverage strengths of its strategic and financial partners
Emphasize on human resource development to achieve operational
efficiencies.
Bharti Tele-Ventures current businesses include -
Mobile services
Fixed-line
Enterprise Services
Direct To Home (DTH) Services
Competitive Strengths
Bharti Tele-Ventures believes that the following elements will
contribute to the Company's success as an integrated
telecommunication services provider in India and will provide the Company
with a solid foundation to execute its business strategy:
Nationwide Footprint - approximately 92% of India's total mobile
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subscribers resided in the Company's fifteen mobile circles. These 15
circles collectively accounted for approximately 56% of India's land mass;
Focus on telecommunications to enable the Company to better anticipate
industry trends and capitalize on new telecommunications-related business
opportunities;
The strong brand name recognition and a reputation for offering high
quality service to its customers; Quality management team with vision
and proven execution skills; and The Company's strong relationships with
international strategic and financial investors such as SingTel, Warburg
Pincus, International Finance Corporation,Asian Infrastructure Fund Groupand New York Life Insurance.
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Findings and Analysis
Data is been collected for more than 110 people who are using mobile
phones.
Out of which around 48 % people is using Airtel Mobile Services.
5357
No.of User
Airtel
Others
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Almost all Airtel user have found airtel services is best in class. Almost
everybody has provided their response that they found airtel servicesExcellent. This population is around 10% of total targeted population
Around 17% population has rated aritel services to be good, out ofwhich majority of them are Airtel users. Around 1% non Airtel user alsoendorsed that they found Airtel services as good, but due to some
reason they dont use airtel services.
Almost 50% people were neutral in there response 40% was usingAirtel and 60% was using Other services from 50% population
15% of total population said that Airtel Services are average, out ofwhich almost 90% of them was not using airtel
9% population said that Airtel services are below Average, out ofwhich almost 85% people were not using airtel however 15% peoplewho where using airtel they also rated it below average
0 10 20 30 40 50 60
Excellent
Good
Nuetral
Avg
Below Avg
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Source:
When we are specifically about the source of information targetaudience get from, Almost 60% said that they get information from TVad/Radio Ad (TV/Radio advertisement has the highest impact on
consumer)
After Tv/Radio ad 6% said Sales Executive, 17% said references fromfriends and relatives, 10% said Newspaper/Magazine and 5% said
dealers/company owned outlets
0
5
10
15
20
25
30
35
40
Network Brand Name After Sales
Services
Price and
discounts
Value added
services
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When we asked targeted audience about the important criteria which
they are looking for while selecting a particular services following is the
response we got
Network 25% Brand Name 34% After Sales Services 12% Price and Discount 29% Value added Services 2%
0
5
10
15
20
25
30
35
40
Network Brand Name After Sales
Services
Price and
discounts
Value added
services
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Even we tried to find out current customers preference that if by any
chance they have to purchase a new number which mobile services
would be there preference, below is the response in percentage
Airtel 31% Reliance 9% Idea 20% Vodafone 25% Uninor(other) 15%
Hence with above available data we can conclude that Vodafone
and Idea is the biggest competitor for Airtel in terms of overallservice. While we specifically go for a detail analysis of a
consumer who are price conscious and discount demanding their
Other services like Uninor have an advantage.
31
9
20
25
15
Airtel
Reliance
Idea
Vodafone
Uninor
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Below of the response of the respondent in terms of reason for buying
particular services
Network 25% Brand Name 34% After Sales Services 12% Price and Discount 29% Value added Services 2%
0
5
10
15
20
25
30
35
NetworkBrand Name
After Sales
ServicesPrice and
discounts Value added
services
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How consumers get information about the Airtel as a brand and itslatest services, below are the response we had received from targetaudience .
TV advertisement 86% Camps and other activities 11%
24*7 Call centre 4%
0 20 40 60 80 100
TV Advertisement
Camps and other activities
24 * 7 Call Centre
Series1
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Current Satisfaction level of Airtel Campagin
Very Satisfied 16%
Satisfied 45% Some what satisfied 28%
Not Satisfied 11%
0 10 20 30 40 50
Very Satisfied
Sartisfied
Some what satisfied
Not satisfied
Series1
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Respndents rating to Airtel
Brand Name 49%
Network 4% After Sales Services 27% Value Added Services 5%
Price and Discount 15%
0
5
10
15
20
25
30
35
40
45
50
Brand Name Network After Sales
Services
Value Added
Services
Price and
Discounts
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Improvement Needed in Airtel Services
Network 60%
Price and Discount 28% After Sales Services 12%
0
10
20
30
40
50
60
Network
Price and Discounts
After Sales Services
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SWOT Analysis :
Strengths
Being one of the largest companies in India the company has
achieved a degree of focus in its core business of its
products.
It has a strong brand name, superior quality products and an
enviable distribution network.
It has a clear and well-defined organization structure and
limits of financial authority.
Aggressive Marketing Advertisement which result into high revenue
generation
Highly skilled employees who helps corporate to achieve higher
quality of standard in all aspects
Weakness:
Poor Network
Low advertising effort compare to its main competition like Vodafone
and Idea
Premium priced products, hence cant compete in low price segment
No separate strategy for rural market
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Opportunities:
The company's financial performance can receive a major
boost from its cost reduction efforts.
There is a lot of scope of product and market diversification.
Entering into the international market can create huge opportunities
in future.
Rural Markets has very good potential to bring growth.
Threats
Current slowdown in the economy has restricted topline growth of
major telecom companies and for Airtel also it wil l be difficult
to maintain historical growth rates in such a depressed scenario.
Companys major price decisions are influenced by government
policies / controls.
New companies targeting telecom market with very low cost price
strategy. For eg., Uninor, DOCOMO
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BCG Matrix :-
STAR Vodafone Question - Reliance
Cash Cow Airtel Dog - Videocon
As per the response received from respondents we can clearly defined the
position of the telecom service provider into the BCG matrix as per above.
Airtel is considered to be as CASH COW as the current market growth rate
is low where market share is high.
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Porters Five Forces Model :
Bargaining Power of Customers: As per the data collected from
respondents, it clearly shows that the bargaining power of customers has
been increased due to new TRAI policies like Mobile Number Portability ,
Low cost tariffs offered by competitors etc.
Bargaining Power of Suppliers : Increase demands from the suppliers like
Nokia , and Siemens by providing the monopoly products of switch
hardware to telecom service provider.
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Threat of Substitute product : Due to increase in usage of video calling
through internet , voice usage goes down compare to last 3 years.
Threat of New Entrants : New telecom service provider like Uninor , Aircel ,
Videocon is providing such a lower tarrif plans to attract the customer which
can be affect to the airtel customer base.
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Conclusion
After analyzing the findings of the research, we can conclude that Airtel
lagged behind its competitors as far as network and price & discount
strategy is major concern. The maximum no. of people who use the
mobile are feeling that airtel has a great brand value but some how it is
lacking in providing best network to the customer as compare to the
competitors like Vodafone and Idea.
Aitel is running a very good branding campaign which is endorse by
superstar like A R Rehman and Shah Rukh Khan . However due to lack in
the network coverage they could not create a good image in terms of quality
service. Though airtel successfully emerged as a great brand value since it is
been endorse by famous celebrity.
As we know that now airtel has already launched its product with logo
har ek f r i end zarur i ho ta ha i has already became popular in
market. So we can say that inspite of so many competitor in the market
Airtel is having a good position just because every time, it tries its best to
understand the need of its important customer.
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RECOMMENDATION
We have made following recommendation to the company after analyzing
the respondents response.
The company should bring some changes in their network quality as well
as pricing strategy .
The Company has to analyze the network failure / less network area and
need to create the area more feasible with best network quality.
The company should make its marketing strategy flexible enough in
order to face competition.
The company pricing policy must be flexible enough to catch new
customers because if company offers lower price to a new customer then
he may continue buy the goods and can be a permanent customer for the
company.
The company should offers such rate in the market so that it may able
to catch a bigger market share and it should be able to compete with
its main competitor like Vodafone and Idea having a brand name and
also with new entrance like Uninor , DOCOMO and Aircel.
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Limitations
No project is without limitations and it becomes essential to figure out the
various constraints that we underwent during the study. The following
points in this direction would add to our total deliberations:-
1. During the study, on many occasions the respondent groups gave
us a cold shoulder.
2. The respondents from whom data was gathered any times displayed
complete ignorance about the complete branded range, which was being
studied.
3. Lack of time is the basic limitation in the project.
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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in
details the following Web Sites have been referred. All the material
detailed below provides effective help and a guiding layout while designing
this text report.
Websites:
www.airtel.in
www.google.com
www.wikipedia.com
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QUESTIONNAIRE
Q. 1 > Do you use Airtel Services ?
Yes
No
If No, then which services are you using? _________________
Q. 2 > For how long you have been using Airtel / Other services?
0 2 Years
2 5 Years
5 10 Years
More than 10 Years
Q.3 > How do you rate different service provider ?
Excellent Good Nuetral Average
Below
Average
Airtel
Vodafone
Idea
RelianceOtherServices
Q.5 > Do you collect any information before buying services from particular serviceprovider? No
Yes If Yes , then which source you are using ?
News paper / Magazines TV advertisement / Radio advertisement Dealers / Company owned Outlets Pamphlets / Broachers
Sales Executive Reference from friends and relatives
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Q. 6 > What are the main important aspects for which you are sticking to yourcurrent services ? Please Rank (Highest 1 , Lowest 5)
Brand Name
Price and Discounts (Lower Tariff Plans / Best Scheme in Prepaid ) After Sales Service
Network
Value Added Services
Q. 7 > If you want to purchase a new connection in near future , which brand will
you go for ? and why ?
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Q. 8 > How do you get the information about promotional activities of Airtel ?
Advertisement in Television
Camp
24 / 7 Call centre services Others __________________________________________
Q. 9 > Tell us about your satisfaction level with current Airtel promotional activities.
Very Satisfied
Satisfied
Somewhat Satisfied
Not Satisfied
Q. 10 > How would you rate Airtel Performance as per your expectation in terms of
following important criteria. (Highest 5 , Lowest 1)
1 2 3 4 5
Brand Name
Price and Discount
After Sales Services
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Network
Value added
Services
Q. 11 > What changes airtel should bring in order to improve quality services so
that you can shift / stick (airtel user) to airtel ?
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Thank You