A
PROJECT REPORT ON
TELECOM INDUSTRY
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
(AFFILATED TO Dr. A.P.J. Abdul Kalam Technical University, Lucknow)
SUBMITTED TO: SUBMITTED BY:
Prof . Dr Mohd. Mehdi Richa Singh
Faculty Guide MBA
LBS, Greater Noida Batch of 2020 - 22
Lloyd Institute of Management & Technology
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Plot-11, Knowledge Park-II, UP-201307
Lloyd Institute of Management and Technology
Plot No: 11, Knowledge Park II, Gautam Buddha Nagar,
Greater Noida, Uttar Pradesh
CERTIFICATE
This is to certify that Mrs Richa Singh , Student of MBA of Lloyd Institute of Management and
Technology, Greater Noida has carried out mini project report for the award of MBA for the Academic
Batch (2020-22) under my guidance.
Prof. Dr. Mohd Mehdi
Faculty Guide
Date:
Place: Greater Noida
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ACKNOWLEDGEMENT
A dissertation projects is a golden opportunity for learning and self development. I consider my
self very lucky and honored to have so many wonderful people lead me through in completion of
this project.
I express my deepest and most sincere thanks to my faculty member’s of MBA, Lloyd Institute
of Management and Technology, Greater Noida, who provided me their valuable time and
information and I would like to express my gratitude to the teachers and the entire Institute for
giving me platform to have this wonderful opportunity and being able to get a glimpse of the
corporate word.
During the course of my project, I had the good fortune of being guided by superior who with all
his magnanimity supervised this project report through all its stages. I have benefited a great deal
from his incisive analyses and suggestions. I humbly acknowledge his congeniality. The
atmosphere of a leering organization that he has created along with his peers with his student has
not student has not only me but all so to others.
My Special thanks to all my friends for their unremitting help in numerous way, which deserve
adequate expression on this page.
I would also like to thank all the respondents of questionnaire for their cooperation and in the
end I would like to say that it was a great experience working in this project.
Richa Singh
MBA
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TABLE OF CONTENT
SL.NO TOPIC PAGE NO.
1 INTRODUCTION 5
2 SCOPE OF THE STUDY 6-7
3 AIMS AND OBJECTIVES 8-14
4 METHODOLOGY 15
5 FEASIBILITY
6 USP
5 LIMITATION 16
6 SWOT ANALYSIS 17-22
7 ANALYSIS AND INTERPRETATION 22-30
8 SUGGESTION 30-52
9 CONCLUSION 53-62
13 REFERENCES 68-75
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INTRODUCTION
Marketing:
Marketing is indeed an ancient art it has been practiced in one way or the other since the
days of adam and eve. Its emergency as a management discipline, however, is of relatively recent
origin. And with in this relatively short period, it has gained a great deal of importance and
stature, in fact today most management thinkers and pratitioners the world over, regarding
marketing as the most important of all management function in any business.
Definition of Marketing:
Marketing is a social and managerial process by which individuals and group obtain what
they need and want through creating, offering and exchanging products of value with others”.
-Philip Kotler
“Marketing consist of all activities which a company adopts itself to its environment-
creativity and profitability”.
-Roy Corey
The Marketing Concepts:
The marketing concept was born out of the awareness that marketing starts with the
determination of customer wants and ends with the satisfaction of those wants the concept puts
the consumer both at the end of the business cycle. It stipulates that any business should be
organized around the marketing function, anticipating, stimulating and meeting customers
requirements. The customer, not be corporation has to be the center of the business universe. A
business cannot succeed by sampling products and services that are not properly designed to
serve the needs of the customers. It proclaims, the entire business has to be seen from the point
of view of the customer.
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Marketing Research:
Marketing research is a dynamic subject it has a wide coverage including marketing
studies relating to market product policies mean and methods etc. Marketing research begins
even when production is in the planning stage. It is also continuous through out the lifetime of an
enterprise. It is thus a continuous operating although here may be some adhoc projects taken up
for solving specific problems of enterprise.
Marketing research is the collection and interpretation facts that marketing to get
production Mix efficiently in to the hands of customers. Marketing research encompasses all
information pertinent to this task. It is the systematic objective and exhaustive search from and
study of facts relevant to any problem in the field of marketing.
Definition of Marketing Research:
Marketing research is the systematic problem analysi analysis, model building and fact
for the purpose of improved, model building and fact for the purpose of improved decision
making and control in the marketing of goods and services.
Philips kotler
Marketing research serves two major functions, it provides information for decision making and
it develops new knowledge.
-Robert Ferder
We are one of Indias leading providers of telecommunication services with a nationwide
presence in all the 23 licensed jurisdictions (also known as telecom Circles). We served an
aggregate of 88,270,194 customers as of December 31, 2008; of who 85,650,733 subscribe to
our GSM services and 2,619,461 use our Tele media Services either for voice and/or broadband
access delivered through DSL. We are largest wireless service provider in the country, based on
the number of subscribers as of December 31, 2008. We also offer an integrated suite of telecom
solution to our enterprise customers, in addition to providing long distance connectivity both
nationally and internationally. We have recently forayed into media by launching our DTH and
IPTV services. All the services are rendered under a unified brand Airtel.
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The company also deploys, ownsand manages passive infrastructure pertaining to telecom
operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42%of Indus Towers
Limited. Bharti Infratel and Indus Tower are the two top providers of passive infrastructure
services in India. In developing a market plan, your primary functions are to understand the
needs and desires of your customer select or develop a product or service that will meet customer
needs, develop promotional material that will make the customer aware, and ensure product or
service delivery.
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SCOPE OF THE STUDY
The main purpose of this project is to study consumers buying, behavior and develop strategies
which help Airtel in increasing their market share. This study is mainly focused on various
factors that affect consumers buying decision. Such as social, psychological and personal.
This study helps to understand the satisfactory level of consumers towards the brand. And also
understanding the consumer attitudes and their buying motives by means of company brand
image.
NEW COMPETITORS: In addition to analysing current competitors, it is necessary to estimate
future competitive threats. The most common sources of new competitors are:
Companies competing in a related product/market
Companies using related technologies
Companies already targeting your prime market segment but with unrelated products
Companies from other geographical areas and with similar products
New start-up companies organized by former employees and/or managers of existing companies
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HISTROY OF TELECOM INDUSTRY:
The history of Indian telecom can be started with the introduction of telegraph. The Indian postal and
telecom sectors are one of the worlds oldest. In 1850, the first experimental electric telegraph line was
started between Calcutta and Diamond Harbour. In 1851, it was opened for the use of the British East
India Company. The Posts and Telegraphs department occupied a small corner of the Public Works
Department, at that time.
The construction of 4,000 miles (6,400 km) of telegraph lines was started in November 1853. These
connected Kolkata (then Calcutta) and Peshawar in the north; Agra, Mumbai (then Bombay) through
sindhuGhats,and Chennai (thenMadras)inthesouth; Ootacamund and Bangalore. William O'Shaughnessy,
who pioneered the telegraph and telephone in India, belonged to the Public Works Department, and
worked towards the development of telecom throughout this period. A separate department was opened in
1854 when telegraph facilities were opened to the public.:
Pre-1902 Cable telegraph
1902 First wireless telegraph station established between Sagar Island and Sand head.
1907 First Central Battery of telephones introduced in Kanpur.
19131914 First Automatic Exchange installed in Shimla.
1927 Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam
stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging greetings
with King George V.
1933 Radiotelephone system inaugurated between the UK and India.
1953 12 channel carrier system introduced.
1960 First subscriber trunk dialing route commissioned between Lucknow and Kanpur.
1975 First PCM system commissioned between Mumbai City and Andheri telephone exchanges.
1976 First digital microwave junction.
1979 First optical fiber system for local junction commissioned at Pune.
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1980 First satellite earth station for domestic communications established at Sikandarabad, U.P..
1983 First analogue Stored Programme Control exchange for trunk lines commissioned at
Mumbai.
1984 C-DOT established for indigenous development and production of digital exchanges.
1995 First mobile telephone service started on non-commercial basis on 15 August 1995 in Delhi.
1995 Internet Introduced in India starting with Laxmi Nagar, Delhi 15 August 1995
TELECOMMUNICATIONS INDUSTRY PROFILE
Telecom is one of the fastest-growing industries in India. Today India stands as the
second-largest telecommunications market in the world. The mobile phone industry in India
would contribute US$ 400 billion in terms of gross domestic product (GDP) of the country in
2014. This sector which is growing exponentially is expected to generate about 4.1 million
additional jobs by 2020, as per Group Special Mobile Association (GSMA).
SECTORS IN TELECOM INDUSTRY:
Broadly telecom industry can be divided into two sectors, Equipment Sector and Services Sector.
Equipment sector players manufacture telecom products whereas the services sector comprises of
operators and other service providers
TELECOMMUNICATIONS EQUIPMENT SECTOR:
The telecommunications industry equipment sector is comprised of companies that manufacture
products that are used by both end users and input to other telecommunications companies. Customers
use these products to access telecommunications services. Other telecommunications companies use these
products to create and maintain infrastructure and deliver services.
1) Telephony: The telephony segment is dominated by private-sector and two state-run businesses.
Most companies were formed by a recent revolution and restructuring launched within a decade,
directed by Ministry of Communications and IT, Department of Telecommunications and Minister of
Finance. Since then, most companies gained 2G, 3G and 4G licenses and engaged fixed-line, mobile and
internet business in India. On landlines, intra-circle calls are considered local calls while inter-circle are
considered long distance calls.
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2) Fixed Telephony: Until the new telecom policy was announced in 1999, only the government
owned BSNL and MTNL were allowed to provide land-line phone services through copper wire in India
with MTNL operating in Delhi and Mumbai and BSNL servicing all other areas of the country. Due to the
rapid growth of the cellular phone industry in India, landlines are facing stiff competition from cellular
operators. This has forced land-line service providers to become more efficient and improve their quality
of service. Land-line connections are now also available on demand, even in high density urban areas.
3) Internet: The history of the Internet in India started with launch of services by VSNL on 15
August 1995. There were 161 Internet Service Providers (ISPs) offering broadband services in
India as of 31 May 2013. The top five ISPs in terms subscriber base were BSNL (9.96 million),
BhartiAirtel (1.40 million), MTNL (1.09 million), Hathaway (0.36 million) and You Broadband
(0.31 million).
TELECOMMUNICATIONS SERVICES SECTOR:
This sector constitutes of players in telecommunications industry that provides various services to
end customers like telecom service providers, broadband service providers and intermediaries.
The telecommunications services sector can be divided into following categories:
1) WIRED SERVICES: The wired services subsector offers direct communication services,
including fixed telephone (local and long distance), broadband, and cable network services. This
subsector also builds and maintains the needed fixed-line infrastructure, including land lines, microwaves,
and satellite link-ups. This subsector also includes companies that offer non-voice communication
products, such as telegraph. The largest sector of the telecommunications industry continues to be made
up of wired telecommunications carriers. Establishments in this sector mainly provide
telecommunications services via wires and cables that connect customers premises to central offices
maintained by telecommunications companies.
2) WIRELESS SERVICES: The wireless services subsector offers services such as cellular
mobile phone, paging, satellite, broadband communication, and wireless public safety services. This
subsector operates and maintains the switching and transmission facilities to provide these services.
Companies in this sector may also supply and maintain the equipment used to receive signals. Wireless
telecommunications carriers, many of which are subsidiaries of the wired carriers, transmit voice,
graphics, data, and Internet access through the transmission of signals over networks of radio towers. The
signal is transmitted through an antenna into the wire line network. Increasing numbers of consumers are
choosing to replace their home landline phones with wireless phones. Other wireless services include
beeper and paging services.
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3) INTERNET SERVICES: The Internet services subsector offers wired, wireless, and
broadband Internet services, which are provided by telecommunications companies and Internet service
providers, also known as ISPs. Some ISPs also provide extra services, like web hosting or web page
designing. Players in this subsector may build and maintain their own infrastructure and networks or they
may share the infrastructure of other providers.
4) RESELLERS: Resellers of telecommunications services are another sector of the
telecommunications industry. These resellers lease transmission facilities, such as telephone lines or
space on a satellite, from existing telecommunications networks, and then resell the service to other
customers. Other sectors in the industry include message communications services such as e-mail and
facsimile services, satellite telecommunications, and operators of other communication services ranging
from radar stations to radio networks used by taxicab companies.
INDIAN TELECOMMUNICATIONS VISON & MISSION
VISION
To provide secure, reliable affordable and high quality converged telecommunication services
anytime, anywhere for an accelerated inclusive socio-economic development.
MISSION
1. To develop a robust and secure state-of-the-art telecommunication network providing seamless
coverage with special focus on rural and remote areas for bridging the digital divide and thereby facilitate
socio- economic development.
2. To create an inclusive knowledge society through proliferation of affordable and high quality
broadband services across the nation.
3. To reposition the mobile device as an instrument of socio-economic empowerment of citizens.
4. To make India a global hub for telecom equipment manufacturing and a centre for converged
communication services.
5. To promote Research and Development, Design in cutting edge ICTE technologies, products and
services for meeting the infrastructure needs of domestic and global markets with focus on
security and green technologies
MAJOR PLAYERS
1) Airtel (248.6 Million subscribers) Market Share (32.35%)
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Ownership (Bharti Enterprises(68%), SingTel (32%))
Business Telecommunications & satellite TV | Website www.airtel.in |
Bharti Airtel Ltd. is a substantial Indian Multinational Telecommunication Company in India.
Airtel has the highest number of Subscribers in India. Airtel Provide a Vast range of Products including
Digital television and Fixed Line Broadband. Airtel has many Retail Outlets and a good quality high end
network across India. Airtel has been awarded for one of the most valuable brand in year 2015.
Founded: 1995
Type: Public Company
Industry: Telecommunications
Services: Mobile Telephony, Broadband, Digital Television.
Key People: Sunil Bharti Mittal, GopalVittal
Headquarter: New Delhi
Products offered by company includes mobile commerce, 2G, 3G and 4G wireless services, fixed line
services, IPTV, high speed DSL broadband, DTH and enterprise services.
2) Reliance (106.81Million subscribers) Market Share (11.21%)
Ownership (Reliance ADAG (67%) Public (26%))
Corporate office Navy Mumbai, Maharashtra | Establishment 2004 |
Business Mobile, Satellite TV and telecommunication | Website www.rcom.co.in |
Reliance Communications is managed by Reliance group which has its other subsidiary as
Reliance Big TV Ltd, Reliance Global.com Ltd, Reliance Entertainment, etc.
Founded: 2002
Type: Public Company
Industry: Telecom Services
Services: Mobile Telephony, Broadband Services.
Key People: Anil Ambani, VinodSawhny.
Headquarter: Mumbai
The Companys product offerings include wireless, broadband, national and international long distance
services.
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3) Tata DoCoMo(60.89 Million subscribers) Market Share (6.28%)
Ownership (Tata Teleservices(74%), NTT DoCoMo (26%))
Corporate office New Delhi | Establishment 2008 |
Business Telecommunication sector | Website www.tatadocomo.com |
A Tata Group company providing cellular service on the GSM, CDMA and platform. It is among the top
telecom companies in India and the first Indian telecom company to launch 3G services in India.
4) Vodafone (196.7Million subscribers) Market Share (25.59%)
Ownership (VodafoneGroup(100%))
Corporate office London, United Kingdom | Establishment 1991 |
Business Telecommunications | Website www.vodafone.in |
Vodafone is a leading global telecommunications company with operations in over 30 countries. Head
quartered in London, the company ranks amongst the top 4 telecom companies globally in terms of
subscribers and revenues. Company owns 45% of Verizon Wireless, the largest mobile telecom company
in the US measured by subscribers.
Founded: 2008
Type: Joint Venture
Industry: Telecommunication
Services: Mobile Network, Wireless Broadband.
Key People: Cyrus PallonjiMistry
Headquarter: New Delhi
5) Idea (174.6Million subscribers) Market Share (22.72%)
Ownership (Aditya Birla Group(100%))
Corporate office Mumbai, Maharashtra | Establishment 1995 |
Business Telecommunications | Website www.ideacellular.com |
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Idea Cellular which is commonly known as Idea is an Indian foremost Telecom Service Provider
in India. Idea is familiar for its reasonable Mobile Telephony Services and also offers 2G and 3G Mobile
Internet services. Idea also manufactures Smart phones which are easily available in Offline as well as
Online Marketplaces. Idea holds a strong network of sales and services and retail outlets across India.
Founded: 1995
Type: Public Company
Industry: Telecom Services
Services: Wireless Broadband, Mobile Telephony
Key People: Kumar Mangalam Birla
Headquarter: Mumbai
6) MTNL (3.6 Million subscribers) Market Share (0.36%)
Ownership (State-owned)
Corporate office New Delhi | Establishment 1986 |
Business Telecommunications | Website www.mtnl.net.in |
Mahanagar Telephone Nigam Limited is an Indian state-owned telecommunications company. MTNL
provides services in New Delhi and Mumbai in India and Mauritius in Africa.
CEO: Pravin Kumar Purwar
Headquarters: New Delhi
Founded: 1986
Parent organization: Government of India
7) Aircel (86.06 Million subscribers) Market Share (8.47%)
Ownership (Maxis Communications (74%), Sindya Securities and Investments (26%))
Corporate office Chennai, Tamilnadu | Establishment 1999 |
Business Telecommunications | Website www.aircel.com |
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Aircel is a Leading Telecom Operator in India. Aircel offers Voice and Internet Services for Mobile
Users. Aircel launched the first 4G Mobile internet service in 2014 and become the first only private
Telecom Operation which offers all the three technologies as 2G, 3G, and 4G.
Founded: 1999
Type: Joint Venture
Industry: Telecommunications
Services: Mobile Telephony, Wireless Broadband.
Key People: kaizadheerjee
Headquarter: Chennai
8) MTS (8.13 Million subscribers) Market Share (0.89%)
Ownership (Sistema (56.68%) Shyam Group(23.98%) Government of Russia(17.14%))
Corporate office New Delhi | Establishment 2008 |
Business Telecommunications | Website www.mtsindia.in |
Founders: Moscow City Telephone Network, T-Mobile, Siemens
Parent organization: Sistema
Subsidiaries: Vodafone Ukraine, Universal Mobile Systems, K-Telecom CJSC, MTS Turkmenistan
9) Telenor (5.16 Million subscribers) Market Share (4.91%)
Ownership (Telenor (100%))
Corporate office Gurgaon, India | Establishment 2009 |
Business Telecommunications | Website www.uninor.in |
Telenor India earlier known as Uninor is an Indian Telecom Operator which provides Mobile Telephony
and Internet services in India. Telenor holds the license of providing its services in only six Indian states
like Maharashtra & Goa (circle), Uttar Pradesh, Bihar, Uttarakhand, Gujarat and Andhra Pradesh
&Telangana (circle). Telenor largely offers Low Voice Tariff and is well known for it.
Founded: 2009
Type: Private Company
Industry: Telecom Services
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Services: Mobile Telephony, Wireless Internet.
Key People: VivekSood
Headquarter: Gurgaon
10) BSNL (85.29 Million subscribers) Market Share (8.19%)
Ownership (State-owned)
Corporate office New Delhi | Establishment 2000 |
Business Telecommunications | Website www.bsnl.co.in |
Bharat Sanchar Nigam Limited or commonly known as BSNL is an Indian Telecom Company which
provides Voice and Data services in India. BSNL Provides its Services in each and every place in India
except the Densely Populated City Mumbai and Delhi. BSNL is Operated by Government of India and is
the only Government Owned Telecom Operator in India rather than MTNL which was earlier present
before the establishment of BSNL.
Founded: 2000
Type: State-Owned Entity
Industry: Telecommunications
Services: Mobile Telephony, Data Services.
Key People: AnupamShrivastava
Headquarter: New Delhi
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AIMS AND OBJECTIVES
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METHODOLOGY
METHODS OF DATA COLLECTION:
The Data has collected in two ways:
Primary Data:
Primary data are those, which are collected for the first time, and they are
original in character. A suitable combination of Questionnaire techniques, & discussion with
the respondents was used to collect the required Primary data.
Secondary data: -
Secondary data are those, which are already collected by someone for some purpose
and are available for the present study. Secondary data was collected from the magazines,
websites and other such sources.
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FEASIBILTY
13
USP
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LIMITATIONS
The study is restricted only to AIRTEL, Delhi respondents. The view of their other areas
is not taken.
Few respondents answer was collected.
Respondents concentrated where the customers of AIRTEL only.
Since the researcher selected 50 sample size it is not sufficient to cover opinion of entire
population.
Time duration in conducting the research is very low.
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SWOT ANALYSIS
* SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate strength weaknesses,
opportunity and threats involved in a project or in Business. SWOT analysis will give us a quick
review of an organization current status. SWOT analysis for Airtel in India:
STRENGTHS
Cost advantage
Current leaders in quality service
Largest distribution network
Ability to constantly innovate
Highly skilled workforce
WEAKNESSES
To prove credibility
Price pressures
Need for Government support
Awareness
Sales and Marketing
OPPORTUNITIES
To sustain passion and commitment
Airtel's market share increasing at other service provider expense.
Attain higher value services
Collaborative business needs to be explored
Vertical repeatable solutions.
Low penetration level in rural markets.
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THREATS
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ANALYSIS AND INTERPRETATION
Analysis & Interpretation:
The responses of the customers are valued in this analysis to find the satisfaction of the
product. The percentage analysis gives the percentage of the respondent's satisfaction with
regards to the various components which drives them to buy the product.
1. Table showing the opinion on signaling at their area
Frequency Percentage(%)
Good Signal 65 81
Bad signal 15 19
Total 0 0
Table 4.1
Apart showing the opinion on signal at their area:
Interpretation:
The above table shows that 81% consumers feel that signal of AIRTEL at their area is
good, remaining 19% of them feel that signal is not good.
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2. Table showing the opinion on customer care services
Frequency Percentage (%)
Satisfied 45 56
Not Satisfied 25 31
Never Used 10 16
Total 80 0
Table 4.2
Chart Showing the Opinion on Customer Care Services
Chart 4.2
Interpretation:
The above table shows that 56% of the customers are satisfied with the customer care
services, where as 31% are not satisfied the remaining 16% doesnt use customer care services.
3. Table showing occupation of different users
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Occupation Users Percentage
Student 33 41
Executive 22 28
Household 15 19
OTHER 10 13
Total 80 100
Interpretation:
Above graph shows that 41%of the students use the Airtel and least were used by others
with 13%.
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4. Table showing whether customers use INTERNET services
Frequency Percentage
Using 65 81
Not Using 15 18
Total 80 99
Chart 4.4
Interpretation:
The above table shows that 65% of the customers use internet remaining 18% Not using internet
services.
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CONCLUSION
Airtel is a very successful brand in India & providing customer satisfaction is to be there
main motive, Provides Internet access on the move as people are more dependent on it in their
daily lives like wide network and good 3G services.
Providing customer satisfaction is the most crucial step of the company as they are to be satisfied
and provides Internet access on the move such as Wide network and good 3G services as they
are important and technology advanced stuff required by almost everybody in today's
environment,
Airtel is a home brand and a very successful brand in India and overseas and one of the most
successful brands still to date. It possesses congestion free & wide network, unique value added
& customer services to cover one of the widest areas.
From the details it can be concluded that 70% of Airtel users preferred to remain with Airtel.
Also good number of users who were willing to switch from their respective subscribers showed
interest in Airtel. Hence, these statistics imply a bright future for the company. Also the company
is used mainly by executives who want wide coverage for their operations but the problem of
customer satisfaction still persists with the company and cause of its lacking new customers.
Connectivity is the backbone of the company and it is still the reason why consumers use it and
the most users of the company fall in the youth category and are now using postpaid services as
they are aware of the services provided as the youth is the main target of major of companies as
the country mainly comprises of
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SUGGESTION
Following are the few suggestions to AIRTEL for improving the market share and image
of the products concerned.
Modification must be brought about in AIRTEL, in terms of quality. Its demand should
be increased and provides its consumer with value added services as to retain them.
In today's age the brand must focus on other areas to market it like Malls, theatre and
crowed area to get attention and market it and gather audience interest.
Most of the respondents are satisfies with the services provided by Airtel to mobile user
steps to be taken to make customers more satisfied but many are still not aware of phone
plus facility and steps are to be taken to popularize it.
Many of the respondents are not satisfied with the features provided to prepaid users as
compared to Landline users.
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REFERENCES
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