Project Report ON "Advertising Strategies of Bharti Airtel LTD."
Project Report ON "Advertising Strategies of Bharti Airtel LTD."
CAPS COLLEGE OF COMMERCE AND MANAGEMENT STUDIES, 562, BEHIND KRIMS HOSPITAL, CENTRAL BAZAR ROAD, RAMDASPETH, NAGPUR ACADEMIC YEAR 2011-2012
CERTIFICATE This is to certify that the project report entitled Advertising strategies of Bharti Airtel Ltd, submitted by Jayant V. Khobragade in the partial fulfillment for the requirement of Bachelor of Business Administration examination of RTM Nagpur University, Nagpur for academic session 2011-2012 This work has been carried out under my supervision and guidance and has undergone the requisite hours of practical prescribed by the University for Project Work No part of the project has been submitted for any other degree or diploma or published in any other form. The assistance and help rendered during the course of this research in the form of basic material and information have been duly acknowledged.
Internal examiner
External examiner
DICLARATION
I hereby declare that this project entitled Project Name submitted is my original work and has not been earlier submitted to any institute for the award of any degree or diploma nor the data has been derived for any project of the University.
The source of material and data used in this study have been duly acknowledged and certified.
I understand that any such copying is liable to be punished in any way the university deem fit.
Place: Nagpur.
Jayant V. Khobragade
ACKNOWLEDGEMENT
It gives me a great pleasure to present a project on: - Advertising Strategies Of Bharti Airtel. For the partial fulfillment of the requirement of the BBA Final Year This project has enhanced my confidence and prospects of finance management. I am deeply indebted to my guide: PROF: Shreeja Kurup, for her constant guidance and encouragement and for providing such an updated computer facilities in completion of this project. It has been a proud privilege for me to look on this project which has opened a new avenue of experience. I express my deep gratitude towards my lecturer specially: Shreeja Kurup for her inspiring guidance, helpful suggestion. She had enabled me to work with keen interest in the proper perspective. Without her it have been difficult to present it in such a small span of time I am also thankful to Dr. A. M. Sheikh, Principal, and CAPS College of Commerce & Management Studies for giving me this opportunity and also for being a source of inspiration. This acknowledgement will remain incomplete without rendering gratitude to all the faculty members of CAPS College who help me directly or indirectly in making this project report. I am also thankful to all the non-teaching staff of the college who has supported me from time to time Last but not the least; I would like to thank all my friends and family members for their timely suggestion during the project.
Jayant V. Khobragade
Chapter 1
INTRODUCTION
INTRODUCTION
Advertising is a form of communication intended to persuade audience to act upon the products, ideas, or services rendered. It includes the name of a product, service and how that product or service could benefit the consumer. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action. In nut shell Advertising promotes a product, service or event to its target audience. A target audience is the portion of the general public that products, services or events were created for to fill a desire or need in the marketplace Commercially it is defined as a device to arrest attention. An advertiser often seeks to generate increased consumption of their products or services through branding, which involves the image or product name in an effort to associate related qualities. On-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement. Advertising is a form, either written or oral, that attempts to sell something whether it is a product or particular view. Advertising takes the form of pamphlets, radio, television, Internet and much more.
Types of advertising
Virtually any medium can be used for advertising. Commercial advertising media can include wall paintings, billboards, printed flyers / pamphlets, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, human billboards, magazines, newspapers, Any place an "identified" sponsor pays to deliver their message through a medium is advertising.
Digital advertising:
Television advertising / Music in advertising / Radio / The TV commercial is generally considered the most effective mass-market advertising format. The majorities of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics. An infomercial is a long-format television commercial, typically five minutes or longer. The word "infomercial" combining the words "information" & "commercial". The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals.
Physical advertising
Press advertising Press advertising describes advertising in a printed medium such as a newspaper, magazine, or journal. This encompasses everything from media with a very broad readership base, such as a major national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade journals on very specialized topics. A
form of press advertising is classified advertising, which allows private individuals or companies to purchase a small, narrowly targeted ad for a low fee advertising a product or service. Another form of press advertising is the Display Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper.
Billboard advertising:
Billboards are large structures which display advertisements to passing pedestrians. Often, they are located on main roads; however, they can be placed in any location with large amounts of viewers. In-store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye-catching displays promoting a specific product, and advertisements in such places as shopping carts and in-store video displays.
IMPORTANCE OF ADVERTISING
Advertising is a favorable representation of product to make consumers, customers and general public aware of the product. It lets the potential buyers, general public and end users to be aware and familiar with the brands, their goods and services. Before going on to the importance of advertising, we would have an introduction to advertising first Advertising can be defined as a paid form of non professional but encouraging, complimenting and positively favorable presentation of goods and services to a group of people by an identified sponsor. It does not include distribution of free samples or offering bonuses, these are sales promotion. In simplest words advertising is introduction, to consumers and general public, of services and goods. Many people think that advertising a product means to sell it. But real aim of advertising is to make general public and potential buyers, aware of goods, products and services available under a brand. In a successful business, advertising play an essential and important role. Though advertising does not mean selling of products and services but it helps in increasing your
sales. Advertising creates awareness in people. When general public becomes conscious to the products, services and goods under the brands, they persuade people towards these brands and make them buy better brands. Advertising can be used to create brand awareness in general public and to make business more popular within the circle of potential buyers. Advertising, in a straight line, increases profit of the companies by escalating its revenue. The expenditure made on advertisement can turn as good boost in earnings.
1. MARKET RESEARCH
The main idea of market research is, to find out whether a product is needed, whether people would buy it and what kind of people that are. These people are called TARGET GROUP. Market research is often carried out buy specialist organisations, they make market surveys and customer tests to find out preferences in design, quality, colour and taste. This information is used to decide whether to produce a product, how much it should cost and how it should be promoted.
2. PRODUCT DEVELOPMENT
There are two ways of product development. On the one hand the product-oriented companies and on the other hand the market-oriented companies. Product-oriented companies invest a lot of money and time in finding new or im-proved goods to sell them on the market. This is a very risky form of product development, because companies might not sell the new goods. So they lost a lot of money. Market-oriented companies want to find out what is needed and then they try to develop new ways of production or new goods.
3. PROMOTION
Promotion is very important because however good a product is, it will not find any buyers, if no one knows about it. If you want to sell a specialised product, all you have to do is to write to people or companies, which are known to be interested or place an advertisement in a trade magazine. If you are not able to do this yourself, you can instruct an advertising argency. They have the experts who can make a successful campaign. They know how, when and where the message should be transmitted to reach most people of the target group. At the beginning of production, advertising will inform you what a product is like, where you can get it and how much it costs. Later, it is necessary to persuade the people to keep on buying or attract new customers to buy. Modern advertising uses language, pictures, sound and colours to sell the products as well as possible. ADVERTISING MEDIA The best times for commercials are the times at which people wait for something special like the news or sports. At these times advertising can be very successful, but it is also very expensive.
TV-COMMERCIALS
TV is one of the most powerful advertising medium, because you can get very detailed information about a product. Depending on your target group you have to decide the time, when your spot shall be shown. It is not useful broadcasting an ad about cars in t he childrens programmes because this is not your target group, they cannot buy a car. In the afternoon there are many films on TV, which are interrupted regularly. At that time advertising can be very expensive. In fact, TV-adverts have a strange impact. You might have noticed how well you can remember slogans long after the spot is over.
PRINTED ADVERTISING
The prices for full-page-adverts in national newspapers are roughly the same as for TV spots, but you can also place smaller adverts in the print media. In local newspapers you only pay a few pounds. The problem of adverts in newspapers and magazines is , that they can attract the readers eyes only. This problem can be solved by considering several factors: Only use right-hand pages for newspaper adverts, because you first look at the right side. The colour is an important fact. Red signals mean danger and colours of the dusk make us feel comfortable and save. The layout and the text are also very important parts of newspaper adverts. The layout may take the readers look at the main information, and the text is just to inform interested people.
DIRECT MAILING
Direct mailing is another form of advertising. The companies get a list of names and addresses an send leaflets to those people who might be interested in their products. Some people find this direct mailing irritating, wasteful and unsightly, so the leaflets land in the rubbish bin.
advertisements or not, advertising has become indispensable in our economies. It has become a market of its own and it offers a high number of jobs. Moreover, advertisements are an important source of information for the public. And there is something that we should not forget: Advertising enables us to afford such luxuries like TV and newspapers, because without it , they would be considerably more expensive.
INDUSTRY PROFILE
PORFILE OF TELECOMMUNICATION INDUSTRY The Telecommunication industry is experiencing rapid growth on a global scale. This is a direct consequence of technological development and has in turn facilitated the application of new technologies and a consequent increase in economic activity. The Telecommunication Industry is a system of switches and lines that interconnect to provide communication between multiple parties.
The Telecommunications industry includes * Local, Long distance cellular or digital telephone services or paging services. * Internet Services. All of the above operate through networks forming a global telecommunications services begin and end with a local service provider. The local service provider maintains the local lines, handles service and safety concerns and provides switches for interconnection with other telephone service providers. Within this sector, one of the greatest growth areas of recent years has been the development of mobile or wireless telecommunications. Tele is a Greek word meaning
far off so the purest definition is communications means anything that involves sending messages or signals. The first land mobile services were introduced into the UK in the 1940s. The significant expansion of services offered to the general public, including the introduction of mobile phones began in the mid-1980s and rapidly attracted a small but significant number of subscribers. Developments in the early 1990s, such as the introduction of digital networks and the entry of additional service providers into the market, fuelled further increases in the numbers of subscribers TECHNOLOGIES Some of the technological developments that are out there and could shape our futures.
*The digital cable and satellite television facilities now serving Britain could provide the backbone of a new broadband network carrying not just digital television feeds, but personal voice and data delivery as well. Satellite provides another possibility, but existing home satellite terminals are one-way receiving devices only. The Indian Telecommunications network is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for Indias resurgent Indias economic growth. This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Wireline Vs Wireless It has also undergone a substantial change in terms of mobile versus fixed phones and public versus private participation. The preference for use of wireless phones has also been predominant in the sector. Participation of the private entities in the telecom sector is rapidly increasing rate there by presenting the enormous growth opportunities. There is a clear distinction between the Global Satellite Mobile Communication (GSM) and Code Division Multiple Access (CDMA) technologies used and the graph below shows the divide between the two. 1.2 Segment wise Status
1.2.1 Wireline Services With increasing penetration of the wireless services, the wireline services in the country is becoming stagnant. On the other hand, Broadband demandhas picked up and promises to stabilise fixed line growth.
GSM Sector In terms of the Global System for Mobile Communication (GSM) subscriber base thisnow places India third after China and Russia. China had 401.7 million GSM subscribers 1.2.3 CDMA Services CDMA technology was introduced in India as a limited mobility solution. The introduction of CDMA services has created competition, lowered tariffs and offered many citizens access to communication services for the first time Internet Services Internet services were launched in India on August 15, 1995. In November 1998 the government opened up the sector to private operators. A liberal licensing regime was put in place to increase Internet penetration across the country. The growth of IP telephony or grey market is also a serious concern. Government loses revenue, while unlicensed operation by certain operators violates the law and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. The scope of services under existing ISP license conditions are unclear. Manufacture of Telecom Equipment Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many renowned telecom companies setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities in Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. The Government has already set up Telecom Equipment and Services Export Promotion Forum and Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is expected to be a manufacturing hub for the telecom equipment.
private service providers also. This scheme has led to death of distance in telecommunication and is going to be instrumental in promoting National Integration further The robust telecom network has also facilitated the expansion of BPO industry that is having 500,000 employees now and adding 400 employees per day. Annual license fee for National Long Distance (NLD), International Long Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider (ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of Adjusted Gross Revenue (AGR) with effort from Jan 2006. The Governments policy is neutral on use of technology by telecom service providers subject to availability of scarce resources such as spectrum etc. Licence Fees 6-10 per cent of Adjusted Gross Revenue (AGR)
COMPETITION OVERVIEW
Major Players There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm , Tata Teleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications) Bharat Sanchar Nigam Limited (BSNL) Name Bharat Sanchar Nigam Limited (BSNL) Year of Establishment 2000 Company Profile Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline , CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. Global Presence/ Marketing It has a network of over 45 million lines covering 5000 Network towns with over 35 million telephone connections.
Acquisitions / Strategic Alliances Future Prospect BSNL plans to expand its customer base from present 47 millions lines to 125 million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67 million) in the next three years. Mahanagar Telephone Nigam Limited (MTNL) Name Mahanagar Telephone Nigam Limited (MTNL) Year of Establishment 1986 Company Profile MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of Indias key metros. MTNL with a market share of about 13% of the National telecom Network has a customer base of 5.92 million. The Govt. of India currently holds 56.25% stake in the company. Acquisitions / Strategic Alliances MTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL) in 2001 for providing WLL based basic services in Nepal. MTNL has set up its 100% subsidiary , Mahanagar Telephone Mauritius Limited. (MTML) in Mauritius, for providing basic, mobile and international long distance . Global Presence/ Marketing Network The company has 52 subsidiaries in 21 countries as well as operations across four continents. Acquisitions / Strategic Alliances Bharti Company Profile Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bhartis operations a re broadly handled by two companies: the Mobility group and the Infotel group. Global Presence/ Marketing Network The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. Acquisitions / Strategic Alliances Bharti Telecom and British Telecom formed a 51%:49% joint venture, Bharti BT Internet for providing Internet services, in 1998 Bharti Tele-Ventures acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider in Karnataka and Andhra Pradesh circles in 1999 Bharti Telesonic entered into a joint venture, Bharti Aquanet, With SingTel for establishing a submarine cable landing station at Chennai in 2001 A 50:50 joint venture between Bharti and SingTel, to undertake the largest infrastructure project between Singapore and Indian companies in 2001 Future Prospect Bharti Airtel company is planning to set up 3000 more towers as part of enhancing their rural coverage and will now focus on rural and semi-urban areas. Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) in 2006 Merger of seven subsidiaries with Idea Cellular Limited in 2007 Future Prospect Idea also plans to enter rural and neglected circles as a strategy to gain subscribers. Other advancements in the telecom industry will help it cut costs - use of e-mail to send bills to customers; sharing cell sites; smaller base transmission stations that will mean lesser infrastructure requirements and expenses and independent tower operators. Along with its plan to go for a national long distance licence, it will also look at international long distance in the near future.
Bharti AirTel Company that Formulated on 7th July, 1995.Its a public limited company. Internationally, Bharti AirTel owns 3rd biggest mobile operator in Asia. Its a leading integrated telecom services giving by Bharti AirTel limited. Bharti AirTel Limited has grown successfully in partnership with various leading companies of the world -, Vodafone, Singapore Telecom, Warburg Pincus, and British Telecom. BhartiAirtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest cellular service provider with more than 75 million subscribers as of August 2008.It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a
AIRTEL PROFILE
submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Bharti Enterprises has successfully focused its
strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel',one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its 'Beetel' brand Bharti has created a significant position for itself in the global telecommunications sector. BhartiAirtel Limited is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 24 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bhartis successful foray into the Customer Management Services business, Bharti Enterprises dynamic diversification has continued with the company venturing into telecom software development. Recently, Bharti has successfully launched an international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA.
companies is given below: 1. Bharti Airtel Ltd is India's leading provider of telecommunications services. The company has 4 distinct Business divisions - Mobile & telephone services, broadband services, long distance services and enterprise services. 2. Bharti TeleTech Ltd manufactures and exports world-class telecom equipment under the brand 'Beetel'. 3. Telecom Seychelles Ltd provides telecom services in Seychelles, under the brand 'Airtel'. 4. Bharti Tele soft Ltd delivers best-in-class, revenue-critical VAS products and services to telecom carriers. 5. TeleTech Services (India) is joint venture with TeleTech Inc., USA. It offers a range of Customer Management Services. 6. FieldFresh Foods Pvt Ltd is Bharti's venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA. Airtel is a brand of telecommunication services in India operated by BhartiAirtel. AIRTEL is the largest cellular service provider in India in terms of number of subscribers. BhartiAirtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporates). It has presence in all 23 circles of the country and covers 71% of the current population. Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in BhartiAirtel. This is because Singapore-based Asian telecom major Singtel, which owns a little over 30% in BhartiAirtel, is a major player in the 3G space as it has already third generation networks in several markets across aisa. The Company BhartiAirtel is in India the biggest integrated and also the 1st telephone service provider in the private sector, which has footprint in around 23 telecom circles BhartiAirtel Limited has been since its very beginning using the latest technology and thus the company has paved the way for the telecom sector in India with its world-class services and products. This has helped BhartiAirtel Company to grow for the number of its customers has increased very rapidly over the years. The company has around 5o million customers in 2007 and its market share of mobile subscribers in India is at 23.4%.
The company BhartiAirtel Limited's total revenue amounted to Rs.12, 242 crore in 20062007 and the net profit stood at Rs.3, 126 crore. The Company BhartiAirtel is divided into 3 business units that are: Broadband & Telephone (B&T) services Enterprise services Mobile services
Among the various services that the BhartiAirtel Limited Company provides to its customers, the services of broadband and telephone (B&T) are 1 of them. The company provides broadband Internet services of high speed for it has the best network in India. The company BhartiAirtel also provides telephone services in around 94 cities of the country and this helps the people to stay connected with one another. The company plans to expand its broadband and telephone services by providing IPTV services and DTH operations. Further BhartiAirtel provides enterprise services to its customers. The services of enterprise provide telecom end-to-end solutions to customers who belong to the corporate sector and also long distance services to international and national carriers. The company BhartiAirtel has more than 35,016 kilometers of optic fiber, a submarine landing station, and is also a member of South East Asia- Middle East- Western Europe- 4. All this has helped the company to provide the best enterprise services to its customers. The company BhartiAirtel Limited plans to expand its enterprise services so that it can achieve the status of a global carrier within a period of 2- 3 years. Awards and Recognition Wireless service provider of the year 2005 at the Frost and Sulivan Asia -Pacific ICT awards Competitive service provider of the year 2005 at the Frost and Sulivan Asia-Pacific ICT awards Bharti Airtel added the highest ever net addition of 5.3 million customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers in 2006-07 The company will invest up to $3.5 billion this fiscal (07-08) in network expansion.
It has an installed base of 40,000 cellsites and 59% population coverage After the proposed network expansion, an additional 30,000 towers will result in the company achieving 70% population coverage Bharti has over 39 million users as on March 31, 2007 It has set a target of 125 million subscribers by 2010 Prepaid customers account for 88.5% of Bhartis total subscriber base, an increase from 82.7% a year ago ARPU has dropped to Rs 406 Non-voice revenues, (SMS, voice mail, call management, hello tunes and Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in the Q4 of the previous year Blended monthly minutes of usage per customer in Q4 was at 475 minutes Has completed 100% verification of its subscribers and in the process disconnected three lakh subscribers
Chua Sock Koong N. Kumar Kurt Hellstrom Donald Cameron Paul O'Sullivan Pulak Chandan Prasad Bashir Abdulla Currimjee Ajay La l Arun Bharat Ram
CHAPTER 4 OBJECTIVE
Objectives
To recommend measures for improving the product To study the growth of Airtel To study the future plans of Airtel To study the Advertising strategies of Airtel
CHAPTER 5 SCOPE
As learning is a human activity and is as natural as breathing. Despite of the fact that learning is all pervasive in our lives psychologists do not agree on how learning takes place. How individuals learns is a matter of interests to marketers they want to teach consumers in their role as their roles as consumers. They want consumers to learn about their products attributes potential consumer benefits, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer needs but the marketers objectives.
The scope study restricts itself to the analysis of advertising strategy and how airtel products are sold in the market and how this product defers from other existing product. They are many other brands of telecommunication are available but this study is limited to major player of telecommunication, point of view and study airtel telecommunication living behind the others existing product.
Research Methodology:
Methodology is a way to systematically solve the research problem. It may be understand as a science of studying how research is done scientifically. are: Developing the questionnaire regarding the customer satisfaction of the product Optimum respondents as a sample size are chosen for the activity to resemble the entire population. Get the questionnaire filled by the customers in the place through interview or personal interaction. Analysis of data on computer with special market research statistical package called SPSS. In this research questionnaire is framed in such a way management wants to know how the customers are taking things that they had done to them and to find out the expectation of the customers thus it will impact in policy making of the firm in the current fiscal year. The questionnaire designed had closed question to find the respondents actual feeling as well as their opinion rating about the satisfaction regarding the product. The methodology followed for conducting the study includes the specification of research design, sample design, questionnaire design, data collection and statistical tools used for analyzing the collected data. Research Methodology is a step by step study of a problem. Physical activities involved in the study
RESEARCH DESIGN:
The research design is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection, measurement and analysis of data.
Descriptive research
This study is descriptive in nature where the data is collected through well structured questionnaire and from the information taken from the customers.
Sampling Design/Techniques:
Sampling is the process of selecting a sufficient number of elements from the population, so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements. Sampling design is to clearly define set of objects, technically called the universe to be studied. The sampling design used in this study is probability sampling. Sampling technique used is Simple Random sampling.
Population:
Population for this research is set as costumers who are using AIRTEL
Sample size:
The research was conducted in Chennai with 50 respondents.
Primary data:
Primary datum are collected through observation, direct communication with respondent, and finally by distributing questionnaire to the employees using Random sampling technique the employees are selected to fill the questionnaire.
Secondary Data
Secondary datum is collected from the official record to obtain informations regarding the rate of absenteeism and the various reasons for absenteeism.
ADVERTISING STRATEGY
After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). All the players except RIM offered services based on the Global System for Mobile (GSM) technology. RIM provided services based on Code Division Multiple Access (CDMA) technology as well as GSM. As competition in the telecom arena intensified, service providers took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted
the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea, relied heavily on its creative media advertising sans celebrities.
So, most of us have a dear friend, a contact friend, a beer friend, a kanjoos friend, a weirdo friend, a selfish friend irrespective of the adjective, they are still friends. The advertisement, perhaps aimlessly, reminds us of the times we spend with different people and shared our lives with. So an ad, which impels you to think, and sometimes makes you nostalgic of those precious college days, can certainly be counted among the efficient commercials. With the jingle, Har ek friend zaroori hai, yaar, ad agency Taproot has continued the legacy of inimitable standards of Airtel ads. The ad conveniently compels its target audience to keep in touch with every friend as they all are important in different sense of the word. So to keep in touch, what can be a better way other than calling them up? So even though the message has been communicated well, ensuring that individuals would automatically choose Airtel over other providers is little dicey to answer. So, these types of commercials definitely have a good sentimental value, but their commercial viability for the company is still challengeable. As when it comes to actual usage, consumers look for various features and attributes of the service provider before taking a decision. In a country like India, where most of the consumers still prefer price over brand, guaranteeing increase in sales through commercials is not a good idea. However, brand visibility, an important aspect of advertising, can definitely be ensured. While for t consumers, the ad has come as a welcome relief from tiring skin whitening and dandruff free hair commercials!
'
Over the last couple of years, the market has grown considerably, with deeper penetration and wider usage of voice and data services, accompanied by much higher competitive intensity," Atul Bindal, chief marketing officer, Bharti TeleVentures, expands on this. "In this context, differentiating merely on network, coverage and SMS is just not enough. You need to go beyond all the rational identifiers - which are prerequisites in any case - and connect at a deeper level. We needed a strong differentiator in an increasingly commoditized and crowded market. We found this differentiator in a core human truth that defines our category - which is that there are moments when you need to make your point, when you need to be heard. Expressing and communicating are perhaps two of the most basic emotions. AirTel enables you to make your point in the most expressive way, anytime, anywhere. The campaign is towards owning this through 'Express yourself.' We believe 'Express yourself' allows us to connect at a deeper level and create a longterm platform for the brand."For AirTel, the challenge also lay in presenting a unified 'face' to the consumer. This assumes significance when viewed in the light of the company's pre- and post-paid communication, which, in the past, had been treated very differently. Brand image, as a result, was being driven in two different dimensions. "Brand AirTel is a category leader straddling completely different market segments such as consumer, business and corporate, as well as different voice, data and payment platforms," says Bindal. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers. "One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought. "The moment you have as broad a canvas as 'Express yourself', it becomes easy for anyone working on the brand to come up with new ideas and executions. That's what makes a good campaign idea," observes Rediff's Prashant Godbole, who, along with creative partner Zarvan Patel, conceived the campaign.
This is just the proverbial tip of the iceberg, Patel adds. "We will be taking the idea forward in many different ways in the forthcoming work," he informs. Patel also credits his creative team for "fleshing out the idea In October 2002, Magic led the market, with 30% of the market share. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. However, given the increasing competitive pressure, doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future.
AirTel launches VQE (Voice Quality Enhancer) for the first time in Kolkata
Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata. VQE is a revolutionary new system that spectrally reduces background noise. It eliminates acoustic echo, adjusts speech levels in both directions and does away with low or distorted speech so that every word of your's can be heard clearly, wherever you may be speaking from.The VQE technology has been sourced from Tellabs of USA, world leaders in Voice Quality technology. Some of the prominent GSM operators using Tellabs solution in the world are SingTel, Bell South, Telstra, BT Cell etc. The Tellabs noise reduction technology removes high background noise from the wireless side of the call thus delivering near wireline clear call quality on mobile phones. The Tellabs 3000 series of voice-quality enhancement echo technology also eliminates the complexity of acoustic echo generated by digital mobiles and hands free kits. So go ahead. Express yourself and feel the difference on Kolkata's only Non-Stop 2.5G Network.
TUNE
CROSSES
AIRTELS
Cellular service provider AirTel seems to have hit the right note with its new commercial starring musician A R Rahman. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to AirTel users. But the interesting part is that the ringtone is being flaunted not just by AirTel customers but by customers of rival service providers like vodafone, idea and Dolphin as well! We did expect the tune to catch up but this has really exceeded our expectations, a dmits Bharti Cellulars chief marketing officer (western region) Pratik Pota. Overall, he explains, it is a great advertising product for AirTel and works like a walking, talking brand ambassador. The ringtone which is also the jingle for AirTels TV commercial, is proving to be a potent advertising tool for the company. It is not very clear what this means for the other cellular operators. Cellular users have been forwarding the tune to one another, which according to Mr Pota, has given AirTel a chance to enter the mind of the user irrespective of which service he opts for. It gives the user a chance to go back to the AirTel product and acts as a strong reminder medium, he explains. Marketing professionals like Samsika Marketing Consultants managing director Jagdeep Kapoor point to the usage of an audio celebrity as something that is significant. The normal practice is to opt for film stars and sportsmen rather than an audio personality he says. Rivals, though seemingly unfazed by the phenomenon, seem to be doing their own homework on this brand of advertising. While none of them commented on AirTels strategy and its impact on their own subscriber base, one advertising professional working with a rival service provider opines that the tune is transient and not likely to have any long term impact as a brand building tool. Being the latest entrant in the Mumbai circle, AirTel has had to find ways of cutting through the clutter. Says Mr Kapoor, AirTel will have try to find ways to attract new customers and convert the existing ones. Explaining that the usage of an audio celebrity was more strategic than tactical, he adds that non-AirTel users will have the AirTel brand experience inspite of not using the service. While Mr Pota highlights the fact that the usage of the tune by other operators means free advertising for AirTel and the users having a positive disposition towards the product, the nature of reaction from competition remains unclear. Competition will not do well to adopt a knee jerk reaction and will have to come out with advertising that is well thought
out explains Mr Kapoor. He anticipates a situation where the new entrant (AirTel) will continue to be more aggressive.
MILESTONE OF COMPANY
2 3
Mobile phone operator, Bharti Airtel, became the first Indian telecom company to serve 50 million customers last month, and is now the worlds tenth largest wireless carrier. Bharti has doubled its user base in the past 14 months alone, and hopes to reach 100 million subscribers by 2010, according to company executives. Our next 50 million will largely come from rural India as our plan is to reach 5,200 census towns and over five lakh villages, covering 96 per cent of the Indian population, said Bharti Airtel president and CEO, Manoj Kohli, at a news conference this week. Bharti Airtel, Indias leading telecommunication services provider, today announced that it had crossed the 50 million customer mark. With this, Bharti Airtel has achieved the distinction of becoming the fastest private telecom company in world to achieve this landmark in a single country - within 143 months of start of operations. The 50 million customer base covers mobile as well as broadband & telephone customers. Commenting on this major global landmark, Mr. Akhil Gupta, Joint Managing Director, Bharti Airtel said, We are delighted to have achieved this major landmark, which puts Bharti Airtel amongst the top telecom companies in the world. It underlines the strength of our unique business model and our vision to provide affordable services like lifetime prepaid to customers across the length and breadth of the country. I would like to thank our partners for having shared our vision. This milestone highlights the emergence of India as one of the top telecom markets in the world and we are proud to have been at the forefront of this growth. Going forward, we believe
this growth momentum will remain intact and we are gearing towards the 100 million customers mark. 6 Bharti Airtel crossed the 10 million customer mark in November 2004. In July last year, it crossed the 25 million customer mark. 7 The company added the next 25 million customers in just 14 months. This is amongst the fastest rate of customer additions by any telecom company in the world. 8 Mr. Manoj Kohli, President & CEO, Bharti Airtel added, This is a very proud moment for us and I would like to thank our 50 million customers for believing in Airtel. It is a tribute to our commitment to provide best-in-class services to our customers and lead the market with exciting innovations. We are committed to create a world-class organization and benchmark it with the best in the world. As the market gets ready for the next wave of growth, we are committed to expanding our telecom networks wider and deeper across the country and partner Indias growth story. 9 In the mobile business, Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500,000 villages across India by 2010, thereby covering 95% of the countrys total population. The companys strategic focus will be on further strengthening the Airtel brand through best-in-class customer service, which is backed by wide national distribution. 10 In the Enterprise business, Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations. In Broadband & Telephone SBU, Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns, with a sharp focus on the home and SME segments. It is readying to offer triple play to its customers with the launch of its IPTV service.
AirTel has taken the lead on many occasions. It has been the first
To launch Cellular service in Delhi on November, 1995. Operator to revolutionalize the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms)in 1995. To expand it's network with the installation for second mobile switching center in April, 1997 and the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. First to provide roaming facility in USA. AirTel has the largest automatic roaming service "SMART ROAM"- National in 400 cities in India and "SMART ROAM" International in over 60 countries and 95 networks all over the world. It is also the first company to export its products to the USA.
Review of Literature
customer satisfaction
Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customers expectations. Customer satisfaction is one of the main objectives of any organization. Every organization tries to know the customer satisfaction about their products. So a study on customer satisfaction helps the organization as well as me to gain a vast knowledge over the real world tastes and preferences of customer Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. In general satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. As this definition makes clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the brand, not just a rational preference. The result is high customer loyalty.
Why is it important?
There are a number of reasons why customer satisfaction is important in AIRTEL: Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes. Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. Customers are recognized as key partners in shaping service development and assessing quality of service delivery. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.
DATA ANALYSIS
Q1 Types of Respondents
Male Female 0% 0%
30%
70%
The total number of respondents was 80.Out of which 24 were female respondents and rests 56 were males.
Q2AGE
<20 20-35 0% 10% 30% >35
60%
The respondents are categorized in three different groups. First group consists of person less than 20 years of age. These are mainly teenagers and are most likely to buy or use new mobile connections. The second group i.e.20-35 years of age are already using one or the other connection. The last group was mainly of somewhat older people and consists of 30% of the total sample.
airtel 32%
vodafone 18%
The graph shows the % distribution of customers of different service providers .There are some more players in the market but for the shake of clarity, only these six were given consideration. Out of the major six players, Airtel is found to be having the largest market share with 32%.the main competitors to AIRTEL in terms of number of customers are BSNL and Vodafone.
Q.4
15
10 45
30
The advertisements of Vodafone were found to be more popular among the respondents. Most of them talked about the hutch dog. Similarly the tag line of IDEA an idea can change your life is also very popular. AIRTEL ads are supposed to be more or less centered on emotional factors.
75% of the respondents said that they like the TV ads more than any other medium of advertisement. The main internet users now a days i.e. youngsters were found to have a liking towards the advertisements used on internet. The housewives and the people older than 3 years like to go through advertisements in newspapers and magazines etc, and also like the advertisements on radio or local FM stations.
Emotional 60%
funny 5% Boring 0%
Major portion of the respondents categorized AIRTEL ads as emotional ads. In every advertisement, one or the other facet of the human relations is at the centre. The AIRTEL ads were also considered to be different from the competitors and innovative. Many respondents claimed that the fun part was always missing from the AIRTEL ads.
rehmaan 60%
Out of all celebrities endorsing AIRTEL, A.R.Rehmaan is most famous among the viewers. Almost every respondent linked the AIRTEL success with the famous TONE composed by Rehmaan.The girls mainly like the advertisements with Saif Ali khan and Shahrukh khan. One of the finding was that using too many celebrities in advertisements is not that much effective. AIRTEL advertisement with seven celebrities including Saif, Kareena, Zaheer khan, Gautam Gambhir is supposed by the viewers as wastage of money.
60% of the respondents believe that the Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. AIRTEL itself is already using a number of celebrities in its advertisements like shahrukh khan, Saif ali khan,kareena,Sachin,Madhvan etc. so in near future also AIRTEL should move on with celebrity endorsements as viewers give them value and have a liking towards them.
Major portion of the viewers got the message from the AIRTEL ads as it is a brand that offers services at cheaper price. The ads dont give any hint about the service quality. So AIRTEL should give some consideration to this fact and try to emphasize on the better quality also through the advertisements.
60
50
40
30
20
10
About 50% of the respondents had this belief that the claims made about the connectivity, voice clarity etc in the AIRTEL ads are true. The major portion of these 50% respondents was actually the AIRTEL users.35% of people suppose these claims as just a part of advertisement and non existing in actual.
6% 4% 20%
70%
70% of the respondents said that they started using that sim card because of one or other type of scheme. The different types of schemes like-10 paisa call, night calling free etc help the customers make their mind to shift to that particular service provider. The advertisements in general have a very small impact on their decision.
CHAPTER 9 CONCLUSION
CONCLUSION:
While analyzing the complete yield of the company, It was observed that the network coverage of the company is up to the work. The point where the shoe pinches is the satisfied with the working of the customer service cell. The internet or the surfing experience is good but they have not been properly presented to the masses. The company should focus on the promotional activities to create a good cliental.
CHAPTER 10 SUGGESTION
SUGGESTIONS
The main objective of every analysis is to find whether the customers are satisfied with the services provided. Following are some of the suggestions given for the improvement of the product and services Most the people are satisfied with the offers provided but still some of them suggested the following for betterment - Local and STD rates should be slashed down further - 1 paisa per min offer should be introduced - Customers feel that compared to other network services offers provided are less - More slash in ISD rates Regarding the internet connection customers feel that the wireless modem provided should be of more speed i.e., they want it to be as speed as the landline modem Even though many people are satisfied with the Network range but people from remote areas of Chennai want improvement in the network connection Customers suggested to improve the customer care services and the response given by the customer care employees should be improved Some suggested that the dialer tune services should be increased
BIBLIOGRAPHY
Bibliography
Web sites:
ANNEXURE
Questionnaire AIRTEL -- CUSTOMER SATISFACTION 1. Name: 2. Sex : 3. Age : Female 15-25 Male 25-35 35-45 45-55 55-65 Above 65
6. Is AIRTELs signal at your area is good? Yes No 7. Are you satisfied with our customer care services? Satisfied Not satisfied Never used 8. Does our customer care employees respond well for your questions Good response Bad response 9. Do you use Internet services Never used
Yes No dont know that internet connection was there If yes, are you satisfied with internet services: Yes No 10. How many times do you login to internet per day Once twice more 11. Rate the internet speed not even once
12. Maximum recharge per month 10-100 100-200 200-300 13. Are you using any offers Yes No 300-400 400-500 Above 500
If yes, mark the offers you are using now STD call cutter Local call cutter Message offer Songs 14. Are you satisfied with the offers Satisfied Not satisfied 15. Are you update with current offers
Yes No 16. Did you use any other network connection other than AIRTEL Yes No 17. Do you feel AIRTEL is better than any other connections Better Not better 18.Any suggestions:_______________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________