A PROJECT STUDY REPORT ON

TRAINING UNDERTAKEN AT

AIRTEL, JAIPUR

TITLED

MARKET ANALYSIS OF TELECOM SECTOR IN PRE-PAID CASH CARD RETAILING

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Jitendra

Virahya s
JVIRAHYAS@GMAIL.COM
2009-2011 DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION,JAIPUR

DECLARATION

I xxxx declares that the project report titled MARKET ANALYSIS OF TELECOM SECTOR IN PRE-PAID CASH CARD RETAILING is based on my project study. This project report is my original work and this has not been used for any other purpose anywhere.

Name of the Student xxxx 2

PREFACE
Indian industry is waking up to the challenges thrown in by market economy, policies and globalization. To survive in this highly competitive scenario, heavy emphasis is laid on getting to know the customers basic needs and keeping abreast with the latest technology. The collective efforts of both assume relevance in this context. Knowledge of market is essential for the development of the product. The needs of the consumers change very often and so the companies are forced to incorporate these changes within themselves. This point becomes more important for an organization that is acquiring a brand that is considered as a regional brand, OASIS the voice of Rajasthan.

The present study attempts to capture the economics of telecom prevalence in Jaipur with a view to facilitate increased and value added services to the customers. The main purposes of the project are following: To study the market players in telecom in Jaipur. To find out the most preferred brand in the market. To know the awareness level of consumers about Airtel.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mrs. Rawal (Marketing Head) for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support She had provided to me with all stage of this project. Iwould also like to thank the supporting of all the company department,especially for the Mr.Jitendra Virahyas for their help and cooperation throughout our project.

xxxxx MBA III Sem

EXECUTIVE SUMMARY
The project is an extensive report on how the Airtel company markets its strategies and how the company has been able in tackling the present tough competition and how it is cooping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Airtel company. This report also contains the basic marketing strategies that are used by the Airtel company of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues. In todays world of cut throat fierce competition, it is very essential to not only exist but also to excel in the market. Todays market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon

CONTENTS
S.no. 1. Particulars Introduction to the Industry 1.1 Indian Cellular Market - Earlier Roadblocks & Their Resolution 1.2 Developments In The Cellular Industry 1.3 Future Trends And Development 2. 1.4 Regulatory Issues Introduction to the Organization 2.1 Bharti Group 2.2 Management Structure 2.3 Bhartis Vision 2.4 Core Value of Bharti 2.5 Business Strategy 2.6 Mobile Strategy 2.7 Competitive Strength 2.8 Mobile Division 2.9 Network 2.10 Achievements 2.11 Awards And Recognition 3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objectives of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study 4. Facts and Findings 7 31 64 27 30 9 26 Pages 18

5. 6. 7. 8. 9. 10.

Analysis and Interpretation SWOT ANALYSIS Conclusion Recommendation and Suggestions Appendix Questionnaire Bibliography

65 85 8687 88 89-91 92-94 95

1. INTRODUCTION TO INDUSTRY
In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirtyfour licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each. In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The government decided to set up TRAI to separate regulatory functions from policy formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network. As a result, by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of these roadblocks / current position is tabulated below:

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ROADBLOCKS CURRENT POSITION

High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees. Inadequately funded businesses / weak and fragmented promoters Businesses that have since been adequately funded growing at over 60% per annum, while businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5 major groups emerging in the last one/two years. Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making roles vested in different bodies. Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies for usage by GSM operators.

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Problems in Financial closures due to: Licensing tenure of 10 years Large up front cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions. Licensing tenure increased from 10 to 20 years Large up front cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial institutions. Foreign ownership / change of partner limitations Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing ease of entry / exit - paves the way for full control of businesses by foreign companies. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom.

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased against the former. Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people. In recent years, many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile.

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In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti Cellular. Bell South International has also indicated its intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain, and the former is reviewing various options. The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. Hong Kong-based Vodafoneison Whampoa, via Vodafoneison Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership with local company, Kotak Mahindra Finance, Vodafoneison Whampoa practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Vodafoneison Whampoa is also the controlling shareholder of Vodafoneison Max Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into one entity. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Vodafoneison with three, and Reliance and Idea cellular with one each. Bharti and Vodafoneison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made any headway. BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid October. Once BSNL rolls out its service, most telecom circles will have four cellular operators. 13

There will be tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular services. As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question. Building visibility and awareness Deviating from competing on the price platform, cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food and beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops. Enterprise mobile applications promising revenue stream All along, customer acquisition and the top line have been the focus. Few operators have concentrated on offering differentiated services for businesses. However, as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now seriously looking at the enterprise segment for provisioning superior services. 14

Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and instant alerts are being offered. A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can be barred, limiting access to select numbers and diverting calls to one single number. Broadcasting services are also quite popular, especially among fast food centers that have a central number. Group SMS is quite popular, especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to maintain their lead. The implementation of enhanced networks like 2.5G will enable operators to offer data services. This is an opportunity to customize and differentiate better. The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled, thus there is less chance of a cartel being formed. Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. The bigger the service provider's national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous.

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Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A document buried in the sands of time. The next major policy document, which was produced, was the National Telecom Policy of 1994, a consequence of the on going process of liberalization. Year 1851 1943 1985 1986 1991 1994 1994 Event First telephones in India Nationalization of telephone companies DoT was created Creation of BHARTI and VSNL Telecom equipment liberalized Licenses for paging Telecom policy announced

September 1994 Guidelines for private sector participation in basic services November 1994 Cellular licenses issued for metros December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros January 1995 August 1995 January 1996 Tenders for 2nd operator in basic services apart from DoT on circle basis. VSNL launches Internet services TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a series of action points. Like other policies, it sought to achieve the impossible in finite time like improve quality of service and its availability, wide coverage (a phone in every 16

village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/ BHARTI have the option to become the third cellular operator in future. Government did not achieve most of its stated targets. The basic theme, which was broadening the reach of telephony in India, has not been met. Even liberalization policies were not implemented properly. The regulator TRAI was set up after delays and confusion and even after its creation, DoT continued to fight with it in courts. It was also affected by the resource crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention, though noble failed to achieve its goals because of improper implementation, the economic costs are still borne by the end user.The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. telecom equipment manufacturing was completely deregulated in 1991. Value-added services (including cellular services) were thrown open to private sector participation in 1992. An independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT, separating policymaking function and service provision and corporatization of DoT's operational network are two major institutional reforms, which need to be implemented.

2. INRODUCTION TO THE ORGANISATION

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2.1 BHARTI GROUP

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

JOINT VENTURES
Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunication services based on a strong customer base consisting of approximately 8.37 million total customers which constitute, approximately 17.67 million mobile and approximately 2704,000 fixed line customers, as of June 30, 2004Bharti Tele-Ventures current businesses include

Mobile services Fixed-line National and international long distance services VSAT, Internet services and network solutions

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2.2 MANGEMENT STRUCTURE

The group has been structured to create functional and operational specialization with a linear vision of business lines and functional areas. The Company is headed by Chairman and Group Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan Bharti Mittal. The Company also has two Presidents- President Mobile Services and President Infotel Services, this responsibility includes Fixed-line, Long Distance and Broadband Services. The Presidents report to the Group Chairman and Managing Director. The head of units and Strategic Business Units (SBU) report to the respective business's President.

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PROFILE OF THE COMPANY Historical prospective of Bharti Airtel:Sunil Bharti Mittal:Chairman& Managing Director since October 2001 Board director since: July 1995 Age: 50 years Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. Head quartered at New Delhi, India. Bharti Airtel, Indias leading private integrated telecom company has been at the forefront of the Telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. Sunil started his career at a young age of 18 after graduating from Punjab University in India and founded Bharti, with a modest capital, in the year 1976. Today, at 50 he heads a successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40 billion and employing over 30,000 people. Bharti has grown successfully in partnership with various leading companies of the world Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other businesses in the group are consumer electronics (Bee tel), life insurance with AXA of France (Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and export fruits and vegetables to the world (Field Fresh) Bharti has recently entered into a JV with Wal-Mart for setting up supply chain, logistics and cash and carry to support the burgeoning retail market in India. Sunil is an alumnus of Harvard Business School, MA, USA. Sunil has been conferred one of the highest civilian award Padma Bhushan. Sunil has been conferred the degree of Doctor of Science (Honoris Causes) by the G B Pant University of Agriculture & Technology.

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Sunil is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers (IETE)". Sunil is the Honorary Consul General of the Republic of Seychelles in New Delhi, India. Bharti Enterprises, India's leading telecom conglomerate, 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 has many joint ventures with telecom leaders like SingTel, Singapore; British Telecom, UK; E.M.Warburg Pincus, USA; Talia, Sweden and New York Life International, USA. Bharti Airtel was founded in 1995, to the name of BTVL (Bharti Tele Venture Limited).Its head quarter is in New Delhi. It is Public listed company on BSE. The named changed to Bharti Airtel in early 2006. Bharti Tele-Ventures Limited (BTVL) is India's largest Telecom Business operator with more than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. Airtel is a brand of telecommunication services in India operated by Bharti Airtel. Airtel is the largest cellular service provider in India in terms of number of subscribers. Bharti Airtel owns the Airtel brand and provides the following services under the brand name Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line, Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services (Telecommunications Consulting for corporate). It has presence in all 23 circles of the country and has the covers 71% of the current population till FY07.

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Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel signed a MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network. In August 2007, the company announced it will be launching a customized version of Google search engine that will provide an 'array of services' to its broadband customers. In March 2008, Bharti Airtel will roll out third generation services in Sri Lanka in association with SingTel. This is because Singapore-based Asian telecom major SingTel, which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it has already third generation networks in several markets across Asia.

Organization culture of Bharti Airtel: Organization Culture is a Dynamic system of shared values, beliefs, philosophies, experiences, habits, behavior that give an organization its distinctive character. This excellence extends beyond technology roles, and is equally important to how we manage and sustain this rapid growth. The spirit of innovation and excellence. The opportunity for cross-functional moves. Taking a risk on new ideas and giving us ours own creativity space to operate in.

External training courses are sponsored to ensure that the objective of offering continuous professional development is achieved.

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Various department of Bharti Airtel:-

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2.3 BHARTIS VISION

To make mobile communications a way of life and be the customers first choice.

BHARTIS MISSION Meet the mobile communication needs of the customer through
1) 2) 3) 4)

Error free service Innovative products and services and Cost efficiency. Unified messaging solutions

Airtel from Bharti Cellular Limited is a part of the biggest private integrated telecom conglomerate, Bharti Enterprises.

2.4 CORE VALUE OF BHARTI

Innoventuring Generating and implementing entrepreneurial and innovative ideas, to create new growth engines. Customer First Committed to delivering service beyond the expectations of the customer. Performance Culture Benchmarking processes and performance against world-class standards helps to distinguish between performers and non-performers by valuing achievement at the individual as well as the team level. The culture encourages and invites feedback, learning and ideas sought and acted upon.

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Valuing Partnership Committed to building exemplary relationship with partners, which stands on the principles of mutual trust and mutual growth. Valuing People Nurtures an environment where people are respected and their uniqueness is valued. Firmly believing that people are key differentiates.

Responsible Corporate Citizenship Committed to making a positive and proactive contribution to the community and as a responsible corporate citizen will contribute to and abide by environmental and legal norms. Ethical Practices Will uphold the highest ethical standards in all internal and external relationship and will not allow misuse or mis-representation of any facts.

2.5 BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective is To capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services. The Company has developed the following strategies to achieve its strategic objectives:

Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage;

Offer multiple telecommunications services to provide customers with a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced mobile data services; 25

Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;

Leverage strengths of its strategic and financial partners.

Emphasis is laid heavily on human resource development to achieve operational efficiencies.

2.6 MOBILE STRATEGY

Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Provide affordable tariff plans to suit each segment of the market with a view to

expand the reach, thereby increasing the mobile customer base rapidly.

Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer services.

2.7 COMPETITIVE STRENGTH

Bharti Tele-Ventures believes that the following elements will contribute to the Company's success as an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: Nationwide Footprint - As of June 30, 2004, approximately 92% of India's total mobile subscribers resided in the Company's sixteen mobile circles. These 16 circles collectively accounted for approximately 56% of India's land mass; Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities The strong brand name recognition and a reputation for offering high quality service to its customers;

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The Company's strong relationships with international strategic and financial investors such as Singtel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.

Quality management teams with vision and proven execution skills.

2.8 MOBILE DIVISION

The Indian mobile market, according to the (COAI), has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 37.38 million subscribers as of December 31, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 3.6% as of December 31, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years, 2006 projected it at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: Lower tariffs and handset prices over time; Growth in pre-paid customer category; Greater economic growth and continued development; Higher quality mobile networks and services; and Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited.

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2.9 NETWORK
The map below depicts the location of, and provides certain information for, Bharti TeleVentures' existing mobile circles in India:

The key demographics of Bharti Tele-Ventures' mobile circles are set forth below. All India Bharti Circles Bharti as % of All India

Number of circles 22 16 73%

Area of the circles (in '000 sq. km)(1) 3,278 1,848 56% 28

Population in the licensed areas (in Mn)(2) 1,027 593 58%

Market Mobile subscribers in the licensed areas (in Mn) (3) 37.38 36.31 97%

Market DELs in the licensed area (in Mn) (4) 37.7 30.7 81%

Number of vehicles in the licensed areas (in '000s)(5) 36,132 1. 2. 29,025 80%

Area estimates are from National Census, 2001. Population estimates for all the circles other than the metropolitan areas are as per

National Census, 2001 and are as of March 1, 2001. Population estimates for the Uttar Pradesh (West) circle is 37% of the total population of the state of Uttar Pradesh. 3. Based on data released by the COAI on the total number of mobile subscribers in the

circles as of December 31, 2004. 4. DELs as on March 31, 2002. Based on data released questions and Government

statistics as per The Financial Express dated June 10,2002. 5. 6. Vehicles comprise four wheeler and two wheeler non-commercial. Vehicles and are derived from data released by the Motor Transport Statistics of India

as of March 31, 1997 in its most recent report.

2.10 ACHIEVEMENTS

The largest private sector in integrated telecommunications services group in India in terms of the number of customers.

Largest Mobile footprint in India, covering 20 of the 23 licensed areas. Proven track record of managing growth - both organic as well as by way of acquisitions.

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Existing foreign shareholders have acquired direct and indirect equity interests in the Company for a total consideration exceeding US$1 billion.

First and largest private telecommunications services company offering fixed-line services in India.

First private telecommunications company to launch long distance services. First off the block to launch fixed-line services in all the four circles of Delhi, Haryana, Karnataka and Tamil Nadu.

FIRST AMONGST
FIRST operator to revolutionize the concept of retailing with the inaugurations of connects (exclusive showrooms) in 1995. FIRST mobile communication service provider in India to be certified for ISO9001: 2000. FIRST in world certified by British Standards Institution for mobile Communication. FIRST to expand its network with the installation of second mobile switching centers in 1997. FIRST TO introduce the intelligent network platform first to provide retail subscribers by forming an association called World 1 Network. FIRST to provide roaming facility in USA. FIRST to introduce a wide array of value added services like Smart mail, fax facility, call waiting, Web-messages, information services etc. to enhance the convenience of its subscribers.

2.11 AWARDS AND RECOGNITION

Bharti Tele-Ventures, its subsidiaries and management have received several awards and recognitions, including:

Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in November

2001 in the Asian edition of the "tele.com" magazine with analytical inputs from research consultants Frost &Sullivan. 30

The leading telecommunications service provider in India in a survey of Indian

companies conducted by Business World in association with Indian Marketing Research Bureau in September 2001.

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The Techies award from Information Communications World, an international business

magazine, for four consecutive years (1997 to 2000) for brand excellence, network quality, customer service and value added service in our Delhi mobile circle.

Golden Peacock National Training Award 1999 to Bharti Cellular for our Delhi mobile

operations from the Institute of Directors, a non-profit association in India committed to improving the competitiveness of Indian business by focusing on development of business leaders, for the best human resources and training practices.

Ascent Times of India and Sodexho Pass award in 1999 from the Asia Pacific HRD

conclave to Bharti Cellular for corporate excellence in the category of most innovative human resource practices.

Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honored as " One

of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for the year 2001 by international business magazine, Business Week.

Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by Business

India.

Mr. Sunil Bharti Mittal was awarded the Dataquest IT man of the year 2002. Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World HRD

congress.

Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial Officer

for year 2001 for Mergers & Acquisitions activities by EIU.

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Introduction of Indian Telecom sector

The industry is considered as having the highest potential for investment in India. 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. This is expected to soar in the next five years. Recognizing that the telecom sector is one of the prime movers of the economy, the Governments regulatory and policy invites have also been directed towards establishing world class telecommunications infrastructure in India. The telecom sector in India therefore offers an ideal environment for investment. The telecommunications initiative in the country is lead by Minister of Communications through the Department of Telecommunication $ Department of Telecom services and its undertaking for provision of basic telephone services, national and international long distance communications, manufacture of complete range of Telecom equipment, research and development, and consultancy services. The telecom Commission performs the Executive and policy making functions. The Telecom regulatory authority of India performs the functions of an independent regulatory body.

About GSM:The most prevalent wireless standard in the world today, is GSM. The GSM association (Global system for Mobile communications) was introduced in 1987 to Promote and expedite the adoption, development, deployment and evolution of the GSM standard for digital wireless communications. The GSM association was formed as a result of European community agreement on the need to adopt common standards suitable for cross border European Mobile communications. Starting of primarily as a European standard, the Group special Mobile as it was then called, soon came to represent the Global system for Mobile communications as it achieved the status of world-wide standards. GSM is today, the worlds leading digital standard accounting for 70% of the global digital wireless market. 33

The Indian Government when considering the introduction of cellular services into the Country, made a landmark decision to introduce the GSM standard, leapfrogging Obsolescent technologies /standards. Although cellular license were made technology neutral in September 1999, all the private operators are presently offering only GSM based mobile services. The new licenses for the 4th cellular licenses that were awarded in July 2001 too, have adopted for GSM technologies to offer their mobile services. The GSM standard for digital cell phones was established in Europe in the mid-1980s--long before digital cellular phones became common place in American culture. It is now possible to locate a person using a cellular phone down to a range of a few meters, anywhere on the Globe.

About Airtel
Airtel cellulars antecedents date back to 1995 that time it is known to the named by BTVL (Bharti tele venture limited) and named changed in early 2006 to Bharti Airtel. It is established by Sunil Mittal Bharti. Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest Telecom Business operator with more than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and Internet access over DSL in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circle. Bharti enterprises are public listed company, and its revenue is $6 billion. In July 2007 the company announced to the collaboration with NokiaSiemens for a $900 million expansion of its mobile and fixed network. Vision of the company is 125 million customers on 2010.President of Bharti Airtel is Manoj Kohli, and Joint Managing

34

Director is Rajan B. Mittal. Airtel has three BSU unit respectively Mobile, Broadband and telephone enterprises. The total customer of Airtel as on 31st May 2009 is 66825935.The company will invest up to $3.5 billion this Fiscal 2007-08 in network expansion. In Mar 2009 Bharti Airtel will rollout 3G service in Sri Lanka In associated with SingTel, which stake is 30% in Airtel The study has revealed the following results:The Market share of following GSM services in India is following:Group Company Airtel(GSM) Reliance (CDMA + GSM) Vodafone Essar(GSM) BSNL(GSM) IDEA(GSM) Tata (CDMA) Aircel(GSM) Spice(GSM) MTNL(GSM + WLL) BPL(GSM) HFCL (CDMA) Shyam (CDMA) Total (All India) Total Subscribers 66825935 48696295 47466853 36997418 26140643 25476062 11491986 4497675 3350437 1331261 326150 108396 272709111

35

The market share in percentage of the various GSM service providers in the corporate sector of India is as follows:Airtel: - 24.50% Tata Indicom: - 9.34%

BSNL:-13.57%

Vodafone: - 17.41%

Idea:-9.59%

Reliance (GSM+CDMA):- 17.86%

Others:-7.73%

36

4. RESEARCH METHODOLOGY
RESEARCH METHODOLOGY - DEFINED
a. Research is the systematic investigation to establish facts or collect information on a predecided subject. b. Methodology is the specification of the system of principles and techniques used in a particular discipline. Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Finding & Recommendations

37

4.1 TITLE OF THE STUDY Market Analysis of Telecom Sector in Pre-Paid Cash Card Retailing 4.2 DURATION OF THE STUDY
The duration of the project training was 45 days (24 th jun, 2010 to 9th Aug, 2010) undertaken to accomplish the title and objective.

4.3 OBJECTIVES OF THE STUDY

To study the market players in telecom in Jaipur. To find out the most preferred brand in the market. To know the awareness level of consumers about Airtel.

4.4 TYPE OF RESEARCH DESIGN

SURVEY METHOD A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Descriptive research is used in the preparation of the project. There is some point and facts which were not found earlier hence exploratory research is used. A Descriptive research technique is also used as I again worked upon those facts which were earlier found by some other. 38

4.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

SAMPLE SIZE:- 488 Shopes. The method of selecting sample is randomly. SECONDARY DATA For the completion of the research it was important that the secondary data should be supplemented by primary data originated specifically for the research in hand. The primary data was gathered through questionnaires. My research findings are based on information collected from filled questionnaires. The main sources of secondary data were: Internal Data: Some previous market studies provided by the guide, Reports and database of HEXACOM provided by guide PRIMARY DATA Method used to collect primary data is: Questionnaire Questionnaire Method: For the purpose of the study survey was conducted across different areas of Jaipur city. The Questionnaire (a sample copy is attached) was prepared according to the objectives of the project and was administered accordingly. The data gathered through this exercise became the primary data.

SAMPLING ERRORS
While interpreting the results I kept in mind the potential errors. Two sources of errors are random sampling error, which arises due to the fact that the sample may not be a true representative of the population, and non-sampling error which comes up because of faulty coding, untruthful responses, respondent fatigue etc.

QUESTIONNAIRE DEVELOPMENT PROCESS

In order to gather primary data, I used structured questionnaires, prepared in advance to elicit the necessary response from the respondents. Questionnaires help to facilitate communication and know the perceptions of the respondents clearly. The following points were kept in mind while structuring the questionnaire. 39

Content of the questions: the questions had been framed keeping in mind the objective of the research. Type of questions: the questionnaire consists of open-ended, closed-ended, dichotomous and multiple-choice questions. Further I made use of likert scale to get a more vivid response. Wording of the questions: the questions are such that they are easy to understand and the respondents do not have any hesitation in answering the questions. Note: - A sample questionnaire is enclosed with the report in Annexure- I at the end.

4.6 SCOPE OF THE STUDY

Raisar Plaza is the hub for the electronic gadgets retailing cash card and Telecom outlets. It has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of which the ground, basement and 1st floors deal with the retailing of cash cards. There are total 488 shopes.

4.7 LIMITATIONS OF THE STUDY

No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/wholesalers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience also because hurdle for me. 40

8. Some retailers did not answer all the questions or do not have time to answer. All research papers have its own limitations in terms of methodology and the resources available for its conduct. This study is no exception to it and has been carried under following limitation: Some of the respondents were not forthcoming with information as they thought it

to be a waste of time. A number of respondents were biased towards a particular brand, which was

giving them better returns. Some of the respondents were not available so, contacted person was not able

to present a fair view. Respondents lack of time to give information and their casual attitude was a big

hindrance in the study.

41

5. FACTS & FINDINGS

RAISAR PLAZA About the market: This market is the hub for the electronic gadgets retailing cash card and Telecom outlets. It has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of which the ground, basement and 1st floors deal with the retailing of cash cards. Total Number of Shops Shops Dealing in Cash Cards : 488 : 33

1. Details of the retail outlets NATURE OF RETAIL OUTLETS (i) (ii) (iii) (iv) (v) STD/ISD/PCO Departmental Stores Telecom Outlet Electronic Gadgets Others NO OF 5 38 14 431 488 RETAIL OUTLETS 31 2 33 SELLING

OUTLETS

CASH CARDS

Total 2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL Reliance

NO. OF OUTLETS 56 38 7 6

Exclusiveness and combination of brands selling along with others

42

AIRTEL Vodafone 24

& Exclusive Vodafone 2*

Exclusive AIRTEL 2**

Exclusive BSNL -

AIRTEL & AIRTEL BSNL 6 & RIM 6

Out of the 2 outlets 1 sells BSNL Recharge coupon Out of the 2 outlets 1 sells BSNL Recharge coupon

OTHERS Outlet details: RETAIL OUTLET Electronic Repair Shop INFERENCE: MARKET LEADER: VODAFONE The retailers prefer vodafone because Numerous schemes Better service Customer preference NO. OF OUTLETS 2

5.1 IN RESPECT TO RAJA PARK About the market:

43

This place occupies a prominent position due to the absence of other market in near by vicinity. The market is an agglomeration of boutiques, showroom dealing in apparel, departmental stores and lots of telephone booths. Total number of Shops Shops dealing in cash cards Details of the retail outlets NATURE OF RETAIL OUTLETS NO OF RETAIL OUTLETS CARDS 1 9 2 12 24 SELLING CASH : 810 : 24

OUTLETS (i) STD/ISD/PCO (ii)Departmental stores (iii)Telecom Outlet (iv) electronic Gadgets (v)Others Total 20 17 9 12 752 810

2. Brand holding in the retail outlets BRAND AIRTEL Vodafone BSNL Reliance NO. OF OUTLET 21 21 12 8

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 20 Vodafone Exclusive AIRTEL 1* Exclusive BSNL 1 AIRTEL & AIRTEL BSNL 6 & RIM 4

Outlet sells BSNL Recharge coupon along with AIRTEL cash card OTHERS Outlet details RETAIL OUTLET Pharmaceuticals 44 NO. OF OUTLETS 2

Book Depot. Stationary Stores Music Gallery Bakery Mobile Repair Shop Ice Cream Parlor Garment Shop INFERENCE: MARKET LEADER: AIRTEL Airtel has an edge in this area.

2 2 1 1 1 1 1

The shops here have high inventory & the sale is also higher. The absence of any other major market also helps them.

The OTHERS have an upper hand in terms of sale than the electronics, STD/PCO, Departmental etc.

5.2 IN RESPECT TO M I ROAD About the market: Market with a rich history, Its frequented with bookstores, Telecom outlet, Banks (CANARA, STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower shop. This market surrounds the city. Total number of Shops Shops dealing in cash cards Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet 32 1 5 45 OF RETAIL NO OF RETAIL OUTLET OUTLETS CASH CARDS 9 4 SELLING : Above 450 : 15

Electronic Gadgets (v) Others Total 2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE

18

2 15

NO. OF OUTLET 15 15 3 2

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 15 & Exclusive Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 3 & RIM 2

OTHERS Outlet details RETAIL OUTLET Pharmaceutical Watch Showroom INFERENCE: MARKET LEADER: VODAFONE STD/PCO outlets have a major holding over here followed closely by the telecom outlets. The customers of this area are mostly of working class followed by students and Vodafone with its better coverage & corporate image satisfies there needs. NO. OF OUTLETS 1 1

5.3 IN RESPECT TO CHANDPOL About the market: Highly populated area. It has shops dealing in whole sailing i.e. in the bulk selling of the goods to the retailers & other shops regarding food grains, stationers, timber related products & shops selling cycles. Total number of Shops : 463 46

Shops dealing in cash cards

:5

OBSERVATIONS : Specifications of the retail outlets NATURE OUTLETS (I) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 6 21 1 10 425 463 OF RETAIL NO OF RETAIL OUTLET OUTLETS SELLING CASH CARDS 2 1 2 5

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLET 5 5 2 1

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 5 Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 2 & RIM 1

OTHERS Outlet details RETAIL OUTLET NO. OF OUTLETS 47

Stalls Pharmaceutical INFERENCE:

1 1

MARKET LEADER: Neck-to-Neck between Vodafone and AIRTEL Its not a commercial area the sales of the cash card is low. Proximity to johari bazaar, chaura raasta and other major markets thus its facing a lot of competition. BSNL recharge coupons are a big hit with the customers.

5.4 IN RESPECT TO STATION ROAD (From Station to Grah sangrah) About the market This market covers the station (Railways). Thus you find here dhabas, bookstores, STD/ PCO Booths and sweet-meat shop. Total number of Shops Shops dealing in cash card : 156 :9

OBSERVATION: 1. Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others OF RETAIL NO OF 19 9 138 48 RETAIL OUTLETS 3 2 4 SELLING

OUTLET

CASH CARDS

Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE

156

NO. OF OUTLETS 8 9 3 1

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 8 & Exclusive Vodafone 1 Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 3 & RIM 1

OTHERS Outlet details RETAIL OUTLET Hotel + STD Enterprise + STD Book Depot. Panwala Trading Company INFERENCE: MARKET LEADER: AIRTEL The Recharge coupon of BSNL sales is high. More prominence in this area is given to AIRTEL with majority of shops selling more AIRTEL cards. The reasons are: Village connectivity is less in case of Vodafone. Good service to customers & more profit to retailers. For some its Affiliation & sense of duty. 49 NO. OF OUTLETS 1 1 1 1 2

5.5 IN RESPECT TO RAILWAY STATION ROAD (Extended from Grah Sangrah to Chandpol) About the market: Covers a stretch of 2-3 kilometer Its the most prominent area of the city playing host to hotels, main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies. Total number of Shops Shops dealing in cash cards : 376 :8

OBSERVATIONS: Specifications of the retail outlets

NATURE OUTLETS

OF

RETAIL NO

OF 37 3 7 329 376

RETAIL OUTLETS 5 1 2 8

SELLING

OUTLET

CASH CARDS

(i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO.OF OUTLETS 5 7 1 1

3. Exclusiveness and combination of brands selling along with AIRTEL

50

AIRTEL & Exclusive Vodafone 5 Vodafone 2

Exclusive AIRTEL -

Exclusive RIM 1

AIRTEL & AIRTEL BSNL 1 & RIM -

Exclusive retail Outlet of Vodafone 1. Medical shop 2. STD Outlet

OTHERS Outlet details RETAIL OUTLET Pharmaceuticals INFERENCE: MARKET LEADER: VODAFONE With its large number of telephone booths and medical shops the market is a major attraction. Still the coverage here is dramatically poor, only 8 shop deals in cash card retailing. NO. OF OUTLETS 1

5.6 IN RESPECT TO LAL KOTHI About the market: The focal point of this market is the SMS stadium. The market is an agglomeration of departmental stores, flower shops & petrol pump. Situated adjacent to tonk phatak. Total number of Shops Shops dealing in cash cards : 127 :4

OBSERVATIONS Specifications of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores OF RETAIL NO OF 6 8 51 RETAIL OUTLETS 2 2 SELLING

OUTLET

CASH CARDS

(iii)Telecom Outlet Electronic Gadgets (v) Others Total

113 127

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLET 4 4 2 1

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 4 INFERENCE: MARKET LEADER: VODAFONE Vs BSNL Irrespective of the fact that AIRTEL has more outlets its BSNL Recharge coupon that seems to have a hold in this area. Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 2 & RIM 1

5.7 IN RESPECT TO TONK PHATHAK About the market: Surrounded by K.v.no.1 School & SBI bank this area consists of Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of telecom outlets. Total number of Shops Shops dealing in cash cards OBSERVATIONS: Details of the retail outlets NATURE OF RETAIL NO OF RETAIL OUTLET 52 OUTLETS SELLING : 275 : 34

OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 21 17 8 7 222 275

CASH CARDS 7 4 6 4 13 34

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLETS 26 22 10 6

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 22 Vodafone 7 Exclusive AIRTEL 2 Exclusive BSNL AIRTEL & AIRTEL BSNL 10 & RIM 6

OTHERS Outlet details RETAIL OUTLET Pharmaceuticals Book Depot. Studio Bakery Cyber Caf Travel Agency Hard Wares Shop Textiles Fashion House 53 NO. OF OUTLETS 2 2 2 1 1 1 1 1 1

Auto Parts Shop INFERENCE: MARKET LEADER: AIRTEL

Due to its location (its one of the favorable trade routes) & prominent location the sales in this area is high with AIRTEL having a clear gain over Vodafone. People relate to AIRTEL as a pride of Rajasthan. The major contributors of this area are the others followed by STD/PCO outlets.

5.8 IN RESPECT TO UNIVERSITY MARG About the market: Adjacent to the university, Canoria College, Commerce College & podar institute. The market consists of agglomeration of Xerox shops, PCO booths &departmental stores. Total number of shops Shops dealing in cash cards : 128 :9

OBSERVATIONS: Details of the retail outlets NATURE OF RETAIL NO OF RETAIL OUTLET OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 4 4 121 129 OUTLETS 2 2 5 9 SELLING

CASH CARDS

2. Brand holding in the retail outlets 54

BRAND AIRTEL VODAFONE BSNL RELIANCE

NO. OF OUTLET 8 9 2 -

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 8 Vodafone 1 Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 2 & RIM -

OTHERS Outlet details RETAIL OUTLET Photostat Shop Ice Cream Parlor NO. OF OUTLETS 4 1

INFERENCE: MARKET LEADER: Neck-to-Neck between Vodafone and AIRTEL Place is frequented by students & hence here they are the prominent Customers Sales low.

5.9 IN RESPECT TO JANTA STORE About the market: 55

Adjacent to the main market tonk phatak This market consists of departmental stores, cyber cafe, gift shops, restaurants & ice cream parlors. Total number of Shops Shops dealing in cash cards : 62 :6

OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total OF RETAIL NO OF 4 17 1 40 62 RETAIL OUTLETS CASH CARDS 0 4 1 1 6 SELLING

OUTLET

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO.OF OUTLET 5 6 2 1

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL & RIM

56

OTHERS Outlet details RETAIL OUTLET Ice Cream Parlor INFERENCE: MARKET LEADER: VODAFONE This is an residential area near the university campus thus it has a P.G. houses & covers the govt. Quarters of indira nagar. NO. OF OUTLETS 1

5.10 IN RESPECT TO MALVIYA NAGAR About the market: It is a residential area, covering two to three main markets. The most prominent locale is the Gaurav Towers, which is turning out to be the hub of life for teenagers plus its a prime location area. Total no of shops Shops dealing in cash cards : 179 : 14

OBSERVATIONS: 1. Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total OF RETAIL NO OF 24 10 3 6 136 179 RETAIL OUTLETS SELLING CASH CARDS 6 2 1 2 3 14

OUTLET

2. Brand holding in the retail outlets 57

BRAND AIRTEL VODAFONE BSNL RELIANCE

NO. OF OUTLET 12 13 5 3

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 12 Vodafone 1 Exclusive AIRTEL Exclusive BSNL 1 AIRTEL & AIRTEL BSNL 5 & RIM 3

OTHERS Outlet details RETAIL OUTLET Xerox Shop Stationary Stores INFERENCE: MARKET LEADER: VODAFONE Compared to the vast area, the numbers of shops dealing with the cash cards are less; this discrimination is due to the fact that Malviya Nagar is a residential area with three main markets and each being at the center of 3-4 sectors. Thus limiting the growth of other shops and the shops has their own faithful customers. Gaurav towers provide the maximum sales in compared to this main market NO. OF OUTLETS 2 1

5.11 IN RESPECT TO HAWA MAHAL About the market

58

This market deals with the shops selling the traditional dresses of Rajasthan; its also a major tourist attraction center. The market mainly comprises of clothes shops, departmental stores and spare automobiles shop. Total no of shops Shops dealing in cash cards : 479 :6

OBSERVATIONS : 1. Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 10 7 1 2 477 479 OF RETAIL NO OF RETAIL OUTLET OUTLETS CASH CARDS 4 1 5 SELLING

2. Brand holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLET 5 5 1 2

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL & Exclusive Vodafone 5 INFERENCE: MARKET LEADER: VODAFONE Vs AIRTEL Its a run down market in respect to the cash cards. This place 59 Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 1 & RIM 2

doesnt seem to be gaining the customers confidence.

5.12 IN RESPECT TO JOHRI BAZAAR About the market: Johri Bazaar is basically known for jewelry shops with a considerable number of clothes apparel shops and very few electronic retail outlets. Total number of Shops Shops dealing in cash card : 387 :9

OBSERVATION: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLETS 5 6 3 OF RETAIL NO OF 13 33 5 336 387 RETAIL OUTLETS 5 2 2 9 SELLING

OUTLET

CASH CARDS

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 4 & Exclusive Vodafone 2 Exclusive AIRTEL Exclusive BSNL 1* 60 AIRTEL & AIRTEL BSNL 3 & RIM -

*Only one BSNL Distributor

OTHERS Outlet details RETAIL OUTLET Stationary Store Jewelry Shop + STD *Exclusively sells Vodafone NO. OF OUTLETS 1* 1*

INFERENCE: MARKET LEADER: AIRTEL Since most of the stores deal with jewelry shops and clothes apparel they dont want to diversify into the retail outlets for the cash cards This is the reason as to why the market though having comparatively larger amount of departmental stores but only Two shops has gone in for sale of cash cards. Vodafone is doing better in terms of market penetration as it is having 2 exclusive retail outlets.

5.13 IN RESPECT TO CHOURA RASTA About the market: Choura rasta is an agglomeration of bookstores, watch shops and stationary shops. There are very few showrooms. Total number of Shops Shops dealing in cash card OBSERVATION Specifications of the retail outlets NATURE OUTLETS OF RETAIL NO OF RETAIL OUTLETS SELLING : 378 : 10

OUTLET 61

CASH CARDS

(i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total . Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE

19 1 1 357 378

2 1(recharge coupon) 1 6 10

NO.OF OUTLETS 6 8 3 -

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 6 & Exclusive Vodafone 2 Exclusive AIRTEL Exclusive BSNL 3 AIRTEL & AIRTEL BSNL & RIM -

OTHERS Outlet details RETAIL OUTLET Stationary Stores Pharmaceuticals Watch Co.(showroom) Music Gallery NO. OF OUTLETS 1 1 1 1

62

INFERENCE: MARKET LEADER: AIRTEL Vs VODAFONE One remarkable thing to be noted over here is that out of 10 to12 Watch shops, 3 shops are going in for the sale of cash cards. And here Vodafone sells exclusively in 2 outlets (no exclusive outlet of AIRTEL) Moreover here the stock level is comparatively less than that o of Johri Bazaar but the % of sales is high. Here the STD/ISD/PCO shops that do sell cash cards are in fact the Subsidiary of the main shops Their details are: STD + Plastic center + Telecom outlet STD + General Stores STD + Stationery (only recharge coupon)

5.14 IN RESPECT TO KISHAN POLE BAZAAR About the market: Kishan Pole Bazaar constitutes of Toys (Bicycle) shops; Outlets dealing with Plastic based goods, Oil and Paint shops. There are good amount of Provisional (Kirana) stores also. This bazaar also has a Fine Arts college and an Ayurvedic Hospital and thus few ayurvedic medicine shops. Total number of Shops Shops dealing in cash card OBSERVATIONS; Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets OF RETAIL NO OF 8 20 6 63 RETAIL OUTLETS 2 SELLING : 338 :7

OUTLET

CASH CARDS

(v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE

304 338

5 7

NO. OF OUTLETS 6 6 4 2

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 6 & Exclusive Vodafone Exclusive AIRTEL Exclusive RIM 1 AIRTEL & ** BSNL 4 AIRTEL & RIM 2

OTHERS Outlet details RETAIL OUTLET Watch Co. + STD Stationary + STD Pan Shop Ice Supplier Oil Trading Corp. INFERENCE: MARKET LEADER: VODAFONE Vs BSNL There is considerable number of departmental (Kirana) stores but not even a single shop has gone in for sale of cash cards. Baring 1 to 2 shops VODAFONE has got more sales followed by BSNL, and then AIRTEL NO. OF OUTLETS 1 1 1 1 1

64

5.15 IN RESPECT TO NEHRU BAZAAR About the market: Nehru Bazaar is situated left to Choura Rasta. Shops mainly comprise of clothes apparels & few Electrical repair shops. Total number of Shops : 177 Shops dealing in cash card :8

OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total OF RETAIL NO OF 4 1 29 143 177 RETAIL OUTLETS 4 2 2 8 SELLING

OUTLET

CASH CARDS

2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLET 7 8 4 3

3. Exclusiveness and combination of brands selling along with AIRTEL 65

AIRTEL Vodafone 7

& Exclusive Vodafone 1

Exclusive AIRTEL -

Exclusive BSNL -

AIRTEL & AIRTEL BSNL 4 & RIM 3

OTHERS Outlet details RETAIL OUTLET Book Store Watch Company NO. OF OUTLETS 1 1

INFERENCE: MARKET LEADER: Stiff competition between AIRTEL and Vodafone. Due to its location i.e. being adjacent to the main market it faces a lot of competition. The market primitively deals in apparels and thus there are only few shops which have ventured for the retailing of the Cash card

5.16 IN RESPECT TO BAPU BAZAAR About the market: Bapu Bazaar is situated left to Johri Bazaar. Shops mainly comprise of clothes apparels, fancy stores & footwear shops. Total number of Shops Shops dealing in cash card : 192 : Nil

OBSERVATIONS: Details of the retail outlets NATURE OF RETAIL NO OF 66 RETAIL OUTLETS SELLING

OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total

OUTLET 3 3 7 185 192

CASH CARDS -

INFERENCE: This market is all about women starting from Apparels to Footwear Thus the soul of the market is care of womans need. There isnt even a single outlet that deals with cash card, this could be due to the fact that Sarogi Mansion is situated facing the main road.

5.17 IN RESPECT TO SAROGI MANSION About the market: Sarogi Mansion is a Shopping Complex. It is an extension of Bapu Bazaar. Total number of Shops Shops dealing in cash card OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet OF RETAIL NO OF 1 5 67 RETAIL OUTLETS 4 SELLING : Above 200 :4

OUTLET

CASH CARDS

Electronic Gadgets (v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE

NO. OF OUTLET 4 4 -

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 4 INFERENCE: MARKET LEADER: VODAFONE Vs AIRTEL Has high inventory stock and so is the sales. Is prominent because of its location on the main road and is Particularly famous with the youth as its just a version of a mall. & Exclusive Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL & RIM -

5.18 IN RESPECT TO INDRA BAZAAR About the market: Indra Bazaar is just attached to Jayanti Bazaar. Raizar Plaza (complex known for Telecom outlets, Computers and Electronic Gadgets) is also included in Indra Bazaars part. Though 68

this Bazaar contains all kinds of shops but there is considerable number of clothes apparels. Market is also famous for vehicle repair shops & service center. Total number of Shops Shops dealing in cash card OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE OTHERS Outlet details RETAIL OUTLET Watch Company Cassette Shop Sari Matching Center Fancy Store Auto Parts Shop INFERENCE: MARKET LEADER: VODAFONE 69 NO. OF OUTLETS 1 1 1 1 1 NO. OF OUTLET 14 14 4 4 OF RETAIL NO OF 5 8 6 18 491 528 RETAIL OUTLETS 2 4 8 14 SELLING : 528 : 14

OUTLET

CASH CARDS

The location of this area is a bit subdued in comparison to others. Lets say Raizar Plaza has more than 100 outlets dealing with cash cards & Jayanti Bazaar is known for its reliability & has a reputation to live up to. Retailers give prominence to Vodafone as they feel that a national brand sells & that its connectivity is increasing steadily by leaps & bounds. But the decision is mostly centered on the customer preference and service than the commission to the retailer.

5.19 IN RESPECT TO JAYANTI BAZAAR About the market: Jayanti Bazaar is located as an extension of M.I. road. This market is specific for Electronic goods shops(includes T.V, washing machines, refrigerators, V.C.D etc.).Moreover shops dealing with telecom products like handsets, service centers are there. Some shops are combination of both electronics and telecom outlets. This market is divided into two parts :one as main Jayanti Bazaar (with 55 shops) and second as Jayanti Bazaar Extension (with 48 shops). Total number of Shops Shops dealing in cash card : 103 : 15

OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total OF RETAIL NO OF 2 6 29 66 103 70 RETAIL OUTLETS 6 9 15 SELLING

OUTLET

CASH CARDS

2. Brands holding in the retail outlets BRAND Z VODAFONE BSNL RELIANCE NO. OF OUTLET 13 14 3 1

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 13 & Exclusive Vodafone 2 Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 3 & RIM -

INFERENCE: MARKET LEADER: AIRTEL The stock level is high that ranges from Rs.15, 000 - Rs.1, 50,000. Inspite of tough competition from Vodafone, AIRTEL seems to have an edge & people are going in for AIRTEL because of: Its Image of being first in Rajasthan. Better services. Customer preference But shops, which have newly started, prefer Vodafone assuming that it would be more profitable to them.

5.20 IN RESPECT TO TRIPLOLIA BAZAAR About the market: Tripolia Bazaar is full of Utensils shops, Watch shops, Clothes and Electrical components & repair shops. Total number of Shops Shops dealing in cash card : 382 :7 71

OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE NO. OF OUTLET 8 8 3 1 OF RETAIL NO OF 7 11 2 362 382 RETAIL OUTLETS 1 1 6 8 SELLING

OUTLET

CASH CARDS

3. Exclusiveness and combination of brands selling along with AIRTEL AIRTEL Vodafone 8 & Exclusive Vodafone Exclusive AIRTEL Exclusive BSNL AIRTEL & AIRTEL BSNL 3 & RIM 1

OTHERS Outlet details RETAIL OUTLET Repair Shop Watch Co.(showroom) INFERENCE: MARKET LEADER: AIRTEL Though the STD shops are few in numbers but only 1 is concerned NO. OF OUTLETS 2 4

72

with selling the cash cards. Watch holds most of the stock companies & none by the departmental store (kiranas). There was no exclusive shop of Vodafone. 5.21 IN RESPECT TO COLLECTRATE CIRCLE About the market: This area encloses the Court, post office, some Government offices & the residential area Bani Park. This area is near to Station also thus lot of hotels is also there. Total number of Shops Shops dealing in cash card OBSERVATIONS: Details of the retail outlets NATURE OUTLETS (i) STD/ISD/PCO (ii)Departmental Stores (iii)Telecom Outlet Electronic Gadgets (v) Others Total 2. Brands holding in the retail outlets BRAND AIRTEL VODAFONE BSNL RELIANCE INFERENCE: MARKET LEADER: Competition between AIRTEL & Vodafone. Though this area has a good amount of shops but only 3 are dealing in cash cards. Here the stocking among the shopkeepers is high as there are only 3 shops dealing in Prepaid and more numbers of customers. 73 NO.OF OUTLET 3 3 2 OF RETAIL NO 7 7 42 45 OF RETAIL OUTLETS 1 2 3 SELLING : 45 :3

OUTLET

CASH CARDS

6. ANALYSIS AND INTERPRETATION

8000 7000 6000 5000 4000 3000 2000 1000 0 all shops surveyed
total shops dealing in cash cards

others

Shops surveyed

74

FRAGMENTATION of TOTAL SHOPS

MARKET POSITION
300 250 200 150

S f . o N s p h
100 50 0 std dept specification of retail outlets
total no.of shops shops dealing in cash cards

telecom

electronics

AGE GROUP GRAPH

75

AGE GROUP
28-35 15-21 20% 15%

21-28 65%
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 gives 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 GRAPH
OCCUPATION 10% 20% 15% STUDENTS EXECUTIVES HOUSEHOLDS 55% OTHERS

As the 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, Tele - callers etc. who require mobile for their official purposes. The next category is the households, who are either housewife, small units which operate from their homes etc. They are 20% of the whole. The next segment is the students. They are 15% of the whole. And 10% of the whole is a category who is the professionals. 76

Service Provider Graph

SERVICE PROVIDER
5% 15% 30% 50%
IDEA AIRTEL VODAFONE OTHERS

The above graph shows a slice of 50%. 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 Vodafone. 305 of the people interviewed had Vodafone 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 So that could be one of the reasons of such a low percentage. The remaining 5% had trump connections. Customer Service At Airtel Graph
CUSTOMER SATISFACTION LEVEL 10% 60% 10% 20%

FULLY DISSATISFIED

PARTIALLY FULLY DISSATISFIED

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. 10% of the people were fully dissatisfied with the customer services of Airtel. This could leave an impact on the mind of the consumer. He can even switch over his brand. 20% of the people 77

seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with Airtels customer services, which is a very small amount.

1. EDUCATION OR OCCUPATION
STUDENT BSNL AIRTEL RELIANCE 15 13 15 HOUSEWIVES 4 8 5 PRO. 10 16 8 SERVICE 9 7 15 BUSINESS 21 25 21

25 20 15 10 5 0 STUDENT H.WIVES PRO. SERVICE BUSINESS BSNL AIRTEL RELIANCE

2. MALE OR FEMALE
MALE BSNL AIRTEL RELIANCE 52 48 57 FEMALE 8 12 3

78

100% 80% 60% 40% 20% 0% BSNL AIRTEL RELIANCE FEMALE MALE

3. WHICH INSTRUMENT DO CUSTOMERS HAVE?

BSNL AIRTEL RELIANCE
100 80 60 40 20 0 LG SONY SAM. PAN. MOTO NOKIA RELIANCE AIRTEL BSNL

LG 39

SONY 2 1 -

SAM. 5 15 19

PAN. 2 -

MOTO. 3 -

NOKIA 53 39 2

4. WHICH CARD CUSTOMER HAVE ?

PREPAID BSNL AIRTEL RELIANCE 22 29 30 POSTPAID 38 31 60

79

100% 80% 60% 40% 20% 0% BSNL AIRTEL RELIANCE POSTPAID PREPAID

6. WHY YOU OPT THIS COMPANYS CONNECTION?

CHEAPEST NON AVAILABILITY RELATIVE SUGGEST NO COMMENT GOOD NETWORK GOOD SERVICE BSNL 29 11 2 18 AIRTEL 7 25 10 7 4 7 RELIANCE 35 5 10 3 7

BSNL 35 30 25 20 15 10 5 0 CHEAPEST NON AVAILABILITY

AIRTEL

RELIANCE

RELATIVE SUGGEST

NO COMMENTGOOD NETWORK GOOD SERVICE

7. FROM WHERE DID YOU COME TO KNOW ABOUT THE COMPANY ?

BSNL AIRTEL RELIANCE E.M. 11 12 49 P.M. 19 15 6 DEALERS 18 8 REL. 12 25 5 ANY -

80

80 70 60 50 40 30 20 10 0 E.M. P.M. DEALERS REL ANY RELIANCE AIRTEL BSNL

8. ARE YOU AWARE ABOUT ALL THE SERVICES PROVIDED BY THIS COMPANY?
BSNL AIRTEL RELIANCE YES 40 54 48 NO 20 6 12

100% 80% 60% 40% 20% 0% BSNL NO YES

AIRTEL

RELIANCE

9. GIVE YOUR SATISFACTION LEVEL FOR THE FOLLOWING SERVICES. 9.1 BILLING SYSTEN
BSNL AIRTEL RELIANCE EXCE. 10 23 18 GOOD 5 6 37 POOR 7 5

81

40 35 30 25 20 15 10 5 0 EXCE. GOOD POOR BSNL AIRTEL RELIANCE

9.2

CUSTOMER CARE SERVICES

BSNL AIRTEL RELIANCE EXCE. 15 32 14 GOOD 40 27 40 POOR 5 1 6

120 100 80 60 40 20 0 EXCE. GOOD POOR RELIANCE AIRTEL BSNL

9.3

MESSAGING SERVICES
BSNL AIRTEL RELIANCE EXCE. 5 25 10 GOOD 30 30 42 POOR 25 5 8

82

45 40 35 30 25 20 15 10 5 0

BSNL AIRTEL RELIANCE

EXCE.

GOOD

POOR

9.4

ROMING SERVICES
BSNL AIRTEL RELIANCE
45 40 35 30 25 20 15 10 5 0

EXCE. 15 5 7

GOOD 35 35 45

POOR 10 20 8

BSNL AIRTEL RELIANCE

EXCE.

GOOD

POOR

9.5 COVERAGE OF NETWORK

83

BSNL AIRTEL RELIANCE

EXCE. 4 12 6

GOOD 30 40 49

POOR 26 8 5

EXCE. GOOD POOR

9.6

CALL CHARGES
BSNL AIRTEL RELIANCE EXCE. 10 5 20 GOOD 35 30 35 POOR 15 25 5

84

35 30 25 20 15 10 5 0 EXCE. GOOD POOR BSNL AIRTEL RELIANCE

9.7 QUALITY OF VOICE

BSNL AIRTEL RELIANCE EXCE. 10 5 20 GOOD 35 30 35 POOR 15 25 5

POOR GOOD EXCE. 0% 20% 40% 60% 80% 100%

BSNL AIRTEL RELIANCE

9.8

OTHER VALUE ADDED SERVICES (CALLER ID, CALL WATING, CALL

85

FOR WARDONS ETC.

BSNL AIRTEL RELIANCE

EXCE. 17 9 25

GOOD 33 35 27

POOR 10 16 8

10. WHEN YOU HAD ANY COMPLAINT IN HOW MANY DAYS IT HAS SOLVED ?
DAYS BSNL AIRTEL RELIANCE 0-2 20 37 19 2-4 3 11 4-6 6-8 8-10 15 MORE 20 50 24 NO 5 15 6

0 to 2 2 to 4 4 to 6 6 to 8 8 to 10 more no

11. ARE YOU THINKING TO SWITCH OFF FROM RECENT COMPANY TO OTHER COMPANY?
BSNL AIRTEL RELIANCE YES 17 37 7 NO 43 23 53

86

60 50 40 30 20 10 0 BSNL AIRTEL RELIANCE YES NO

12. ARE YOU AWARE ABOUT THE NEW COMING COMPANIES?

BSNL AIRTEL RELIANCE
60 50 40 30 20 10 0 BSNL AIRTEL RELIANCE YES NO

YES 43 57 53

NO 17 9 7

1. EDUCATION OR OCCUPATION
STUDENT BSNL AIRTEL RELIANCE 15 13 15 HOUSEWIVES 4 8 5 PRO. 10 16 8 SERVICE 9 7 15 BUSINESS 21 25 21

87

According to the data taken from customer, researcher come to know that there are maximum customers of BSNL, AIRTEL and RELIANCE are business man, besides this students also occupied second rank in this context. On the other hand house wives are those who categorized in the last position as customer.

2. MALE OR FEMALE
MALE BSNL AIRTEL RELIANCE 52 48 57 FEMALE 8 12 3

The respondents were maximum males. By this mean the maximum customer who are using services are male. And there was 57 customer of Reliance who was male, which were maximum and in female category maximum number was in Airtel connection.

3. WHICH INSTRUMENT DO CUSTOMERS HAVE?

BSNL AIRTEL RELIANCE LG 39 SONY 2 1 SAM. 5 15 19 PAN. 2 MOTO. 3 NOKIA 53 39 2

When this was asked to the customers that which instrument they use, it is found that BSNL customer have nokia and least was Sony instrument. In AIRTEL connection maximum 39 has got nokia instrument and less was Panasonic. And in Reliance LG instrument was maximum and nokia was laest.

5. WHICH CARD CUSTOMER HAVE ?

88

PREPAID BSNL AIRTEL RELIANCE 22 29 23

POSTPAID 38 31 37

The most of respondent of BSNL, AIRTEL and Reliance had post-paid card in comparative prepaid. In Reliance the connection of prepaid is not available so customers have to take post paid connection. 6. WHY YOU OPT THIS COMPANYS CONNECTION?
CHEAPEST NON AVAILABILITY RELATIVE SUGGEST NO COMMENT GOOD NETWORK GOOD SERVICE BSNL 29 11 2 18 AIRTEL 7 25 10 7 4 7 RELIANCE 35 5 10 3 7

When this question was asked to the respondent BSNL holder reply that this card is cheapest and 18 go for no comment. Maximum number of customer replied non-availability of other card when they take connection. The Reliance respondent gives the reason for opting this card the cheapest value and minimum opt for good networking.

7. FROM WHERE DID YOU COME TO KNOW ABOUT THE COMPANY?

BSNL AIRTEL RELIANCE E.M. 11 12 49 P.M. 19 15 6 DEALERS 18 8 REL. 12 25 5 ANY -

19 respondent of BSNL replied that he has come to know about the company from print media and minimum from electronic media. The respondent of Airtel is 25 comes fro relatives and least number comes to know from dealers. And in Reliance maximum comes to know fro electronic media and least opt on advice of relatives. 89

8. ARE YOU AWARE ABOUT ALL THE SERVICES PROVIDED BY THIS COMPANY?
BSNL AIRTEL RELIANCE YES 40 54 48 NO 20 6 12

Maximum customer of BSNL, Airtel and Reliance know about the services provided by these company. According to fact and finding it is founded that 66.67%, 90% and 80% customer of BSNL, Airtel and Reliance respectively know about the facility provided by these company.

9. GIVE YOUR SATISFACTION LEVEL FOR THE FOLLOWING SERVICES. 9.1 BILLING SYSTEN
BSNL AIRTEL RELIANCE EXCE. 10 23 18 GOOD 5 6 37 POOR 7 5

There was 63.33% and 51.67% customer of BSNL and Airtel respectively who has prepaid card services hence they have no need of billing sustem. Out of remaining 33.67% of BSNL customer 45.45% says that this system is excellent, 22.72% said that is good and rest said it is poor. In case of Airtel out of remaining 48.33% customer, 79.31% said that it is excellent and rest said it is good. Billing system is especially important in reliance because this company has no prepaid card facility. Out of its customers 30% said it is excellent, 61.67% said it is good and rest said it is poor.

9.2

CUSTOMER CARE SERVICES

BSNL AIRTEL RELIANCE EXCE. 15 32 14 GOOD 40 27 40 POOR 5 1 6

90

25% BSNL customer said that this is excellent, 66.67% said it is good and rest said it is poor. According to 53.33% customer of Airtel this services is excellent 45% said that is good remaning takes it is poor. Reliance customers said on an average this service is good.

9.3

MESSAGING SERVICES
BSNL AIRTEL RELIANCE EXCE. 5 25 10 GOOD 30 30 42 POOR 25 5 8

Airtel customers are more satisfied regarding messaging service, 25 said it is excellent and 30 customer said it poor. In Reliance 42 customer said it is good and 10 said it is excellent remaning said it poor. The main reason was that customer cant send message to other cardholder and in BSNL maximum 25 customer was dissatisfied and said we.

9.4

ROMING SERVICES
BSNL AIRTEL RELIANCE EXCE. 15 5 7 GOOD 35 35 45 POOR 10 20 8

Regarding roaming services, BSNL customers 35 said it is good and

15 excellent and

remaining told it poor. And in Airtel customers were least satisfied because non-availability of network in other city. And in Reliance 45 said it good and the customers were also least satisfied with this service.

9.5

COVERAGE OF NETWORK
BSNL AIRTEL RELIANCE EXCE. 4 12 6 GOOD 30 40 49 POOR 26 8 5

When this question was asked 50% of BSNL customer said good service and 6.67% opt for excellent and 43.3% remaining told this service as poor. In Airtel 66.67% told its service is 91

good and 20% excellent and remaining 13.33% said it poor. In Reliance 81.67% said good and 10% for excellent and 8.33% for poor.

9.6

CALL CHARGES
BSNL AIRTEL RELIANCE EXCE. 10 5 20 GOOD 35 30 35 POOR 15 25 5

It was found that BSNL customer were more satisfied. Airtel customer also rank these service in good find of service. Reliance customer supposes that this service has good find of services. Reliance customer suppose that this service has good performance. According to 33.33% customer of reliance it is the excellent service.

9.7

QUALITY OF VOICE
BSNL AIRTEL RELIANCE EXCE. 10 5 20 GOOD 35 30 35 POOR 15 25 5

In BSNL 66.67
% said it is good service 16.67% said it is excellent and remaining said it is poor. In Airtel 53.33% said it good 28.33% said it excellent and remaining said it poor.and in Reliance 65% said it good 25% said it excellent and remaining said it poor.

9.8

OTHER VALUE ADDED SERVICES (CALLER ID, CALL WATING, CALL

FOR WARDONS ETC.

92

BSNL AIRTEL RELIANCE

EXCE. 17 9 25

GOOD 33 35 27

POOR 10 16 8

Regarding this service in BSNL 55% said it is good 28.33% excellent and remaining poor. In
Airtel 58.33% said it good, 15% said it excellent and remaining said it poor. And in Reliance 45% said it good 41.46% as excellent and remaining as poor.

10. WHEN YOU HAD ANY COMPLAINT IN HOW MANY DAYS IT HAS SOLVED?
DAYS BSNL AIRTEL RELIANCE 0-2 20 37 19 2-4 3 11 4-6 6-8 8-10 15 MORE 20 50 24 NO 5 15 6

According to the facts, it was found that BSNL 20 get solution within 2 days and 20 more than 10 days and 5 customers never had any problem. In Airtel 37 get solved it within 2 days and 15 never had any problem. In Reliance 19 got solution within 2 days and 24 in more than 10 days and 6 never had any problem.

11. ARE YOU THINKING TO SWITCH OFF FROM RECENT COMPANY TO OTHER COMPANY?
BSNL AIRTEL YES 17 37 NO 43 23

93

RELIANCE

53

When this question was asked than maximum number of Reliance customer, which was 53, said no and maximum number 37 of Airtel said yes. And in BSNL 43 said not to switch off.

12. ARE YOU AWARE ABOUT THE NEW COMING COMPANIES?

BSNL AIRTEL RELIANCE YES 43 57 53 NO 17 9 7

When this question was asked then most 53 customer of Reliance said yes and 51 in Airtel, 43 of BSNL The fact was showing that the entire respondent is aware about the new comings companies

94

7. SWOT ANALYSIS
Strengths :
Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. It has a strong brand name, superior quality products and an enviable distribution network. It has a clear and well-defined organization structure and limits of financial authority. Increase in advertisement spends affect the companys margins. The companys bottom line falls victim to the bloated and highly paid workforce, which affects its margins.

Weakness:
Little efforts over the Advertising of products. Distribution channel is not accurately categorized. Premium priced products, hence cant compete in low price segment. No separate strategy for rural market.

Opportunities :

The company's financial performance can receive a major boost from its cost reduction efforts.

There is a lot of scope of product and market diversification. Exports of products will also have huge chances in the coming years. 95

Threats

The slowdown in the economy has restricted topline growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario.

Companys major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also increases companys production and distribution cost.

96

8. CONCLUSION
It is seen that in the normal course of business as presented Knowledge of market is essential for the development of the product. Thus apparently there is an increasing need for the development of product in-syncro not only with customer needs but also try to provide more than customer basic needs. With the customer now becoming tech-savvy and prevalence of other service providers viz. Vodafone, Reliance, and BSNL etc. has resulted in a paradigm shift regarding consumer behavior and preferences and thus incorporation of changes effectively is the key word to success. Hence the effect of globalization is perceptible. This dynamic change has revolutionized marketing. CONSUMER IS THE KING is the new value proposition that is being called upon .In addition, there are many competitors providing more or less the same services and fighting for a greater share of pie. It is not surprising that new marketing ideas keep surfacing so as to meet the new market place tests. The problem is further compounded with anti-regional brand drive i.e. AIRTEL the voice of Rajasthan was also the pride of Rajasthan and Airtels takeover has resulted in some friction. This may lead to a tendency towards a general compromise / shifting of brands by the consumer in the market.

One way to deal with the problem is to ensure that some sort of solidarity is worked upon and transgression of AIRTEL into Airtel is smooth. The survey has identified major areas like Raisar plaza, M.I. Road and other prominent areas where emphasis has to be laid, so that appropriate targeting and distribution of cash cards for the different segments brings in results, moreover absence of exclusive showrooms or tie up with cellphone showrooms would be beneficial. Few giant players in the telecom sector have lead to cutthroat competition and 97

many organizations in the market are offering same/similar type of product/s with Vodafone ruling the roost (Jaipur). In the current market scenario, retailers play important role to create the image of the company and the product plus incentives are to be better packaged so that the network acts as a forum to advocate, pursue and promote the brand Airtel .The companies have to convince the customer and therefore advertising plays an important role in promoting the companys products and with the acquisition of AIRTEL by Airtel the onus has doubled.

9. SUGGESTIONS & RECOMMENDATIONS

SUGGESTIONS: Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned. 1. PRODUCT Modification must be brought about in AIRTEL, in terms of quality. Its demand should be increased. 2. PLACE The brands must be made available easily in, PCO & general stores. 3. PROMOTION Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. Free samples should be distributed among the prospects. 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.

98

RECOMMENDATIONS
I have made following recommendation to the company after doing the summer training there:

The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesnt matches with the samples quality shown before giving orders.

The company should make its marketing strategy flexible enough in order to face competition.

The company should keep an eye on the proper delivery of the goods to exporter on time, as it has been recommended by exporters to make the delivery on time. The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company.

The company should offers such rate in the market so that it may able to catch a biger market share and it should be able to compete with the local traders and commission agents while having a brand name.

The company should take the opinion of exporters from time to time to know what problems they are facing from the companys side? And if any change they require in present supplying condition?

99

10. APPENDIX (QUESTIONNAIRES)

Q.1 For how long you have been using Airtel Product? 0-2 Years 2-5 Years 5-10 Years More than 10 years

Q.2 Are you using other product instead of Airtel? Yes No

Q.3 Among them, which Brand you, prefer most? Idea Vodafone Airtel

Q. 4 How would you rate the experience with Brand?

Excellent Idea Vodafone Airtel

Good

Averag e

Below Average

100

Q.5 If yes, which sources are used? Magazines Dealers Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other

Q.6

What are the features you look for in a product before making purchase decision? Give

preferences. Brand credibility Price and Discount After sales services and parts, network Value for money Vehicle performance Add on features or ergonomics of design

Q.7.

Which of these marketing / sales schemes attracts you while purchasing any

connection? Good Network Discount scheme Service package Any other

101

Q.8

If you have to purchase a new connection or product in near future, which Brand will

you go for and why? ___________________________________________________________ ___________________________________________________________

Q.9

Are you aware of various promotional activities being run by Airtel, if yes then how? Are

you satisfied with these promotional activities? Very Satisfied Customer Care By Ad Films By Camp 24 hrs call center services Satisfied Somewha t Satisfied Not satisfied

Q.10 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest ) 1 After Sale service Maintenance Product as per expectation 2 3 4 5

102

11. BIBLIOGRAPHY
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2nd edition, Wiley, New York. Chapters 2 and 3, pp. 29-66.

5. Malhotra N.K., (2005), Marketing Research- An applied orientation, New Delhi,

Prentice Hall of India Private Ltd 6. Panda N.K., Sahadev Sunil, Ditribution Channel, Sales and Distribution Management, Oxford University Press, Fifth Edition 2006.
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Implementation & Control, Macmillan India, DaryaGanj.

8. Rao Vithala and Steckel Joel (1998), Analysis for Strategic Marketing, Prentice

Hall, Second Edition 2005. Websites: 1. http://www.knowthis.com/principles-of-marketing-tutorials/marketing-planning-andstrategy/

2. 3. 4. 5.

http://www.airtelworld.com/aboutairtel http://www.slideshare.net/nusantara99/marketing-mnagement http://en.wikipedia.org/wiki/BhartiAirtel http://www.financialexpress.com/news/airtel_brand_promotion_in_india

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Magazines & Publications:

1. 2. 3.

Economics and Business Facts for you (Jan 2009) India page of HT paper (Dec. 27,2009) The Business world (Feb 2009)

Jitendra Virahya s
JVIRAHYAS@GMAIL.COM

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