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A STUDY ON MARKETING STRATEGIS OF AIRTEL

INDEX

1 .Introduction2. Company profile3.Marketing Strategies of Airtel4. Objectives5. Scope of study6. Hypothesis7. Research Methodology8. Data Analysis And Interpretation 9. Verification 10. Finding11. Limitations12. Conclusion13. Suggestion14.Bibliography15.Appendix

INTRODUCTION

INTRODUCTIONTELECOMMUNICATION MARKET IN INDIA The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Tele-density, which was languishing at 2% in 2006, has shown an impressive jump to 9.5% in 2010 and 10.5% in 2011 and is set to increase to 20% in the next five years beating the Govt. target by three years. Accordingly, India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers. The Government has played a key enabling role by deregulating and liberalizing the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been addressed now. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet, broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional sectorINDIAN CELLULAR MARKET The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2007, displacing Vodafone from the second position. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market. "Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst.

COMPANY PROFILE

COMPANY PROFILE

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers, which constitute, 44.6 million mobile and 5.4 million fixed line customers, as of March 31, 2007. Airtel comes to us from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti has also put its footsteps into Insurance and Retail segment in collaboration with Multi- National giants. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros and more than 50 million satisfied customers.

SERVICESAirtel Prepaid Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises, India's leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt and believed, possible

Instant Balance and Validity Enquiry Your account balance is updated on the screen of your handset at the end of each chargeable call. You can also call 123 from your mobile phone and listen to the voice announcement or simply dial *123#, press 'OK' or 'YES' button and your account balance will be displayed on the screen of your handset.Recharge your Airtel Prepaid Recharging is Easy. The calling value on your card keeps reducing as you make calls or use any other chargeable service. Choose the Airtel Prepaid Recharge Coupon thats right for you, from a variety of tailor made recharge coupons with different denominations which are available at a number of outlets across your city. Simply follow the procedure mentioned below, to recharge your phone.SMS (Short Messaging Service) Send messages quickly and easily using text, if it's too noisy to talk or you don't have much time. It's the way to share those interesting one-liners, important reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.SMS (Short Messaging Service) Send messages quickly and easily using text, if it's too noisy to talk or you don't have much time. It's the way to share those interesting one-liners, important reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.

Airtel Live Make your mobile the most happening entertainment destination with Airtel Live! Airtel brings you the latest in entertainment and information services, right on your phone!Hello Tunes Tired of that boring old tring tring on your phone? Well now when a friend calls, you can make them groove to the hottest new tracks burning up the music charts with Hello Tunes from Airtel! You get a wide choice of songs in the Popular & New Arrivals categories that are updated regularly. What's more you can directly call the number for your kind of music, e.g. call 678005 for English New and 678001 for Hindi New. This would directly take you to your favorite artist's Hello Tunes listing. Airtel Postpaid Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yet simple new ways to communicate, just when you want to, not just through words but ideas, emotions and feelings. To give you the unlimited freedom to reach out to your special people in your special way.GPRS (General Packet Radio Services) Log on to the internet, with GPRS that allows data transmission at a higher speed. Access e-mails and internet across Airtel's pan-India presence using 'Mobile Office' with your phone or a phone and laptop both.Other Services Airtel brings you, a wide range of Services that will change the way you communicate. Try them and discover a whole new world of fun and excitement.

MARKETING STRATEGIS OF AIRTEL

MARKETING Strategies of airtelMARKET SITUATION

AT THE TIME OF LAUNCH The first mover in the market was Airtel which launched its services in Delhi in Aug 1995 (Informal launch). Essar Cellphone followed by launching its services informally in Oct 95. At this point of time, the market was at a nascent stage, awareness level was low and both operators independently tried to spread awareness and educate the people COMPETITIVE SITUATION Airtel launched its services before Essar and skimmed the market picking up the bulk of the high usage premium clients. This is a very competitive industry with the two companies differentiating either on value-added services or price. Airtel is perceived as the high quality provider and has a premium image. Essar, on the other hand, is perceived as the lower end service provider. Airtel positions itself as the market leader on the basis of the number of subscribers. Essar is trying to counter this by emphasizing on the reach of its network and the quality of its service. However, Essar is somewhat not been very successful largely due to the inconsistency in advertising

MARKET SEGMENTATION Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income.

TARGET MARKET SEGMENT Airtel has targeted the premium and upper middle class. The rationale behind it is that only those segments should be targeted who value time and have the paying capacity. It Is also planning to target the business tourists during their stay in the capital About 60% of the clientele are top executives of corporate houses. About 15% are foreign organisations and the rest are professionals and small businessmen. During the introduction stage there was intense pressure to get consumers across to hook up with their brand, because getting them to switch brand loyalty later would be hard

AIRTEL'S MARKETING ORIENTATION. Since this is a high-involvement expensive product, the service provider has to fully take care of the customers.a)They take personal responsibility to "get" the answer for any problem faced by the customerb)They anticipate customers' problems and take pro-active steps to prevent themc)They give answers to the questions & requests, quickly & efficiently.d)They have a positive tone & manner while interacting with customers.e)They end the interaction on a positive or a humorous note-making the last 30 seconds count. Airtel realises that attracting people 'Is easy but converting them into loyal customers is hard, hence emphasis is on maintaining a 'Smiling and a Friendly Atmosphere' to please and retain the customer.

PRICE AND PRICING POLICY AIRTEL has realised that the Indian market is price sensitive. Therefore it care of the has come up with various innovative tariff schemes to take needs of different category of customers- Generally, the cellular services are more expensive than the land line based telephone services. This is due to the reason that the operating companies are required to pay a fee to the government for using airtime.

MARKETING Strategy Adopted by Bharti

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides print advertising, the company had put up large no of hoardings and kiosks in and around Delhi. It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high involvement product, price doesn't qualify as an effective differentiator. The image of the service provider counts a great deal. Given the Cell phone category, it is the network efficiency and the quality of service that becomes important. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiator Brand awareness is spread through the' campaigns and brand preference through brand stature. Airtel's campaign in the capital began with a series of 'teaser' hoardings across the city,' bearing just the company's name and without explaining what Airtel was. In the next phase the campaign associated Airtel with Cellular only thereafter was the Bharti Cellular connection brought up. Vans with Airtel logos roamed the city, handing out brochures aboutthe company and its services to all consumers. About 50,000 direct callers were sent out. When the name was well entrenched in the Delhiitess mind, the Airtel campaign began to focus on the utility of Cellphone. In the first four months alone Airtei's advertisement spend exceeded Rs. 4 crores.As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeable consumers are asked to name a Cellular phone service provider that is on the top of his/her mind 60% of them would name Airtel. As for aided it -is 100% (by giving clues and hints etc.). Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a thriving brand.Every company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. Airtel 's campaign strategy is designed keeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a "first mover every time" and that of a "market leader". The status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. The population which has just realized the importance of cellular phones has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. Concerts like the "Freedom concert" are being organised by Airtel in order to promote sales. The media channel is chosen with economy in mind. The target segment is not very concrete but, there is an attempt to focus on those who can afford. The print advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different 1 higher) is an important variable in determining the target audience. Besides this, other promotional strategies that Airtel has adopted are .(i)People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier's programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tactical advertisements.

DISTRIBUTION

Company

Distributor Franchisee

Dealers Dealer

Customer

Customer PRODUCT LIFE CYCLE The pattern of cell phone subscriber growth observed elsewhere in the world reveals that the growth in the market is Initially slow followed by a sharp acceleration, but so far that has not happened in India. As far as the Product Life Cycle is concerned. Indians are at the beginning of the maturity stage.

marketing objectivesintroduction growth maturity

Create product awareness and trial Maximise market share Maximise profits whole defending market share

STRATEGIES Product Offer a basic product/ service. Offer value added services Increase in number of value added services.

Price Charge cost- plus Price to penetrate market Price to match or best competitors

Distribution Build selective distribution Build Intensive distribution. Build more intensive distribution.

Advertising Build product awareness among early adopters and dealers. Build awareness and interest in the mass market Stress brand differences and benefits.

Sales Promotion Use heavy sales promotion to entice people to subscribe. Increase to build and maintain relationships with customers. Increase to encourage brand-switching.

OBJECTIVES

OBJECTIVES OF THE STUDY

Objectives:

To study the importance and development of tele communication industry in todays scenario. To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry. To make a comparative study of the major players in Indian Service Provider.

SCOPE OF THE STUDY

Scope of the study

1. Analyzing present schemes of the market.2. Analyzing customer satisfaction levels.3. Analyzing consumer preference towards AirTel.

HYPOTHESIS

HYPOTHESIS

1.This product provide better consumer satisfaction. 2.To know the perception of consumer regarding the service.

RESEARCH METHODOLOGY

RESEARCH Methodology

The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work. There have been two sources of information collected:a) Primary Sources I have met retailers of the Airtel of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website.

DATA ANALYSISAND INTREPRETATION

DATA ANALYSIS AND INTREPRETATION

1. Do you believe that India is potentially one of the most exciting mobile service providers in the world?CompanyYesNo

Airtel41

Vodafone41

Idea41

MTNL41

As according to the above table 16 (80%) out of the total 20 interviewed people in all the above four specified Indian mobile service providers are of belief that India is potentially one of the most exciting mobile service providers in the world, whereas some 4 (20%) of them do not agree to this view.

2. Do you find that the governments telecom policy has had the most radical impact on the development of mobile service providers?CompanyYesNo

Airtel41

Vodafone32

Idea32

MTNL51

As according to the above table 15 (75%) out of the total 20 interviewed people in all the above four specified Indian mobile service providers find that the governments telecom policy has had the most radical impact on the development of mobile service providers, whereas some 5 (25%) of them deny this.

3. Do you believe that one of the challenges facing mobile operators in India is the diversity of the coverage regions?CompanyYesNo

Airtel23

Vodafone32

Idea32

MTNL23

As according to the above table 10 (50%) out of the total 20 interviewed people in the mobile service providers are of belief that one of the challenges facing mobile operations in India is the diversify of the coverage regions, whereas interestingly another 10 (50%) of them deny this.

ONSUMER LEVEL1. Do you believe that mobile service providers comes close to fulfilling the requirements for a personal communication system?CompanyYesNo

Airtel91

Vodafone82

Idea82

MTNL55

As the above shows 30 (75%) out of total 40 respondents are of the belief that mobile service providers comes close to fulfilling the requirements for a personal communication system, whereas 10 (25%) of them are in no way to this belief.

2. Do you find that mobile service providers as the most exciting and satisfying mobile standard?CompanyYesNo

Airtel91

Vodafone73

Idea82

MTNL82

As the above shows 32 (80%) out of total 40 respondents find that mobile service providers as the most exciting and satisfying mobile standard, whereas the remaining 8 (10%) respondents deny this.

3. Do you believe that your service provider has a genuine commitment to creating a modern and efficient communications?CompanyYesNo

Airtel100

Vodafone82

Idea100

MTNL82

As the above shows 36 (90%) out of total 40 respondents are of the belief that their service providers have a genuine commitment to creating a modern and efficient communications whereas the remaining 4 (10%) respondents deny this.

VERIFICATION

VERIFICATION

1. H1: From the analysis and interpretion it is verified that this product provide better consumer satisfaction.

Thus H1 hypothesis is accepted.

2. H2: From the data analysis and interpretion it is verified that the perception of onsumer regarding the service is increase.

Thus H2 hypothesis is accepted.

FINDING

FINDING

1. People prefer Airtel for good service provided.2. Maximum number of consumers is highly satisfied with AirTel.3. About 70%, 30%respondents will purchase pre-paid, post-paid services respectively produced by Airtel.

LIMITATIONS

LIMITATIONS

Every attempt will be taken to obtain the error free and meaningful result but as nothing in this world is 100% perfect I believe that there will still the chance for error on account of following limitations-(1) Respondents unavailability.(2) Time pressure and fatigue on the part of respondents and interviewer.(3) Courtesy bias.

CONCLUSION

CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also good no. of users who were willing to switch from their respective subscribers showed interest in Airtel. Hence, these statistics imply a bright future for the company. Also the company is now providing more services like the door to door services which is you dial the Airtel customer care and would like to send someone flowers the Airtel company delivers those flowers to the person concerned. Also Airtel is providing free text messaging service and free voice mail service. Call conferencing is also another feature Airtel provides.

SUGGESTIONS

SUGGESTION

1. Company should concentrate on the rural areas and make their management proper by giving employment to the educated people.

2. The company should distribute magazines, house journals to the consumers to aware them about new schemes and offers

3. New promotional strategies should be adopted by company, like personal service etc.

4. The company should start taking feedback from consumers about their product through the way of prescribed forms.

BIBLIOGRAPHY

BIBLIOGRAPHY

WEBSITE:-

http://www.airtel.in/ BOOKS:-

SERVISE MARKETING (S.M.JHA) MODERN MARKETING (R.S.N.PILLAI, BAGAVATHI)

APPENDIX

APENDIX QUESTIONNAIRE NAME: ____________________________________ADDRESS: ____________________________________OCCUPATION: ____________________________________

1. Do you believe that India is potentially one of the most exciting mobile service providers in the world?CompanyYes No

Airtel

Vodafone

Idea

MTNL

2. Do you find that the governments telecom policy has had the most radical impact on the development of mobile service providers?CompanyYesNo

Airtel

Vodafone

Idea

MTNL

3. Do you believe that one of the challenges facing mobile operators in India is the diversity of the coverage regions?CompanyYesNo

Airtel

Vodafone

Idea

MTNL

CONSUMER LEVEL

1. Do you believe that mobile service providers comes close to fulfilling the requirements for a personal communication system?CompanyYesNo

Airtel

Vodafone

Idea

MTNL

2. Do you find that mobile service providers as the most exciting and satisfying mobile standard?CompanyYesNo

Airtel

Vodafone

Idea

MTNL

3. Do you believe that your service provider has a genuine commitment to creating a modern and efficient communications?CompanyYesNo

Airtel

Vodafone

Idea

MTNL

N.M.D.COLLEGE GONDIAPage 46