project sales management
TRANSCRIPT
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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
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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.
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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.
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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.
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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.
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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 inencountering 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
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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
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: - 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
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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.
#
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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
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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
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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.
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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.
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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.
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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
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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).
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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.
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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 activities are gaining traction among
cellular operators with the establishment of longstanding consumer
benefitprograms. Orange in Mumbai offers "Orange Holidays" and
"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
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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.
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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.
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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
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1851First telephones in India1943Nationalization of telephone
companies1985DoT was created1986Creation of BHARTI and
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
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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
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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.
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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;
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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 -
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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;
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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:
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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 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:
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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
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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
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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;
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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:
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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.
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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 -
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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 non-
mobile user.
AirTel Magic positions itself on the platform of being excellent for emergency
situations - increasing productivity as a part of everyday life.
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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
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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.
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The new strategy, brand positioning & brand slogan is an outcome of an
extensivenationwide research and is an integral part of AirTel Magics new multi-
media 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
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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.
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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.
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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.
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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.
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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 withreal-
time feedback mechanism. Both brands joined hands totarget the high growth
youth segment.
Bhartis View on its Branding strategy:-
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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.Pro-
active 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.
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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
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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
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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
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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.
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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.
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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. Itsdemand 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 promotionalactivities likeadvertisements must be released indifferent Medias to create brand
awareness.
Free samples should be distributed among theprospects. Sales promotiontools 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 adegree of focus in its core business of itsproducts.
It has a strong brand name, superior quality products andan enviabledistribution network.
It has a clear and well-defined organization structure andlimits of financialauthority.
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Increase in advertisement spends affect the companysmargins.
The companys bottom line falls victim to the bloated andhighly paidworkforce, 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 costreduction 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.
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Threats
The slowdown in the economy has restricted topline growthof most FMCGmajors 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 alsoincreases 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.
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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.
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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.