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A Project Report On “Comparative analysis of MARKETING STRATEGIES OF Vodafone & AIRTEL” “BACHELORS OF BUSINESS ADMINISTRATION” SUBMITTED BY:- Deepanshu Tanwar BBA 3rd sem Roll No. 083 SUBMITTED TO Mrs. Anjali Singh lecturer Jagannath international management school Vasant kunj New Delhi Acknowledgement I DEEPANSHU TANWAR, SINCERELY THANKFUL TO ALL THOSE PEOPLE WHO HAVE BEEN GIVING ME ANY KIND OF ASSISTANCE IN THE MAKING OF THIS PROJECT REPORT. I express my gratitude to Mrs. Anjali, who has through her vast experience and knowledge has been able to guide me, both ably and successfully towards the completion of the project. I express my gratitude to Jagannath international management school. I would hereby, make most of the opportunity by expressing my sincerest thanks to all my faculties whose teachings gave me conceptual understanding and clarity of comprehension, which ultimately made my job more easy. Credit also goes to all my friends whose encouragement kept me in good stead. Their continuous support has given me the strength and confidence to complete the project without any difficulty.

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Last of all but not the least I would like to acknowledge my gratitude to the respondents without whom this survey would have been incomplete. Declaration I, deepanshu tanwar hereby declares that the project report under title “Comparative Analysis of Marketing Strategies of Vodafone & Airtel. ” Is my own work it is the analysis of the big scale sector of communication. This project involves the big scale services involved in telecommunication sector provided by Airtel and Vodafone to its customers. The survey was conducted so as to analyze the big scale sector prevailing in the current industry and the improvement that can be made upon it. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention. Thank You Deepanshu tanwar CONTENT 1. Synopsis 2. introduction 3. Need of the study 4. objectives of the study 5. introduction of the topic

• Telecom sector in India

• Airtel

• Vodafone

• Background

• Company profile of Airtel

• The magic

• Comparison between marketing strategy of Bharti Airtel and Vodafone 6. Research Methodology

• Type of research methodology

• Data collection method

• Method of collection 7. Data Analysis and Interpretation 8. Swot analysis 9. Suggestion & Conclusion 0. Recommendations 11. Bibliography 12. Questionnaire (( OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals.

For this it is very essential for an organization to know about the view of consumers and their competitive products. This survey research may be also aimed as to estimate potential buyer for the product.

The objective of the study is as under:- 1. To identify the difference between market performance of Airtel industry and Vodafone. 2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. . To compare various parameters of marketing strategies, manufacturing process, technology adopted production policy, advertising, collaboration, export scenario, future prospect for the two companies and government policies. 4. To study customer buying behavior and factors which influence the purchase decision process. 5. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject. The prime objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the impact of WLL on Airtel. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

PRImary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Type of Research Methodology EXPLORATORY: TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THE OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED USEFUL FOR GIVING RIGHT SUGGESTION TO THE COMPANY. DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION.


• SECONDARY DATA PRIMARY DATA WAS COLLECTED USING THE FOLLOWING TECHNIQUES Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Data used for the research work was primary in nature.








• IDENTIFYING THE NEEDS TO BE KNOWN. LIMITATIONS No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:- 1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/whole sellers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience due to short period of time. 8. Some retailers did not answer all the questions or do not have time to answer. SYNOPSIS Telecom Sector In India Than 125 million telephones network is one of the largest communication networks in world, which continues to grow at a blistering pace. The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. The telecom sector has shown impressive growth during the past decade.

Today, more Two striking features of this growth viz. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have predominated the telecom sector. The share of mobile phones (including WLL mobile) has overtaken the hare of landlines with 62% in the total number of phones. The private sector’s contribution is also increasing rapidly. Currently more than 30 lakh phones are being added each month and it is targeted that by the end of 2008 the total number of phones may reach a level of 350 million taking the tele-density to more than 30% which is currently at 24. 63%. Network Expansion: The total number of telephone subscribers has reached 281. 62 million at the end of January 2008 as compared to 232. 87 million in July 2007. The overall Teledensity has increased to 23. 3% in January 2008 as compared to 21. 20% in August 2007. Wireless Service: The wireless segment saw a surge of 8. 77 million subscribers last month compared to 8. 17 million in December2007. This pushed the total wireless subscribers base to 242. 40 million by Jan 31 2008. Wire line Subscribers: The wire line segment subscriber base stood at 39. 73 million with a decrease of 0. 16 million at the end of January 2008. Teledensity: The gross subscriber base reached 206. 83 million at the end of March 2007. The Teledensity is 24. 63%at the end of January 2008 as compared to 18. 1% at the end of March 2007, registering an increase of 6%. Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. The share of private sector has risen to 85 per cent in December 2007 from 64. 14 per cent in November 2006. Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition.

The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service. The long distance domestic as well as international charges have also fallen considerably.

Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act, 1997 enacted on March 28,1997. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy (NTP) 1999. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and affordable prices. A brief history of Tele sector in India In the early 1990s, the Indian government adopted a new economic policy aimed at improving India’s competitiveness in the global markets and the rapid rowth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The circles are further classified under “A,” “B” and “C,” with the “A” circle being the most attractive and “C” being the least attractive. The regulatory body at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses for each metro and circle.

Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each. In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government. AIRTEL Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel 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 (as of FY07). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. VODAFONE ESSAR Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.

Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country’s 23 license areas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom circles in India . Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country’s 23 license areas. Introduction of the topic BACKGROUND The project is an extensive report on how the Airtel Company markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products.

The report begins with the history of the products and the introduction of the Airtel Company. This report also contains the basic marketing strategies that are used by the Airtel Company of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues. In today’s world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Today’s market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there.

Company Profile of Airtel Vision “As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer. ” These are the premise on which Bharti Enterprises has based its entire plan of action. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services.

Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti had approximately 3. 21 million total customers – nearly 2. 88 million mobile and 334,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India’s mobile networks. The Company is also implementing a submarine cable project connecting Chennai-Singapore for providing international bandwidth. Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. Bharti Tele-Ventures’ strategic objective is “to capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”. The Company has developed the following strategies to achieve its strategic objective:

• Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage;

• Offer multiple telecommunications services to provide customers with a “one-stop shop” solution;

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

• Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;

• Leverage strengths of its strategic and financial partners; and

• Emphasize on human resource development to achieve operational efficiencies. Businesses Bharti Tele-Ventures current businesses include –

• Mobile services Fixed-line

• National and international long distance services

• VSAT, Internet services and network solutions

• Broadband services with DSL and Wi-Fi network Competitive Strengths Bharti Tele-Ventures believes that the following elements will contribute to the Company’s success as an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy:

• Nationwide Footprint – approximately 92% of India’s total mobile subscribers resided in the Company’s fifteen mobile circles.

These 15 circles collectively accounted for approximately 56% of India’s and mass; 

• Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities.

• The strong brand name recognition and a reputation for offering high quality service to its customers;

• Quality management team with vision and proven execution skills; and 

• The Company’s strong relationships with international strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance. Brand Architecture: Bharti is working on a complex three-layered branding architecture — to:

• Create specific brands for each service,

• Build sub-brands within each of these services and

• Use Bharti as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure. Airtel – The flagship brand for cellular operations all across the Indian country. Touchtel – The brand earmarked for basic service operations.

India One – The brand for national long distance (NLD) telephony Though the costs of creating new brands are heavy but the group wants to create “distinct independent brands to address different customers and profiles”. Brand Strategy: To understand the brand strategy, let’s first look at the brand building exercise associated with Airtel — a brand that had to be repositioned recently to address new needs in the market. When the brand was launched seven years ago, cellular telephony wasn’t a mass market by any means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep — sometimes as much as buying a second-hand car. Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. But Sachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. “Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack.

The idea was to become a badge value brand,” he explains. So the Airtel “leadership series” campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel was positioned as an inspirational brand that was meant for leaders, for customers who stood out in a crowd. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand — leadership, dynamism and performance.

These were valuable qualities, but they only took Airtel far enough to establish its presence in the market. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience. And the various brand-tracking exercises showed that despite all these good things, there was no emotional dimension to the brand — it was perceived 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. The reason with tariffs identical to competitor Vodafone telecomm and roughly the same level of service and schemes, it had now become important for Bharti to “humanize” Airtel and use that relationship as a major differentiation.

The brand had become something like Lufthansa — cold and efficient. What they needed was to become Singapore Airlines, efficient but also human. A change in tack was important because this was a time when the cellular market was changing. The leadership series was okay when you were wooing the creme de la creme of society. Once you reached them you had to expand the market so there was need to address to new customers. By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3. 77 lakh (it now has 1. million customers). And with tariffs becoming more affordable — as cell companies started cutting prices — it was time to expand the market. How could Bharti leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customer’s minds was also changing.

Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives — it was, again, a relationship game that needed to be reflected in the Airtel brand. Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. That is precisely what the brand tried to achieve through its new positioning under the Airtel “Touch Tomorrow” brand campaign.

This set of campaigns portrayed mobile users surrounded by caring family members. Says Sachdev: “The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. ” As it looks to expand its cellular services nationwide —to eight new circles apart from the seven in which it already operates — Bharti is now realizing that there are new compulsions to rework the Airtel brand, and a new exercise is being launched to this effect. Right now, the company is unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel as a power brand with numerous regional sub-brands reflecting customer needs in 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 now getting increasingly saturated. To bring in new customers, the company decided that it needed to segment the market. One such experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket and for those who are “young at heart”. With its earlier positioning, Airtel was perceived as a brand for the well-heeled older customer; there was nothing for younger people.

With Youtopia, Airtel hoped to 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 time when they make the maximum number of calls. It also set up merchandising exercises around the scheme — like a special portal for young people to buy things or bid for goods. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and 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 brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. “The name was chosen from the popular movie title It Takes Two to Tango: 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 with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services — or permanent Internet connectivity on the mobile phone — which Airtel is expected to launch soon.

The Magic Perhaps the more ambitious experiment has been with Magic — the pre-paid card. The idea was to make the brand affordable, accessible and, most importantly, feasible as a means of expanding the market even faster. PHASE I – Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. Such a customer used the phone sparingly — mostly for emergencies — and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges). To achieve its objectives Bharti did three things.

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

• Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. Third, to make the product more “approachable” to the customer, the company came with vernacular ad campaigns Like “Magic Daalo Say Hello” which appealed to local sensibilities. This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Delhi, a ruse that saw the number of subscribers go up from 5. 47 lakh to 1. 2 million today, overtaking Essar’s branded pre-paid card Speed, which was launched much ahead of Magic.

The company is now re-working its Magic strategy even further. Earlier, the branding strategy was aimed at roping in only interested customers — that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having been allowed limited mobility at far cheaper rates, mobile service providers 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 new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card. PHASE II – Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card 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 medium designed to connect with the masses of India

• Youth based – romance driven strategy platform makes the value proposition of Airtel Magic – ‘Mumkin Hai’ come alive

• All elements – user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class non-mobile user. Airtel Magic positions itself on the platform of being excellent for emergency situations – increasing productivity as a part of everyday life.

• Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card. Airtel today unveiled its strategy for market expansion with the launch 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 value proposition is centered around a person’s desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign 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 want to 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 opening up new horizons. It gives you the freedom to control your life in a way never possible efore. Indeed, anything that you think is possible is possible with Airtel Magic.

The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created to capture this effectively. This strategy is designed to help us talk to this segment directly in the tone, manner & language of the masses. The “Mumkin hai” value proposition will help us expand the market and gain a higher percentage of market shares in the process. The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “Mumkin Hai” spirit (infact that is the reason they were selected as brand ambassadors). Sharukh rose from a TV actor to become India’s top film star and national heartthrob.

Kareena’s success is due to her ‘attitude’, talent, hard work and the sheer ability to make a mark in such a short time. Both these stars have 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 film idiom, magnifies the empowering optimism of “Mumkin Hai”, in the endearing 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 get when a dream is made possible and a victory of the heart is won). The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A, B & C. The estimated addressable market of such customers in the next two years is around 25 million in Airtel’s 16 states. The new strategy aims at correcting the perception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios. The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of Airtel Magic’s new multi-media campaign.

The campaign has been created by Percept Advertising. PHASE III – Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign

• First time ever in India – any pre-paid card brand gives such reedom to recharge any value

• A combination of the film genre exposed through the TV medium designed to connect with the masses of India

• Youth based – romance driven strategy platform makes the value proposition of Airtel Magic – ‘Aisi azaadi aur kahan? ” come alive

• Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to Mumkin Hai’. . The value proposition is centered on a person’s desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign 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 want to make all their dreams, hopes & desires come alive… instantly . At a amount of your choice you can recharge your account with available validity time . Improving productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before. Indeed, anything that you think is possible is possible with Airtel Magic. The new brand slogan ‘Aisi azadi aur kahan’ has been specially created to capture this effectively.

Other Brand Building Initiatives:- The main idea is to stay ahead of competition for at least six months. Working on the above game plan Bharti is constantly coming 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 roaming facilities, Airtel has devised common numbers for subscribers across the country for services like customer care, food services 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 to close and then again open new accounts at another place.

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

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

• Bharti, for the first time for a cellular operator, has decided to offer roaming services even to its pre-paid customers, but the facility would be limited to the region in which they buy the card. To ensure that customers don’t migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), the company 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 will provide real benefits to customers. The idea is to create an Airtel community. Another key area which Bharti is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network.

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

• Pre- paid cards are really catching up with the mobile phone users 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 a fast-moving consumer service, the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances.

Bharti is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low for consumers and making recharging more convenience.

• Bharti is in the process of launching a new system in alliance with Mumbai-based Company Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a card. The system will not only save users the hassle of going out and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards.

• Bharti Televentures has tied up with ‘Waiter on wheels,’ a company delivering food at home, to reach its Magic pre-paid cards to subscribers’ doorsteps. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop.

Apart from improving the convenience of recharging, mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value proposition for its pre-paid service. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers.

• Bharti Cellular has also launched a special service, CareTouch, for high-value, corporate customers, providing them with instant, single-point access for any assistance they require. Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, 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 they save time.

Dedicated ‘CareTouch’ executives are expected to assist customers with any service on priority basis. Besides the 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 based interactive music dedication show exclusively for Airtel and Airtel Magic customers.

Highly interactive VJ based show with real-time feedback mechanism. Both brands joined hands to target the high growth youth segment. Bharti’s View on its Branding strategy:- First, brand building efforts in today’s context have to be seen in a more holistic manner. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts.

Unflinching orientation to customer needs is the second key success factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at the same time, becoming more individualistic in their needs and far more demanding with the passage of time. Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs, and then reacting in “real-time” are essential to attract and retain customer loyalty — a key element of creating brand equity in the present situation. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation. As far as allocation of time and financial resources are concerned, too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to say that advertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide “reengineering” 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 the fundamentals, the enterprise itself becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. It is, however, crucial to note that in the years to come, not only will the 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 be longer and will need sustained and focused efforts. Comparison of marketing strategies between Bharti Airtel and Vodafone. Purpose of comparison The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti Airtel and its rival Vodafone

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

Why comparison with vodafone ? Bharti Airtel is the leader in telecommunication sector. ? Bharti Airtel holds the lion share of market of communication sector. ? However, Vodafone has been giving tough competition to Bharti Airtel. ? Vodafone is the second largest player and share holder in Communication sector. ? Since its launch Vodafone has been adopting aggressive marketing strategies. The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month of its first launch of postpaid subscription in 2002. AD. ? With a different technology Vodafone creates its own market. ? Vodafone odafone. Today deals in every business of communication sector. ? Vodafone making and changing the strategies to capture the market shares Brand positioning by Bharti Airtel Market segmentation ? Geographical segment (metropolitans & cities India) ? Demographic segment – middle income groups ? People age group of 20 to 28 year Target marketing People who living in cities and towns. ? Poor or middle income group people. ? Youngsters in big cities. ? Businessmen Positioning ? Creating brands (Sharukh khan & Sachin Tendulker) ? Ads and promotions ? Promotion for study of poor childrens. Marketing mix ? Price: low price strategy ? Place: maximum outlets and service centers ? Product: verities available for various groups ? Promotion: various schemes for pre-paid and post-paid MARKETING STRATEGIES OF VODAFONE. Vodafone target the rural India The main targeted customers of Vodafone are from rural India. By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns.

Offering cheap handsets Vodafone offers cheap and free connections to all customers. The cost for these sets was Rs-799-849-1099set and onward.

Free support and services In every district and big towns Vodafone opens its service centers to provide better support and services. Strong logistics and supply chain Vodafone has a strong logistic and supply all over India. In every small town the potential customers can easily purchase the Vodafone SIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices. BRAND POSITIONING BY VODAFONE Market segmentation ? Geographical segment (rural India) ? Demographic segment – middle income groups Target marketing ? People living in small towns and villages. ? Poor and middle income groups. ? Youngsters in big cities. ? Businessmen Positioning ? Creating brands ? Ads and promotions Marketing mix ? Price : low price strategy ? Place : maximum outlets and service centers ? Product : verities available for various groups ? Promotion: various schemes for pre-paid and post-paid Services provided by Bharti Airtel

• Mobile services with GSM technology

• Fixed-line connections

• National and international long distance services

• VSAT, Internet services and network solutions

• Broadband services Services provided by Vodafone. ?mobile services with GSM technology ?fixed-line telephone services ?Universal Internetworking ?VoIP (Voice over Internet Protocol) ?Interactive Television ?Visual Communication ROADBLOCKS CURRENT POSITION High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees. Inadequately funded businesses / weak and fragmented promoters Businesses that have since been adequately funded growing at over 60% per annum, while businesses with weak promoters continuing to languish – spate of acquisitions / mergers, with 4/5 major groups emerging in the last one/two years.

Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making roles vested in different bodies. Issues relating to unfavorable interconnect terms for private operators, pass through income, intra circle long distance, spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI (Mahanagar Telecom Nigam Ltd. ) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies for usage by GSM operators. Problems in Financial closures due to: Licensing tenure of 10 years ? Large upfront cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. ? Licensing tenure increased from 10 to 20 years ? Large upfront cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial institutions. Foreign ownership / change of partner limitations Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing ease of entry / exit – paves the way for full control of businesses by foreign companies.

Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom. 2. 2 DEVELOPMENTS IN THE CELLULAR INDUSTRY The interconnection regime between cellular operators and fixed-line operators is still biased against the former. Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration rate is still very low at 0. 8 percent in a nation 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 operating environment and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti Cellular. Bell South International has also indicated its intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications.

First Pacific’s (based in Hong Kong) continued commitment to Escotel is uncertain, and the former is reviewing various options. The string of sell-outs notwithstanding, there has been a erger and acquisition wave sweeping across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 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), and Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications.

Going forward, Bharti is likely to merge all its cellular 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.

Bharti emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Hutchison with three, and Vodafone and Idea cellular with one each. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Vodafone have not made any headway. BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid October. Once BSNL rolls out its service, most telecom circles will have four cellular operators.

There will be tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2. 5 times, netting Rs8. 3 billion. This will be used to fuel its investment in long-distance, basic and cellular services. As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive.

While both Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question. In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was taken over by the United Kingdom based telecommunication company name Vodafone telecomm services and comes with the name of Vodafone essar. Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication Maharashtra in 2008. Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and take over first rainbow in Rajasthan with CDMA network criteria. Building visibility and awareness Deviating from competing on the price platform, cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns.

Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively 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 benefit programs. Orange in Mumbai offers “Orange Holidays” and “Orange Monsoon Offers” at very attractive rates and added benefits like discounts on airfare, food and beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops.

Enterprise mobile applications — promising revenue stream All along, customer acquisition and the top line have been the focus. Few operators have concentrated on offering differentiated services for businesses.

However, as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now seriously looking at the enterprise segment for provisioning superior services. Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and instant alerts are being offered. A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars.

Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can be barred, limiting access to select numbers and diverting calls to one single number. Broadcasting services are also quite popular, especially among fast food centers that have a central number. Group SMS is quite popular, especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward transactional alerts to their customers. 2. 3 FUTURE TRENDS AND DEVELOPMENT There will be more competition, forcing operators to constantly focus on differentiations to maintain their lead.

The implementation of enhanced networks like 2. 5G will enable operators to offer data services. This is an opportunity to customize and differentiate better.

• The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled, thus there is less chance of a cartel being formed.

• Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber.

• The bigger the service provider’s national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous. Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies. 2. 4 REGULATORY ISSUES The operations of this sector are determined as under the Indian Telegraph Act of 1885. A document buried in the sands of time.

The next major policy document, which was produced, was the National Telecom Policy of 1994, a consequence of the on going process of liberalization. Year |Event | |1851 |First telephones in India | |1943 |Nationalization of telephone companies | |1985 |DOT was created | |1986 |Creation of BHARTI and VSNL | |1991 |Telecom equipment liberalized | |1994 |Licenses for paging | |1994 |Telecom policy announced | |September 1994 |Guidelines for private sector participation in basic services | |November 1994 |Cellular licenses issued for metros | |December 1994 |Tenders for cellular licenses in 19 cities apart from 4 metros | |January 1995 |Tenders for 2nd operator in basic services apart from DOT on circle basis. | |August 1995 |VSNL launches Internet services | |January 1996 |TRAI formed | |November 1998 |Internet policy announced | The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a series of action points. Like other policies, it sought to achieve the impossible in finite time like improve quality of service and its availability, wide coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9. 5mn additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle.

The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTI have the option to become the third cellular operator in future. Government did not achieve most of its stated targets.

The basic theme, which was broadening the reach of telephony in India, has not been met. Even liberalization policies were not implemented properly. The regulator TRAI was set up after delays and confusion and even after its creation, DoT continued to fight with it in courts. It was also affected by the resource crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services.

The intention, though noble failed to achieve its goals because of improper implementation, the economic costs are still borne by the end user. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. Telecom equipment manufacturing was completely deregulated in 1991. Value-added services (including cellular services) were thrown open to private sector participation in 1992. Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DOT. An independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was announced 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 and corporatization of DoT’s operational network are two major institutional reforms, which need to be implemented. Scope of the study # To conduct this research the target population was the mobile users, Who are using GSM technology. # Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken. # To these 50 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions. 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 also conducted. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, Bharti’s history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers # Journals # Bharti Circulars Store # Bharti News Letters # Vodafone Store # Vodafone Ministore Data analysis And Interpretation Subscriber numbers in (mn) held by Vodafone and Airtel |June-05 |Sep-06 |Dec-07 |Mar-08 |Dec-08 |Mar-09 | |Airtel |3. 19 |4. 62 |5. 50 |6. 54 |10. 98 |14. 07 | |Vodafone |1. 82 |4. 19 |6. 24 |7. 26 |10. 45 |12. 99 | Source TRAI: [pic] MARKET PLAYERS IN TELE COMMUNICATION |Operator |Market share Aug”05 |Market share Aug”09 | |Bharti Airtel |19. 06 |22. 49 | |Vodafone |21. 81 |16. 96 | |Vodafonecomm |17. 03 |16. 1 | |Idea Cellular |10. 45 |8. 49 | [pic] Findings and analysis Age Group Graph [pic] As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximum business to the mobile operators. This segment constitutes the young executives and other office going people.

They are 65% of the total people who were interviewed. The next age group are the people who are 28-35 years old. They are 20% of the total. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old.

They are school and college going students and carry mobile phones to flaunt. They are 15% of the total interviewed people.

Occupation Graph As the above graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele – callers etc. who require mobile for their official purposes. The next category is the households, who are either housewife, small units which operate from their homes etc. They are 20% of the whole.

The next segment is the students. They are 15% of the whole. And 10% of the whole is categories who are the professionals. Service Provider Graph [pic] These are the total market share of mobile user or people captured by the mobile provider company. There two major company in mobile phone service sector Vodafone and Airtel who respectively hold the market share with other company as 17% and 20% of total market user segment of mobile customer.

Customer Service At Airtel Graph As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people are dissatisfied with the customer services provided by Airtel. They are the ones who have t

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