Joseph Kurian

1
CHAPTER 1
INTRODUCTION
1.1
INDUSTRY PROFILE
The Indian telecommunications industry has experienced high growth

in recent years. According to Cellular Operators Association of India (COAI), total
number of mobile subscribers in India has increased from approximately 0.3
million as of March 1997 to approximately 13.34 million as of April 30, 2003. The
total number of fixed line subscribers has increased from approximately 14.5
million as of March 31, 1997 to approximately 37.7 million as of March 31, 2002.
The following Table illustrates the growth in the Indian telecommunications
industry.
As on March 31st
Mobile Subscribers
Fixed Line Subscribers
(thousands)**
1997
1998
1999
2000
2001
2002
2003
2004
339
882
1200
1884
3557
6431
13340
26154
Not
Available
Not
Available
14543 17802 21594
26511 32436 37712
*Data released by COAI periodically

**Data for 1997 to 2001 is based on annual reports of BSNL. Data for 2002 is
based on Government Statistics.
The Indian telecommunications market is under penetrated and hence

offers tremendous growth potential. The mobile and fixed line penetration levels
in India are lower than those in most developed countries in the world. The
following factors are expected to contribute to the growth of the Indian
Telecommunications Industry:
Economic Growth and continued development of the Indian

Economy:
Higher growth rate of service oriented sector, leading to an

increased demand for telecommunication services;
Increased use of Information Technology and Internet , leading to a

large demand for data communication services;
Declining tariffs, reduced equipment cost and reduced handset

costs over time.
Increasing customer choice and demand for value added services;

and
Increasing globalisation of the Indian Business, leading to increase

international voice & data traffic.
Industry analysts expect the telecom services industry in India to

grow rapidly.
1.1.1 Regulatory Framework
The government has liberalized the telecommunication services sector

and opened it for private participation. The regulatory establishment for the
certain telecommunication services is as follows:
Mobile services: Four licenses have been awarded in each of the

22-telecom circles. Three licenses have been awarded to private
service providers and one to the government operator. The private
licenses have been issued based on a bidding process.
Fixed line Services: There is no restriction on the number of players

in the fixed line segment. The licenses have been awarded based
on a fixed entry fee, issued on a non-exclusive basis for a period of
10 years, extendable by 10 years at a time.
National & International Long Distance Services: There is no

restriction on the number of players in the long distance markets.
Licenses are issued based on an entry fee, on a non-exclusive
basis for 10 years, extendable by 10 years at a time.
Internet Services: there is no restriction on the number of players in

the ISP segment.
1.1.2 Industry Structure
The present operational regulatory structure of telecommunications

services industry in India is set forth below:
Ministry of Communications
Telecom Commission
(Policy Role)
MTNL
Private
Mobile
Licensees
DOT
(Policy maker
& Licensor)
Private
Fixed line
Licensees
BSNL
TRAI &TDS TDS

(Regulation &
Adjudication)
VSNL
Other
Private
Licensees
1.2 COMPANY PROFILE
Bharti Enterprises has been at the forefront of technology and has

revolutionized telecommunications with its world-class products and services.
Established in 1985, Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile
service in Delhi, first private basic telephone service provider in the country, first
Indian company to provide comprehensive telecom services outside India in
Seychelles and first private sector service provider to launch National Long
Distance Services in India. As of April 30, 2004, Bharti had approximately 7.42
million total customers nearly 6.76 million mobile and 657,000 fixed line
customers.
Its services sector businesses include mobile operations in Andhra

Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka,
Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab,
Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has a fixed-line
operations in the states of Madhya Pradesh and Chattisgarh, Haryana, Delhi,
Karnataka and Tamil Nadu and nationwide broadband and long distance
networks.
Bharti has recently launched national long distance services by offering

data transmission services and voice transmission services for calls originating
and terminating on most of India's mobile networks. The Company is also
implementing a submarine cable project connecting Chennai-Singapore for
providing international bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals

and cordless phones. Apart from being the largest manufacturer of telephone
instruments, it is also the first telecom company to export its products to the USA.
1.2.1 Bharti Group -Structure
The Bharti group has been structured to create specialization, both

functional and operational to serve the best interests of the organization as well
as the customer. Given below is a graphical representation of the group
structure:
1.2.2 Bharti Tele-Ventures

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 telecommunications services based on a strong customer base
consisting of approximately 8.02 million total customers which constitute,
approximately 7.34 million mobile and approximately 678,000 fixed line

customers, as of May 31, 2004.
1.2.3 BUSINESS STRATEGY
Bharti Tele-Ventures' strategic objective is to capitalise 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 objective:
Focus on maximising 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;
Focus on satisfying and retaining customers by ensuring high level of

customer satisfaction;
Leverage strengths of its strategic and financial partners; and
Emphasise on human resource development to achieve operational

efficiencies.
1.2.4 Businesses Reach
Bharti Tele-Ventures current businesses include
Mobile services
Fixed-line
National and international long distance services
VSAT, Internet services and network solutions
CHAPTER 2
AIM OF THE PROJECT
The Indian Telecommunication industry has grown into a billion dollar

industry.
In this unforgiving highly competitive industry it is not just doing
something right that matters but it is also about doing nothing wrong. Making
profit does not only mean a large customer base but also, depends on usage
level of the services, provided to the customers.
The telecom companies comes out with many schemes and offers, to
attract customers and to make them use the various schemes provided by these
companies. The aim of this study would supplement this effort of the company in
a small way.
2.1 OBJECTIVES OF THE STUDY
For an organization to be successful they need to be equipped with the

current position of their share in the market. They need to understand the new
and the unidentified potential available in the market. The organization needs to
understand the changing scenario taking place in the market with respect to their
business. All these could be achieved only by understanding the market
sentiments.
Thus through a Study to understand the current penetration level of
their product, the organization can motivate the current efforts of their sales force
and efforts could be taken to reduce the weakness, complaints, and also could
come up with new attractive schemes according to the expectations of the
retailers. Keeping the above view in the mind objectives for the study are set and
are given below.
2.1.1 Primary Objective
To find out the current Retail Penetration level of Airtel PrePaid cards in
Coimbatore.
2.1.2 Secondary Objectives
To identify the factors taken into account by the retailers while they go
for Shelfing/Non Shelfing of Airtel products.
To identify the Performance of Airtel Pre Paid card in Coimbatore.
2.2 SCOPE OF THE STUDY
The study undertaken at Bharti Cellular Ltd aims to find out the current
level retail penetration of its Airtel PrePaid cards and also to identify the
preferences taken into account by the retailers while they go for Shelfing/Non
Shelfing the product.
This has been achieved by taking down the respondents views and
responses individually by the researcher, using a questionnaire. The researcher
asks the research questions in the questionnaire to the respondent in a face-toface fashion and records the response, which is then used for the analysis and
interpretation part of the study.
Once the study is through, the researcher would be in a position to

advise the company about its current level of retail penetration in the respective
areas where the study has been undertaken. The study would also help the
company to find out the general preferences / factors considered by the retailers
while they go for Shelfing/Non Shelfing.
The company could also find out the performance of its PrePaid cards
in the existing retail outlets when compared to its competitors, the service
provided by its distributors to the retailers, etc.
All these would help the company in tapping the business in the new
potential areas and also to come up with new attractive offers and schemes that
would motivate the retailers to shelf the products and do the business for the
company.
10
2.3 LIMITATIONS OF THE STUDY
The project Retail penetration level of Airtel pre paid cards has
various limitations.
Some of the limitations that would be subjected to the
research are given below:

1.
The presence of uneducated sales people in the retail outlet, who is

merely unaware of the word questionnaire itself, is one of the main
limitations to the research.
2.
The non-availability of the concerned person in the outlet who could

disclose all the information required for the study.
3.
During certain time of the day, most of these outlets would be very
busy with their business, as they would not encourage all these
research activities.
4.
To target all retail outlets during this short span of time is

considered as another limitation.
11
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design
Research design is the specification of procedures for collecting and

analyzing the data necessary to help, identify or react to a problem or opportunity
such that the difference between the cost of obtaining various levels of accuracy
and the expected clue of the information associated with each level of accuracy
is maximized. A Performance Monitoring type of research design is applied for
the Study on Retail Penetration Level Of Airtel PrePaid Cards in
Coimbatore, with respect to the Area of VSV Agencies.
3.2 Sample Design
12
The population as a whole is considered for the study, as the size of

the population is finite in nature. Under the boundary region of VSV agencies
and with respect to the category of outlets mentioned by the company there is a
total of 387 retail outlets in Coimbatore. Thus this 387-retail outlet forms the
population size for the study.
3.3 Sample Size
Since the population as a whole is being considered for the study, the
size of the sample pertains to the size of the population i.e. 387 retail outlets.
3.4 Sampling Frame
The frame refers to the area where the primary data would be
collected. The areas taken into consideration for the study purpose includes R S
Puram, Peelamedu Area, Cross Cut Road, Ramnagar, and P N Pallayam. These
five areas are selected primarily because; these are those areas, which comes
under the boundary of VSV Agencies. Other than that certain other factors such
as Income level of the people, Walk in Facility, Accessibility, etc are also
considered while selecting the sample frame. Thus from the above mentioned
sampling frame, the category of outlets which would be concentrated for the data
collection procedures would be; Mobile Service Centre, Duty Paid Shop, Books &
Stationary Shop, Pharmacy Shop, General Stores, Dept. Stores, Browsing
Centre, and PCO Shop.
3.5 Sampling Technique
13
Since the population is clearly defined there is on need for the

sampling procedure and sampling techniques. Thus this is not applicable for this
type of a study.
3.6 Data Collection Procedure
Data collection is the most impeccant aspects in the research process.

The data is collected from the respondents using a structured questionnaire.
There are two types of data i.e. Primary data and Secondary data.
3.6.1 Primary Data - This type of data is collected directly from the respondents
by the researcher using the questionnaire as an instrument and personal
interview as the communication medium for collecting it. The researcher directly
visits at all the five sampling frame and asks the research questions to each
respondent and record it for the further analysis and interpretation purpose.
3.6.2 Secondary Data The researcher collects this type of data indirectly,
before starting of with his research activities. There are two types of secondary
data. They are;
3.6.2.1 Internal Data: The internal data for the research activities such as the
total No. of Airtel Outlets, total No. of Airtel PCO outlets, etc are collected from the
company database.
14
3.6.2.2 External Data: The external data such as the total No. Of retail outlets
with respect to the area and category is collected from the respective Coimbatore
Zonal Corporation Offices.
Thus after consolidation, the total number of retail outlets available in

the sample frame with respect to the category of outlet is given below, which
would clearly define the population.
CATEGORY OF OUTLETS
Mobile
Service
Centre
Duty
Paid
Shop
Book &
Stationa
ry
Phar
macy
Gen.
Stores
Dept
Stores
Brows
ing
Centre
PCO
Shops
Others
Peelamedu
14
16
18
15
12
42
P.N. Palayam
19
10
17
Ram Nagar
12
11
28
R.S. Puram
Cross Cut
Road
12
18
19
12
Area
Total
3.7 Features of Questionnaire
The questionnaire was designed keeping in mind the research

objectives for the study, respondents ability and willingness to answer accurately,
etc. The preliminary considerations required for the preparation of the
questionnaire have been taken care.
The type of questions incorporated in the questionnaire includes,
387
15
1)
Open-ended Questions:
Open-ended questions are those questions
where no alternatives are provided and the respondent answers within the
implied limit.
Eg: Your complaints, remarks suggestions for improving the services of
Airtel, please record below?
2)
Dichotomous Questions: These questions are closed ended questions

with only two options like yes/no, true/false.
Eg:
Does your outlet sell telecom products such as PrePaid Cards,
recharge coupons etc.

3)
Multiple choice Questions: These questions include 3 to 7 specified

options and the respondent should select form the choices given.
Eg: Are you satisfied with its performance in the store?
(a)
Very Satisfied
(b)
Satisfied
(c)
Neutral
(d)
Not Satisfied
(e)
Not at all Satisfied
3.8 Statistical Tools Used
Since the population as a whole is being considered for the study,

percentage analysis tool is used for the analysis and interpretation purpose. The
inferences and conclusions are drawn through this process.
16
CHAPTER 4
ANALYSIS AND INTERPRETATION
The collected data is analysed through simple percentage and charts

and these are used to interpret the results from the data. The inferences given
below the Table will make the reader to understand the problem as well as the
solution to the problem.
17
TABLE 1
TABLE SHOWING THE DISTRIBUTION OF OUTLET ON THE BASIS
OF ITS CATEGORY
Area
Mobile
Service
Duty
Paid
Shop
Book &
Stationary
Pharmacy
General
Stores
Dept
Stores
Browsing
Centre
PCO
Shop
Others
PEELAMEDU
11
0.78
13
14.06
12
3.9
3.91
9.38
32.81
P.N
PALAYAM
11
11
23.46
11
12
1.23
9.88
20.99
RAM NAGAR
2.63
10.53
16
14
1.32
9.21
36.84
R.S. PURAM
14
5.68
20
21.59
6.8
4.6
4.55
9.09
13.64
CROSS CUT
ROAD
54
15.38
23
7.69
Interpretation
A maximum of 32.81 % and 14.06 % belong to Others Category and
Pharmacy Category in the Peelamedu Area.
A maximum of 23.46 % and 20.99 % belong to Pharmacy category
and Others Category in P N Pallayam Area.
A maximum of 36.84 % and 15 % belong to Others Category and
General Stores Category in Ramnagar Area.
A maximum of 20.45 % and 13.64 % belong to Pharmacy and Others
category in the R S Puram Area.
A maximum of 53.85% and 23.08 % belong to Mobile Service Centre
and Books and Stationary Shop Category in Cross Cut Road Area.
18
CHART 1
Chart Showing the Distribution of Categories of Outlets in 5 different Areas
19
TABLE 2
TABLE SHOWING DISTRIBUTION OF TELECOM / NON TELECOM OUTLET
AREA
TELECOM
NON TELECOM
PEELAMEDU
41.41
58.59
P.N. PALAYAM
44.44
55.56
RAM NAGAR
44.74
55.26
R.S. PURAM
52.27
47.73
100
CROSS CUT ROAD

Interpretation
A Telecom Outlet is defined as one which Shelf Pre paid cards in their
outlet. A Non Telecom outlet is defined as one which does not shelf Pre Paid
cards in their Outlet. Thus among the category of outlet defined by the company,
the % of outlet selling Telecom / Non Telecom Outlet in different area are given
below.
In Peelamedu area we have a 41.41 % to 58.59 % ratio between
Telecom and Non Telecom outlet. A 44.44 % to 55.56 % ratio between Telecom
and Non Telecom outlet in P N Pallayam Area, A 44.74 % to 55.26 % ratio
between Telecom and Non Telecom outlet in Ram Nagar Area, A 52.27 % to
47.73 % ratio between Telecom and Non Telecom outlet in R S Puram Area, A
100 % ratio between Telecom and Non Telecom outlet in P N Pallayam Area,
20
21
TABLE 3
TABLE SHOWING THE DISTRIBUTION OF COMPETITORS IN THE
TELECOM OUTLETS
AREA
Aircel
BPL
BSNL
Reliance
PEELAMEDU
P.N. PALAYAM
RAM NAGAR
R.S. PURAM
CROSS CUT
ROAD
21.27
23.24
23.26
22.49
21.27
20.42
19.38
20.12
17.65
16.9
15.5
15.38
14.03
14.08
12.4
12.43
Tata
Trupaid
3.17
2.11
3.88
2.96
18.64
20.34
16.95
11.86
10.17
Airtel
22.62
23.24
25.58
26.63
22.03
Interpretation
Peelamedu Area has a 41.41 % of Telecom outlets. Among these
22.62 % of Outlets had Airtel, and its nearest competitor in this area was Aircel
and BPL with a 21.27 % each. Tata Trupaid had the minimum presence of 3.17 %
in this area. P N Pallayam Area has a 41.44 % of Telecom outlets. Among these
23.24 % of Outlets had Airtel and Aircel. Its nearest competitor in this area was
BPL with a 20.42 %. Tata Trupaid had the minimum presence of 2.11 % in this
area.
Ram Nagar Area has a 44.74 % of Telecom outlets. Among these
25.58 % of Outlets has Airtel. Its nearest competitor in this area was Aircel with a
23.26 % of presence. Tata Trupaid had the minimum presence of 3.88 % in this
area. R S Puram Area has a maximum of 100 % of Telecom outlets. Among
these 26.63 % of Outlets has Airtel. Its nearest competitor in this area was Aircel
with a 22.49 % of presence. Tata Trupaid had the minimum presence of 2.96 %
in this area.
Cross Cut Road has a 52.27 % of Telecom outlets. Among these
22.03 % of Outlets has Airtel. Its nearest competitor in this area was BPL with a
20.34 % of presence. Tata Trupaid and Reliance has a minimum presence of
10.17 % and 11.16 % in this area.
22
23
TABLE 4
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS BY THE
RETAILERS FOR THE PEELAMEDU AREA
Tata
Trupaid
Airtel
15.63
1.56
46.88
11.72
23.44
0.78
21.09
34.38
17.19
10.16
0.78
17.19
20.31
21.88
41.41
12.5
2.34
1.56
Rank 5
5.47
22.66
21.88
37.5
1.56
10.16
Rank 6
1.56
2.34
0.78
92.97
3.13
Parameters
Aircel
BPL
BSNL Reliance
Rank 1
21.09
8.59
5.47
Rank 2
32.81
10.94
Rank 3
20.31
Rank 4
Interpretation
In Peelamedu area Airtel was Ranked 1 by 46.88 % of the retailers,
Ranked 2 by 21.09 % of Retailers, Ranked 3 by 17.19 % of Retailers, Ranked 4
by 1.56 % of Retailers, Ranked 5 by 10.16 % of Retailers, and Ranked 6 by 3.13
% of Retailers.
Among the other brands, Aircel was Ranked 1 by 21.09 % of retailers,

BPL was Ranked 1 by 8.59 % of retailers, BSNL was Ranked 1 by 5.47 % of
retailers, Reliance was Ranked 1 by 15.63 % of retailers, Tata Trupaid was
Ranked 1 by 1.56 % of retailers for the area Peelamedu.
24
25
TABLE 5
RETAILERS FOR THE P N PALLAYAM AREA
Parameters
Aircel
BPL
BSNL
Reliance
Tata
Trupaid
Airtel
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
23.17
39.02
21.95
13.41
2.44
0
3.66
6.1
29.27
34.15
26.83
0
4.88
7.32
19.51
43.9
23.17
1.22
19.51
20.73
13.41
4.88
41.46
0
0
0
0
1.22
1.22
97.56
46.34
29.27
15.85
2.44
4.88
1.22
Interpretation
In P N Pallayam area Airtel was Ranked 1 by 46.34 % of the retailers,
by 2.44 % of Retailers, Ranked 5 by 4.88 % of Retailers, and Ranked 6 by 1.22
% of Retailers.
Ranked 1 by 0 % of retailers for the area P N Pallayam.
26
27
TABLE 6
RETAILERS FOR THE RAM NAGAR AREA
Parameters
Aircel
BPL
BSNL
Reliance
Tata
Trupaid
Airtel
Rank 1
15.79
2.63
18.42
25
36.84
Rank 2
26.32
9.21
17.11
25
22.37
Rank 3
13.16
15.79
25
23.68
22.37
Rank 4
28.95
22.37
27.63
13.16
7.89
Rank 5
15.79
10.53
11.84
5.26
Rank 6
1.32
1.32
1.32
92.11
2.63
Interpretation
In Ram Nagar area Airtel was Ranked 1 by 36.84 % of the retailers,
by 7.89 % of Retailers, Ranked 5 by 0 % of Retailers, and Ranked 6 by 2.63 % of
Retailers.

retailers, Reliance was Ranked 1 by 25 % of retailers, Tata Trupaid was Ranked
1 by 0 % of retailers for the area Ram Nagar.
28
29
TABLE 7
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS
BY THE RETAILERS FOR THE R S PURAM AREA
Parameters
Aircel
BPL
BSNL
Reliance
Tata
Trupaid
Airtel
Rank 1
19.32
7.95
5.68
18.18
2.27
46.59
Rank 2
36.36
7.95
11.36
18.18
26.14
Rank 3
23.86
42.05
12.5
7.95
1.14
12.5
Rank 4
9.09
29.55
42.05
15.91
1.14
2.27
Rank 5
10.23
9.09
27.27
38.64
6.82
6.82
Rank 6
1.14
3.41
1.14
1.14
88.64
5.68
Interpretation
In R S Puram area Airtel was Ranked 1 by 46.59 % of the retailers,
Ranked 2 by 26.14 % of Retailers, Ranked 3 by 12.5 % of Retailers, Ranked 4 by
2.27 % of Retailers, Ranked 5 by 6.82 % of Retailers, and Ranked 6 by 5.68 % of
Retailers.

Ranked 1 by 2.27 % of retailers for the area R S Puram.
30
31
TABLE 8
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS
BY THE RETAILERS FOR THE CROSS CUT ROAD AREA
Parameters
Aircel
BPL
BSNL
Reliance
Tata
Trupaid
Airtel
Rank 1
53.85
7.69
38.46
Rank 2
30.77
7.69
7.69
7.69
46.15
Rank 3
7.69
53.85
15.38
15.38
15.38
Rank 4
7.69
15.38
38.46
38.46
Rank 5
15.38
30.77
30.77
15.38
Rank 6
7.69
7.69
84.62
Interpretation
In Cross Cut Road area Airtel was Ranked 1 by 38.46 % of the
retailers, Ranked 2 by 46.15 % of Retailers, Ranked 3 by 15.38 % of Retailers,
Ranked 4 by 0 % of Retailers, Ranked 5 by 0 % of Retailers, and Ranked 6 by 0
% of Retailers.

BPL was Ranked 1 by 7.69 % of retailers, BSNL was Ranked 1 by 0 % of
retailers, Reliance was Ranked 1 by 0 % of retailers, Tata Trupaid was Ranked 1
by 0 % of retailers for the area Cross Cut Road.
32
33
TABLE 9
TABLE SHOWING THE RETAILERS CHOICE ON THE PRODUCTS
PERFORMANCE IN THEIR OUTLET
Peelamedu
P.N Palayam
Ram
Nagar
R.S
Puram
Cross Cut
Road
Airtel
36.83
32.04
25.1
44.1
40.65
BPL
19.67
19.35
7.69
9.59
9.09
BSNL
4.92
16.13
15.38
2.74
Reliance
9.84
6.45
5.13
5.48
28.75
26.03
46.7
38.1
50.25
Card Name
Tata Trupaid
Aircel
Interpretation
When retailers of all the five areas was asked to name one product
which they felt is performing in their outlet, the response was as given below.
In all the area most of the retailers named Airtel and Aircel, as the product
performing in their outlet. In Peelamedu area the ratio was 36.83 % to 28.75 %.
In P N Pallayam area the ratio was 32.04 % to 26.03 %. In Ram Nagar area the
ratio was 25.1 % to 46.7 %. In R S Puram area the ratio was 44.1 % to 38.1 %. In
Cross Cut Road area the ratio was 40.65 % to 50.25%.
34
35
TABLE 10
TABLE SHOWING THE REASONS POINTED OUT BY THE RETAILERS
FOR THE PERFORMANCE OF AIRTEL BRAND IN THEIR OUTLET
5.41
Ram
nagar
20.59
R.S.
Puram
8.51
Cross Cut
Road
0.5
4.17
5.41
2.94
38.3
9.5
Choice 3
8.33
5.41
29.41
8.51
10.5
Choice 4
33.33
43.24
5.88
2.13
21.5
Choice 5
4.17
8.11
14.71
6.38
18.5
Choice 6
45.83
32.43
26.47
36.17
39.5
Parameters
Peelamedu
P.N. Palayam
Choice 1
4.17
Choice 2
Interpretation
When retailers of all the five areas were asked to state the reason for
the brand Airtels performance in their outlet, the response was as given below.
In area Peelamedu, 45.83 % of retailers stated the reason for the Airtels
performance as Choice 6 . 33.33 % of retailers stated the reason for the Airtels
performance as Choice 4 . In area P N Pallayam, 43.24 % of retailers stated the
reason for the Airtels performance as Choice 4 . 32.43 % of retailers stated the
reason for the Airtels performance as Choice 6 .
In area Ram Nagar, 29.41 % of retailers stated the reason for the
Airtels performance as Choice 3 . 26.47 % of retailers stated the reason for the
Airtels performance as Choice 6 . In area R S Puram, 38.3 % of retailers stated
the reason for the Airtels performance as Choice 2 . 36.17 % of retailers stated
the reason for the Airtels performance as Choice 6 .
In area Cross Cut Road, 39.5 % of retailers stated the reason for the
Airtels performance as Choice 6 . 21.5 % of retailers stated the reason for the
Airtels performance as Choice 4 .
36
37
TABLE 11
TABLE SHOWING THE % OF TELECOM OUTLETS SELLING AIRTEL
PREPAID CARDS AND SIM CARDS
AREA
YES
NO
PEELAMEDU
78.13
21.88
P.N. PALAYAM
91.43
8.57
RAM NAGAR
97.06
2.94
R.S. PURAM
52.27
47.73
100
CROSS CUT ROAD
38
TABLE 12
TABLE SHOWING THE SATISFACTION LEVEL OF RETAILERS SELLING
AIRTEL PREPAID CARDS
Peelamedu
PN
Pallayam
Ram
Nagar
R.S
Puram
Cross
Cut
Road
Very Satisfied
30.23
46.88
33.33
21.74
18.18
Satisfied
30.23
21.88
24.24
39.13
63.64
Not Satisfied
13.95
12.5
15.15
19.57
18.18
4.65
12.12
2.17
20.93
18.75
15.15
17.39
Parameters
Not
at
Satisfied
all
Neutral
Interpretation
In Peelamedu area 30.23 % of retailers said that they are Very

satisfied with the products performance and 4.65 % of retailers said that they are
Not at all satisfied with the product. In P N Pallayam area 46.88 % of retailers
said that they are Very satisfied with the products performance and 12.5 % of
retailers said that they are Not Satisfied with the product.
In Ram Nagar area 33.33 % of retailers said that they are Very
satisfied with the products performance and 12.12 % of retailers said that they
are Not at all satisfied with the product. In R S Puram area 39.13 % of retailers
said that they are Satisfied with the products performance and 2.17 % of
retailers said that they are Not at all satisfied with the product.
In Cross Cut Road area 63.64 % of retailers said that they are
Satisfied with the products performance and 18.18 % of retailers said that they
are Not Satisfied with the product.
39
40
TABLE 13
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE
RETAILERS OF THE PEELAMEDU AREA TOWARDS A FEW STATEMENTS
PARAMETERS
Neither
Agree
Agree
Disagree
Somewhat
nor
Somewhat
Disagree
Statement
Agree
Completely
Statement 1
3.91
2.34
8.59
10.16
22.66
Statement 2
24.22
25.78
21.88
23.44
42.97
Statement 3
62.5
61.72
50
43.75
9.38
Statement 4
8.59
9.38
18.75
15.63
11.72
Statement 5
0.78
0.78
0.78
7.03
12.5
Disagree
Completely
Interpretation
In Peelamedu area a maximum of 22.66 % of retailers, Disagree
completely towards Statement 1 and a minimum of 2.34 % of retailers Agree
Somewhat towards Statement 1.
A maximum of 42.97 % of retailers Disagree completely towards
Statement 2 and 25.78 % of retailers, Agree Somewhat towards Statement 2 in
the other extreme.
A maximum of 62.5 % of retailers Agree completely towards
Statement 3 and 43.75 % of retailers, Disagree Somewhat towards Statement 3
in the other extreme.
A maximum of 18.75 % of retailers Neither Agree Nor disagree
towards Statement 4. A maximum of 12.5 % of retailers Disagree completely
towards Statement 5.
41
TABLE 14
RETAILERS OF THE P N PALLAYAM AREA TOWARDS A FEW STATEMENTS
Statement
Agree
Completely
PARAMETERS
Neither
Agree
Agree
Disagree
Disagree
Somewhat
nor
Somewhat Completely
Disagree
7.41
11.11
11.11
22.22
Statement 1
6.17
Statement 2
29.63
27.16
16.05
22.22
29.63
Statement 3
50.62
50.62
54.32
46.91
2.47
Statement 4
13.58
13.58
13.58
11.11
25.93
Statement 5
1.23
4.94
8.64
19.75
Interpretation
In P N Pallayam area a maximum of 22.22 % of retailers, Disagree
Completely towards Statement 1. A maximum of 29.63 % of retailers Disagree
completely and Agree completely towards Statement 2.
A maximum of 54.32 % of retailers Neither Agree nor disagree
towards Statement 5 also.
42
43
TABLE 15
RETAILERS OF THE RAM NAGAR AREA TOWARDS A FEW STATEMENTS
PARAMETERS
Neither
Agree
Agree
Disagree
Somewhat
nor
Somewhat
Disagree
Statement
Agree
Completely
Statement 1
7.89
6.58
7.89
7.89
28.95
Statement 2
28.95
21.05
26.32
26.32
27.63
Statement 3
48.68
55.26
44.74
40.79
7.89
Statement 4
10.53
13.16
14.47
17.11
17.11
Statement 5
10.53
13.16
14.47
17.11
17.11
Disagree
Completely
Interpretation
In Ram Nagar area a maximum of 28.95 % of retailers, Disagree
Somewhat towards Statement 1. A maximum of 28.95 % of retailers Agree
completely towards Statement 2 and 27.63 % of retailers, Disagree completely
towards Statement 2 in the other extreme.
A maximum of 55.26 % of retailers Agree Somewhat towards
Statement 3 and 40.79 % of retailers, Disagree Somewhat towards Statement 3
in the other extreme. A maximum of 17.11 % of retailers Disagree completely
towards Statement 4 and a minimum of 10.53 % of retailers Agree completely
towards Statement 4 in the other extreme and same in the case of Statement 5.
44
45
TABLE 16
RETAILERS OF THE R S PURAM AREA TO TOWARDS A FEW STATEMENTS
Statement
PARAMETERS
Neither
Agree
Agree
Agree
Disagree
Disagree
Completely Somewhat
nor
Somewhat Completely
Disagree
Statement 1
13.64
12.5
15.91
18.18
32.95
Statement 2
35.23
31.82
21.59
29.55
35.23
Statement 3
38.64
45.45
50
43.18
17.05
Statement 4
11.36
9.09
10.23
4.55
7.95
Statement 5
1.14
1.14
2.27
4.55
6.82
Interpretation
In R S Puram area a maximum of 32.95 % of retailers, Disagree
Somewhat towards Statement 1.
A maximum of 35.23 % of retailers Disagree completely and Agree
completely towards Statement 2. A maximum of 50 % of retailers Neither Agree
Nor disagree towards Statement 3.
A maximum of 11.36 % of retailers Agree completely towards
Statement 4 and a minimum of 7.95 % of retailers Disagree completely towards
Statement 4. A maximum of 6.82 % of retailers Disagree completely towards
46
Statement 5 and a minimum of 1.14 % of retailers Agree completely towards

Statement 5.
47
TABLE 17
RETAILERS OF THE CROSS CUT ROAD AREA TOWARDS A FEW STATEMENTS
PARAMETERS
Neither
Agree
Disagree
nor
Somewhat
Disagree
Statement
Agree
Completely
Agree
Somewhat
Statement 1
38.46
46.15
38.46
61.54
76.92
Statement 2
38.46
30.77
23.08
7.69
Statement 3
7.69
7.69
23.08
15.38
7.69
Statement 4
Statement 5
Disagree
Completely
Interpretation
In Cross Cut road area a maximum of 76.92 % of retailers, Disagree
Somewhat towards Statement 1. A maximum of 38.46 % of retailers Agree
completely towards Statement 2 and 7.69 % of retailers, Disagree Somewhat
towards Statement 2 in the other extreme.
A maximum of 23.08 % of retailers Neither Agree nor disagree
towards Statement 3 and 7.69 % of retailers, Disagree completely and Agree
completely towards Statement 3 in the other extreme. As far as the Statement 4
and Statement 5 is concerned, none of the retailers opted for this statement.
48
49
TABLE 18
TABLE SHOWING THE LEVEL OF INTEREST FOR THE NON TELECOM
OUTLET RETAILERS TOWARDS SHELFING OF AIRTEL PRODUCTS
PARAMETERS
AREA
Interested
Not Interested
PEELAMEDU
54.05
45.95
P.N. PALAYAM
33.33
66.67
RAM NAGAR
28.57
71.43
R.S. PURAM
41.46
58.54
CROSS CUT ROAD

Interpretation
Peelamedu area saw the maximum interest from the non telecom
outlets towards shelfing of Airtel products with a 54.05 %.
R S Puram saw the second best interest towards shelfing of Airtel
products from the non telecom Outlets with a 41.6 %.
Ram Nagar saw the maximum non interested non telecom outlets
towards shelfing of Airtel Products with a 71.43 %.
P N Pallayam saw the second best non interested non telecom outlets
towards shelfing of Airtel products with a 66.67 %.
50
51
TABLE 19
TABLE SHOWING THE REASONS STATED BY NON TELECOM OUTLET
RETAILERS FOR NON SHELFING OF THE AIRTEL PRODUCT
Area
Parameter
Peelamedu
P.N.
Palayam
Ram
Nagar
R.S.
Puram
Cross Cut
Road
Choice 1
36.36
21.21
40.00
20.83
0.00
Choice 2
3.03
6.06
6.67
20.83
0.00
Choice 3
3.03
12.12
13.33
0.00
0.00
Choice 4
9.09
18.18
6.67
4.17
0.00
Choice 5
33.33
42.42
33.33
33.33
0.00
15.15
0.00
0.00
20.83
0.00
Choice 6
Interpretation
Peelamedu area saw the retailers stating the reasons as Choice 1

with a 36.36 %, Choice 5 with a 33.33 % and Choice 6 with a 15.15 %.
P N Pallayam area saw the retailers stating the reasons as Choice 5
with a 42.42 %, Choice 1 with a 21.21 % and Choice 4 with a 18.18 %.
Ram Nagar area saw the retailers stating the reasons as Choice 1
with a 40 %, Choice 5 with a 33.33 % and Choice 3 with a 13.33 %.
R S Puram area saw the retailers stating the reasons as Choice5
with a 33.33 %, Choice 6, Choice 2, Choice 1 with a 20.83 % .
52
53
CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION
5.1 FINDINGS
Major findings of the study on Retail Penetration level of Airtel prepaid

cards in Coimbatore, with respect to the area of VSV Agencies are given below.
1.
Under the sampling frame for the study most of the outlet
Category belongs to Mobile Service Centre and Others
Category i.e. In Peelamedu most of the outlet belong to Others
Category with a 32.81 %. In R S Puram, P N Pallayam, and
Cross Cut Road most of the outlet belong to Pharmacy and
Mobile Service Centre Category with a 21.59 %, 23.56 % and
50 % ratio respectively.
2.
In Peelamedu area we have a 41.41 % to 58.59 % ratio

between Telecom and Non Telecom outlet. A 44.44 % to 55.56
% ratio between Telecom and Non Telecom outlet in P N
Pallayam Area, A 44.74 % to 55.26 % ratio between Telecom
and Non Telecom outlet in Ram Nagar Area, A 52.27 % to 47.73
% ratio between Telecom and Non Telecom outlet in R S Puram
Area, and a 100 % Telecom outlet in Cross Cut Road Area.
54
3.
As far as the penetration level is concerned Airtel had the

maximum penetration level in all the areas. The margin is not
that too big, which has to be the noting point as in future this
could be changed. For E.g.) In Peelamedu area Airtel had a
penetration level up to 22.62 % where as it nearest competitor
Aircel and BPL had a penetration level up to 21.27 % which is a
matter of concern. Similarly in other areas too, which is clearly
evident in Chart 3.
4.
When the respondents was asked to rank the various prepaid

card service provided by different operators depending on its
performance, sales, etc in their outlet, Airtel was Ranked 1 by
most of the retailers in all the 5 areas except in Cross Cut road
Area. Cross Cut Road area saw Airtel being Ranked 1 by
38.46 % of retailers, when compared to Aircel which was
Ranked 1 by 53.85 % of retailers.
5.
When retailers was asked to name any one prepaid card, which
they felt is performing in their outlet, most of the retailers in all
the area opted for Airtel except for two area. I.e. in Ram Nagar
area and Cross Cut Road area where 46.7 % to 50.25 % of
retailers opted for Aircel.
6.
The reason stated by the majority of retailers for Airtels

performance in their outlet was Choice 6. Other than this
some of the retailers also was harping on Choice 4 as the
reason for Airtels performance in their outlet. The percentage
distribution of the above is available on Table 10.
55
7.
The percentage of Telecom Outlets selling Airtel Prepaid cards

is outstanding and is a positive sign on the image of the brand
and its performance when compared to its competitor.
8.

satisfied with the products performance and 4.65 % of retailers
said that they are Not at all satisfied with the product
9.

satisfied with the products performance and 4.65 % of retailers
said that they are Not at all satisfied with the product
10.
In P N Pallayam area 46.88 % of retailers said that they are

Very satisfied with the products performance and 12.5 % of
retailers said that they are Not Satisfied with the product
11.
In Ram Nagar area 33.33 % of retailers said that they are Very
satisfied with the products performance and 12.12 % of
retailers said that they are Not at all satisfied with the product
12.
In R S Puram area 39.13 % of retailers said that they are

Satisfied with the products performance and 2.17 % of
retailers said that they are Not at all satisfied with the product
13.
In Cross Cut Road area 63.64 % of retailers said that they are
Satisfied with the products performance and 18.18 % of
retailers said that they are Not Satisfied with the product
14.
When the Non telecom selling Outlet was asked whether they
are interested in shelfing Airtel products, the response was
encouraging as Peelamedu area saw the maximum interest
from the non telecom outlets towards shelfing of Airtel products
56
with a 54.05 %.
R S Puram saw the second best interest
towards shelfing of Airtel products from the non telecom Outlets

with a 41.6 %. The detail distribution regarding given on
Table 18.
15.
Those non interested non telecom retailers stated various

reasons which are given below according to the area.
Peelamedu area saw the retailers stating the reasons as
Choice 1 with a 36.36 %, Choice 5 with a 33.33 %
and Choice 6 with a 15.15 %.
P N Pallayam area saw the retailers stating the reasons
as Choice 5 with a 42.42 %, Choice 1 with a 21.21 %
and Choice 4 with a 18.18 %.
Ram Nagar area saw the retailers stating the reasons as
Choice 1 with a 40 %, Choice 5 with a 33.33 % and
Choice 3 with a 13.33 %.
R S Puram area saw the retailers stating the reasons as
Choice5 with a 33.33 %, Choice 6, Choice 2,
Choice 1 with a 20.83 % .
57
5.2 SUGGESTIONS
Some of the suggestions that have evolved / recognized by the

researcher to the company, during the study are given below.
As can be observed from Table 1 the ratio of Non telecom outlet is greater
when compared to the telecom outlet except in one area i.e. Ram Nagar.
These non telecom outlets thus act as an unexplored area which in turn
means potential market for the company. These are those outlets which
are either not yet been approached by the competitors or not yet been
discovered by them which in turn means first comer advantage. Thus if
approached with attractive retail margin package and offers it is possible
to convert them to Airtel Outlet and tap the unexplored potential business.
Other than the companies marketing and promotional effort, there is some
thing else which could create an impact on the penetration level of the
product i.e. Distributor service, as distributor plays the middle man role
between the company and the retailer. The retailer after shelfing the
product expects something called as distributor service, which the
distributor sales people have to give and this has to be trained / taught by
the company to the distributor sales people, which would reduce the
retailer attrition rate, increase the penetration level and would be in a
position to satisfy one of the retailer preferences.
58
The retailer had to be constantly updated with the new and latest schemes
from the company by the distributor sales people as this had to be
conveyed to the customer by the retailer.
Most of the Non Telecom Retail outlet people are asking for credit facility
on the initial basis to get started of with their business, so if the company
could come up with some schemes, they would be in a position to convert
most of the Non Telecom outlet to Airtel outlet.
The retail margin provided the other service provider is comparatively
superior to the one provided by the Airtel. As most of the retailers who said
that they are not satisfied stated this as one of the major reasons. So if
the company could revise some how their plans on the retail margin, this
could also reduce retail attrition rate and also would be in a position to
convert some of the non telecom outlets to Airtel outlets.
The recently included formalities regarding the filling up of the form also
disturbs the view of the retailers towards the prepaid business, as they
loose their valuable time on maintaining these forms.
This is another
reason stated by the retailers. If some alternative source could be formed

by which the filling up job of the form is taken away from the retailers could
also motivate some to go for prepaid card selling business and also could
stop retailer attrition rate to some extent.
59
5.3 CONCLUSION
The Coimbatore market is a very competitive market. The market

share of the leader will not be a constant one and could change at any time.
Even though it is clear from the study that Airtel have a maximum penetration
level among the Retail Outlet at present when compared to its competitor. But
this could change at any time as the retail penetration level margin that Airtel is
having is not that too big.
Also the study reveals that several factors like Retail Margin,
Distributor Service, Tariff Plan, and Schemes Available all are taken into
consideration by the retailers before going for Shelfing of the product.
60

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1

The Indian telecommunications industry has experienced high growth

14543 17802 21594

26511 32436 37712

*Data released by COAI periodically

The Indian telecommunications market is under penetrated and hence

Economic Growth and continued development of the Indian

Higher growth rate of service oriented sector, leading to an

Increased use of Information Technology and Internet , leading to a

Declining tariffs, reduced equipment cost and reduced handset

Increasing customer choice and demand for value added services;

Increasing globalisation of the Indian Business, leading to increase

Industry analysts expect the telecom services industry in India to

1.1.1 Regulatory Framework

The government has liberalized the telecommunication services sector

Mobile services: Four licenses have been awarded in each of the

Fixed line Services: There is no restriction on the number of players

National & International Long Distance Services: There is no

Internet Services: there is no restriction on the number of players in

1.1.2 Industry Structure

The present operational regulatory structure of telecommunications

TRAI &TDS TDS

1.2 COMPANY PROFILE

Bharti Enterprises has been at the forefront of technology and has

Its services sector businesses include mobile operations in Andhra

Bharti has recently launched national long distance services by offering

Bharti Enterprises also manufactures and exports telephone terminals

1.2.1 Bharti Group -Structure

The Bharti group has been structured to create specialization, both

1.2.2 Bharti Tele-Ventures

approximately 7.34 million mobile and approximately 678,000 fixed line

Bharti Tele-Ventures' strategic objective is to capitalise on the growth

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

The Company has developed the following strategies to achieve its

Focus on maximising revenues and margins;

Capture maximum telecommunications revenue potential with minimum

Offer multiple telecommunications services to provide customers with a

Position itself to tap data transmission opportunities and offer advanced

Focus on satisfying and retaining customers by ensuring high level of

Leverage strengths of its strategic and financial partners; and

Emphasise on human resource development to achieve operational

1.2.4 Businesses Reach

Bharti Tele-Ventures current businesses include

National and international long distance services

VSAT, Internet services and network solutions

AIM OF THE PROJECT

The Indian Telecommunication industry has grown into a billion dollar

In this unforgiving highly competitive industry it is not just doing

2.1 OBJECTIVES OF THE STUDY

For an organization to be successful they need to be equipped with the

2.1.1 Primary Objective

2.1.2 Secondary Objectives

To identify the Performance of Airtel Pre Paid card in Coimbatore.

2.2 SCOPE OF THE STUDY

Once the study is through, the researcher would be in a position to

2.3 LIMITATIONS OF THE STUDY

Some of the limitations that would be subjected to the