RETAILER PREFERENCE WITH REFERENCE TO BHARTI AIRTEL IN KURNOOL CITY

project report submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

BY B.LAKSHMINARAYANA REDDY Regd. No. 381398037 Under the guidance of Sri. E. POORNA CHANDRA PRASAD
MBA, M.Phill. (Ph.D)

Assistant professor

DEPARTMENT OF MANAGEMENT STUDIES

SREE VIDYANIKETHAN INSTITUTE OF MANAGEMNT

SREE SAINATH NAGAR, A. RANGAMPET 517102 (Affliliated to Sri venkateswara University, Tirupathi)

CHAPTER NAMES Chapter-1 About the Chairman Industry profile Company profile Conceptual frame work of the topic Chapter-2 Research Methodology Need of the Study Objectives of the study Period of study Scope of study Sources of data, Tools and Techniques of data analysis Limitations of the study Chapter -3 Data analysis And Interpretation Chapter 4 Findings Suggestions Bibilography Annexure

PAGE NO.

CHAPTER-1

ABOUT THE CHAIRMAN

SUNIL MITTAL

Sunil Bharti Mittal (born 23 October 1957) is an Indian telecom mogul, philanthropist and the founder, chairman and Group CEO of Bharti Enterprises. The US$8.3 billion turnover company runs India's largest GSM-based mobile phone service and world's fourth largest wireless company with over 250.04 million customers across 19 countries in Asia and Africa. He is the son of SatPal (former MP) and Lalita.In 2007,he was awarded the Padma Bhushan, India's third highest civilian honor.

Early life
Sunil Mittal was born in Ludhiana, Punjab (India). His father, Sat Paul Mittal, had been the Member of Parliament, Rajya Sabha (Indian National Congress) from Punjab, he was elected from Punjab for two terms (1976 & 1982) and nominated to the Rajya Sabha once (1988). He first joined the Wynberg Allen School in Mussoorie but later attended Scindia School at Gwalior and he graduated in 1976 from Punjab University, Chandigarh, with a Bachelor of Arts and Science for which he studied in Arya College for Boys, a local college in Ludhiana. His father died of cardiac arrest in 1992. Entrepreneurial ventures Sunil B. Mittal is a well-known Indian Telecom King. He is chairman and managing director of Bharti group. Sunil B.Mittal company runs India's largest GSM-based mobile phone service. Son of a politician, he built his Bharti group, along with two siblings, into India's largest mobile phone operator in just ten years. Sunil has always

been a pioneer. A first generation entrepreneur, he started his first business in April 1976 at the age of 18, with a capital investment of 20000 (US$320) borrowed from his father. He initially founded a number of trading concerns, and established the first company to manufacture push button telephones in India. Vodafone and SingTel both own stakes in recently renamed flagship Bharti Airtel. Group also has partnerships with Axa for insurance. Mittal His first business was to make crankshafts for local bicycle manufacturers.In 1980, he along with his brothers Rakesh, Rajan started an Import Enterprise named Bharti Overseas Trading Company.He sold his bicycle parts and yarn factories and moved to Mumbai. In 1981, he purchased importing licences from exporting companies in Punjab .He then imported thousands of Suzuki Motors's portable electric-power generators from Japan. The importing of generators was suddenly banned by the then Indian Government licences to manufacture generators in India were issued to two companies . In 1984, he started assembling push-button phones in India, which he earlier used to import from a Taiwan company, Kingtel, replacing the old fashioned, bulky rotary phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. Mittal says, "In 1983, the government imposed a ban on the import of gensets. I was out of business overnight. Everything I was doing came to a screeching halt. I was in trouble. The question then was: what should I do next? Then, opportunity came calling. While in Taiwan, I noticed the popularity of the push-button phone -- something which India hadn't seen then. We were still using those rotary dials with no speed dials or redials. I sensed my chance and embraced the telecom business. I started marketing telephones, answering/fax machines under the brand name Beetel and the company picked up really fast.". He named his first push-button phones as 'Mitbrau'. In 1992, he successfully bid for one of the four mobile phone network licences auctioned in India. One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. So, Mittal clinched a deal with the French telecom group Vivendi.

He was one of the first Indian entrepreneurs to identify the mobile telecom business as a major growth area. His plans were finally approved by the Government in 1994 and he launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. Bharti also brought down the STD/ISD cellular rates in India under brand name 'Indiaone'. IndiaOne was Indias first private national as well as the international longdistance service provider, and, thus, became a major factor in Bharti's success by providing services cheaply. In July 2006, he attracted many key executives from Reliance ADAG, NIS Sparta and created Bharti Comtel. In May 2008, it emerged that Sunil Bharti Mittal was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications company with coverage in 21 countries in Africa and the Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative nature of the talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues and broader geographic coverage. However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. In May 2009, Bharti Airtel again confirmed that it was in talks with MTN and the companies agreed to discuss the potential transaction exclusively by 31 July 2009. Bharti Airtel said in a statement "Bharti Airtel Ltd. is pleased to announce that it has renewed its effort for a significant partnership with MTN Group" Talks eventually ended without agreement, some sources stating that this was due to opposition from the South African government. In 2012, he was in talks with Wal-Mart, the US retail giant, to start a number of retail stores across India. Awards and Recognition In his personal capacity, Sunil has received several awards such as:

Transforming India Leader, NDTV Business Leader Awards .

GSMA Chairman's Award . Padma Bhushan in 2007, from the President of India. Asia Businessman of the Year, Fortune Magazine 2006. Telecom Person of the Year, Voice & Data, 2006. CEO of the year 2005, at the Frost and Sullivan Asia Pacific ICT awards 2006. Best Asian Telecom CEO, Telecom Asia Awards 2005. Best CEO, India, Institutional Investor, 2005. Business Leader Of The Year, Economic Times, 2005. Philanthropist of the Year Award 2010 at The Asian Awards INSEAD Business Leader Award 2011

Philanthropy Mittal has also been working towards educating India through the Bharti Foundation. The foundation has established over 200 schools on its 2009 list of the world's top 25 philanthropists.

INDUSTRY & COMPANY PROFILE

INDUSTRY PROFILE: The subscriber base for telecom services in India is large but skewed in favor of urban areas. Urban teledensity is 4.4 times that of rural density (Table 1.1). Further, wireless phones dominate the market in India and wire line phone segment constitutes merely 3.4 per cent of the total subscriber base. The numbers of Internet and broadband subscribers are a very small fraction of the population. However, the number of people capable of accessing the net through mobile phones is substantially higher, if wireless data subscription through mobile is an indication. The share of revenue from telecom services is higher than

manufacturing/production of telecom equipment. About a quarter of the domestic telecom production is exported and the needs of telecom equipment in India are largely met by imports. Most of the Foreign Direct Investment (FDI) has gone to the cellular mobile segment. The pace of growth of the telecom sector, particularly the telecom services has increased its significance to the overall economy in the past two decades. The share of telecommunication services (excluding postal and miscellaneous services) as per cent of the total GDP, has increased from 0.96 in 200001 to 3.78 in 200910. The importance of telecommunications sector for the Indian economy can be judged by its contribution to GDP, tax revenue, and jobs. Studies have suggested that mobile phones have a positive impact on GDP. The potential impact of wireless broadband is also estimated to be highly positive. Further, the industry generates tax revenues for the government. The 3G spectrum auction combined with the bid values for broadband wireless access licenses yielded more than Rs 100,000 crore in 2010 to the Government of India, amounting to approximately 1 per cent of the GDP.5 Employment data shows that the share of employment in the transport, storage and communication sectors went up from 3.7 per cent in 19992000 to 3.8 per cent in 200405.

The employment in BPO (Business Process Outsourcing) shows high rates of growth throughout the 2000s.The mobile telephone industry generated 3.6 million jobs both directly and indirectly. In 200809 2.2 million people were directly employed in the ITBPO industry with 1.9 million in Tier 1 cities and 0.17 million in Tier 2/3 cities. During the same period the ITBPO industry employed 7.3 million people indirectly in Tier 1 cities. Mobile phones are popular due to their personal, portable, and digital nature, enabling people to be always connected. There are increasing innovations, especially development of mobile applications. The low cost of handsets in India and the innovative budget telecom network have lowered the barrier to entry of consumers to the market. On the supply side, mobile connections are relatively cheaper than fixed line telephony. Importance of the Telecommunications Sector The interplay of three factors regulation, liberalization and technologymakes this sector an interesting study. There are continuous technological changes and evolving regulatory climate. While Indian telecommunication companies, increasingly buoyant

and confident, have started venturing outside the country and investing abroad, the telecom manufacturing in India is still to attract investment on a sustained basis. The telecommunications sector plays an increasingly important role in the Indian economy. It contributes to economic growth and the GDP and generates revenue for the government and generates jobs. In short, telecom sector has a multiplier impact on the economy. We have come a long way. However, certain challenges such as encouraging telecom manufacturing in India, spreading teledensity, and Internet services across India to bridge the digital divide are still to be fully met. Trends in the telecommunications Sector Introduction The last decade, especially since 2003, has seen tremendous growth and dynamism in the Indian telecommunications sector. A phone has been transformed from a luxury good to a necessity connecting millions of people. Earlier India was primarily concerned with increasing teledensity, i.e. telephones. Now, the idea of phones has itself changed from fixed line/wireline phones to mobile/wirless phones connecting people everywhere and anywhere (except perhaps the rural areas where unfortunately majority of Indians reside). The concept of connectivity itself has changed. The term telecommunications now includes many other services namely Internet services, radio paging services, Very Small Aperture Terminals (VSATs), Public Mobile Radio Trunk Service (PMRTS) and global mobile personal communication by satellite (GMPCS). Of all the above mentioned segments, wireless and Internet have registered the highest growth in the last few years. The number of total telephone subscribers in India increased from 28.53 million in March 2000 to 943.49 million in February 2012. Wireless subscriptions increased from 1.88 million in March 2000 to 911.57million in February 2012 and wireline subscriptions increased from 26.65 million in March 2000 to 32.33million in February 2012. As a result, India has the second largest mobile market in the world after China. India reached its Eleventh Five Year Plan (EFYP) target of 600 million subscribers in 2010 itself. The number of total Broadband subscribers in India is 13.54 million in February 2012.

International Comparisons The total number of telephone subscriptions in the world including fixed line and cellular sector grew at a Compound Annual Growth Rate (CAGR) of 17.43 per cent between 2000 and 2010.A total of more than US$3,670 billion (6 per cent of the worlds GDP) was spent on telecommunication services by governments across the world in 2008. Indias expenditure on telecommunication services in 2008 was to the tune of US$ 52 billion. This was 4.3 per cent of the countrys total GDP. Governments expenditure on telecommunications in India increased at the rate of 14 per cent during 200508.This section compares Indias position to that of the world in telephones and Internet availability and usage. India has risen through the ranks to be amongst the top telephone and Internet users in the world in absolute numbers but on a relative scale (to population) it still ranks low. Telephone Subscriptions Available international comparisons till 2010 show that India has the second largest number of telephone subscribers in the world (222 countries), accounting for 12 per cent of the worlds total telephone subscribers as shown in Figure 2.1. It is also one of the fastest growing in terms of telecom subscribers. Total telephone subscribers in India have increased at a CAGR of 32 per cent in 200010 against the world average growth rate of 17.34 per cent. However, Indias teledensity, 64, is still lower compared to the world average of 108 (Teledensity as on February 2012 is 78.1). This indicates low penetration of telephones in the rural areas. Teledensity has increased in India and around the world especially in the developing countries due to the rise of mobile phones. As of 2010, the ratio of mobile phones to fixed lines in the world ranged from 0.4:1 to 386.5:1. The average ratio of mobile phones to fixed lines in the world stood at 21.5:1 in 2010. In India the same ratio is 21.4:1in 2010 whereas the comparable numbers for China and U.S. are 2.9:1 and 1.8:1, respectively. Tariffs Mobile cellular prepaid tariffs ranged between US$1.3 and 37 per month across countries in 2008 (Figure 2.2). Average mobile cellular prepaid tariff in the world is

US$ 10.1 per month. Mobile tariffs are the lowest in countries such as Bangladesh, India, Pakistan, Sri Lanka, Nepal, Bhutan, and so on. Mobile tariffs in India are the second lowest (US$1.6 per month) in the world after Bangladesh. Countries with the highest mobile tariffs in the world include Austria, Venezuela, Greece, Portugal, Australia, Japan, Spain, Switzerland, France, and Brazil. This particularly low tariff in South Asia was an innovation (driven by intense competition, low purchasing power and strict regulatory environments) from this region called the budget telecom network model.

Growth of Telecommunication Services in India Telecom services in India can be basically divided into two major segments: (a) telephones, wireline and wireless, and (b) Internet services. In addition, it also comprises of other smaller segments including radio paging services, VSATs, PMRTS and global mobile personal communication by satellite (GMPCS). As mentioned earlier, wireless phones and Internet services have registered the highest growth in the last few years. Total Subscriptions of Telephones Growth of telephones sector can be summarized in three stages (Figure 2.5). Stage I: Before 1990. This refers to the period when the telecom sector was mainly state

owned; Stage II: 19912000. This refers to the period between the onset of reforms but the absence of wireless phones; and Stage III: post-2001. This refers to mainly the era of wireless. As can be seen in Figure 2.5, the total subscriptions of telephones witnessed a sluggish growth (CAGR of 10 per cent) in the state owned era corresponding to the period 198190. The foundation of growth of this sector was laid with the introduction of reforms in 1992 mainly in the form of increased competition due to opening up of the sector to private players. This facilitated easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. As a result, telephone subscriptions grew at a CAGR of 20 per cent during 19912000.

The introduction of wireless phone in mid-1990s coupled with increased competition has completely changed the picture. The number of mobile phone connections crossed fixed line connections in September 2004. As a result the number of telephone subscriptions grew at a CAGR of 35.3 per cent during the period 2001 11. Total telephone subscribers in India increased from 28.53 million in March 2000 to 943.49 million in February 2012. Wireless subscriptions increased from 1.88 million in March 2000 to 911.17 million in February 2012 and wireline subscriptions increased from 26.65 million in March 2000 to 32.33 million in February 2012.

Teledensity With the increase in the number of telecom subscriptions, the total teledensity has increased from 2.81 in 2000 to 78.10 on February 2012, a CAGR of 31.9 per cent. This is mainly driven by the increase in wireless density (Figure 2.8). Wireline density was higher than wireless till 2004 and then declined after peaking in 2005. During the period March 2000February 2012, wireline density increased at the CAGR of 0.19 per cent. Wireless density increased at the CAGR of 64.65 per cent during the period March 2000 to February 2012. Why Wireless? There is no recent data which can inform us directly about the expenditure of households on communication items in India. However, the 61st round of National Sample Survey (NSS) data for 200405 informs us that the monthly per capita expenditure of a household on telephone charges in rural areas was Rs 5.54 out of the total expenditure (food and non-food, except durables) of Rs 558.78.

In urban areas the corresponding figures were Rs 37.8 and Rs 1,052.36. This means that in rural areas, households spent approximately 1 per cent of their total expenditure on telephones whereas for households in urban areas this figure was 3.59 per cent.

Other Value Added Services: PMRTS and VSAT The number of PMRTS subscribers has increased from 0.019 million in March 2000 to 0.036 million in March 2008 before declining to 0.033 million in December 2011. The number of VSAT subscribers have gone up steadily from 0.017 million in 2003 to 0.15 million in 2011 (Table 2.3)

Table 2.3: Number of Subscribers for Other Value Added Services, March 2000 December 2011 (million)

Telephones The public and private players share the fixed line and the mobile segments, with the public sector dominating the wireline and private sector dominating the wireless segments. The major players of the telecom sector are currently experiencing fierce competition in both the segments. As a result, players are coming up with new tariffs and discount schemes to gain competitive advantage. Figures 2.14 show the dominance of the public sector in the delivery of fixed line services, which has changed only a little in the last decade In the wireline segment, the state-owned public sector incumbents, namely BSNL and MTNL have been the dominant players. However, private companies such as Bharti, Reliance and Tata Tele Services have also marked their presence. As a result, share of BSNL and MTNL have come down from 100 per cent in March 2000 to 81 per cent in December 2011. Further, the number of players in the private sector has increased signaling higher competition in this sector.

Figure 2.16 shows the share of service providers in wireless subscriptions in February 2012. The two public sector enterprises (PSEs), BSNL and MTNL, were allowed belated entry into the cellular segment in the beginning of the present decade. The sector is dominated by Bharti, Reliance, Vodafone, BSNL, Tata Tele Services, and Idea. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers.

The break-up between public and private providers for wireless phones using two different technologies GSM and CDMA. GSM continues to be the dominant technology for wireless phones with 87.9 per cent share. Bharti is the dominant player in GSM segment accounting for 22.35 per cent of the market in terms of market subscriptions followed by Vodafone (18.80 per cent), Idea (13.53 per cent) and Reliance (12.05 per cent) (Figure 2.17). There are as many as 14 operators using GSM technology compared to just six using CDMA. Reliance is the leading player in the CDMA market with 51.32 per cent share (Figure 2.18). Tata is the next big player in this market.

Internet Services Internet service was opened for private participation in 1998 with a view to encourage growth of Internet and increase its penetration. This has resulted in the entry of a number of private Internet service providers (ISP) in the country. However, the market is still dominated by state owned companies, BSNL and MTNL (Table 2.4). These two companies together accounted for around 66.3 per cent of the Internet subscriptions in the country in December 2011.

Revenue of the Telecom Sector The total revenue trend for the last six years is depicted in Figure 2.24A. The total revenue (including other income) of the telecom service sector stood at Rs 1,63,067 crore in 201011 as against Rs 87,794 crore in 200506 showing an increase of 89 per cent over the last six years. However, revenue from telecom services is Rs 1, 56,657 crore in 201011 as against Rs 82,687 crore in 200506. The total revenue of the public sector companies for 201011 is Rs 33,971 crore as against Rs 46,268 crore in 200506, showing major decline of 27 per cent over the last six years.41 The total revenue contribution from the private sector for 201011 was Rs 1, 29,096 crore as against Rs 41,526 crore in 200506 showing a tremendous growth of 211 per cent over the period (Figure 2.24B). The share of the public sector has decreased from 53 per cent to 21 per cent between 200506 and 201011. Share of the private sector increased from 47 per cent to 79 per cent during the same period.

Regional Variations-Telephones While India has made considerable progress in the telecom sector, there are wide disparities in the penetration of telecom facilities across ruralurban sectors and across states. Table 2.11 reports teledensity across states and regions. Increase in teledensity has been driven by wireless teledensity. Urban teledensity is approximately 4.4 times higher than rural, showing the digital divide that exists in India. There are wide variations in penetration of telecom services across states. States such as Delhi, Tamil Nadu, Kerala, Himachal Pradesh and Punjab have relatively high teledensity. However, states such as Assam, Bihar, Madhya Pradesh, UP, Jammu and Kashmir and the North-Eastern states have relatively low teledensity. The numbers show that teledensity in Delhi is 5.1 times higher than that of Assam. However, when we divide it even further, we see that Delhis teledensity is 9.7 times higher than that of rural Bihar. Himachal Pradesh has the highest total teledensity after Delhi. Assam and Bihar are the worst performing states in terms of total teledensity. Irrespective of their total teledensity, the gap between rural and urban teledensity is quite close to each other for these states Assam 5.1, Bihar 7.9, and Himachal Pradesh 6.2.

Table 2.11: Service Area-wise Teledensity, December 2011

An ASER report finds that 73.4 per cent of rural households in their sample had a mobile, households with a person knowing how to use a computer was 12.6 per cent and 13.96 per cent of villages had an Internet caf. The 61st round of NSS data (Table 2.12) shows there exist vast differences across expenditure quintiles. It is the top 40 per cent of households in both rural and urban areas who own more than one mobile.

Trends in Telecommunication Manufacturing The booming mobile telecom sector has increased demand for telecom equipment. Service providers need fixed and mobile switches, transmission equipment, fibre and copper cables, IN platforms, test equipment, etc. Infrastructure providers need fibre, duct and tower. There were 400,000 towers as of April 2011 with a sharing (tenancy) ratio of 1:5 and growth of about 20 per cent per annum. There are 15 major players in this segment. Further, application developers need backend and platform systems. Last, network equipment and handset manufacturers need equipment for this dynamic sector.

This has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. On the supply side, the telecom equipment manufacturing sector was de-licensed in 1991. As a result, manufacturing sector has witnessed a steady growth in the last few years. A large telecom manufacturing base has now been established in the country. India ranked fourth in telecom equipment manufacturing in the AsiaPacific region in 2009 and is expected to move to the third spot by 2014. India had a 5.7 per cent share of the regions total telecom equipment production revenue of $180 billion in 2009. Table 2.17 shows the top telecom equipment players in the country. Nokia is the leading telecom equipment player in India, followed by Cisco and Nokia Siemens Networks.

Licensing Framework Cellular Mobile Telephone Service India was initially divided into 23 Service Areas consisting of 19 Telecom Circle Service Areas and 4 Metro Service Areas for providing CMTS. Subsequently, Chennai Metro Service area has been merged into Tamil Nadu Service Area. The first phase of liberalization in mobile telephone service started with issue of licenses for CMTS in the four metro cities of Delhi, Mumbai, Kolkata and Chennai to eight private companies in November 1994. Subsequently, 34 licenses for 18

Territorial Telecom Circles were also issued to 14 private companies during 1995 to 1998. During this period a maximum of two licenses were granted for CMTS in each service area and these licensees were called first and second cellular licensees. These licensees were to pay fixed amount of license fees annually based on the agreed amount during the bidding process. Subsequently, they were permitted to migrate to NTP 1999 regime wherein they were required to pay license fee based on revenue share, which is effective from August 1, 1999. MTNL and BSNL were issued licenses for provision of CMTS as third operator in various parts of the country. Further, 17 fresh licenses were issued to private companies as fourth cellular operator in September/October 2001, one each in four metro cities and 13 Telecom Circles. Consequent upon announcement of the Guidelines for Unified Access (Basic & Cellular) Services licenses on November 11, 2003, some CMTS operators migrated from CMTS license to UASL.No new CMTS and basic service licenses are awarded after issuing the guidelines for UASL. Unified Access Service A Unified Access Service licensee can provide wireline as well as wireless services in a service area. Wireless services include full mobile, limited mobile and fixed wireless services. The licensee can also provide various value added services. A restriction for authentication of subscriber terminal has been placed in case of limited mobility facility based on Short Distance Charging Area Linked Numbering Scheme. However, the same facility without any restriction can be availed by adopting numbering plan for cellular mobile services and using Home Zone Tariff Schemes. Basic and cellular services licensees are permitted to migrate to UASL regime. The service providers migrating to UASL can continue to provide wireless services in already allocated/contracted spectrum. No additional spectrum will be allotted for migration to UASL. Guidelines for such migration were announced on November 11, 2003.

National Long Distance Telephony NTP 1999 envisaged the opening up of NLD service beyond the service area to the private operators. The government accordingly decided to open NLD service without any restriction on the number of operators. NLD service was opened to the private sector with effect from August 13, 2000. An NLD operator can carry inter-circle traffic in the country. The licence for NLDO is issued on non-exclusive basis, for a period of 20 years and is extendable by 10 years at one time. International Long Distance Telephony The government opened the ILD service from April 1, 2002 to private operators without any restriction on the number of operators. ILD service is basically a network carriage service, providing international connectivity to networks operated by foreign carriers. The licence is valid for 20 years from the date of license agreement. Licensing of Internet Services Internet services were launched in India in 1995 by VSNL. In November 1998, the government opened up the sector to private operators. A liberal licensing regime was put in place with a view to increase Internet penetration across the country. NTP 1999 envisaged opening up of Internet telephony whereupon government decided to permit ISPs to process and carry voice signals (Restricted Internet Telephony) with effect from April 1, 2002. In 2007, the government decided to issue a single licence to ISPs which permitted restricted Internet telephony. Department of Telecommunications Department of Telecommunications (DoT), under the Government of India, is responsible for the telecommunication industry. It is entrusted with the task of formulating policies for the development of the sector and awarding telecom licenses. The department is accountable for spectrum management. It also allocates frequency and manages radio communications in close coordination with international bodies. It is also responsible for enforcing wireless regulatory measures and monitoring the

wireless transmission of all users in the country. Telecom Commission, an exclusive policy-making body, works under the department. Telecom Commission was established in 1989 as an executive body under the Department of Communications to formulate a policy for approval of the government and to implement the Governments policy in matters concerning telecommunications. The Universal Service Support Policy (USSP) came into effect on April 1, 2002. The Indian Telegraph (Amendment) Act, 2003 was enacted in December 2003 for giving statutory status to the Universal Service Obligation Fund (USOF). The fund is to be utilized exclusively for meeting the universal service obligation (USO). The office of Administrator, USOF has been set up w.e.f. June 1, 2002 for the purpose of implementation of USSP. Applications of Technology in telecom Globally, consumers are increasingly turning to their mobile devices for a number of activities. According to KPMG Consumer and Convergence IV 2010 almost half of global consumers conducted banking transactions with their mobile devices in 2010. Nearly three times as many people shopped at a retailers website in 2010 than in 2008, a 29 per cent increase. An impressive two-thirds of consumers around the world today use cloud computing applications and services. In Japan, for example, mobile operators KDDI has launched a handset called Mamorinoa mobile phone equipped with location tracking and emergency alert features. Mamorino is a mobile phone for young children, equipped with GPS tracking and a feature that only allows the phone to place outgoing calls and texts to four pre-programmed contacts. The handset, developed by Kyocera for Japanese mobile operator KDDI, has a simple design with an LCD screen, just 3 one-touch keys, a call-end key, front jog wheel and an action key. The location tracking feature allows parents to check the childs location at any time, and it also has a location alert feature that allows the child to easily inform the parents of his/her own location. Furthermore, the handset is equipped with an emergency alert that projects a loud alarm if the child pulls at it. Also, in the event of

an emergency, a special service allows the emergency alarm to automatically notify local security service personnel.In India mobile is still predominantly used for voice calls, but value added services are on the surge. Table 5.4 highlights that from social networking to email, from mobile banking to Bollywood ringtones, it is all happening on the mobile device. With the advent of next generation technologies these applications will pick up in the worlds largest telecom market. Along with demand, supply-side factors also need to be taken care of to meet the demand.

COMPANY PROFILE Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.The businesses at Bharti Airtel have been structured into three individualStrategic business units (SBUs) 1) Mobile services 2) Broadband and telephone services (B&T) 3) Enterprise services The Mobile services group provides GSM mobile services across India in 23 Telecom circles, while B&T business group provides broadband & telephone Services in 94 cities. The Enterprise Services group has two sub-units carriers (long distance services) and services top corporate. All these services are provided under the Airtel brand. Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. A consortium of giants in the tele communication business. In its six years of pursuit of greater customer satisfaction, Airtel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 246million customers. Cellular telephony was introduced in India during the early 1990s. At that Time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only post-paid services. Initially, the cellular services market registered limited growth. Moreover, these services were mostly restricted to the metros. Other factors such as lack of awareness among people, lack of infrastructural facilities, low standard of living, and government regulations were also responsible for the slow growth of cellular phone services in India.

Although the cellular services market in India grew during the late 1990s (As the number of players increased and tariffs and handset prices came down significantly) the growth was rather marginal. This was because the cellular service providers offered only post-paid cellular services, which were still perceived to be very costly as compared to landline communications. Following this realization, the major cellular service providers in India, launched pre-paid cellular services in the late 1990s. The main purpose of these services was to target customers from all sections of society (unlike Post-paid services, which were targeted only at the premium segment). The Airtel Logo The Airtel logo is an interpretation of the a in Airtel. The curved shape and the gentle highlights on the red color make it warm and inviting, almost as if it were a living object. The logo represents a dynamic force of unparalleled energy that brings the company and their customers closer. Bhartis Vision By 2015 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of Our customers and how we want them to feel. We deliver what we promise And go out of our way to delight the customer with a little bit more. We will meet their needs based on our deep understanding of their ambitions, wherever they are. Bhartis Mission To be globally admired for telecom services that delight customers. We will meet global standards for telecom services that delight customers Through: Customer Service Focus Empowered Employees Cost Efficiency Unified Messaging Solutions

Innovative products and services Error- free service delivery

Network of Airtel Cellular Service Airtel Completes Its 23 Circle All India Footprint Airtel now connects India From the Indus to the Indian Ocean and from Sabarmati to the Brahmaputra on a network of more than 10,000 base stations with cumulative investments of more than Rs. 16,000 crores. Internet infrastructure Our Internet backbone involves state of the art high-end routers and switches as may deployed on the best networks across the world to offer you reliable service of unmatched quality. Three years back we had established satellite based gateway for internet access. This was the first gateway by a private operator. Now we have established our fiber gateway on Network i2i, first private submarine cable owned by us and SingTel. Fixed line infrastructure Our high quality fiber-based, fixed line networks in Delhi, Haryana, Tamil Nadu, Karnataka, Madhya Pradesh and Chhattisgarh, intensively covers the most prominent commercial and business districts in the country. We provide the power of last mile fixed line network to bring end-to-end voice and data solutions. Technology In no other service or business technology is such a major factor. Sales and marketing are futile without a sound technological base. Hence we analyze AirTel on the basis of this parameter. Technological facets in cellular services are explained and the level of expertise of both players stated. AIRTEL BROADBAND Bharti Televentures is the fixed line operator business of Airtel. In the recent branding exercise, all the services have been offered under the Airtel brand. Data is the next

driver for growth. This is clear to the operators who have belatedly realized the implications for having a pie in all the segments of telecommunications. Hence Bharti ventured in the broadband market. Airtel Broadband is powered by DSL technology DSL provides blazing-fast, secure Internet access and can be delivered to both homes and to businesses. Delivered right through a regular telephone line, data rates can vary from 128Kb to 8Mb per second depending on the type and cost of the service. Instant Access Digital Subscriber Line (DSL) technology provides instant Internet and network access at speeds up to 50 times faster than a 28.8Kbps modem on a standard analogue phone line. There are no dial-up delays, no busy signals. What used to take minutes or hours to download, will now take just seconds or minutes. Experience Multimedia With DSL Internet Service you can download graphics-heavy files, large documents, software, photos, email attachments, and more instantly. It's perfect for real-time interactive multimedia, broadcast quality video, distance learning, and video-ondemand. And because DSL Internet Service sends data and voice over the same line, you can talk on the phone while you are online. Wireless Internet Wireless Internet includes: 1. Data Card 2. Usb Modem Data Card Airtel Data Card is the superior PC Data Card solution which delivers wireless internet capabilities to laptops and notebooks, by providing EDGE and GPRS technologies in a single PC Card package.

On an EDGE network, Airtel Data Card enables connection to the Internet using EGPRS. In areas where EDGE services are not available, the Airtel Data Card still enables reliable and secure data connections over GPRS. Features Quad-band radio card suitable for use on EGRPS/GPRS/GSM networks worldwide PTCRB compliant. Compatible with most notebooks providing a Type II PC-Card slot and utilizing Microsoft Windows Operating Systems. Supports IPSec client software for end-to-end secure corporate data exchange and synchronization over VP NDIS compatible

USB Modem Airtel USB Modem is the superior PC solution delivering wireless internet capability to laptops and notebooks by providing EDGE and GPRS technologies in a single PC Card Package. On an EDGE network. Airtel USB Modem enables connection to the Internet using EGPRS. In areas where EDGE services are not available, the Airtel USB Modem enables reliable secure data connections over GPRS.Anytime- Anywhere Connectivity! Features Suitable for use on EDGE/GPRS/GSM networks. EDGE Class 12, GPRS Class 10 External Antennae ETSIAT Command Interface Compatible with Windows 2000, XP Data Interface: USB 2.0 Data, Voice, SMS Phonebook

ORGANIZATION STRUCTURE Partners The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company.

The companys mobile network equipment partners include Sony and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech and Mphasis. PROMOTIONAL 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). 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. 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. AWARDS Bharti Airtel draws top honors at the mis Asia It excellence awards 2006 Bharti Airtel among the top 10 best performing Companies in the world according to Business week it 100 lists. Sunil Bharti Mittal is the CEO of the year at the frost and Sullivan Asia pacific awards 2006 and Bharti Airtel bags wireless service Provider of the year and competitive service Provider of the year. Bharti tele-ventures is the best Indian Carrier at the telecom Asia awards 2006 Bharti Airtel has received the prestigious Business world-FICCI-SEDF Corporate Social Responsibility Award 2009-2010. Bharti Airtel has been awarded the NDTV Profit Business Leadership Award 2009 in the Telecom Sector

REAEARCH METHODOLOGY Need for the study: Advertisements are an important source of information for the public, regardless whether consumers like advertisement or not. Advertisement has become indispensible in our economies. Advertising research plays an important role in determining the success of an ad in any country or region. The ability to identify which elements and/or moments of an ad contribute to its success is how economies of scale are maximized. Once one knows what works in an ad, that idea or ideas can be imported by any other market. Studies were limited in this area in India and in telecom market it is hardly any. Many studies were conducted to understand the importance of advertising but its effect on sales is not properly measured in telecom industry and so the study has been taken up. Objectives of the study: To study the profile of telecom customer in Tirupathi To study the effectiveness of advertisement by telecom companies To study the effectiveness of advertisement on sales of telecom products

Scope of the study: A study has been conducted with 149 telecom customers in Tirupathi for 8 weeks. DATA SOURCES: Primary data: Primary data is collected from the customers of Tirupathi through a well designed structured questionnaire Secondary data: Secondary data is collected from different books, magazines, some websites and News papers. Sampling unit: All the telecom customers in Tirupathi Sample size: 149 telecom customers are taken up for the study.

Statistical tools applied: Simple Percentages, Graphical Representation and Chi square techniques are used to present the data and test the hypothesis. Limitations: 1. The study was restricted to Tirupathi area only 2. The duration of the project was limited, so I could not meet more customers. Hypothesis: 1. Educational qualifications influences number of telecom services being used 2. Occupation influences number of telecom services being used 3. Monthly income influences number of telecom services being used Hypothesis Findings: 1. Education Qualification does not influences number of service provider being used, which means customer may use one or many service providers, irrespective of their qualification. 2. Similarly Occupation also does not influence number of service provider being used, it implies that customer may use one or many service providers, irrespective of their qualification. 3. For using one or more service in telecom, monthly income does not influence.

CHAPTER-II

RESEARCH & METHODOLOGY Data collection:

Our study used both primary & secondary data. Secondary Data I have collected all the details from the FSEs and the team leader of the PK Agency distributor. Sources of Data 1. PK Agency team leaders personal data. 2. Territory managers personal report behalf of exploration of business. Primary Data Primary data has been collected from the new retail outlets, existing outlets and new Airtel subscribers.

Methodology
1. Meeting all the retailers (Those who are interested to sale Airtel products). 2. Explaining about the business and how to incur profit and giving them competitors feedback through one to one interaction. 3. Creating interest to become a new Airtel outlet by showing leaflets of different features. 4. Finding out the retailers through schedule method. 5. Convincing & creating interest through pushing strategy. 6. All the procedures were recorded through proper questionnaires.

NEED OF THE STUDY

Airtel is an old & fastest growing company & leading in the communication market providing ever best possible service to the customers. New & advance facilities & plans are being introduced day by day & those are only to satisfy customers taking care of customers need.

OBJECTIVES OF THE STUDY

1. To understand the awareness of Airtel products among retailers in the market. 2. To create interest as well as find out the potential new retail outlets 3. To analyze the retailers perception towards Airtel 4. To know the satisfaction level of Retailers towards Airtel products and services.

5. To maximize retail outlets through traditional channel that will increase the sales in future. 6. To create more numbers of Airtel subscribers.

SCOPE OF THE STUDY

By this study satisfaction as well as attitude towards the Airtel has been found out, which can be used in strategy formulation in Cuttack, Orissa. 1. Lacking & factor for dissatisfaction has been studied from Retailer point of view which can be taken care & improved. 2. Getting an opportunity to convince & interact with the Retailers. 3. Creating awareness & finding out potential Retailers for Airtel.

LIMITATIONS OF THE STUDY

At most attention was taken to eliminate any kind of biasness & mis-interpretation in the study to get optimum result. Even though the following limitations could have certain degree of impact on the findings. 1. The study was confined to Cuttack, PK agency only which may not represent the real picture of the entire Cuttack market. 2. Many retailers were not interested in Airtel because of steep competition in the locality among retailers. Data collected about satisfaction & awareness level may not represent the real picture as the sample size covered only 423 retailers. Type of Research: A descriptive research has been followed for the study Sampling technique: A cluster sampling has been used for the study. Sample Size: 1. Survey for Retail outlets:100

SCHEDULE DESIGN
There were different question patterns were designed for individual tasks and informal interviewswere also conducted in case of new scheme promotion. Questions those have been filled by us according to the response of the respondents about the different questions & in the mean while their 5 reaction towards the different perceptions towards different communication companies have been observed.

There are some general questions to make them comfortable to answer. The parameters that are measured 1. Retailer reliability 2. Customer awareness 3. Customer satisfaction 4. Factor Preference Questions were designed for: 1. Opening up New Retail Outlets 2. New Airtel Subscribers Informal Interviews were followed in case of 1. Special scheme promotion 2. Selling of iBox and PCO.

DATA ANALASYS AND INTERPRETATION

Table No.1: Table showing the RETAILERS SELLING RECHARGE CARDS OF ALL NETWORKS ROW LABELS YES NO GRAND TOTAL NO. OF RESPONDENTS 97 03 100 PERCENTAGE 97.00 03.00 100.00

PERCENTAGE(%)
3%

YES NO

97%

INFERENCE:The above table depicts that 97% of respondents are selling recharge cards of all networks and the remaining 3% of respondents are not selling recharge cards of all networks.

Table No.2: Table showing the MOST SELLING TELECOM BRANDS BY RETAILER.

BRANDS AIRTEL BSNL IDEA VODAFONE GRAND TOTAL

NO.OF RESPONDENTS 88 0 3 6 97

PERCENTAGE 90.72 00.00 03.10 06.18 100.00

PERCENTAGE(%)
100 90 80 70 60 50 40 30 20 10 0 0 AIRTEL BSNL IDEA VODAFONE 3.1 6.18 PERCENTAGE(%) 90.72

INFERENCE:From the above table, it inferred that 90.72% of respondents are mostly selling the recharge cards of AIRTEL network, 6.18% are VODAFONE, 3.1% are IDEA, and the BSNL network recharge cards selling at the level of 0% by the retailers.

Table No.3: Table showing the RETAILER REVENUE THROUGH SELLING AIRTEL PRODUCTS PER DAY

ROW LABELS <1000 1000-3000 3000-5000 >5000 GRAND TOTAL

NO.OF RESPONDENTS 38 37 16 09 100

PERCENTAGE 38.00 37.00 16.00 09.00 100.00

PERCENTAGE(%)
40 35 30 25 20 16 15 10 5 0 <1000 1000-3000 3000-5000 >5000 9 PERCENTAGE 38 37

INFERENCE:The above table shows that 38% of respondents are getting the revenue lessthan Rs.1000, 37% are getting Rs.1000-3000, 16% are getting Rs.3000-5000, and 09% of respondents are getting revenue greaterthan Rs.5000, and 7% are not available through airtel.

Table No.4: Table showing the SATISFACTION LEVEL ON THE DISCOUNT OFFERED BY AIRTEL ON BULK PURCHASES

ROW LABELS HIGHLY SATISFIED SATISFIED AVERAGE

NO.OF RESPONDENTS PERCENTAGE 06 54 21 06.00 54.00 21.00 11.00 05.00 03.00 100.00

DISSATISFIED 11 HIGHLY DISSATISFIED 05 NA GRAND TOTAL 03 100

percentage(%)
60 50 40 30 21 20 11 10 0
Highly Satisfactory Satisfactory Average Dissatisfactory Highly Dissatisfactory NA

54

percentage(

INFERENCE:The above table depicts the information is that 06% of respondents are Highly Satisfied about the discount offered by AIRTEL, 54% are Satisfied, 21% are Average, 11% are Dissatisfied, and 05% are Highly Dissatisfied, and 03% of respondents are Undecided about the AIRTEL gives the offers to retailers.

Table No.5: Table showing WHETHER RETAILERS WOULD LIKE TO DO SIM ACTIVSTIONS.

ROW LABELS YES NO GRAND TOTAL

NO. OF RESPONDENTS 88 12 100

PERCENTAGE 88.00 12.00 100.00

PERCENTAGE(%)
NO 12%

YES 88%

INFERENCE:From the above table, it is inferred that 88% of respondents are like to do sim activations and 12% are dont like to do sim activations of any network.

Table No.6: Table showing the MOST SIM ACTIVATING BRANDS BY THE RETAILER.

ROW LABELS AIRTEL VODAFONE IDEA GRAND TOTAL

NO. OF RESPONDENTS PERCENTAGE 73 83.00 12 03 88 14.00 03.00 100.00

PERCENTAGE(%)
90 80 70 60 50 40 30 20 10 0 AIRTELVODAFONE IDEA 14 3 PERCENTAGE(%) 83

INFERENCE:The above table depicts the information is that 83% of respondents are mostly doing activations of Airtel network sim cards, 03% are Idea, 14% are Vodafone.

Table No.7: Table showing the SATISFACTION LEVEL ON THE HIGH VALUE FRC IN AIRTEL SIM ACTIVATIONS

ROW LABELS HIGHLY SATISFIES SATISFIES AVERAGE DISSATISFIES GRAND TOTAL

NO. OF RESPONDENTS 31 30 16 11 88

PERCENTAGE 35.22 34.10 18.18 12.50 100.00

PERCENTAGE(%)
40 35.22 35 30 25 20 15 10 5 0 Highly Satisfies Satisfies Average Dissatisfies 18.18 12.5 percentage(%) 34.1

INFERENCE:The above table shows that % of respondents opinion is Average with High Value FRC of Airtel, 35.22% are highly Satisfies, 34.10% are Satisfies, 18.18% are average;12.5% are Dissatisfies.

Table No.8: Table showing COMPANIES GIVES THAT MORE OFFERS IN SIM ACTIVATIONS FOR RETAILERS.

ROW LABELS AIRTEL VODAFONE IDEA TATA DOCOMO GRAND TOTAL

NO. OF RESPONDENTS 66 18 03 01 88

PERCENTAGE 75.00 20.45 03.40 01.15 100.00

PERCENTAGE(%)
80 70 60 50 40 30 20 10 0 AIRTEL VODAFONE IDEA TATA DOCOMO PERCENTAGE(%) 3.4 1.15 20.45 75

INFERENCE:From the above table, it is inferred that 75% of respondents opinion is Airtel gives the more offers in Activations, 20.45% are Vodafone, 3.4% are idea, 1.15% are Tata Docomo.

Table No.9: Table showing the NO. OF AIRTEL SIM ACTIVATIONS PER MONTH BY THE RETAILER.

ROW LABELS <100 101-200 201-300 >300 GRAND TOTAL

NO. OF RESPONDENTS 74 06 00 08 88

PERCENTAGE 84.10 06.81 00.00 09.09 100.00

PERCENTAGE(%)
90 80 70 60 50 40 30 20 10 0 <100 101-200 >300 6.81 9.09 PERCENTAGE(%) 84.1

INFERENCE:The above table&chart furnished the information is 84% of respondents are doing the less than 100 Airtel SIM card Activations, 6.81% are doing 101-200, and 9.09% are doing 300 Activations per month.

Table No.10: Table showing WHETHER RETAILERS ARE SATISFIED WITH EXISTING ACTIVATION SCHEME OF AIRTEL.

ROW LABELS YES NO GRAND TOTAL

NO. OF RESPONDENTS 55 33 88

PERCENTAGE 62.50 37.50 100.00

PERCENTAGE(%)

NO 38%

YES 62%

INFERENCE:With the above table and acquired information I conclude that 62.50% respondents are Satisfies with present Activations scheme of Airtel, 37.50% are not Satisfied.

Table No.11: Table showing NETWORKS THAT GIVES MAXIMUM MARGIN TO THE RETAILERS.

ROW LABELS AIRTEL BSNL VODAFONE IDEA TATA DOCOMO UNINOR GRAND TOTAL

NO. OF RESPONDENTS 49 03 30 06 00 00 88

PERCENTAGE 55.70 03.40 34.09 06.81 00.00 00.00 100.00

PERCENTAGE(%)
60 50 40 30 20 10 0 AIRTEL BSNL VODAFONE IDEA TATA DOCOMO PERCENTAGE(%) UNINOR 3.4 6.81 0 0 34.09 55.7

INFERENCE:The above table depicts the information is that most respondents i.e 55.70% of respondents opinion is Airtel gives the maximum margin, 3.4% are BSNL, 34.09% are Vodafone, 6.81% are Idea, 0% are Tata docomo, 0% are Uninor gives the maximum margin.

Table No.12: Table showing that MOST PREFFERED TELECOM SERVICE BY RETAILERS.

ROW LABELS AIRTEL BSNL VODAFONE IDEA TATA DOCOMO UNINOR GRAND TOTAL

NO.OF RESPONDENTS 56 02 33 08 01 00 100

PERCENTAGE 56.00 02.00 33.00 08.00 01.00 00.00 100.00

PERCENTAGE(%)
60 50 40 30 20 10 0 8 2 1 0 33 56

PERCENTAGE(%)

INFERENCE:The above table depicts the information is that most respondents i.e 56% of respondents are preferred Airtel, 02% are Bsnl 33% are Vodafone, 8% are Idea,01% are Tata Docomo, 0% are preferred Uninor.

Table No.13: Table showing WHETHER RETAILERS GET PROPER RESPONSE TO THEIR QUERIES FROM AIRTEL SERVICE TEAM.

ROW LABELS YES NO GRAND TOTAL

NO. OF RESPONDENTS 74 26 100

PERCENTAGE 74.00 26.00 100.00

PERCENTAGE(%)
NO 26%

YES 74%

INFERENCE:The above table&chart reveals the information is that most of the respondents i.e 74% of the respondents feel that Airtel service can give the proper response of the queries, and 26% are not satisfies.

Table No.14: Table showing WHETHER COMPANY EXECUTIVES VISIT REGULARLY TO THE SHOPS TO CONVEY SCHEMES

ROW LABELS YES NO GRAND TOTAL

NO. OF RESPONDENTS 67 33 100

PERCENTAGE 67.00 33.00 100.00

PERCENTAGE(%)

NO 33%

YES 67%

INFERENCE:The above table depicts the information is that 67% of respondents satisfies with the company executives visiting the shops to convey schemes, and the remaining 33% of respondents are not satisfies.

Table No.15: Table showing SATISFACTION LEVEL ON THE SCHEMES DELIVERED TO THE RETAILERS

ROW LABELS HIGHLY SATISFIED SATISFIED AVERAGE DISSATISFIED HIGHLY DISSATISFIED GRAND TOTAL

NO. OF RESPONDENTS 04 56 28 10 02 100

PERCENTAGE 04.00 56.00 28.00 10.00 02.00 100.00

PERCENTAGE(%)
60 50 40 30 20 10 0 4 28 10 2 56

PERCENTAGE(%)

INFERENCE:The above table provided the information is that 56% are Satisfied with the schemes delivered to the retailers, 28% are Average, 04% are Highly Satisfies, 10% are Dissatisfies,2% are Highly Dissatisfies with the delivered of schemes.

Table No.16: Table showing SATISFACTION LEVEL ON THE CUSTOMER SCHEMES OFFERED BY AIRTEL

ROW LABELS HIGHLY SATISFIES SATISFIES AVERAGE DISSATISFIES HIGHLY DISSATISFIES N/A GRAND TOTAL

NO. OF RESPONDENTS 01 52 18 20 01 08 100

PERCENTAGE 01.00 52.00 18.00 20.00 01.00 08.00 100.00

PERCENTAGE(%)
60 50 40 30 20 10 0 HIGHLY SATISFIES SATISFIES AVERAGE DISSATISFIES HIGHLY DISSATISFIES NA 1 18 20 8 1 52

PERCENTAGE(%)

INFERENCE:The above table gives the information is that 52% are Satisfies with customer schemes offered by Airtel, 20% are Dissatisfies, 18% are Average 8% are not interested 1% are Highly dissatisfies, 1% are highly satisfies.

Table no.17: Table showing that RETAILERS FACING THE PROBLEMS WITH THE NETWORK(SIGNALS) OF AIRTEL

ROW LABELS ALWAYS SOMETIMES RARELY NEVER GRAND TOTAL

NO. OF RESPONDENTS 00 03 03 94 100

PERCENTAGE 00.00 03.00 03.00 94.00 100.00

PERCENTAGE(%)
100 90 80 70 60 50 40 30 20 10 0 ALWAYS SOMETIMES PERCENTAGE(%) RARELY NEVER 0 3 3 94

INFERENCE:The above table&chart provided the information is that 94% are never faced the network problems, 3% are rarely faced, 3% are Sometimes faced and no one will be faced always the network problem.

Table No.18: Table showing the OVERALL LEVEL OF SATISFACTION OF THE RETAILERS ON SERVICE PROVIDED BY AIRTEL.

ROW LABELS HIGHLY SATISFIES SATISFIES AVERAGE DISSATISFIES HIGHLY DISSATISFIES GRAND TOTAL

NO. OF RESPONDENTS 33 45 09 13 00 100

PERCENTAGE 33.00 45.00 09.00 13.00 00.00 100.00

PERCENTAGE(%)
50 45 40 35 30 25 20 15 10 5 0 45 33

13 9 0 HIGHLY SATISFIES SATISFIES AVERAGE DISSATISFIES HIGHLY DISSATISFIES

PERCENTAGE(%)

INFERENCE:The above table reveales that information is that 45% are Satisfies with the overall service provided by Airtel, , 33% are Highly satisfies, 13% are dissatisfies, 9% are Average, and 0% are Highly Dissatisfies.

FINDINGS & SUGGESTIONS

FINDINGS:
97% of respondents are selling recharge cards of all networks and the remaining 3% of respondents are not selling recharge cards of all networks. 94% of respondents are mostly selling the recharge cards of AIRTEL network, 2% are VODAFONE, 1% are IDEA, and the BSNL network recharge cards selling at the level of 0% by the retailers, and 3% of respondents are not selling the any company of recharge cards. 64% of respondents are getting the revenue lessthan Rs.1000, 24% are getting Rs.1000-3000, 7% are getting Rs.3000-5000, and 5% of respondents are getting revenue greaterthan Rs.5000 through AIRTEL. 2% of respondents are Highly Satisfied about the discount offered by AIRTEL, 80% are Satisfied, 10% are Average, 5% are Dissatisfied, and 1% are Highly Dissatisfied, and 2% of respondents are Undecided about the AIRTEL gives the offers to retailers. 57% of respondents are like to do sim activations and 43% are dont like to do sim activations of any network. 35% of respondents are mostly doing activations of Airtel network sim cards, 12% are Idea, 6% are Vodafone, 2% are Tata- Docomo, 2% are Uninor, 0% are Bsnl, and 43% are not doing activations. 59.6% of respondents opinion is Average with High Value FRC of Airtel, 29.8% are Satisfies, 8.8% are Highly Satisfies, 1.8% are Dissatisfies, 0% are feel Highly Dissatisfies. 61.4% of respondents opinion is Airtel gives the more offers in Activations, 17.5% are Idea, 10.5% are Vodafone, 5.3% are Tata Docomo, 5.3% are Uninor, and there is no offers in Bsnl for the retailers. 80.7% of respondents are doing the less than 100 Airtel SIM card Activations, 15.8% are doing 101-200, 3.5% are doing 201-300, and no one cannot do 300 Activations per month. 81% respondents are Satisfies with present Activations scheme of Airtel, 19% are not Satisfied. 59.65% of respondents opinion is Airtel gives the maximum margin, 19.3% are Idea, 12.28% are Vodafone, 5.26% are Tata Docomo, 3.51% are Uninor, 0% are Bsnl gives the maximum margin. 42% of respondents are preferred Airtel, 26% are Vodafone, 12% are Idea, 10% are Bsnl, 5% are Tata Docomo, 5% are preferred Uninor. 89% of the respondents feel that Airtel service can give the proper response of the queries, and 11% are not satisfies. 79% of respondents satisfies with the company executives visiting the shops to convey schemes, and the remaining 21% of respondents are not satisfies. 51% are Satisfies with the schemes delivered to the retailers, 25% are Average, 11% are Highly Satisfies, 10% are Dissatisfies,3% are Highly Dissatisfies with the delivered of schemes.

 60% are Satisfies with customer schemes offered by Airtel, 15% are Average, 15% are Highly satisfies, 7% are Dissatisfies, 3% of respondents are Highly Dis-satisfies with the customer schemes offered by Airtel. 94% are never faced the network problems, 3% are rarely faced, 3% are Sometimes faced and no one will be faced always the network problem. 88% are Satisfies with the overall service provided by Airtel, , 6% are Average, 3% are Highly Satisfies, 2% are Highly Dissatisfies 1% are Dissatisfies.

SUGGESTIONS:
There are following suggestions for marketing strategies for Airtel1. Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration, allowing it to implement and deliver new services rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships. 2. Improved cross-selling and targeting and a more seamless, efficient total customer experience through end-to-end integration of customer-facing processes. 3. Optimization of business processes and infrastructure, through flexible, standardized integration framework, is needed. 4. Outsourcing of technology will provide Bharti Airtel to focus resources on growing the business. Flexible pricing model will enable Bharti Airtel to avoid major increases in capital expenditures

ANNEXURE

RETAILERS PREFFERENCE WITH REFFERENCE TO BHARTI AIRTEL, KURNOOL CITY

QUESTIONNAIRE

1. Name of the shop: 2.Do you sell the recharge cards of all networks? a). Yes [] b). No []

3. Which network recharge cards mostly selling in your shop? a). Airtel c). Idea [] [] b). Bsnl []

d). Vodafone []

e).Others [] 4. How much you have to get amount by selling airtel recharge cards&easy recharges per day? a). <1000 [] b). 1000-3000 [] d). >5000 []

c). 3000-5000 []

5. How do you rate the discount offered by airtel on bulk purchases? a). Highly satisfactory [] c). Average [] b). Satisfactory []

d). Dissatisfactory []

e). Highly dissatisfactory [] 6. You would like to do sim activations or not? a). Yes [] b). No []

7. Which company do you mostly activate? a). Airtel [] b). Bsnl [] d). Idea []

c). Vodafone [] e). Others []

8. How do you rate the high value FRC in activations? a). Highly satisfies c). Average [] [] b). Satisfies []

d). Dissatisfies []

e). Highly dissatisfies[] 9.In your observation which company gives the more offers in activations? a). Airtel c). Idea e). Others [] [] [] b). Vodafone d).Bsnl [] []

10. How many activations you had done per month? a). <100 [] b). 101-200 [] d). >300 []

c). 201-300[]

11.Are you satisfy existing schemes of airtel? a). Yes [] b). No []

12. Which operators provide you maximum margin? a). Airtel [] b). Bsnl []

c). Vodafone []

d).Others []

13.Which brand of telecom service you most prefer? a). Airtel [] b). Bsnl []

c). Vodafone []

d). Others []

14. Does the airtel service can give the proper response to your queries? a). Yes [] b). No []

15.Do the company executives visit your shop regularly to convey schemes? a). Yes [] b). No []

16. How do you rate the schemes delivered to the retailers? a). Highly satisfies c). Average [] [] b). Satisfies []

d). Dissatisfies []

e). Highly dissatisfies[] 17.How do you rate the customer schemes offered by airtel? a). Highly satisfies c). Average [] [] b). Satisfies []

d). Dissatisfies []

e). Highly dissatisfies[] 18.Have you ever faced problems ralated to the Network issues? a). Always [] c). Rrely [] b). Sometimes [] c). Never []

19.Rate your overall satisfaction with the services offered by airtel? a). Highly satisfies c). Average [] [] b). Satisfies []

d). Dissatisfies []

e). Highly dissatisfies[]

20.If you would like to give any comments or suggestions on airtel ----------- -------- - - - -------------------------------------------------------------------------------------------------------------------------------------------------