CONTENT

1. Introduction

2. Research Methodology

3. Descriptive work on the sub topic of study

4. Data Analysis and Interpretation

4.1. Comparison

4.2 Swot Analysis

4.3 Suggestion & Conclusion

4.4 recommendations

6. Bibliography

7. Appendix

INTRODUCTION

I, Shikhar Verma, being a student of BBA of InderprasthaEngineering college.The project title Marketing Strategies of Bharti AIRTEL andcomparison with Reliance Infocomm. is the analysis of thebig scale sector of communication. This project involves the big scale level provided by Airtel to its customers. The surveywas conducted so as to analyze the big scale sector prevailing in the current industry and the improvement that can be made upon it.

NEED OF THE STUDY

1. To identify the difference between market performance of Airtelindustry and Reliance Infocomm.

2. To study the market of Airtel Industry and Reliance Infocomm. On big scale sector.

3. To compare various parameters of marketing strategies, manufacturing process, technology adopted, productionpolicy, advertising, collaboration, export scenario, futureprospect for the two companies and government policies.

4. To study the level of customer satisfaction in Airtel & RelianceInfo.

5. To study customer buying behavior and factors which influencethe purchase decision process.

6. To study consumer preferences.

7. To study the consumer trend in telecommunication sector.

8. To study competitive marketing strategies adopted by Airtel andReliance Infocomm.

BACKGROUND
The project is an extensive report on how the Airtel Companymarkets its strategies and how the company has been able intackling the present tough competition and how it is coopingup by the allegations of the quality of its products. The reportbegins with the history of the products and the introduction of the Airtel Company. This report also contains the basicmarketing strategies that are used by the Airtel Company of manufacturing process, technology, production

policy,advertising, collaboration, export scenario, future prospectand government policies. The report includes some of the keysalient features of market trend issues.In todays world of cutthroat fierce competition, it is veryessential to not only exist but also to excel in the market.Todays market is enormously more complex. Hence forth, tosurvive in the market, the company not only needs tomaximize its profit but also needs to satisfy its customers andshould try to build upon from there.

RESEARCH METHODOLOGY
Achieving accuracy in any revsearch requires a deep studyregarding the subject. As the prime objective of the project is tocompare Airtel with the existing competitor (reliance infocomm.) inthe market and the impact of WLL on Airtel,The research methodology adopted is basically based onprimary data via which the most recent and accurate piece of firsthand information could be collected. Secondary data has beenused to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further directinterview method, where a face-to-face formal interview was taken.Lastly observation method has been continuous with thequestionnaire method, as one continuously observes thesurrounding environment he works in.

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is veryessential for an organization to know about the view of consumers andtheir competitive products. This survey research may be also aimed as toestimate potential buyer for the product. The objective of the study is asunder:-. To know about customer acceptance of the product. To suggest the steps for the sales promotion of the product. To study the requirement regarding to the future of the product. To analysis the consumer perception about the quality of the services. To find out solution of customers problems.. To know how the company has been successful in encountering theaggressive marketing strategies of competitors.

TYPE OF RESEARCH METHODLOGY

EXPLORATORY:

Type of research carried out was exploratory type of research carried out was exploratory in nature; the objective of such research is toin nature; the objective of such research is to determine the approximate area where thedetermine the approximate area where the drawback of the company lies and also todrawback of the company lies and also to identify the course of action to solve it. For identify the course of action to solve it. For this purpose the information proved usefulthis purpose the information proved useful for giving right suggestion to the company.for giving right suggestion to the company

Data collection method

There two type of method of data collectionthere two type of method of data collection..

Primary data:-

Primary data is that which is theprimary data is that which is the collected for the fist time and thus happencollected for the fist time and thus happen to be originated in character.to be originated in character.

Questionnaire survey :: In the studies a questionnaire is prepared.in the studies a questionnaire is prepared. The questionnaire consists of 20 questions.the questionnaire consists of 20 questions.

Secondary data :: Secondary data refer to the datasecondary data refer to the data that has been already collected .thethat has been already collected .the Secondary data, which has been used to carry out this study, are as follow:carry out this study, are as follow:

Books, journals, magazines, newspapers, books, journals, magazines, newspapers Industry reports, industry reports Companys internet sitecompanys internet site Other relevant studies material andother relevant studies material and websites.

Sample unit

: - new delhi: - new delhithe research process was done by interactingthe research process was done by interacting with number of customers during thewith number of customers during the activities performed, which included,activities performed, which included, markets, cold calling, canopies, etc. Samplemarkets, cold calling, canopies, etc. Sample design consists of random sampling.design consists of random sampling.

Sample sizesample size

: - 50 people: - 50 people

Method of collection

: -: -field procedure for gathering primary datafield procedure for gathering primary data included observation and interview scheduleincluded observation and interview schedule in which the questionnaires were filed by thein which the questionnaires were filed by the interviewer.interviewer.personal interviews through selfpersonal interviews through self administered survey was done to collect theadministered survey was done to collect the data, market research was undertaken, thatdata, market research was undertaken, that was accomplished by performing variouswas accomplished by performing various activities

designed.activities designed.

Research instrumentresearch instrument

::questionnairequestionnaire

The questionnaire was formulated by keepthe questionnaire was formulated by keep in mind the following pointsin mind the following points

: -: -

Giving the respondents clear giving the respondents clear comprehension of the question.comprehension of the question.

Inducing the respondents to co-operate.inducing the respondents to co-operate.

Giving instructions as to what is needed.giving instructions as to what is needed. Identifying the needs to be known.identifying the needs to be known.

Scope of the study

To conduct this research the target population was the mobileusers, Who are using GSM technology.

Target geographic area. Sample size of 50 was taken.

To these 50 people a questionnaire was given, the questionnairewas a combination of both open ended and closed endedquestions.

The date during which questionnaires were filled.

Some dealers were also interviewed to know their prospective.Interviews with the managers of GSM service providers were alsoconducted.# Finally the collected data and information was analyzed andcompiled 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

# Journals # Bharti Circulars # Bharti News Letters

LIMITATIONS
The following were the limitations that were there during the course of thestudy:

1. Limited time period.

2.Less number of respondents.

Biasness of the respondents.

Primary data was collected using the following techniques

Questionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further directinterview method, where a face-to-face formal interview was taken.Lastly observation method has been continuous with thequestionnaire method, as one continuously observes thesurrounding environment he works in.

A brief history of tele sector in India

In the early 1990s, the Indian government adopted a new economicpolicy aimed at improving India's competitiveness in the globalmarkets and the rapid growth of exports. Key to achieving thesegoals was a world-class telecom infrastructure.In India, the telecom service areas are divided into four metros(New Delhi, Mumbai, Chennai and Kolkatta) and 20 circles, whichroughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the mostattractive and "C" being the least attractive. The regulatory body atthat 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 in1995. The first cellular service was provided by, Modi Telstra inKolkatta in August 1995. For the auction, it was stipulated that nofirm can win in more than one metro, three circles or both. Thecircles of Jammu and Kashmir and Andaman and Nicobar had nobidders, while West Bengal and Assam had only one bidder each.In 1996, the Telecom Regulatory Authority of India (TRAI) bill wasintroduced in the Lok Sabha, and the president officially announced

to set up TRAI to separate regulatory functions from policyformulation, licensing and telecom operations. Prior to the creationof TRAI, these functions were the sole responsibility of the DOT.High license fees and excessive bids for the cellular licenses puttremendous financial burden on the operators, diverting funds awayfrom network development and enhancements. As a result, by 1999many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecompolicy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced bya revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensingin 1994-96 was beset by several problems for 3 - 4 years till theNew Telecom Policy of 1999 was announced. Some of theseroadblocks / current position is tabulated below:

ROADBLOCKS CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initialfund requirements for payment of license fees.Inadequately funded businesses / weak and fragmented promotersBusinesses that have since been adequately funded growing atover 60% per annum, while businesses with weak promoterscontinuing to languish - spate of acquisitions / mergers, with 4/5major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and itsrole being accepted by all operators; Deptt of Telecommunications(DOT) restructured, with operations and policy making roles vestedin different bodies.Issues relating to unfavorable interconnect terms for privateoperators, pass through income, intra circle long distance, spectrumavailability and allocation and the like remained unresolved for longperiods.

Interconnect terms since rationalized, risks on pass through incometo DOT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to thesatisfaction of all parties with changes in methodology / revenuesharing, intra circle long distance allowed, spectrum availabilitycleared with vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large up front cash requirements from promoters due toheavy license fee burden in initial stages of deployment Assetbased financing approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee paymentsmitigated with migration to revenue sharing mode allowingpromoters to deploy more capital for capital expenditure;project financing being considered by most financialinstitutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowedas a matter of routine allowing ease of entry / exit - paves the wayfor full control of businesses by foreign companies.Inadequate growth of market / subscribersRoadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased against the former.Despite the recent gains of the cellular industry, not everything isrosy. The cellular penetration rate is still very low at 0.8 percent in anation of over one billion people.In recent years, many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operatingenvironment and bureaucracy. In 1999 alone, Swisscom pulled outfrom Sterling Cellular, Telstra from Modi Telstra and both theTelecom Organization of Thailand and Jasmine International fromJT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand and Bezeq exited fromFascel. In June 2001, British Telecom exited from Bharti Cellular.Bell South International has also indicated its intention to pull outfrom Skycell Communications, and Hong Kong-based Distacom isseeking to sell its stake in Spice Communications. First Pacific's(based in Hong Kong) continued

commitment to Escotel isuncertain, and the former is reviewing various options.The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping across the Indian cellular industry inrecent years. Hong Kong-based Hutchison Whampoa, viaHutchison Telecommunications (HK), acquired major stakes inSterling Cellular (December 1999), Usha Martin Telecom (mid-2000)and Fascel (September 2000). Through a partnership with

localcompany, Kotak Mahindra Finance, Hutchison Whampoa practicallycontrols Fascel and Usha Martin Telecom, thus circumventing the49 percent limit on foreign ownership in Indian cellular operators.Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired control of JT Telecom,which was later renamed Bharti Mobile (December 1999), andSkycell Communications renamed Bharti Mobinet (August 2000).

Bharti also acquired the Punjab license of Essar and startedoperations, giving competition to the lone operator there, SpiceCommunications. Going forward, Bharti is likely to merge all itscellular companies into one entity.Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. Bhartiemerged as the No. 1 bidder with eight new licenses, followed byEscotel with four, Hutchison with three, and Reliance and Ideacellular with one each. Bharti and Hutchison have alreadycommenced operations in all the circles while Idea is set to launchin Delhi. Escotel and Reliance have not made any headway.BHARTI, the third cellular operator for Delhi and Mumbai, startedservices in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002.This was followed by Tamil Nadu in July 2002. A nationwide launchwas scheduled for 2 October 2002. However, this has beenpostponed until after mid October. Once BSNL rolls out its service,most telecom circles will have four cellular operators. There will betremendous 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 cameout with its long-awaited initial public offering (IPO) in January 2002.Leveraging on the success of its cellular service, the company got avery good response from the primary market. The total size of theIPO was 185 million shares at a floor price of Rs10. The issue wasoversubscribed by more than 2.5 times, netting Rs8.3 billion. Thiswill be used to fuel its investment in long-distance, basic andcellular services.As of October 2002, only BPL Mobile has launched commercialgeneral packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea haveGPRS-enabled networks, there is caution on their part to launch theservice. With hardly any applications, the success of GPRS remainsa question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operatorsare actively promoting their brand and service portfolio throughhigh-visibility advertising and promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have been advertisingaggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility.Customer-focused cellular operators benefitprograms. with Orange the in activities are gaining of traction among consumer and

establishment Mumbai

longstanding "Orange

offers

Holidays"

"OrangeMonsoon Offers" at very attractive rates and added benefits likediscounts on airfare, food and beverages, among others. Othersoffer special privileges in retail outlets, cinemas and music shops.

Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been thefocus. Few operators have concentrated on offering differentiatedservices for businesses. However, as operators realize that offeringbasic voice and Short Message Service (SMS) will get them thenumbers but not the margins, some are now seriously looking at theenterprise segment for provisioning superior services.Cost-centered solutions like closed user group (CUG), value-addslike unified messaging and instant alerts are being offered.A variety of mobile applications are finding takers among theenterprise segment. Bharti is in the process of introducing a facilityto fleet management companies so that they can improve theefficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are alsoinstalling a global system for mobile communications inside avehicle to help trace lost vehicles and track down stolen cars.Corporations can choose enhanced services like user-defined callrouting to prevent misuse. Calls can be barred, limiting access toselect numbers and diverting calls to one single number.Broadcasting services are also quite popular, especially among fastfood centers that have a central number. Group SMS is quitepopular, especially among enterprises both in the service as well asthe fast-moving consumer goods (FMCG) segment that have alarge field force and need to provide regular updates on inventorystatus, discount schemes and movement of goods from warehouseto the retail outlet. Banks too find bulk SMS service very useful toforward transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantlyfocus on differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G wienable operators to offer data services. This is an opportunityto customize and differentiate better.

The entry of state-run operators like BSNL and BHARTImeans that prices will no longer be controlled, thus there isless chance of a cartel being formed.

Network coverage in terms of geographic spread and qualityof 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 anational operator is advantageous.

Limited mobility wireless in local-loop services (by fixednetwork service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need tostreamline their customer relation activities and adoptaggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the IndianTelegraph Act of 1885. A document buried in the sands of time. Thenext major policy document, which was produced, was the NationalTelecom Policy of 1994, a consequence of the on going process of liberalization.YearEvent

1851First

telephones was

in

India1943Nationalization created1986Creation of

of

telephone and

companies1985DoT

BHARTI

VSNL1991Telecom equipment liberalized1994Licenses for paging1994Telecom policy announcedSeptember 1994Guidelines for private sector participation inbasic servicesNovember 1994Cellular licenses issued for metrosDecember 1994Tenders for cellular licenses in 19 cities apartfrom 4 metrosJanuary 1995Tenders for 2nd operator in basic services apartfrom DoT on circle basis.August 1995VSNL launches Internet servicesJanuary 1996TRAI formedNovember 1998Internet policy announcedThe National Telecom Policy of 1994 document, which laid outbroad policy guidelines rather than a series of action points. Likeother policies, it sought to achieve the impossible in finite time likeimprove quality of service and its availability, wide coverage (a phone in every village), at reasonable rates, etc. The targets inquantifiable terms were installation of 9.5mn additional lines,telephone on demand by 1997, and a PCO pop of 500. The EighthPlan had also allowed private operators in value added services. Tofacilitate licensing, the nation was divided into 20 circles (akin to astate) for basic and 21 circles for cellular telephony. Mumbai falls inMaharashtra circle and Delhi in itself a circle.The basic premise on which competition has been introduced is thatevery circle will have one private operator apart from DoT/ BHARTIfor basic and two operators for cellular. DoT/ BHARTI have theoption to become the third cellular operator in future.Government did not achieve most of its stated targets. The basictheme, which was broadening the reach of telephony in India, hasnot been met. Even liberalization policies were not implementedproperly. The regulator TRAI was set up after delays and confusionand even after its creation, DoT continued to fight with it in courts. Itwas also affected by the resource crunch, and financing options likeBOT, BOOT and BOLT was not used at all. The major policydirection it showed was to allow private sector entry in both basicand value

added services. The intention, though noble failed to achieve its goals because of improper implementation, theeconomic costs are still borne by the end user.The telecom sector has witnessed some fundamental structural andinstitutional reforms in the past decade. telecom equipmentmanufacturing was completely deregulated in 1991. Value-addedservices (including cellular services) were thrown open to privatesector participation in 1992. Basic services were opened to

privateparticipation in 1994 by dividing the country into 21 telecom Circlesand allowing one private operator per Circle to compete with DoT.An independent telecom regulatory Authority of India was set up in1997. A new Policy for Internet Service Policy Providers (ISPs) wasannounced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of DOT, separating policymaking function and service provision andcorporatization of DOT's operational network are two major institutional reforms, which need to be implemented.

Company Profile of bharti airtel

COMPANY PROFILE OF BHARTI AIRTEL

Vision"As we spread wings to expand our capabilities and explore newhorizons, the fundamental focus remains unchanged: seek out thebest technology in the world and put it at the service of our ultimateuser: our customer."These are the premise on which Bharti Enterprises has based itsentire plan of action.Bharti Enterprises has been at the forefront of technology and hasrevolutionized telecommunications with its world-class products andservices.Established in 1985, Bharti has been a pioneering force in thetelecom sector. With many firsts and innovations to its credit,ranging from being the first mobile service in Delhi, first privatebasic telephone service provider in the country, first Indian companyto provide comprehensive telecom services outside India inSeychelles and first private sector service provider to launchNational Long Distance Services in India. Bharti had approximately3.21 million total customers nearly 2.88 million mobile and334,000 fixed line customers.

Its services sector businesses include mobile operations in AndhraPradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtracircle, 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 andTamil Nadu and nationwide broadband and long distance networks.Bharti has recently launched national long distance services byoffering data transmission services and voice transmission servicesfor calls originating and terminating on most of India's mobilenetworks.The Company is also implementing a submarine cable projectconnecting Chennai-Singapore for providing internationalbandwidth.Bharti Enterprises also manufactures and exports telephoneterminals and cordless phones. Apart from being the largestmanufacturer of telephone instruments, it is also the first telecomcompany to export its products to the USA.Bharti Tele-Ventures' strategic objective isto capitalise on the growth opportunities that the Company believesare available in the Indian telecommunications market and consolidate its position to be the leading integratedtelecommunications services provider in key markets in India, with afocus on providing mobile services.The Company has developed the following strategies to achieve itsstrategic objective:

Focus on maximizing revenues and margins;

Capture

maximum

telecommunications

revenue

potential

withminimum

geographical coverage;

Offer multiple telecommunications services to providecustomers with a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced mobile data services;

Focus on satisfying and retaining customers by ensuring highlevel of customer satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieveoperational efficiencies Businesses

Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Competitive Strengths

Bharti Tele-Ventures believes that the following elements willcontribute to the Company's success as an integratedtelecommunication services provider in India and will provide theCompany with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's totalmobile subscribers resided in the Company's fifteen mobilecircles. These 15 circles collectively accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company tobetter anticipate industry trends and capitalize on newtelecommunications-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 executionskills; and

The Company's strong relationships with internationalstrategic and financial investors such as SingTel, WarburgPincus, International Finance Corporation, Asian InfrastructureFund Group and New York Life Insurance.

Brand Architecture:

Bharti is working on a complex

three-layered branding architecture

to:

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group itscorporate identity as well as defining its goal to become anational builder of telecoms infrastructure.

AirTel -

The flagship brand for cellular operations all acrossthe country.

Touchtel

- The brand earmarked for basic service operations.

India One

- The brand for national long distance (NLD)telephonyThough the costs of creating new brands are heavy but thegroup wants to create

distinct independent brands toaddress different customers and profiles.

Brand Strategy:

To understand the brand strategy, lets first look at the brand buildingexercise associated with AirTel a brand that had to berepositioned recently to address new needs in the market.When the brand was launched seven years ago, cellular telephonywasnt a mass market by any means. For the average consumer,owning a cellular phone was expensive as tariff rates (at Rs 8 aminute) as well as instrument prices were steep sometimes asmuch as buying a second-hand car.Bharti could have addressed the customer by rationally explaining tohim the economic advantage of using a mobile phone. But Sachdevsays that such a strategy would not have worked for the simplereason that the value from using the phone at the time was notcommensurate with the cost.Instead of the value-proposition model, we decided to address thesensory benefit it gave to the customer as the main selling tack. Theidea was to become a badge value brand, he explains.So the AirTel leadership series campaign was launched showingsuccessful men with their laptops and in their deluxe cars using themobile phone. In simple terms, it meant Airtel was positioned as an

aspirational brand that was meant for leaders, for customers whostood out in a crowd.Did it work? Repeated surveys following the launch showed thatthere were three core benefits that were clearly associated with thebrand leadership, dynamism and performance.These were valuable qualities, but they only took AirTel far enoughto establish its presence in the market. As tariffs started dropping, itbecame necessary for AirTel to appeal to a wider audience. And thevarious brand-tracking exercises showed that despite all these goodthings, there was no emotional dimension to the brand it wasperceived as cold, distant and efficient.Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. Thereason? With tariffs identical to competitor Reliance Infocomm. androughly the same level of service and schemes, it had now becomeimportant for Bharti to humanize AirTel and use that relationship asa major differentiation.The brand had become something like Lufthansa cold andefficient. What they needed was to become Singapore Airlines,efficient but also human. A change in tack was important becausethis was a time when the cellular market was changing. The leadership series was okay when you were wooing the crmede la crme of society. Once you reached them you had to expandthe market so there was need to address to new customers.By that time, Bharti was already the leading cellular subscriber inDelhi with a base of 3.77 lakh (it now has 1.2 million customers).And with tariffs becoming more affordable as cell companiesstarted cutting prices it was time to expand the market.How could Bharti leverage this leadership position down the valuechain? Surveys showed that the concept of leadership in thecustomers minds was also changing. Leadership did not meandirecting subordinates to execute orders but to work along with ateam to achieve common objectives it was, again, a relationshipgame that needed to be reflected in the AirTel brand.Also, a survey showed that 50 per cent of the new customerschoose a mobile phone brand

mostly through word-of-mouthendorsements from friends, family or colleagues. Thus, existingcustomers were an important tool for market expansion and Bhartinow focused on building closer relationships with them.That is precisely what the brand tried to achieve through its newpositioning under the AirTel

Touch Tomorrow

brand campaign.

This set of campaigns portrayed mobile users surrounded by caringfamily members. Says Sachdev: The new campaign andpositioning was designed to highlight the relationship angle andmake the brand softer and more sensitive.As it looks to expand its cellular services nationwide to eight newcircles apart from the seven in which it already operates Bharti isnow realizing that there are new compulsions to rework the AirTelbrand, and a new exercise is being launched to this effect. Rightnow, the company is unwilling to discuss the new positioning indetail. But broadly, the focus is on positioning AirTel as a power brand with numerous regional sub-brands reflecting customer needsin various parts of the country.If AirTel is becoming more humane and more sensitive as a brand,Bharti has also understood that one common brand for all cellular operations might not always work in urban markets that are nowgetting increasingly saturated.To bring in new customers, the company decided that it needed tosegment the market. One such experiment, launched last year, isYoutopia, a brand aimed at the youth in the 14 to 19 age bracketand for those who are young at heart. With its earlier positioning,AirTel was perceived as a brand for the well-heeled older customer;

there was nothing for younger people. With Youtopia, AirTel hopedto reverse that.In order to deliver the concept, AirTel offered rock bottom tariff rates(25 paise for 30 seconds) at night to Youtopia customers a timewhen they make the maximum number of calls. It also set upmerchandising exercises around the scheme like a special portalfor young people to buy things or bid for goods.The company is now looking at offering other services at affordableprices to this segment which include music downloads on the mobileand bundling SMS rates with normal calls to make it cheaper for young people to use.The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name. The brandwas created to offer mobile users Internet-interface services or whatis known as WAP (Wireless Application Protocol).The idea was to bring Internet and mobile in perfect harmony. Thename was chosen from the popular movie title

It Takes Two ToTango

: basically, you need the two services to tango to offer customers a new choice, says Sachdev.

This, however, had less to do with the branding exercise as withinefficiency of service (accusingly slow download speeds) and thelimited utility of WAP services.Subsequently, the ads were withdrawn, but the company re-iteratedthat the branding exercise could be revived because Tango will bethe brand to offer GPRS services or permanent Internetconnectivity on the mobile phone which AirTel is expected tolaunch soon.

The Magic:

Perhaps the more ambitious experiment has been with

Magic

thepre-paid card. The idea was to make the brand affordable,accessible and, most importantly, feasible as a means of expandingthe market even faster.

PHASE I

Magic was aimed at bringing in infrequent users of a mobile phoneinto the market and assure him that he would have to pay only if hemade a call. Such a customer used the phone sparingly mostlyfor emergencies and was not willing to pick up a normal mobileconnection with its relatively high rentals (pre-paid cards do notinclude rental charges).To achieve its objectives Bharti did three things.

One, the product was made available at prices ranging fromRs 300 to Rs 3,000 with no strings attached and was simple tooperate.

Two, the product was made accessible and distributed throughsmall stores, telephone booths and even kirana shops so thatthe offering was well within arms reach.

Third, to make the product more approachable to thecustomer, the company came with vernacular ad campaignslike

Magic Daalo Se Hello

which appealed to local sensibilities.This apart, the company roped in Karisma Kapoor and Shah RukhKhan for a major ad campaign all across Delhi, a ruse that saw thenumber of subscribers go up from 5.47 lakh to 12 lakh today,overtaking Essars branded pre-paid card

Speed

, which waslaunched much ahead of Magic. The company is now re-working itsMagic strategy even further.Earlier, the branding strategy was aimed at roping in only interestedcustomers that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having beenallowed limited mobility at far cheaper rates, mobile serviceproviders could find themselves under threat again.That is why the new exercise is aimed at co-opting non-adopters.While the exact strategy is under wraps, insiders say the newbranding strategy would be aimed at offering them value which theyhad not perceived would be available from using a pre-paid card.

PHASE II -

Bharti used AirTel Magic to build a strong value proposition andaccelerate market expansion through Indias first national pre-paidcard TV brand campaign

First time ever in India - any pre-paid card brand goes on TV

A combination of the film genre exposed through the TV mediumdesigned to connect with the masses of India

Youth based - romance driven strategy platform makes the valueproposition of AirTel Magic - Mumkin Hai come alive

All elements - user imagery, context, tone & language created toconnect the category to the lives of the SEC B & SEC C segment the middle class nonmobile user.

AirTel Magic positions itself on the platform of being excellent for emergency situations - increasing productivity as a part of everyday life.

Sharukh Khan makes everything in life possible whileromancing pretty Kareena Kapoor with AirTel Magic, Indiasleading pre-paid mobile card.

AirTel today unveiled its strategy for market expansion with thelaunch of its new AirTel Magic pre-paid card brand campaign Magic hai to Mumkin hai. The strategy is targeted at the non-user segment defined as young adults, 15-30 years of age; in the Sec B& C segment is aimed at accelerating market expansion. The valueproposition is centered around a persons desire to make all his /her dreams, ambitions & aspirations instantly possible. The newcampaign for AirTel Magic is all about empowering millions of Indians to be on top of their lives.The brand is positioned to be relevant to the mass-market who wantto make all their dreams, hopes & desires come alive instantly.(At just Rs.300/- per month AirTel Magic is so easy to buy.)Improving productivity, letting you befriend the world and openingup new horizons. It gives you the freedom to control your life in away never possible before. Indeed, anything that you think ispossible is possible with AirTel Magic. The new brand sloganMagic hai to Mumkin hai has been specially created to capture thiseffectively.This strategy is designed to help us talk to this segment directly inthe tone, manner & language of the masses. The Mumkin hai

value proposition will help us expand the market and gain a higher percentage of market shares in the process.The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this can do or Mumkin Hai spirit (infact that is the reasonthey were selected as brand ambassadors). Sharukh rose from aTV actor to become Indias top film star and national heartthrob.Kareenas success is due to her attitude, talent, hard work and thesheer ability to make a mark in such a short time. Both these starshave said Mumkin hai and made it happen for themselves.The genre of this new strategy & campaign is Hindi cinema led.This genre connects millions across India. The spirit of romance,dancing the Indian cinema, well known to most as Bollywood,holds millions of Indians together as one.The new TV campaign of AirTel Magic crafted in the Hindi filmidiom, magnifies the empowering optimism of Mumkin Hai, in theendearing situation of a boy-girl romance. Where Sharukh Khan,sets his eyes on Kareena Kapoor and wins her love with the help of AirTel Magic. (Poignantly conveying that special feeling we all getwhen a dream is made possible and a victory of the heart is won).The strategy & new brand campaign is targeted at the largeuntapped base of intending mobile customers from Sec A, B & C.

The estimated addressable market of such customers in the nexttwo years is around 25 million in AirTels 16 states. The newstrategy aims at correcting the perception that the mobile categoryis useful mainly for business or work related scenarios.

The new strategy, brand positioning & brand slogan is an outcome of an extensivenationwide research and is an integral part of AirTel Magics new multimedia campaign. Thecampaign has been created by Percept Advertising.

PHASE III -

Bharti used AirTel Magic to build a strong value proposition andaccelerate market expansion through Indias first national pre-paidcard TV brand campaign

First time ever in India - any pre-paid card brand gives suchfreedom to recharge any value

A combination of the film genre exposed through the TV mediumdesigned to connect with the masses of India

Youth based - romance driven strategy platform makes the valueproposition of AirTel Magic - Aisi azaadi aur kahan? come alive

Sharukh Khan makes everything in life possible AirTel todayunveiled its strategy for market expansion with the launch of itsnew AirTel Magic pre-paid card brand campaign Magic hai to Mumkin hai. . The value proposition is centered around apersons desire to make all his / her dreams, ambitions &aspirations instantly possible. The new campaign for AirTelMagic is all about empowering millions of Indians to be on top of their lives.The brand is positioned to be relevant to the mass-market who wantto make all their dreams, hopes & desires come alive instantly .Ata amount of your choice you can recharge your account withavailable validity time .Improving productivity, letting you befriendthe world and opening up new horizons. It gives you the freedom tocontrol your life in a way never possible before. Indeed, anythingthat you think is possible is possible with AirTel Magic. The newbrand slogan Aisi azadi aur kahanhas been specially created tocapture this effectively.

Other Brand Building Initiatives:-

The main idea is to stay ahead of competition for at least sixmonths. Working on the above game plan Bharti is constantlycoming up with newer product offerings for the customers.The focus, of course, is to offer better quality of service.

To make the service simpler for customers using roamingfacilities, Airtel has devised common numbers for subscribersacross the country for services like customer care, foodservices and cinema amongst others.

It will also launch a unified billing system across circles so,customers moving from one place to another do not have toclose and then again open new accounts at another place.

To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questionsand their answers have been stored on the computers.

Bharti expects that most of its new customers (one estimate isthat it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card segment. So, theymust be given value-added products and services

whichcompetitors dont provide.

Bharti, for the first time for a cellular operator, has decided tooffer roaming services even to its pre-paid customers, but thefacility would be limited to the region in which they buy thecard. To ensure that customers dont migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), thecompany is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone.

The loyalty program will not be only for a badge value, it willprovide real benefits to customers. The idea is to create anAirtel community.

Another key area which Bharti is concentrating its attentionupon is a new roaming service launched in Delhi under whichcalls of a roaming subscriber who is visiting the city will berouted directly to his mobile instead of traveling via his homenetwork.

The company also offers multi-media messaging systemsunder which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or storeit in the phone. The cost per picture is between Rs 5 to Rs 7.

Bharti is also aware that it has to make owning a ready-to-usecellular service much easier than it is today. A key area is toincrease the number of activation centers. Earlier Bharti had250 Airtel Connect stores which were exclusive outlets (for its

services) and about 250 Airtel Points which were kiosks inlarger shops. Now activation can be done by all of them, andnot only by Connect outlets, all within 15 to 20 minutes. Incomparison, the competition takes two to four hours.

Pre- paid cards are really catching up with the mobile phoneusers and it is actually helping the market to increase. First,they are easier to obtain and convenient to use. Unlike post-paid, one need not pay security deposits for picking up a pre-paid card. It is often available even with paanwalas. As befits afast-moving consumer service, the game is now movingbeyond price to expanding distribution reach and servicing awell-spread-out clientele with technology and strategicalliances. Bharti is focusing on two factors to make pre-paidcards more attractive. Keeping the entry cost low for consumers and making recharging more convenience.

Bharti is in the process of launching a new system in alliancewith Mumbai-based company Venture Infotech which willenable a pre-paid card user to renew his subscription by justswiping a card. The system will not only save users the hassleof going out and buying a card every time it expires but also

enable mobile companies to reduce the cost of printing anddistributing cards.

Bharti Televentures has tied up with 'Waiter on wheels,' acompany delivering food at home, to reach its Magic pre-paidcards to subscribers' doorsteps. The company is also joininghands with local grocery shops which will enable users torecharge their cards by just making a phone call to the shop.Apart from improving the convenience of recharging, mobileoperators are beefing up their distribution channels. Thecompany is constantly innovating to enhance the valueproposition for its pre-paid service. They are leveragingtechnology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile On theSpot) subscribers.

Bharti Cellular has also launched a special service,CareTouch, for high-value, corporate customers, providingthem with instant, single-point access for any assistance theyrequire. Customers can dial 777 and enjoy a slew of services,which includes easier payment of bills, service on prioritybasis, and value-added services without any additional paper work. Bharti Cellular is offering a range of services without going through an interactive voice recorder ensuring that theysave time. Dedicated CareTouch executives are expected toassist customers with any service on priority basis. Besidesthe regular proactive reminder calls for bill payment,customers can also call CareTouch for bill payments at free of cost.

AirTel presented

MTV Inbox;

the first on-air SMS basedinteractive music dedication show exclusively for AirTel andAirTel Magic customers. Highly interactive VJ based show withrealtime feedback mechanism. Both brands joined hands totarget the high growth youth segment.

Bhartis View on its Branding strategy:-

First, brand building efforts in todays context have to be seen in amore holistic manner. Delivering value on a sustained basis isperhaps the most potent key to build a brand that lasts.Unflinching orientation to customer needs is the second keysuccess factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at thesame time, becoming more individualistic in their needs and far more demanding with the passage of time.Proactive tracking of shifts in consumer behavior, anticipatingredefined or emerging customer needs, and then reacting in real-time are essential to attract and retain customer loyalty a keyelement of creating brand equity in the present situation.Customizing the product (and communication of its benefit) to meetthe specific needs of various consumer/customer sub-segments isthe third element in creating brand appreciation.As far as allocation of time and financial resources are concerned,too many companies mistakenly allocate a disproportionate amounton mere advertising and promotion. This is not to say thatadvertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budgetfor an increasingly higher spend on their brand promotion but thishas to be undertaken in tandem with enterprise-

widereengineering of the business philosophy and core design,production, and delivery operations for the product itself.The positive spin to this argument is that by first addressing thefundamentals, the enterprise itself becomes more competitive. Thiscan be the beginning of a virtuous cycle wherein brand equitycontinues to increase as the enterprise sustains delivery of anappropriate product or service at an ever increasing value.It is, however, crucial to note that in the years to come, not only willthe cost of building a regional or a national (or an international)brand will continue to rise but also the time taken to do so will belonger and will need sustained and focused efforts.

Comparison of marketing strategies betweenBharti Airtel and Reliance Infocomm.

The sub main purpose of this report is to compare the marketingStrategies adopted by Bharti Airtel and its rival RelianceInfocomm.The comparison shows how both of the companies have beenChallenging each other to gain market shares.

Why comparison with Reliance Infocomm?

Bharti Airtel is the leader in telecommunication sector.

Bharti Airtel holds the lion share of market of communication sector. However, Reliance has been giving tough competition to Bharti Airtel. Reliance Infocomm is the second largest player and share holder inCommunication sector. Since its launch Reliance info. has been adopting aggressive marketingStrategies. The comparison shows how reliance info. Captured 22% market share inOne month of its first launch of postpaid subscription in 2002.AD.

With a different technology cdma Reliance creates it own market. Reliance Info. today deals in every business of communication sector.

making and changing the strategies to capture the market shares

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)Demographic segment middle income groupsPeople age group of 20 to 28 year

Target marketing

People living cities and towns.Poor and middle income groups.Youngsters in big cities.Businessmen

Positioning

Creating brands (Sharukh khan & Sachin Tendulker)Ads and promotions

Marketing mix

Price : low price strategyPlace : maximum outlets and service centersProduct : verities available for various groupsPromotion: various schemes for pre-paid and post-paid

MAR KETING STRATEGIES OF RELIANCE INDIAMOBILE.(RIM)

Rim target the rural India

The main targeted customers of Rim are from rural India.By offering cheap and light mobile sets Rim attracts most of the customersOf small villages and towns.

Offering cheap handsets

Rim offers cheap and free connections to all costumers.The cost for Rs-700\set and onward

.Free support and services

In every district and big towns rim opens its service centers to provide better support and services.

Strong logistics and supply chain

Rim has a strong logistict and supply all over India.In every small town the potential costumers can easily purchase the rimsets.

Targeting youngsters in metropolitansRim attracts youngsters by offering colorful handset atvery low prices.

SERVICES PROVIDED BY BHARTI AIRTEL

 Mobile services with GSM technology  Fixed-line connections  National and international long distance services  VSAT, Internet services and network solutions  Broadband services

SERVICES PROVIDED BY RELIANCE INFOCOMM.

 Mobile services with CDMA technology  fixed-line telephone services  Universal Internetworking  VoIP (Voice over Internet Protocol)  Interactive Television  Visual Communication  Broadband Portal  Telecommuting the people who are in the agegroup of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximumbusiness to the mobile operators. This segment constitutes theyoung executives and other office going people. They are 65% of the total people who were interviewed. The next age group are thepeople who are 28-35 years old. They are 20% of the total. Theyare those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 yearsold. They are school and college going students and carry mobilephones to flaunt. They are 15% of the total interviewed people.

Occupation Graph

As the above graph shows that 55% of the total people interviewedare working. So, these people are the ones who are the maximumusers of mobile phones. They are the young executives, managers,Tele - callers etc. who require mobile for their official purposes. The

OCCUPATION15%55%20%10%STUDENTSEXECUTIVESHOUSEHOLDSOT HERS

next category is the households, who are either housewife, smallunits which operate from their homes etc. They are 20% of thewhole. The next segment is the students. They are 15% of thewhole. And 10% of the whole is categories who are theprofessionals.

On the basis of analysis of the questionnaire I have found that themaximum no. of people who use mobile phones is in the age groupof 20 to 28. Who are the young executives and other office goers?They spend a maximum of RS. 500 as their mobile expense.There is more no. of prepared cards than post paid cards. Themobile users want to spend money side by side than to spendmoney at the end of the month on a big bill.Now when I compared Airtel with its competitor from the point of view of the consumer I found that on the basis of Tariff plan, valueadded services and billing accuracy Airtel is at par or ahead of itscompetitor but in the case of customer care and availability they lagbehind there competitors. As, Airtel has a hold in the marketbecause it has the maximum no. of connections, so it must improveupon it customer services. As far as WLL is concerned people areaware about it but not many people are aware about Tata. They onlyknow more about Reliance. People at this point of time are notinterested to switch over from GSM to WLL.

SUGGESTIONS

Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned.

1. PRODUCT

 Modification must be brought about in AIRTEL, interms of quality. Its demand should be increased.

2. PLACE

 The brands must be made available easily in, PCO &general stores. 3. PROMOTION

 Company awareness.

must

undertake

extensive

promotionalactivities

like

advertisements must be released indifferent Medias to create brand

 Free samples should be distributed among theprospects. Sales promotion tools like gifts, contestsand coupons must be given to retailers as well ascustomers and prospects.

 Catalogues should be distributed amongcustomers. SWOT ANALYSIS

Strengths

 Being one of the largest companies in India the companyhas achieved a degree of focus in its core business of itsproducts.

 It has a strong brand name, superior quality products andan enviable distribution network.

 It has a clear and well-defined organization structure andlimits of financial authority.

 Increase in advertisement spends affect the companysmargins.  The companys bottom line falls victim to the bloated andhighly paid workforce, which affects its margins.

Weakness:

 Little efforts over the Advertising of products.  Distribution channel is not accurately categorized.  Premium priced products, hence cant compete in low pricesegment.  No separate strategy for rural market. 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 marketdiversification.  Exports of products will also have huge chances in thecoming years.  Airtels business has ample scope for gaining market sharefrom the unorganized sector. Rural penetration too holdsvast potential to bring about growth.

Threats

 The slowdown in the economy has restricted topline growthof most FMCG majors and for Airtel also it will be difficult tomaintain historical growth rates in such a depressedscenario.

 Companys major raw materials are influenced bygovernment policies / controls as well as vagaries of themonsoons. Fluctuations in the prices of raw materialswould have significant impact on costs and margins of thecompany.

 Moreover, inordinate hike in Broad Band Internet productswould also increases companys production and distributioncost.

RECOMMENDATIONS

I have made following recommendation to the companyafter do ing the summer training there:

The company should modify its credit policy as theyonly target the cash paying customers who are noteasy to trace.

The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed bythe exporters that their receipts from company doesntmatches with the samples quality shown beforegiving orders.

The company should makes its marketing strategyflexible enough in order to face competition.

The company should keep an eye on the proper delivery of the goods to exporter on time, as it hasbeen recommended by exporters to make the deliveryon time.

The company rate policy must be flexible enough tocatch new customers because if company offers lower price to a new customer then he may continue buy thegoods and can be a permanent customer for thecompany.

The company should offers such rate in the market sothat it may able to catch a biger market share and itshould be able to compete with the local traders andcommission agents while having a brand name.The company should take the opinion of exporters fromtime to time to know what problems they are facing fromthe companys side? And if any change they require inpresent supplying condition?

LIMITATIONS

No project is without limitations and it becomes essential tofigure out the various constraints that we underwent duringthe study. The following points in this direction would add toour total deliberations:-

1. During the study, on many occasions the respondentgroups gave us a cold shoulder.

2. The respondents from whom primary data was gatheredany times displayed complete ignorance about thecomplete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers refuses to cooperate withthe queries.

5. Some retailers/wholesellers gave biased or incompleteinformation regarding the study

6. Money played a vital factor in the whole project duration.