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Chapter-1

INTRODUCTION
1.1 INTRODUCTION

Bharti Tele-Ventures is one of India's leading private sector providers of telecommunications services
based on an aggregate of 28,692627 customers as on September 30, 2006, consisting of 27,061,349
GSM mobile and 1,631,278 broadband & telephone customers

The businesses at Bharti Tele-Ventures have been structured into three individual strategic 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.

Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications
with its world class products and services. Established in 1976, Bharti has been a pioneering force in
the telecom sector with many firsts and innovations to its credit.

Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently
introduced National Long Distance. Bharti also manufactures and exports telephone terminals and
cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also
the first company to export its products to the USA.

Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It
has over 12 million satisfied customers

Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of
business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest
manufacturer and exporter of world class telecom terminals under its 'Beetel' brand, Bharti has created
a significant position for itself in the global telecommunications sector. Bharti Tele-Ventures is today
acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12
million customers across the length and breadth of India.

While a joint venture with TeleTech Inc., USA marked Bhartis successful foray into the Customer
Management Services business, Bharti Enterprises dynamic diversification has continued with the
company venturing into telecom software development. Recently, Bharti has successfully launched an
international venture with EL Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri
products exclusively to markets in Europe and USA

"What other operators have achieved in one to two years, Bharti has done in just over a month. In July
2002, one out of every two people buying a mobile across India chose AirTel. We are truly proud to be
spearheading the mobile revolution in the country."

- Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures in 2002


1.2 COMPANY PROFILE

1.21 History:

Bharti Airtel founded with a modest capital, in the year 1976. It is India's leading
provider of telecommunications services. The company has 27 million customers across
India. It is a part of Bharti Enterprises. The only operator to provide mobile services in
all 23 business regions, or circles, in India, the company also provides telephone services
and Internet access over DSL in 15 circles, complementing its national and international
long distance telephone services with mobile and broadband services. From the humble
beginnings in the Indian telecom industry in 1986; Airtel has its roots in Bharti Telecom
Limited. Founded in 1986 by Sunil Bharti Mittal, the company was the first in India to
offer push button telephones, when the rest of the country was still using rotary
phones. The first partnership they had was with Siemens AG of Germany, and they
started making push-button landlines in India rather than importing it from Taiwan, as
it used to be before.

The company then went on to launch various telecom technologies to the Indian market
and had innovation at its heart. Going on to acquire license to build a cellular network
in Delhi, Bharti Telecom Limited laid the ground work for the mobile operations of the
company in the year 1992. It began operations in Delhi in the year 1995 as Bharti Tele -
Ventures. The service was extended to various other states by various acquisitions and
partnerships.

Founder

This company is the brainchild of Sunil Mittal, who has worked hard for his company
from when he assembled landline phones to his puschase of a cellular network in India
when it was just a fldgeling concept, to making it a household name within a span of a
mere 20 years

Sunil Bharti Mittal is the chairman and group managing director of Bharti Tele-Ventures. He is a
graduate of Punjab University and completed the owner/president management program at Harvard
Business School in 1999.

Bharti Airtel provides telecommunication services primarily to corporate, and small


and medium scale enterprises in India. It offers global system for mobile communication
(GSM) services, broadband and telephone services, national and international long
distance services, and enterprise services. The company's mobile communication
services include information services, short message, and prepaid and post paid services,
as well as wireless application protocol-enabled Internet access and roaming services.
Its telephone services include telephone services, dial-up services, special phone plus
services, unified messaging, and audio conference services; and broadband services
comprise integrated services digital network, leased line, virtual private networks, and
wireless fidelity networks. The company also offers long-distance voice and data
communication services, as well as enterprise services, such as voice services, mobile
services, satellite services, managed data and Internet services, and managed e-business
services.

VISION & PROMISE

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

ORGANISATION CHART
1.3 LITERATURE REVIEW

Introduction:

Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products


perceived performance (or outcome) in relation to his or her expectations.

Many companies are aiming for high satisfaction because customers who are just satisfied still find it
easy suits when better offer comes along. Those who are highly satisfied are much less ready to switch
high satisfaction or delight credits an emotional dignity with the brand, not just a relational preference.
The result is high customer loyalty. Their expectations are influenced by their past buying experience,
friends and associated advice, marketers, competitors information and promises. If marketers raise
expectations too high, the buyer is to be disappointed.

Definition:

Satisfaction is a function of perceived performance and expectations. If the performance falls short of
the expectations the customer is satisfied. If the performance matches the expectations the customer is
satisfied. If the performance exceeds expectations the customer is highly satisfied or delighted.

Cautions in measuring customer satisfaction:

When customer rates their satisfaction with an element of the companys performance, the delivery
company needs to recognize that how the customer defines the good delivery. This could mean an early
delivery, on time delivery, order completeness and so on. Yet the company had to spell out every element
in detail, customer would face a huge questionnaire. The company must also realize that two customers
can report being highly satisfied for different reason.

Companies should also know that mangers and sales people can manipulate their ratings on
customer satisfaction. They can be especially nice to customers just before the survey. Another danger is
company will go out of the way to please to customer; some customers may express high satisfaction
classification (even satisfied) in order to receive more concessions.
Delivering customer value and satisfaction value chain:

The value chain as a tool for identifying ways to create more customer value, every firm has a
collection of activities that are performed to design, produce market deliver and support it products. The
value chain identifies nine strategically relevant activities. This nine value creating activity consists of
five primary activities and four support activities.

The primary activities represent the sequence of bringing materials into the business. Converting them
into final products, shipping out final products, marketing them and providing service. The support
activities procurement, technology development, human resource management and firm infrastructure.

Value delivering network:

To be successful the firms also need to look for competitive advantage beyond its own operations,
into the value chain of its suppliers, distributors and customers. Many companies today have partnered
with specific suppliers and distributors to create a superior value delivery network

Attracting and retaining customers:

In addition to attracting the new customers and retaining the existing customers many companies are
intent on developing stronger bonds and loyalty in the supply chain
1.4 Marketing Strategies

In 2004, Airtel went ballistic with glitzy ideas. The collaboration with world famous
music composer A R Rahman brought about their theme song which was an instant hit
among subscribers. The tune went on to make a unique place in Airtels history. The
company rebranded itself in 2010 with a new logo and a new theme song to establish
global identity. Today, company offers various products such as 2G, 3G and 4G wireless
services, High Speed Internet, Fixed line telephony and DTH services. In a span of 19
years, the company went from offering mobile telephony services in one city in India to
expanding its operations in over 20 countries.Being 4 th largest mobile operator in the
world with a subscriber base of over 250 million, the story of Airtels success will
forever motivate those who dare to dream.

1.5 Global Expansion


Airtel operates in India, Sri Lanka, Bangladesh, a few countries in African continent and
the Channel Islands. They are one of the largest mobile operator network in the world
in terms of subcribers, and has a commercial presense in over 20 countries.

Its area of operations include:

The Indian Subcontinent:


Airtel India, in India
Airtel Sri Lanka, in Sri Lanka
Airtel Bangladesh, in Bangladesh
Airtel Africa, which operates in 17 African countries:
Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles,
Sierra Leone, Tanzania, Uganda and Zambia.
The British Crown Dependency islands of Jersey and Guernsey, under the brand
name Airtel-Vodafone, through an agreement with Vodafone.
CHAPTER-2

THEORETICAL PROSPECTIVES
2.1 Meaning of Customer Satisfaction

Customer Support function for an e-commerce website is one of the most important touch-points
for the business in terms of building trust, customer acquisition and maintaining customer
loyalty. Flipkarts Customer Support team consists of call-centre agents who handle in-bound
and out-bound calls and also a team that handles e-mail queries. The entire team is based out of
Bangalore and forms a core part of Flipkarts 6,000strong employee base. Given that Flipkart
tries to differentiate itself on superior shopping experience and customer service is an integral
part of that Flipkart prefers to train its own support staff rather than outsourcing the function
to a BPO agency. At present, a customer calls due to one of the below reasons:

One of the major reasons for these calls is Indian consumers poor familiarity with online
shopping protocols. It is important to note that Flipkart tries to ensure that any order is placed
within 6 clicks on the website. There is also an outbound call-centre that performs the following
tasks:

Pro-actively inform customers about any delay in deliveries.

Pro-actively check the status of refunds or returns.

Inform the user in case any delivery has not been successful due to the customer not being
present at his address.

Despite all the good intentions of Flipkart in providing high-quality customer service, there are
several internet blogs that suggest that their service quality has dipped in the last year or so.A
major reason for this could be the growth in number of customer service executives not keeping
pace with the increase in business volume. There could also be a problem of increased complexity
in query handling due to increase in number of SKUs and product categories that would demand
more rigorous training for the support staff. Returns Processing If follows a 30 day return policy.
This policy which is primarily aimed to build trust with the consumers, has led to many customers
duping Flipkart. For example there have been several incidents when a customer buys a book
only to read it and then return it within 30 days. Similar incidents have been observed with mobile
phones as well. Flipkart, through its data management systems, has tried to identify such frauds.
Return of a product to Flipkart can happen if the 3rd party cannot deliver to the address or the
customer does not accept the product. Some orders are cancelled while the delivery is being
processes by the courier company. Such orders are not recalled but delivered to the address and
then cancelled. Customers can call the customer support and courier back the product to
Flipkart. The delivery cost is borne by Flipkart. When a customer requests return of a product,
there are 3 paths this request can take: 1. Replacement: Flipkart returns the product to the
supplier and obtains a replacement that is delivered to the customer. 2. Store credit: If the
customer is not satisfied with the product, he or she is given store credit of the same amount. 3.
Actual cashback: Given out as cash for cash-on-delivery payment or refunded for online
payment.

2.2 The Importance of Customer Satisfaction

Sometimes companies are misguided by the notion that customers depend on them. The truth of
the matter is that we very much so depend on them. Many researchers and academia have
highlighted the importance of customers in todays market.

The level of satisfaction a customer has with a company has profound effects. Studies have found
that the level of customers satisfaction has a positive effect on profitability:

A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat
satisfied customer.

A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied


customer.

A totally dissatisfied customer decreases revenue at a rate equal to 18 times what a totally
satisfied customer contributes to a company.
Research has shown that when a person is satisfied with a company or service they are likely to
share their experience with other people to the order of perhaps five or six people. However,
dissatisfied customers are likely to tell another ten people of their unfortunate experience.

However, merely focusing solely on customer satisfaction has its drawbacks in the marketplace
as well. For those companies that focus only on customer satisfaction run a real risk a failing to
differentiate their brand from others. In order to achieve long-term sustainability companies
must seek to establish ties of loyalty with consumers that are strong enough to ward off the
advances of competitors. Creating loyalty among customers can help the company to increase
purchases of existing products, charge premium prices for appreciation of your added-value
services, and create positive word-of-mouth promotion for your company, which is the core
marketing objective for companies. Customer loyalty is much harder to obtain than satisfaction.
Even though customers are satisfied with the company there are several factors that could cause
the customer to defect to the competition, such as finding a better value or the competitor is more
convenient. With that said, having high levels of customer satisfaction does not always lead to
customer loyalty. However, a company cannot achieve customer loyalty without having customer
satisfaction.

Thus, though customer satisfaction does not guarantee the repurchase from a company but it
does play a very important role in achieving customer loyalty. Conducting customer satisfaction
research will provide your company with the necessary insight it needs to make informed
decisions in order to retain and increase your customer base and improve customer relationships.