A

RESEARCH REPORT

ON

“Comparative analysis of MARKETINGSTRATEGIES OF

Vodafone & AIRTEL”

Submitted in partial fulfillment of the requirementFor the award of the degree of Master Of Business

Administration.

Department Of Business Administration

SESSION (2014-2015)

Under the guidance of Submitted by: Deeksha Tripathi

Rajnish Parashar Assistant Professor MBA IInd year Kanpur Institute of Technology

Roll No.-1316570045 Kanpur, 208001

KANPUR INSTITUTE OF TECHNOLOGY, KANPUR

AFFILIATED TO

UPTU- LUCKNOW

COLLEGE CERTIFICATE

Certified that this Research Reportentitled”……………….………………………………………………………………………………………………..…”has been prepared by Mr. /Ms. ………………………Of MBA Semester IV during session……….under my supervision.The summer training report is up to the standard and I forward it to the directorKanpur Institute of Technology for getting it evaluated as per the ordinances governing the MBA course.

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…………………….

(Signature)

Date…………………. …… ………………

(Name)

.………..……….

(Designation)

STUDENT DECLARATION

I, Rajnish Parashar student of M.B.A at KanpurInstitute of Technology, Kanpur of hereby declarethat the Project work Comparative analysis ofMARKETING STRATEGIES OF Vodafone & AIRTEL” is compiledand submitted under the guidance of Mr. Pankaj DasKanpur. This is my original work.

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What ever information furnished in this projectreport is true to the best of my knowledge.

Name:Rajnish Parashar

MBA IInd year

Roll No: 1316570045

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Acknowledgement

It is my proud privilege to release the feelings of my

gratitude to several persons who helped me directly or

indirectly to conduct this project work. I express my heart

full indebtness and owe a deep sense of gratitude to Dr.

Brajesh Varshney, Director, KIT, Kanpur and Mr. Pramendra

kumar Singh, H.O.D ,KIT, Kanpur for their sincere guidance

and inspiration in completing this project.

I express my sincere gratitude to my Project mentor Prof.

Anjulika Singh, Assistant Professor,KIT ,Kanpur for her

valuable guidance as and when I required, moral support, her

persistent encouragement during project work and of course,

for giving freedom during our project work by which I

enthusiastically completed it within stipulated time.

I am thankful to my faculty Guide Deeksha Tripathi ,

Assistant Professor,KIT ,Kanpur for her guidance and

support.

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I also thank all my friends who have more or less contributed

to the preparation of this project report. I will be always

indebted to them.

EXECUTIVE SUMMARY

Telecom Sector In India:-

Than 125 million telephones network is one of the largestcommunication networks in world, which continues to grow at ablistering pace. The rapid growth in the telecom sector can beattributed to the various pro-active and positive policymeasures taken by the government as well as the dynamic andentrepreneurial spirit of the various telecom serviceproviders both in private and public sector. The telecomsector has shown impressive growth during the past decade. Today,more Two striking features of this growthviz. increasing preference for mobile phones and highercontribution of private sector in the incremental growth havepredominated the telecom sector. The share of mobile phones (including WLLmobile) has overtaken the share of landlines with 62% in thetotal number of phones. The private sector's contribution isalso increasing rapidly. Currently more than 30 lakh phones

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are being added each month and it is targeted that by the endof 2008 the total number of phones may reach a level of 350million taking the tele-density to more than 30% which iscurrently at 24.63%.

Network Expansion: The total number of telephone subscribershas reached 281.62 million at the end of January 2008 ascompared to 232.87 million in July 2007. The overall Teledensity has increased to 23.63% inJanuary 2008 as compared to 21.20% in August 2007.

Wireless Service: The wireless segment saw a surge of 8.77 million subscribers last mont compared to 8.17 million in December2007. This pushed the total wireless subscribers base to 242.40 million by Jan 31 2008.

Wire line Subscribers: The wire line segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end of January 2008.

Teledensity: The gross subscriber base reached 206.83 million at the end of March 2007. The Teledensity is 24.63%at the endof January 2008 as compared to 18.31% at the end of March 2007, registering an increase of 6%.

Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. Theshare of private sector has risen to 85 per cent in December 2007 from 64.14 per cent in November 2006.

Tariff Rebalancing Measures: There has been a dramatic fall inthe tariffs due to increased competition. The minimumeffective charges for local calls have fallen considerably in

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recent months especially for cellular service. The longdistance domestic as well as international charges have alsofallen considerably.

Telecom Regulatory Authority of India (TRAI): TRAI wasestablished under the Telecom Regulatory Authority of IndiaAct, 1997 enacted on March 28,1997. The goals and objectivesof TRAI are focused towards providing a regulatory frameworkthat facilitates achievement of the objectives of NewTechnology Policy (NTP) 1999. TRAI has endeavored to encouragegreater corporation in the telecom sector together with betterquality and affordable prices.

AIRTEL

Airtel is a brand of telecommunication services in Indiaoperated by Bharti Airtel. Airtel is the largest cellularservice provider in India in terms of number of subscribers.Bharti Airtel owns the Airtel brand and provides the followingservices under the brand name Airtel: Mobile Services (usingGSM Technology), Broadband & Telephone Services (Fixed line,Internet Connectivity(DSL) and Leased Line), Long DistanceServices and Enterprise Services (TelecommunicationsConsulting for corporates). It has presence in all 23 circlesof the country and covers 71% of the current population (as ofFY07). Leading international telecommunication companies suchas Vodafoneand SingTel held partial stakes in Bharti Airtel.

VODAFONE ESSAR

Vodafone Essar, previously Hutchison Essar is a cellularoperator in India that covers 16 telecom circles in IndiaDespite the official name being Vodafone Essar, its productsare simply branded Vodafone. It offers both prepaid and

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postpaid GSM cellular phone coverage throughout India and isespecially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and 1800MHz digital GSM technology, offering voice and data servicesin 16 of the country's 23 license areas.Vodafone Essar, previously Hutchison Essar is a cellularoperator in India that covers 16 telecom circles in India .Despite the official name being Vodafone Essar, its productsaresimply branded Vodafone. It offers both prepaid andpostpaid GSM cellular phone coverage throughout India and isespecially strong in the major metros. Vodafone Essar provides2G services based on 900 MHz and 1800 MHz digital GSMtechnology, offering voice and data services in 16 of thecountry's 23 license areas.

(TAKE THE DATA OF CURRENT YEAR)

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TABLE OF CONTENT1.. introduction of the topic …………………………………………………….....10-31Telecom sector in IndiaAirtelVodafoneBackgroundCompany profile of AirtelComparison between marketing strategy of Bharti Airtel and Vodafone

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Swot analysis ………………………………………………………….………56-58

objectives of the study …………………………………………………………06 Research Methodology …………………………………………………………32-45Data collection methodMethod of collection

Data Analysis and Interpretation ……………………………………………..46-55 Swotanalysis ………………………………………………………….………56-58FindingsConclusion ……………………………………………………….…………….. 61Limitation ……………………………………………………………………..59Suggestion ………………………………………………………………….… 60Recommendations ………………………………………………….…………. Bibliography …………………………………………………………….……… 63

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INTRODUCTION

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TELECOM INDUSTRY

https://www.dnb.co.in/IndianTelecomIndustry/OverviewTI.asp

https://www.equitymaster.com/research-it/sector-info/telecom/Telecom-Sector-Analysis-Report.asp

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COMPANYPROFILE

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Airtel Company

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 scoopingup by the allegations of the quality of its products. Thereport begins with the history of the products and theintroduction of the Airtel Company. This report also containsthe basic marketing strategies that are used by the AirtelCompany of manufacturing process, technology, productionpolicy, advertising, collaboration, export scenario, futureprospect and government policies. The report includes some ofthe key salient features of market trend issues. In today’sworld of cutthroat fierce competition, it is very essential tonot only exist but also to excel in the market.

Today’s market is enormously more complex. Hence forth, tosurvive in the market, the company not only needs to maximizeits profit but also needs to satisfy its customers and shouldtry to build upon from there.Vision

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"As we spread wings to expand our capabilities and explore newhorizons, the fundamental focus remains unchanged: seek outthe best technology in the world and put it at the service ofour ultimate user: our customer." These are the premise on which BhartiEnterprises has based its entire plan of action. BhartiEnterprises has been at the forefront of technology and hasrevolutionized telecommunications with its world-classproducts and services. Established in 1985, Bharti has been apioneering force in the telecom sector. With many firsts andinnovations to its credit, ranging from being the first mobileservice inDelhi, first private basic telephone serviceprovider in the country, first Indian company to providecomprehensive telecom services outside India in Seychelles andfirst private sector service provider to launch National LongDistance Services in India. Bharti had approximately 3.21million total customers – nearly 2.88 million mobile and334,000 fixed line customers. Its services sector businessesinclude 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. Inaddition, it also has fixed-line operations in the states ofMadhya Pradesh and Chhattisgarh, Haryana, Delhi,Karnataka andTamil Nadu and nationwide broadband and long distancenetworks. Bharti has recently launched national longdistance services by offering data transmission services andvoice transmission services for calls originating andterminating on most of India's mobile networks. The Company isalso implementing a submarine cable project connectingChennai-Singapore for providing international bandwidth.Bharti Enterprises also manufactures and exports telephoneterminals and cordless phones. Apart from being the largestmanufacturer of telephone instruments, it is also the firsttelecom company to export its products to the USA. BhartiTele-Ventures' strategic objective is “to capitalize on the

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growth opportunities that the Company believes are availablein the Indian telecommunications market and consolidate its position to bethe leading integrated telecommunications services provider inkey markets in India,with a focus on providing mobileservices”. The Company has developed the following strategiesto achieve its strategic

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" solutionPosition itself to tap data transmission opportunities andoffer 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

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National and international long distance services

VSAT, Internet services and network solutions

Broadband services with DSL and Wi-Fi network

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 providethe Company with a solid foundation to execute its businessstrategy:

Nationwide Footprint - approximately 92% of India's total mobile 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 Group and New York Life Insurance.

Brand Architecture:

Bharti is working on a complex three-layered branding architecture — to:

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Create specific brands for each service,

Build sub-brands within each of these services and

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

Airtel - The flagship brand for cellular operations all across the Indian country.

Touchtel - The brand earmarked for basic service operations.

India One - The brand for national long distance (NLD) telephony

Though the costs of creating new brands are heavy but the group

wants to create “distinct independent brands to address different

customers and profiles”.

BHARTI AIRTEL (Cellular Operations)TOUCHTEL (Basic Service Operations)INDIA ONE (National Long Distance)

Brand Strategy :

To understand the brand strategy, let’s first look at thebrand building exercise associated with Airtel — a brand thathad to be repositioned recently to address new needs in themarket. When the brand was launched seven years ago, cellulartelephony wasn’t a mass market by any means. For the average consumer, owning a cellular phone wasexpensive as tariff rates (at Rs 8 a minute) as well asinstrument prices were steep — sometimes as much as buying a

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second-hand car. Bharti could have addressed the customer byrationally explaining to him the economic advantage of using amobile phone. But Sachdev says that such a strategy would nothave worked for the simple reason that the value from usingthe phone at the time was not commensurate with the cost.“Instead of the value-proposition model, we decided to addressthe sensory benefit it gave to the customer as the mainselling tack. The idea was to become a badge value brand,” heexplains. So the Airtel “leadership series” campaign waslaunched showing successful men with their laptops and intheir deluxe cars using the mobile phone. In simple terms, itmeant Airtel was positioned as an inspirational brand that wasmeant for leaders, for customers who stood out in a crowd.

Did it work? Repeated surveys following the launchshowed that there were three core benefits that were clearlyassociated with the brand — leadership, dynamism andperformance. These were valuable qualities, but they only tookAirtel far enough to establish its presence in the market. Astariffs started dropping, it became necessary for Airtel toappeal to a wider audience. And the various brand-trackingexercises showed that despite all these good things, there wasno emotional dimension to the brand — it was perceived ascold, distant and efficient. Sachdev and his team realizedthat in a business in which customer relationships were thecore this could be a major weakness. The reason with tariffsidentical to competitor Vodafone telecomm and roughly the samelevel of service and schemes, it had now become important forBharti to “humanize” Airtel and use that relationship as amajor differentiation.

The brand had become something like Lufthansa — coldand efficient. What they needed was to become SingaporeAirlines, efficient but also human. A change in tack wasimportant because this was a time when the cellular market waschanging. The leadership series was okay when you were wooingthe creme de la creme of society. Once you reached them youhad to expand the market so there was need to address to newcustomers. By that time, Bharti was already the leadingcellular subscriber in Delhi with a base of 3.77 lakh (it nowhas 1.8 million customers). And with tariffs becoming more

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affordable — as cell companies started cutting prices — it wastime to expand the market. How could Bharti leverage thisleadership position down the value chain? Surveys showed thatthe concept of leadership in the customer’s minds was alsochanging. Leadership did not mean directing subordinates toexecute orders but to work along with a team to achieve commonobjectives — it was, again, a relationship game that needed tobe 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,existing customers were an important tool for market expansionand Bharti now focused on building closer relationships withthem. That is precisely what the brand tried to achievethrough its new positioning under the Airtel “Touch Tomorrow”brand campaign. This set of campaigns portrayed mobile userssurrounded by caring family members. Says Sachdev: “The newcampaign and positioning was designed to highlight therelationship angle and make the brand softer and moresensitive.” As it looks to expand its cellular servicesnationwide —to eight new circles apart from the seven in whichit already operates — Bharti is now realizing that there arenew compulsions to rework the Airtel brand, and a new exerciseis being launched to this effect. Right now, the company isunwilling to discuss the new positioning in detail. Butbroadly, the focus is on positioning Airtel as a power brandwith numerous regional sub-brands reflecting customer needs invarious parts of the country. If Airtel is becoming morehumane and more sensitive as a brand, Bharti has alsounderstood that one common brand for all cellular operationsmight not always work in urban markets that are now gettingincreasingly saturated. To bring in new customers, the companydecided that it needed to segment the market. One suchexperiment, launched last year, is Youtopia, a brand aimed atthe youth in the 14 to 19 age bracket and for those who are“young at heart”. With its earlier positioning, Airtel wasperceived as a brand for the well-heeled older customer; therewas nothing for younger people. With Youtopia, Airtel hoped toreverse that. In order to deliver the concept, Airtel offered rock bottomtariff rates (25 paise for 30 seconds) at night to Youtopia

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customers — a time when they make the maximum number of calls.It also setup merchandising exercises around the scheme — likea special portal for young people to buy things or bid forgoods.

The company is now looking at offering other services ataffordable prices to this segment which include musicdownloads on the mobile and bundling SMS rates with normalcalls to make it cheaper for young people to use. The other experiment that Bharti has worked on is to go in forproduct segmentation through the Tango brand name. The brandwas created to offer mobile users Internet-interface servicesor what is known as WAP (Wireless Application Protocol). Theidea was to bring Internet and mobile in perfect harmony. “Thename was chosen from thepopular movie title It Takes Two to Tango:basically, you need the two services to tango to offercustomers a new choice”, says Sachdev.

This, however, had less to do with the branding exerciseas with inefficiency of service (accusingly slow downloadspeeds) and the limited utility of WAP services. Subsequently,the ads were withdrawn, but the company re-iterated that thebranding exercise could be revived because Tango will be thebrand 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 ofexpanding the market even faster.

PHASE I –

Magic was aimed at bringing in infrequent users of amobile phone into the market and assure him that he would haveto pay only if he made a call. Such a customer used the phone

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sparingly — mostly for emergencies — and was not willing topick up a normal mobile connection with its relatively highrentals (pre-paid cards do not include rental charges). Toachieve 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 to operate.

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 campaigns Like“Magic Daalo Say Hello” which appealed to local sensibilities. Thisapart, the company roped in Karisma Kapoor and Shah Rukh Khanfor a major ad campaign all across Delhi, a ruse that saw thenumber of subscribers go up from 5.47 lakh to 1.2 milliontoday, overtaking Essar’s branded pre-paid card Speed, whichwas launched much ahead of Magic. The company is now re-working its Magic strategy even further. Earlier, the brandingstrategy was aimed at roping in only interested customers —that is, customers who were already inclined to opt for mobileservices. 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, insiderssay the new branding strategy would be aimed at offering themvalue which they had not perceived would be available fromusing a pre-paid card.

PHASE II -

Bharti used Airtel Magic to build a strong value propositionand accelerate market expansion through India’s first nationalpre-paid card TV brand campaign

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

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A combination of the film genre exposed through the TVmedium designed to connect with the masses of India

Youth based - romance driven strategy platform makes thevalue proposition of Airtel Magic - Mumkin Hai’ come alive

All elements - user imagery, context, tone & languagecreated to connect the category to the lives of the SEC B &SEC C segment – the middle class non-mobile user.

Airtel Magic positions itself on the platform of beingexcellent for emergency situations - increasing productivityas a part of everyday life.

Sharukh Khan makes ‘everything in life possible’ whileromancing pretty Kareena Kapoor with Airtel Magic, India’sleading pre-paid mobile card.

Airtel today unveiled its strategy for market expansion withthe launch of its new Airtel Magic pre-paid card brandcampaign – ‘Magic hai to Mumkin hai’. The strategy is targetedat the nonuser segment defined as young adults, 15-30 years ofage; in the Sec B & C segment is aimed at accelerating marketexpansion. The value proposition is centered around a person’sdesire to make all his / her dreams, ambitions & aspirationsinstantly possible. The new campaign for Airtel Magic is allabout empowering millions of Indians to be on top of theirlives. The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires comealive… instantly. (At just Rs.300/- per month Airtel Magic isso easy to buy.) Improving productivity, letting you befriendthe world and opening up new horizons. It gives you thefreedom to control your life in a way never possible before.Indeed, anything that you think is possible is possible withAirtel Magic. The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created tocapture this effectively.

This strategy is designed to help us talk to this segmentdirectly in the tone, manner & language of the masses. The

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“Mumkin hai” value proposition will help us expand the marketand gain a higher percentage of market shares in the process.The brand ambassadors Shahrukh Khan and Kareena Kapoor embodythis ‘can do’ or “Mumkin Hai” spirit (infact that is thereason they were selected as brand ambassadors). Sharukh rosefrom a TV actor to become India’s top film star and nationalheartthrob. Kareena’s success is due to her ‘attitude’,talent, hard work and the sheer ability to make a mark in sucha short time. Both these stars have said ‘Mumkin hai’ and madeit happen for themselves. The genre of this new strategy &campaign is Hindi cinema led. This genre connects millionsacross India.

The spirit of romance, dancing… the Indian cinema, well knownto most as Bollywood, holds millions of Indians together asone. The new TV campaign of Airtel Magic crafted in the Hindifilm idiom, magnifies the empowering optimism of “Mumkin Hai”,in the endearing situation of a boy-girl romance. WhereSharukh Khan, sets his eyes on Kareena Kapoor and wins herlove with the help of Airtel Magic. Poignantly conveying thatspecial feeling we all get when a dream is made possible and avictory of the heart is won). The strategy & new brandcampaign is targeted at the large untapped base of intendingmobile customers from Sec A, B & C. The estimated addressablemarket of such customers in the next two years is around 25million in Airtel’s 16 states. The new strategy aims atcorrecting the perception that the mobile category is usefulmainly for ‘business’ or ‘work’ related scenarios. The newstrategy, brand positioning & brand slogan is an outcome of anextensive nationwideresearch and is an integral part of Airtel Magic’s new multi-media campaign. The campaign has been created by PerceptAdvertising.

PHASE III -

Bharti used Airtel Magic to build a strong value propositionand accelerate market expansion through India’s first nationalpre-paid card TV brand campaign

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First time ever in India - any pre-paid card brand givessuch freedom to recharge any value

A combination of the film genre exposed through the TVmedium designed to connect with the masses of India

Youth based - romance driven strategy platform makes thevalue proposition of Airtel Magic - ‘Aisi azaadi aur kahan?”come alive

Sharukh Khan Makes ‘everything in life possible’ Airteltoday unveiled its strategy for market expansion with thelaunch of its new Airtel Magic pre-paid card brand campaign– ‘Magic Hai to Mumkin Hai’. . The value proposition iscentered on a person’s desire to make all his / her dreams,ambitions & aspirations instantly possible. The new campaignfor Airtel Magic is all about empowering millions of Indiansto be on top of their lives. The brand is positioned to berelevant to the mass-market who want to make all their dreams,hopes & desires come alive… instantly .At a amount of yourchoice you can recharge your account with available validitytime .Improving productivity, letting you befriend the worldand opening up new horizons. It gives you the freedom tocontrol your life in a way never possible before. Indeed,anything that you think is possible is possible with AirtelMagic. The new brand slogan ‘Aisi azadi aur kahan’ has beenspecially created to capture 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.

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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 circlesso, 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 subscriberqueries, a storehouse of 40,000 frequently asked questions andtheir answers have been stored on the computers.

Bharti expects that most of its new customers (one estimateis that it would be 60 to 70 per cent of the total newsubscriber base) would come from the pre-paid card segment.So, they must be given value-added products and services whichcompetitors don’t provide.

Bharti, for the first time for a cellular operator, hasdecided to offer roaming services even to its pre-paidcustomers, but the facility would be limited to the region inwhich they buy the card. To ensure that customers don’tmigrate to other competing services (which is known as churnand ranges from 10 to 15 per cent of the customer base everymonth), the company is also working on a loyalty program. Thiswill offer subscribers tangible cash benefitsdepending upontheir usage of the phone.

The loyalty program will not be only for a ‘badge value’, itwill provide real benefits to customers. The idea is to createan Airtel community.

Another key area which Bharti is concentrating its attentionupon is a new roaming service launched in Delhi under which

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calls of a roaming subscriber who is visiting the city will berouted directly to his mobile instead of traveling via hishome network.

The company also offers multi-media messaging systems underwhich customers having a specialized phone with a in-builtcamera can take pictures and e-mail it to friends or store itin 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-use cellular service much easier than it is today. A key areais to increase the number of activation centers. EarlierBharti had 250 Airtel Connect stores which were exclusiveoutlets (for its services) and about 250 Airtel Points whichwere kiosks in larger shops. Now activation can be done by allof them, and not only by Connect outlets, all within 15 to 20minutes. In comparison, the competition takes two to fourhours.

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. Unlikepost-paid, one need not pay security deposits for picking up apre-paid card. It is often available even withpaanwalas. Asbefits a fast-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 forconsumers and making recharging more convenience.

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 value

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proposition for its pre-paid service. They are leveragingtechnology to expand their distribution network and deliverround-the-clock recharge options to its MOTS (Mobile on theSpot) subscribers.

Bharti Cellular has also launched a special service,CareTouch, for high-value, corporatecustomers, providing themwith 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 paperwork. BhartiCellular is offering a range of services without going throughan interactive voice recorder ensuring that they save time.Dedicated‘CareTouch’ executives are expected to assistcustomerswith any service on priority basis. Besides the regularproactive reminder calls for bill payment, customers can alsocall 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 withreal-time feedback mechanism. Both brands joined hands totarget the high growth youth segment.

Bharti’s View on its Branding strategy:-

First, brand building efforts in today’s context have to beseen in a more holistic manner. Delivering value on asustained basis is perhaps the most potent key to build abrand that lasts. Unflinching orientation to customer needs isthe second key success factor. Customers (be it for industrialproducts or consumer goods and services) across the world aremore informed and, at the same time, becoming moreindividualistic in their needs and far more demanding with thepassage of time.

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Pro-active tracking of shifts in consumer behavior,anticipating redefined 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) tomeet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation.As far as allocation of time and financial resources areconcerned, too many companies mistakenly allocate adisproportionate amount on mere advertising and promotion.This is not to say that advertising and promotion are lessrelevant. On the contrary, with more choices and higher mediaclutter, businesses need to budget for an increasingly higherspend on their brand promotion but this has to be undertakenin tandem with enterprise-wide “reengineering” of the businessphilosophy and core design, production, and delivery operations for the productitself.

The positive spin to this argument is that by firstaddressing the fundamentals, the enterprise itself becomesmore competitive. This can be the beginning of a virtuouscycle wherein brand equity continues to increase as theenterprise sustains delivery of an appropriate product orservice at an ever increasing value. It is, however, crucial to note that in the years tocome, not only will the cost of building a regional or anational (or an international) brand will continue to rise butalso the time taken to do so will be longer and will needsustained and focused efforts.

VODAPHONE

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Research Objective Research methodology

Method of collection of data

OBJECTIVES OF THE RESEARCH REPORT

Every organization has to achieve its organization goals. For

this it is very essential for an organization to know about

the view of consumers and their competitive products. This

survey research may be also aimed as to estimate potential

buyer for the product. The objective of the study is as

under:-

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1. To identify the difference between market performance of

Airtel industry and Vodafone.

2. To study the market of Airtel Industry and Vodafone on

big scale telecommunication sector.

3. To compare various parameters of marketing strategies,

manufacturing process, technology adopted production

policy, advertising, collaboration, export

scenario,future prospect for the two companies and

government policies.

4. To know how the company has been successful in

encountering the aggressive marketing strategies of

competitors.

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RESEARCH METHODOLOGY

The aim of the survey to find out Foreign Direct Investment in Indian Retail Sectors”

Type of research: DescriptiveType of data collected: Secondary data

SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADYCOLLECTED .THE SECONDARY DATA, WHICH HAS BEEN USED TO CARRYOUT THIS STUDY, ARE AS FOLLOW:

BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS

INDUSTRY REPORTS

COMPANY’S INTERNET SITE

SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES.

Data presentation tool used for analysis:

1) Table

2) Bar chart

3) Pie chart

4) Mean

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DATA ANALYSIS &

INTERPRETATIONS

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Comparison of marketing strategies

between

‘Bharti Airtel’ and

‘Vodafone’.46

Purpose of comparison

The sub main purpose of this report is to compare themarketing Strategies adopted by Bharti Airtel and its rivalVodafone

The comparison shows how both of the companies have beenchallenging each other to gain market shares.

Why comparison with vodafone Bharti Airtel is the leader in telecommunication sector.

Bharti Airtel holds the lion share of market ofcommunication sector.

However, Vodafone has been giving tough competition toBharti Airtel.

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Vodafone is the second largest player and share holder inCommunication sector.

Since its launch Vodafone has been adopting aggressivemarketing strategies.

The comparison shows how Hutchison Essar Telecom. Captured22% market share in one month of its first launch of postpaidsubscription in 2002.AD.

With a different technology Vodafone creates its own market.

Vodafone odafone. Today deals in every business ofcommunication sector.

Vodafone making and changing the strategies to capture themarket shares

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

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Positioning

Creating brands (Sharukh khan & Sachin Tendulker)

Ads and promotions

Promotion for study of poor childrens.

Marketing mix

Price: low price strategy

Place: maximum outlets and service centers

Product: verities available for various groups

Promotion: various schemes for pre-paid and post-paid

MARKETING STRATEGIES OF VODAFONE .

Vodafone target the rural India

The main targeted customers of Vodafone are fromrural India. By offering cheap and light mobile sets Vodafoneattracts most of the customers of small villages andtowns.

Offering cheap handsets

Vodafone offers cheap and free connections to allcustomers.

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The cost for these sets was Rs-799-849-1099\set andonward.

Free support and services

In every district and big towns Vodafone opens itsservice centers to provide better support andservices.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all overIndia.

In every small town the potential customers caneasily purchase the Vodafone SIM & Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorfulhandset at very low prices.

BRAND POSITIONING BY VODAFONE

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

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Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

Product : verities available for various groups

Promotion: various schemes for pre-paid and post-paidServices 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 Vodafone .

●mobile services with GSM technology

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●fixed-line telephone services

●Universal Internetworking

●VoIP (Voice over Internet Protocol)

●Interactive Television

●Visual Communication

●Broadband Portal

●Telecommuting

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Copy the complete pdf -----telecomindustry in india

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Findings Conclusion Limitations Recommendations

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FINDINGS

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CONCLUSION

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LIMITATIONSAlthough the study was carried out with extreme enthusiasm and

careful planning there are several limitations, which

handicapped the research viz,

1. Time Constraints: The time stipulated for the project to be

completed is less and thus there are chances that some

information might have been left out, however due care is

taken to include all the relevant information needed.

2. Accuracy: It is difficult to know if all the respondents

gave accurate information; some respondents tend to give

misleading information.

3. Availability: It was difficult to find respondents as they

were busy in their schedule, and collection of data was

very difficult

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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, in terms of quality. Its demand should be increased.

2. PLACE

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

3. PROMOTION

*Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness.

*Free samples should be distributed among the prospects. Salespromotion tools like gifts, contests and coupons must be givento retailers as well as customers and prospects.

* Catalogues should be distributed among customers.

4. PRICE

* Price should be as competitive as other company maintains

* Distribution of new connection should be in reach of customer pocket.

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RECOMMENDATIONSI have made following recommendation to the company after doing the Research:

The company should modify its credit policy as they only target the cash paying customers who are not easy to trace.

The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesn’t matches with the sample’s quality shown beforegiving orders.

The company should make its marketing strategy flexible enough in order to face competition.

The company should keep an eye on the proper delivery of thegoods to exporter on time, as it has been recommended by exporters to make the delivery on time.

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

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The company should offers such rate in the market so that itmay able to catch a bigger market share and it should be able to compete with the local traders and commission agents while having a brand name. The company should take the opinion of exporters from time to timeto know what problems they are facing from the company’s side.

BIBLIOGRAPHY

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BIBLIOGRAPHY

In this project report, while finalizing and foranalyzing quality problem in details the followingBooks, Magazines/Journals and Web Sites have beenreferred. All the material detailed below provideseffective help and a guiding layout while designingthis text report.

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Books :

Principles of Marketing –Philip Kotler & Kevin kelleredi. 12Market Research – D.D. SharmaResearch Methodology – C.R. Kothari

Websites:

www . Airtelworld.comwww.Vodafone.inhttp://www.blonnet.com/2004/06/26/stories/2004062602180700.htm, Mumbai, June 25, 2004.com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming.htm, 4 November 2003Domain, Missed Call, at http://www.domainb

ADD CURRENT YEAR DETAILS OF WEBSITE

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