Final Minor
Final Minor
Final Minor
ON
AIRTEL
1 Acknowledgement
2 Certificate
3 Executive Summary
4 Objective
5 Company Profile
6 Market Research
7 Data Analysis
8 Feedback
9 Limitation
ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is not
different. Regardless of the source, I wish to express my gratitude to those who
may have contributed to this work, even though anonymously.
I would like to pay my sincere thanks to my practical guide, Dr. Madhu Arora
under whose guidance I was able to complete my practical successfully. I have
been fortunate enough to get all the support, encouragement and guidance from
him needed to explore, think new and initiate.
My final thank goes out to my parents, family members, teachers and friends who
encouraged me countless times to persevere through this entire process.
DEVATAVA ZUTSHI
CERTIFICATE
This is to certify that the practical file titled “MINOR PROJECT” submitted by
Devatava Zutshi to New Delhi Institute of Management, Guru Gobind Singh
Indraprastha University in partial fulfilment of requirement for the award of the
Bachelor of Business Administration degree is an original piece of work carried
out under my guidance and may be submitted for evaluation.
The assistance rendered during the study has been duly acknowledged. No
part of this work has been submitted for any other degree.
Executive Summary
Airtel comes to you from Bharti cellular Limited- a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of
telecom services, which includes cellular, basic, internet and recently introduced
National Long Distance. Bharti also manufactures and exports telephone terminals
and cordless phones. Apart from being the largest manufacturer of telephone
instruments in India, it is also the first company to export its products to the USA.
Bharti is the leading cellular services provider, with an all India footprint covering all
23 telecom circles of the country. It has over 11 million satisfied customers.
Project title is “Market Share of Airtel”. Main objective of the study was to find the
share of Airtel in the allotted market and to know its potential market. In this, non
telecom shops are targeted and their demand or requirement is understood. Their
interest is being taken into consideration i.e. whether they are interested or not
interested if given an option to them to keep Airtel connection for selling. Also for
existing telecom shops; retailers are being questioned about their level of satisfaction
from the business, whether they keep Airtel connection, overall performance of each
telecom services providers and their feedback for Airtel.
The method which was used to study the replies of the telecom and non telecom shops
that may or may not be interested in having Airtel connections is through
questionnaire. The questionnaires were filled by: - moving to each and every market
which was being allotted. Markets allotted are Rohini sector 11 and 16, Rohini sector
15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar.
Existing telecom shops and non telecom shops like chemist, general stores, STD/
PCO, gifts shops are mainly focused. The questionnaires were filled there and then by
the retailers and then analysis is being done. The questionnaire was bifurcated into
different segments i.e. general information about the retailers containing name,
address, age, shop address, whether they keep Airtel or not, if no then their interest on
keeping it. Also overall comparative performance is being asked from existing
telecom.
Objective
months?
In the end from the facts and observations collected, we came up with the conclusion,
which helps Airtel to attract more customers to be the part of Airtel family and the
corrective measures to be taken for filling up the loopholes and how the Airtel share
can be increased which is eaten away by the other competitors.
Company Profile
Market
The unprecedented growth in the mobile is, perhaps, the most vivid facet of India’s
economic transformation since the mid 1990’s. Mobile technology and services came
to India less than a decade ago. In the early days, a mobile was seen to be a fashion
statement for the rich. Today, it is expected as a basic communication medium for all
socio- economic segments. As the pioneer and front runner, Airtel has been
instrumental in leading and ushering in the mobile revolution in India.
The Indian mobile market is, today, amongst the fastest growing and the most
competitive in the world.
There were 34.6 million mobile phone subscribers in the country as of April 2004
(source: cellular operators association of India and association of basic telecom
operators) with approximately 7 million subscribers, Airtel commands nearly 20% of
the share of the market- making is the number one brand in the country. Airtel’s world
class service and innovative products have enabled it to establish this position of
leadership.
About Airtel
India's sixth richest man with a total worth of US$10 billion. The company is the only
GSM operator to provide mobile services in all the 23 circles in India. 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 reliable end-to-end data and enterprise services to
the corporate customers by leveraging 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.
Touchtel
The Forbes Global 2000 list for the year 2007 ranked Bharti at 1149.
2006
• Wireless service provider of the year 2005 at the Frost and Sulivan
AsiaPacific ICT awards.
• Competitive service provider of the year 2005 at the Frost and Sulivan
AsiaPacific ICT awards
Bharti Airtel added the highest ever net addition of 53 lakh customers in a single
In News
quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore tota
subscribers in 2006-07
Recently
• The Sunil Bharti's
company Airtel
will investlaunched its billion
up to $3.5 callingthis
card in America
fiscal specially
(07-08) in networkfor the
expansion. Indians) and people calling from America to India at a cheaper
NRI (Non-resident
It has an installed
rate•as compared baseoffered
to the tariff of 40,000 cellsites
by other and 59% population coverage
providers.
• After the proposed network expansion, an additional 30,000 towers will result
On February
in the 12, 2007 Vodafone
company achieving sold
70% its 5.6% stake
population in AirTel
coverage back to AirTel for US
$1.6• billion;
Bhartiand
haspurchased a controlling
over 39 million users asstake in rival31,
on March Hutchison
2007 Essar.
• It has set a target of 125 million subscribers by 2010
In its monthly press release, following statistics have been presented for end of April
• Prepaid customers account for 88.5% of Bharti’s total subscriber base, an
2007.
l increase from 82.7% a year ago
• ARPU has dropped to Rs 406
• Non-voice revenues, (SMS, voice mail, call management, hello tunes and
Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in
Market News
Market Capitalization
Approx. Rs. 1,670 billion Closing BSE share price = Rs. 880.75
Post-paid Services
Airtel Prepaid
Roaming
Value Added Services
Coverage
Bharti's partners in Airtel are Emtel, the premier GSM operator in Mauritius, some
private investors.
Registered as Telecom Seychelles Limited and operating under the brand name of
Airtel, the company is licensed to offer comprehensive telecom services including
GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming,
connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and
International Collect and Credit Card calling. Dominating the market with its service
and customer commitment - Airtel has always been at the forefront of innovation and
change in the Telecom sector in Seychelles.
Airtel's Head Office is in Providence & Anse Royale, Mahe. Airtel also has
showrooms in Victoria, Mahe and Grand Anse, Praslin, that serve as one-stop shops
for customers. Airtel provides the whole range of telecom services, from GSM Mobile
services, Airtel Prepaid Mobile Cards available at a string of outlets, International
Roaming with 157 operators in 65 countries, a host of Value Added Services, Fixed
Cellular services and a fast growing Fixed Line network as
well.
All this, of course, comes to you with the distinct Airtel advantage of excellent Tariffs,
the best GSM Coverage on the islands, world class Technology from industry leaders
like Ericsson and Scientific Atlanta and 24-hour Customer Care.
In addition to telecom services, Airtel also recently acquired a 4-star luxury 124-
bedroom hotel in Seychelles, called Le Meridien Barbarons Beach Hotel.
AIRTEL VISION
AIRTEL MISSION
Bharti Enterprises
Bharti Enterprises is one of India’s leading business groups with interests in telecom,
agri business, insurance and retail.
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals
under its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Airtel Limited is today acknowledged as one of
India's finest companies, and its flagship brand 'Airtel', has over 44 million customers
across the length and breadth of India.
While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray into
the Customer Management Services business, Bharti Enterprises’ dynamic
diversification has continued with the company venturing into telecom software
development. Bharti has successfully launched an international venture with EL
Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products
exclusively to markets in Europe and USA. Bharti also has a joint venture - ‘Bharti
AXA Life Insurance Company Ltd.’ - with AXA, world leader in financial protection
and wealth management. Bharti has recently forayed into retail business under a
company called Bharti Retail Pvt. Ltd. It also has an MoU with Wal-Mart for the cash
& carry business.
Bharti Tele-Ventures
When EM Warburg Pincus went to invest in India the summer of 2001, it zeroed in on
Bharti Televentures, a mobile telecom services company with fewer than
800,000 customers. The N.Y buyout firm, which invested $300 million in the
Delhi enterprise, chose well. Today, Bharti has 11.4 million cell-phone
subscribers, its stock has grown fivefold since listing early in 2002, and its
valuation is $10 billion. Warburg has made more than $1 billion on the deal
and still owns 5.8%. Chairman and Managing Director Sunil Mittal aims to
maintain Bharti's 25% share of the Indian cellular market, which is forecast
to reach 180 million customers in 2008.
Company Snapshot
Business Profile
Bharti Airtel (formerly Bharti Tele-Ventures), a part of Bharti Enterprises, works
through three individual SBUs -mobile services, broadband and telephone services
and enterprise services. The company, established in 1995, is a public limited
company and is headquarted in New Delhi, India. The company provides GSM
mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 15 circles. The enterprise services group
has two sub-units - carriers (long distance services) and services to corporates.
Bharti Airtel is the largest mobile telephony operator in the GSM space with around 27
per cent market share in FY05. The company, apart from being the largest player in the
mobile segment with subscribers in all the 23 telecom circles of the country, also
provides varied services like fixed line, broadband and retail internet access. The
company is also one of the fastest growing fixed line and long distance (DLD as well as
ILD) operators in the country. It offers broadband and other data oriented services to
corporate clients. The company has a strategic alliance with Singtel, the largest of its
kind made by SingTel outside Singapore. The company also has a strategic alliance with
Vodafone, which is one of the largest single foreign investments made in the
Indian telecom sector.
Bharti Airtel plans to foray into the retail segment, through a joint venture, which
would be finalised depending on the kind of infrastructure required for the retail
foray.
Financials
Bharti Airtel registered a 151.71% growth in net profits to Rs 12,868.40 million for
the quarter ended March, 2007 from Rs 5,112.40 million for the quarter ended March,
2006.
Net sales rose 59.58% to Rs 52,187.30 million for the quarter ended March, 2007
compared with Rs 32,703.60 million for the quarter ended March, 2006.
Total income rose 59.58% to Rs 52507.7 million in the quarter ended March, 2007,
from Rs 32,904.1 million for the quarter ended March, 2006.
The earnings per share (EPS) of the company stood at Rs 6.79 in the quarter ended
March, 2007.
Marketing Research
Market research and marketing research are often confused.’ Market' research is
simply research into a specific market. It is a very narrow concept. 'Marketing'
research is much broader. It not only includes 'market' research, but also areas such as
research into new products, or modes of distribution such as via the Internet. Here are
a couple of definitions:
"Marketing research is the function that links the consumer, customer, and public to
the marketer through information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements the
data collection process, analyzes, and communicates the findings and their
implications."
American Marketing association -Official Definition of
Marketing Research
Obviously, this is a very long and involved definition of marketing research.
"Marketing research is about researching the whole of a company's marketing
process."
This explanation is far more straightforward i.e. marketing research into the elements
of the marketing mix, competitors, markets, and everything to do with the customers.
Based on questioning:
Based on observations:
-
manipulates at least one of the variables - examples include purchase
laboratories and test markets
Researchers often use more than one research design. They may start with secondary
research to get background information, then conduct a focus group (qualitative
research design) to explore the issues. Finally they might do a full nation-wide survey
(quantitative research design) in order to devise specific recommendations for the
client.
General Overview of Feedback
Idea is provided with better schemes and Idea sale services are quickest
among all in this area.
Claim problem is the major issue in this area.
Mainly youth customers are attracted by H- card (Hutch) and I- card (of Idea)
as compared to Yuva (Airtel) in this area.
Limitations
The samples were taken on the basis of convenience sampling which may
bring element of error.
o Samples were only taken from Rohini area.
o Survey times are as such that maximum shop owners or respected persons
were not available for survey. So, through contact basis survey is done.
o The sample size is very small and the result of research cannot be expralated
to the entire population.