INTEGRATED LIVE PROJECT

ON BHARTI AIRTEL

“STUDY ON BRAND

POSITIONING OF AIRTEL”

ONE BY

PRASAD PHAL

1
 ACKNWOLEDGEMENT

The project comes directly from my heart with sincere dedication, devotion and
efforts. I would also like to express my deepest gratitude towards those whose
help and contribution cannot be appraised.

I also take the opportunity to thank Mr. Mithun Bhonsle, Area Manager,

BHARTI AIRTEL, Goa unit, without whose help and guidance I would not have

been able to complete my project.

I would also like to express my sincere gratitude to our faculty guide who

helped me in solving the problems and difficulties and in completing the

project.

I would also like thank all the Managers, Executives, Supervisors, and

Workers of the company who provided me relevant information in spite of their

busy work schedule.

2
 DECLARATION

I hereby declare that this integrated live project entitled “BHARTI AIRTEL” is
my work, carried out under the guidance of my faculty and my company guide
Mr.Anoop Das. This live project report neither full nor in part has ever been
submitted for award of any degree of either this college or any other college.

3
 CERTIFICATE

“Certified that this project report is a record of work done by the candidate

himself during the period of study under faculty Guidance and that to the best

of my knowledge it has not previously formed the basis of the award of any

degree or Diploma in ICFAI University or elsewhere.”

__________________

(Faculty guide)

4
 INDEX
1 INDUSTRY PROFILE 6
2 COMPANY PROFILE 7

3 OBJECTIVE 9

4 LIMITATION 10

5 CHP-1) CASH MANAGEMENT 11

6 CHP-2) PERFORMANCE APPRAISAL 16

7 CHP-3) PRICING POLICY 23

8 26
CHP-4) LEGAL ENVIRONMENT

9 CHP-5) BRANDING AND PRODUCT RANGE 29

10 CHP-6) FINDINGS AND ANALYSIS 40

11 CONCLUSION 49

12 BIBLOGRAPHY 51
13 ANNEXURE 52

14 ABBRIVIATION 53

5
 INDUSTRY PROFILE
Telecommunications industry in India

The telecommunications industry is growing at a very rapid pace in India. Also

India is one of the fastest growing telecom markets in Asia. India is the 4th
largest telecom market in Asia. The telecom Market consists of mobile
phones, cellular service providers, and broadband network.

The telecommunications industry has undergone a lot of change in the last 2

decades. From deregulation to privatization to telecom services, to
liberalization of Indian telecom policies, increase in competition, introduction of
new technologies like black berry phones, and internet and convergence of
technologies. Since the telecom industry is growing at a rapid pace, Bharti
School of telecom has been dedicated to the country.

This telecom revolution has contributed enormously to increased efficiency in

the economy. It has reduced transaction costs. It has increased connectivity
across the length and breadth of our vast subcontinent. It has brought Indians
closer to each other. The telecom sector is driving today the growth of both
incomes and employment. Indeed, this growth is creating new business and
new employment opportunities. India has emerged as a major base for the
telecom industry worldwide and we intend to facilitate the further growth of this
vital industry.

Also new players like Vodafone, one of the leading telecom companies in the
world have entered the Indian telecom market.

6
 COMPANY PROFILE
BHARTI AIRTEL LTD– An Overview

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group, has a diverse business portfolio and has created global brands
in the telecommunication sector. Bharti has recently forayed into retail
business as Bharti Retail Pvt. Ltd.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the
first private telecom services provider with a footprint in all the 23 telecom
circles. Bharti Airtel since its inception has been at the forefront of technology
and has steered the course of the telecom sector in the country with its world
class products and services.

Bharti Airtel is one of India's leading private sector providers of

telecommunications services based on an aggregate of 57,341,120 customers
as on December 31, 2007, consisting of 55,162,944 GSM mobile and
2,178,176 broadband & telephone customers. Bharti Airtel crosses the 60
million customer mark .

The businesses at Bharti Airtel have been structured into three 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 telecom circles, while the ATS business group provides
broadband & telephone services in 94 cities. The enterprise services group
has two sub-units - carriers (long distance services) and services to
corporates. All these services are provided under the Airtel brand.

7
The company has a strategic alliance with SingTel. The investment made by
SingTel is one of the largest investments made in the world outside
Singapore, in the company.

The company’s mobile network equipment partners include Ericsson and

Nokia. In the case of the broadband and telephone services and enterprise
services (carriers), equipment suppliers include Siemens, Nortel, Corning,
among others. The Company also has an information technology alliance with
IBM for its group-wide information technology requirements and with Nortel for
call center technology requirements. The call center operations for the mobile
services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &
Mphasis. Bharti Airtel is the only Indian company in the top 10 list. Bharti Airtel
has ranked ahead of companies like Motorola (Rank 11), Google (Rank 13),
Microsoft (Rank 37), Hewlett Packard (Rank 44) and Oracle (Rank 51)

The mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under
a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh
agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management The company’s mobile
network equipment partners include Ericsson and Nokia. In the case of the
broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others. The
Company also has an information technology alliance with IBM for its group-
wide information technology requirements and with Nortel for call center
technology requirements. The call center operations for the mobile services
have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

8
 OBJECTIVE

To study concept cash management in the company.

To study performance appraisal system in the company.

To study the concept pricing policy of the company.

To study the concept of political and

To study the concept of branding and product range.

Findings and analyzing on the survey coducted .

9
 LIMITATIONS

• A major limitation of this study is that it is very difficult to contact

the concerned person as it was difficult to fix appointments with
them due to their busy schedules due to which the true information
cannot be revealed.

• Retailers were not ready to respond to the questionnaire as they had

tie ups or contracts with other service providers and thus refused to
entertain.

• Survey was restricted to customers in Goa region only.

10
 CASH MANAGEMENT

Objective: To study the Cash management of Bharti Airtel

Cash, the most liquid asset and also referred to as the life blood of a business
enterprise is of vital importance to the daily operation of business firms. Its
efficient management is crucial to the solvency of business because cash is
the focal point of the fund flows in a business.
There are two ways of viewing the term ‘cash’. It includes actual cash in the
form of notes and coins and bank drafts held by a firm and the deposits
withdraw able on demand. It also includes marketable securities which can be
easily sold or converted into cash.

Need for Cash Management

Cash in hand or at bank is the most liquid of all the current assets. Thus larger
cash and bank balances indicate high liquidity position of a company. Why do
companies hold cash? This is an important question to deal with. Different
reason for holding cash are given as

Transaction Motive: Airtel has post paid and prepaid connection. If the
customers uses post paid connection then sum amount is charged as service
charges to the customer by the company but when the bill is given to the
customer then there is always a chances that the customer don’t pay the bill
which some time incurs loss to the company, entering into transactions with
other entities. Transaction means either buying or selling of different products.
While some of these transactions may not result in immediate inflow/outflow of
cash (example credit purchases and sales), while other transactions cause

11
immediate cash inflow and outflows. Therefore this company always keeps a
certain amount as cash to deal with routine transactions where immediate
payment is required.

Precautionary Motive: Contingencies may crop up when they are least

expected to occur. A sudden fire may break out, accidents may happen,
creditors may present bills earlier than expected or debtors may make
payments later than warranted. For all such surprises Bharati Airtel co is
always prepared so as to minimize losses. And therefore this company
maintains certain amount in the form of cash.

Speculative Motive: companies also maintain cash balances in order to take

advantages of opportunities that do not take place in the course of routine
business activities. Say suppose there may be sudden decrease the rental
charges of postpaid connection which is not expected to last long. These are
the transactions which are speculative in nature and for which the company
needs cash.

Objectives of Cash Management

The objective of cash management can be regarded as one of making of short
term forecasts of cash position, finding avenues for financing during periods
when cash deficits are anticipated and arranging for repayments during
periods when cash surpluses are anticipated with a view to minimizing idle
cash as far as possible. Some of the objectives of cash management are as
follows

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Cash Forecasting and Budget: it is very important for Bharati Airtel to carry
out proper forecasting for future cash requirements which may be because of
different costs associated with the business proceedings, The stocks are
required to meet the customer requirements as when demanded. Short-term
forecasting is prepared under the receipt and payment method, showing the
time and magnitude of expected cash payments and receipts.

Preparing Cash Reports: cash budgets are nothing but short-term cash
forecasts. Sometimes the cash inflows and outflows of Bharti Airtel company
remains stable it doesn’t fluctuate. In such cases the monthly report is
produced, while sometimes the cash inflows/outflows fluctuate. In such cases
the weekly or even daily reports are also produced.

Factors for Efficient Cash Management

Cash reports help in monitoring actual data for comparison with the budgeted
amounts, understanding the reasons for deviation the two and controlling and
revising the budget on regular basis. The efficiency of cash management can
be enhanced considerably by keeping a close watch and controlling a few
important factors.

Prompt Billing and Mailing: soon after the connection is provided to

the customers, a time lag occurs from the date of connection to the date
of preparing invoice documents and mailing them to the
customers.Bharati Airtel stresses constantly to reduce this time gap
because this can cause early remittances. Thus accelerating the
process of preparing and mailing bills will help reduce the delay in
remittances and early realization of cash.

Collection of Cheques and remittance of Cash: delay in the receipt

of cheques and depositing the same in the bank will inevitably result in
delayed cash realization. Bharati Airtel reduced these delays by

13
 improving the process of collecting and depositing cheques/cash from
customers. This done by careful monitoring the process.

Investment of Surplus Cash: surplus cash is used by the company people to

invest in certain securities, shares, etc.

Insurance Control:
Some attention should be given towards the protection of the company’s
assets. So the insurance component is very important for the company.
Therefore the company deploys some of its funds (required cash) into
insurance policies.

14
 PERFORMANCE APPRAISAL
Performance appraisal, also known as employee appraisal, is a method
by which the performance of an employee is evaluated (generally in terms
of quality, quantity, cost and time). Performance appraisal is a part of
career development.

Performance appraisals are a regular review of employee performance

within organizations.

Generally, the aims of a scheme are:

• Give feedback on performance to employees.

• Identify employee training needs.
• Document criteria used to allocate organizational rewards.
• Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, etc.
• Provide the opportunity for organizational diagnosis and
development.
• Facilitate communication between employee and administrator.
• Validate selection techniques and human resource policies to meet
federal Equal Employment Opportunity requirements.

The most popular methods that are being used as performance appraisal
process are:

• Management by objectives (MBO)

• 360 degree appraisal
• Behavioral Observation Scale (BOS)
• Behaviorally Anchored Rating Scale (BARS)

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 The following is the performance form:

PERFORMANCE APPRAISAL FORM

FOR THE PERIOD _______________________ TO

__________________________

Name of Employee: Based at:

Designation: Present Grade / CTC:

Length of service in the org: Total years of experience:

Emp. Code No. Appraiser:

(To be filled in by Head Office)

Appraisee to complete and return to the appraiser by:

SECTION A

Please evaluate your job performance by checking the appropriate box

next to each attribute, according to the following scale:

(NI = needs improvement; S = satisfactory; G = good; VG = very good; E =

excellent
NA = not applicable)

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 ATTRIBUTES NI S G VG E NA

Efficiency of work (qualitative, quantitative and

knowledge)

Meets job requirements on time, able to work under pressure

Completes assignments with accuracy & thoroughness,
Demonstrates professional, administrative, supervisory, and /
or specialized knowledge required to perform the job.

Cooperation

Gets along well with colleagues ,Willing to assist others,

shows courtesy and effectiveness in dealing with others

Judgment

Makes good job-related decisions, Develops alternative

solutions & recommendations, Selects proper course of

action & understands impact of decisions and actions

Attendance

Reports for work consistently and punctually, Uses company

time conscientiously.

Planning & Organizational effectiveness

Meets deadlines , Manages resources, Effectively balances

17
tasks and priorities , Handles tasks in an organized and
efficient manner , Able to handle multiple tasks
simultaneously & makes effective use of time.

Communication

Keeps manager / supervisor informed of work progress,

Effectively conveys information and ideas to others , Clarity

of oral & written communication.

Integrity

Represents self and situations honestly; Understands and

maintains confidentiality
ATTRIBUTES NI S G VG E NA

Initiative and creativity

Resourceful and creative in meeting job objectives ,

Demonstrates a ‘self-starter- attitude , Follows through on
assignments , Initiates or modifies ideas, methods or
procedures to meet changing circumstances or requirements.

Dependability

Can be depended on to carry out assignments with careful

follow up , Is able to overcome obstacles to meet goals ,
Assumes responsibilities and ensures tasks are followed to
completion.

Interpersonal relationships

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Maintains a positive work relationship / attitude with
colleagues and management , Listens effectively, Is a team
player, Participates with others to accomplish tasks,
Accepts constructive criticism positively

Productivity

Work completion is consistently high , Can be counted on

for extra efforts to meet the goals of the organization ,
Makes effective use of available resources to accomplish
tasks.

Flexibility

Adapts well to changes , Accepts new ideas and approaches

to work , Responds appropriately to criticism and to
suggestions for work improvement

Supervisory ability

Applies sound practices in executing supervisory

responsibilities , Demonstrates skill in arousing interest and
enthusiasm in subordinates , Effectively selects and
develops personnel

Overall Rating

This is to rate overall performance taking into account all

the above attributes

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 SECTION B

• Are there any problems outside your control which have reduced
your ability to do your job?

• Are there any other aspects not noted elsewhere or any other issues
outside this appraisal that you would like to discuss / comment
upon?
• Would you like to offer any suggestions or comments to your
supervisor / management that would help the organization grow,
prosper and achieve its goals?

SECTION C

To be completed after the appraisal, with the supervisor / manager.

To be completed during the appraisal by the appraiser / supervisor

- where appropriate and safe to do so, certain items can completed
by the appraiser before the appraisal, and then discussed and
validated or amended in discussion with the appraisee during the
appraisal.

SECTION A

With reference to the criteria in self appraisal Section A, rate the

appraisee’s capability / attributes in the following areas in terms of their
current (and if applicable, next) role requirements.
(NI = needs improvement; S = satisfactory; G = good; VG = very good; E =
Excellent;
NA = not applicable)

ATTRIBUTES NI S G VG E NA

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Efficiency of work (qualitative, quantitative &
knowledge)
Cooperation
Judgment
Attendance
Planning / Organizational effectiveness
Communication
Initiative and creativity
Dependability
Attitude and Interpersonal relationships
Productivity
Supervisory ability
Overall rating

SECTION B

Compare & discuss the self appraisal entries in Section B. Note down
comments and recommendations as applicable.

SECTION C

To be completed by the employee being reviewed:

I have read the comments / reviews noted by my appraiser and:

• I agree with them

• I agree with them and wish to add the following points.

• I do not agree with them for the following reasons:

Employee’s Signature:
Date:

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To be completed by the appraiser / supervisor:

I have read and noted the completed section above:

Appraiser’s Signature:
Date:

FINAL COMMENTS BY MANAGEMENT

Airtel does annual Performance appraisals which are essential for the effective
management and evaluation of staff. Appraisals help to develop individuals,
improve organizational performance, and feed into business planning,Thus
airtel gives recognitions and rewards to the employee which in turn motivates
the employees and the employees take initiative in their work.

Airtel provides Formal performance appraisals which are generally conducted

annually for all staff in the organization. Each staff member is appraised by
their line manager. Directors are appraised by the CEO, who is appraised by
the chairman or company owners.

Annual performance appraisals enable management and monitoring of

standards, agreeing expectations and objectives, and delegation of
responsibilities and tasks. Staff performance appraisals also establish
individual training needs and enable organizational training needs analysis
and planning.

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 PRICING POLICY
Economics a science that studies allocation of scarce resources by humans
in the world of unlimited needs.

The term economics comes from the Greek for oikos (house) and nomos
(custom or law), hence "rules of the house (hold)."[1]

A definition that captures much of modern economics is that of Lionel Robbins

in a 1932 essay: "the science which studies human behavior as a relationship
between ends and scarce means which have alternative uses. Scarcity means
that available resources are insufficient to satisfy all wants and needs. Absent
scarcity and alternative uses of available resources, there is no economic
problem. The subject thus defined involves the study of choices as they are
affected by incentives and resources.

Areas of economics may be divided or classified into various types, including:

• microeconomics and macroeconomics

• positive economics ("what is") and normative economics ("what ought
to be")
• mainstream economics and heterodox economics
• Fields and broader categories within economics.

One of the uses of economics is to explain how economies, as economic

systems, work and what the relations are between economic players (agents)
in the larger society. Methods of economic analysis have been increasingly
applied to fields that involve people (officials included) making choices in a

23
social context, such as crime, education, the family, health, law, politics,
religion, social institutions, and war.

Pricing Policy

The simplest way to set price is through uniform pricing. At the profit-
maximizing uniform price, the incremental margin percentage equals the
reciprocal of the absolute value of the price elasticity of demand. The most
profitable pricing policy is complete price discrimination, where each unit is
priced at the benefit that the unit provides to its buyer. To implement this
policy, however, the seller must know each potential buyer’s individual
demand curve and be able to set different prices for every unit of the product.

The next most profitable pricing policy is direct segment discrimination. For
this policy the seller must be able to directly identify the various segments. The
third most profitable policy is indirect segment discrimination. This involves
structuring a set of choices around some variable to which the various
segments are differentially sensitive. Uniform pricing is the least profitable way
to set a price.

A commonly used basis for direct segment discrimination is location. This

exploits a difference between free on board and cost including freight prices. A
commonly used method of indirect segment discrimination is bundling. Sellers
may apply either pure or mixed bundling.

Types of pricing policy

Uniform Pricing
Uniform pricing: a pricing policy where a seller charges the same price for
every unit of the product

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Price discrimination.
Pricing policy where a seller sets different incremental margins on various
units of the same or similar products.

Complete price discrimination:

The pricing policy where a seller prices each unit of output at the buyer’s
benefit and sells a quantity where the marginal benefit equals the marginal
cost

Direct segment discrimination:

The pricing policy where a seller charges a different incremental margin to
each identifiable segment (with uniform pricing within each segment). A
segment is a significant group of buyers within a larger market

Indirect segment discrimination:

Pricing policy where a seller (who cannot directly identify the customer
segments) Structures a choice for buyers so as to earn different incremental
margins from each segment

Conclusion
AIRTEL companies are using direct segment discrimination were seller
charges a different incremental margin to each identifiable segment (with
uniform pricing within each segment). A segment is a significant group of
buyers within a larger market. since there are only two connection i.e. post
paid and prepaid but with different plan which are priced separately according
to the customers wants and needs.

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 LEGAL ENVIRONMENT

FACTORS AFFECTING THE TELECOM SECTOR

There are four factors that affect the Telecom sector.
They are:
• Political environment
• Economic environment
• Social environment
• Technological environment

1) Political Environment:
Political forces influence the legislations and government regulations under
which the firm operates.
• Allotment of Spectrum to GSM Operators:
All telecom companies face political constraints in the form of minimum usage
legislation. These laws, rules and regulations affect a company’s profit.
The COAI made a legal representation to DoT, asking DoT to make available
requisite spectrum to the GSM operators as per the criteria laid down by the
Government. GSM operators had been facing a severe crunch on spectrum
and have been waiting for months or even years to get spectrum. He stated
that the non-availability of spectrum was affecting both new licensees who
were yet to get their initial allotments and also the operators who had far
exceeded the subscriber linkages that had been prescribed by the
Government.

26
Tower problems:
In Goa & Maharashtra circle there is a Political problem regarding setting up of
towers on Naval base as the Navy people are not allowing telecom companies
to set towers in that area.
2) Economic Environment:

These are the factors that affect the revenues of the company and also the
government. These include:

1) Licensing liberalization
Several important initiatives have been taken to further liberalize the licensing
norms with the objective of making telecom services available at affordable
prices.
  F DI Ceiling increased from 49 per cent to 74 per cent in the telecom
services.
Annual license fee for National Long Distance (NLD), International Long
Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet
Service Provider (ISP) with internet telephony (restricted) licenses was
reduced to 6% of Adjusted Gross Revenue (AGR) w.e.f. 1-1-2006.
Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore
prospectively i.e. date of issue of amendment to the existing guidelines to that
effect. Entry fee for ILD be reduced to Rs. 2.5 Crore from Rs. 25 Crore.
Lease line charges have been reduced to make the bandwidth available at
competitive prices to facilitate growth in IT enabled services.
 The rate of License fee/revenue share has been revised from 10% to
6% of the AGR w.e.f 01.01.2006.

3) Social Environment:
The social environment is an important factor as changes in the values,
beliefs, attitudes, opinions and life styles in society create potential

27
opportunities for an organization for a company to grow, it is necessary to take
advantage of societal changes. The cultural, demographic, religious,
educational and ethnic conditioning of individuals in society affects the social
environment.
(i) Rural Telephony
Telecom development in rural areas assumes special significance as more
than 70% of telecom development and overall economic development of a
region. Telecom services are important drivers for development, delivery of
public services such as education, health etc. and integration of rural areas
with the rest of the country.

(ii) ONE INDIA PLAN: Telecom companies have started ONE INDIA PLAN in
which subscribers can call anywhere in India @ Rp 1/-.

4) Technological environment:
This environment comprises factors relating to the raw materials and
machines used in manufacturing the service. These factors include Age, 3G,
number portability, EDGE Technological innovations determine how
organizations compete and thrive in the marketplace.

28
BRANDING AND PRODUCT RANGE

AIRTEL AS A BRAND

To connect India's leading 1000+ corporate, empower them through

Broadband services and connect Indians living in USA with our call home
service Airtel was born free, a force unleashed into the market with a
relentless and unwavering determination to succeed. A spirit charged with
energy and creativity and a team driven “to seize the day” with an ambition to
become the most globally admired telecom service. Airtel, after just ten years,
has risen to the pinnacle of achievement.

As India's leading telecommunications company serving over 33 million

customers the brand has played the role as a major catalyst in India's reforms,
contributing to its economic resurgence.

Today we touch people’s lives with our Mobile services to connect India's
leading 1000+ corporate, empower them through Broadband services and
connect Indians living in USA with our call home service.

The Airtel Logo

The Airtel logo is a specially drawn wood mark, strong, contemporary and
confident symbol for a brand that is always ahead of the rest.

29
The Airtel Image Style

It incorporates two solid, red rectangular forms whose counter-form creates an

open doorway.

The Airtel Typographical Style

The title case lettering with its capital ‘A’ reinforces our leadership position.
The red dot cues in our focus on innovation. Our logo is a reflection of our
identity – a confident symbol of a brand that is always ahead of the rest,
always ‘In-touch’ and on customer’s side. The words ‘Express Yourself’ are
very much of the Brand identity

The Airtel Color Palette

The lettering is grey so that the pure black of Airtel is visually unharmed.

SIGNIFICANCE OF BRAND
Consumers identify brand distinctive capabilities based on their perception
that have themselves been created by the marketer over a period of time.
A brand conveys the following

• Attributes: Brand usually highlights the product to inform existing

customer and also attract the potential customer. For e.g. airtel as a
brand name is more popular and their number of post paid connection
is very high.

• Benefits: the attributes should eventually transform into emotional and

functional benefits, for the brand to be successful.

• Values: Most of the brands associate some value with themselves. For
instant the baseline of airtel, “Express yourself”, communicates a value

30
 proposition that the prepaid and postpaid connections make s to
express yourself to other.

• Culture: Brands also represents a certain culture. For instant, airtel

projects a culture of togetherness among the people by talking to each
other and express the feelings, thus creating an emotional appeal in the
minds of people to buy the products.

• Personality: Brands communicate personality status. For instant airtel

suggest that

• It is a brand for all segments of people whether they are rich or poor
and for the people who believes in to maintain human relation.

• User: Brand clearly states their user segments. Airtel targeted all
segment of people, right from the common people to the business
oriented people.

PRODUCTS AND SERVICES:

1) Blackberry Services

Send and receive

emails instantly

Read attachments

Blackberry- Airtel introduces a brand new offering - the Blackberry 8700g,

Uncompromising Email, Browsing and Phone Performance in all in one
device.

31
2) Postpaid Services

Post Paid Plans- As an Airtel Post-paid customer you can enjoy the following

facilities -Easy Billing, Call Divert, Call Hold and Call Wait, Short Messaging

Service (SMS), Caller Identification, Voice Mail, STD/ISD Facility, Roaming

(National and International), Bill payment on mobile, etc.

3) Prepaid Services

Pre paid Plans- As an Airtel Pre-paid customer you can enjoy the following
facilities - Total Cost Control, No Deposits, No Rentals, STD/ISD Facility to the
last rupee, Instant Balance Inquiry, 60 Second Pulse, Instant Recharge, 24
hour recharge facility, Caller Identification, Call Hold and Call Wait, Short
Messaging Service (SMS), SMS based Information Service, Voice mail
service.

Thus it has found that prepaid connections are more than postpaid
connections.

32
 DETAILS OF PRODUCTS
Some of the post paid plans that sell the most are:

Table1. Airtel Value Plan

Rs125 month
Monthly Rental
Clip No clip charges for first first six months after that
50 rs p/m
Airtel Other GSM Landline/CDMA
Local Rates
0.50 0.50 1.00

Airtel Other GSM Landline/CDMA

STD Rates
2.00 2.40 2.40

ISD
Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia 7.20

core, Australia

SMS
Local Rs. 1/per sms

National Rs. 2/per sms

International Rs. 5/per sms

33
 Table2. : Airtel Privilege 450/-

Rs450 month
Monthly Rental
Clip nil

Airtel Other GSM Landline/CDMA

Local Rates
0.50 0.50 1.00

One Airtel to Airtel no. Wherein calling is 0.10

paisa
Airtel Other GSM Landline/CDMA
STD Rates
1.50 1.50 1.50

ISD
Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia 7.20

core, Australia

SMS
Local Rs. 0.50/per sms

National Rs. 1/per sms

International Rs. 5/per sms

34
Table 3. : Airtel Privilege 599 plus

Rs599 month
Monthly Rental
Clip nil

Airtel Other GSM Landline/CDMA

Local Rates
0.30 0.50 0.80

One Airtel to Airtel no. Wherein calling is 0.10

paisa
Airtel Other GSM Landline/CDMA
STD Rates
1.25 1.25 1.25

ISD
Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia 7.20

core, Australia

SMS
Local Rs. 0.50/per sms

National Rs. 1/per sms

International Rs. 5/per sms

35
 Table 4. : Alex 345 Plan

Rs345 month
Monthly Rental
Clip nil

Airtel Other GSM Landline/CDMA

Local Rates
0.30 0.50 0.80

One Airtel to Airtel no. Wherein calling is 0.10

paisa
Airtel Other GSM Landline/CDMA
STD Rates
1 1 1

ISD
Africa 9.99

Middle East 9.99

Europe Mobile, SARRC 9.99

Us Canada, Eur LL 7.20

New Zealand, South East Asia 7.20

core, Australia

SMS
Local Rs. 0.50/per sms

National Rs. 0.50/per sms

International Rs. 5/per sms

36
Airtel CUG Plans (Group plans)

Table 5.: Leader 249

Particulars Rates
249
Rental
Clip free
CUG within the group M&G circle 0.10 paisa

Local
Airtel to Airtel 0.50
Airtel to GSm 0.50
Airtel to Fixed LL/WLL 1.00

STD
Airtel to Airtel 1.75
Airtel to GSm 1.75
Airtel to Fixed LL/WLL 1.75

SMS
Local .30
National .30
International 5

TOP UPS
Tops ups local First 200 min
@.10 p
Top ups STD First 100 min
@.50 p.
SMS First 100 sms
free

Table 6: Leader 249 (Head on)

37
Particulars Rates
249
Rental
Clip free
CUG within the group M&G circle 0.10 paisa

Local
Airtel to Airtel 0.50
Airtel to GSm 0.50
Airtel to Fixed LL/WLL 1.00

STD
Airtel to Airtel 1.75
Airtel to GSm 1.75
Airtel to Fixed LL/WLL 1.75

SMS
Local .30
National .30
International 5

TOP UPS
Tops ups local First 200 min
@.10 p
Top ups STD First 100 min
@.50 p.
SMS First 100 sms
free

Presence of Airtel in 23 Circles

38
 North West South East

And
Himachal Pradesh Maharashtra and Goa hra Pradesh Orissa

Punjab Mumbai Tamil Nadu West Bengal

Delhi Madhya Pradesh Kerala Kolkatta

Gurgaon Rajasthan Karnataka

Jammu and Kashmir

Haryana

UttarPradesh (W)

Uttar Pradesh (E)

39
 FINDINGS & ANALYSIS
1. For how long you had been the customer of Airtel?

(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

0-3 months 3-6 months 6-12 months > 1year

24 13 08 05

10%

16% 0-3 mnths

48% 3-6 mnths
6-12 mnths
>1 years

26%

Around 48% of churn is found among the customers who are with the services
of Airtel for 0-3 months.

2. Were you satisfied with the network of Airtel?

Yes No
21 29

42% Ye s

58% No

58% 0f the customers says that they are satisfied with the network of Airtel.

40
Were you happy with rental plan offered?

Yes No
34 14

29%

Yes
No

71%

Majority of the People are happy with the rental plans offered by Airtel. There
is not much difference between the plans offered by Airtel and other operators.

4. Were the plans too expensive?

Yes No
14 36

28%

Yes
No

72%

41
Few customers found that the plans were little expensive. Such customers can
be retained by offering them plans that suits their usage and income.

5. Was there any difference between plans discussed and plan offered?

Yes No
03 47

6%

Yes
No

94%

In few cases it was found that there was some difference between the plans
discussed and plans offered.

6. Was there sufficient time between bills received date and due date?

Yes No
28 22

42
 44% Yes
56% No

Hypothesis testing

Ho: Customers say that 7days is sufficient time between bills received date &
the due date.
H1: customers say that 7 days is not sufficient time between bills received
date & the due date.

x x- x (x- x)

28 0 0
22 -6 36

= 50 = 25
2
X = 28

= 36 = 18
2

= 12.77

43
 = 28-25 = 3
12.77 12.77

= 0.23

Since computed value lies in acceptance region we conclude that there is

sufficient time between bills received date & due date.

7. Were you happy with the billing payment facility offered by Airtel?

Yes No
31 19

44
 38%
Yes
No
62%

Hypothesis testing

Ho : customers are satisfied with the billing payment facility offered by Airtel
H1 : customers are not satisfied with the billing payment facility offered by
Airtel

X X-X (X-X)
31 0 0
19 -12 144

X = 31

= 50 = 25
2

= 144 = 72
2

45
 = 31- 25 = 6 = 0.12
51 51

Since computed value lies in acceptance region we conclude that people are
happy with billing payment facility offered by Airtel.
Few customers are unhappy with the billing payment facility offered by Airtel.

8. Were your queries solved by customer care or concerned person?

Yes No
32 18

46
 36%
Yes
No
64%

36% were found that their queries were not solved.

9. Were you happy with the value added services offered by Airtel?

Yes No
38 12

24%

Yes
No

76%

10. Are you willing to join again if your queries are given necessary solutions?

Yes No
08 42

47
 16%

Yes
No

84%

Though 84% of the churned customers are not willing to join again it is very
difficult to get them back again.

48
 CONCLUSIONS
• Around 48% of the churn is found among the customers who are with
the services of Airtel for 0-3 months. These are the customers who
constantly switch over to other operators if they find the services
unsatisfactory. These are the customers who look out for cheaper rental
plans. Though it forms the major portion of the churn retaining of such
customers is very important. Such customers can be retained by
offering them cheaper plans compared to the competitors.

• People do find better coverage in urban and semi urban areas but as
you move towards the interior of rural areas people do face the
coverage problem. Though Airtel is coming with more towers in Goa &
Maharastra circles coverage issue will be solved in coming years.

• Some customer had to come to city for bill payment. This problem can
be solved by setting up small Airtel galleries at convenient locations
offering both prepaid and post paid services.

• 36% were found that their queries were not solved. Such special cases
have to be taken into consideration and accordingly a proper retention
tool should be offered.

84% of the churned customers are not willing to join Airtel again even though if
their queries are solved. This can be avoided by keeping a proper track of
why they discontinued and accordingly proper plans can be designed so
as to avoid further problem of churn.

• The problem of insufficient time of billing payment can be solved by

customizing the billing payment cycle to particular customer. This can

49
be done at the time of taking the connection by asking the customer
about the date he is convenient of paying.

50
 BIBLOGRAPY
1) Web sites:
 www.google.com
 www.wikipedia.com
 www.airtel.com

2) Personal interview with area manager

3) Book reference

4)Questionnaire

51
 ANNEXURE
QUESTIONNAIRE

1. For how long you had been the customer of Airtel?

(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year

2. Were you satisfied with the network of Airtel?

(a) Yes (b) No

3. Were you happy with rental plan offered?

(a) Yes (b) No

4. Were the plans too expensive?

(a) Yes (b) No

5. Was there any difference between plans discussed and plan offered?

(a) Yes (b) No

6. Was there sufficient time between bills received date and due date?

(a) Yes (b) No

7. Were you happy with the value added services offered by Airtel?

(a) Yes (b) No

8. Were you happy with the billing payment facility offered by Airtel?

(a) Yes (b) No

9. Were your queries solved by customer care or concerned person?

(a) Yes (b) No

10. Are you willing to join again if your queries are given necessary solutions?

(a) Yes (b) No

52
 ABBREVIATIONS

1. TDMA- Time division multiple access

2. GSM – Global Systems for Mobiles
3. CDMA – Code Division Multiple Access
3. GPRS – General Pocket Radio Service
4. EDGE- Enhanced data rate for G.S.M evaluation
5. CLIP – Caller Line Identification Protocol
6. MMS – Multimedia Messaging Service
8. WCC – World Calling Card
9. CUG – Close User Group
10. SMS – Short Messaging Service
11. FOS – Feet On Street
12. P2P – Pre paid 2 Post paid
13. DSA- Direct sales associates
14. ADC- Airtel Data Card
15. VTS- Vehicle Tracking system
16. FCT- Fixed cellular terminal
17. TRAI- Telecom regulatory authority of India
18. MSE- Mobile switch center
19. IMEI- International mobile equipment identity
20. BTS- Base time receiver system

53
54