LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

CONSUMER BEHAVIOR

AND

MARKET SHARE OF BHATI AIRTEL

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

Submitted by:

ANUJ NIGAM

University Reg. No.-10809766

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

2008-10
 PREFACE

This project work on “overall marketing activities of “AIRTEL BHARTI” has been done by me

In fulfilment of Masters of Business Administration course being Submitted for examination as

one of our subjects.

The theories relating to Consumer behavior,Advertising, Marketing, Sales Promotion

& Sales Management widens one’s thinking, perception, concepts,Outlooks, etc. But unless

these theories are not implemented intoPractice, one cannot get the real picture of these

theories.This projects Works has been done under the kind permission of

AIRTEL BHARTI products.

I have done my training in Kanpur under the guidance of Mr.Kapil Agarwal , AIRTEL BHARTI

I hope that the report will give a true picture of my practical activities done by me within our
jurisdiction.

ACKNOWLEDGEMENT
We take this opportunity to express our profound gratitude to “AIRTEL BHARTI.” for taking
for as a dissertation report extending our full support and co-operation towards the completion
of this project.

We express our sincere gratitude to MR. Kapil agarwal for his motivation and guidance.
He gave us Opportunity to do Dessertation project in the organization.

We extend our deep sense of gratitude to Mr. Gurpreet Kaur for their cooperation and sharing
valuable ideas, and I am highly grateful of them for their help and support in each and every way
for my project.

Last but not the least I’m grateful to my co-trainees, friends and family members helping me
throughout the job.

ANUJ NIGAM

CHAPTER- 1
INTRODUCTION TO THE STUDY

1.1 INTRODUCTION

1.2 OBJECTIVE

1.3 IMPORTANCE

1.1 INTRODUCTION
“Marketing is the selling of concept and ideas”

Planning in modern marketing Concept starts with the consumers is the first step of together to
determination what the consumers wants, how best to produce and sell product, which can satisfy
their wants and also how to motivate the purchase of the product.

Marketing is the process of planning and executing the conception pricing, promotion and
distribution of ideas, goods and services to create exchanges (with customers) that satisfy
individual and organizational objectives.

Satisfying customers needs (creating utility) through the exchange process.

Create a Marketing Mix (4P’s):-

• Product

• Price

• Place (Distribution)

• Promotion

The focus of this survey is to take s sample to depict the wider picture of present position of
major players in the field of telecom in India.
 1.2 OBJECTIVE

1) To know about the stock position of AIRTEL BHARTI and its competitors at different
Outlets .

2) To estimate the market share of, AIRTEL BHARTI

3) To develop and understanding of coverage of glow sign, dealer board, wall painting and
pet stand.

4) To study the point – of –sale promotional activities at various retailer outlets.

1) To know the consumer behavior of customers related, AIRTEL

BHARTI and its competitor in crates.

2) To study the percentage share of AIRTEL BHARTI

3) To understand the level of consumer awareness of AIRTEL

BHARTI

5) To understand the effect of advertisement of AIRTEL BHARTI and its competitors-

consumers view point.

6) To analyze the strength and weakness of the AIRTEL BHARTI in terms of telecom
marketing.

7) .To understand the distribution channels adopted by the AIRTEL BHARTI in order to
defend the market.
 1.3 IMPORTANCE

The training in the organization is very important for a student who is undergoing with such
course. This course is not the answer for all the problems, which arises in the practical field.
There is no certain formula for any particular problem, but the aim of this study is to develop the
ability of decision-making. Right decision at the right time itself helps an organization to run
smoothly.

The training in an organization gives an idea how decisions are taken when any problem comes
to an Executive. So the way to problem solving, right decisions making and knowledge of
different type of making activities give much importance to the study. Though in 2 months it was
not possible to understand it in depth but an overall idea can develop.
 CHAPTER-2

INTRODUCTION OF TELECOM SECTOR

In telecom sector,there are two networks in which whole industry runs:

1- GSM 2- CDMA

GSM history

More than 700 GSM mobile networks have been established in Europe, the North America,
South America, Iceland, Asia, Africa and Australasia up untill now, woven together by
international roaming agreements and a common bond called the "Memorandum of
Understanding" (MoU) which defines the GSM standards and the different phases of its world-
wide implementation.

1982 - The Beginning

• Nordic Telecom and Netherlands PTT propose to CEPT (Conference of European Post and
Telecommunications) the development of a new digital cellular standard that would cope with the ever a
burgeoning demands on European mobile networks.
• The European Commission (EC) issues a directive which requires member states to reserve frequencies in the
 900 MHz band for GSM to allow for roaming.

1986

• Main GSM radio transmission techniques are chosen

1987

• September - 13 operators and administrators from 12 areas in the CEPT GSM advisory group sign the charter
GSM (Groupe Spéciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991.
• The original French name was later changed to Global system for mobile communication but the original GSM
acronym stuck.
• GSM spec drafted.

1989

• The European Telecommunications Standards Institute defined GSM as the internationally accepted digital
cellular telephony standard
• GSM becomes an ETSI technical committee

1990

• Phase 1 GSM 900 specifications are frozen

• DCS adaptation starts
• Validation systems implemented
• First GSM World congress in Rome with 650 Participants
1992

• January - First GSM network operator is Oy Radiolinja Ab in Finland

• December 1992 - 13 networks on air in 7 areas
• GSM World Congress Berlin - 630 Participants

1993

• GSM demonstrated for the first time in Africa at Telkom '93 in Cape Town
• Roaming agreements between several operators established
• December 1993 - 32 networks on air in 18 areas
• GSM World Congress Lisbon with 760 Participants
• Telkom '93 held in Cape Town. First GSM systems shown.

1994

• First GSM networks in Africa launched in south Africa

• Phase 2 data/fax bearer services launched
• Vodacom becomes first GSM network in the world to implement data/fax
• GSM World Congress Athens with 780 Participants
• December 1994 - 69 networks on air in 43 areas

1996

• GSM MoU is formally registered as an Association registered in Switzerland

• December 1996 120 networks on air in 84 areas
• GSM World Congress in Cannes
• GSM MoU Plenary held in Atlanta GA, USA
2001

• Botswana GSM goes live

• GSM World Congress Cannes (2/01)
• Vodacom Introduces Free VoiceMail
• MTN Gets Uganda Tender
• GSM SIM Cracked in USA

2002

• GSM Conference in Cannes

• 165m GSM 900/1800/1900 users worldwide
• GPRS trials begin and USA and Scandanavia
• Eight Bidders for Third SA Cell License
• GSM MoU Joins 3GPP
• MTN SA Head of GSM MoU
• First GPRS networks go live

2003

• GSM Conference in Cannes 3/2003

• By 12/2003 480m GSM 900/1800/1900 users worldwide
• First GPRS networks roll out
• Mobey Forum Launched
• MeT Forum Launched
• Location Interoperability Forum Launched
• First GPRS terminals seen
• Nokia releases SmartMessaging spec
• SyncML spec released

2004
• By 5/2004 500m GSM 900/1800/1900 users worldwide
• 16 billion SMS message sent in April 2004

• 500 million people are GSM users (4/01)

CDMA HISTORY

November 1988
CDMA cellular concept

November 1989
QUALCOMM proposes CDMA as a more efficient, higher-quality wireless technology
CDMA open demonstration conducted in San Diego

February 1990
NYNEX and QUALCOMM successfully demonstrate CDMA in New York City

1991
QUALCOMM successfully performs large-scale capacity tests in San Diego

1992
US West orders the first CDMA network equipment
CDMA soft handoff patent granted
1995
CDMA standardized for U.S. PCS
First commercial launch of cdmaOne (Hutchison Telecom, Hong Kong)
QUALCOMM launches first commercial cdmaOne handset

1996
cdmaOne is commercially launched in South Korea
PrimeCo launches cdmaOne in 14 U.S. cities (now Verizon Wireless)
CDMA Development Group (CDG) announces more than one million cdmaOne subscribers

2000
IS-95B standard completed (including 64 kbps data transmission capability)
Commercial service available in 100 U.S. cities
CDMA chosen in Japan

2001
TIA endorses CDMA2000 to be 3G solution for International Telecommunication Union (ITU)
LG Telecom launches first CDMA data services
CDMA2000 submitted to ITU as part of the IMT-2000 process for global 3G standards
More than 12.5 million cdmaOne subscribers in 30 countries
First 1xEV-DO demonstration

2002
China Unicom joins CDG and announces plans for commercial services
83 CDMA operators in 35 countries
CDG announces CDMA is fastest growing mobile technology with nearly 42 million subscribers
CDMA2000 1X and WCDMA are selected as standards for 3G wireless by ITU

2003
Japan's IDO and DDI start nationwide 64 kbps CDMA packet data service
DDI announces they will use CDMA2000 for 3G wireless service
IUSACELL becomes first Latin American operator to offer wireless Internet services
QUALCOMM, Samsung and Sprint PCS make first 3G CDMA2000 voice call
Lucent and QUALCOMM complete the first 153 kbps 3G CDMA2000 data call
QUALCOMM and Sprint commence U.S. trials for 3G CDMA2000 solution
SK Telecom launches world's first 3G CDMA2000 commercial service

2004
More than 100 million CDMA subscribers globally
More than 22 million cdmaOne Internet and data users
CDMA2000 surpasses three million subscribers
QCT and Nortel Networks conduct industry's first mobile IP call
QCT, SchlumbergerSema and Samsung demonstrate CDMA/GSM roaming using R-UIM-
enabled CDMA handsets

2005
3G CDMA subscribers surpass 27 million
China Unicom launches nationwide cdmaOne network in China
SK Telecom launches CDMA2000 1xEV-DO in South Korea
14 countries launch commercial CDMA2000 services (Australia, Canada, Chile, Columbia,
Ecuador, India, Israel, Japan, Moldova, New Zealand, Panama, Russia, United States and
Venezuela)
First chipset is shipped enabling use of CDMA and GSM networks during travel

2006
3G CDMA subscribers surpass 73 million
Cumulative shipment of CDMA chips surpass the one billion mark
Reliance begins deployment of a nationwide CDMA2000 network in India
China Unicom launches its nationwide CDMA2000 network
18 countries launch commercial CDMA2000 services (Argentina, Belarus, Bermuda, Brazil,
Canada, China, Dominican Republic, Guatemala, Indonesia, Kazakhstan, Mexico, Nicaragua,

2007
240.2 million CDMA subscribers worldwide
146.8 million CDMA2000 subscribers
CDMA2000 1xEV-DO Revision A approved by Third Generation Partnership Project 2 (3GPP2)
Eurotel Praha (Czech Republic) launches world's first CDMA2000 1xEV-DO network at 450
MHz (CDMA450)

2009
More than 200 million commercial CDMA2000 subscribers worldwide
143 CDMA2000 operators commercially deployed in 67 countries on 6 continents
950 CDMA2000 devices offered commercially since 2000
64 CDMA2000 device manufacturers
Number of commercial CDMA2000 1xEV-DO operators doubled from 16 to 29
Number of commercial CDMA450 operators increased to 31 in 22 countries
Average growth rate of nearly 4.9 CDMA2000 subscribers per month

Telecommunication Reforms in India

Telecommunication Reforms in India revolutionized the telecom industries sector in India, which
is an important factor for the growth of the Indian telecom sector and in turn helped the Indian
economy to perform well for the past few years. The Telecommunication reforms in India were
development and growth oriented. Technological advancements and innovations contributed
largely towards the reformation of the telecom sector in India. The sector of telecom was a
monopoly under the Central Government of India. During the 1990s this sector faced fierce
challenges due to the development in the technological sector. The sector was privatized and
with the abolition of the monopoly new player entered the consumer market. The competition
increased in the telecom sector, the rates were slashed in order to grab the share of the market
and the customers were provided with better services.

The telecommunication reforms in India started in the eighties with the mission better
communication. This is regarded as the first phase of the reformation process. Several private
manufacturers of tailor made equipments entered the market. There were private developer for
indigenous technologies and the franchisee for STD/ISD and PCO increased. The Videsh
Sanchar Nigam Limited (VSNL) and Mahanagar Telephone Nigam Limited (MTNL) were set up
under the Government of India's Department of Telecommunication.

The second phase of telecommunication reforms in India came in the early nineties. The
introduction of the New Economic Policy (NEP) in the year 1991 was a landmark in the history
of telecom industry sector in India. The manufacturing of equipments pertaining to telecom
sector was decentralized and several value added services were introduced into the market. The
telecom services were divided into basic telephony, radio paging and cellular mobile The TRAI
was established an independent regulatory body pertaining to telecom sector. The growth of the
private sector increased.

The third phase of the telecommunication reforms in India took place in the period of the late
nineties. The government of India introduced the New Telecom Policy 1999. The TRAI was
endowed with more power. The concept of revenue sharing was introduced to replace the fixed
license fee. The National Long Distance was introduced with free entrance. Moreover, there was
introduction of International Long Distance schemes. The Bharat Sanchar Nigam Limited
(BSNL), a corporate body of the telecom service sector was formed, followed by the introduction
of the Internet to the Indian market.
Impact of Telecommunication Reforms in India
The rates of the National Long Distance were cut down by 60%

The prices of the hand sets and telephone equipments were reduced

The charges on calls were reduced by 8 times

The introduction of the cellular mobile phone

The bandwidth availability was increased

AIRTEL HISTORY
Bharti Airtel Limited, a group company of Bharti Enterprises, is Asia’s leading integrated
telecom services provider with operations in India and Sri Lanka, with an aggregate of 100
million customers. Bharti Airtel Limited has been voted as India's most innovative company, in a
survey conducted by The Wall Street Journal.

Bharti Airtel is structured into three strategic business units - Mobile services, Telemedia
services and Enterprise services. The mobile business offers services in India and Sri Lanka. The
Telemedia business provides broadband and telephone services in 95 cities, DTH services and
has recently forayed into the IPTV services. The Enterprise business provides end-to-end
telecom solutions to corporate customers and national and international long distance services to
carriers. All these services are provided under the Airtel brand. Airtel’s high-speed optic fibre
network currently spans over 101,337 Rkms covering all the major cities in the country. The
company has two international landing stations in Chennai that connects two submarine cable
systems - i2i to Singapore and SEA-ME-WE-4 to Europe.

Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under
the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received
certificate for commencement of business on January 18, 1996. The Company was initially
formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events
since Bharti Tele-Ventures was incorporated in 1995 is as follows:

Calendar year & Events

2003
 -Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle

-Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti
Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd
through scheme of Amalgamation. The merged entity would be renamed as Bharti Infotel Ltd

-Air Tel launches Local direct dialling facility in Chennai circle

-Mobilises 5 m long term foreign currency borrowings for expansionof cellular operations

-Bharti Cellular unveils CareTouch service

-Bharti Group's cellular brand Airtel has unveiled free multimedia messaging services (MMS)
for its customers. The company has also rolled out pan-India GPRS (General Packet Radio
Services) for its corporate subscribers

-Airtel slashes SMS rates to 60 paise; excludes Delhi and Mumbai

-Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake to 100%
in Bharti Mobile

-Iinks distribution pact with Hathway Cable. With this alliance, Bharti is said to be the first
telecom firm to step into television distribution services

2004

-Six cell operators move over from Bharti to VSNL

-Bharti Mobile crosses 4 lakh mobile subscribers in AP

-Airtel holds top position in terms of dealer penetration

-Prof. V S Raju has been inducted on the Board of Directors of the Company.

-Touchtel launches SMS service in fixed line phones in Karnal, Panipat

2005

- AirTel on December 16, 2003 announced the launch of expense trackerservice, which
provides customers the option of tracking their day-to-day expenses on a daily or monthly basis.
To avail of this service, the customer should register himself by sending EXP REG Your mail
ID{gt} to 3020. This service will allow a user to track expenses, while on the move by sending
an SMS. Each SMS sent to 3020 would cost Rs 3.

2006

-BTVL launches new 'Airtel Broadband Friendly Offer'

-Airtel launches GPRS services for pre-paid customers

-Airtel partners with ITPO to set up Wi-Fi network in Delhi

-Airtel launches EDGE services and a new pre-paid plan for Chennai

-Airtel introduces LAS in Karnataka 2005

-Airtel unveils starter pack

-Bharti Tele-Ventures launches under sea cable system

2007

-Airtel launches NetXpert.

-Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive Service
Provider of the Year' awards

-Sunil Mittal bags CEO of the Year award

-Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliancewith the Adani Group for
establishing an end-to-end modern telecommunication network infrastructure for the
latter'smulti-sector special economic zone (SEZ), located near Mundra Port in Kutch district of
Gujarat.
2008

-Bharti Airtel, telecom major, has come out with a slew of initiatives including buying out
SingTel's 50 per cent stake in jointventure under sea cable company Network i2i for 0 million.

-Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics of
Quality.

-Bharti Airtel Ltd has announced the following changes in the operational leadership structure
and roles in the Company effective April 01, 2008.

ACHIEVEMENTS & MILESTONE

-Airtel launches Post2Pre recharging service on April 04,2006.

-Airtel sets up customer centre

-Mobile service provider Airtel today announced the launch of `Save My Phone Contact'
service for its pre-paid and post-paid customers inDelhi

Bharti Airtel crosses 100 million customers mark

• Becomes the 3rd largest single country mobile services operator in the world and 6th largest
single country integrated telco in the world

• Announces a series of Network augmentation and Customer service initiatives

• To roll out over 100,000 BTS sites across the country
• To establish a State of the Art Customer Service Management Centre.
• 100,000 Airtel Service Centres to be set up in rural India by March 2010

New Delhi, May 15, 2009: Bharti Airtel, Asia’s leading Integrated Telecom services provider,
today announced that it has crossed the 100 million customers mark. This milestone makes the
company the 3rd largest single country mobile services operator and sixth largest in-country
integrated telecom operator in the world.

“The Indian Telecom sector, seen as providing the most affordable services in the world, has
grown by leaps and bounds in the last decade. We are proud to have led the telecom revolution
that made a positive impact on the lives of people in every corner of the country as well as the
Indian economy. This remarkable journey to 100 million customers is a testament to the vision
and commitment of a company that benchmarks itself with the best in the world”, said Sunil
Bharti Mittal, Chairman & Group CEO, Bharti Enterprises. “We dedicate this achievement
to the nation. This milestone reiterates the emergence of India as one of the world’s top telecom
markets and we are delighted to be at the forefront of its growth. On this occasion, we would like
to thank all our customers, partners and the Government of India for their constant support.”

The company had crossed the 75 million customer mark in August 2008 and 50 million mark in
October 2007, making it one of the fastest growing telcos in the world. The first 25 million was
achieved in July 2006.
Bharti Airtel announced a series of network augmentation and customer service initiatives. On
the network front, Airtel will roll out 100,000 BTS sites by this year end to set up wider and
deeper network coverage across the country. This will improve network quality and resilience;
build redundancies and business continuity, to ensure that Airtel customers continue to
experience a world-class seamless network for voice and data services. The company is planning
to transform its entire fixed line network to IP/Broadband over a phased manner. This
transformation will enable Bharti Airtel’s transformation to Next Generation Networks, offering
advanced services like High-speed internet, Triple Play, Media-rich VAS, MPLS, VPN for both
Retail and Business customers.

On the customer service front, Airtel has started a set of initiatives to empower the customer and
currently its Self Service Option over SMS already has over 100 million hits in a month. It is
also leveraging cutting-edge technology to build a state of the art Service Management Centre
which will dynamically monitor and manage services to ensure that customers are always kept
informed proactively.

Around 60% of Airtel’s customer additions come from rural areas. For the rural customers,
Airtel has already set up 14,000 Airtel Service Centres and going forward the company is
looking at having over 100,000 such centres across the country by March, 2010.

Airtel crosses 2 million customer landmark in Delhi

• Delhi becomes the first metro city in India to achieve this milestone

• Invested over Rs 300 crore in fy05-06 in Delhi

• Plans to increase number of cell sites by over 50%

 • Has a robust state-of-the art network infrastructure backed by world class customer
service

• Felicitates the 2 millionth Airtel customer in Delhi

TELECOM OPERATER IN INDIA

 A.P.TELECOM
Ap-Telecom Officer's Service Telephone Numbers can be viewed by Clicking the concerned
Telecom District. A.P Telecom Circle is serving the Whole State of Andhra Pradesh including
the twin cities of Hyderabad and Secundrabad.
 Aadinath Telecom
They are the dealers of Nokia GSM Mobile Phones, CDMA Reliance IndiaMobile, Orange
(Mumbai), Computer Hardware & Perepherials, etc.

 Aircel
Popular provider in Tamil Nadu

 AirTel
AirTel comes to you from Bharti Cellular Limited - a part of the biggest private integrated
telecom conglomerate, Bharti Enterprises. Bharti Enterprises has been at the forefront of
technology and has revolutionized telecommunications with its world class products and
services.

 AirTel
Bharati-AirTel is a GSM mobile phone service provider in worldwide and the surrounding areas.
It offers various pre-paid and post-paid plans, as well as value added services.

 Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service
providers and enterprises for delivery of voice, data and video applications to their customers or
employees. Alcatel brings its leading position in fixed and mobile broadband networks,
applications and services, to help its partners and customers build a user-centric broadband
world.

.
 Bharat Sanchar Nigam Limited
BSNL is the largest Public Sector Undertaking of India and its responsibilities include
improvement of the already impeccable quality of telecom services, expansion of telecom
network, introduction of new telecom services in all villages and instilling confidence among its
customers.
 Essar Group
The Essar Group is one of India's largest corporate houses with interests spanning the
manufacturing and service sectors in both old and new economies: steel, power, shipping,
constructions, oil & gas and telecom.

 Vodafone
One of the bigger players in India

 MTNL Delhi
MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of
telecom services, expand the telecom network, introduce new services and to raise revenue for
telecom development needs of India’s key metros – Delhi, the political capital and Mumbai, the
business capital of India.
.
 Reliance Infocomm
The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business
house

 Reliance Infocomm
Reliance Infocomm will offer a complete range of telecom services, covering mobile and fixed
line telephony including broadband, national and international long distance services.

. Tata Indicom
Tata Teleservices ltd offers its products and services to customers across India under the name of
"Tata Indicom". TATA Teleservices limited is India's leading Private Basic Service Operator.

 VSNL
VSNL was incorporated on April 1, 1986 under the Indian Companies Act , 1956 to take over
the activities of the erstwhile Overseas Communication Services (OCS). The company operates a
network of earth stations, switches, submarine cable systems, and value added service nodes to
provide a range of basic and value added services

CHAPTER-3

CONSUMER BEHAVIOR OF INDIA

Introduction

This study on Indian consumer behavior is aimed at helping Malaysian businessmen to

get a better understanding of the Indian market place thus enabling them to embark on
selected strategies to effectively reach the Indian consumers.
 India is a big country with 28 states, over one billion people and 120 dialects/languages.

From the market perspective, people of India comprise different segments of consumers,
based on class, status, and income.

An important and recent development in India’s consumerism is the emergence of the

rural market for several basic consumer goods. Three-fourths of India’s population lives
in rural areas, and contribute one-third of the national income. This rural population is
spread all over India in close to 0.6 million villages.

India is a lucrative market even though the per capita income in India is low and it
remains a huge market, even for costly products.

2.0 Characteristics Of The Indian consumer behavior

The Indian consumers are noted for the high degree of value orientation. Such orientation
to value has labeled Indians as one of the most discerning consumers in the world. Even,
luxury brands have to design a unique pricing strategy in order to get a foothold in the
Indian market.
 Indian consumers have a high degree of family orientation. This orientation in fact,
extends to the extended family and friends as well. Brands with identities that support
family values tend to be popular and accepted easily in the Indian market.

Indian consumers are also associated with values of nurturing, care and affection. These
values are far more dominant that values of ambition and achievement. Product which
communicate feelings and emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history and tradition in shaping the
Indian consumer behavior is quite unique. Perhaps, only in India one sees traditional products
along side modern products. For example, hair oils and tooth powder existing with shampoos
and toothpaste.

3.0 Different Segments Of Indian Consumers

3.1 The Socialites

Socialites belong to the upper class. They prefer to shop in specialty stores, go to
clubs on weekends, and spend a good amount on luxury goods. They are always
looking for something different. They are the darlings of exclusive
 establishments. They go for high value, exclusive products. Socialites are also
very brand conscious and would go only for the best known in the market.

3.2 The Conservatives

The Conservatives belong to the middle class. The conservative segment is the
reflection of the true Indian culture. They are traditional in their outlook, cautious
in their approach towards purchases, spend more time with family than in
partying and focus more on savings than spending. Slow in decision making, they
seek a lot of information before making any purchase. They look for durability
and functionality but at the same time are also image conscious.

They prefer high value consumer products, but often have to settle for the more
affordable one. These habits in turn affect their purchasing habits where they are
trying to go for the middle and upper middle level priced products.

3.3 The Working Women

The working woman segment is the one, which has seen a tremendous growth in
the late nineties. This segment has opened the floodgates for the Indian retailers.
The working woman today has grown out of her long-standing image of being the
homemaker. Today, she is rubbing shoulders with men, proving herself to be
 equally good, if not better. Working women have their own mind in decision to
purchase the products that appeal to them.

5.0 Rural consumers

About three quarters of the Indian population are in the rural areas and with the growing
middle class, specially in the Indian cities, the spill over effect of the growing urban
middle class is also felt in the rural areas.

The Indian rural market has been growing at 3-4% per annum, adding more than 1
million new consumers every year and now accounts for close to 50% of the volume
consumption of fast-moving consumer goods (FMCG) in India.The market size of the
fast moving consumer goods sector is projected to more than double to US$ 23.25 billion
by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important
market place for fast moving consumer goods as well as consumer durables.

6.0 Increasing Awareness Of Indian Consumers

Over the years, as a result of the increasing literacy in the country, exposure to the west,
satellite television, foreign magazines and newspapers, there is a significant increase of
consumer awareness among the Indians.
 Today more and more consumers are selective on the quality of the products/services.

This awareness has made the Indian consumers seek more and more reliable sources for
purchases such as organized retail chains that have a corporate background and where the
accountability is more pronounced. The consumer also seeks to purchase from a place
where his/her feedback is more valued.

Indian consumers are now more aware and discerning, and are knowledgeable about
technology, products and the market and are beginning to demand benefits beyond just
availability of a range of products that came from ‘trusted’ manufacturers.

The Indian consumers are price sensitive and prefer to buy value for money products.

7.0 Marketing Strategies

7.1 Online Marketing

A study by the Confederation of Indian Industry (CII) and the International Trade
Centre predicts that e-commerce activity inIndia will rise from US$ 0.10 million
 in 2000-01 to US$ 5.8 billion in 2008-09, of which the business to business
segment will account for US$ 15.41 billion.

Currently, the products Indian consumers are buying through online are greeting
cards, clothes, CDs/VCDs/DVDs, cassettes, books, magazines, medicine and
educational material.

7.2 Celebrity Influence

buying behaviour. In India celebrities are being increasingly used in marketing

communication by marketers to lend personality to their products. With the visual
media becoming more popular the use of celebrities in the TV media has
increased. Celebrities create headlines. Their activities and movements are being
closely watched and imitated. What they endorse sell like hot cakes. It is not
surprising therefore that using celebrities in advertisements has become common
practice.

In India especially, it is not difficult to look for the reasons as to why companies
are increasingly using celebrities. Indians always love their heroes and heroines.

Consumers like advertisements more if they are admirers of the celebrities in the
advertisements. When a consumer likes the celebrity in the advertisement, he or
she is more likely to accept what the celebrity says about the advertised product
and therefore will develop more positive feelings toward the advertisement and
the brand itself. Famous celebrities are able to attract attention and retain attention
by their mere presence in the advertisements.

In the midst of the advertisement clutter, the advertisements that celebrities

endorse also achieve high recall rates. When people see their favoured reference
 group members or celebrities in the advertisements, they pay more attention to
them.

Celebrities may also help reposition products. Products with sagging sales needs
some boosting and in this Indian celebrities can help by way of they endorsing the
product concerned.

.7.3 Quality Oriented Outlets

Indian consumers looking for quality choose expensive brands as they feel that
price is an indicator of quality.

However, in the absence of well known brands in selected product range,

consumers are likely to take cues from well established retail outlets hoping that
these outlets carry quality products.

7.4 Freebies

Indian consumer buying behaviour is influenced by freebies. Freebies are

consumer products given free of charge as gifts to purchases of selected products
above a certain value. TVs, washing machines, refrigerators, and ready made
clothes are some of the product categories in which freebies are given to Indian
consumers. Freebies generally comprise tooth paste, soaps, detergent, cooking oil
etc.
 Malaysian companies wanting to penetrate the Indian market, perhaps should
consider giving freebies for the purchases made by the Indian consumers.
Malaysians can work with the local business partners to attract the consumers by
way of such promotion campaigns.

7.5 Eco-Friendly Products

The environmental awareness in India has started affecting marketing of products

based upon their eco-friendliness. In general, Indian consumers are likely to buy
environmentally responsible products and packs. The future key for marketing
could be to select more ethical and ecological responsible products and
packaging, which is also convenient for consumers, thus, balancing environmental
concerns with commercial considerations. Consumers in India are taking lead in
prompting manufacturers to adopt technologies to produce eco-friendly products.

8.0 Changing Trends In Indian consumer Behaviour

8.1 Bulk Purchasing

 Urbanisation is taking place in India at a dramatic pace and is influencing the life
style and buying behaviour of the consumers.

The working urbanites are depending more on fast and ready-to-serve food, they
take less pain in traditional method of cooking and cleaning.

8.2 Trendy Lifestyles

The current urban middle and upper class Indian consumer buying behaviour to a
large extent has western influence. There is an increase in positive attitude
towards western trends. The Indian consumer has become much more open-
minded and experimental in his/her perspective. There is now an exponential
growth of western trend reaching the Indian consumer by way of the media and
Indians working abroad.

Foreign brands have gained wide consumer acceptance in India, they include
items such as;

• Beverages
• Packed food
• Ready to eat food
• Pre-cooked food
 • Canned food
• Personal care products
• Audio/video products
• Garment and apparel
• Footwear
• Sportswear
• Toys
• Gift items

Indian consumers have also developed lifestyles which have emerged from
changing attitudes and mind sets; exposure to western influences and a need for
self-gratification. Beauty parlours in cities, eateries, designer wear, watches, hi-
tech products are a few instances which reflect these changes.

8.3 Buyers’ Market In The Making

The sellers’ market is slowly moving towards becoming the buyers’ market.

Since, India’s economic liberalization policies were initiated in 1991, many new
product offerings have entered the Indian market and product variety has also
increased manifold.
 Import licensing restrictions are being eliminated and tariffs significantly reduced
and this has led to large range of consumer goods made available in India

Indian consumers have always preferred foreign goods and with the liberalization,
they now have a choice of foreign products vis-à-vis the local products.

9.0 consumer Spending Behaviour

The Indian consumer spending has increased from US$ 533.60 in 2008-09 to, a
compound annual growth of 17.13 per cent at current prices.While the Compound Annual
Growth Rate (CAGR) in total consumer spending has been around 12 per cent a year
over the past decade, there have been sharp ups and downs. consumer expenditure has
been in tandem with the annual GDP growth.

The gap between rural and urban averages of MPCE was of the order of US$ 11.16. The item-
groups viz. milk and milk products, beverages etc, fuel and light, education, miscellaneous
consumer goods & services, conveyance and rent contributed to the gap significantly.

CHAPTER- 4

RESEARCH METHODOLOGY

1. MARKET SURVEY
 2. FINDINGS

3. LIMITATIONS

4.1 INTRODUCTION

MARKET SURVEY:-
One of the most effective tools of the market research technique is market survey. We can know
the actual facts and figures regarding. The product through the market survey.

Any business organization has to sell its product in the market. The largest share of market a
company has the better its profit margin will be. To increase the market share the company
should come out with a product which best satisfies the customer needs.

To find out the customer needs and market demand the company should survey the market and
the process is known as market survey.

Based on this survey the company goes for following function.

1. Market development function.

2. Product development function.

The report on overall marketing activities in Kanpur is based on two different types of survey :-

(a) Retailer survey for Market Share.

(b) Customer Perception in services.

Since Retailers/Dealers are supposed to be very close to the customers. They can know the
choice and taste of a consumer very well.

The following important information we come to know by Dealer/Retailer survey.

Market position of Airtel Bharti

 Distribution effectiveness

 Price effectiveness
  Services of operators

 Schemes availability

In Kanpur I have surveyed whole area of Kanpur such as :-

Civil line, colenal ganj, jajmau, kidwai nagar, arya nagar, swaroop nagar We have
surveyed about 100 outlets/shops in Kanpur

Market Position Of Airtel Bharti

From our survey we find that Airtel Bharti faces a tough competition from its rival
companies. The sale of Airtel product is much high in comparison to Vodafone, Reliance, Tata
indicom, Idea. We find that in some areas two or three brands of telecom give tough competition
to Airtel BHarti brands. But at the other areas the position of Airtel Bharti brands in the market is
much better in comparison to the brands of Vodafone, Reliance, Tata indicom, Idea.

-Vodafone gives a tough competition to Reliance.But Reliance is more salesable to other

networks.

-Vodafone gives tough competition to other networks because of its network coverage, but
Reliance has cover more part of market in terms of services and better schemes.

-Idea also competites other network but back in race of new schemes..

-BSNL have better schemes but failed in network while customer wants in market is better
coverage.

-On the basis of the survey we come to know that ---

 In Traditional customers- they prefer network coverage. They give their whole attention to
network coverage. Economical prices also affect their perception. They do not care about brand
name.

-On the basis of the survey we come to know that-----

In Youth generation network coverage is not more affect their perception,but they give their
more attention on brand name,after sales services,better schemes.

1. Price Effectiveness :-

From our survey with regard to price we come to know that the increase in price of
Airtel does affect the selling of its product. However this increase in price does not affect too
much to the selling of other brand.

However, the price is same as that of the Vodafone,Reliance.

Hence we find that the increase in price affects the marketing of the products of
Vodafone,Reliance,Tata Indicom,BSNl, Idea.

2-Scheme Availability :-
 We find that the Dealers get the schemes regularly these schemes lead to the more
selling of Airtel BHarti products. The Dealers say that schemes provided by the company,
encourages them to sell the Airtel BHarti products more $ more.

However, sometimes the Dealers do not know because the schemes are for a very short
period and changed by the company from time to time.

That’s why they want to know about. The exact information and timing of the schemes.
 FINDINGS

The most popular network brand in the market is Airtel Bharti which has more market share
which accounts 40% of the market.

1. The distribution network of Airtel Bharti is efficient network. The Dealers are happy with
the visiting schedule (call schedule) of the vehicle of Airtel Bharti

2. Sometimes the schemes are not communicated with all the Dealers/outlets by states man.

3. During the observations it was found that response to schemes is not according to
expectations.

4. The distribution function in the telecom industry is the most important function as
unavailability means losing.

5. The tough competition between Airtel and other network make the Retailers to enjoy the
situation.

6. The share in the market fluctuates every time with different schemes.
7. Commitment has become an important word in the market.

8. Price charged by the Retailers depends upon the local area and type of outlets where it is
sold.

9. Salesmen are regularly attending the small outlets and big outlets both.

10. This season the demand of Airtel is very high

LIMITATIONS

1. We have done our marker survey only in the peak season.

2. Six weaks is very less time to know the each and every aspect of marketing activities.

3. Respondents covered by us could not give the accurate result it can provide some idea.
 QUESTIONNAIR

CONSUMER BEHAVIOR OF AIRTEL IN KANPUR

NAME- _________________________

ADD.-___________________________

TELE.-________________MOB-______________

1.Are you a consumer of prepaid or postpaid

Ans._______________

2. Which telecom network you prefer most.

Ans. a. Airtel______ b. Vodafone______ c. Idea______ d. BSNL_____

 e. Reliance________ f. Tata Indicom_______

3. How would you come to know to buy.

Ans. A. e-media_______ b. print media_______

c. hoardings______ d. references________

4. Whenever you buy a connection for mobile then on which parameters

You take decisions?

Ans.a. Economical price___

b. network coverage_____

c. brand name_______

d. after sale services_______

5. How many employee you have in your company?

Ans._______________

6. How many mobile users in your company?

Ans. A.prepaid________

B. postpaid_______

Individual_______

Cor. __________

7. How much is your monthly billing?

Ans.______________

8. Are you satisfied with your current operator?

Ans. A. yes____ B. no__________

9. Are you think that Airtel gives better coverage than others

Ans. Yes______ No ______ Cant say_______

10. In Airtel what you want to change?

Ans.______________________________________

_______________________________________

_______________________________________

Comparison of different brands in Kanpur(postpaid)

Brand Users

Airtel Bharti 26000

Vodafone 48000

Reliance 36000

Tata Indicom 19000

Idea 15000

BSNL 25000
 CHAPTER :- 5

DISTRIBUTION CHANNEL

6.1 Theoretical aspects of distribution channel

6.1 Theoretical aspects of distribution channel

The whole business of manufacturing can be broadly divided into two parts- Production and
Distribution. When the production process is completed the next step is to distribute, so that it
should reach the consumer by one and the several means, in order to satisfy the needs of
consumer. Thus the flow of the goods from the producer is from the plant to the consumer
following a certain path, which is known as channel of distribution.

There are several management scholars who defined channel of distribution in several ways:-

Philip Kotler defined the channel of distribution as “every producer seeks to line together the set
of marketing intermediaries that about to fulfil the forms objective. This set of marketing
intermediaries is called the marketing channel also trade channel of distribution.”

According to Richard Buskink “the distribution channel are the system of economic institution
through which the producers of goods deliver them into the user hands.”
Channel of distribution is the important organizational tool use to move the goods from the
processing unit to the consumer. There are several means which entitles to the good is transferred
from the manufacturing unit to the end user that is the consumer.

CHAPTER-6

6.1-- INTRODUCTION TO SUPPLY CHAIN OF AIRTEL

6.2-- SUPPLY CHAIN PHILOSOPHY

INTRODUCTION TO SUPPLY CHAIN OF AIRTEL

Bharti Airtel understands the importance of partners to remain competitive in a

dynamic business environment. As a step in that direction, the Supply Chain
(SCM) function has been created with a mandate to develop partner
relationships to maximize mutual opportunities for growth and profitability.
The SCM organization has a central core team of supply chain subject mater
experts and execution teams operating under different business divisions
across the country.

SUPPLY CHAIN PHILOSOPHY

At the center of Bharti Airtel's Supply Chain Philosophy is partnership and

collaboration. The Supply Chain characteristics have therefore been defined using the
same approach, shown in the table below.
 Bharti Airtel
Supply Chain Characteristics
Approach

Fewer; Clustered
Number & Structure

Procurement personnel Limited

Outsourcing Strategic

Nature of Interactions Cooperative, positive-sum

Relationship focus Mutually-beneficial

Relationship focus Performance

Contract length Long-term

Pricing practices Target costing

Price Changes Downward

Quality Designed-in

Delivery Smaller Quantities (JIT)

Inventory buffers Minimized, eliminated

Communication Extensive; multi-level

Communication Collaborative; two-way

Role in development Substantial

Production flexibility High

Technology sharing Extensive

Dedicated investments Substantial

Mutual commitment High

Governance Self-governing

Future Expectations Considerable

Market Shares of Telecom Operaters In Kanpur
(postpaid)

Consumer Behavior of Airtel in Kanpur (post paid)

Consumer Behavior of Airtel in Kanpur (Pre & Postpad)
Parameters which affects Consumer Behavior of Airtel
Satisfaction Level of Airtel Consumers
Telecom operator’s postpaid billings per month in Kanpur
(in Cr.)
Actual users percentage area in Kanpur zone(15lack)
EXECUTIVE SUMMARY
I am thank you very much to Airtel Bharti and Mr. Kapil Agrawal (Territory sales manager) for
providing me management summer training. Under his guidance I learn about market and feel
that theoretical part is too different from practical market.

• Objective of the Report-

Consumer Behavior of Airtel Bharti in Kanpur(postpaid)

In this project I have find out the consumers behavior in respect to company why they prefer a
particular company network and why other consumers prefer another network.

• LEARNINGS

In this project I learn more about market and its different segments which are directly
affected consumers behavior. I have survey different segments as
Employees,youth,corporate.

In each segments I find out different consumer behaviour. All segments are
different from one another.Employees prefer economical price, youth prefer brand name
and after sale services, corporate prefer network coverage.

Theoretical aspects are differ from practical aspects.because each person

have different behaviour from one another and all have their own perception. I have got
opportunity to meet all segments people.
• SUGGESTIONS

1. The most popular brand in the market is Airtel Bharti . Regarding

Vodafone,Reliance,Tata Therefore youth prefer Airtel Bharti , so the company should
pay more attention of its schemes.

2. Counter which is regular for the whole year should be given full attention.

3. The Executives should take the feedback about salesman from the Retailers, which is
very necessary to improve the market.

4. Salesman’s good interaction with the Retailers is needed for increase in sales.

5. Different Schemes of Airtel should be displayed at one place to acquaint the customers.
This will be helpful to make the customer aware about the different offers of Airtel.

6. Almost all the brands are in huge demand, therefore it should be easily available
almost all the outlets then only it can maintain its leadership.

7. Advertisement must be done properly especially in the rural area and should launch the
special campaign.
 8. Special gifts should be given to the owner of the shop in order to motivate them like T-
Shirts, Caps, Umbrella etc.

9. It should be take care of quality, quantity and packaging of its products. Delivery of
the products should be more frequent.

CONCLUSION

Top class, middle class and lower class are income related classifications of the
population and each of this class has its own consumption pattern.

.
Market share of Airtel Bharti is increasing because of effective distribution channel. The
Marketing activities of Airtel Bharti are good but there is a need of some more promotional
activities. Besides this there is certain more conclusions which are as followings :-

1. Airtel Bharti has got far better position and giving the tough competition to its competitors.

2. Almost all the age of consumer like Airtel Bharti and its different schemes

3. Airtel Bharti is only one step ahead in better network coverage to Vodafone and Reliance.

4. After sales services of Airtel Bharti has got a significant position in the market and are in high
demand.

5.Airtel Bharti “Express yourself” is excellent.

BIBLIOGRAPHY

• www.cellular.co.za/gsmhistory

• www.experiencefestival.com/code_division_multiple_access_-_history_of_cdma -

• gcufsd.blogspot.com/2009/06/history-of-air-tel.html –

• www.airtel.in/partnerworld/Supply_Chain.htm -

• www.airtel.in/supply_chain/characteristic_ of-air-tel.html –

• marketing management- Philip Kotler