ON BHARTI AIRTEL
“STUDY ON BRAND
POSITIONING OF AIRTEL”
ONE BY
PRASAD PHAL
1
ACKNWOLEDGEMENT
The project comes directly from my heart with sincere dedication, devotion and
efforts. I would also like to express my deepest gratitude towards those whose
help and contribution cannot be appraised.
I also take the opportunity to thank Mr. Mithun Bhonsle, Area Manager,
BHARTI AIRTEL, Goa unit, without whose help and guidance I would not have
I would also like to express my sincere gratitude to our faculty guide who
project.
I would also like thank all the Managers, Executives, Supervisors, and
2
DECLARATION
I hereby declare that this integrated live project entitled “BHARTI AIRTEL” is
my work, carried out under the guidance of my faculty and my company guide
Mr.Anoop Das. This live project report neither full nor in part has ever been
submitted for award of any degree of either this college or any other college.
3
CERTIFICATE
“Certified that this project report is a record of work done by the candidate
himself during the period of study under faculty Guidance and that to the best
of my knowledge it has not previously formed the basis of the award of any
__________________
(Faculty guide)
4
INDEX
1 INDUSTRY PROFILE 6
2 COMPANY PROFILE 7
3 OBJECTIVE 9
4 LIMITATION 10
8 26
CHP-4) LEGAL ENVIRONMENT
11 CONCLUSION 49
12 BIBLOGRAPHY 51
13 ANNEXURE 52
14 ABBRIVIATION 53
5
INDUSTRY PROFILE
Telecommunications industry in India
Also new players like Vodafone, one of the leading telecom companies in the
world have entered the Indian telecom market.
6
COMPANY PROFILE
BHARTI AIRTEL LTD– An Overview
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group, has a diverse business portfolio and has created global brands
in the telecommunication sector. Bharti has recently forayed into retail
business as Bharti Retail Pvt. Ltd.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the
first private telecom services provider with a footprint in all the 23 telecom
circles. Bharti Airtel since its inception has been at the forefront of technology
and has steered the course of the telecom sector in the country with its world
class products and services.
The businesses at Bharti Airtel have been structured into three individual
strategic business units (SBU’s) - mobile services, telemedia services (ATS) &
enterprise services. The mobile services group provides GSM mobile services
across India in 23 telecom circles, while the ATS business group provides
broadband & telephone services in 94 cities. The enterprise services group
has two sub-units - carriers (long distance services) and services to
corporates. All these services are provided under the Airtel brand.
7
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 mobile business provides mobile & fixed wireless services using GSM
technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities.
Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under
a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh
agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management The company’s 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.
8
OBJECTIVE
9
LIMITATIONS
10
CASH MANAGEMENT
Cash, the most liquid asset and also referred to as the life blood of a business
enterprise is of vital importance to the daily operation of business firms. Its
efficient management is crucial to the solvency of business because cash is
the focal point of the fund flows in a business.
There are two ways of viewing the term ‘cash’. It includes actual cash in the
form of notes and coins and bank drafts held by a firm and the deposits
withdraw able on demand. It also includes marketable securities which can be
easily sold or converted into cash.
Cash in hand or at bank is the most liquid of all the current assets. Thus larger
cash and bank balances indicate high liquidity position of a company. Why do
companies hold cash? This is an important question to deal with. Different
reason for holding cash are given as
Transaction Motive: Airtel has post paid and prepaid connection. If the
customers uses post paid connection then sum amount is charged as service
charges to the customer by the company but when the bill is given to the
customer then there is always a chances that the customer don’t pay the bill
which some time incurs loss to the company, entering into transactions with
other entities. Transaction means either buying or selling of different products.
While some of these transactions may not result in immediate inflow/outflow of
cash (example credit purchases and sales), while other transactions cause
11
immediate cash inflow and outflows. Therefore this company always keeps a
certain amount as cash to deal with routine transactions where immediate
payment is required.
12
Cash Forecasting and Budget: it is very important for Bharati Airtel to carry
out proper forecasting for future cash requirements which may be because of
different costs associated with the business proceedings, The stocks are
required to meet the customer requirements as when demanded. Short-term
forecasting is prepared under the receipt and payment method, showing the
time and magnitude of expected cash payments and receipts.
Preparing Cash Reports: cash budgets are nothing but short-term cash
forecasts. Sometimes the cash inflows and outflows of Bharti Airtel company
remains stable it doesn’t fluctuate. In such cases the monthly report is
produced, while sometimes the cash inflows/outflows fluctuate. In such cases
the weekly or even daily reports are also produced.
13
improving the process of collecting and depositing cheques/cash from
customers. This done by careful monitoring the process.
Insurance Control:
Some attention should be given towards the protection of the company’s
assets. So the insurance component is very important for the company.
Therefore the company deploys some of its funds (required cash) into
insurance policies.
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PERFORMANCE APPRAISAL
Performance appraisal, also known as employee appraisal, is a method
by which the performance of an employee is evaluated (generally in terms
of quality, quantity, cost and time). Performance appraisal is a part of
career development.
The most popular methods that are being used as performance appraisal
process are:
15
The following is the performance form:
SECTION A
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ATTRIBUTES NI S G VG E NA
Cooperation
Judgment
Attendance
17
tasks and priorities , Handles tasks in an organized and
efficient manner , Able to handle multiple tasks
simultaneously & makes effective use of time.
Communication
Integrity
Dependability
Interpersonal relationships
18
Maintains a positive work relationship / attitude with
colleagues and management , Listens effectively, Is a team
player, Participates with others to accomplish tasks,
Accepts constructive criticism positively
Productivity
Flexibility
Supervisory ability
Overall Rating
19
SECTION B
• Are there any problems outside your control which have reduced
your ability to do your job?
• Are there any other aspects not noted elsewhere or any other issues
outside this appraisal that you would like to discuss / comment
upon?
• Would you like to offer any suggestions or comments to your
supervisor / management that would help the organization grow,
prosper and achieve its goals?
SECTION C
SECTION A
ATTRIBUTES NI S G VG E NA
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Efficiency of work (qualitative, quantitative &
knowledge)
Cooperation
Judgment
Attendance
Planning / Organizational effectiveness
Communication
Initiative and creativity
Dependability
Attitude and Interpersonal relationships
Productivity
Supervisory ability
Overall rating
SECTION B
Compare & discuss the self appraisal entries in Section B. Note down
comments and recommendations as applicable.
SECTION C
Employee’s Signature:
Date:
21
To be completed by the appraiser / supervisor:
Appraiser’s Signature:
Date:
Airtel does annual Performance appraisals which are essential for the effective
management and evaluation of staff. Appraisals help to develop individuals,
improve organizational performance, and feed into business planning,Thus
airtel gives recognitions and rewards to the employee which in turn motivates
the employees and the employees take initiative in their work.
22
PRICING POLICY
Economics a science that studies allocation of scarce resources by humans
in the world of unlimited needs.
The term economics comes from the Greek for oikos (house) and nomos
(custom or law), hence "rules of the house (hold)."[1]
23
social context, such as crime, education, the family, health, law, politics,
religion, social institutions, and war.
Pricing Policy
The simplest way to set price is through uniform pricing. At the profit-
maximizing uniform price, the incremental margin percentage equals the
reciprocal of the absolute value of the price elasticity of demand. The most
profitable pricing policy is complete price discrimination, where each unit is
priced at the benefit that the unit provides to its buyer. To implement this
policy, however, the seller must know each potential buyer’s individual
demand curve and be able to set different prices for every unit of the product.
The next most profitable pricing policy is direct segment discrimination. For
this policy the seller must be able to directly identify the various segments. The
third most profitable policy is indirect segment discrimination. This involves
structuring a set of choices around some variable to which the various
segments are differentially sensitive. Uniform pricing is the least profitable way
to set a price.
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Price discrimination.
Pricing policy where a seller sets different incremental margins on various
units of the same or similar products.
Conclusion
AIRTEL companies are using direct segment discrimination were seller
charges a different incremental margin to each identifiable segment (with
uniform pricing within each segment). A segment is a significant group of
buyers within a larger market. since there are only two connection i.e. post
paid and prepaid but with different plan which are priced separately according
to the customers wants and needs.
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LEGAL ENVIRONMENT
1) Political Environment:
Political forces influence the legislations and government regulations under
which the firm operates.
• Allotment of Spectrum to GSM Operators:
All telecom companies face political constraints in the form of minimum usage
legislation. These laws, rules and regulations affect a company’s profit.
The COAI made a legal representation to DoT, asking DoT to make available
requisite spectrum to the GSM operators as per the criteria laid down by the
Government. GSM operators had been facing a severe crunch on spectrum
and have been waiting for months or even years to get spectrum. He stated
that the non-availability of spectrum was affecting both new licensees who
were yet to get their initial allotments and also the operators who had far
exceeded the subscriber linkages that had been prescribed by the
Government.
26
Tower problems:
In Goa & Maharashtra circle there is a Political problem regarding setting up of
towers on Naval base as the Navy people are not allowing telecom companies
to set towers in that area.
2) Economic Environment:
These are the factors that affect the revenues of the company and also the
government. These include:
1) Licensing liberalization
Several important initiatives have been taken to further liberalize the licensing
norms with the objective of making telecom services available at affordable
prices.
F DI Ceiling increased from 49 per cent to 74 per cent in the telecom
services.
Annual license fee for National Long Distance (NLD), International Long
Distance (ILD), Infrastructure Provider-II, VSAT commercial and Internet
Service Provider (ISP) with internet telephony (restricted) licenses was
reduced to 6% of Adjusted Gross Revenue (AGR) w.e.f. 1-1-2006.
Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore
prospectively i.e. date of issue of amendment to the existing guidelines to that
effect. Entry fee for ILD be reduced to Rs. 2.5 Crore from Rs. 25 Crore.
Lease line charges have been reduced to make the bandwidth available at
competitive prices to facilitate growth in IT enabled services.
The rate of License fee/revenue share has been revised from 10% to
6% of the AGR w.e.f 01.01.2006.
3) Social Environment:
The social environment is an important factor as changes in the values,
beliefs, attitudes, opinions and life styles in society create potential
27
opportunities for an organization for a company to grow, it is necessary to take
advantage of societal changes. The cultural, demographic, religious,
educational and ethnic conditioning of individuals in society affects the social
environment.
(i) Rural Telephony
Telecom development in rural areas assumes special significance as more
than 70% of telecom development and overall economic development of a
region. Telecom services are important drivers for development, delivery of
public services such as education, health etc. and integration of rural areas
with the rest of the country.
(ii) ONE INDIA PLAN: Telecom companies have started ONE INDIA PLAN in
which subscribers can call anywhere in India @ Rp 1/-.
4) Technological environment:
This environment comprises factors relating to the raw materials and
machines used in manufacturing the service. These factors include Age, 3G,
number portability, EDGE Technological innovations determine how
organizations compete and thrive in the marketplace.
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BRANDING AND PRODUCT RANGE
AIRTEL AS A BRAND
Today we touch people’s lives with our Mobile services to connect India's
leading 1000+ corporate, empower them through Broadband services and
connect Indians living in USA with our call home service.
The Airtel logo is a specially drawn wood mark, strong, contemporary and
confident symbol for a brand that is always ahead of the rest.
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The Airtel Image Style
The title case lettering with its capital ‘A’ reinforces our leadership position.
The red dot cues in our focus on innovation. Our logo is a reflection of our
identity – a confident symbol of a brand that is always ahead of the rest,
always ‘In-touch’ and on customer’s side. The words ‘Express Yourself’ are
very much of the Brand identity
The lettering is grey so that the pure black of Airtel is visually unharmed.
SIGNIFICANCE OF BRAND
Consumers identify brand distinctive capabilities based on their perception
that have themselves been created by the marketer over a period of time.
A brand conveys the following
• Values: Most of the brands associate some value with themselves. For
instant the baseline of airtel, “Express yourself”, communicates a value
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proposition that the prepaid and postpaid connections make s to
express yourself to other.
• It is a brand for all segments of people whether they are rich or poor
and for the people who believes in to maintain human relation.
• User: Brand clearly states their user segments. Airtel targeted all
segment of people, right from the common people to the business
oriented people.
emails instantly
Read attachments
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2) Postpaid Services
Post Paid Plans- As an Airtel Post-paid customer you can enjoy the following
facilities -Easy Billing, Call Divert, Call Hold and Call Wait, Short Messaging
3) Prepaid Services
Pre paid Plans- As an Airtel Pre-paid customer you can enjoy the following
facilities - Total Cost Control, No Deposits, No Rentals, STD/ISD Facility to the
last rupee, Instant Balance Inquiry, 60 Second Pulse, Instant Recharge, 24
hour recharge facility, Caller Identification, Call Hold and Call Wait, Short
Messaging Service (SMS), SMS based Information Service, Voice mail
service.
Thus it has found that prepaid connections are more than postpaid
connections.
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DETAILS OF PRODUCTS
Some of the post paid plans that sell the most are:
Rs125 month
Monthly Rental
Clip No clip charges for first first six months after that
50 rs p/m
Airtel Other GSM Landline/CDMA
Local Rates
0.50 0.50 1.00
ISD
Africa 9.99
SMS
Local Rs. 1/per sms
33
Table2. : Airtel Privilege 450/-
Rs450 month
Monthly Rental
Clip nil
ISD
Africa 9.99
SMS
Local Rs. 0.50/per sms
34
Table 3. : Airtel Privilege 599 plus
Rs599 month
Monthly Rental
Clip nil
ISD
Africa 9.99
SMS
Local Rs. 0.50/per sms
35
Table 4. : Alex 345 Plan
Rs345 month
Monthly Rental
Clip nil
ISD
Africa 9.99
SMS
Local Rs. 0.50/per sms
36
Airtel CUG Plans (Group plans)
Particulars Rates
249
Rental
Clip free
CUG within the group M&G circle 0.10 paisa
Local
Airtel to Airtel 0.50
Airtel to GSm 0.50
Airtel to Fixed LL/WLL 1.00
STD
Airtel to Airtel 1.75
Airtel to GSm 1.75
Airtel to Fixed LL/WLL 1.75
SMS
Local .30
National .30
International 5
TOP UPS
Tops ups local First 200 min
@.10 p
Top ups STD First 100 min
@.50 p.
SMS First 100 sms
free
37
Particulars Rates
249
Rental
Clip free
CUG within the group M&G circle 0.10 paisa
Local
Airtel to Airtel 0.50
Airtel to GSm 0.50
Airtel to Fixed LL/WLL 1.00
STD
Airtel to Airtel 1.75
Airtel to GSm 1.75
Airtel to Fixed LL/WLL 1.75
SMS
Local .30
National .30
International 5
TOP UPS
Tops ups local First 200 min
@.10 p
Top ups STD First 100 min
@.50 p.
SMS First 100 sms
free
38
North West South East
And
Himachal Pradesh Maharashtra and Goa hra Pradesh Orissa
UttarPradesh (W)
39
FINDINGS & ANALYSIS
1. For how long you had been the customer of Airtel?
(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year
10%
26%
Around 48% of churn is found among the customers who are with the services
of Airtel for 0-3 months.
Yes No
21 29
42% Ye s
58% No
58% 0f the customers says that they are satisfied with the network of Airtel.
40
Were you happy with rental plan offered?
Yes No
34 14
29%
Yes
No
71%
Majority of the People are happy with the rental plans offered by Airtel. There
is not much difference between the plans offered by Airtel and other operators.
Yes No
14 36
28%
Yes
No
72%
41
Few customers found that the plans were little expensive. Such customers can
be retained by offering them plans that suits their usage and income.
5. Was there any difference between plans discussed and plan offered?
Yes No
03 47
6%
Yes
No
94%
In few cases it was found that there was some difference between the plans
discussed and plans offered.
6. Was there sufficient time between bills received date and due date?
Yes No
28 22
42
44% Yes
56% No
Hypothesis testing
Ho: Customers say that 7days is sufficient time between bills received date &
the due date.
H1: customers say that 7 days is not sufficient time between bills received
date & the due date.
x x- x (x- x)
28 0 0
22 -6 36
= 50 = 25
2
X = 28
= 36 = 18
2
= 12.77
43
= 28-25 = 3
12.77 12.77
= 0.23
7. Were you happy with the billing payment facility offered by Airtel?
Yes No
31 19
44
38%
Yes
No
62%
Hypothesis testing
Ho : customers are satisfied with the billing payment facility offered by Airtel
H1 : customers are not satisfied with the billing payment facility offered by
Airtel
X X-X (X-X)
31 0 0
19 -12 144
X = 31
= 50 = 25
2
= 144 = 72
2
45
= 31- 25 = 6 = 0.12
51 51
Since computed value lies in acceptance region we conclude that people are
happy with billing payment facility offered by Airtel.
Few customers are unhappy with the billing payment facility offered by Airtel.
Yes No
32 18
46
36%
Yes
No
64%
9. Were you happy with the value added services offered by Airtel?
Yes No
38 12
24%
Yes
No
76%
10. Are you willing to join again if your queries are given necessary solutions?
Yes No
08 42
47
16%
Yes
No
84%
Though 84% of the churned customers are not willing to join again it is very
difficult to get them back again.
48
CONCLUSIONS
• Around 48% of the churn is found among the customers who are with
the services of Airtel for 0-3 months. These are the customers who
constantly switch over to other operators if they find the services
unsatisfactory. These are the customers who look out for cheaper rental
plans. Though it forms the major portion of the churn retaining of such
customers is very important. Such customers can be retained by
offering them cheaper plans compared to the competitors.
• People do find better coverage in urban and semi urban areas but as
you move towards the interior of rural areas people do face the
coverage problem. Though Airtel is coming with more towers in Goa &
Maharastra circles coverage issue will be solved in coming years.
• Some customer had to come to city for bill payment. This problem can
be solved by setting up small Airtel galleries at convenient locations
offering both prepaid and post paid services.
• 36% were found that their queries were not solved. Such special cases
have to be taken into consideration and accordingly a proper retention
tool should be offered.
84% of the churned customers are not willing to join Airtel again even though if
their queries are solved. This can be avoided by keeping a proper track of
why they discontinued and accordingly proper plans can be designed so
as to avoid further problem of churn.
49
be done at the time of taking the connection by asking the customer
about the date he is convenient of paying.
50
BIBLOGRAPY
1) Web sites:
www.google.com
www.wikipedia.com
www.airtel.com
3) Book reference
4)Questionnaire
51
ANNEXURE
QUESTIONNAIRE
(a) 0-3 months (b) 3-6 months (c) 6- 12 months (d) more than 1 year
5. Was there any difference between plans discussed and plan offered?
6. Was there sufficient time between bills received date and due date?
7. Were you happy with the value added services offered by Airtel?
8. Were you happy with the billing payment facility offered by Airtel?
10. Are you willing to join again if your queries are given necessary solutions?
52
ABBREVIATIONS
53
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