special study project final

8/2/2019 Special Study Project Final

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Special Study ProjectOn

Comparison of Bharti Airtel Ltd.

with the competitors

Submitted to: Prof.Pratik Kanchan

Submitted By:

Janak Patel (2938) & Hiten Maniyar (2920)


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CONTENTS

ACKNOWLEDGEMENT -- 3 PPRREEFFAACCEE ---- 44 EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY ---- 55 OBJECTIVE OF THE STUDY -- 6 RESEARCH METHODOLOGY -- 7 INTRODUCTION -- 9 COMPANY PROFILE -- 13 FINDINGS AND ANALYSIS -- 17 SWOT ANALYSIS -- 27 BCG MATRIX ANALYSIS -- 29 PORTERS FIVE FORCES ANALYSIS -- 3O

CONCLUSION -- 32

RECOMMENDATION -- 33 LIMITATIONS -- 34 BIBLIOGRAPHY -- 35 QUESTIONNAIRE -- 36


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Acknowledgment

We are sincerely thankful to all those people who have been giving us any kind

of assistance in the making of this project report.

We express our gratitude to Mr. Pratik Kanchan who has through his vast

experience and knowledge has been able to guide us, both ably and

successfully towards the completion of the project. We express my gratitude,

B.K.School Of Business Management. We hereby, make most of the

opportunity by expressing my sincerest thanks to all my faculties whose

teachings gave us conceptual understanding and clarity of comprehension,

which ultimately made our job more easy. Credit also goes to all our

classmates whose encouragement kept us in good stead.

Their continuous support has given us the strength and confidence to

complete the project without any difficulty.

Last of all but not the least we would like to acknowledge our gratitude to the

respondents without whom this survey would have been incomplete.


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Preface

The project title Comparison of Bharti Airtel Ltd. With competitors is the

analysis of the big scale sector of Telecom Service Provider. This project

involves services provided by Airtel to its customers. The survey was

conducted to analyze the telecom services prevailing in the current industry

and the improvement that can be made upon it and the differences in service

quality that exists in the market. What the customers preferences are provided

by the Airtel?


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Executive Summary

This report on bharti airtel is done to find out certain objective regarding the

strategic approach adopted by bharti airtel to compete strongly in competitive

telecom market. Airtels marketing strategies are analyzed by using various

models like SWOT, BCG Matrix and Porters Five Forces Model.

The outcome from the various model are properly analyzed to find out the

various aspect like companies position and competitors position in the market.

This report on airtel gives the brief history about the company and marketing

strategies adopted by the company.

SWOT analysis helps to find out the weak points of the company and find out

the way to overcome this problem.

The Opportunities and different strategic options can be used by airtel under

the different market condition.


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Objective of the Study

What marketing strategies the airtel is implementing to defend and

increase the market share.

To find out who are the competitors and market share of the competitors

and what strategies airtel can implement to beat the competitors.

What technological advantages airtel needs to bring in order to achieve

better satisfaction of the customers.


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Research Methodology

Achieving accuracy in any research requires in depth study regarding the

subject. As the prime objective of the project is to compare Airtel with the

existing competitors in the market and the impact Airtel, the research

methodology adopted is basically based on primary data via which the most

recent and accurate piece of first hand information could be collected.

Secondary data has been used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method

The main tool used was, the questionnaire method. Further direct interview

method, where a face-to-face formal interview was taken. Lastly observation

method has been continuous with the questionnaire method, as one

continuously observes the surrounding environment he works in.

Procedure of research methodology

# To conduct this research the target population was the mobile users, who

are using GSM technology.

# Target geographic area and Sample size of 110 was taken.

# To these 110 people a questionnaire was given; the questionnaire was a

combination of both open ended and closed ended questions.


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# Some Company Outlets were also interviewed to know their prospective.

Interviews with the managers of GSM service providers were also conducted.

# Finally, the collected data and information was analyzed and compiled to

arrive at the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Bhartis history, current issues, policies,

procedures etc, wherever required.

# Internet

# Magazines

# Newspapers

# TRAI press release data

# Bharti Circulars


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Telecom History & Introduction of Airtel

In the early 1990s, the Indian government adopted a new economic policy

aimed at improving India's competitiveness in the global markets and the

rapid growth of exports. Key to achieving these goals was a world-class

telecom infrastructure.

In India, the telecom service areas are divided into four metros (New

Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly

correspond to the states in India. The circles are further classified under

"A," "B" and "C," with the "A" circle being the most attractive and "C" being

the least attractive. The regulatory body at that time the Department of

Telecommunications (DOT) allocated two cellular licenses for each

metro and circle. Thirty-four licenses for GSM900 cellular services were

auctioned to 22 firms in 1995.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was

introduced in the Lok Sabha, and the president officially announced the

TRAI ordinance on 25 January 1997. The government decided to set up

TRAI to separate regulatory functions from policy formulation, licensing and

telecom operations. Prior to the creation of TRAI, these functions were the

sole responsibility of the DOT.


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High license fees and excessive bids for the cellular licenses put

tremendous financial burden on the operators, diverting funds away from

network development and enhancements. As a result, by 1999 many

operators failed to pay their license fees and were in danger of having

their licenses withdrawn. In March 1999, a new telecom policy was put in

place (New Telecom Policy [NTP] 1999). Under this new policy, the old

fixed-licensing regime was to be replaced by a revenue- sharing scheme

whereby between 8-12 percent of cellular revenue were to be paid to the

government.

Five companies together bid Rs16.3 billion to bag the licenses for the

fourth operator slots in four metros and 13 circles. Bharti emerged as the

No. 1 bidder with eight new licenses, followed by Escotel with four,

Hutchison with three, and Reliance and Idea cellular with one each. Bharti

and Hutchison have already commenced operations in all the circles while

Idea is set to launch in Delhi. Escotel and Reliance have not made any

headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in

March 2001. BSNL, as the third nationwide cellular operator, launched

services in Kolkata and Bihar in January 2002. This was followed by

Tamil Nadu in July 2002. A nationwide launch was scheduled for 2

October 2002. However, this has been postponed until after mid October.

Once BSNL rolls out its service, most telecom circles will have four


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cellular operators. There will be tremendous competitive pressure, which

will result in lower tariffs. Future rate cuts are expected, which will drive

demand, together with falling handset prices and the introduction of prepaid

services.

In the midst of declining interest in technology stocks, Bharti came out with

its long-awaited initial public offering (IPO) in January 2002.

Leveraging on the success of its cellular service, the company got a very

good response from the primary market. The total size of the IPO was 185

million shares at a floor price of Rs10. The issue was oversubscribed by

more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its

investment in long-distance, basic and cellular services.

As of October 2002, only BPL Mobile has launched commercial general

packet radio service (GPRS) in Mumbai. However, large-scale uptake

remains elusive. While both Bharti and Idea have GPRS- enabled

networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.

There will be more competition, forcing operators to constantly focus on

differentiations to maintain their lead.

The implementation of enhanced networks like 2G will enable operators to

offer data services. This is an opportunity to customize and differentiate


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better. The entry of state-run operators like BSNL and BHARTI means

that prices will no longer be controlled, thus there is less chance of a cartel

being formed.

Network coverage in terms of geographic spread and quality of coverage

is crucial especially for the business subscriber.

The bigger the service provider's national presence, the better it is for

businesses. On the roaming front, signing up with a national operator is

advantageous.

Limited mobility wireless in local-loop services (by fixed network service

providers) will be a disadvantage for cellular operators in the short term.

Consequently, operators need to streamline their customer relation activities

and adopt aggressive subscriber acquisition and retention strategies.


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Company Profile:

Vision:

By 2015 , airtel will be the most loved brand , enriching the lives of millions.

AIR values :

Alive : we are alive to the needs of the customers. We act with passion ,

energy and can do attitude to help our customer and realize their dream.

Inclusive : airtel is for everyone . we champion diversity, recognizing the

breadth and depth of the community we serve.

Respectful : we live the same life as our customers sharing the same joysand the same pains.

Its services sector businesses include mobile operations in Andhra

Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,

Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra

circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In

addition, it also has a fixed-line operations in the states of Madhya

Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and

nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by offering data

transmission services and voice transmission services for calls originating

and terminating on most of India's mobile networks.

The Company is also implementing a submarine cable project

connecting Chennai-Singapore for providing international bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals and


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cordless phones. Apart from being the largest manufacturer of telephone

instruments, it is also the first telecom company to export its products to the

USA.

Bharti Tele-Ventures' strategic objective is

to capitalize on the growth opportunities that the Company believes are

available in the Indian telecommunications market and consolidate its

position to be the leading integrated telecommunications services provider

in key markets in India, with a focus on providing mobile services.

The Company has developed the following strategies to achieve its

strategic objective:

The Company has developed the following strategies to achieve its

strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum

geographical coverage;

Offer multiple telecommunications services to provide customers with a

"one-stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced

mobile data services;


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Focus on satisfying and retaining customers by ensuring high level of

customer satisfaction

Leverage strengths of its strategic and financial partners

Emphasize on human resource development to achieve operational

efficiencies.

Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

Enterprise Services

Direct To Home (DTH) Services

Competitive Strengths

Bharti Tele-Ventures believes that the following elements will

contribute to the Company's success as an integrated

telecommunication services provider in India and will provide the Company

with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total mobile


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subscribers resided in the Company's fifteen mobile circles. These 15

circles collectively accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to better anticipate

industry trends and capitalize on new telecommunications-related business

opportunities;

The strong brand name recognition and a reputation for offering high

quality service to its customers; Quality management team with vision

and proven execution skills; and The Company's strong relationships with

international strategic and financial investors such as SingTel, Warburg

Pincus, International Finance Corporation,Asian Infrastructure Fund Groupand New York Life Insurance.


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Findings and Analysis

Data is been collected for more than 110 people who are using mobile

phones.

Out of which around 48 % people is using Airtel Mobile Services.

5357

No.of User

Airtel

Others


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Almost all Airtel user have found airtel services is best in class. Almost

everybody has provided their response that they found airtel servicesExcellent. This population is around 10% of total targeted population

Around 17% population has rated aritel services to be good, out ofwhich majority of them are Airtel users. Around 1% non Airtel user alsoendorsed that they found Airtel services as good, but due to some

reason they dont use airtel services.

Almost 50% people were neutral in there response 40% was usingAirtel and 60% was using Other services from 50% population

15% of total population said that Airtel Services are average, out ofwhich almost 90% of them was not using airtel

9% population said that Airtel services are below Average, out ofwhich almost 85% people were not using airtel however 15% peoplewho where using airtel they also rated it below average

0 10 20 30 40 50 60

Excellent

Good

Nuetral

Avg

Below Avg


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Source:

When we are specifically about the source of information targetaudience get from, Almost 60% said that they get information from TVad/Radio Ad (TV/Radio advertisement has the highest impact on

consumer)

After Tv/Radio ad 6% said Sales Executive, 17% said references fromfriends and relatives, 10% said Newspaper/Magazine and 5% said

dealers/company owned outlets

0

5

10

15

20

25

30

35

40

Network Brand Name After Sales

Services

Price and

discounts

Value added

services


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When we asked targeted audience about the important criteria which

they are looking for while selecting a particular services following is the

response we got

Network 25% Brand Name 34% After Sales Services 12% Price and Discount 29% Value added Services 2%

0

5

10

15

20

25

30

35

40

Network Brand Name After Sales

Services

Price and

discounts

Value added

services


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Even we tried to find out current customers preference that if by any

chance they have to purchase a new number which mobile services

would be there preference, below is the response in percentage

Airtel 31% Reliance 9% Idea 20% Vodafone 25% Uninor(other) 15%

Hence with above available data we can conclude that Vodafone

and Idea is the biggest competitor for Airtel in terms of overallservice. While we specifically go for a detail analysis of a

consumer who are price conscious and discount demanding their

Other services like Uninor have an advantage.

31

9

20

25

15

Airtel

Reliance

Idea

Vodafone

Uninor


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Below of the response of the respondent in terms of reason for buying

particular services

Network 25% Brand Name 34% After Sales Services 12% Price and Discount 29% Value added Services 2%

0

5

10

15

20

25

30

35

NetworkBrand Name

After Sales

ServicesPrice and

discounts Value added

services


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How consumers get information about the Airtel as a brand and itslatest services, below are the response we had received from targetaudience .

TV advertisement 86% Camps and other activities 11%

24*7 Call centre 4%

0 20 40 60 80 100

TV Advertisement

Camps and other activities

24 * 7 Call Centre

Series1


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Current Satisfaction level of Airtel Campagin

Very Satisfied 16%

Satisfied 45% Some what satisfied 28%

Not Satisfied 11%

0 10 20 30 40 50

Very Satisfied

Sartisfied

Some what satisfied

Not satisfied

Series1


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Respndents rating to Airtel

Brand Name 49%

Network 4% After Sales Services 27% Value Added Services 5%

Price and Discount 15%

0

5

10

15

20

25

30

35

40

45

50

Brand Name Network After Sales

Services

Value Added

Services

Price and

Discounts


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Improvement Needed in Airtel Services

Network 60%

Price and Discount 28% After Sales Services 12%

0

10

20

30

40

50

60

Network

Price and Discounts

After Sales Services


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SWOT Analysis :

Strengths

Being one of the largest companies in India the company has

achieved a degree of focus in its core business of its

products.

It has a strong brand name, superior quality products and an

enviable distribution network.

It has a clear and well-defined organization structure and

limits of financial authority.

Aggressive Marketing Advertisement which result into high revenue

generation

Highly skilled employees who helps corporate to achieve higher

quality of standard in all aspects

Weakness:

Poor Network

Low advertising effort compare to its main competition like Vodafone

and Idea

Premium priced products, hence cant compete in low price segment

No separate strategy for rural market


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Opportunities:

The company's financial performance can receive a major

boost from its cost reduction efforts.

There is a lot of scope of product and market diversification.

Entering into the international market can create huge opportunities

in future.

Rural Markets has very good potential to bring growth.

Threats

Current slowdown in the economy has restricted topline growth of

major telecom companies and for Airtel also it wil l be difficult

to maintain historical growth rates in such a depressed scenario.

Companys major price decisions are influenced by government

policies / controls.

New companies targeting telecom market with very low cost price

strategy. For eg., Uninor, DOCOMO


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BCG Matrix :-

STAR Vodafone Question - Reliance

Cash Cow Airtel Dog - Videocon

As per the response received from respondents we can clearly defined the

position of the telecom service provider into the BCG matrix as per above.

Airtel is considered to be as CASH COW as the current market growth rate

is low where market share is high.


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Porters Five Forces Model :

Bargaining Power of Customers: As per the data collected from

respondents, it clearly shows that the bargaining power of customers has

been increased due to new TRAI policies like Mobile Number Portability ,

Low cost tariffs offered by competitors etc.

Bargaining Power of Suppliers : Increase demands from the suppliers like

Nokia , and Siemens by providing the monopoly products of switch

hardware to telecom service provider.


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Threat of Substitute product : Due to increase in usage of video calling

through internet , voice usage goes down compare to last 3 years.

Threat of New Entrants : New telecom service provider like Uninor , Aircel ,

Videocon is providing such a lower tarrif plans to attract the customer which

can be affect to the airtel customer base.


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Conclusion

After analyzing the findings of the research, we can conclude that Airtel

lagged behind its competitors as far as network and price & discount

strategy is major concern. The maximum no. of people who use the

mobile are feeling that airtel has a great brand value but some how it is

lacking in providing best network to the customer as compare to the

competitors like Vodafone and Idea.

Aitel is running a very good branding campaign which is endorse by

superstar like A R Rehman and Shah Rukh Khan . However due to lack in

the network coverage they could not create a good image in terms of quality

service. Though airtel successfully emerged as a great brand value since it is

been endorse by famous celebrity.

As we know that now airtel has already launched its product with logo

har ek f r i end zarur i ho ta ha i has already became popular in

market. So we can say that inspite of so many competitor in the market

Airtel is having a good position just because every time, it tries its best to

understand the need of its important customer.


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RECOMMENDATION

We have made following recommendation to the company after analyzing

the respondents response.

The company should bring some changes in their network quality as well

as pricing strategy .

The Company has to analyze the network failure / less network area and

need to create the area more feasible with best network quality.

The company should make its marketing strategy flexible enough in

order to face competition.

The company pricing policy must be flexible enough to catch new

customers because if company offers lower price to a new customer then

he may continue buy the goods and can be a permanent customer for the

company.

The company should offers such rate in the market so that it may able

to catch a bigger market share and it should be able to compete with

its main competitor like Vodafone and Idea having a brand name and

also with new entrance like Uninor , DOCOMO and Aircel.


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Limitations

No project is without limitations and it becomes essential to figure out the

various constraints that we underwent during the study. The following

points in this direction would add to our total deliberations:-

1. During the study, on many occasions the respondent groups gave

us a cold shoulder.

2. The respondents from whom data was gathered any times displayed

complete ignorance about the complete branded range, which was being

studied.

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


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BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in

details the following Web Sites have been referred. All the material

detailed below provides effective help and a guiding layout while designing

this text report.

Websites:

www.airtel.in

www.google.com

www.wikipedia.com
http://www.google.com/http://www.google.com/http://www.google.com/


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QUESTIONNAIRE

Q. 1 > Do you use Airtel Services ?

Yes

No

If No, then which services are you using? _________________

Q. 2 > For how long you have been using Airtel / Other services?

0 2 Years

2 5 Years

5 10 Years

More than 10 Years

Q.3 > How do you rate different service provider ?

Excellent Good Nuetral Average

Below

Average

Airtel

Vodafone

Idea

RelianceOtherServices

Q.5 > Do you collect any information before buying services from particular serviceprovider? No

Yes If Yes , then which source you are using ?

News paper / Magazines TV advertisement / Radio advertisement Dealers / Company owned Outlets Pamphlets / Broachers

Sales Executive Reference from friends and relatives


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Q. 6 > What are the main important aspects for which you are sticking to yourcurrent services ? Please Rank (Highest 1 , Lowest 5)

Brand Name

Price and Discounts (Lower Tariff Plans / Best Scheme in Prepaid ) After Sales Service

Network

Value Added Services

Q. 7 > If you want to purchase a new connection in near future , which brand will

you go for ? and why ?

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Q. 8 > How do you get the information about promotional activities of Airtel ?

Advertisement in Television

Camp

24 / 7 Call centre services Others __________________________________________

Q. 9 > Tell us about your satisfaction level with current Airtel promotional activities.

Very Satisfied

Satisfied

Somewhat Satisfied

Not Satisfied

Q. 10 > How would you rate Airtel Performance as per your expectation in terms of

following important criteria. (Highest 5 , Lowest 1)

1 2 3 4 5

Brand Name

Price and Discount

After Sales Services


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Network

Value added

Services

Q. 11 > What changes airtel should bring in order to improve quality services so

that you can shift / stick (airtel user) to airtel ?

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Thank You

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