CONTENT PAGE

1. INTRODUCTION OF TOPIC

2. NEED OF STUDY………………………………………………7

2. OBJECTIVE OF STUDY ……………………………………….......8

3. A BRIEF HISTORY OF TELE SECTOR IN INDIA ………………. 9

4. ………………………………………19

5. SWOT ANALIYSIS ………………………………………………..34

6. COMPARISON OF MARKETING STRATEGIES BETWEEN AIRTEL &

VODAFONE…..................................................................... 38

7. REASEARCH METHODOLOGY ………………………………......43

8. LIMITATION …………………………………………………........46

9. DATA ANALYSIS AND INTERPERTATION ……………………48

10. CUSTEMOR RESPONSE TOWARDS QUESTIONNAIRE…........55

11. CONCLUSION ……………………………………………………60

12. SUGGESTION ………………………………………………… …61

13. BIBLOGRAPHY ………………………………………………….62

14. QUESTIONNAIRE ……………………………………………….63

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CHAPTER - 1
INTRODUCTION

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Introduction of the Topic

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 scooping up by the allegations of the quality of its products. The report
begins with the history of the pr oducts 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 marketer end
issues.

In today’ s world of cutthroat fierce competition, it is very essential to not only exist
but also to excel in the market. Today’s market is enormously more complex. Hence
forth to s ur vive 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 from there.

Telecom Sector In India

Than 125 million telephones network is one of the largest communication

networks in world, which continues to grow at a blistering pace.
The rapid growth in the telecom sector can be attributed to the various pro-active
and positive policy measures taken by the government as well as the
dynamic and entrepreneurial spirit of the various telecom service providers both in
private and public sector. The telecom sector has shown impressive growth during the
past decade.
Two striking features of this growth viz. increasing preference for mobile
phones and higher contribution of private sector in the incremental growth have
predominated the etlecom sector. The share of mobile phones (including WLL
mobile) has overtaken the share of landlines with 62% in the total number of phones.
The private sector's contribution is
also increasing rapidly. Currently more than 30 lakh phones are being added each
month and it is targeted that by the end of 2008 the total number of phones may

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reach a level of350 million taking the tele-density to more than 30% which is currently
at 24.63%.

Network Expansion:- The total number of telephone subscribers has reached

281.62 million at the end of January 2008 as compared to 232.87 million in July 2007.
The overall Teledensity has increased to 23.63% in January 2008 as compared to
21.20% in August2007.

Wireless Service:- The wireless segment saw a surge of 8.77 million subscribers last
month compared to 8.17 million in December2007. This pushed the total wireless
subscribers base to 242.40 million by Jan 31 2008

Wire line Subscribers:- The wire line segment subscriber base stood at 39.73 million
with a decrease of 0.16 million at the end of January 2008.

Teledensity:- The gross subscriber base reached 206.83 million at the end of March
2007. The Teledensity is 24.63%at the end of January 2008 as compared to 18.31% at
the end of March 2007, registering an increase of 6%.

Increasing Role of Private Sector:- The private sector has played a significant role
in the growth of telecom sector. The share of private sector has risen to 85 per cent in
December2007 from 64.14 per cent in November 2006

Tariff Rebalancing Measures:- There has been a dramatic fall in the tariffs
due to increased competition. The minimum effective charges for local calls
have fallen considerably in recent months especially for cellular service. The long
distance domestic as well as international charges have also fallen considerably.

Telecom Regulatory Authority of India (TRAI): TR AI was established

under the Telecom Regulatory Authority of India Act, 1997 enacted on March
28,1997. The goals and objectives of TRAI are focused towards providing a
regulatory framework that facilitates achievement of the objectives of New
Technology Policy (NTP) 1999. TRAI has endeavored to encourage greater

4
corporation in the telecom sector together with better quality and affordable prices.
NEED OF THE STUDY

1.To identify the difference between market performance of Airtel industry and
Vodafone.

2. To study the market of Airtel Industry and Vodafone on big scale

telecommunication sector

3. To compare various parameters of marketing strategies, manufacturing

process, technology
adopted production policy, advertising collaboration, export scenario, future
prospect for the two companies and government policies.

4.To study the level of customer satisfaction in Airtel & Vodafone.

5.To study customer buying behavior and factors which influence the purchase
decision process.

6. To study consumer preferences

7. To study the consumer trend in telecommunication sector

8. To study competitive marketing strategies adopted by Airtel and Vodafone

OBJECTIVE OF THE STUDY

Every organization has to achieve its organization goals. For this it is very
essential for an organization to know about the view of consumers and their
competitive products. This survey research may be also aimed as to estimate potential
buyer for the product. The objective of the study is as under:-

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1. To identify the difference between market performance of Airtel industry and
Vodafone.

2. To study the market of Airtel Industry and Vodafone on big scale

telecommunication sector.

3. To compare various parameters of marketing strategies, manufacturing

process technology adopted production policy, advertising, collaboration, export
scenario, future prospect f or the tw o companies and government policies.

4. To study customer buying behavior and factors which influence the

purchase decision process.

5. To know how the company has been successful in encountering the aggressive
marketing strategies of competitors.

A brief history of Tele sector in India

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 Kolkata) 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. Thirty-four licenses for GSM900 cellular services were
auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra
in Kolkata 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.

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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 development
and enhancements. As a result, by1999 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.

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 Policy1999 was
announced. Some of these roadblocks / current position is tabulated below:
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.

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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.
Issues relating to unfavorable interconnect terms for private operators, pass through
income, intra circle long distance, spectrum availability and allocation and the like
remained unresolved for long periods.
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.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large upfront 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 upfront cash requirements for license fee payments mitigated with
migration to 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

ownership norms clarified, and change of partners allowed as a matter of routine

allowin ease of entry / exit - paves the way for full control of businesses by foreign
companies.

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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.

2.2 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. 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
Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major
stakes in Sterling Cellular (December1999), Usha Martin Telecom (mid-2000)
and Fascel (September 2000). Through a partnership with local company, Kotak
Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin

9
Telecom, thus circumventing the 49 percent limit on foreign ownership in Indian
cellular operators. Hutchison Whampoa is also the controlling shareholder of
Hutchison Max Telecom. Not to be outdone, Bharti Enterprises — another major
cellular player — acquired Telecom. Not to be outdone, Bharti Enterprises —
another major cellular player — acquired.

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, Hutchison with three, and Vodafone and
Idea cellular with one each. Bharti and Hutchison have already commenced
operations in all the circles while Idea is set to launch in Delhi. Escotel and
Vodafone 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 October2002. However, this has been
postponed until after mid October. Once BSNL rolls out its service, most telecom
circles will have four cellular operators. 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 R s10.
The issue was oversubscribed by more than 2.5 timesnetting 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

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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.

In 2005 Hutchison Essar an Indian and hongkong telecommunication alliance was

taken over by the United Kingdom based telecommunication company name
Vodafone telecomm services and comes with the name of Vodafone essar.

Virgin mobile comes in Indian Territory with the alliance of TATA telecommunication
Maharashtra in 2008.

Mitsubishi a Japanese telecomm services (MTS) company comes in India in 2009 and
take over

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

11
(SMS) will get them the numbers but not the margins, some are now seriously
looking at the enterprise segment for provisioning superior services.
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 number. Group
SMS is quite popular, especially among enterprises both in the service as well as
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.

2.3 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.

12
  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 subscriberThe bigger the
service provider's national presence, the better it is for businesses. On the
roaming front, signing up with a national operator is advantageou

 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

2.4 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 National Telecom Policy of 1994, a consequence
of the on going process of liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DOT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized

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1994 Licenses for paging

1994 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 Tenders for 2nd operator in basic services apart from DOT on circle
basis

August 1995 VSNL launches Internet services

January 1996 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 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

14
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 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. Basic services were opened to private
participation in 1994 by dividing the country into 21 telecom Circles and
allowing one private operator per Circle to compete with DOT. 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.

Scope of the study

 To conduct this research the target population was the mobile users, Who
are using GSM technology.

 Targeted geographic area of Delhi/ NCR. Sample size of 50 persons was taken.

 To these 50 people a questionnaire was given, the questionnaire was a

combination of both open ended and closed ended questions.
 The date during which questionnaires were filled.

15
  Some dealers were also interviewed to know their prospective. Interviews with
the managers of GSM service providers were also conducted.
 Finally the collected data and information was analyzed and compiled to arrive
at the conclusion and recommendations given.

Sources of secondary data

# Internet

# Magazines

# Journals

# Bharti Circulars Store

# Vodafone Store
# Vodafone Ministore

Comparison of marketing strategies Between Bharti Airtel

and Vodafone

Purpose of comparison

The sub main purpose of this report is to compare the marketing Strategies adopted by
Bharti Airtel and its rival Vodafone

The comparison shows how both of the companies have been challenging each other
to gain market shares.

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Why comparison with vodafone

Bharti Airtel is the leader in telecommunication sector

Bharti Airtel holds the lion share of market of communication sector.

However, Vodafone has been giving tough competition to Bharti Airtel.

Vodafone is the second largest player and share holder in Communication sector.

Since its launch Vodafone has been adopting aggressive marketing strategies.

The comparison shows how Hutchison Essar Telecom. Captured 22% market share in
one month of its first launch of postpaid subscription in 2002.

With a different technology Vodafone creates its own market

Vodafone today deals in every business of communication sector.

Vodafone making and changing the strategies to capture the market shares

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

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Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

Positioning

Creating brands (Sharukh khan & Sachin Tendulker)

Ads and promotions.

Promotion for study of poor childrens.

Marketing mix

Price: low price strategy

Place: maximum outlets and service centers

Product: verities available for various groups

Promotion: various schemes for pre-paid and post-paid

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Marketing strategies of VODAFONE

Vodafone target the rural India

The main targeted customers of Vodafone are from rural India.

By offering cheap and light mobile sets Vodafone attracts most of the customers of
small villages and towns.

Offering cheap handsets

Vodafone offers cheap and free connections to all customers.

The cost for these sets was Rs-799-849-1099\set and onward

Free support and services

In every district and big towns Vodafone opens its service centers to provide better
support and services.

Strong logistics and supply chain

Vodafone has a strong logistic and supply all over India.

In every small town the potential customers can easily purchase the Vodafone SIM &
Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

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Brand positioning by VODAFONE

Market segmentation

Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing
People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

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Product : verities available for various groups

Promotion: various schemes for pre-paid and post-paid

Services provided by Bharti AirteI

 Mobile services with GSM technology

 Fixed-line connections

 National and international long distance services

 VSAT, Internet services and network solutions

 Broadband services

Services provided by Vodafone

mobile services with GSM technology

fixed- line telephone services

Universal Internetworking

VoIP (Voice over Internet Protocol)

Interactive Television

Visual Communication

21
Broadband Portal

CHAPTER -2
RESEARCH METHDOLOGY

22
RESEARCH METHODOLOGY

Achieving accuracy in any research requires a deep study regarding the

subject. The prime objective of the project is to compare Airtel with the existing
competitor (Vodafone) in the market and the impact of WLL on Airtel. The research
methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary data has
been used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method,
where a face to-face formal interview was taken. Lastly observation method has
been continuous with the questionnaire method, as one continuously observes the
surrounding environment he works in.

DATA COLLECTION METHOD

There two type of method of data collection

 PRIMARY DATA

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  SECONDARY DATA

PRIMARY DATA

Data used for the research work was primary in nature.

Primary data is that which is the collected for the first time and thus happen to be
originated in character.

QUESTIONNAIRE SURVEY

In the studies a questionnaire is prepared. the questionnaire consists of

15 questions.

SECONDARY DATA

Secondary data refer to the data that has been already

collected .the secondary data, which has been used to carry out this study, are as follow

 BOOKS, JOURNALS, MAGAZINES, NEWSPAPERS

 INDUSTRY REPORTS

 COMPANY’S INTERNET SITE

 SOMEOTHER RELEVANT STUDY MATERIAL AND WEBSITES

SAMPLE UNIT

The research process was done by interacting with number of

customers during the activities performed, which included, markets cold calling,

24
canopies, etc. sample design consists of random sampling.
SAMPLE SIZE: 200 PEOPLE

METHOD OF COLLECTION

Field procedure for gathering primary data included observation and interview
schedule in which the
questionnaires were filed by the personal interviews through self administered
survey was done to collect the data, market research was undertaken, that
was accomplished by performing various activities designed.

RESEARCH INSTRUMENT

Questionnaire

The questionnaire was formulated by keep in mind the following points.

 Giving the respondents clear comprehension of the question.

 Identifying the needs to be known.

LIMITATIONS

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

25
ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers 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 due to short period of time.

8.Some retailers did not give answer all the question or do not have time to answers.

Data analysis

And

26
Interpretation

MARKET PLAYERS IN TELE COMMUNICATION

Operator Market share Market share

Aug''05 Aug''09

Bharti Airtel 19.06 22.49

Vodafone 21.81 16.96

Reliance info 17.03 16.01

Idea Cellular 10.45 8.49

Market share Aug''05 Market share Aug''09

27
 25
20
15 Bharti Airtel

10 Vodafone

5 Reliance Info
Idea Cellular
0
Market Share Aug Market share 09
05

From above the graph it show that in 2005 Vodafone has highest market share but in
2009 Airtel gets highest share market comperesion to other company.

FINDINGS AND ANALYSIS

Age Group Graph

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

28
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 are15% of the total interviewed people.

Occupation Graph

OCCUPATION

10% 15%

15%
Student
Executives
Households
Other

55%

STUDENTS EXECUTIVES HOUSEHOLDS OTHER

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
categories who are the professionals.

Service Provider Graph

29
These are the total market share of mobile user or people captured by the
mobile provider company. There two major company in mobile phone service
sector Vodafone and Airtel who respectively hold the market share with other
company as 17% and 20% of total market user segment of mobile customer.

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10%
10%
Fully Satisfy
Partialy
Dissatisfy
20% 60% Fully Dissatisfy

As the above graph clearly shows that customer services at Airtel seems good. 60%
of the people are satisfied 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

30
even switch over his brand. 20% of the people seemed partially satisfied with the
customer services and only 60% seem to be fully satisfied with Airtel’s customer
services, which is a very large amount.

Type Of Card Graph

Types of cards sim cards cash cards

15%

85%

Cash cards seemed quite popular among the people interviewed. 85% of the total
mobile users were having cash card connections. This means that the cash cards
should be easily and readily available in the local markets. Airtel should make sure that
Magic is available in each and every nook and corner of the market. 15% of the
people were having sim connections which is the regular bil.

Monthly expense graph

Monthly Expense

31
 12%
24%

Rs 600
Rs 450
Rs 200

64%

People on an average spend RS 500 per month as their mobile phone expense. 64%
people spend this amount. 24% people spend RS 300 per month as their monthly
mobile expense. And the remaining 12% had an expense more than RS 1000, they
could the ones having sim connections or having cash cards and having a lot of
business calls on their mobile.

Awareness About WLL Graph

35%
Awareness Of WLL
Yes
No
65%

WLL seemed to be a new word for many of the people. 45% of the people were not at
all aware of such a technology. So, in order to get the answer for this question they
were first explained the concept .Only 65% people knew WLL is all about.

Awareness of WLL Players Graph

32
 Airtel, 80%

80%
70%

60%
50%
Airtel
40% Vodafone
30% Vodafone, 20%

20%

10%
0%
Airtel Vodafone

Vodafone was the brand which was popular amongst the interviewed people. As
Vodafone had done so much advertising and has it banners and hoarding spread all
over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a
known brand in this new field. Possibly because of less promotions done by them as
compared to Vodafone On the basis of analysis of the questionnaire I have found that
the maximum no. of people who use mobile phones is in the age group of 20 to 28.
Who are the young executives and other office goers?
They spend a maximum of RS 500 as their mobile expense.
There is more no. of prepared cards than post paid cards. The mobile users want to
spend money side by side than to spend money at the end of the month on a big bill.
Now when I compared Airtel with its competitor from the point of view of the
consumer I found that on the basis of Tariff plan, value added services and billing
accuracy Airtel is at par or ahead of its competitor but in the case of
customer care and availability they lag behind there competitors. As, Airtel
has a hold in the market because it has the maximum no. of connections, so it must
improve upon it customer services. As far as WLL is concerned people are aware
about it but not many people are aware about Tata. They only know more about
Vodafone.

33
Customer Response
Towards

Questionnaire

34
Q.1 Name those companies which provide telecom services now a days?

Airtel

Vodafone

Reliance

Tata Docomo

Idea

Q.2 which mobile company services you are using now a days?

Airtel

Vodafone

Others

Others, 20%
Airtel
Vodafone
Airtel, 50%
Others
Vodafone, 30%

The graph clearly show that there is 50% people who are using Airtel and Vodafone
has only 30% customer in the market other is remaining 20 %which include all other
company. The graph suggest that Airtel providing better service in present time.

35
Q.3 Which Brand you, prefer most?

Airtel

Vodafone

Reliance

Tata Docomo

Idea

Customer preference using telecom service

0.45

0.4

0.35

0.3

0.25

0.2 42%

0.15 28%
0.1
14%
0.05 10%
6%
0 0
Airtel Vodafone Reliance Tata Idea

Most of the customer like to use Airtel because it provide better service and
networking. In this graph Airtel customer is about 40% and Vodafone has 28% and
other are not in large no. so Airtel has maximum customer compare to other.

Q.4 How long you have been using this Product?

0-2 Years
2-5 Years
5-10 Years
More than 10 years

36
 Brand Loyalty
80%

60%

40%

20%

0%
More than 10
0-2 2-5 5-10
year
Series1 65% 20% 10% 5%

This graph show that customer change their brand according to new schemes launch
by the different company. In this graph there are 65% customers which are loyal for
only 0-2 years. And 20% people they used the product at least 2-5 .There are some
people who used the product at least 5-10 years due to their satisfaction of the brand
and 5% people who used the product for long time. Most of time businessmen don’t
change their product due to their business .

Q.5 Are you using other product with Airtel?

Yes

No

Airtel

YES, 40%
YES
NO
NO, 60%

Here are the customer responses about the use of the Airtel product and other

37
product rather than Airtel
in this segment of survey 60 % of customer are aspire with Airtel and 40 % shown
interest in other telecom products in urban areas.

Q.6 Do you collect any information search before decision making purchase?

NO, 15%

YES
NO

YES, 85%

In this graph it represent that every customers before purchase they gather the
information .85% people search information before purchasing and 15%people they
do not want to search any information . They purchase which they like to want. The
graph show that people are more aware to purchase any product.

Q.7 how would you rate the experience with Brand?

Excellent Good Average Below Average

Airtel

Vodafone

Reliance

Tata

38
 10%
15%
Airtel Excellent
Vodafone Good
Reliance Average
50%
Tata Below Average
25%

The above graph show that Airtel is more excellent brand compare to Vodafone,
Reliance Tata Indicom. Vodafone is also good but not enough to Airtel. Reliance is
quiet average by the rate of experience by the customer according to brand name.Tata
is below average due low markets and less awareness of the people. So Airtel is a
strong brand in the market due to their better services.

39
CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel
lagged behind its competitors as far as customer service and availability is
concerned.
The maximum no. of people who use the mobile is in the age
group of 20 to 28. Cash cards are the most popular type of mobile connections, as they
are consumer friendly and recharging the connection is not a problem. Maximum no.
of people spends RS 500 on their connections. As Airtel is the only company having
the maximum no of mobile connections so it must seriously look into the loop holes of
the existing customer service department.

As we know that now Airtel has already launched its product with logo “’ Aisi azaadi
aur kahan” has already became popular in market. So we can say that in spite of so
many competitors in the market Airtel is having a good position just because every
time, it tries its best to understand the need of its important customers. From the
comparison and deep analysis of every aspect of business of both the companies we
can conclude that bharti Airtel has to more work in every field of communication
business.
It is the time not only to survive but to sustain in the market for a long time.

For this Airtel has to work on its all marketing strategies, marketing, promotion, brand
image etc.
Airtel has to take Vodafone. Very seriously and update its own strategies from time to
time and when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of
population of India lives in these areas.
The other segment may be costumers of all age groups.

40
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 store

3. PROMOT ION

*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 customer.

4. PRICE

* Price should be as competitive as other company maintains.

* Distribution of new connection should be in reach of customer pocket.

41
BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the
following
Books, Magazines/Journals and Web Sites have been referred. All the material detailed
below provides effective help and a guiding layout while designing this text report.

Books :

“Principles of Marketing” –Philip Kotler & Kevin keller edi. 12

“Market Research” – D.D. Sharma

“Research Methodology” – C.R. Kothari

Websites:

www. Airtelworld.com

www.india.com

www.Vodafone.in

42
QUESTIONNAIRE

Dear Sir;

I Raman kumar, student of MBA of Dr. I.T Business school I am doing

my project on “Comparative analysis of marketing strategy of Vodafone and
Airtel” Please give your precious time for filling these detail.
.
Q.1 Name those companies which provide telecom services now a days?

Airtel

Vodafone

Reliance

Tata Indicom

Idea

Q.2 which mobile company services you are using now a days?

43
Airtel

Vodafone

Reliance

Tata Indicom

Idea

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

Airtel

Vodafone

Reliance

Tata Indicom

Idea

Q.4 How long you have been using this Product?

0-2 Years

2-5 Years

5-10 Years

More than 10 years

Q.5 Are you using other product instead of Airtel?

Yes

No

Q.6 how would you rate the experience with Brand?

44
 Excellent Good Average Below Average

Airtel

Vodafone

Reliance

Tata Indicom

Q.7 Do you collect any information search before making purchase?

Yes

No

Q.8 If yes, which sources are used?

Magazines
Dealers

Sales Executives

Any others

Q.9 What are the features you look for in a product before making purchase
decision? Give preferences (1-Highest, 6- least)

Brand credibility

Price and Discount

After sales services and parts, network

Value for money

Vehicle performance

45
Add on features or ergonomics of design

Q.10. Which of these marketing / sales schemes attracts you while purchasing any
connection?

Good Network

Discount scheme

Service package

Any other

Q.11 If you have to purchase a new connection or product in near future, which Brand
will you go for and why?

_________________________________________________
_________________________________________________

Q.12 Are you aware of various promotional activities being run by Airtel, if yes then
how? Are you satisfied with these promotional activities?

Very satisfied somewhat satisfied

Not satisfied

46
Customer Care

By Ad Films

By Camp

24 hrs call center services

Q.13 How would you r ate Airtel performance as your expectation on 5 points
scale (5 Highest?)

1 2 3 4 5
After Sale service

Maintenance

Product as per expectation

Q.14 What are you suggestions for improving the product quality, service
availability and parts availability?

_____________________________________________________________________
__________
_____________________________________________________________________
________________________________________________

47