A Training Project Report

On
An Analytical STUDY OF SALES PROMOTION activities
and CONSUMER AGE ON NETWORK at BHARTI AIRTEL
LTD.

Faculty guide :

Company guide :

Mr. Deepak singh

Mr. Jitendra chadha

Lecturer {Mkt.}

ZSM {Jaipur zone}

JKPS, Gurgaon

Bharti hexacom ltd.

Submitted by ;
Gaurav prakash swami
Roll No. JKPS/PGDM/09/14
In fulfillment of requirement of PGDM 2009-11

JK Padampat Singhania Institute of Management & Technology

Damdama Lake Road, Bhondsi, Gurgaon
1

CERTIFICATE BY AIRTEL

Self Declaration Certificate

I hereby declare that the project entitled An Analytical STUDY OF SALES PROMOTION
activities and CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD.
Submitted for the PGDM is my original work and the project has not formed the basis for the
award of any other degree.

Signature of the Student:

Place: Jaipur
Date:

Acknowledgement
The satiation and euphoric that accompany the successful completion of the task would be
incomplete without the mention of the people who made it possible. After all, success is the
epitome of hard work, severance, undeterred missionary, zeal, steadfast, determination and most
of all encouraging guidance. So, immense gratitude, I acknowledge all those whose guidance and
encouragement served as a beacon light and crowned my effort with success.
I sincerely thank Mr. Jitendra chadha {ZSM, Jaipur}, BHARTI HEXACOM LTD.
{AIRTEL} for giving opportunity to associate myself to the Indias largest telecom company and
to carry out my project titled An Analytical STUDY SALES PROMOTION activities and
CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD
I would like to express my profound sense of gratitude to My Faculty guide Mr. Deepak singh
for guiding me as well as providing me support to conduct the project With a deep sense of
gratitude and indebtedness, I sincerely and whole heartedly thank my fellow colleagues and the
staff team at BHARTI HEXACOM LTD, JAIPUR. For giving me value suggestions and advice
throughout the execution of the project. This project would not have been concluded successfully
within the time without their proper support and help.

Gaurav prakash swami

JKPS
Gurgaon

CERTIFICATE OF THE FACULTY SUPERVISOR

Mr. Deepak singh
Lecturer (Marketing),
JKPS IM&T,
Gurgaon,
This is to certify that the work entitled is An Analytical STUDY SALES PROMOTION
activities and CONSUMER AGE ON NETWORK at BHARTI AIRTEL LTD
A piece of summer internship work done by Gaurav prakash swami under my guidance and
supervision, for the partial fulfillment of award of PGDM of JK Padmapat Singhnia Institute
of Management and Technology, Gurgaon. To the best of my knowledge and belief the Project
work -(1)

Embodies the work of candidates himself.

(2)

Has duly being completed.

(3)

Fulfills the requirement of the ordinance relating to the PGDM in Management of

the College/ university.

(4)

Is up to the standard both in respect of contents and language for being referred to
the examiner.

Mr. Deepak singh (Lecturer)

JKPS IM&T, Gurgaon

PREFACE
The objective of any marketing activity is to sell a product. For this, one must have the right
product at the right price, available at the right time and place, through the right promotion
commonly understood as the 4 Ps of marketing mix. The fundamental point to be appreciated is
that all these variables must simultaneously fall in place for the success of a product. Take a look
around you at all the successful brands and ask the marketing managers the reason for success.
They will invariably tell you that it is because the company has been able to get this mix right.
If one were to examine these variables carefully one will realize that thee are indeed ways of
communicating with the consumer. A product talks to the consumer through its features,
packaging and the promise of fulfilling a need .Its pricing tells the consumer whether it is
affordable, value for money or premium. Its placement also communicates the values associated
with the product. A premium store versus a discount store communicate very different message
to the consumer .The promotion of the product also obviously communicates some message to
consumer.
In effect therefore, marketing is all about communication, whether through the product and its
packaging, the pricing, the placement and the promotion. We would therefore like to use the term
communication mix and highlight the importance of sales promotion in that context.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION ABOUT THE TOPIC.9
1.2 OBJECTIVE OF THE STUDY.. 14
1.3 SCOPE OF THE STUDY....14
1.4 METHOD OF DATA COLLECTION.....14
CHAPTER 2: COMPANY PROFILE
2.1 TELECOM INDUSTRY IN INDIA........15
2.2 BHARTI AIRTEL LTD.......17
2.3 VISION OF BHARTI AIRTEL...22
2.4 HISTORY OF THE COMPANY........22
2.5 CORPOATE GOVERNANCE............35
CHAPTER 3: THE COMPETITIVE AREA
3.1 COMPETITORS PROFILE.......41
3.2 MARKETING STRATEGY BY AIRTEL.....48
3.3 PROMOTIONAL STRATEGY......51
3.4 TARGET MARKET SEGMENT52

CHAPTER 4: ANALYSIS
4.1 DATA ANALYSIS......55
4.2 FINDING...72
4.3 SUGGESTION..73
4.4 LIMITATION OF STUDY...74
4.5 CONCLUSION..75
4.6 BIBLIOGRAPHY..76

1.1 INTRODUCTION ABOUT THE TOPIC

This project is made on the project title An Analytical STUDY OF
SALES PROMOTION activities and CONSUMER AGE ON NETWORK at BHARTI
AIRTEL LTD.
The purpose of this project is to know about the use of mobiles and the
need of sales promotional activities and to know what are the promotional activities company
follow to increase the sale. Now a days mobile service has become a necessary service. In field
of marketing many kind of survey are conducted by Airtel time to time for promotion awareness.

What is Sales Promotion?

Sales promotion describes promotional methods using special short-term techniques to persuade
members of a target market to respond or undertake certain activity. As a reward, marketers offer
something of value to those responding generally in the form of lower cost of ownership for a
purchased product (e.g., lower purchase price, money back) or the inclusion of additional valueadded material (e.g., something more for the same price).
Sales promotions are often confused with advertising. For instance, a television advertisement
mentioning a contest awarding winners with a free trip to a Caribbean island may give the
contest the appearance of advertising. While the delivery of the marketers message through
television media is certainly labeled as advertising, what is contained in the message, namely the
contest, is considered a sales promotion. The factors that distinguish between the two
promotional approaches are:
1.

whether the promotion involves a short-term value proposition (e.g., the contest is only
offered for a limited period of time), and

2.

The customer must perform some activity in order to be eligible to receive the value
proposition (e.g., customer must enter contest). The inclusion of a timing constraint and an
activity requirement are hallmarks of sales promotion.
Sales promotions are used by a wide range of organizations in both the consumer and
business markets, though the frequency and spending levels are much greater for consumer
products marketers. One estimate by the Promotion Marketing Association suggests that in
the US alone spending on sales promotion exceeds that of advertising.

SALES PROMOTION TECHNIQUES OF COMPANY

Good Advertising. Effective Incentive Policy.

Good services.

Wide & Deep Distribution System.

Decorating Retailers shop by display board, dealers board etc.

Posters.

Banners.

Types of Sales Promotion

Sales promotion can be classified based on the primary target audience to whom the
promotion is directed. These include:

Consumer Promotion

Trade Promotion
10

Sales force Promotion

Consumer Sales Promotion

Consumer sales promotions encompass a variety of short-term promotional techniques designed
to induce customers to respond in some way. The most popular consumer sales promotions are
directly associated with product purchasing. These promotions are intended to enhance the value
of a product purchase by either reducing the overall cost of the product (i.e., get same product
but for less money) or by adding more benefit to the regular purchase price (i.e., get more for the
money).
While tying a promotion to an immediate purchase is a major use of consumer sales promotion,
it is not the only one. As we noted above, promotion techniques can be used to achieve other
objectives such as building brand loyalty or creating product awareness. Consequently, a
marketers promotional toolbox contains a large variety of consumer.
There are several possible tools that can be used for consumer promotions. Some of the more
important ones are:

Sampling

Price-off

Quality deals

Banded offers

In-product gift
11

Out- product gift

Coupons

Consumer contests

Trade Sales Promotions

As note in the Promotion Decisions Tutorial, certain promotions can help push a product
through the channel by encouraging channel members to purchase and also promote the product
to their customers. For instance, a trade promotion aimed at retailers may encourage retailers to
instruct their employees to promote a marketers brand over competitors offerings. With
thousands of products competing for limited shelf space, spending on trade promotion is nearly
equal that spent on consumer promotions.
Many sales promotions aimed at building relationships with channel partners follow similar
designs as those directed to consumers including promotional pricing, contests and free product.
In addition to these, several other promotional approaches are specifically designed to appeal to
trade partners.

Techniques used in trade promotion

On-consignment sales

Dealer contests

Dealer gifts

Display contests

Point of sale material

Shop board painting

Dealer discounts

Trade fair participation

Dealer meets
12

Cooperative advertising

Advantages and Disadvantages of sales Promotion

Sales Promotion techniques yield results that many other marketing communication elements
cannot achieve .For example it can turn around a sales trend in the short run ,help introduce a
new product by encouraging consumer and retail acceptance ,reinforce message driven by other
communication mix element ,etc.Some of the benefits of sale promotion :

Sales promotion produces result by stimulating people to act to try, to buy, to buy more,
or to buy more often. It can lead to trial, generate excitement, encourage rein peat
purchase, attract switchers, etc. It is especially helpful in situations where there is
extreme pressure to increase sales eg.at the end of the year when there are shortfalls in
budgeted sales.

It produces immediate results. While advertising or public relation act as an investment

producing sales in the long run, sales promotion works during a definite span of time.
Most of the sales come during the sale promotions period itself. Very often, if the
promotion is successful, one can get results within hours, days or weeks.

It can prevent competitor entry or offset competitor promotions and thus help maintain
the brands current market share.

Sales promotion techniques directed at channel members or sales force can gain channel
support and involvement and help push the product. It helps in getting shelf space and
merchandising benefits at the retail level, clearing off excess inventory, motivating sales
people to find new contacts etc.

Sales promotion is relatively easy to design and implement. It is possible to calculate costs effect
on sales and sometimes even on competitor sales.

DISADVANTAGES OF SALES PROMOTION

13

Most sales promotion is used for short-term results. Any excessive use can shift the
focus on short-term marketing planning that acts only at the behavioral level.

Increasing sales promotion activities has led to clutter, leading companies to cut each
other and thus eroding the bottom line.

In mature markets sales promotion does not do much in attracting new customers but only
switchers who are dear prone.

1.2 OBJECTIVE OF STUDY

Primary research objective:To study and interpret the sales promotion schemes running by airtel in jaipur zone. And to know
that how the consumer can be retain for maximum time on same network.
Secondary research objective:

To determine the most popular telecom brand

To determine the average age on consumers on same network

To determine the best sales promotion scheme

To determine the consequences of current schemes

14

1.3 SCOPE OF STUDY

The Scope of the Research study would include the geographic & Demographic region of Jaipur.
The research targets the retailers and distributors who deal into telecom services
and the time period of the survey is from 3 May 20 June 2010.

1.4 DATA COLLECTION METHOD

PRIMARY METHOD: - Data was collected from respondents through direct interaction and
through personal meetings.
SECONDARY METHOD: - External study data has also been used through internet. And
through news letters & journals.

2.1 TELECOM INDUSTRY IN INDIA

Indian telecom sector, like any other industrial sector in the country, has gone through many
phases of growth and diversification. Starting from telegraphic and telephonic system in the 19 th
century, the field of telephonic communication has now expanded to make use of advanced
technologies like GSM, CDMA, and WLL to great 3G technology in mobile phones. Day by day,
both the public players and the private players are putting in their resources and efforts to
improve the telecommunication technologies so as to give maximum to their customers.
The Telecom industry of India is on the edge of becoming the second biggest telecom
sector in the world with an overall compactness of telecommunications of up to 47.89%. In the
year 2009, the industry attracted subscribers of over 562.21 million which was 3.5% greater than
its previous year, as per Telecom Regulatory Authority of India (TRAI) report.
The Indian telecom industry registered annual revenues of over US$ 8.57 billion in 2009
triggered by the revival in incomes from landline and mobile services. By 2014, the industry is
15

anticipated to surface as the highest element in the nation's GDP by contributing up to 15.5%.
Currently, the telecom industry is on an expansion spree and is adding 9-11 million cellular
phone subscribers per month. With this pace the sector is estimated to cover more than half of the
nation's

population

by

2012.

2010 Budget Telecom Industry Expectations are re-introduction of tax exemptions in

context of system rollouts in rural districts and to telecom infrastructure service providers, tax
relief to businesses undergoing reformatting mentioned in provisions under Section 80IA (12A)
by the Finance Act, 2007, special additional duty (SAD) compensation, accessibility of Cenvat
Credit in case of relocation of the business, tariffs of not up to 0.5-2% and explanation on tax
reduction of entire spectrum charge.

GSM Mobile Market Share In India

1. Bharti Airtel: 121.7 million (30.86%)
2. Vodafone Essar: 94.1 million (23.87%)
3. IDEA: 59.8 million (15.19%)
4. BSNL: 59.4 million (15.08%)
5. Aircel: 33.0 million (8.38%)
6. Reliance Telecom: 15.7 million (4.0%)
7. MTNL: 4.6 million (1.17%)
8. Loop Mobile: 2.7 million (0.69%)
9. Uninor: 2.5 million (0.64%)
10. STel: 0.5 million (0.13%)
Total Users: 395.3 million

16

2.2 BHARTI AIRTEL LTD

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has
a diverse business portfolio and has created global brands in the telecommunication sector.
Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with WalMart for the cash & carry business. It has successfully launched an international venture with EL
Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and
has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Airtel comes from Bharti Airtel Limited; Bharti Airtel is one of the leading alternative providers
of telecommunications services in India and the first private telecom services provider with a
footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country with its world class
17

products and services. The businesses at Bharti Airtel have been structured into three individual
strategic business units (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise
Services. The mobile business provides mobile & fixed wireless services using GSM technology
across 23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to
corporate customers and national & international long distance services to carriers. All these
services are provided under the Airtel brand.
Airtel comes from Bharti Airtel Limited, one of Asias leading integrated telecom services
providers with operations in 18 countries across Asia and Africa. Bharti Airtel since its inception
has been at the forefront of technology and has pioneered several innovations in the telecom
sector.
The company is structured into four strategic business units - Mobile, Telemedia, Enterprise
and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The
Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The
Digital TV business provides Direct-to-Home TV services across India. The Enterprise business
provides end-to-end telecom solutions to corporate customers and national and international long
distance

services

to

telcos.

Airtel was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven to seize the
day with an ambition to become the most globally admired telecom service. Airtel, in just ten
years of operations, rose to the pinnacle to achievement and continues to lead.
As India's leading telecommunications company Airtel brand has played the role as a major
catalyst in India's reforms, contributing to its economic resurgence.

COMPANY PROFILE
Date of Establishment 1995
Revenue6716.88 ( USD in Millions )
Market Cap 1062548.9208608 ( Rs. in Millions )
18

Corporate Address- Aravali Crescent ,1 Nelson Mandela Road,Vasant Kunj Phase 2 New
Delhi-110070, Delhi
Chairperson - Sunil Bharti Mittal
MD - Sunil Bharti Mittal
Directors - Ajay Lal, Akhil Gupta, Arun Bharat Ram, Bashir Currimjee, Chua Sock Koong,
Craig Ehrlich, Deven Khanna, Lim Chuan Poh, Manoj Kohli, Mauro Sentinelli, N Kumar,
Nikesh Arora, Paul O'sullivan, Pulak Chandan Prasad, Quah Kung Yang, Rajan Bharti Mittal,
Rakesh Bharti Mittal, Sarvjit Singh Dhillon, Sunil Bharti Mittal, Tan Yong Choo, Vijaya
Sampath
Bharti Airtel, incorporated on July 7, 1995 is the flagship company of Bharti Enterprises. The
Bharti Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti Airtel is Asias leading integrated telecom services provider
with operations in India and Sri Lanka. Bharti Airtel has been at the forefront of the telecom
revolution and has transformed the sect
Company Secretary- Vijaya Sampath
Bankers Auditors- SR Batliboi & Associates

Business Divisions-

The enterprise services group includes units for both long-distance carriers and for corporate
clients. Bharti Airtel has nearly 29 million total customers -- approximately more than 27 million
GSM mobile and 1.6 million fixed-line customers.
The company was founded as Bharti Tele-Ventures in 1995 and changed its name in early 2006
to Bharti Airtel Limited. It is a unit of Indian conglomerate Bharti Enterprises)
Sunil Bharti Mittal (Chairman and Group Managing Director)

19

This highly innovative company created telecom history when it farmed out its network
management to experts Nokia and Ericsson, and set a trend in the global cellular industry. Last
year, Vodafone gave the company a vote of confidence by acquiring 10% mostly from early
Bharti investor Warburg Pincus. This year, Bharti will offer its second overseas services after the
Seychelles. It acquired a license for tax haven Jersey, in the Channel Islands, and is looking for
more. It also plans to spend $2 billion this year to double the size of its network and cover 50%
of India's population, up from 40% currently. )

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest
mobile service provider in the country, based on the number of customers.

20

The group offers high speed broadband internet with a best in class network. With Landline
services in 94 cities we help you stay in touch with your friends & family and the world. Get
world class entertainment with Indias best direct to home (DTH) service digital TV in more
than 150 cities.

Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier
customers. This division comprises of the Carrier and Corporate business unit. Enterprise
Services is regarded as the trusted communications partner to India's leading organizations,
helping them to meet the challenges of growth.

21

Discover the magical experience of digital entertainment with Airtel. From DVD quality picture
and sound, the best and widest variety of channels and programmes to the best on-demand
content on Airtel Live, your TV viewing experience change forever with digital TV from Airtel!

2.3 VISION OF BHARTI AIRTEL By 2010 Airtel will be the most admired brand in India:

22

Loved by more customers

Targeted by top talent
Benchmarked by more businesses

2.4 HISTORY OF THE COMPANY

Bharti Tele-Ventures was incorporated on July 7, 1995 as a companywithlimited liability under

the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received
certificate for commencement of business on January 18, 1996. The Company was initially
formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events since
Bharti Tele-Ventures was incorporated in 1995 is as follows:

Calendar year & Events

1995

Bharti Cellular launched cellular services'AirTel'in Delhi

1996

STET International Netherlands NV, or STET, a company promoted by Telecom Italia,

Italy acquired a 20% equity interest in BhartiTele-Ventures

Bharti Telenet launched cellular services in Himachal Pradesh

1997

23

British Telecom acquired a 21.05% equity interest in Bharti Cellular

Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh

circle
Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT, for
providing VSAT services

1998

Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT

Internet for providing Internet services

First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle
on June 4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of DoT
(now BSNL)

1999

Warburg Pincus (through its investment company Brentwood Investment Holdings

Limited) acquired a 19.05% equity interest in Bharti Tele-Ventures

Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular Holdings)

acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the

cellular services provider in Karnataka and Andhra Pradesh circles

New York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in Bharti
Cellular

2000

24

Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti Mobinet

(formerly Sky cell Communications), the cellular services provider in Chennai

Bharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in Bharti Telenet
and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100% subsidiary of

Bharti Tele Ventures

SingTel (through its investment company Pastel Limited) acquired STET's 15.3% equity

interest in Bharti Tele-Ventures

Bharti Tele-Ventures acquired an additional effective 41.64% equity interest in Bharti
Mobile (by acquiring the remaining 36.55% equity interest in SC Cellular) resulting in
Bharti Tele-Ventures holding an effective 74% equity interest in Bharti Mobile.

2001

Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular

Bharti Telesonic entered into a joint venture, Bharti Aqua net, with SingTel for

establishing a submarine cable landing station at Chennai

Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million to
SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and See jay Cellular and Bharti

Telecom
Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice Cell ),

the cellular services provider in Kolkata

Bharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial from Bharti Telecom

and Intel, respectively

Bharti Tele-Ventures acquired a 44% equity interest in Bharti Cellular from British

Telecom, thereby making Bharti Cellular its 100% subsidiary

Bharti Tele-Ventures acquired an additional 49% equity interest in Bharti Mobinet from
Millicom International and BellSouth International, thereby owning 89.5% equity
interest in Bharti Mobinet, which was further increased to 95.3% following an issuance

of additional equity shares by way of rights issue

Punjab license restored to Bharti Mobile by the DoT and migration to NTP - 1999

accepted
Bharti Cellular entered into license agreements to provide cellular services in eight new
circles following the fourth operator cellular license bidding process
25

Bharti Telenet entered into license agreements to provide fixed-line services in the

Haryana, Delhi, Tamil Nadu and Karnataka circles

Bharti Telesonic entered into a license agreement with the DoT to provide national long

distance services across India

Bharti Aqua net, Bharti Telesonic and Bharti Cellular entered into license agreements

with the DoT to provide ISP services in India

Bharti Telesonic launched national long distance services under the brand name of India

One
Bharti Telenet launched fixed line services in Haryana under the brand name of
TouchTel.

2002

Comes out with issue of 18.53 crore equity shares through book building route with a
floor price of Rs 45 per share, received bid for 18.55 crore shares. Through the issue, it

becomes the first company in India to come out with 100% book building issue
Issue price fixed at Rs 45 per share, floor price fixed by the company. Raises Rs 834

crore
Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of Rs 45
Enters into a 5-year agreement with Escotel and ETL of the Escorts group to contract

leased line connectivity for its cellular operations

Mr. Ravi Akhoury ceases to be Director of Bharti Tele
DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the company
Signs MoU with Telia AB to buy out their 26% stake in Bharti Mobile
Ties up with SSC (Secondary School Certification) Board, Hyderabad, where Bharti will

announce SSC results to its customers on their mobile phones

ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs
Bharti forays into Mumbai with offers
Alpine International Ltd. and ELM International Ltd. acquire shares of Bharti TeleVentures

26

Sunil Mittal, Chairman & Managing Director of the company, bags Businessman of the
year award by Business India

2003

Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle

Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti
Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel
Ltd through scheme of Amalgamation. The merged entity would be renamed as Bharti

Infotel Ltd
Air Tel launches Local direct dialing facility in Chennai circle
Mobilizes 5 m long term foreign currency borrowings for expansion of cellular

operations
Bharti Cellular unveils Care Touch service
Bharti Group's cellular brand Airtel has unveiled free multimedia messaging services
(MMS) for its customers. The company has also rolled out pan-India GPRS (General

Packet Radio Services) for its corporate subscribers

Launches its `India One Meet press' audio-conferencing service
Punjab, Haryana get free incoming calls from Airtel
AirTel provides SMS facilities to hearing impaired in Chennai
Goa, Maharashtra gets 'voice portal' services by Bharti Cellular-Launches free additional

connection to its new subscribers in New Delhi

Mr. Sin Hang Boon and Mr. Wong Hung Khim have resigned from the Board of

Directors of Bharti Tele Ventures Ltd with effect from February 27, 2003.
Airtel provides SMS cricket updates
Bharti Mobinet Ltd, the Bharti group company that provides the AirTel mobile service in
Chennai, today launched its GPRS (General Packet Radio Service) network and an MMS

(multimedia messaging) on the GPRS platform

AirTel unveils new ring tones for Karnataka cellular market
AirTel Subscribers exceed 3 million mark
AirTel unveils RAD system
27

Mr. P M Sinha resigns from the Board of Directors of the Company with effect from

March 31, 2003.

Bharti TeleVentures announces the completion of merger with Bharti Mobitel
Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. AirTel reintroduces 'Mobile 2

Mobile' offer for Karnataka customers

AirTel, Touchtel jointly offer freeTouchtel land line for post-paid Airtel connection
AirTel rolls out voice mail service for pre-paid customers
AirTel unveils new scheme for pre-paid customers giving away free talk time worth Rs

10crore
Airtel surpasses 4 lakh subscriber base in Karnataka
Bharti announces new tariff plan AirTel 012
Offers 0-1-2, a new cellular package for the customers, which means zero charges on
incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 on mobile-to-mobile STD

calls
Rolls out Airtel messenger service
AirTel offers bundled handset, connection package for Rs 5715
Airtel slashes SMS rates to 60 paisa; excludes Delhi and Mumbai
Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake to

100% in Bharti Mobile

Iinks distribution pact with Hathaway Cable. With this alliance, Bharti is said to be the

first telecom firm to step into television distribution services

Six cell operators move over from Bharti to VSNL
Airtel augments cellular coverage in TN by including Arcot & Walajapet in its network
Airtel ties up with Coke in Chennai to sell its Magic prepaid cards
AirTel embarks on network expansion in Hyderabad
Airtel unveils India One Long Distance Calling Card
AirTel introduces unified tariff package in TN, Chennai
Airtel becomes front runner in Karnataka's mobile services market
Bharti Tele launches 'Always on' service to its subscribers
SBI, AirTel announce EMI offer at Rs 299
Bharti and MTV join hands to launch new SIM card
AirTel unveils new post-paid scheme at zero rental
AirTel launches `Happy Plan' in AP
Airtel emerges as the highest selling pre-paid card
Airtel join hands with Alcatel & Videocon to launch new scheme
AirTel service provider touches 5 lakh customers in Punjab
Airtel offers 5 new services for its customers in Mumbai
Bharti launches first dual band network in Delhi
Gets 14th place among top 25 Cos in India
28

Bharti Mobile crosses 4 lakh mobile subscribers in AP

Airtel holds top position in terms of dealer penetration
Prof. V S Raju has been inducted on the Board of Directors of the Company.
Touchtel launches SMS service in fixed line phones in Karnal, Panipat
AitTel unveils special offers in Kerala
AirTel launches InnoWest for the western region
Bharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt. Ltd
Airtel slashes out going sms price to 30ps
AirTel on December 16, 2003 announced the launch of expense tracker service, which
provides customers the option of tracking their day-to-day expenses on a daily or
monthly basis. To avail of this service, the customer should register himself by sending
EXP REG your mail ID{gt} to 3020. This service will allow a user to track expenses,

while on the move by sending an SMS. Each SMS sent to 3020 would cost Rs 3.
AirTel introduces MTV Club Card in Chennai

2004

Bharti unveils new card for Mecca pilgrims

AirTel enrolls 50,000 customers in its mobile service in 60 days
Launches WAP enabled portal Service in Kerala
Bharti Cellular's AirTel has extended its mobile connectivity to Karaikkal, Nagur,

Mannargudi and Kovilpalayam in Tamil Nadu circle.

Airtel customer base touches new high of 5 lakh mark in Andhra Pradesh
Mobile service provider AirTel is launching its first ever MMS (Multi Media service)

downloads in Tamil. The launch of this service has been timed to coincide with Pongal.
AirTel tie up with MAA TV
Airtel launches Rs 50 pre-paids recharge
AirTel launched a family pack for its post-paid customers in Chennai on January 29.
According to a press release, the family pack may have a maximum of 10 members
spread across the country. The combined basic plan fixed charges/rental of all family
members in the pack will have to be equal to Rs 450 but less than Rs 1000 for the family
450 pack and above Rs 1000 for the family 1000 pack. The offerings under family pack
450 include 15 free mobile to mobile STD minutes within the family, 50 free local calling
minutes to each family member, calls within the family in same circle at 50 paisa per

minute, 25 free local SMS and one subscription alert service free for 3 months.
Bharti Tele-Ventures enters into a three year service agreement with Ericsson
29

Bharti Tele-Ventures (BTVL) has signed and received unified access service license to
provide GSM services in five circles including Uttar Pradesh (East), West Bengal &
Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. The license has been granted to

Bharti Cellular Ltd (BCL), the cellular arm and subsidiary of BTVL.
Airtel announces the signing of the first-ever bilateral roaming agreement between an
Indian mobile service provider and its counterpart in Pakistan. This facility will be
available to pre-paid as well as post-paid customers. AirTel's roaming agreement is with

Mobil ink, the only GSM cellular service provider in Pakistan

Acquires switching systems from Tekelec that will give a technological edge to the

company
Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with

InfoTech major IBM, estimated to be in the range of 0-750 million for a ten-year period.
Jayant Khosla, new chief executive officer, Mumbai
Signs MoU to join the South East Asia - Middle East - Western Europe 4 (SEA-ME-WE-

4) consortium along with 15 other global telecom operators.

Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latter's 67.5

per cent stake in cellular services company Hexacom for Rs 430 crore.
Bharti Tele garners 0 m via FCCBs
Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling

its mobile handsets with a connection.

The Bharti group finalized an Rs 500-crore deal to share its national long-distance (STD)
network with VSNL in a first-of-its-kind accord between two top telecom service

providers in a bid to optimize capacities in the NLD segment.

Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) has signed a
Right to Use (RoU) agreement to deploy mobile telephony major, Bharti Tele-Ventures'

existing National Long Distance (NLD) backbone.

Airtel offers talk time transfer service
Airtel has announced money-back guarantee offer in case of call drop or poor network

experience for its subscribers

Bharti launches 2-in-1 card
Airtel launched two-way international roaming and GPRS for prepaid customers in the

Maharashtra and Goa circles

India's leading cellular company Bharti Tele-Ventures has bagged the Asian Mobile News
operator of the year award in India and the subcontinent

30

Bharti Tele-Ventures Ltd has awarded a million equipment contract to Swedish telecoms

company Ericsson
Bharti Televentures announced formation of a new strategic business unit to offer various

telecom and IT services through a single contact

Bharti Televentures unveiled a mobile portal featuring sports, entertainment and news

among others
Airtel ties up with Micro Tech to set up 'Mcops' vehicle security system
Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized
mobile music service where the caller hears songs and other sound clips instead of the

traditional switchboard ring-ring tone

Airtel, a private telecom services provider, has commissioned its first 24x7 customer

service centre in Andhra Pradesh

Airtel unveils Rs 199 pre paid card
AirTel join hands with NMIMS to offer executive MBA programme
AirTel introduces new scheme for hearing impaired in Maharashtra & Goa
AirTel inks pact with JP Mobile
AirTel unveils first virtual calling cards in India
BTVL rolls out EDGE services in Bangalore
Airtel rolls out Full Talk time Advantage card
Airtel rolls out Wi-Fi services in Mumbai
BTVL launches new 'Airtel Broadband Friendly Offer'
Airtel launches GPRS services for pre-paid customers
Airtel partners with ITPO to set up Wi-Fi network in Delhi
Airtel launches EDGE services and a new pre-paid plan for Chennai
Airtel introduces LAS in Karnataka

2005

Airtel launches video services for its GPRS customers on February 22, 2005
Airtel unveils new TV ad featuring Sachin, Sharukh
Bharti Tele-Ventures launches telecom network in Andaman & Nicobar
BTVL unveil fixed line, broadband services
Bharti inks 5-m deal with Nokia for rural network expansion
Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have joined

hands to launch mChq - a revolutionary new service - a credit card on the mobile phone
Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India
Bharti Tele Ventures announces agreement with Vodafone
31

Airtel unveils 'free flight' offer

Airtel unveils starter pack
Bharti Tele-Ventures launches under sea cable system

2006

Airtel unveils Re 1 STD plans

Airtel launches NetXpert.
Airtel launches Post2Pre recharging service on April 04,2006.
Airtel sets up customer centre
Mobile service provider Airtel today announced the launch of `Save My Phone Contact'

service for its pre-paid and post-paid customers in Delhi

Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive Service

Provider of the Year' awards

Sunil Mittal bags CEO of the Year award
Cellebrum join hands with Airtel
Airtel Mega unveiled in Coimbatore
Airtel joins hand with Microsoft
Bharti Airtel Ltd has informed that Microsoft and the Company announced a strategic
partnership that will offer a range of software and services for small and medium

businesses (SMBs) in India.

Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliance with the Adani Group
for establishing an end-to-end modern telecommunication network infrastructure for the

latter's
Multi-sector special economic zone (SEZ), located near Mundra Port in Kutch district of
Gujarat.

2007

Bharti Airtel, telecom major, has come out with a slew of initiatives including buying out
SingTel's 50 per cent stake in joint venture under sea cable company Network i2i for 0
million.
32

Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics

of Quality.
Bharti Airtel Ltd has announced the following changes in the operational leadership

structure and roles in the Company effective April 01, 2007.

Bharti Airtel Ltd on April 01, 2007, has announced the reduction in International Long

Distance Tariffs (ISD) for all its mobile customers in India.

Airtel signs agreement with HTC for touch screen mobile.

2008

Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi million euro
contract from Bharti Airtel Ltd for deployment of a single interactive voice response
(IVR) platform across 23 circles. The three-year turnkey contract comprises designing,
planning, systems integration and optimization services to raise overall customer
experience. The new IVR solution will enable Airtel to deliver services such as voice
SMS, televoting, call management services, caller ring back tone and voice portal on a

faster time-to-market basis and, therefore, reduce OPEX costs.

Bharti Airtel Ltd on February 13, 2008 has announced that it has achieved the 60 million
customer mark. This landmark has catapulted Bharti Airtel into the club of top mobile
operators in the world in terms of subscriber base. The 60 million customer base covers

mobile as well as fixed line and broadband customers.

Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based iPhone in

the country.
Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd to
launch its Direct-to-Home (DTH) television services. Infosys, through its digital
convergence platform, will offer a suite of products including devices, application
servers and interactive applications for Airtel's DTH services.

2009

Bharti Airtel HAS signed a five-year managed services deal valued at 0 million with
Alcatel Lucent for its fixed-line and broadband operations.
33

Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is aimed at offering
the added advantage to Airtel customers to be in touch with each other at an affordable

rate of 50 paisa per minute, be it a national long distance call (STD) or local call.
In order to create products and services for the small, medium and large enterprises,
Bharti Airtel and Cisco announced a strategic business alliance. The alliance would
combine the strengths of Airtel's network service and Cisco' Internet Protocol (IP)

technologies.
Bharti Airtel - Airtel and mChek announce milestone of One Million users; introduce a
broad range of new mCommerce services.

2010

Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts from April
9th.

2.5 CORPOATE GOVERNANCE

Integrity and Ethics
The partners will conduct all its dealings in a very ethical manner and with the highest
business standards.
All partners with a business relationship with Bharti Airtel shall comply with the highest
level of integrity and ethical practices.
The partners will provide all possible assistance to Bharti Airtel in order to investigate
any possible instances of unethical behavior or business conduct violations by its
employee. Partner will disclose forthwith any breach of these provisions that comes to
their knowledge to allow for timely action in their prevention and detection.
Partners will adopt appropriate processes to prevent offering any illegal gratification in
the form of bribes or kickbacks either in cash or in kind in the course of all dealings with
us. Any instances of such violations will be viewed in a serious manner and Bharti Airtel
34

reserves the right to take all appropriate actions or remedies as may be required under the
circumstances.
All partners are required to confirm their compliance to ethical dealings on an annual
basis by signing a certificate to this effect as per Bharti Airtel's standard annual
certificate.
Any ethical or integrity issues observed or encountered while dealing with Bharti Airtel
shall be bought to the notice of Bharti Airtels senior management or the Head of Internal
Audit immediately.
Environment, health and safety

Suppliers dealing with Bharti Airtel shall comply and adhere to all laws, regulations and

guidelines on environment, health and safety.

Suppliers will ensure that all new service offerings as well as new product designs are in
compliance with the relevant environmental regulation and guidelines, at the time of
implementation at Bharti Airtel.

Protection of Intellectual Property

The Partner:

Shall comply with the guidelines for use of the trademarks and trade names notified by
the Company (including but not limited to 'Bharti' and 'Airtel') and shall not use the

Company trademarks and trade names without the prior written consent of the Company.
Shall, under no circumstances, advertise or use Bharti Airtel's name to market its own
product or associate its company with Bharti Airtel. If a partner spots any counterfeit or

infringing Company product/service, the partner shall immediately notify Bharti Airtel.
Shall not reproduce, in whole or in substantial part, any copyrighted work in hard copies,
prints, video or electronic copies in violation of the copyright laws including the Bharti
Airtel's Partner Manual.
Bharti Airtel's intellectual property also resides in trade secrets or know-haws. Trade
secrets are technical, commercial or other information unknown to the public, which can
bring economic benefits to its owner. Documents that contain trade secrets and available
to the Partner shall be safeguarded and not shared by the Partner with any third party
without prior written consent of Bharti Airtel.

Domestic and international trade controls

35

Suppliers shall understand and follow applicable domestic and international trade control
and customs laws and regulations, including, but not limited to those relating to licensing,
shipping and import documentation and reporting and record retention requirements.

Conflict of Interest

Suppliers will ensure they do not engage in any personal dealings with Bharti employees,
especially those that they interact with on Bharti business matters.

PARTNER POLICY
Airtel would strive to conduct its business in a manner that reflects its vision and brand essence.
As the sourcing base expands, Airtel will only do business with partners who are committed to a
long term relationship focusing on mutual growth and trust. All Partners are responsible for
making sure that Airtel's vision and brand essence is adhered to when subcontracting any portion
of their obligations. Partners are individually responsible for ensuring that their employees
understand

Airtel's

vision

and

brand

essence.

Regulatory Compliance
All Partners of Airtel must operate within the bounds of all applicable laws. They must also
adhere to the governing standards of the country and international countries in which they
conduct business. If at anytime a Partner ceases to meet any statutory and/or other requirement of
the country in which they are doing business, Airtel reserves the right to immediately cancel all
its outstanding orders with that Partner as well as terminate its agreement with the Partner.
Corporate Citizenship
Airtel believes in Corporate Citizenship. Airtel is committed to protecting the environment
wherever it does business. As a responsible corporate citizen we will favor those Partners who
36

share our commitment to the community and the environment, as well as those who conform to
all local requirements regarding environmental codes and guidelines.
Corporate Citizenship
All potential partners are required to undergo the registration process to be considered for
business with Airtel. On successful completion, the partner would be added to Airtel's Supplier
Base and a registration code would be provided. Only registered partners would be considered
for new business opportunities. The registration code would be rendered inactive for partners not
meeting the requirements of the registration process. Once deactivated, partners would be
required to go through the registration process again.
Number of Partners and Business Share
All partners working with Airtel would have a unique partner code and would be applicable for
all their business units globally. Airtel would have a maximum of 6 to 8 partners registered for
any product or service. RFP would be released to registered partners only.
Airtel at any point of time would release a contract to a maximum of 3 partners for a product or
service with a business share split of 60%, 30% and 10%. Incase 2 partners are contracted; the
business share split would be 67% and 33%. Business share would be primarily based on partner
performance score card. Airtel would provide higher business share for partners who help it to
improve its technology, competitiveness and customer delight. In case where all criteria are
similar the decision would be based on the partner's dependence on Airtel. Any deviation would
be approved at a level higher as per DOA. Single partner for a product or service would be
approved through a specific DOA.
Reciprocity
Airtel's goal is to buy products and services which have the best prices, quality, delivery, and
technology. Airtel encourages partners to use its products for their telecom requirements and
would prefer partners endorsing Bharti Airtel products where all criteria requirements are being
met.
37

 Code of Ethics
Airtel expects the highest standards of integrity and conduct from its partners.
No gifts (other than advertising matter of modest values such as calendars and diaries), or favors
should be offered to an employee of Airtel or to friends or family of employees. Partners are
expected to familiarize themselves with the Airtel Code of Conduct which is available in the
Partner Manual or on request, in order to avoid any ambiguity in this regard.
Contracting
Supply Chain is solely responsible for selecting partners, obtaining quotations and awarding
purchase orders/contracts for products, equipment, software and/or services. Direct discussions
between the requesting organization and partner shall be coordinated by the Supply Chain
Department. Airtel will issue a purchase order / contract for all products and/or services to all
partners. Work should not begin until a formal purchase order/contract is received. Partner
performing a service or supplying products without the proper authorization would do so at its
own cost and risk.
Confidentiality
Airtel will treat information received from Partners in a responsible fashion, and expects Partners
to treat information received from Airtel in the same manner. Partners should not disclose Bharti
Airtel as a customer, documentation received from Bharti Airtel or release information about
relationships with Bharti Airtel without written consent (should such disclosures be legally
required, Bharti Airtel will not unreasonably withhold that permission, which must be obtained
in advance and in writing).
Partner Satisfaction
Airtel would conduct an annual partner satisfaction survey and use it as an important tool to
continuously improve and further develop its internal and external processes with partners. In
order to obtain an unbiased feedback, the survey would be conducted by an independent external
agency.
38

 Partner Awards
Airtel recognizes consistent performance of its partners annually by presenting performance
awards. The awards would be primarily based on the partner performance score card. Awards
would be announced and presented during the partners meets. Consistent & good performers
would also be entitled to better share of business and other benefits, as would be announced from
time to time by Bharti Airtel.
Partner Disengagement
Airtel reserves the right to cancel all orders and/or contracts with a partner in cases where there
is an unethical practice used, code of conduct violation, partner bankruptcy or insolvency,
ownership transfer and/or any other reason deemed fit for disengagement. Airtel would follow a
structured approach for disengagement to ensure the smooth transitioning where separation
becomes inevitable.
Partner Grievance
Airtel's Partner grievance process ensures a Partner's ability to access Airtel's corporate assurance
group and leadership to address concerns, grievances, or complaints relating to the contracting
award process for products or services, or in general.

A Partner who believes that a contract award decision was not determined appropriately
must file a written grievance using the Partner Grievance form stating facts and concerns.
The completed form must be sent via e-mail to central.scm@airtel.in

A Partner who has a general concern, grievance & complaint must file a written
grievance using the Partner Grievance form stating facts and concerns. Complete form
must be sent to the supplier Ombudsperson at Airtel via e-mail Ombudsperson@airtel.in

39

3.1 COMPETITORS PROFILE

Vodafone Essar-

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom
circles in India . Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and
is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM
technology, offering voice and data services in 16 of the country's 23 license areas.

Growth of the company as Hutchison EssarIn 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994
was awarded a license to provide mobile telecommunications services in Mumbai (formerly
Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh
of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering
in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators
providing service in 13of India's 23 license areas and following the completion of the acquisition
of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held
license

applications

for

the

seven
40

remaining

license

areas.

In a country growing as fast as India, a strategic and well managed business plan is critical to
success. Initially, the company grew its business in the largest wireless markets in India - in cities
like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a
robust network, well known brand and large distribution network -all vital to long-term success
in India. Then it also targeted business users and high-end post-paid customers which helped
Hutchison Essar to consistently generate a higher Average Revenue per User ("ARPU") than its
competitors. By adopting this focused growth plan, it was able to establish leading positions in
India's largest markets providing the resources to expand its footprint nationwide.

IDEA CELLULAR-

Idea Cellular is a wireless telephony company operating in various states in India. It initially
started in 1995 as a join venture between the Tatas, Aditya Birla Group and AT&T by merging
Tata Cellular and Birla AT&T Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004
gave Idea a truly pan-India presence covering Maharashtra (excluding Mumbai), Goa, Gujarat,
Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttar Pradesh (East and West), Haryana,
Kerala, Rajasthan and Delhi (inclusive of NCR).
The company has its retail outlets under the "Idea n' U" banner. The company has also
been the first to offer flexible tariff plans for prepaid customers. It also offers GPRS
services in urban areas.
Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat,
Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West, Himachal

41

Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 23 million, IDEA
Cellular's footprint currently covers approximately 60% of India's telecom population.
A frontrunner in introducing revolutionary tariff plans; IDEA Cellular has the distinction of
offering the most customer friendly and competitive Pre Paid offerings, for the first time in India
in an increasingly segmented market
Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their
many firsts, Idea is only operator to launch GPRS and EDGE in the country. Idea has received
international recognition for its path-breaking innovations when it won the GSM Association
Award for "Best Billing and Customer Care Solution" for 2 consecutive years.
IDEA Cellular is part of the Aditya Birla Group, a US$ 24 billion corporation with a market cap
of US$ 31.5 billion and in the league of Fortune 500. Anchored by an extraordinary force of over
100,000 employees belonging to 25 different nationalities, over 50% of its revenues flow from
its overseas operations. With ambitious future plans, the company is poised for rapid growth
across the whole country.
The Brand Idea: It is almost impossible to disintegrate brand Idea from the corporate
Idea. Brand values are the company values and vise versa.
The Brand Vision: It goes without saying that the brand vision of idea mirrors the
Companys vision. The brand mission statement is... To be the most customer-focused mobile
service brand, continuously innovating to help liberate our customers from the shackles of time
& space.

42

Reliance Communications-

Reliance Communications (formerly Reliance Infocomm), along with Reliance Telecom and
Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National
Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for
more than 1.36 billion shares of the company. Reliance Infocomm is an Indian
telecommunications company. It is the flagship company of the Reliance-Anil Dhirubhai Ambani
Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and
telecom initiatives of the Reliance ADA Group. Reliance Infocomm is currently managed by
Anil Dhirubhai Ambani. It uses CDMA2000 1x technology.

Company Profile
On November 15th 1999, Reliance infocomm begins its project planning. The founder of
RELIANCE INFOCOMM, Dhirubhai Ambani dream was Make a phone call cheaper than a
postcard and you will usher in a revolutionary transformation in the lives of millions of Indians.
In 2000, optic fiber laying process commences in Gujarat, Andhra Pradesh and Maharashtra. In
2001, first media convergence Node made Ready for Electronics at Jaipur. In 2002, first Base
Transceiver Station (BTS) made Ready for Electronics. Then in same year company obtains
International Long Distance License from Govt. of India. After that they establish 1st point of
Interconnect in New Delhi and on December 27, Honorable Prime Minister of India Atal Bihari
Vajpayee inaugurates RELIANCE INFOCOMM. Then year 2003 starts which was the most
successful year for Reliance Communications.
43

Strategic Business UnitsThe business of Reliance Communications is organized into three strategic customer facing
business units: Wireless, Global, and Broadband. In addition, one of the wholly owned
subsidiaries of Reliance Communications is engaged in the marketing and distribution of
wireless handsets. Their strategic business units are supported by our fully integrated, state-ofthe-art network and operations platform and by the largest retail distribution and customer
service facilities of any communications service provider in India.

Tata Teleservices-

Company profileTata Teleservices Limited (TTSL) is part of the Tata Group of Companies, an Indian
Conglomerate. It runs the brand name Tata Indicom in India in various telecom circles of India.
The company forms part of the Tata Group's presence in the Telecommunication Industry in
India.
TTSL was incorporated in 1995 and was the first company to offer CDMA Mobile services in
India, specifically in the state of Andhra Pradesh. Tata is the direct competitor with other
operators in India. The company provides unified telecommunication solutions including mobile,
44

fixed wireless, fixed line and broadband. Other competitors like Vodafone, Airtel, Aircel, Idea,
MTNL, and BSNL providing GSM based mobile telephony. The company was first in India to
provide free intra network calling within city limits. They launched a unique scheme providing
lifetime rental free connectivity on its mobile and fixed wireless for a one-time charge.
The Tata Group's commitment to building a substantial presence in India's telecom industry has
seen it play a leading role in the development of the country's communications infrastructure.
The telecom services of the Group are offered under the brand name Tata Indicom, and cover all
segments, from retail and enterprise to wholesale and international. The objective is to make Tata
Indicom the preferred telecommunications choice of customers across the country. The Tata
Indicom Enterprise Business Unit (TIEBU) is the central, specialized enterprise sales and
marketing unit for the Tata Group's telecom initiatives. The unit is the benchmark telecom player
in the enterprise space and was formed with a view to providing customized, end-to-end voice
and data solutions to customers across India. It delivers cost-effective, integrated solutions that
are designed to fulfill the most complex communication needs.
Tata Indicom offers you a range of products and services like Wireless Internet, Wireless USB
Modem and Mobile Phones so you are always connected.
Landline Phones Net Telephony Internet & Broadband It has partnered with Motorola, Ericsson,
Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network.
The company, which heralded convergence technologies in the Indian telecom sector, is today
the market leader in the fixed wireless telephony market with a total customer base of over 3.8
million.

45

BHARAT SANCHAR NIGAM LTD.

Company Overview
Bharat Sanchar Nigam Limited provides telecommunications services in India. Its services
include wire line and cellular services, as well as other value added services, such as voice mail
service, short message service (SMS), group messaging, national and international roaming, call
forwarding, corporate virtual private network, call conferencing, friend and family talk, call
waiting, and call holding services. The company also provides 3G; wireless in local loop (WLL)
mobile telephone; Internet; Web-hosting; Web co-location; SMS and bulk SMS; and broadband
services. In addition, it offers managed network services; multi protocol label switching based
virtual private network (VPN) services; integrated services digital network (ISDN) services; data
communication services; intelligent network services consisting of toll free phone service,
universal access number, voice VPN, televoting, and virtual calling cards; and video, audio, and
Web conferencing services. Further, the company provides fleet management solution
comprising eTracK, an on-line tracking system to manage fleet, such as trucks, car carriers,
trailers, tankers, containers, or vehicles carrying hazardous and specialty explosive chemicals;
Inet services for use in various applications, including electronic mail services, corporate
communications, information retrieval, database services, remote job applications, credit card
verifications,

travel

reservations,

and

Internet

connectivity;

telex/telegraph

services;

PABX/EPABX services; and DSPT services, as well as offers VSAT, voice over Internet
46

protocol, and IN services. Bharat Sanchar Nigam Limited was founded in 2000 and is based in
New Delhi, India.

3.2 MARKETING STRATEGY BY AIRTEL

Bharti decided to design different marketing strategies for different circles depending on the
strategies, employed by the competitors. While the company was focusing on its pricing
strategies, its competitors in various sectors were concentrated on new service offerings and
value additions since the players almost immediately matched price reduction moves, companies
had begun focusing on developing value-added offerings and schemes to expand their market
and gain customer loyalty.
Analysts remarked that the players were coming up with new schemes or value-additions almost
every week to get the better of their competitors. By constantly keeping itself abreast with the
moves of its competitors and launching various proactive/reactive schemes, Bharti was able to
retain its leadership position. Despite continual attacks from Vodafone, Reliance, , Idea Cellular
and Bsnl, Bhartis cellular services received good high response in all circles during 2005. It was
reported that in Mumbai, 60-75% of customers seeking Airtel services were BPL Mobile and
Hutch subscribers. In fact, it was becoming difficult for the company to activate cellular
connections in Mumbai swiftly on account of the high rush in some cases; it took almost three
days to activate a connection. Bharti has spent a considerable amount on advertising its mobile
phone service, Airtel. Besides print advertising, the company had put up large no of hoardings
and kiosks in and around Delhi. The objective behind designing a promotion campaign for the
Airtel services is to promote the brand awareness and to build brand preferences. It is trying to
set up a thematic campaign to build a stronger brand equity for Airtel. Since the cellular phone
category itself is too restricted, also the fact that a Cellular phone is a high involvement product,
price doesn't qualify as an effective differentiator. The image of the service provider counts a
great deal. Given the Cell phone category, it is the network efficiency and the quality of service
that becomes important. What now the buyer is looking at is to get the optimum priceperformance package. This also serves as an effective differentiator Brand awareness is spread
through the' campaigns and brand preference through brand stature. Airtel's campaign in the
capital began with a series of 'teaser' hoardings across the city,' bearing just the company's name
47

and without explaining what Airtel was. In the next phase the campaign associated Airtel with
Cellular only thereafter was the Bharti Cellular connection brought up. Vans with Airtel logos
roamed the city, handing out brochures about the company and its services to all consumers.
About 50,000 direct callers were sent out. When the name was well entrenched in the Delhiitess
mind, the Airtel campaign began to focus on the utility of Cellphone. In the first four months
alone Airtei's advertisement spends exceeded Rs. 4 crores. As of today the awareness level is
60% unaided. This implies that if potential or knowledgeable consumers are asked to name a
Cellular phone service provider that is on the top of his/her mind 60% of them would name
Airtel. As for aided it -is 100% (by giving clues and hints etc.).
Brand strength of a product or the health of a brand is measured by the percentage score of the
brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a
thriving brand.
Every company has a goal, which might comprise a sales target and a game plan with due regard
to its competitor. Airtel 's campaign strategy is designed keeping in mind its marketing strategy.
The tone, tenor and the stance of the visual ads are designed to convey the image of a market
leader in terms of its market share. It tries to portray the image of being a "first mover every
time" and that of a "market leader".
The status of the product in terms of its life cycle has just reached the maturity stage in India. It
is still on the rising part of the product life cycle curve in the maturity stage.
The diagram on the left hand side shows the percentage of the users classified into heavy,
medium and low categories. The right hand side shows the revenue share earned from the three
types of users.
Airtel, keeping in mind the importance of the customer retention, values its heavy users the most
and constantly indulges in service innovation. But, since heavy users comprise only 15 - 20% of
the population the other segment cannot be neglected. The population which has just realized the
importance of cellular phones has to be roped in. It is for this reason that the service provider
offers a plethora of incentives and discounts. Concerts like the "Freedom concert" are being
organized by Airtel in order to promote sales. The media channel is chosen with economy in
mind. The target segment is not very concrete but, there is an attempt to focus on those who can
afford. The print advertisements and hoarding are placed in those strategic areas which most
likely to catch the attention of those who need a cellular phone. The product promise (which
48

might cost different 1 higher) is an important variable in determining the target audience. Besides
this, other promotional strategies that Airtel has adopted are .

People who have booked Airtel services have been treated to exclusive premiers of
blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on

the German airlines frequent flier's programs.

There have been educational campaigns, image campaigns, pre launch advertisements,
launch advertisements, congratulatory advertisements, promotional advertise-ments,
attacking advertisements and tactical advertisements.

WHAT DOES AIRTEL OFFER?

With Airtel, the subscriber wouldn't just get a personal phone that lets him/her be in touch,
always, but also gets a host of benefits that let him/her manage his/her time like never before. An
Airtel subscriber is provided with a Subscriber Identity Module Card (SIM card) - that is the key
to operating his/her cellular phone. His card activates Airtel cellular services and contains a
complete micro-computer chip with memory to enable one to enjoy one's cellular phone
thoroughly. Each SIM card contains a PIN code (Personal Identity Number) which may be
entered by one. Just plug your SIM card into your cellular phone, enter the PIN code and it
becomes 'your' personal phone'.

PRODUCT LIFE CYCLE

The pattern of cell phone subscriber growth observed elsewhere in the world reveals that the
growth in the market is initially slow followed by a sharp acceleration, but so far that has not
happened in India. As far as the Product Life Cycle is concerned. Indians are at the beginning of
the maturity stage.

49

Introduction

Growth

Maturity

MARKETING OBJECTIVES

Create product
awareness and trial

Maximize market
share

Maximize profits
whole defending
market share

3.3 PROMOTIONAL STRATEGY

Airtel to Touch Tomorrow with a new brand vision The Bharti Mobile promoted AirTel
cellular service will go in for repositioning of its brand image. The new brand ethos is portrayed
in two distinct fashions - the tag line "Touch Tomorrow", which underscores the leading theme
for the new brand vision, followed by "The Good Life", which underscores a more caring, more
customer centric organization. Aimed at re- engineering its image as just simply a cellular service
provider to an all out information communications services provider, Touch Tomorrow is meant
to embrace the new generation of mobile communication services and the changing scope of
customer needs and aspirations that come along with it The new communication is about a new
dimension in the cellular category that goes beyond the Internet, SMS, roaming, IVRS, etc but
which engulfs the whole gamut of wireless digital broadband services that will constitute
tomorrows cellular services. The new campaign is in two phases - the first of which will
communicate overall brand philosophy and the second products and services. According to Mr.
Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka "We are adopting a
new brand- platform - Touch Tomorrow - not only to reflect our corporate ethos but also business
strategy".
The new identity will have the logo in Red, Black and White colors along with lower case
typography to convey warmth.
AirTel will incorporate the latest branding in all of its communication and will soon be going in
for an enhanced promotional drive to establish the brand's presence.
50

3.4 TARGET MARKET SEGMENT

Airtel has targeted the premium and upper middle class. The rationale behind it is that only those
segments should be targeted who value time and have the paying capacity. It is also planning to
target the business tourists during their stay in the capital about 60% of the clientele are top
executives of corporate houses. About 15% are foreign organizations and the rest are
professionals and small businessmen. During the introduction stage there was intense pressure to
get consumers across to hook up with their brand, because getting them to switch brand loyalty
later would be hard So far Airtel marketers have been concentrating totally on the business
executive class but now that the basic viable volumes has beer) built up and prices have declined
to a certain extent they are planning to venture further a field.
POSITIONING
The product is sought to be positioned as a business efficiency tool. a lifestyle revolution and a
status symbol The emphasis is to remove misconception that the cell phone is an expensive
means of communication and drive home the point that the cell phone is actually a day-to-day
utility
PRODUCT POLICY AND PLANNING
The product or services the hearts of the marketing mix. Without a product or a service
customers' needs cannot be satisfied.
The basic product promise by Airtel is mobility. Airtel's main marketing strategy is to be a first
mover all the time. It has recognized the significance of making the first move-- because in the
field of Communication & Information Technology changes occur at a tremendous pace.
Effective product segmentation has to be carried on continuously because basic services can be
and will be copied and in time become expected component of the product. Airtel seeks to carry
out this segmentation through provision of new information services and making new facilities
available. The product policy and planning depends on the stage of the product life cycle. At
51

present the cellular phone market has reached the maturity stage. Since, the premium segment is
nearing saturation the company targeting the upper middle and middle-middle class. In order to
do so Airtel is trying to optimize the price performance package by offering suitable "product
bundling".
This involves the selection of the suitable hardware (handset) and its software (its services.) with
reasonable price in order to deliver maximum price performance to its customers. In addition, it
offers free Airtime services and other concessions to make the prices and thus the product more
attractive. It has also opened a 24 hours customer service. Only price doesn't serve as an effective
differentiator, value added services become the effective differentiator.
The "Value Added Services" provided from Airtela re:-

Voice Mail service

This system is similar to the answering machine - if the user is not able to answer a call
for some reason the caller can leave messages in the voice mail box which can be later
retrieved by the user

Short Message Service

The short message service is like a two-way pager. It gives an option of sending and
receiving text messages directly from one mobile phone to another without the
intervention of an operator

Mobile Fax 1 Data Service

This service helps the subscriber to send and receive Faxes, access E-mail, download
files from other systems and remotely log on to another computer and surf the Internet.

Cash Card

52

The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time
in advance. All it requires is the payment of an initial amount. This is a useful service for
people who travel to Delhi often and those who want to control the expenses on their
calls.

Caller ID
Displays calling person's number.

Outgoing call restriction

To prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude
one or several countries, or any geographical region, to permit only local calls, or to limit
the outgoing calls to a listed number.

Call forward
Incoming calls can be forwarded to another fixed or mobile phone. Besides these some
other services provided by Airtel are - Call conferencing, Call Broadcast ET cetera.It is in
the operators -Interest that they not only get many subscribers but also get them to use the
mobile facility frequently. In the early stages getting increases to subscribe may be easier
than getting them to talk since they will find it costlier to use the mobile phone as
compared to a conventional phone [if is believed that initially cell phones would be used
buy]

Roaming Facility
Roaming facility is available while the subscriber is travelling. The billing is done in the
home network (Delhi). Roaming facility is available manually* as well as semi53

automatically. Once a subscriber is in any other city or country, where a GSM network is
available, simply insert the SIM card of the local operator into your handset and start
talking.

CHAPTER 4: ANALYSIS
4.1 DATA ANALYSIS
GSM MOBILE MARKET SHARE IN INDIA-

TELECOM COMPANY

SHARE{%}

BHARTI AIRTEL

30.86%

VODAFONE ESSAR

23.87%

IDEA CELLULAR

15.19%

BSNL

15.08%

AIRCEL

8.38%

RELIANCE

4.0%

MTNL

1.17%

LOOP MOBILE

0.69%

UNINOR

0.64%

STEL

0.13%

54

SHARE{%}

AIRTEL
4 1.17 0.69 0.64 0.13
8.38
30.86

VODAFONE
IDEA
BSNL
AIRCEL
RELIANCE

15.08

MTNL
LOOP
UNINOR
STEL

15.19
23.87

From the above data its can be say that Airtel is the leading brand in telecom industry of
India , having 30.86% market share and 121.7 million customers. And second leading
brand is Vodafone with 23.87% market share. Airtel is most admired brand by consumers.

AIRTEL MARKET SHARES IN JAIPUR.

55

MOBILE NETWORK
AIRTEL
OTHERS {VODAFONE,IDEA,REL. ETC.}

MARKET SHARE
34.5%
65.5%

MARKET SHARE

34%

AIRTEL
OTHERS

66%

Airtel is the most leading and admired brand in jaipur zone with 34.5% market share. Airtel
is providing the best telecom services with better promotional schemes and with heavy
advertisement. Bharti hexacom ltd. is a part of Bharti airtel ltd. which is formatted for
Rajasthan zone. Bharti hexacom is allotted 20 distribution points and 6 territory managers
in all over Jaipur. So that the customers and retailers can easily use the services.

MARKET CONDITION OF AIRTEL IN JAIPURS DIFFERENT AREAS

WALL CITY

56

MOBILE NETWORK

MARKET SHARE

AIRTEL

38.4%

OTHERS {VODAFONE,IDEA,REL. ETC.}

61.6%

MARKET SHARE

38%

AIRTEL
OTHERS

62%

Airtel is on 1st position in wall city area of jaipur , wall city is the core area of jaipur city.
Airtel is having the 4 distribution points in only this area. Airtel is here leader because of

its better services for retailers and consumers.

Territory manager- Mr. Rakesh Sharma
Distributers :
Gupta brothers agency
Rohini agencies
S.S. marketing
The delphine

Territory 2 (jhotwara, shashtri nagar, vidhadhar nagar etc.)

MOBILE NETWORK

MARKET SHARE

AIRTEL

35%

OTHERS {VODAFONE,IDEA,REL. ETC.}

65%

57

MARKET SHARE

35%

AIRTEL
OTHERS

65%

This territory is divided in 4 distribution point. Airtel is again here on top rank with 35 %
market share. In this area Airtel is best service providers among all other competitors.

This is only because of best sales & marketing management by Airtel.

Territory manager- Mr. Umang mishra
Distributers :
Singhal marketing co.
Murlidhar chimanilal
Sandesh cellular pvt. Ltd.
Manav agency

Territory 3 (tonk road, sodala, jawahar nagar etc.)

MOBILE NETWORK

MARKET SHARE

AIRTEL

33.45%

OTHERS {VODAFONE,IDEA,REL. ETC.}

66.55%

58

MARKET SHARE

33%

AIRTEL
OTHERS

67%

Again Airtel is on 1st position with the 33.45 % market share in this area. Airtel is having
4 distribution point with experienced staff , providing excellent telecom services. In this
area Vodafone is on second position.
Territory manager- Mr. Ojesvi

Distributers :
Aditya agency
Pawan specialties
Sri nath services
Shree jee services

Territory 4 (malviya nagar, mansarovar, durgapura etc.)

MOBILE NETWORK

MARKET SHARE

AIRTEL

33.2%

OTHERS {VODAFONE,IDEA,REL. ETC.}

66.8%

59

MARKET SHARE

33%

AIRTEL
OTHERS

67%

Again Airtel is on 1st position with the 33.2 % market share in this area. Airtel is having 4
distribution point with experienced staff such as 9 FOS and 10 ARE. And providing
excellent telecom services. In this area Vodafone is on second position.
Territory manager- Mr. Pushpendra

Distributers :
Ganpati marketing
Subhaashish
Yash agency
Bhasker agency

Territory 5 (Vaishali nagar, chitrakut, amer raod etc.)

MOBILE NETWORK

MARKET SHARE

AIRTEL

33%

OTHERS {VODAFONE,IDEA,REL. ETC.}

67%

60

MARKET SHARE

33%

AIRTEL
OTHERS

67%

In this area Airtel is on top position with 33 % market share . This territory is devided in
Distribution point with a experienced staff of 7 FOS and 6 ARE. In this area Airtel is
Best service providers among all other competitors. This is only because of best sales &
Marketing management.
Territory manager- Mr. Shailendra
Distributers :

Sagar enterprises
R L associates
Suryansh marketing

Modern TradeModern trade is a different concept of Airtel marketing strategy. Its having separate
management style of sales & marketing. Under this concept the company having tie-up
with around 115 mobile outlets such as The mobile store, planet M, Hotspot mobile
point etc. in all over jaipur zone.
Modern trade is very effective and beneficial concept . In this Airtel is having 95%
market share and rest 5 % of others brands like Vodafone, idea, banal etc.
MOBILE NETWORK

MARKET SHARE

AIRTEL

95%

61

OTHERS {VODAFONE,IDEA,REL. ETC.}

5%

MARKET SHARE

5%
AIRTEL
OTHERS

95%

Territory manager- Mr. Lokesh

Distribution point : Shiv maya

SALES PROMOTION BY AIRTEL IN JAIPUR ZONE

Airtel is leading and most admired brand in Jaipur. Airtel is contributing 34.5% market in this
zone and rest 65.5% market is acquired by all other companies such as Vodafone , idea, bsnl etc.
This shows that Airtel is doing best in telecommunication industry. Bharti Airtel Ltd. having its
own separate entity named as BHARTI HEXACOM LTD. for Rajasthan region.
Earlier Airtel was providing mobile SIM cards at very low price or totally free, but the
consequences occurred that the consumer age on network could not be for a long period because
the consumers did not paid for that SIM card and whatever they got as talk value and other useful
schemes, they were used it and threw the SIM cards. Than the Airtel decided to make a change in
62

this procedure of activations. Now Airtel providing a mobile connection at a specific price so if
customer buy it than he will be with network for a long period because he has paid a amount for
it.

Activation scheme of may,2010

FRC

Rs61+10Rs Sim charge

Rs31+10RsSimcharge

Talk
time
Call rate

55+30{A to A min.}

25+15{A to A min.}

50p./min{local,std}

50p./min{local,std}

Up front

15+10 Rs{for retailer}

10+10{for retailer}

Lending

46Rs

21Rs

Airtel launched two FRC plan in may, 2010 ie. Rs 61 and Rs 31. And 10 Rs for SIM card.
In FRC 61 customer gets 55 Rs as main talk value and 30 min. for A to A network. And call rate
will be 50p./min for local & National call on any network. For this scheme Airtel decided to give
some commission 15+10 Rs. And in FRC of Rs.31 customer gets 25 Rs as main talk value and
15 min. for A to A network. And call rate will be 50p./min for local & National call on any
network . And retailers get 10+10 Rs as commission.

TOTAL CONNECTIONS OF RAJASTHAN , (April,2010)

MOBILE NETWORK

TOTAL CONNECTIONS

Airtel

823,000 (33.85%)

Others

16,08,000 (66.15%)

63

CONNECTIONS

34%

AIRTEL
OTHERS

66%

From the above statistics it can be say that the airtel contributed in highest ratio, with 33.85% in
Rajasthan zone. The market base was 2431000 activations in April, 2010 and only airtel
contributed around 823,000 activations.

64

TOTAL CONNECTIONS OF RAJASTHAN , (May,2010)

MOBILE NETWORK

TOTAL CONNECTIONS

Airtel

800,000 (33.43%)

Others

15,93,000 (66.57%)

CONNECTIONS

33%

AIRTEL
OTHERS

67%

From the above data it can be say that the airtel contributed in highest ratio, with 33.43% in
Rajasthan zone. The market base was 2393000 activations in May, 2010 and only airtel
contributed around 800000 activations.

65

COMPETITIORS SCHEMES (MAY, 2010)

VODAFONE

FRC

Rs 28

TALK VALUE

20 Rs

CALL RATE

50P./min{Local & National}

UP FRONT
{FOR RETAILERS}

18 Rs

RELIANCE INDIA MOBILE.

FRC

Rs 84

Rs 85

Rs 86

TALK VALUE

51 Rs

51 Rs

51 Rs

CALL RATE

1P./Sec {Local & 50p./Sec

UP FRONT
(FOR

{Local 1Rs./3

National}

& National}

{Local

63 Rs

62 Rs

National}
61 Rs

RETAILERS )

66

Min.
&

IDEA CELLULAR
FRC

Rs 47

Rs 49

Rs 130

TALK VALUE

30+20 Rs

30+20 Rs

100 Rs

CALL RATE

1P./Sec {Local & 40p./Min.{Local}

1P./Sec {Local &

National}

60p./Min.

National}

20 Rs

{National}
18 Rs

50 Rs

UP FRONT
(FOR
RETAILERS )

Above all activation plans launched by Airtels competitors in May, 2010. These all
plans have same motive that is to increase the water fall of total activations. Water fall
here refers for the age of a consumer on the network, means a sim card is to be
activated than for how much days or months this card be used or be with same
network. And for increase this water fall Airtel launched the different schemes for

prepaid connections.
WATER FALL (JAN10) - 71 %
WATER FALL (FEB10) 68%
WATER FALL (MARCH10) 75%
Airtel started some other promotional programs such as activation contest for retailers ,
bonus issues for its employees and retailers. Airtel announced many gifts for retailers
to motivate them . So the retailers put their efforts and interest to increase the sales and
no. of activations. Airtel gives a commission on 2.5% to retailers on every recharge
sale. And gives a good return to retailers on their every activation.

67

Activation scheme of June,2010

FRC

Rs61+10Rs Sim charge

Rs62+10RsSimcharge

Talk time

50+15 min.+160sms

50+15 min.+160sms

Call rate

1p./sec{local},1.2p./sec{std}

50p./min{local,std}

Up front

10+15{for retailer}

10+15{for retailer}

Lending

46Rs

47Rs

FRC

Rs31+10Rs Sim charge

Rs32+10RsSimcharge

Talk time

25+6 min.+90sms

25+6 min.+90sms

Call rate

1p./sec{local},1.2p./sec{std}

50p./min{local,std}

Up front

10+10{for retailer}

10+10{for retailer}

Lending

21Rs

22Rs

In the month of June Airtel make a change in the FRC schemes . which has shown in
above index. Airtel did so to compete in the market. Airtel also launched a sales
promotional program named as MANSOON MAHOTSAV along with all schemes.
Under this program company has fixed some bonus and gifts for the retailers on some
easy conditions and targets. The retailers pay their concentrations on airtel mobile
activations.

MANSOON MAHOTSAV

68

This program is brings by airtel for its retailers to motivate and attract them. Airtel
believes that if the retailers are put their efforts and interest to increase the no. of
activation so it will gives the most effective result to the company. So to enhance the
interest of retailers airtel starts this promotional program. It was started from 1 st June and
its goes up to 25th Aug.
DETAIL OF GIFT VOUCHERS{MANSOON MAHOTSAV}
POINTS

GIFTS
5 Ltr. Camper/ Bombay dyeing linen

300
650

20gm Silver/ 3Pc casserole/Steam iron

1000

30gm Silver/ Ceiling fan(Branded)

1500

45gm Silver/ JMG

3500

110gm Silver/ HP photo copier(F4488)

5500

Digital Camera 7 MP/ Home theater / 3gm Gold

7500

Microwave/ 250gm Silver

10,000

Washing machine/ 5gm Gold/ 19 LCD/ HP photo copier (1136)

15,000

1.5 Tn AC/ 7gm Gold/ Handy cam

30,000

32 LCD/ Laptop/ 15gm Gold

35,000

Bike CD DOWN/ 18gm Gold

55,000

Bike Hero Honda passion/ 30gm Gold

90,000

50gm Gold

125,000

TATA Nano car

COMPETITIORS SCHEMES (JUNE, 2010)

VODAFONE
69

FRC

Rs 28

Rs 29

TALK VALUE

20 Rs

20 Rs

CALL RATE

1P./Sec {Local, National}

50p./Min

UP

FRONT

{Local,

National}
8 Rs

{For 8 Rs

Retailers}
FRC

Rs 48

Rs 98

TALK VALUE

40 Rs

98 Rs

CALL RATE

1P./Sec {Local, National}

1P./Sec {Local, National}

UP

FRONT

{For 18 Rs

28 Rs

FRC

Rs 85

Rs 86

TALK VALUE

40 Rs

40 Rs

CALL RATE

50p./Min

Retailers}

RELIANCE MO.

UP

FRONT

National}
{For 65 Rs

{Local, 1P./Sec {Local, National}

65 Rs

Retailers}

4.2 FINDINGS
1.
2.
3.
4.

Airtel holds number one position in India with 30.86 % market share.
Same as in Jaipur zone Airtel is on 1st position with 34.5% market share.
In jaipur zone Airtel having 20 distributers and around 2800 retailers.
Airtel launches every month a new FRC scheme.

70

5. Earlier Airtel provided SIM cards at very low price or free. But this method was
not so effective because consumers started making it use and throw kind of stuff.
By this way company was being unable to make such stable and long last
consumers.
6. Now airtel launches some FRC schemes. So the customer has to pay a amount for
a new sim activation. By this way now consumer age is started being long.
7. Vodafone is the biggest competitor of Airtel in telecom industry.
8. The distributer gives different scheme to different shopkeepers.
9. Mostly retailers are satisfied with Airtel service.
10. Some retailers reported that they do not get time to time airtel products.
11. Some retailers are not satisfied with margin policy of Airtel.
12. Earlier the FRC plan 61 launched that time some light retailers were facing
problem to convince the customers. Because competitors were providing same
plan at low cost.
13. Some Outlets owners are very angry with the companys performance because
they did well in Airtel mo. Connection but they were not appreciated by the
company.
14. Some retailers are facing problem in ID verification policy of Airtel. Because the
company make so strict this procedure.
15. Many customers are diverted to other network due to strictness in id verification.
16. Some retailers reported that the company does not provide enough return on their
performance.
17.Modern trade is very effective concept. In this concept the Airtel is contributing
95% market. And rest 5% covered by all other competitors.

4.3 SUGGESTION

First of all company will provide all its dealers and retailers to all sort of promotion
equipment such as glow sign board, banner, pumplates etc. in time so that they increase their
sales which is benefited both retailer as well as company.

Few outlets are unaware about scheme so proper communication is necessary between
distributor and retailers.

Number of hoarding should be increased.

Company should be lenient in ID verification procedure.

71

To increase the consumer as on network, company should make change in its FRC plan
for example the talk value should be divided in two parts. 50% of talk value should

provide at the time of activation and rest T.T. provide after gap of some days.
Company should make understand its retailers about the benefits of consumer as on

network.
Company should give extra return and other bonus, gifts to its retailers so they put their

full efforts to increase the Airtel sales.

Company should motivate its sales staff so they will pay more concentration in sales and

activation of new connections.

Company should make some necessary change in its FRC plan. For example company
should divide the talk time in to two time {50% at the time of activation + 50% after 15
days.}

4.4 LIMITATION OF STUDY

Many retailers do not cooperate and searching of retailer outlet name was much more
difficult as many of them have not put their Shop name in Board.

Dealers and Retailer do not like to give information of their selling.

The projection is purely based on verbal meeting and may be influenced by

unprecedented factors

Lack of interest in retailers to provide full information of their performance.

Problem occurred in collection of competition details from the retailers.
72

4.5 CONCLUSION
Every thing in this world is made to utilize properly but it should be reach at the proper person or
to the proper utilized areas. Otherwise the value added to those things became in vein.
Thus promotion role plays a very important role in achieving the objectives of a company. Un
doubtly, value utility is created by the manufacture of product or service but time and place
utilities are created by marketing role.
The various finding and befitting recommendation have been made to increase the market share
of each product(postpaid, prepaid) of Airtel thereby increasing the market share of Airtel as a
whole. Various facts and data have been enclosed for better perusal and various graphs have been
provided for better comprehension.
73

Sales Promotion techniques yield results that many other marketing communication elements
cannot achieve.
Sales promotion that is used in with the overall long-turn communication strategy of the brand is
said to use strategically. A promotion should not be used for the sole purpose of altering sales in
the short run .
Sales promotion is used as a very strategic tool to introduce a new product. Although advertising
plays a large role towards creating awareness and attitude information, sales promotion used to
make new product launch easier and more effective.

4.6 BIBLIOGRAPHY
WEB SITES http://trak.in/tags/business/2007/06/19/indian-telecommunication-storyfrom-10-million-to-150-million-mobile-subscribers-in-5-years/

http://www.google.co.in/#hl=en&source=hp&q=telecom+industry+in+india
+in+2006+to+2008&aq=o&aqi=&aql=&oq=&gs_rfai=&fp=ab22efe5d2b87
57

74

http://airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/About+B
harti+Airtel/?
WCM_Page.ResetAll=TRUE&CACHE=NONE&CONTENTCACHE=NO
NE&CONNECTORCACHE=NONE&SRV=Page

http://airtel.in/wps/wcm/connect/about+bharti+airtel/Bharti+Airtel/About+B
harti+Airtel/Our+Brand+Airtel/

http://www.economywatch.com/worldindustries/telecommunications/telecom-industry-in-india.html
BOOKS

C.R Kothari , Research Methodology , Vishwa Publication , New Delhi , II Edition

William G. Zikmund , Business Research Methods , 2003 Edition

MAGAZINES Business today

India today
Forbes India

75