Chapter 1

Introduction

1.1 About the Industry

India has a fast-growing mobile services market with excellent potential for the future. With
almost five million subscribers amassed in less than two years of operation, India's growth tempo has
far exceeded that of numerous other markets, such as China and Thailand, which have taken more than
five years to reach the figures India currently holds. The number of mobile phone subscribers in the
country would exceed 50 million by 2005 and cross 300 million by 2010, according to Cellular
Operators Association of India (COAI).
According to recent strategic research by Frost & Sullivan, Indian Cellular Services Market,
such growth rates can be greatly attributed to the drastically falling price of mobile handsets, with price
playing a fundamental role in Indian subscriber requirements. Subscribers in certain regions can
acquire the handset at almost no cost, thanks to the mass-market stage these technologies have reached
internationally. The Indian consumer can buy a handset for $150 or less. This should lead to increased
subscribership. This market is growing at an extremely fast pace and so is the competition between the
mobile service providers.
With the presence of a number of mobile telephony services providers including market leaders
like Airtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are providing either
of the two network technologies such as Global System for Mobile Communications (GSM) and Code
Division Multiple Access (CDMA). In cellular service there are two main competing network
technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access
(CDMA). Understanding the difference between GSM and CDMA will allow the user to choose the
preferable network technology for his needs.

Global System for Mobile Communication (GSM) is a new digital technology developed by the
European community to create a common mobile standard around the world. It helps you achieve
higher sell capacity and better speech quality and one can enjoy crystal clear reception on ones mobile
phone. It automatically solves the problem of eavesdropping on ones calls.
Before analyzing the telecom licensing framework in India, it is imperative that one must
examine what is a license. License issued by the government is an authority, given to a person upon
certain conditions to do something which would have been illegal or wrongful otherwise. For example,
a drivers license issued by the government, gives the authority to a person to drive a motor vehicle.
There are three main types of license fee which the government charges: (I) initial license fee, which
generally is non-refundable, (ii) annual license fee, and (iii) additional fee for allocation of spectrum.
Licensing framework has been an integral part of Indias telecommunication law. Under the
Indian Telegraph Act, 1885, section 4 gives power to the government to grant license to any person to
establish, maintain or use a telegraph.
Code Division Multiple Access (CDMA) describes a communication channel access principle
that employs spread spectrum technology and a special coding scheme (where each transmitter is
assigned a code). It is a spread spectrum signaling, since the modulated coded signal has a much higher
bandwidth than the data being communicated. CDMA is the current name for mobile technology and is
characterized by high capacity and small cell radius. It has been used in many communication and
navigation systems, including the Global Positioning System and the omnitracs satellite system for
transportation logistics.
Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for easier and faster
connectivity, the mobile telephony market is expected to race ahead.
National Telecom Policy 1994 (NTP-94)
The National Telecom Policy was announced in 1994 which aimed at improving India's
competitiveness in the global market and provide a base for a rapid growth in exports. This policy
eventually facilitated the emergence of Internet services in India on the back of established basic
telephony communication network. This policy also paved way for the entry of the private sector in
telephone services.
3

The main objectives of the policy were:

To ensure telecommunication is within the reach of all, that is, to ensure availability of
telephone on demand as early as possible

To achieve universal service covering all villages, that is, enable all people to access certain
basic telecom services at affordable and reasonable prices

To ensure world-class telecom services. Remove consumer complaints, resolve disputes and
encourage public interface and provide a wide permissible range of services to meet the
demand at reasonable prices

To ensure that India emerges as a major manufacturing base and major exporter of telecom
equipment

To protect the defence and security interests of the nation.

The policy also announced a series of specific targets to be achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would be
required to bridge the resource gap.
Thus, to meet the telecom needs of the nation and to achieve international comparable
standards, the sector for manufacture of telecom equipment had been progressively relicensed and the
sub-sector for value-added services was opened up to private investment (July 1992) for electronic
mail, voice mail, data services, audio text services, video text services, video conferencing, radio
paging and cellular mobile telephone. The private sector participation in the sector was carried out in a
phased manner. Initially the private sector was allowed in the value added services, and thereafter, it
was allowed in the fixed telephone services. Subsequently, VSAT services were liberalized for private
sector participation to provide data services to closed user groups.
Establishment of TRAI
The entry of private players necessitated independent regulation in the sector; therefore, the
TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs, and also to
fulfil the commitments made when India joined the World Trade Organization (WTO) in 1995. The
4

establishment of TRAI was a positive step as it separated the regulatory function from policy-making
and operation, which continued to be under the purview of the DoT2.
The functions allotted to the TRAI included:
a. To recommend the need and timing for introduction of new service provider
b. To protect the interest of customers of telecom services
c. To settle disputes between service providers
d. To recommend the terms and conditions of license to a service provider
e. To render advice to the Central government on matters relating to the development of
telecommunication technology and any other matter applicable to the telecommunication
industry in general.
New Telecom Policy 1999 (NTP-99)
In recognition of the fact that the entry of the private sector, which was envisaged during NTP-94,
was not satisfactory and in response to the concerns of the private operators and investors about the
viability of their business due to non realization of targeted revenues the government decided to come
up with a new telecom policy. Moreover, convergence of both markets and technologies required
realignment of the industry. To achieve Indias vision of becoming an IT superpower along with
developing a world class telecom infrastructure in the country, there was a need to develop a new
telecom policy framework. Accordingly, the NTP 1999 was framed with the following objectives and
targets:

Availability of affordable and effective communication for citizens was at the core of the vision
and goal of the new telecom policy

Provide a balance between provision of universal service to all uncovered areas, including rural
areas, and the provision of high-level services capable of meeting the needs of the economy

Encourage development of telecommunication facilities in remote, hilly and tribal areas of the
nation
5

To facilitate Indias journey to becoming an IT superpower by creating a modern and efficient

telecommunication infrastructure taking into account the convergence of IT, media, telecom and
consumer electronics

Convert PCOs, wherever justified, into public telephone information centers having multimedia
capability such as ISDN services, remote database access, government and community
information systems etc.

To bring about a competitive environment in both urban and rural areas by providing equal
opportunities and level playing field for all players

Providing a thrust to build world-class manufacturing capabilities and also strengthen research
and development efforts in the country

Achieve efficiency and transparency in spectrum management

Protect the defense and security interests of the country

Enable Indian telecom companies to become global players.

In line with the above objectives, some of the specific targets of the NTP 1999 were:

Make available, telephone on demand by 2002 and achieve a tele density of 7% by 2005 and
15% by 2010

Encourage development of telecom in rural areas by developing a suitable tariff structure so that
it becomes more affordable and by also making rural communication mandatory for all fixed
service players and thus
o

Achieve a rural tele density of 4% by 2010 and provide reliable transmission media in
all rural areas.

Players in the market

BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent
market share. Next is Bharti Airtel at 10.9% followed by Tata and Reliance at 5% and 4.1%
respectively.

BSNL as a company is growing and showed annual revenues of approximately $4.5 billion as
of 2014. BSNL is serving more than 125 million customers across the country and is catalyst in
checking the price point for telecom services.

Also, with the government intensifying its rural focus, only BSNL can turn into reality the next
wave of rural telecom penetration.

BSNL is a 100% Central Government entity and employees with BSNL are entitled to get
salaries and perks as decided by Government of India and not by BSNL

However both, MTNL and BSNL are plagued by declining revenues coupled with high costs.
BSNL has massive infrastructure, manpower, systems, and 80 per cent of landlines and 90 per
cent of broadband connections in India are operated by it.

Vodafone is investing nearly US$ 3 billion over the next two years in India in expanding its
network infrastructure and distribution channel in the country, as per Vittorio Colao, CEO,
Vodafone Plc.

BlackBerry plans to set up enterprise solutions centres to educate corporate customers about
various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the fastest growing
markets in terms of smartphone and mobile data adoption, said according to Sunil Lalvani,
Managing Director (MD), BlackBerry India.

Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the country in
the next two years.
Booming sectors

The tide has turned for the telecom sector in India, as growth and profitability has accelerated in
recent times. Tower companies are reaping benefits of a turnaround in the sector as operators
have started investing in networks to boost data penetration.

However it is in the countrys booming mobile segment in which the major battles are being
fought. Three major private players Bharti, Reliance and Vodafone - with a formidable 54%
share of the market between them, lead a large field of mobile operators. State-owned
enterprises BSNL and MTNL have also been making their presence felt with a combined
market share of 12%.

A look ahead

According to Craig Wigginton, vice chairman and U.S. Telecommunications leader, Deloitte &
Touche LLP, the big challenge for the telecom industry in 2014 which also presents a major
growth opportunity for the sector is that consumers are getting addicted to connectivity and
speed.

The ongoing expansion of the mobile ecosystem, coupled with demand for high-bandwidth
applications and services such as video and gaming, is keeping pressure on the industry to
increase the availability and quality of broadband connectivity.

What does this mean for players in the sector? Carriers will continue to pursue technological
advancements to handle demand, including offloading some mobile bandwidth needs to Wi-Fi,
which is proving an effective complement to mobile networks. At the same time, long-term
spectrum availability, spectrum efficiency, small cells and continued backhaul improvements
are likely to be a key focus to assure continued mobile broadband momentum

1.2 Company profile

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The businesses at Bharti Airtel
have been structured into three individual strategic 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 corporates. 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 telecommunication 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 25 million satisfied customers.
Bharti Airtel limited is a telecom MNC headquartered in New Delhi India, with a presence in 20
countries across the world its the 4th largest telecom company in the world in terms of subscribers base
which was over 275 million as on July 2013. Airtel is also the largest telecom company in India and the
second largest in country mobile operator by subscriber base after china mobile.
Sunil Bharti Mittal is the head of Airtel. Airtel is the largest provider of mobile telephony and
second in terms of fixed telephony and also provides broadband and DTH services. Airtel became the first
Indian company to get gold certification by CISCO.
Airtel is appreciated for forming a business strategy of outsourcing all its operations except sales,
marketing and finance ensuring low cost and high volumes. The network is outsourced to Ericsson and
Nokia Siemens whereas it is outsourced to IBM, transmission towers are maintained by bharti infratel ltd.
In India.
9

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.
With the presence of a number of mobile telephony services providers including market leaders like
Airtel, Reliance, Idea Cellular, Tata Indicom, Spice Communications etc. who are providing either of the
two network technologies such as Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). In cellular service there are two main competing network technologies: Global
System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Understanding
the difference between GSM and CDMA will allow the user to choose the preferable network technology
for his needs.
Indian mobile telephony market is increasing day by day and there is more to happen with
technological up gradations occurring nearly every day and the ever-increasing demand for easier and faster
connectivity, the mobile telephony market is expected to race ahead
The mobile telephony services providers Airtel, Vodafone (Formerly Hutch), have been competing
aggressively for their market share with MTNL, Tata Indicom, Reliance and Idea Cellular entering into the
foray, this tussle has only become tougher. With major market share in the hands of the likes of Reliance,
Airtel, Vodafone (Formerly Hutch), Idea Cellular the others have been finding it difficult to compete in the
market.
The Telecom Regulatory Authority Of India (TRAI) has been playing an important role in keeping a
watch on these existing players and bringing new environment as well as policies and reforms for these
Mobile Telephony Service Providers and permitting them to provide mobile telephony services including
permission to carry its own long distance traffic within their service area without seeking an additional
license. TRAIs mission is to create and nurture conditions for the growth of telecommunications
including broadcasting and cable services in the country in a manner and at a pace which will enable
India to play a leading role in the emerging global information society. The service providers are free to
provide, in its service area of operation, all types of mobile services including voice and non-voice
10

messages, data services and PCOs. The Operators would be required to pay a one-time entry fee. The basis
for determining the entry fee and the basis for selection of additional operators would be recommended by
the TRAI. Apart from the one time entry fee, operators would also be required to pay license fee based on a
revenue share. It is proposed that the appropriate level of entry fee and percentage of revenue share
arrangement for different service areas would be recommended by TRAI in a2
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).

Bhartis Vision
By 2010 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

Bhartis Mission
To be globally admired for telecom services that delight customers.
We will meet global standards for telecom services that delight customers through:

11

Customer Service Focus

Empowered Employees

Cost Efficiency

Unified Messaging Solutions

STRENGTHS

Cost advantage

Current leaders in quality service

Largest distribution network

Ability to constantly innovate

Highly skilled workforce

Entrepreneurial zeal

Airtels increased equity and market cap.

WEAKNESSES

To prove credibility

Price pressures

Need for Government support

Awareness

Sales and Marketing

OPPORTUNITIES

To sustain passion and commitment

Airtels market share increasing at other service provider expense.

Attain higher value services

Collaborative business needs to be explored

12

Vertical repeatable solutions.

Low penetration level in rural markets.

THREATS

Foreign investment

Global trends moving from GPS to WLL.

Lack of global parity in telecom tariff

Other competition

The Airtel Brand and its Logo

There has been no change in the brand name Airtel was born free, a
force to unleash into the market with a relentless and unwavering determination to succeed. A spirit charged
13

with energy creativity and team driven to seize the day with an ambition to become the most globally
admired telecom service.
The Airtel logo is a strong, contemporary and confident symbol for a brand that is always ahead of the rest.
It is a specially drawn wordmark.

The unique symbol is an interpretation of the 'a' in Airtel. The curved shape & the gentle highlights
on the red color make it warm & inviting, almost as if it were a living object.

The logo represents a dynamic force of unparalleled energy that brings us and our customers closer,"
it added.

The "unboxed" having been freed of its rigid boundaries. Airtel calls the new logo youthful,
international, inclusive and dynamic representing the journey of the first Indian brand to go truly
global. The new identity underlines Airtels willingness to embrace everything that is new. The red
color, which is an integral part of the brand, continues to represent the energy and dynamism that
has made Airtel the success it is today. The new curved addition to the logo is a symbol which will
help ensure instant recognition across diverse international markets.

The color "Red is part of our heritage. It is the color of energy & passion that expresses the
dynamism that has made Airtel the success it is today, in India, and now on the global stage.

14

BRAND AMBASSADORS USED BY AIRTEL

In order to take the advantage of the growing number of youth in our country, Airtel introduced
Sachin Tendulkar, Shahrukh khan, Saif ali khan, kareena Kapoor, Gautam gambhir and many others as
brand ambassadors to tap the potential.

15

Airtel has taken the lead on many occasions. It has been the first

Launched Cellular service in Delhi on November, 1995.

Operator to revolutionize the concept of retailing with the inauguration of Airtel Connect
(exclusive showrooms) in 1995.

To expand its network with the installation for second mobile switching center in April, 1997 and
the first in Delhi to introduce the Intelligent Network Platform First to provide Roaming to its
subscribers by forming an association called World 1 Network.

First to provide roaming facility in USA. Airtel has the largest automatic roaming service "SMART
ROAM"- National in 400 cities in India and "SMART ROAM" - International in over 60 countries
and 95 networks all over the world.

It is also the first company to export its products to the USA.

Awards for the year 2012-2013

Bharti Airtel Shared Services Team won two awards in categories of

Value Creation and Innovation & Improvement at the SSON (Shared Services & Outsourcing
Network) Excellence Awards 2012.

Bharti Airtel won four Effie awards at the Effie Awards 2012. Airtel's extremely popular 'Har ek
friend zaroori hota hai' campaign conceptualized by Taproot India, stood out as a campaign
amongst all nominations, winning three Gold Effie awards. Apart from a Gold in the 'Telecom &
Related

Services' category,

the

campaign

won

Gold

each

in 'Digital

Advertising' and 'Integrated Advertising'. Bharti Airtel also won one Silver Effie award for
its 'Baat sirf paison ki nahin hai' campaign for Airtel moneyin the telecom category.

Sanjay Kapoor was awarded the "Telecom Person of the year 2012" at the "Voice & Data
Telecom Leadership Awards 2012". The award was accorded by Honourable Minister of New and
Renewable Energy, Dr. Farooq Abdullah.

Won the QUEST Forum India Quality Award for the Top Telecom Service Provider. QuEST
Forum is a unique collaboration of information and communication technologies (ICT) service
providers and suppliers across the world, dedicated to improving operational and supply chain
quality and performance.

Awarded the #1 Service brand in Brand Equity's List of "Most Trusted Brands".

16

Bharti

Airtel

was

felicitated

for 'Best

Mobile

Service

Provider' and 'Innovation

in

mMoney' at Aegis Graham Bell Awards held on November 1, 2012.The Aegis Graham Bell
awards honor the best innovations in the field of TIME (Telecom, Internet, Media & Edutainment)
recognizing the most exceptional contributions in the respective fields.

Bharti Airtel was awarded the 'Brand of the Year' at the CNBC TV18's flagship initiative,
the India Business Leader Awards (IBLA) for its Har Ek Friend Zaroori Hota Hai campaign. The
IBLA Brand of The Year Award seeks to recognize a brand mass media/ communication campaign
based on its key message, popularity amongst the target audience and impact on the brand.

Bharti Airtel won the 'Excellence in First People Initiative' award at the first, People 2012
Awards. Airtel HR's multiple initiatives in enhancing the internal customer's experience through
innovation and leveraging mobile technology helped us to win the prestigious award.

The Airtel Centre of Excellence (ACE) received the 'Excellence Award for Shared Service Centre
Operations in India' in the 2nd National Shared Services Council by All India Management
Association and Delhi Management Association in recognition of their outstanding efforts to
identify key strategic drivers and implementing them to deliver value to all.

Bharti Airtel won the highly prestigious Porter Prize in the 'Exploiting Trade-offs' category. The
Porter Prize Awards, named after Professor Michael Porter the father of modern strategic field, are
the most coveted awards in the field of strategy and competitiveness. The award recognises and
honours Indian companies which have embraced the best strategic management practices.

Bharti Airtel Sri Lanka bagged a silver at the prestigious HRM awards. Airtel Sri Lanka was
recognized for their HR practices by HRM awards.

Bharti Airtel won the Star News Viewers Choice Best Mobile Network, Best Quality Mobile
Network Service Provider, at the 6th National Telecom Awards 2012 hosted by CMAI in May
2012.

Bharti Airtel won 5 awards at the Telecom Operator Awards 2012, announced in March 2012 by
Tele.net . Airtel bagged the 'Best National Mobile Operator', 'Best VAS Provider', 'Best
Enterprise Services Provider', 'Best Ad Campaign by an Operator' and 'Most innovative
Solution' for Airtel money.

17

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 fibre gateway on Network i2i, first private submarine
cable owned by us and SingTel.

Fixed line infrastructure

Our high quality fibre-based, fixed line networks in Delhi, Haryana, Tamil Nadu, Karnataka,
Madhya Pradesh and Chahattisgarh , intensively covers the most prominent commercial and
business districts in the country. We provide the power of last mile fixed line network to bring endto-end voice and data solutions.

Long distance infrastructure

Our 25,000 km advanced fibre-optic cable long distance network covers India's top 200 cities. And
it powers the services of India's leading private telecom service providers - cellular, fixed line and
internet through Our Long Distance Services.

Submarine cable
We have partnered with SingTel to create the world's largest submarine cable system- Network i2i
with 8.4 Tbps capacity. This 3200 km undersea cable structure stretches from Chennai to Singapore
and thereon to Tier-1 carriers on SingTel's capacity on 175,000 km of cables. The huge capacity on
network i2i is distributed locally in India through our 25,000 km of advanced fibre-optic domestic

18

long

distance

backbone,

providing

19

unprecedented

capacity,

speed,reliability.

Organization structure

20

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 Ericsson 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 & Mphasis. The company's unique strategic outsourcing model has been studied and documented
by Harvard Business School as a case study which is available for download at: www.hbsp.harvard.edu.

Factsheet At-a-glance guide to Bharti Airtel

Organization Structure Organisation chart depicting the Senior Management positions

Shareholding Structure Details on the latest shareholding structure and major shareholders, as on June
30, 2007

Awards & Recognitions Laurels recognising Bharti's consistent efforts

Corporate Governance
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to
conduct its business in a manner, which will ensure sustainable, capital-efficient and long-term growth
thereby maximising value for its shareholders, customers, employees and society at large. Companys
policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock
Exchanges and the Company ensures that various disclosures requirements are complied in letter and
spirit for effective Corporate Governance.
During the financial year 2003-04, your Company was assigned highest Governance and Value Creation
(GVC) rating viz. Level 1 rating by CRISIL, which indicates that the companys capability with respect to
creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices.
This rating was re-affirmed by CRISIL on April 20,2006

21

Chapter 2
Literature Review

22

2.1 Literature review

The growth in demand for telecom services in India is not limited to basic telephone services. India
has witnessed rapid growth in cellular, radio paging; value added services, internet and global
communication by satellite item (GMPCS) services. The agents of change, as observed from international
perspective, have been broadly categorized into economic structure, competition policy and technology.
Economic reforms and liberalization have driven telecom sector through several transmission channels of
which these three categories are of major significance.
The effective research cannot be accomplished without critically studying what already exists in the form of
general literature and specific studies. Therefore, it is considered as an important pre-requisite for actual
planning and execution of research project. This helps to formulate hypotheses and framework for further
investigation. In this research, the survey of literature has been classified into two parts - studies related to
telecom sector and studies related to marketing strategies.

Seth et al (2008) analyzed that there is relative importance of service quality attributes and showed
that responsiveness is the most importance dimension followed by reliability, customer perceived
network quality, assurance, convenience, empathy and tangibles. Liu (2002) found that the choice of
a cellular phone is characterized by two attitudes: attitude towards the mobile phone brand on one
hand and attitude towards the network on the other. Samuvel (2002) observed that most of the
respondents consider size, quality, price, instrument servicing are an important factors for selecting
the handset while majority of the respondents are satisfied over the payment system, quality of
services, coverage area and the process of attending the complaints regarding their mobile service
provider. Nandhini (2001) examined that attitude of the respondents using cell phones was not
influenced by either education or occupation and income.Kalpana and Chinnadurai (2006) found
that advertisement play a dominant role in influencing the customers but most of the customers are
of opinion that promotional strategies of cellular companies are more sale oriented rather than
customer oriented. Haqueet (2007) suggested that price, service quality, product quality &
availability, and promotional offer play a main role during the time to choose telecommunication
service provider.

23

Muller in his a research focuses that the success of the mobile commerce can be attributed to the
personal nature of wireless devices. Adding to this are its unique features of voice and data
transmission and distinct features like localization, feasibility and convenience. The sustained
growth of the mobile commerce around the world has been more because of the transfer of
technology according to the needs of local geography.

National Telecom Policy projected a target 75 million telephone lines by the year 2005 and 175
million telephone lines by 2010 has been set. Indian telecom sector has already achieved 100 million
lines. With over 100 million telephone connections and an annual turnover of Rs. 61,000 crores, our
present tele density is around 9.1%. The growth of Indian telecom network has been over 30%
consistently during last 5 years.

According to Wellenius and Stern (2001) information is regarded today as a fundamental factor of
production, alongside capital and labor. The information economy accounted for one-third to onehalf of gross domestic product (GDP) and of employment in Organization for Economic
Cooperation and Development (OECD) countries in the 1980s and is expected to reach 60 percent
for the European Community in the year 2000. Information also accounts for a substantial
proportion of GDP in the newly industrialized economies and the modern sectors of developing
countries.

Virat Bahri (2006) explains the viewpoint of Sam Pitroda the Chairman of Worldtel that identifies
opportunities for investments in telecommunications. He analyses that there is an increasing role for
telecom in e-governance in India. According to him, technology can be leveraged to take Indias
development to next level.

24

In the study of consumer behaviour, it is possible to conclude that perception is presented as one of
personal factors determines consumer behaviour. A personal factor is the closest environment of a
consumer, including everything that makes up the individual, his/her head and soul, which
characterised his personality. Using sensory receptors and influenced by external factors, the person
receives information, accepts and adapts it, forms his personal attitude, opinion, and motives that
influence behaviour. Perception within this context is one of the principal personal factors,
conditioning the nature of the consumer and his/her behaviour and other variables.

Analysing classifications proposed by marketing specialists, suggests that sensation, attention,

interpretation and retention are the dominating elements of the perceptual process (Branyte et al,
2007). Crane and Klarke (1994) posit the theory of perceptual filters, based on the idea that the
perceptual process is a set of filters, used for sorting and modifying a stimulus leading finally to
stored memory of consumers. Indeed consumer cannot perceive all the stimuli in the phase of
sensation; consumers do not react to every stimulus received in the attention phase lest they fail to
understand the proper meaning of a stimulus while interpreting it. Essentially, they do not remember
everything they have understood. The theory reflects the importance of evaluation and recognition
of the elements of the perceptual process, seeking to activate and affect the consumers perception.
Every phase makes the consumer feel differently as the intensity of his/her reactions and the
importance of external influence change. According to Chernatony and McDonald, (1998), the
challenge for marketers is to appreciate how all the marketing resources supporting a brand interact
to produce the benefits that consumers perceive as being unique to a specific brand. Consumers
interpret the meaning of the marketing activity behind a brand and project values onto the brand,
endowing brands with a personality. They developed a useful framework to help understand the
diverse types of brand-added value which includes; added values from experience; added values
from reference group effect; added values from a belief that the brand is effective; and, added values
from the appearance of the brand. Consumers form impressions of a brand from their packaging and
develop brand preferences based on their attraction to the package design.

25

Demographic variable is an importance determinant of customer behaviours. Study shows that

gender has significant moderating effect on perception, satisfaction- loyalty relationship. On this
note, social identity theory proposes that attitudes are moderated by demographic, situational,
environmental, and psychosocial factors (Haslam et al, 1993). According to the social psychological
theories, consumers evaluations are moderated, or in some cases mediated, by personal feelings of
equity in the exchange, disconfirmation between desires and outcomes, individual preferences,
social comparisons, and other complex phenomena. These theories strongly suggest that consumers
differences influence their attitudes. Women are affected by sales process while men are satisfied
with the impact of the product. That is, there is significant relationship and consistent differences in
the levels of perception among demographic groups. Kotler and Keller (2006) and Karjoluoto et al
(2005) report that demographic variables have an influence on the evaluation of different attributes
related to mobile phone choice. Specifically, gender and social class will impact on the evaluations
of the attributes as men belonging to higher social class seem to be more technology savvy. Decision
making mainly follows a rational decision making process in which different attributes are
evaluated, but also has some symbolic nature as brand was regarded as important among many study
participants.

Product choice also is greatly affected by occupation, economic circumstances,

spending income (level, stability and time pattern), savings and assets (including the percentage that
is liquid) debt, borrowing power, and attitude towards spending and saving (Kotler and Keller
2006). Personality and selfconcept are important determinants of buying behaviour. Kotler (2001)
defines personality as a set of distinguishing human psychological traits that lead to relatively
consistent and enduring responses to environmental stimuli.

Personality are characterised by such traits as selfconfidence, dominance autonomy difference,

sociability, defensiveness and adaptability. Consumers personality is very useful variable in
analysing consumer brand choices. This is because brands also have personalities, and consumers
are likely to choose brands whose personality matches their own. Brand personality is defined as the
specific mix of human traits that may be attributed to a particular brand (Kotler and Keller, 2006).
Aaker (1997) identifies the following as brand personality traits, sincerity, excitement, competence,
sophistication and Ruggedness. However, people from same subculture, social class and occupation
may lead quite different lifestyle. Lifestyle is a persons pattern of living in the world as expressed
in activities, interests and opinions. Marketers often search for relationships between their products
26

and lifestyle groups (Kotler and Keller, 2006). Factors that relate to the users surroundings and
interactions with other people in his/her personal network of family, friends, colleagues and other
important people also have important implications on consumers purchase.

This is based on the fact that an individuals decisions and behaviours are not made solely by
him/her, but rather are influenced by the opinions and recommendations of other important people.
As a person is part of a social network, he/she normally interacts with others in daily life and talks
and shares with others on what he/she sees, thinks and experiences (Pedersen, 2005). That is why,
for example, word of mouth is known as one of the most effective channels through which positive
and negative ideas and perceptions and spread in a social setting. Today, for every firm a critical
question for its success is that how it can maintain its current customers and how it can make them
loyal to the brands.

Loyal customers play important role in building businesses by making different moves like buying
more, by paying premium prices and most importantly providing companies different sets of new
customers by positive word of mouth (Aydin and Ozer, 2004). In fact telecommunication companies
lose their customer quite regularly. So its very challenging task for the mobile phone operators to
retain existing customers as well as bringing new customers towards their brands and creating
loyalty in them. It happens in almost every industry but especially in telecommunication services, it
is said that when customers are connected to a particular service provider or operator then their long
term relationship with the operator is of great importance for the success of the company in the
competitive market.

2.2 About the Topic

Mobile phone markets are one of the complete market atmospheres nowadays due to increased
competition and change. Thus, the growing concern requires marketers to strictly look at Customers
buying decision processes and demand focus on the factors such as Prices, Purchase intention,

27

Perceived intention, Perceived quality, Perceived sacrifice and Perceived value that subsequently
determine willingness to purchase between different mobile phones with an appropriate service.
In this competitive environment, to find out the customer satisfaction, customer preferences,
expectations and perception about the Airtel life time card out of all other Cellular service providers in
the market. The underlying problem in predicting customer choice resides much more in the fact that
purchase decisions are made on the basis of many different criteria. This problem is further confounded
in service applications where customers may consider intangible features and characteristics of the
market offerings and interactions between service providers and the consumers with an appropriate
service.
In this competitive environment, to find out the customer satisfaction, customer preferences,
expectations and perception about the Airtel life time card out of all other Cellular service providers in
the market.
Theories of Perception

On a straightforward view, we directly perceive the world as it is. The way that things look,
feel, smell, taste, and sound is the way that they are. We see colours, for example, because the world is
coloured. This view of perception is called, somewhat dismissively, naive realism.
Plausibly, perception is a lot more complicated than this.

Though things may appear to be coloured to us, our experiences of colour are merely
representative of the surface properties of objects; the physical property of reflecting certain
wavelengths of light and the colour red as we experience it are two quite different things.
This has led to representative realism, which suggests that perception is not the passive process that the
naive realist suggests, that we do not simply receive information about the world through our senses.

28

Rather, we are actively involved in perception, supplying much of the content of our
experiences, and must bear this in mind if we are to know what the world is really like in itself.
More extreme than either naive or representative realism is idealism. Idealists, persuaded by the
thought that we have direct access only to our experiences of the world, and not to the world itself,
have questioned whether there is anything beyond our experiences. A more recent theory that bears
some similarities to idealism has also been proposed: phenomenalism.

The underlying problem in predicting customer choice resides much more in the fact that
purchase decisions are made on the basis of many different criteria. This problem is further confounded
in service applications where customers may consider intangible features and characteristics of the
market offerings and interactions between service providers and the consumers.

Many philosophers, such as Jerry Fodor, write that the purpose of perception is knowledge, but
evolutionary psychologists hold that its primary purpose is to guide action. For example, they say,
depth perception seems to have evolved not to help us know the distances to other objects but rather to
help us move around in space. Evolutionary psychologists say that animals from fiddler crabs to
humans use eyesight for collision avoidance, suggesting that vision is basically for directing action, not
providing knowledge.

Building and maintaining sense organs is metabolically expensive, so these organs evolve only
when they improve an organism's fitness. More than half the brain is devoted to processing sensory
information, and the brain itself consumes roughly one-fourth of one's metabolic resources, so the
senses must provide exceptional benefits to fitness. Perception accurately mirrors the world; animals
get useful, accurate information through their senses.
Scientists who study perception and sensation have long understood the human senses as
adaptations. Depth perception consists of processing over half a dozen visual cues, each of which is
based on a regularity of the physical world. Vision evolved to respond to the narrow range of
electromagnetic energy that is plentiful and that does not pass through objects. Sound waves provide
29

useful information about the sources of and distances to objects, with larger animals making and
hearing lower-frequency sounds and smaller animals making and hearing higher-frequency
sounds. Taste and smell respond to chemicals in the environment that were significant for fitness in the
EEA.
The sense of touch is actually many senses, including pressure, heat, cold, tickle, and pain. Pain,
while unpleasant, is adaptive. An important adaptation for senses is range shifting, by which the
organism becomes temporarily more or less sensitive to sensation. For example, one's eyes
automatically adjust to dim or bright ambient light. Sensory abilities of different organisms often
coevolve, as is the case with the hearing of echo locating bats and that of the moths that have evolved
to respond to the sounds that the bats make.

Evolutionary psychologists claim that perception demonstrates the principle of modularity, with
specialized mechanisms handling particular perception tasks. For example, people with damage to a
particular part of the brain suffer from the specific defect of not being able to recognize faces
(prospagnosia). EP suggests that this indicates a so-called face-reading module.

Customer Perception
Consumers can evaluate a product along several levels. Its basic characteristics are inherent to
the generic version of the product and are defined as the fundamental advantages it can offer to a
customer. Generic products can be made distinct by adding value through extra features, such as quality
or performance enhancements.
The final level of consumer perception involves augmented properties, which offer less tangible
benefits, such as customer assistance, maintenance services, training, or appealing payment options. In
terms of competition with other products and companies, consumers greatly value these added benefits
when making a purchasing decision, making it important for manufacturers to understand the notion of
a total package when marketing to their customers.

30

Sensations can be defined as the passive process of bringing information from the outside world
into the body and to the brain. The process is passive in the sense that we do not have to be consciously
engaging in a "sensing" process. Perception can be defined as the active process of selecting,
organizing,

and

interpreting

the

information

brought

to

the

brain

by

the

senses.

For example, when manufacturing automotive parts, a high-performing product will provide the
customer base with basic benefits, while adding spare parts, technical assistance, and skill training will
offer enhanced properties to create a total package with increased appeal to consumers.
Perception is the process through which a person forms an opinion about the various stimuli he
receives from his sensory organs. In marketing, perception is concerned with understanding how the
consumer views a product or service. The five senses of a person help him in this process

To identify which cellular service they are using presently and try to convert them.
To identify the type of connection plan, that the consumers currently have. (Postpaid, Prepaid,

or Life time card)

To find out the communication channels most used by the consumers to know about Airtel.
To analyze consumer perception and expectation towards Airtel.
To analyze the Reason and Purpose behind using Airtel.
To find out the satisfaction level of customers towards Airtel.

Lacking and factor for dissatisfaction has been studied from the customers point of view.

Getting an opportunity to convince and interact with the customers.

Creating awareness and perception towards Airtel.
The limit of the study is only for the Telecommunication of Airtel.
The survey was taken from some people of Delhi city alone so the result may not be feasiblefor
other locations other than Delhi city. So, the findings only suitable for intention and perception
towards Airtel.

Today, for any organization or firm to survive in this competitive world depends on its ability to be
dynamic and be different from the competition to be unique in the industry. Customer Satisfaction
helps every organization to keep the existing customer and to build new customer.
This research is aimed at profiling the standard customer with an aim to increase the network and
improve company-customer relations. The information gathered through this research can be used by
31

the company to improve its services and became more customers friendly. This can increase the
goodwill of the company and its overall performance.
Perception
Our perception is an approximation of reality. Our brain attempts to make sense out of the
stimuli to which we are exposed. This works well, for example, when we see a friend three hundred
feet away at his or her correct height; however, our perception is sometimes offfor example,
certain shapes of ice cream containers look like they contain more than rectangular ones with the same
volume.

Factors in perception
Several sequential factors influence our perception.Exposure involves the extent to which we
encounter a stimulus. For example, we are exposed to numerous commercial messages while driving
on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and banners
placed at shopping malls that we pass. Most of this exposure is randomwe dont plan to seek it out.
However, if we are shopping for a car, we may deliberately seek out advertisements and tune in when
dealer advertisements come on the radio.
Exposure is not enough to significantly impact the individualat least not based on a single
trial (certain advertisements, or commercial exposures such as the Swoosh logo, are based on
extensive repetition rather than much conscious attention). In order for stimuli to be consciously
processed, attention is needed. Attention is actually a matter of degreeour attention may be quite
high when we read directions for getting an income tax refund, but low when commercials come on
during a television program. Note, however, that even when attention is low, it may be instantly
escalatedfor example, if an advertisement for a product in which we are interested comes on.
Interpretation involves making sense out of the stimulus. For example, when we see a red can, we may
categorize it as a Coke.
Webers Law suggests that consumers ability to detect changes in stimulus intensity appear to
be strongly related to the intensity of that stimulus to begin with. That is, if you hold an object
32

weighing one pound in your hand, you are likely to notice it when that weight is doubled to two
pounds. However, if you are holding twenty pounds, you are unlikely to detect the addition of one
pounda change that you easily detected when the initial weight was one pound. You may be able to
eliminate one ounce from a ten ounce container, but you cannot as easily get away with reducing a
three ounce container to two (instead, you must accomplish that gradually.
The wholly empirical approach holds that this experience is the sole determinant of perceptual
qualities. The reason percipients see an object as dark or light, the argument goes, is that in both our
own past and the past of the species it paid off to see it that particular way. Returning to the bucket
analogy, imagine that each of the three hoses pumps out water of a different color: one pumps out black
water, one pumps out gray water, and one pumps out clear water. All one sees is the water in the
bucket, which can be clear, gray, black, or any shade in between. As expected, it is impossible to
perform some calculation on the color of the water in the bucket to find out how much water came out
of each hose. Now imagine that it is your job to bet on how much water came out of the gray hose. The
output ratios of the hoses are not random, but co-vary in all kinds of complicated ways based on the
time of day, how long it takes to fill up the bucket, etc. At first your behavior in response to the color of
the bucket might not be so good, but over time this would gradually improve as different shades and
behaviors in response became associated by trial and error. The key is that in order to improve you have
to know whether or not your behaviors worked by interacting with the world.
Several factors influence the extent to which stimuli will be noticed. One obvious issue
is relevance. Consumers, when they have a choice, are also more likely to attend to pleasant stimuli
(but when the consumer cant escape, very unpleasant stimuli are also likely to get attentionthus,
many very irritating advertisements are remarkably effective). One of the most important factors,
however, is repetition. Consumers often do not give much attention to a stimuliparticularly a low
priority one such as an advertisementat any one time, but if it is seen over and over again, the
cumulative impact will be greater.
Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more
attention to something unknown that may require action. A greater contrast (difference between the
stimulus and its surroundings) as well as greater prominence (e.g., greater size, center placement) also
tend to increase likelihood of processing.

33

Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers in
a theater had been exposed to isolated frames with the words Drink Coca Cola and Eat Popcorn
imbedded into the movie. These frames went by so fast that people did not consciously notice them,
but it was reported that on nights with frames present, Coke and popcorn sales were significantly
higher than on days they were left off. This led Congress to ban the use of subliminal advertising.
First of all, there is a question as to whether this experiment ever took place or whether this information
was simply made up. Secondly, no one has been able to replicate these findings. There is research to
show that people will start to giggle with embarrassment when they are briefly exposed to dirty
words in an experimental machine. Here, again, the exposure is so brief that the subjects are not aware
of the actual words they saw, but it is evident that something has been recognized by the
embarrassment displayed.

34

Chapter 3
Research Methodology

35

36

Research as a scientific and systematic search for pertinent information on a specific topic. Research
Methodology is a way to systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. In it we study the various steps that are generally adopted by a
researcher to know not only the research methods or techniques but also the methodology. We not only talk
of the research methods but also consider the logic behind the methods we use in the context of our research
study and explain why we are using a particular method or evaluated either by the researcher himself or by
others.

3.1 Purpose of the study

The purpose is to check out the consumer preference towards Airtel and its services and what are
their requirements and why a problem costumer faces.

3.2 Research Objective of the study

The objective of the study is to check out the preference of consumer towards Airtel and study the
requirements of consumer and their grievances towards the company. The secondary objective of the study.

To study Advertising Strategy of Airtel Cellular Service: Ads are an internal part of every
company and company has to know how and when to use it.

Its effect on existing mobile users: The cellular services market in India grew during the late
1990 and is increasing. Airtel has to launch services in the market.

3.3 Research methodology of the study

Research methodology is done to solve the research problems involving a study of various steps that
are adopted by the researcher in studying his problem.
Throughout the entire project the emphasis was to check the awareness level of the customers
towards the different services of Airtel and there views and perception about the same.
Finally the project was concluded by taking the feedback from the customers.

37

3.3.1 Research Design

The project is more of a qualitative than quantitative study. The project aims at the perception of consumers
regarding the consumers.
Explorative Research: Explorative Research includes surveys and fact-finding enquiries of different kinds.
The major purpose of description of the state of affairs it exists at present. In social science and business
research we quite often use the term expost factor research for descriptive research studies. A Main
characteristic of this method is that the researcher has no control over the variables; he can only report what
has happened or what is happening.
3.3.2 DATA COLLECTION METHOD

THERE TWO TYPE OF METHOD OF DATA COLLECTION.

o PRIMARY DATA
o SECONDARY DATA

DATA USED FOR THE RESEARCH WORK WAS PRIMARY

Primary Data: The primary source of data collection is through questionnaire. The questionnaires
are distributed among 35 peoples and the there view is recorded and used in analyzing the data
Secondary sources. Primary source is a term used in a number of disciplines to describe source
material that is closest to the person, information, period, or idea being studied. In the study of
history as an academic discipline, a primary source (also called original source or evidence) is an
artifact, a document, a recording, or other source of information that was created at the time under
study. If created by a human source, then a source with direct personal knowledge of the events
being described. It serves as an original source of information about the topic. Similar definitions
are used in library science, and other areas of scholarship. In journalism, a primary source can be a
person with direct knowledge of a situation, or a document created by such a person.Primary
sources are distinguished from secondary sources, which cite, comment on, or build upon primary
sources, though the distinction is not a sharp one. "Primary" and "secondary" are relative terms, with
sources judged primary or secondary according to specific historical contexts and what is being
studied.
38

Secondary Data :
Secondary sources include online sites (www.Google.Co.in, www.Airtel.com), newspapers (Times
of India) and templates from AIRTEL distributions centers and AIRTEL Customer Care. In
scholarship, a secondary source is a document or recording that relates or discusses information
originally presented elsewhere. Secondary source contrasts with a primary source, which is an
original source of the information being discussed; a primary source can be a person with direct
knowledge of a situation, or a document created by such a person. Secondary sources involve
generalization, analysis, synthesis, interpretation, or evaluation of the original information. Primary
and secondary are relative terms, and some sources may be classified as primary or secondary,
depending on how it is used. An even higher level, the tertiary source, resembles a secondary source
in that it contains analysis, but attempts to provide a broad overview of a topic that is accessible to
newcomers.

3.3.3 Sample designing

Target population:- The Target population under this survey are the consumers of mobile network
providers.
The target population is limited to the central Delhi.
SAMPLE SIZE : - The sample size included 30 related people in various different location.
Search process was done by interacting with number of customers during the activities performed,
which included, markets, cold calling, canopies, etc. Sample design consist of CONVIENCE SAMPLING.

3.4 Method of data collection

Instrument of Data collection
Data Collection is an important aspect of any type of research study. Inaccurate data collection
can impact the results of a study and ultimately lead to invalid results. For the above objectives,
quantitative methods were used. Interviews were studied for the employees and structured
Questionnaires were given to them. Then the data was analyzed and interpreted in the form of
tabulation and charts.

39

There are two types of data collection methods used:

1. Primary data collection
2. Secondary data collection
Primary data collection methodPrimary data is the data in which the researcher collects data through various methods like
interviews, surveys, questionnaires etc., to support the secondary data.
Primary data collected in this project is using the interview and questionnaire.
Secondary data collection methodSecondary data is data collected by someone other than the user. Common sources of secondary
data for surveys, organizational records and data collected through qualitative methodologies or
qualitative research.
Secondary data used in this project is records of Human Resource Department for the service
file of the separating staffs, various HR Journals, projects and research papers of different scholars both
national and international.
3.3.3 Drafting of a questionnaire
A questionnaire consisting of 18 questions was prepared which consisted of questions like the
working of various welfare committees of the organization and the development systems, canteen and
rest room facilities etc. So, keeping in view all the aspects of research and it consisted of following
types of questions

Close ended Questions- A closed-ended question is a question format that limits respondents
with a list of answer choices from which they must choose to answer the question. Commonly
these type of questions are in the form of multiple choices, either with one answer or with
check-all-that-apply, but also can be in scale format, where respondent should decide to rate the
situation in along the scale continuum, similar to Likert questions.
Types of closed ended questions used1. Dichotomous Questions- Fixed-alternative question that can only be answered in one
of the two indicated ways, such as 'A' or 'B', True or False, Yes or No.
2.

Multiple Choice Questions- Multiple choice is a form of assessment in which

respondents are asked to select the best possible answer (or answers) out of the choices
from a list. The multiple choice format is most frequently used in educational testing,
40

in market research, and in elections, when a person chooses between multiple

candidates, parties, or policies. Multiple choice testing is particularly popular in the
United States. If guessing an answer, there's usually a 25 % chance of getting it correct
on a 4 answer choice question.

3.5 Limitations
The project has been successfully completed with certain inherent limitations, which are as follows:

This Project report is based on the secondary sources for data collection and no Primary data has
been used, due to which there is lack of practical knowledge.

Time and work constraints were also there.

Limited information & Respondents unavailability.

Time pressure and fatigue on the part of respondents and interviewer.

Courtesy bias& the behavior of the customer while approaching them to fill the questionnaire was
unpredictable.

Lack of customers cooperation was a major constraint.

Majority of the customer were too aggressive in nature.

41

Chapter 4
Analysis & Interpretation

42

AGE GROUP
Age Group (in years)

Users

15-21

19

Table

21-28

16

4.1

28-35

Column1
9
8
7
6
5
4
3
2
1
0

8.2
3.2
15-21

1.4
21-28
Chart 4.1

Interpretation:

43

28-35

As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who
are the maximum users of mobile phones. This segment is the one which give maximum business to the mobile
operators. This segment constitutes the young executives and other office going people. They are 65% of the
total people who were interviewed. The next age group are the people who are 28-35 years old. They are 20%
of the total. They are those who are at home or have small business units etc. And the next age group is the
youngest generation who are 15-21 years old. They are school and college going students and carry mobile
phones to flaunt. They are 15% of the total interviewed people.

Occupation
What is your occupation?
1. Student

2. Household

4.Other

Occupation

Users

Student

20

Executive

Household

15

Other

10

Student
Others
120
100
80
60
40
20
0

3. Executive

Executives

Households

10
20
55
15
Table

4.2

44

Chart 4.2
Interpretation
Above graph shows that 55% of the total people interviewed are working. So, these people are the ones
who are the maximum users of mobile phones. They are the young executives, managers etc. who require
mobile for their official purposes. The next category is the households 20 %, who are either housewife, small
units which operate from their homes etc. The next segment is the students. They are 15%of the whole. And
10% of the whole is categories who are the professionals.

45

Customer Service at Airtel Graph

What is your satisfaction level with Airtel?
1. Fully

2.Partially

3.Distassified

4.Fully distasisfied

Table 4.3
Satisfied

Users

Satisfied

10

Fully Satisfied

20

Dissatisfied

10

Partially

10

25
20

20
15
Satisfied
10

10

Fully satisfied

Dissatified
10
10

Partially

5
0
Chart 4.3
Interpretation
As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people are
dissatisfied with the customer services provided by Airtel. They are the ones who have the maximum share
in the market but they are lagging behind in the customer services. This could leave an impact on the mind
of the consumer

Features convinced to use Airtel

46

Which feature of AIRTEL convinced you to use Airtel

1. Advertisements

2.Connectivity

3.Schemes

4.Goodwill

Convincing Factor
Advertisement
Scheme
Connectivity
Goodwill

Advertisement
Goodwill

Users
10
5
18
7

Scheme

20

Connectivity

18

15
10

10

0
Chart 4.4
Interpretation

The above data shows that the connectivity of the Airtel is its backbone and it is the main
reason that the consumers are using it and the network is still is in usage and goodwill of the
company is at risk and falling at a huge rate.

Usage of Airtel
Which service do you use of Airtel
47

 Mobile service
Internet
DTH
Other
Usage
DTH
Internet
Mobile Service
Others

Users
5
25
5
10

Sales
30
25
20
15

25

10
5
0

5
Mobile service

5
Internet

DTH

10
Others

Interpretation
It can be seen from the data represented above that most the customers use Airtel because of its Mobile
services rather than any other requirement as it provides them the best service in Airtel in the service
Department.

Monthly expense graph

How much is your monthly expenses?

500 1,000

1,000 2,000
48

2,000 & above

Expenses

Users

500-1000

15

1000-2000

20

2000 & Above

Expenses
25
20
15
10

20
15

5
5
0

500-1000

1000-2000

2000 & Above

Interpretation
People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this
amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12%
had an expense more than RS 1000, they could the ones having sim connections or having cash cards and
having a lot of business calls on their mobiles.

Influencer
What makes Airtel different from others?
1. Connectivity

2. Tariff plans

3. New schemes

49

4. Other.

Factors
Connectivity
New schemes
Tariff plans
Other

Users
15
10
10
5

Influence
16
14
12
10
8

15

10

10
5

2
0

connectivity

Tariff

Scheme

others

Interpretation
The above figure shows that connectivity is the favored influencer of Airtel and it persuades consumer to
use the network and later on tariff and schemes play there role in the company.

Celebrity Factor
Which celebrity you like very much in AIRTEL

Sachin Tendulkar

Shahrukh khan

Kareena Kapoor

A.R. Rehman
50

Celebrities
Shahrukh Khan
Kareena Kapoor
A.R. Rehman
Sachin Tendulkar

14
12
10
8
6
4
2
0

Users
12
4
4
12
8

12

12
4

Influence
4

Interpretation
The main celebrity that is responsible for the success of the Network is Shahrukh khan then Sachin
Tendulkar and behind him is A.R. Rehman and Kareena Kapoor comes in the last. These celebrity did their
best to promote it but the network was hugely favored by the above data.

Users
What type of Airtel service you use?
Postpaid
Prepaid

51

25

22

20

18

15
10
5
0

Prepaid

Postpaid

Card

Users

Prepaid

22

Postpaid

10

Interpretation
The above data shows that earlier prepaid was the favorite of consumers but with the flow of time the time
this preference has shifted towards the postpaid side and now they are in demand as earlier only network
was used for calls only and now it provides number of facilities like internet etc.

Service Provider Graph

Which was your first choice of cellular service when you want to use mobile phone?
1.AIRTEL

2.VODAFONE

3.IDEA

Networks
Vodafone
Idea
Airtel

4.RELIANCE

5.OTHERS
Users
5
7
15

52

Reliance
Others

3
10

16
14
12
10
8

15

10

4
2
0

Vodafone

Idea

Airtel

Reliance

Others

Interpretation
The above graph shows a slice of 40%. These are the total no. of people who are using Airtel. It seems that
people are more aware of Airtel than any other brand. The next popular brand is Hutch. 305 of the people
interviewed had Hutch connections. The next popular brand was Idea. 15% people had Idea connections. As
it came very late in the market when Airtel had established it self very well.

AIRTEL is No.1 in India

Opinion

Users

Yes

27

No

13

53

30
25
20
15

27

10
13

5
0

Yes

No

Interpretation
The above graph shows the result of the survey that how many people think Airtel is best in its services.
According to the survey done, 67% of the people think that Airtel is the best which provides better
telecommunication services and only 37% of the people thinks vice-versa. .

54

Advertisement
Type of advertisement you most like in AIRTEL

Audio Visual

Print

Audio
Advertisement
Audio
Audio Visual
Print

Users
15
15
10

Advertisement
16
14
12
10
8

15

15

10

4
2
0

Audio Visual

Print

Audio

Interpretation
It can be seen from the above data that audio visual advertisements are still the best mode of reaching the
consumers and influence them.

55

Chapter 5
Findings & Suggestions

5.1 Findings
56

 Airtel is a very successful brand in India as it covers a wide network and is still one of the best still
in network coverage and stands one of the best network in the world and has covers major of the
population coverage.

There is still scope of improvement as some of the rural and remote areas are not till covered by any
service provider and the company is shifting its focus towards them as well to reach a wide area and
generate loyal customers.

Business houses are the major users of Airtel as it is better than all other networks in broadband
coverage and plans are better than any.

Airtel focuses on its customers satisfaction but it can provide some more relaxation to its users and
provide some more incentives for its dealers so that they can be more loyal towards the company
and market it better.

Company is undertaking extensive promotional activities like advertisements released in different

Medias to create brand awareness in target pulling areas like campuses etc. Free samples should be
distributed among the prospects like free recharge or sims & sales promotion tools like gifts,
contests and coupons must be given to retailers as well as customers and prospects. Catalogues
should be distributed among customers.

The company is focusing more on the Youth & the untapped areas of the country like rural areas to
hold a strong position in the country and prosper further.

57

Company has shifted to its concern to one of the most influential target market i.e. YOUTH as
population concern more on the youth as they consist majority of the population in the country and
are most spenders in todays age.

Airtel provides value added packs for its heavy users as to retain them as postpaid connections are
on the rise as compared to prepaid.

It is used mainly for its mobile network coverage across the globe as it covers a huge area so its
connectivity is high and the goodwill factor comes into play.

5. 2 SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the
products concerned.

Modification must be brought about in AIRTEL, in terms of quality. Its demand should be increased
and provides its consumer with value added services as to retain them.

In todays age the brand must focus on other areas to market it like Malls, theatre and crowed area to
get attention and market it and gather audience interest.

Most of the respondents are satisfies with the services provided by Airtel to mobile user steps to be
taken to make customers more satisfied but many are still not aware of phone plus facility and steps
are to be taken to popularize it.

Many of the respondents are not satisfied with the features provided to prepaid users as compared to
Landline users.
58

Chapter 6
Conclusion

59

Airtel is a very successful brand in India & providing customer satisfaction is to be there main
motive. Provides Internet access on the move as people are more dependent on it in their daily lives like
wide network and good 3G 4G services. Airtel possesses congestion free & wide network, unique value
added & customer services.
Providing customer satisfaction is the most crucial step of the company as they are to be satisfied and
provides Internet access on the move such as Wide network and good 3G services as they are important and
technology advanced stuff required by almost everybody in todays environment,
Airtel is a home brand and a very successful brand in India and overseas and one of the most
successful brands still to date. It possesses congestion free & wide network, unique value added & customer
services to cover one of the widest areas.
From the details it can be concluded that 70% of Airtel users preferred to remain with Airtel. Also
good number of users who were willing to switch from their respective subscribers showed interest in
Airtel. Hence, these statistics imply a bright future for the company. Also the company is used mainly by
executives who want wide coverage for their operations but the problem of customer satisfaction still
persists with the company and cause of its lacking new customers.
Connectivity is the backbone of the company and it is still the reason why consumers use it and the
most users of the company fall in the youth category and are now using postpaid services as they are aware
of the services provided as the youth is the main target of major of companies as the country mainly
comprises of them.

60

QUESTIONNAIRE
Name:
Address:
Occupation:
1. Do you think that Airtel tariff plans are better than others?

Yes
No
2. Which service do you use of Airtel?

Mobile service
Internet
DTH
Other
3. Which was your first choice of cellular service when you want to use mobile phone?

AIRTEL
HUTCH
IDEA
RELIANCE
61

 TATA INDICOM
OTHERS

62

4. How did you know about AIRTEL cellular service?

Friends
Advertisements
Relatives
Other Sources
5. Which feature of AIRTEL convinced you to use AIRTEL?

Advertisements
Connectivity
Schemes
Goodwill
6. Which feature of AIRTEL is better than your previous cellular service?

Advertisements
Connectivity
Schemes
7. What is your age?

15-21 years
21-28 years
28-35 years
8. Which type of advertisement you most like in AIRTEL?

Audio Visual
Print
Audio
63

 Digital
9. Which celebrity you like very much in AIRTEL?

Sachin Tendulkar
Shahrukh khan
Kareena kapoor
A.R. Rehman
4G Girl
10. Are you an Airtel customer?

Yes
No
11. What type of Airtel service you use?

Postpaid
Prepaid
12. How did you come to know about Airtel?

Friend
Dealer
Advertisement
Other
13. What makes Airtel different from others?

Connectivity
Tariff plans
New schemes
64

 Other

14. What is your satisfaction level with Airtel?

Fully
Partially
Distassified
Fully distassisfied
15. How much is your monthly expenses?

500 - 1000
1000 2000
2000 & above

65

66

Bibliography
In this project report, while finalizing and for analyzing quality problem in details the following Books,
Magazines/Journals and Web Sites have been referred. All the material detailed below provides
effective help and a guiding layout while designing this text report.

Books :

Kothari. C.R (2004): Research Methodology Methods & Techniques, New Age International
Publishers, New Delhi, 2nd Edition.

Richard I. Levin, David S. Rubin (2004): Statistics for Management, Prentice Hall of India
Private Limited, New Delhi, 7th Edition.

Principles of Marketing Philip Kotler & Kevin keller edition 12

Market Research D.D. Sharma

Research Methodology C.R. Kothari

Websites:

www.Airtelworld.com

www.google.com

www.info-matic.com

http://en.wikipedia.org/wiki/Bharti_Airtel

http://www.slideshare.net/muskan19/airtel-brand-analysis

http://www.airtel.in/

http://www.slideshare.net/dpdas3/bharti-airtel

67

http://www.authorstream.com

http://www.moneycontrol.com/competition/bhartiairtel/comparison/BA08

http://wirelesstelecom.wordpress.com/2013/11/11/swot-analysis-of-indias-largest-

mobile-

telecom-operator-bharti-airtel/

http://www.ukessays.com/essays/marketing/history-about-the-generic-strategiesessay.php

http://www.themediaant.com/airteladvertising

http://mythbhagat.blogspot.in/2009/04/successful-sales-and-distribution.html

68

marketing-