] A PROJECT REPORT ON

Submitted in the partial fulfillment of the requirement for the award of the Degree of Bachelors of Business Administration {BBA} SUBMITTED BY: MAYANK SAGAR BBA (4TH SEMESTER) UNDER GUIDANCE OF: CHINKI GOEL

BHARATI VIDYAPEETH

INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI

ACKNOWLEDGEMENT

The present work is an effort to throw some light on AIRTEL. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by my project guide _____________and other staff members Airtel I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

PREFACE

A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. During my training at Airtel, I was taken project on recruitment, selection & training policy of Airtel The main purpose of the study is to know the policies of the bank regarding recruitment, selection & training, which helped me in gaining knowledge about the different working pattern of different departments of the company.

CONTENTS

Chapter 1: 1. 2. 3. 4. 5.

Introduction to Company

Nature of Business Type & ownership Pattern Organizational Structure Production Lay out Organisational Policies Industrial Analysis

Chapter 2: 1. 2. 3. 4.

Industry Overview (Growth rate of Industry, Contribution to GDP) Current Issues (From Newspaper, Journals For Company and Industry) Key Competitors Environmental Scanning Political environment, Economic environment, Socio-Cultural Environment, technological environment, environmental issues (Green environment) and Legal environment. 5. Porters five forces model of competition Michael Porter Chapter 3: 1. 2. 3. 4. 5. Marketing Strategies

Products of Company 4 Ps (Product: Price, Place & Promotion) STP (Segmentation, Targeting and Positioning) Distribution Channels Promotion Strategies Financial Analysis

Chapter 4:

1. Sources of Finance 2. Ratio Analysis Any 5 3. Net Profit/ Balance sheet (from annual report) -Analyse Chapter 5: 1. 2. 3. 4. 5. Key Learnings from the Company and Recommendations

Performance Analysis of the Company Reasons for the expansion/contraction/diversification of Company Comment on Organizational Leadership Market share/growth rate of Company SWOT Analysis of the Company Findings Conclusions , Suggestion & Bibliography

Chapter 6: Chapter 7:

CHAPTER -1
1. Nature of Business 2. Type & ownership Pattern 3. Organizational Structure 4. Production Lay out 5. Organisational Policies

NTRODUCTION Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest and world's third largest cellular service provider with more than 82 million subscribers as of December 2008. It also offers fixed line services and broadband services. SingTel owns over 30% of the Bharti Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus making it a sister company of the brand 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 Mo U with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agric - 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 to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since i Bharti Airtel Limited {NSE: BHARTIARTL, BSE: 532454), commonly known as Airtel, is an Indian telecommunications company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the

fifth largest telecom operator in the world with over 230.8 million customers across 19 countries as of June 2011.[2] It is the largest cellular service provider in India, with over 175.65 million subscribers at the end of December 2011. [3] Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China . Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco.[4] The company also provides land-line telephone services and broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. It is known for being the first mobile phone company in the world to outsource all of its business operations except marketing, sales and finance. Its network (base stations, microwave links, etc.) are maintained by Ericsson, Nokia Siemens Network and Huawei,[5] business support is provided by IBM, and transmission towers are maintained by another company (Bharti Infratel Ltd. in India).[6] Ericsson agreed for the first time to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enabled the company to provide pan-India phone call rates of Rs. 1/minute (US$0.02/minute).

Call rates have come down much further.[7] During the last financial year [2009 10], Bharti has negotiated for its strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business Type Public Company Trade as BSE : 53254 Industry Telecommunication Founded 7 july 1995 Founder {s} Sunil Bharti Mittal Headquarter New Delhi,India Area Served SouthAsia,Africa and the channel Islands Key people - Sunil Bharti Mittal {Chairman} and {MD} Products Fixed-Line and Mobile Telephony, broadband and fixedline internet service,digital TV ,IPTV and network service. Revenue Rs 59,601crore

Profit Rs 6,046 Total Assests Rs 100,785 crore Employees 21,548 Parent Bharti EntePrise Single Tel Vodafone

Airtel Digital TV Bharti Airtel Lanka Airtel Bangla Its inception has been at the forefront of technology and hassteered the course of the telecom sector in the country with its world class product stand 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

Bharti Airtel bharti airtel limited is a leading global telecommunications company with

operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. bharti airtel has been ranked among the six best performing technology companies in the world by business week. bharti airtel had 200 million customers across its operations.

The composition of the board is as under:

Sunil Bharti Mittal Chairman & Managing Director

Sunil Bharti Mittal, Chairman and Managing Director of bharti airtel is the Founder, Chairman and CEO of Bharti Enterprises. Sunil has been awarded the Padma Bhushan, one of Indias highest civilian awards. He is a member of the Board of Trustees of the Carnegie Endowment for International Peace. Sunil is also on the Indian Prime Ministers Council on Trade & Industry and the Telecom board of International Telecommunication Union (ITU), a leading UN Agency. He was the President of the Confederation

of Indian Industry in 2007-08 and was co-chairman of the World Economic Forum in 2007 at Davos. He is a member of several premier international bodies Leadership Council of The Climate Group, Advisory Committee of NYSE Euronext Board of Directors, International Business Advisory Council for London as well as Rome. An Honorary Fellow of the Institution of Electronics and Telecommunication Engineers, Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds, UK and the degree of Doctor of Science (Honoris Causa) by the GB Pant University.

Rajan Bharti Mittal

Rajan Bharti Mittal is the Vice Chairman & Managing Director of Bharti Enterprises. He is a non-executive director, Chairman of the Board ESOP Compensation Committee and a member of the Board HR Committee of bharti airtel. He is a graduate from Panjabi University and an Alumnus of Harvard Business School. He is currently the President of FICCI and is also a member of the Managing and Standing Committees of PHDCCI, a member of the Council of Management of AIMA, and a member of the Executive Committee of International Chambers of Commerce India chapter. He has held several key positions in various industry associations in the past as well. In FICCI he was the Chairman of Retail Committee in 2007, Infrastructure Committee in 2006, Telecom & IT Committee in 2004 & 2005, and Telecom Committee in 2001, 2002 and 2003.

Rakesh Bharti Mittal

Rakesh Bharti Mittal is the Vice-Chairman & Managing Director of Bharti Enterprises. He is a non-executive director and a member

of the Board Audit Committee of bharti airtel. He is the Chairman of Bharti AXA Life Insurance, Bharti AXA General Insurance, FieldFresh Foods, Comviva Technologies, Centum Learning and Beetel Teletech. Rakesh is the Chairman of Confederation of Indian Industry (CII)'s National Council for Agriculture. He is a member of the Agricultural and Processed Food Products Export Development Authority (APEDA). Rakesh is a member of the Executive Board of the Indian School of Business (ISB) and the Co-chairman of Bharti School of Telecommunication Technology and

Management. He is also on the Advisory Board of the Indian Institute of Technology (IIT) and Southern Methodist University (SMU), Dallas, USA. Rakesh is the Co-chairman of the Bharti Foundation. He is an electronics engineer with rich experience of over 34 years.

Chua Koong

Sock

Chua Sock Koong is a nominee of SingTel and was appointed as a

non-executive director of bharti airtel in May 2001. Sock Koong joined SingTel in June 1989 as Treasurer and was promoted to Chief Financial Officer in April 1999. She held the positions of Group CFO and CEO International from February 2006 until October 12, 2006, when she was appointed Deputy Group CEO. She was appointed as SingTel Group CEO in April 2007. Sock Koong holds a 1st Class Honours Degree in Accountancy from the University of Singapore and is a Certified Public Accountant and a Chartered Financial Analyst.

N. Kumar

N. Kumar is an independent director and Chairman of the Board Audit Committee of bharti airtel. A well-known industrialist,

Kumar is the Vice-Chairman of the Sanmar Group with interests in chemicals, engineering and shipping. Kumar is an active spokesperson of industry and trade and was the president of Confederation of Indian Industry (CII), a leading industrial body. He participates in various other apex bodies and is also on the Board of various public companies. He is the Honorary Consul General of Greece in Chennai. Kumar is an Electronics and Communication Engineer from Anna University, Chennai.

Craig Ehrlich

Craig Edward Ehrlich is an independent director of bharti airtel. He is the Chairman of the Board HR Committee and a member of the Board ESOP Compensation Committee. Craig is the former long time Chairman of the GSMA, the global trade association

representing second and third generation network operators, manufacturers and suppliers. He has served as a board member of Hutchison Telecoms Group Holdings Ltd since 2003 and now advises the groups 3G and 2G businesses worldwide. Craig is a board member of Eastern Telecom and Phil web in Philippines. He is the Chairman of Kbro, Taiwan's largest cable TV operator and Novare Technologies Ltd., a software company based in Hong Kong. He is a member of ITU Telecom Board. Craig was a founding member of the team that launched STAR TV, Asia's first satellite delivered multi-channel television network. After four years with Hutchison Whampoa, Craig became the Group Operations Director at Hutchison

Telecommunications. Craig holds a B.A. degree from the UCLA, a Masters degree from Occidental College and a postgraduate fellowship with the Coro Foundation.

Pulak Chandan Prashad

Pulak Chandan Prasad is an independent director and a member of

the Board Audit Committee of bharti airtel. He initially joined the Board as a nominee of Warburg Pincus in November 2001. He is the Founder and Managing Director of Nalanda Capital, a Singapore based fund management and advisory company. Prior to creating Nalanda, Pulak was Managing Director and co-head of the India office of Warburg Pincus, covering their India, South and South East Asian operations. He joined Warburg Pincus in 1998. From 1992 to 1998, Pulak was a management consultant with McKinsey & Company in India, USA and South Africa. Pulak has a B.Tech Degree from the Indian Institute of Technology, Delhi and a MBA from the Indian Institute of Management, Ahmedabad.

Ajay Lal

Ajay Lal is an independent director and a member of the Board

Audit Committee of bharti airtel. He is a Senior Partner and Managing Director of AIF Capital and has over 20 years experience in private equity, project finance and corporate banking. Prior to joining AIF Capital in 1997, Ajay worked with AIG Investment Corporation and Bank of America respectively. Ajay has represented AIF Capital on the boards of a number of large corporations across Asia and in this capacity enforces strict standards of corporate governance, as well as provides management teams with strategic guidance. He is an Engineer from IIT Delhi and an AMP graduate from Harvard Business School. He also holds an MBA from IIM Calcutta.

Tsun Yan Hsieh

Tsun-yan Hsieh is an independent director and a member of the Board HR Committee and ESOP Compensation Committee of

bharti airtel. He is the Chairman of LinHart Group, a Leadership services firm specialized in Advising boards and Counseling CEOs throughout Asia on issues of succession and leadership effectiveness at the top. He is an Adjunct Professor of Leadership at the Lee Kuan Yew School of Public Policy and an Independent Director of Sony Corporation. He also serves on Sonys Global Advisory Council. In a career spanning 30 years with McKinsey, he served clients in as many countries and industries in corporate transformation and leader development. His leadership positions in McKinsey included Chairman of Professional Development Committee, Managing Director, Canada and ASEAN practices, Chairman of Asia Client Committee, and the Directors Committee till he retired in 2008. He founded McKinseys Leadership Services globally to help clients grow more, better leaders faster. Tsun-yan contributes to community with board roles in the Singapore International Foundation, the National University of Singapore Business School, the Institute of Policy Studies, the Singapore Symphony, Covenant House Canada and the University Health Network foundation in Toronto. Mr. Hsieh is a Harvard MBA who won double gold medals reading Mechanical Engineering at the University of Alberta as a President and Colombo Plan Scholar.

Salim Ahmed Salim

Dr. Salim Ahmed Salim is an independent director of Bharti Airtel Limited. He is a serving Chairman of the Board of Trustees of The Mwalimu Nyerere Foundation and Chairperson of the Board of the Mwalimu Nyerere Memorial Academy. He is also a member of the Panel of the Wise of the African Union and chairs a number of the Boards of African NGOs dealing with humanitarian and security issues. In his long public career he has served as Ambassador to Egypt (1964), India (1965-68), and China (1969) as well as Permanent Representative to the United Nations (1970-80) where he also served as President of the 34th Session of the United National General Assembly. Other positions held include Minister for Foreign Affairs (1980-84), Prime Minister (1984-85), Deputy Prime Minister and Minister of Defence and National Service

(1985-89). He also served for three successive terms (1989 2001) as Secretary General of the Organization of African Unity OAU [now the African Union].

Tan Yong Choo

Yong Choo is a nominee of SingTel and was appointed as a nonexecutive director of bharti airtel in January 2010. She is also a member of the Board Audit Committee. She has a wide range of working experience gained from her stints in international accounting firms as well as in multinational corporations. She began her career with SingTel in November 1994 and was appointed to her current role as Group Financial Controller in June 2007, with responsibilities for the Groups financial functions including reporting, planning and forecasting. She also provides high level financial advice that would affect operations and is primarily responsible for financial policies and procedures. Prior to joining SingTel, Yong Choo worked for several years in international accounting firms, Coopers & Lybrand and Arthur Anderson.

Yong Choo holds a Second Class Honours Degree in Accountancy from the National University of Singapore and is a Certified Public Accountant.

Nikesh Arora

Nikesh Arora is an independent director and a member of the Board HR Committee and ESOP Compensation Committee of bharti airtel. Nikesh oversees all revenue and customer operations as well as marketing and partnerships at Google. Since joining in 2004, he has held several positions with the Company. Most recently, he led Google's global direct sales operations. He also developed and managed the Company's operations in the European, Middle Eastern and African markets and was responsible for creating and expanding strategic partnerships in those regions. Prior to joining Google, he held senior and management positions in T-Mobile and Deutsche Telekom. Nikesh holds a master's degree with distinction from Boston College and an MBA from Northeastern University. In 1989, Nikesh graduated from the Institute of Technology in Varanasi,

India with a bachelor's degree in electrical engineering.

Manoj Kohli

Manoj Kohli is the CEO (International) & Joint Managing Director of bharti airtel heading the newly formed International Business Group. Prior to joining bharti, he worked with the Shriram Group (where he started his career in 1979), Allied Signal/Honeywell and Escotel in senior leadership positions. Manoj was the Chairman Confederation of Indian Industry (CII) National Committee on Telecom & Broadband. He was a member of the Board of GSM Association (GSMA) in 2008. He was the Chairman of the Cellular Operators Association of India (2001-02). Manoj is a member of the Academic Council of the Faculty of Management Studies (FMS) and Shri Ram College of Commerce, Delhi University. He is a Commerce and Law Graduate from Delhi University and holds an MBA degree from FMS. Manoj also attended the Executive Business Program

at the Michigan Business School and the Advanced Management Program at the Wharton Business School. He was adjudged "Telecom Man of the Year" and "Telecom Person of the Year" by Media Transasia and Voice & Data respectively.

Hui Weng Cheong

Mr Hui Weng Cheong is a non-executive director of bharti airtel. He is appointed SingTel CEO International (Designate), effective October 1, 2010. He will formally assume the role on December 1, 2010. Prior to this appointment, Mr Hui held the post of Chief Operating Officer with the Groups Thai associate, Advanced Info Service (AIS), responsible for sales and marketing, network operations, IT solutions and customer and services management. He started his SingTel career as an Engineer and has more than 30 years of experience with the SingTel Group. A SingTel scholar, Mr. Hui is first class honours graduate in Engineering (Electrical) from National University of Singapore. In the early part of his career, he spent about ten years in the Teleview Division, moving from system development to managing

the Planning and Support Department. In 1992, through a SingTel sponsorship, he obtained his Master of Business Administration from the International Business Education and Research Program at the University of Southern California, USA. In 1995, he was posted to Thailand as the Managing Director of Shinawatra Paging (a previous SingTel joint venture.) He returned in 1999 and took on the role of Vice President (Consumer Products) and managed the product development of all new mobile, paging, Internet, Broadband and telephone businesses.

Lord Evan Mervyn Davies

Lord Evan Mervyn Davies is an independent director of bharti airtel. Lord Davies of Abersoch is a partner and Vice Chairman of Corsair Capital, a private equity firm specialising in financial services. He is also Non-Executive Chairman of PineBridge Investments Limited and Chair of the Advisory Board of Moelis & Co. He holds a Non-Executive Director role at Diageo plc. Lord Davies of Abersoch was Minister for Trade, Investment and Small Business from January 2009 until May 2010, a joint role between the Department for Business, Innovation and Skills and the Foreign and Commonwealth Office, also with responsibility for Infrastructure UK. Prior to this appointment, he was Chairman of Standard Chartered PLC from November 2006. He joined the Board of Standard Chartered PLC in December 1997 and was Group Chief Executive from November 2001 until 2006. He was a non-executive director at Tesco PLC from 2003-2008. Lord Davies is the Chair of the Council of the University of Wales, Bangor, and a trustee of the Royal Academy of Arts. He was awarded a CBE for his services to the financial sector and the community in Hong Kong in June 2002 where he served as a member of the HK Exchange fund for many years.

Code of conduct
The partners will conduct all its dealings in a very ethical manner and with the highest business standards. All partners with a bussiness 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 t Vision The leader in the communication Industry, Creating Customer Delight and Shareholders Wealth; Mission To provide maximum value for money to their customers through continuous improvement of products and services. A pride of India

Production layout Mobile Airtel has nationwide presence and is the market leader with a market share of almost completely (as of May 2010). It is 6th most valued brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010. On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM). The Apple iPhone 3G was rolled out in India on 22 August 2008 by Airtel & Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high prices and contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets of the world. The Apple iPhone 4 was introduced on 27 May 2011 by Airtel & Aircel.

3G On 18 May 2010, 3G spectrum auction was completed and Airtel will

have to pay the Indian government 12,295 crore (US$2.7 billion) for spectrum in 13 circles, the most amount spent by an operator in this auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (east), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir Airtel also operates 3G services in Maharastra, Goa, Kanpur and Kolkata through an agreement with Vodafone and in Gujarat through an agreement with Idea. This gives Airtel a 3G presence in 15 out of 22 circles in India. On 20 September 2010, Bharti Airtel said that it has given contracts to Ericsson India, Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in the country. These vendors will plan, design, deploy and maintain 3GHSPA (third generation, high speed packet access) networks in 13 telecom circles where the company has won 3G licences. While Bharti Airtel has awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks in three circles. Chinese telecom equipment vendor Huawei Technologies has been introduced as the third partner for three circles. On 24 January 2011, Airtel launched 3G services in Bangalore, Karnataka its largest circle by revenue. With this launch, Airtel became the third private operator (fifth overall) to launch its 3G services in the country following Reliance

Communications and Tata Docomo On 27 January 2011, Airtel launched 3G in Chennai and Coimbatore. On 27 July 2011 Airtel launched 3G in three major cities in Kerala (Trivandrum, Cochin and Calicut) with 3G network sharing agreement

between idea Airtel plans to cover 1,500 cities across 13 circles by the end of March 2012. The company, which has 3G licences for 13 circles, is also in talks with other service providers to roll out the services in the remaining 10 circles as part of its roaming offerings. Airtel had about 3 million 3G subscribers as of May 2011o 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 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 knowhows. 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 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 required

CHAPTER 2

Industry Overview (Growth rate of Industry, Contribution to GDP) Current Issues (From Newspaper, Journals For Company and Industry) Key Competitors

Environmental

Scanning

Political

environment,

Economic

environment, Socio-Cultural Environment, technological environment, environmental issues (Green environment) and Legal environment. Porters five forces model of competition Michael Porter

CODE OF CONDUCT
For Directors and Senior Management

Background:

Issues of Corporate Governance and challenges posed by the increasing awareness and importance for greater transparency, accountability and disclosure in companies have created a need to evolve a Code of Conduct (Code) for all members of the Board and senior management of Bharti Airtel Ltd. In its constant endeavor to improve and maintain the highest standards of corporate governance, the Board of Directors has adopted this Code of Conduct for Directors and Senior Management.

Applicability:

The Code is applicable to all the following persons:

-executive Directors of the Company (Directors) including independent directors.

Executive Directors of the Company (Executive Directors). Senior Principal Officers comprising Corporate Directors and members of the Airtel Management Board and Financial Controller. Directors and Executive Directors are referred to as Board. Executive Directors, and Senior Management including Financial Officers are collectively referred to as Senior Principal Officers. Chief Financial Officer, Financial Controller and Group Director-Finance shall be referred to as Financial Officers The objective of the Code is to promote honest and ethical conduct and disclose in a transparent manner the values in accordance to which the business of the Company will be conducted. The Board is of the view that the standards should apply to them and to Senior Principal Officers of the Company should be higher than those that are applicable to all employees. Accordingly, compliance with this Code is a condition of employment and service for Senior Principal Officers, and is meant to supplement the general Code of Conduct for all employees.

The Code: Collective responsibility

All Directors and Executive Directors acting collectively as a Board, function under the principle of collective responsibility and will always act in the interest of the Company.

 In making its decisions, the Board shall take into account, and balance the various and sometimes inflicting interests of all the stakeholder The members of the Board, in discharge of their fiduciary duties, will exercise due care, competence and diligence as a reasonable and prudent person, and exercise the highest standards of integrity and ethics. The Board will rely in good faith on Senior Management for information and disclosures for its evaluation and decision-making. All the Board members must always act in the best interests of the company and decisions will be taken in good faith. All independent Directors must met the criteria for independence as set out in clause 49 of the listing agreement with the Stock Exchange or other regulations as amended from time to time. Directors must not be disqualified from being appointed as directors under Section 274 and other applicable provisions of the Companies Act, 1956.

Honest and ethical conduct:

Executive Directors and Senior Management will pro-actively promote and set an example of ethical behavior and integrity to the employees of the Company. In the discharge of their official duties and obligations the Board and Senior Management will exhibit and promote the highest standards of honest and ethical conduct. Confidential information acquired in the course of ones position, work and responsibility will not be used for personal gain or advantage, nor be disclosed to a third party unless required by law to do so. Applicable laws, rules and regulations will be complied with in letter and in spirit in all the jurisdictions in which the Company operates, and the Board will rely for such compliance on the information and disclosures made by Senior Management. Disclosure and transparency: The President & CEO and Financial officers will provide the Board, shareholders and other stakeholders with accurate, complete, objective,

relevant and timely information in an easily understandable form, by means of periodic reports and other public communication subject to relevant laws and guidelines on the same. While making such disclosures, all material facts will be stated and there will be no concealment or misrepresentation of information or data.

Record Keeping:

Financial Officers will record and report business expenses and income accurately and books, records, accounts and financial statements will be maintained in reasonable detail, appropriately reflect transactions and conform to both applicable legal requirements and systems of internal control.

Conflict of interest:
A conflict of interest exists, where the interests or benefits of one person or entity conflict with the interests or benefits of the Company. Transactions, commitments and other activities which are not in the best interests of the Company or which have the potential to develop into a conflict of interest, should be avoided. Conflicts of interest between personal and professional relationships will be avoided, and if legally permitted and unavoidable due to extraordinary circumstances, shall be fully disclosed to the Board by the person engaging in such transaction. As a general rule, Executive Directors and Senior Management should avoid conducting business of the Company with a close relative or with a business in which a relative is associated in any significant role. The employment of such relatives in the same department or in positions that have a financial dependence or influence is discouraged and an exemption has to be obtained from the Chairman in special circumstances. Any activity that interferes adversely with performance, duties and obligations or is otherwise in conflict with, or prejudicial to the Company is prohibited. Executive Directors and Senior Management will devote their full attention and time to the business interests of the Company. Executive Directors and Senior Management will not render any professional service to or accept remuneration or compensation in cash or kind from suppliers, customers, consultants or competitors to the Company.

 The Board and Senior Management will not take part in any activity that enhances or supports a competitors position, unless there is a definite benefit for the Company. It is a conflict of interest to serve as a Director of a company that competes with or has a potential conflict of interest with the Company. Senior Management must obtain the approval of the Board before accepting any position with another company, even a non-competitor and even if honorary. Any Executive Director or Senior Management, in considering investing in any customer, supplier, developer or competitor of the Company (except purchase of equity or debt instruments of listed companies), must take care to ensure that these investments do not compromise their responsibilities to the Company. Prior approval of the Audit Committee of the Board is necessary for making any such investment. While making such investment, the factors for determining conflict of interest include the size and nature of such investment, the ability of the proposed investor to influence the Companys decisions, access to confidential information of the Company or the other company, and the nature of the relationship between the Company and the other company. Solicitation or acceptance by a member of the Board or Senior Management and their immediate family members, of a personal loan or guarantee from a customer in any capacity or supplier of products or services is not allowed. Executive Directors and Senior Management shall not accept any offer, payment, promise to pay or authorize payment of any money or gift of value, from customers, suppliers, vendors or authorities, that is perceived as intended

directly or indirectly to influence any business decision. Inexpensive gifts, business meals, celebratory events and official entertainment, provided they are not excessive or create an appearance of impropriety, do not breach the

Code and are permitted. Gifts given or received should be appropriate to the circumstances and never excessive. None of the members of the Board or Senior Management may exploit for their personal gain, opportunities that are discovered through the use of corporate property, information or position, unless the opportunity is disclosed in writing to the Audit Committee of the Board and the Board declines to pursue the opportunity.

Any deviation/breach of the Code will be treated with due seriousness and prompt action taken to redress the same.

Amendments and waivers to the Code

From time to time, the Board may amend or waive certain provisions of the Code depending on the legal and other requirements or for a bona fide purpose. Every member of the Board and Senior Management, including new recruits (at the time of joining) will be given a copy of the Code and are required to confirm their compliance of the same in writing. A copy of the Code will also be published on the web site of the Company. This code may, from time to time be extended to other senior officers of the company, as the Board may think fit.

New structure to drive the next phase of companys growth

Creation of B2C and B2B business verticals for enhanced business efficiency and employee value Transformation from a technology facing organisation structure to a customer facing one Will provide enhanced empowerment to employees New Delhi, July 7, 2011: Bharti Airtel, a leading global telecommunications company with operations in 19 countries across Asia and Africa, today announced a new organization structure for its operations in India and South Asia. The new structure, which will be effective starting August 1, 2011, is aimed at driving greater business and functional synergies, providing a common interface to customers, and creating a de-layered and more agile organization. In addition, the new structure will provide more meaningful, empowered roles and enhance employee engagement.

Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel, said Bharti Airtel has always adopted transformational business models that have set the industry benchmark. As we move into the next phase of our growth journey, this new organization structure marks a major step towards building an organization of the future. Customers are at the core of our business and with this new structure we are proactively creating an integrated customer centric organization. I am confident that this will provide us a solid platform to achieve

our vision of making Airtel the most loved brand enriching the lives of millions.

The transformed organization structure will have two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtels B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business units Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-advertising etc). The B2C organization will consist of Consumer Business and Market Operations.

The Consumer Business group will lead the overall B2C strategy and will focus on customer experience, product and service innovation (including data, VAS, new products/services), and build an ecosystem around the B2C services. K Srinivas will lead this vertical as the President, Consumer Business. Market Operations group will lead the go-to-market strategy. This vertical will take products and services to customers in South Asia with speed and efficiency. Market Operations will complement the Consumer Business by building a robust go-to-market ecosystem and leverage Bharti Airtels vast distribution reach. Market Operations in India & South Asia will be divided in three regions, each headed by an Operations Director: the North, East & Bangladesh operations will be headed by Ajai Puri; South & Sri Lanka operations will be headed by Vineet Taneja; and operations in the West will be headed by Raghunath Mandava (along with National Distribution portfolio).

The B2B business unit will continue its focus on serving large corporate and carriers through Bharti Airtels wide portfolio of telecommunication solutions. The B2B organization will continue to be led by Drew Kelton.

In their new roles K Srinivas, Ajai Puri, Raghunath Mandava and Vineet Taneja, along with Drew Kelton, will report to Sanjay Kapoor, CEO India & South Asia.

Atul Bindal, who has successfully led the Mobility Business for over 2 years, will move into a role within the Group.

About Bharti Airtel Limited

Bharti Airtel Limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti Airtel has been ranked among the six best performing

technology companies in the world by BusinessWeek. Bharti Airtel had over 226 million customers across its operations at the end of May 2011. To know more please visit, www.airtel.in

MARKETING STRATEGY ADOPTED BY BHARTI

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besidesprint 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 thebrand awareness and to build brand preferences. It is trying to set up a thematic campaign tobuild a stronger brand equity for Airtel. Since the cellular phone category itself istoo restricted,also the fact that a Cellular phone is a high involvement product, price doesn't qualify as aneffective differentiator. The image of the service provider counts a great deal. Given the Cellphone 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 price-performance package. This alsoserves as an effective differentiator Brand awareness is spread through the' campaigns andbrand 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 and without explaining whatAirtel was. In the next phase the campaign associated Airtel with Cellular only thereafter wasthe Bharti Cellular connection 60 brought up. Vans with Airtel logos roamed the city, handingoutbrochures about the company and its services to all consumers. About 50,000 direct callerswere sent out. When the name was well entrenched in the Delhiitess mind, the Airtel campaignbegan to focus on the utility of Cellphone. In the first four months alone Airtei's advertisementspend exceeded

Rs. 4 crores.As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeableconsumers 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 thebrand on the above aided and the unaided tests. The figures show that Airtel is a healthy and athriving brand. Every company has a goal, which might comprise a sales targetand a game plan with due regard to Its competitor. Airtel 's campaign strategy is designedkeeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads aredesigned to convey the image of a market leader in terms of its market share. It tries to portraythe image of being a "first mover every time" and that of a "market leader".61 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 onthe left hand side shows the percentage of the users classified into heavy, medium and lowcategories. The right hand side shows the revenue share earned from the threetypes of users. Airtel, keeping in mind the importance of the customer retention, values itsheavy users the most and constantly indulges in service innovation. But, since heavy userscomprise only 15 - 20% of the population the other segment cannot be neglected. Thepopulation which has just realised 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. Concertslike the "Freedom concert" are being organised by Airtel in order to promote sales. The mediachannel is chosen with economy in mind. The target segment is not very concrete but, there isan attempt to focus on those who can afford. The print advertisements and hoarding are placedin those strategic areas which most likely to catch the attention of those who need acellular phone. The product promise (which might cost different 1 higher) is an

importantvariable in determining the target audience. 62 Besides this, other promotional strategies thatAirtel has adopted are .(i) 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 theGerman airlines frequent flier's programs.

CHAPTER 3

Products of Company 4 Ps (Product: Price, Place & Promotion) STP (Segmentation, Targeting and Positioning) Distribution Channels Promotion

INTRODUCTION AND IMPORTANCE OF MARKETING STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable advantage. A marketing strategy should be centred on the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

Importance of Marketing Strategy

The importance of marketing plans outweighs any other decision that can be taken in the realm of marketing strategies. Yes, marketing plan is essential to grab the market segment before any other player captures the market. What are the target groups? Which segment of the market presents higher revenue

generating opportunities? These are some of the questions that marketing teams ponder over, in the pursuit of achieving a good plan. This is where the importance of marketing research comes into picture. The market research team analyzes and understands the requirements of the consumers. Conducts polls and researches and comes up with data and statistics that help to logically target a market. Another factor that governs the marketing plans is the marketing mix elements. Marketing mix elements are the sets of factors that help firms to achieve their targets of reaching the products to the consumers and also achieve organizational objectives.

STP ANALYSIS OF THE COMPANY Segmentation

Airtel has segmented its customer in the following ways: Understanding needs and preferences of consumers Grouping customers based on their needs and preferences -- Customers with similar needs and preferences are included in this segment.

 Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of which it can meet the needs and preferences. I.e. customer needs higher- strength or low price. Branding the commodity -- Though being a commodity product, branding is important for a company. Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.

Targeting
Its customer base represents the masses of India. The company targets on the important sources like shops in the country It targets the competitive companies like P&G. It Targets all Indian customers & communities. It targets an individual (Retail Marketing)

Positioning
A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product.

BCG MATRIX OF THE COMPANY

airtel , the BCG

matrix divides products/businesses into four Categories: Stars: These high growth products in a fast growing market need more resource commitments. Cash Cows: These are low growth, high market share products, where minimal investments are envisaged. Indeed, cash cows provide the cash flows that support other businesses. Question Marks: These are low market share business units in high growth markets. Investment is needed to build them into stars Dogs: These are low growth and low market share businesses which generate just enough cash to maintain themselves. They are businesses from which the company is likely to withdraw in the near future.

Organisational Structure

The organizational structure that existed till recently concentrated on the hierarchy of the operations(not services)inside the company as a whole. The structure depicts the corresponding operation/region of different in-charges and hence it didn't hold anyone responsible for each of its services. So, the company found it better to restructure its organizational chart and it came into implementation from 1 August. The transformed organizational structure will have two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile

business units Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-advertising etc.). The B2C organization will consist of Consumer Business and Market Operations. it is the largest telecommunication company in India

Compitetor
IDEA Idea Cellular Idea Cellular, usually referred to as Idea, is an Indian mobile network operators based inMumbai, India. Idea is the 4th largest wireless carrier in Indian market with over 100 million customers and also provides broadband Internet ton

2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Balata, was born and was later branded as Idea. Then Idea set sights on RPGs operations in Madhya Pradesh which was successfully acquired, helping Balata have a million subscribers, and the license to be the fourth operator in Delhi was clinched. In 2004, Idea (the company had by then been rechristened) bought over the Escorts groups Escotel gaining Haryana, Uttar Pradesh (West) and Kerala and licenses for three more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on the companys network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue an independent telecom business. And Idea was left only with one promoter, the AV Birla group. Rs 2,700 crore adding Punjab and Karnataka circles. Modes joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a 14.99% stake in Idea. Just around then, Ideas subsidiary, Aditya Birla Telecom sold a 20% stake to US-based Providence Equity Partners for over Rs 2,0000 crore.

TATA

Tata Teleservices Limited (TTSL) (BSE: 532371) is an Indian broadband and telecommunications service provider based in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group, an Indian conglomerate. It operates under the brand name Tata Do Como in various telecom circles of India. In Nov 2008, Japanese telecom giant NTT Decoma picked up a 26 per cent equity stake in Tata Teleservices for about Rs 13,070 crore ($2.7 billion) or an enterprise value of Rs 50,269 crore ($10.38 billion).[2] In Feb 2008, TTSL announced that it would provide CDMA mobile services targeted towards the youth, in association with the Virgin Group on a Franchisee model basis. Tata Teleservices provides mobile services under the following brand names:

Tata Do Como (CDMA & GSM mobile operator, wireless broadband) Virgin Mobile (CDMA & GSM mobile operator) T24 Mobile (GSM mobile operator

MTNL Bharat Sanchar Nigam Limited (abbreviated BSNL) is a state-

owned telecommunications company headquartered in New Delhi, India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider of broadband services. However, in recent years the

company's revenue and market share plunged into heavy losses due to intense competition in Indian telecommunications sector.[4][5] BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95 million as of June 2011.[6] It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam

REALINCE COMMUNICATION

Reliance Industries Limited (RIL)

(BSE: 500325, NSE: RELIANCE, LSE: RIGD)

is

an

Indian conglomerate company headquartered in Mumbai, India. The company operates through three business segments: petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone (SEZ) development and telecom/broadband business. RIL is the largest publicly traded company in India by market capitalization and secondlargest public corporation in India when ranked by revenue.[2][3] The company is listed on Fortune Global 500 and Forbes Global 2000n September 2008 Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies".[4] In 2010 it stood at 13th position in the Platts Top 250 Global Energy Company Rankings.[5] hough the company's petrochemicals,

refining, and oil and gas-related operations form the core of its business, other segments of the company include textiles, retail business, telecommunications, and special economic zone (SEZ) development. Reliance Retail has entered into the fresh foods market as Reliance

Telecom beats slowdown blues, contributes big to GDP growth

Anto Antony & Durba Ghosh, ET Bureau Dec 20, 2008, 12.41am IST

(iPhone Smartphone Wars Nokia N97 Slimmest BlackBerry) NEW DELHI: While the global economic slowdown has cast its shadow on manufacturing and some key services like IT, telecom sectors have bucked the trend. The telecom sector, which clocked a 42.2% growth in the quarter ended September, has emerged as a big contributor to the GDP growth, according to the country's chief statistician Pronab Sen.

"High growth rate in this sector - with weight of less than 3% in GDP - was a key driver which pushed GDP figures for the quarter ended September to 7.6%," said Mr Sen. Companies reflect the confidence, and most believe that the sector will continue its growth story remain unscathed by the global financial turmoil. According to Sanjay Kapoor, president - mobile services, Bharti Airtel, the telecom sector's potential in India remains under-tapped and growth rate in teledensity, especially in rural India, will remain robust. "Telecommunications contribution to the GDP growth rate will further increase in the coming quarters," said Mr Kapoor. Betting big on the growth story, new entrants along with established players are pushing ahead with huge investment and hiring plans. Videocon's telecom arm Datacom - a new entrant in the sector - plans to have a pan-India presence. "We are planning to invest Rs 6,000 crore over the next five years," said Videocon chairman Venugopal Dhoot. Industry experts say the rural circle, where penetration is 12.72%, will drive the growth in the coming years. While the overall tele-density in India is over 30%, in rural areas the figure languishes in single digit. According to a Confederation of Indian Industry (CII) forecast, subscriber addition in the rural areas would far exceed additions in the metros by 2012. About 120 million new users are expected to adopt wireless telephony in rural areas, compared with about 62 million in the metros, according to CII estimates. "The majority of new wireless subscribers will emerge from circle B and circle C," said Ernst & Young telecom analyst Prashant Singhal.

In fact, the trend is already evident. In the first nine months of 2008, the four metros together added 10.3 million subscribers, while the rural circles added over 11.3 million, according to data given out by telecom regulator TRAI. The total number of telephone subscribers as of September 2008 are 353.66 million, out of which only 29% is contributed from rural India, which constitutes 70% of the total population. Companies are all geared up to take on the opportunity. Datacom plans to recruit more than 6,000 in the next three years. Shyam Telelinks has also put in place a hiring plan. Says Shyam Telelinks CEO Vsevolod Rozanov: "All our recruitments are on track and we will be hiring more than 15,000 in the next two years. We are going ahead with investment plans and will emerge as a pan-India operator by 2010." "High growth rate in this sector - with weight of less than 3% in GDP - was a key driver which pushed GDP figures for the quarter ended September to 7.6%," said Mr Sen. Companies reflect the confidence, and most believe that the sector will continue its growth story remain unscathed by the global financial turmoil. According to Sanjay Kapoor, president - mobile services, Bharti Airtel, the telecom sector's potential in India remains under-tapped and growth rate in teledensity, especially in rural India, will remain robust. "Telecommunications contribution to the GDP growth rate will further increase in the coming quarters," said Mr Kapoor. Betting big on the growth story, new entrants along with established players are pushing ahead with huge investment and hiring plans. Videocon's telecom arm Datacom - a new entrant in the sector - plans to have a pan-India presence. "We are

planning to invest Rs 6,000 crore over the next five years," said Videocon chairman Venugopal Dhoot. Industry experts say the rural circle, where penetration is 12.72%, will drive the growth in the coming years. While the overall tele-density in India is over 30%, in rural areas the figure languishes in single digit. According to a Confederation of Indian Industry (CII) forecast, subscriber addition in the rural areas would far exceed additions in the metros by 2012. About 120 million new users are expected to adopt wireless telephony in rural areas, compared with about 62 million in the metros, according to CII estimates. "The majority of new wireless subscribers will emerge from circle B and circle C," said Ernst & Young telecom analyst Prashant Singhal. In fact, the trend is already evident. In the first nine months of 2008, the four metros together added 10.3 million subscribers, while the rural circles added over 11.3 million, according to data given out by telecom regulator TRAI. The total number of telephone subscribers as of September 2008 are 353.66 million, out of which only 29% is contributed from rural India, which constitutes 70% of the total population. Companies are all geared up to take on the opportunity. Datacom plans to recruit more than 6,000 in the next three years. Shyam Telelinks has also put in place a hiring plan. Says Shyam Telelinks CEO Vsevolod Rozanov: "All our recruitments are on track and we will be hiring more than 15,000 in the next two years. We are going ahead with investment plans and will emerge as a pan-India operator by 2010."

BCG MATRIX

In the early 1970's, BCG Matrix first propounded by Bruce Henderson of the Boston Consulting Group. It is also known as BCG matrix, Boston Consulting Group Matrix, BCG Growth-Share Matrix or Matrix Quadrants.

Using the Product Portfolio Matrix approach, a company classified all its SBUs or Products/Markets airtel according to Growth-Share Matrix. Therefore, it is best describe as Portfolio planning model.

In A. B. C. D.

this Matrix

Quadrants, the plate is divided

4 categories named Star

Cash Question

Cow Mark Dog

The division is based on Market Share and Growth rate. A brief discussion comes follow: A. Star: Leader [i.e. high market share] of high growth market is called star. These SBUs are net user of cash, because they always require heavy investment to finance rapid growth and to sustain market share. When the product comes to mature stage, then the growth slow down and they turn to cash cow.

B. Cash Cow: Cash cows are low growth but high market share (Market leader) businesses or products.

Their high earnings, coupled with their depreciation, represent high cash inflows and they need very little in the way of reinvestment. And thus, they are the net provider of cash. Surplus cash are used for Research and Development and to support other SBUs that need investment.

C. Question mark: Products in a growth market with low market share are categorized as Question Mark.

Because of growth, these SBUs require a lot of cash to hold their market share and let alone to increase it. If nothing is done to increase the market share, a Question mark will simply absorb large amount of cash in the short run and later, as growth slow down, become a dog. Thus, unless something is done to change its perspective, it becomes a cash trap.

Management has to decide which question marks should try to build into stars and which should be phased out.

D. Dog: Dog are low growths, low market share SBUs. They may generate enough cash to maintain themselves, but do not promise to be large source of cash.

Most often case, it should be liquidate and try with Question mark SBUs for investment. Market Growth Rate and Relative Market Share play important roll in BCG Matrix. Market Growth Rate is the measure of industry attractiveness and Relative Market Share is the measure of Competitive advantage. Therefore, these two are most important factors to consider organizations profitability and strategic plan.

SOURCES OF FINANCE

Share holders Fund Shareholder funds is all the money belonging to common stock shareholders which includes the balance of share capital, all profits retained and money classified as reserves.

Loan Funds A Loan Fund is a source of money from which loans are made for small business development projects. A loan is made to one person or business at a time and, as repayments are made, funds become available for new loans to other businesses. Hence, the money revolves from one person or business to another.

Deferred Tax Liabilities An IDEA CELLULAR account on a company's balance sheet that is a result of temporary differences between the company's IDEA CELLULAR accounting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year. This liability may or may not be realized during any given year, which makes the deferred status appropriate.

RATIO ANALYSIS
Current Ratio shows an average ratio of 1.21which is less than the ideal ratio is 2:1. Cash Ratio shows as average greater than its ideal ratio that is 0.5. Debtors Turnover Ratio shows the amount of credit sales has been increased, collection period is derived as 18 days In the calculation of Working capital Turnover Ratio there is an adequacy of fund except the year 2009-2010. Gross profit ratio is fluctuating during the period of study. Inventory Turnover ratio implies that the Inventory has been utilized efficiently.

CHAPTER

Sources of Finance Ratio Analysis Any 5 Net Profit/ Balance sheet (from annual report) -Analyse

Overview of Ratio Analysis

Ratio analysis is one of the techniques used to analyse the financial statements. It is one of the most powerful tools of financial analysis. It is the process of

establishing and interpreting various ratios (quantitative relationship between figures and group of figures). Through ratio analysis financial statement can analyse more clearly and decision made from such analysis.

Nature of Ratio Analysis:

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the process of establishing and interpreting various ratios for helping in making certain decision. However, ratio analysis is not an end in itself. It is only a means of better understanding of financial strength and weaknesses of affirm. Calculation of mere ratios does not serve any purpose, unless several appropriate ratio are analysed and interpreted. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis. The ratios may be used as a symptom like blood pressure, the pulse rate or the body temperature and their interpretation depends upon the caliber and competence of the analyst. The following are the four steps involved in the ratio analysis: i. Selection of relevant data from the financial statements depending upon the objective of the analysis. ii. iii. Calculation of appropriate ratios from the above data. Comparison of the calculated ratios with the ratios of the same firm in the past, or the ratios developed from projected financial statements or the ratio

of some other firms or the comparison with ratios of the industry to which the firm belongs. iv. Interpretation of the ratios.

COMPANY EXPANSION

FMCG major AIRTEL is stepping up expansion in the skin care segment, on the back of its acquisition of Fem Care Pharma last year, with plans to expand range of products from the latter's stable besides launching a new brand of its own. "Skin care is one segment where Idea Cellular has not had a sizeable presence. We plan to scale this up fast. It is a key focus area for Idea Cellular India this fiscal," Idea Cellular India Chief Operating Officer V S Sitaram said. Going forward, he said, the company sees the segment becoming a key growth driver, for which it is "preparing a big offensive" in the market. "Our skin care attack would be driven by a three-pronged strategy. The first would be the Gulabari range of mainstream skin care products offering the benefit of roses," he said. The second would be the Fem range of skin care products. The third would be "a completely new brand, details of which are currently not available," Sitaram added.

While Idea Cellular's presence in the estimated Rs 1,200-crore Indian skin care market is limited only through the Gulabari range at present, it is expecting to have a sizeable share as soon as it completes the Rs 203.73 crore acquisition of Fem Care Pharma by June-end. Fem Care has products including Oxy Bleach, Fem Bleach, Botanica and Saka in its portfolio

Indian Telecom Industry started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). In 1881 the Telephone services were introduced in India and telephone services were merged with the postal system in 1883. In 1923 the Indian Radio Telegraph Company (IRT) was formed. In 1947 after the independence, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. The Indian Telecom Industry was considered as a strategic service and best to bring under state's control. In 1980 when the private sector was allowed in telecommunications equipment manufacturing the first wind of reforms in telecommunications sector began to flow. Department of Telecommunications (DOT) was established which was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). Government has two wholly owned companies which were created as: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas in 1986. In 1990's the opening up of economy led to the benefits of telecom Industry. In 1994 the National Telecom Policy (NTP) was formulated which was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. Telecom Regulatory Authority of India (TRAI) was created in 1997. It was formed to act as a regulator to facilitate the growth of the telecom sector. Indian Telecom Industry can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. The Indian Fixed line services consist of basic services, national or domestic long distance and international long distance

services. The state operators (BSNL and MTNL), account for almost 90 % of revenues from basic services. In selective urban areas the Private sector services are presently available which collectively account for less than 5 % of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Brief introduction
Indian Telecom Industry is the fastest growing and 5th largest in the world at 110.01 million connections. The subscriber base has grown by 40% in 2005 and has reached the expectations of 250 million in 2007. Over the years, two out of every three new telephone connections are wireless. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber has grown to 2.5 million new subscribers every month from 2007.

The wireless subscriber base skyrocketed from 33.69 million in 2004 to 62.57 million in 2005. The wireless technologies currently in use in theIndian Telecom Industry is Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The industry presently has 9 GSM and 5 CDMA

operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country and the connectivity numbers are still growing for Indian Telecom Industry. Telecom Industry in India is regulated by the Telecom Regulatory Authority of India (TRAI). It has been able to earn a good reputation for its transparency and competence. Telecom Industry community has three types of players.

State owned companies like - BSNL and MTNL. Privately owned Indian companies like - Reliance Infocomm and Tata Teleservices.

Companies like - Hutchison-Essar, BPL Mobile, Bharti Tele-Ventures, Idea Cellular, Escotel Spice Communications, etc were done with foreign investments.

Indian Telecom Industry ' services is not only confined to basic telephone but also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches, etc. The Government Broadband Policy, aimed at 9 million broadband connections and 18 million internet connections in 2007. Telecom Industry today in India is expected to contribute nearly 1% to India's GDP which is heartening and estimated to grow further and brighten the Scenario of Indian Telecom Industry

Market capitalization

The Indian Telecom industry has been playing an important role in the world economy and global revenues in 2008 were USD 4 trillion, expected to grow at a steep 11% p.a. CAGR over the next 2 years. By 2013 almost half (~USD 1.7 trillion) of telecom revenues accrue from service revenue. Analysts believe that the revenue is expected to grow significantly to ~USD 2.7 trillion. Today 20% of the world population has access to the Internet. The telecom industry is vast and offers a wide range of career opportunities on both the hardware and software fronts. Opportunities in mobile telephony,

internet protocol media systems, wireless communications, GSM, GPRS and CDMA technology, VoIP, data networks and optical networks are amongst the others.

Size of the industry

The Indian Telecom had only 54.6 million telephone subscribers in 2003, the number increased to 429.7 million at the end of March 2009 and further to 562 million as on October 31, 2009 showing addition of 2.49 million during the period from March to December 2009.

The increase is entirely due to the spectacular increase in wireless connections at a compound annual growth rate (CAGR) of 60 % per annum since 2004. Presently India has one of the lowest tariffs in the world and is the fastest growing teIecom markets in the world. Indian telecom has become the second largest wireless network in the world with 525.1 million wireless connections. With supportive policies, broadband subscribers grew from 0.2 million in 2005 to 6.2 million by end-April 2009 and about to 7.98 million by end-December 2009.

Total contribution to the economy/ sales

As economic growth of India continues to be stable, 8% as the Indian customers continue to hold the currently under-penetrated mobile technology, as the regulatory policy continues to favor investment in the sector. India's telecom service revenue was ~USD 30 billion in 2008, and Ernst and Young analysts believe it is projected to almost double to ~USD 55 billion by 2012, thereby contributing over 6% to the GDP. The Indian Telecom industry is on the path of continuously increasing its productivity levels. As an Economic Times survey taken for 200 companies (arranged in terms of value of output) finds that the incremental capital output ratio (ICOR), that measures the output generating capacity of incremental capital, has improved from 0.62 in 2005-06 to 0.59 in

2006-07

Domestic and Export Share

The Indian Telecom Industry manufacturing contributes about two-thirds of the total exports of the country. It has been estimated that manufacturing exports would increase from US$ 40 billion in 2002 to US$ 300 billion in 2015, simultaneously increasing its share in world manufacturing trade from 0.8 % to

Top leading Companies

Civil Reliance Communications Limited Bharti Airtel Limited Bharat Sanchar Nigam Ltd. (BSNL) Mahanagar Telephone Nigam Ltd. Hutchison Essar Ericsson Nokia Siemens Communications Idea Cellular Limited Tata Teleservices

Employment opportunities

Several areer paths lead to the Indian Telecom Industry. The telecom sector offers a variety of career options where there is room for everyone a degree holder or a diploma holder, a candidate with a part-time certification course or one with a fulltime degree. The Certificate Courses for employment in the industry are: a. Certificate in Telecom Engineering. b. Certificate in Information Technology. c. Certificate in Computer Science. d. Certificate in Management Information Systems. e. Certificate in Computer Forensics. Minimum eligibility criteria is Physics, Math and chemistry Or Vocational course passed with minimum makrs from a recognized institution.

Latest developments

FDI of 74% is allowed subject to license granted by Department Of Telecommunication In Basic, Cellular, Paging and Value Added Service and Global Mobile Personal Communications by Satellite.

FDI up to 100% is allowed for dark fibre, electronic and voice mail. The condition set was that these companies would divest 26% of their equity in favor of Indian companies in five years, provided they were listed in other parts of the world.

FDI of 100% was allowed in telecom manufacturing. The new trend in the Indian Telecom Industry is the 3G or Third Generation technology which is a convergence of various Second Generation telecommunication systems. The technology is intended for Smartphones multimedia cell phones which consists of Video broadcasting and other ecommerce services such as, stock transactions and e-learning which will now be made possible much faster. It offers 3 Mbps speed for downloading, which is very high as compared to that of the 2G technology.

Mobile Number Portability is the service which allows any subscriber to change his service provider without changing his mobile phone number. The announcement of the guidelines has made telecom service providers to improve the quality of service to avoid losing subscribers.

Value added Services (VASs): Mobile VASs include text or SMS, menubased services, downloading of music or ring tones, mobile TV, videos,

streaming, and sophisticated m-commerce applications.

Manufacturing: The Indian telecom industry today manufactures a vast range of telecom equipment using state-of-the-art technology. Indian has become hub of many renowned telecom companies for even manufacturing bases in India. The production of telecom equipment has increased from US$ 9.09 billion during 2007-08 to US$ 10.75 billion during 2008-09

In R&D the favorable factors such as facilitative policies, large talent pool and low labour cost can provide an impetus to the telecom manufacturing industry in the country. Exports increased from US$ 88.61 million in 200203 to US$ 2.42 billion in 2008-09 accounting for 21 % of the equipment produced in the country.

Current issues

Airtel, Vodafone under TRAI scanner Two leading telecom firms, Bharti and Vodafone, have come under the scanner of regulator Trai for violating Mobile Number Portability (MNP) norms.

Trai had issued showcause notices to these firms seeking information based on complaints from subscribers that their requests for MNP have been rejected, sources in the know said. "We have received their (Airtel and Vodafone) replies and the same is under examination. After analyzing it we shall decide the next course of action," sources in the Trai said. Trai has investigated rejection of MNP requests by various service providers by sending a team of its officers to telecom operators' offices, they said, adding that the matter has been brought to the notice of the Telecom Ministry also. "The DoT may also take necessary action at their end," the source said. According to the data available with Trai, so far 893 MNP requested have been rejected by operators. The Telecom Regulatory Authority of India (Trai) had issued a directive to all cellular mobile telephone service providers and unified access providers on December 3, 2010, prohibiting charging extra for SMSes sent to '1900', the number for availing the MNP service. Regarding outstanding payments from subscribers availing the MNP service, Trai recommended that if the unpaid amount in the previous bill is less than Rs 10, the service provider may include the same in the subsequent bill of the subscriber without any penal charges.

In order to reduce the number of porting rejections by service providers, Trai had issued directions to the service providers on May 24, 2011, specifying that

rejection on the premise of contractual obligation can be done in case of post-paid connections with bundled handsets, or corporate connections, which have an exit clause that has not been complied with by subscribers.

Bharti Airtel has strong support at Rs 320: Sukhani

Airtel has strong support at Rs 320, says Sudarshan Sukhani of s2analytics.com. Sukhani told CNBC-TV18, " Jain Irrigation is now giving a sense of confusion. Last week I saw this is a good stock to buy; today it seems that maybe it's going to go through some short-term correction, so that short-term correction is an opportunity to go short, sell it and hope that it will be available at a lower price but the charts of Jain Irrigation are not very easy to analyse, they are creating a lot of puzzlement for me." He further added, "In Bharti Airtel I think it's probably a one day move, just like the Nifty moved one day for 100 points and then that stopped. So Bharti's move is almost similar to that, its probably not going to be part of a sustained upmove. But Bharti also has that strong support level at Rs 320 and like many other stocks it has bounced back from that Rs 320 level repeatedly. So if somebody wants to take a trade in Bharti that needs to be on the long side because we are already seeing support level hold."

Airtel, Vodafone, Idea threaten to exit 3G

New Delhi: Major telecom firms Airtel, Vodafone and Idea have threatened to exit 3G services if the Government does not approve their pact to provide intra-circle roaming.

Bharti Airtel Chairman Sunil Mittal, Idea Cellular Chairman Kumar Birla and Vodafone CEO Vittorio Colao have written a joint letter to the Prime Minister. In the letter, they said, "...in the event that 3G Intra-Circle Roaming (ICR) is now deemed impermissible, then, it would be a clear breach of our contract and the preauction confirmation given by the Government."

They want a refund of the 3G spectrum payments if intra-circle roaming is not allowed. The letter also asked for a refund of the auction payment with interest as well as compensation for all capital investments made in 3G. "In that eventuality, we request that our spectrum auction payments be refunded to us with interest (as) compensation for all the capital investment made by us," said the letter. The roaming pact between the three companies allowed them to provide 3G services in circles where they do not hold a licence. Telecom watchdog TRAI said this is a violation of the terms of the licence with serious financial implications for the Government. In the auction for 3G spectrum, held last year which had fetched over Rs 68,000 crore for the government, the operators had won certain circles. Later, they entered into roaming pacts with each other for circles in which they could not win the bid. The letter asks the Prime Minister to intervene in the matter. "We seek your most urgent intervention to ensure that contract and promises are

honoured, otherwise the reputation of an acclaimed, transparent auction, will be harmed irreparably," the trio said. Besides these players, others like Tatas and Aircel have also entered into similar agreements for various circles. "It may be noted that our licences were specifically amended in 2008 to incorporate the right to do Intra-Circle Roaming (ICR), without any caveat or restriction of technology and or spectrum," the trio said in the letter. Recently, the Law Ministry too had supported the DoT's view that such spectrumsharing agreements among service providers are in violation of licensing norms and conditions. "We are completely astonished to hear that the Government is now considering a reversal of its earlier stated position and seeking to question the legally or permissibility of 3G ICR arrangement. This tantamounts to reneging on the Government's promises ...and the confirmations provided before the 3G auction," it added. The DoT took up the issue after regulator TRAI had prima facie came to conclusion that such agreements are in violation of the terms and conditions of the telecom licences. However, defending the 3G roaming agreements between telecom operators, the GSM lobby Cellular Operators Association of India had said they did not violate the Unified Access Services Licence (UASL) under which service providers can offer all services

Add Bharti Airtel in your portfolio, says Jajoo

Vishal Jajoo, Sr. Equity Research Analyst, Nirmal Bang feels that investors can add Bharti Airtel in their portfolio. Jajoo told CNBC-TV18, "Bharti Airtel as far as the share price goes there were lot of concerns because on account of these debt which it had taken for the Zen acquisition. So there was a concern with regard to the MTM losses but with the appreciation of the rupee over the last two months those concerns are behind us." He further added, "If one looks at the financials then in their quarterly results which was not something out of the blue that was expected because it was the 8th consecutive result wherein there was a year on year decline. But the point that comes is that this stock has not participated in the rally, it has come clean as far as the corporate governance goes which can be gauged from the fact that is one of the handfuls of companies or the only company wherein there was no issues with regards to the cancellation of licenses." "Going forward peoples or investors should be looking at these companies when the corporate governance is very much there in place, this has come clean and therefore Bharti Airtel is a stock that one should be definitely having it in the portfolio and this is got a potential of generating good yields for its investors."

Airtel brings service tax operations under one roof

New Delhi, Nov 6 (IANS) Telecom service provider Bharti Airtel Friday launched a centre where functions relating to human resource, supply chain, finance and service taxes would be undertaken under one roof.

The unit, Centre for Shared Services for Taxation, was inaugurated by Central Board of Excise and Customs chairman V. Sridhar.

'The shared services initiative is part of an overall transformation programme undertaken by us to improve the efficiency, speed and quality of service,' said Bharti Airtel chief executive and joint managing director Manoj Kohli.

'The shared services will deliver all taxation compliances, and also prepare the company for the new GST (goods and services tax) regime which is expected in 2010,' Kohli added.

CHAPTER 4

Sources of Finance

Ratio Analysis Any 5 Net Profit/ Balance sheet (from annual report) -Analyse

INDIAN INDUSTRIES Alphabetical List of Industries Enivornmental List of Industries Sectoral List of Industries Submit your press release

Last Price

Market Cap. Sales (Rs. cr.) Turnover 129,229.95 32,956.10 17,647.43 6,423.90 2,788.88 1,779.75 1,344.15 39.51 13.13 38,015.80 15,389.00 11,989.19 3,409.00 3,128.24 3,841.21 2,350.66 68.46 256.83

Net Profit

Total Assets 56,009.10 22,888.18 79,597.22 9,222.46 4,036.17 14,102.17 2,971.38 129.28 551.22

Bharti Airtel Idea Cellular Reliance Comm Tata Comm

340.30 99.60 85.50 225.40

7,716.90 844.60 -757.99 160.16 49.90 -2,826.95 309.54 3.27 12.19

TataTeleservice 14.70 MTNL 28.25

Tulip Telecom 92.70 Goldstone Infra 10.95 Nu Tek India 0.85

Products of Company

Bharti Airtel, IFFCO forms company to market products in rural TNBharti Airtel in association with Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has formed a company IFFCO Kisan Sanchar Limited (IKSL) to market its products in rural Tamil Nadu. For Bharti immediate customers would be around 67 lakh farmers who are associated with IFFCO in Tamil Nadu. Speaking to reporters in Chennai today Rajiv Rajgopal, chief operating officer, Mobile Services, Bharati Airtel, Tamil Nadu said that the new campaign called "Grameen Mobile Puratchi" will help the company to penetrate into the remotest regions in the state. It will also add value to the farmers by empowering them through first hand information on mandi prices, farming techniques, weather forecasts, dairy farming, animal husbandry, rural health initiatives and fertilizer availability at their mobile on a daily basis.

In addition farmers can also call a dedicated helpline to get expert opinions from the above mentioned fields.

Airtels product and brand retention ads

April 8, 2007 by Dinesh T.U. Companies spend crores every month in the name of advertisements, while radio happens to be the cheapest means of mass communication, the most widely preferred television commercials are the costliest. Advertisements either induce the customer to go for the product immediately or help retaining the brand name in the customers mind which would help in taking decision when a time comes to choose the product.

Airtel is amazing when it comes to ads. Airtel advertises more on its brand and its values than its products and services. Most ads just establish the value and beliefs of Airtel than establishing its services like mobile telephony or broadband. This is one of Airtels best ad which can make the audience sit back and watch it. The background score by A.R.Rahman adds oil to the fire.

Anirban Ghosh, chief operating officer Mobile services, Bharti Airtel, Tamil Nadu said that currently in Tamil Nadu there are about 27 million mobile users, of which only 7 million are from rural Tamil Nadu, still there is a big market to tap. This initiative will help the company to penetrate in faster and efficient way. The strategic alliance will enable Airtel to install its cell sites in locations provided by IFFCO with its outlets serving as service facility for distributing SIM cards and recharge cards, he added. A Jinnah, state manager IKSL, said that with farmers being stakeholders in IFFCO, which has 4,500 societies in Tamil Nadu, this campaign will not only increase the telecom penetration in the rural areas, but it will also generate income for the society members. A group of 4 to 5 society can earn minimum Rs 25,000 to Rs 30,000 by selling Airtel coupons, said Jinnah. And now Airtel is in talks with railways to buy train name space, if it clicks, we might have an Airtel Bangalore Superfast Express or an Airtel Coimbatore Intercity ! Companies sure does spend money in crores just for brand retention. And buying a train name space is simply superb, Airtel would become a household name, something like Pepsi Uma. But again the recent Airtel ad for its mobile telephony service where the guy comes all the way to an isolated village to meet his grandparents is a let down. The grandparents appear angry because their son never came to meet them for the past 25 years and now his look alike who happens to be his son comes to the village. He has an Airtel mobile and makes his dad and grand dad speak to each other. God !!! The grand dad who was angry till a few minutes back immediately cools down and starts weeping. His son never bothered to come and meet them for 25 years and now speaks over the phone and the bonding grippens. Cha, is there any kind of

emotion attached ? It might make the old man happy but the actual bonding and affection is nowhere seen in the son. Airtel has been instrumental with their marketing strategies right from the start. Infact, recently in the recent issue of 4Ps magazine, Airtel was named to have to most brand awareness in India.

source: 4Ps Magazine Be it the print media or the the Idiot Box, Airtel is right up there when it comes to generating buzz and showcasing its product in the best way there is. But with the telecom space heating up and the customer having a plethora of choices, how could Airtel ensure a dedicated un-wavering focus of the customer from their product?

One probable solution- Do not leave any space for the competitor to showcase its product ! This might seem insane to implement at first, but this is exactly what Airtel has managed to do. In July, Airtel logos adorned the walls of an existing mall in Hyderabad , RK Cineplex.

What was unique is the fact that there were no other brand logos fighting for real estate space. Infact, even the name of the mall was changed to Airtel RK Cineplex. This gave to what is the countrys first branded mall. Take that for garnering the maximum eyeballs! The details of the deal are too few but according to the statement by Manoj Kohli, CEO in the BT article, this is a well thought out strategic move to increase its visibility among the masses. As for the mall owner, this sure looks like a sweet deal. There are no details on how much Airtel would have coughed up for this exclusive deal, but I am sure that the money would have been more than enough given the dire straits the existing malls are in. But, is this exercise by Airtel worth its money and can it deliver enough returns? The idea is rather new so it is difficult to gauge the ROI based on existing examples.

A few good things for Airtel,

Airtel gets to brand all the common areas in the mall. No chance of the product going unnoticed.

One stop shop for all Airtel products be it the mobile, broadband and digital TV. It will make life easier for a brand Shopper.

Clear tracking on the returns of the marketing campaign. Can help them gauge what kind of promotion/display are working since there are no other players.

Coupled with its diversified product range bundled with varied pricing, it might be able to attract all kinds of mall visitors into their product

However there also seems to be other side of the coin, atleast thats what I feel, here is what I think:

The exclusivity price that Airtel pays is going to be dependent on footfalls among other things. People in general prefer malls for the options they provide. Moreover, malls are always ripe for tempting discounts that are offered. So, when people come to malls, there is a certain tendency to look out for the "best bang for the buck".

But with the Airtel branding strewn all around, thats all the customer is going to notice. Dont you think that could be a deterrent of sorts which could in fact lead to a decrease in footfalls. An Airtel product according to me would never attract one of the biggest shoppers segment (KIDS). Indirectly, they are the ones whose eyeballs convert to sales on most counts given the product is visually simulating to them. I have my doubts if a BlackBerry banner would catch a kids attention. Now, it is no brainer that a number of kids drive their parents to malls and even families prefer malls for the reason that there is something for everyone.But, if all the kid sees is Airtel around, would he be willing to go to the mall again. Now, thats just one hypothetical example which could lead to a drop in the revenue that the mall is going to make from the Airtel single branding. Even with a relatively generic audience, a single brand exhibit does not seem like a crowd puller. Moreover, with the brand Airtel showcased in bold, will the other vendors feel a little at loss setting shops in the mall. The idea of a branded mall seems quite unique and interesting, but is the Indian Consumer ready for it? What do you think? Do you think a branded mall is an outright winner for both the brand and the mall owner or is it otherwise? [This post is written by Ankit Agarwal, an ERP Consultant by profession, a wannabe entrepreneur and stock market stalker by passion]

Sources of Finance

Bharti eyes debt financing for Zain Africa buy - sources

Reuters) - Bharti Airtel, which has offered $10.7 billion for Kuwaiti telecom Zain's African assets, is likely to finance the majority of the deal's purchase price with foreign currency loans, three people familiar with the matter said. Zain, which is selling its telecoms operations in 15 African countries to Bharti, said on Tuesday the deal included $10 billion to be paid at completion and the remaining $700 million by the end of the year. Separately, the NDTV Profit television channel said Bharti was considering a rights issue to help fund the deal. However, at the time of its ultimately thwarted merger talks with South Africa's MTN Group last year, Bharti had said there was no plan for any rights issue. A Bharti Airtel spokesman declined to comment on Tuesday on how the firm would fund the deal. Standard Chartered and Barclays are advising Bharti Airtel on the merger and its funding, one of the sources told Reuters. One source said StanChart was looking to lead roughly $5 billion of borrowing for Bharti, and added funding could include bridge loans and other debt issuances. Borrowing conditions have improved since Bharti secured loan commitments of $5 billion for its failed deal with MTN. Standard Chartered and Barclays had led that planned loan, with Standard Chartered underwriting a part of it. Separately, television channel ET Now said Bharti has also sounded out the country's top lender, State Bank of India, and foreign banks Goldman Sachs and Nomura, in addition to StanChart and Barclays, on funding the Zain deal.

State Bank of India had agreed to provide $2 billion in loans to Bharti during its tie-up talks with MTN.

Bharti has a low debt-equity ratio, but concerns that a huge debt burden for the Zain deal could stretch its balance sheet has weighed on its shares. Bharti stock fell 4.5 percent on Tuesday, after dropping 9.2 percent in the previous session. It was the second-worst performing stock among the benchmark index components last year. BNP Paribas Securities on Tuesday cut its rating on Bharti shares to "hold" from "buy". "We believe deal will be dilutive and significant execution risks persist," analysts Sameer Naringrekar and Kunal Vora said in a note.

Bharti Airtel - Financial Analysis

Corporate Finance ProjectFINACIAL ANALYSIS TELECOM SECTORTelecom SectorThe Indian Telecommunications network with 110.01

million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the totaltelephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications(GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the countryCompany Profile Bharti AirtelBharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest and world's third largest cellular service provider with more than 82 million subscribers as of December 2008.

Balance Sheet of Bharti Airtel

------------------- in Rs. Cr. ------------------Mar '09 12 mths Mar '08 12 mths Mar '07 12 mths

Mar '11 Mar '10 12 mths 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1,898.80 1,898.77 1,898.80 1,898.77 278.60 0.00 186.09 0.00

1,898.24 1,898.24 116.22 0.00 25,627.38 2.13 27,643.97 51.73 7,661.92 7,713.65 35,357.62 Mar '09 12 mths

1,897.91 1,895.93 1,897.91 1,895.93 57.63 0.00 30.00 0.00

41,932.1034,650.19 2.10 2.13

18,283.82 9,515.21 2.13 2.13

44,111.6036,737.18 17.10 39.43

20,241.49 11,443.27 52.42 266.45

11,880.404,999.49 11,897.505,038.92 56,009.1041,776.10 Mar '11 Mar '10 12 mths 12 mths

6,517.92 5,044.36 6,570.34 5,310.81 26,811.83 16,754.08 Mar '08 12 mths Mar '07 12 mths

Application Of Funds Gross Block 61,437.5044,212.53 37,266.70 12,253.34 25,013.36 2,566.67 11,777.76 62.15 2,550.05 153.44 2,765.64 5,602.83 2,098.16 10,466.63 0.00 13,832.49 634.40 14,466.89 -4,000.26 0.09 28,115.65 26,509.93 9,085.00 7,204.30 19,030.65 19,305.63 2,751.08 2,375.82 10,952.85 705.82 56.86 47.81

Less: Accum. Depreciation 20,736.7016,187.56 Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Loans & 40,700.8028,024.97 6,497.60 1,594.74 11,813.0015,773.32 34.40 27.24

2,375.80 2,104.98 126.60 54.89

2,776.46 1,418.52 200.86 239.11

2,536.80 2,187.11 11,186.107,072.42 7.20 761.86

3,034.18 1,705.44 5,103.13 3,160.02 302.08 541.35

13,730.1010,021.39 0.00 0.00

8,439.39 5,406.81 0.00 0.00

16,104.8012,979.55 627.60 658.75

12,400.38 9,809.83 1,961.95 1,232.84 14,362.33 11,042.67 -5,922.94 -5,635.86 0.20 2.66

16,732.4013,638.30 -3,002.30 -3,616.91 0.00 0.00

Total Assets Contingent Liabilities Book Value (Rs)

56,009.1041,776.12 49,771.403,921.50 115.42 96.24

35,357.62 4,104.25 145.01

26,811.84 16,754.07 7,140.59 7,615.04 106.34 60.19

ORGANISATIONAL LEADERSHIP
If leadership in organizations really isnt an individual characteristic, then what is it, and what does it do? Its all well and good to argue that weve had it wrong all these years about how organizations are best led; its even entertaining to see the self-involved and self-congratulatory individual leader hauled over the coals for a

change. But when we refocus on the issue after absorbing these ideas, there they remain: organizations. And the question remains, as well: how are they to be led? To begin with, the concept of organizational leadership, as described here, is not entirely new. For almost a century, various observers have glimpsed the selforganizing characteristics of groups, and their natural tendency, more or less of their own accord, to design and direct their own affairs. More than that, there have also been suggestions in the literature that leadership and authority are to be viewed as distinctly separate phenomena. A self-organizing better, a self-leading group may sound terrific. But if youre an owner, youre likely to have some valid reservations about surrendering the fate of your investment and goals to that process. You will want, directly or through the medium of professional executive management, to direct and control the operation of that process. This is accomplished through placing a distinct and separate authority at the top of the organization, in order to manage the otherwise selfdirecting leadership that exists naturally within it. That authority at the top is not leadership as commonly understood. Rather, it is command. It gives legitimate expression to the superior role of management over the inferior function of leadership. On the other hand, organizational leadership, as described in Managing Leadership, is inherent in the very nature of the organization. It arises from the peculiar relationships that form among people joined together in a collaborative effort. As such, it takes on an identity of its own, existing in these relationships, rather than merely in the individuals who enter into them. Thus, it both influences, and is

influenced by, those individuals. It communicates their organizational impressions and needs throughout the organization. In an intelligently managed organization, that leadership isnt a randomly operating process; its a propulsive force given motion by purpose, and by a joint effort to accomplish it. That is its natural tendency, its bias. But it is managements role to ensure that this organizational leadership has a substantive and meaningful core around which to form itself and to give it traction for advancing the organization toward its stated ends. Using these as a basis, organizational leadership can provide the functions of leadership to an organizationally beneficial degree that cannot be matched by individual charismatic leaders alone. It is also far more reliably focused on the organizations ability to accomplish its own purposes and ensure its own sustainability (rather than resulting in the perversion of those to the interests of senior executive leaders).

GROWTH SHARE

Idea Cellular's food category showed 42 percent growth in Q3

The Board of Directors of Idea Cellular India Ltd announced the unaudited financial results of the company for the third quarter and nine-month period ended December 31, 2010.

The foods category for Idea Cellular reported a near 42 percent growth during the third quarter. Idea Cellular Chyawanprash, riding on a high-decibel consumer contact programme and introduction of new fruit flavoured variants, saw its market share jump to 70% at the end of the third quarter. The quarter also marked Idea Cellular's entry into the Vitamins, Minerals & Supplements category with the launch of Idea Cellular NUTRiGO Daily Health Supplement for Men and Women. Idea Cellulars Hair Oils business rose 12.4 percent, while the Digestives category grew 11.3 percent.

Strong volume-driven growth in key categories such as health supplements, foods, toothpaste, home care & digestives coupled with stringent cost-saving initiatives helped Idea Cellular India Ltd mitigate the impact of rising input costs to end the third quarter of 2010-11 financial year with a near 12 percent surge in consolidated net profit to Rs 154.05 crore. Net Profit for the same quarter of the previous fiscal stood at Rs 137.76 crore. The companys consolidated gross sale for the third quarter this year marked a 16.7 percent growth to Rs 1087.80 crore as against Rs 932.27 crore a year ago. Despite the Inflationary pressures, we have managed our business dynamically through a combination of judicious price increases and greater focus on cost efficiency. As a result, our EBIDTA rose by 19.8 percent during the quarter. Going forward too, we will continue to focus on delivering profitable growth, said Idea Cellular India Ltd Chief Executive Officer, Sunil Duggal.

GROWTH RATE OF IDEA CELLULAR

Idea Cellular expects Rs 100 cr from north Idea Cellular is expecting to increase its revenue at least by Rs 100 crore from the northern region in the current financial year.

Describing the companys success in this region, Adarsh Sharma, general manager (sales, north), Idea Cellular India, said the company had done a business of Rs 80 crore in the last financial year in the northern states including Punjab, Haryana, Jammu & Kashmir, and Himachal Pradesh, adding that this year an increase of at least Rs 100 crore with a growth rate of more than 100 per cent was expected.

Idea Cellular India Ltd, which recently re-launched its Odomos brand in the region, is eyeing a growth rate of at least 30 per cent from this product in the country.

Sharma said Odomos had a remarkable record in the past. It had earned Rs 30 crore in the last financial year and the company had a huge share in the market of mosquito repellents 96 per cent.

Our company is positive about the re-launch of Odomos. We hope it meets the expectations of customers in Punjab and Haryana. These two markets constitute 17 per cent of our countrywide sales, he added.

SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT ANALYSIS.

The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environment scan:

SWOT ANALYSIS FRAMEWORK

Environmental Scan

EEE
Internal Analysis External Analysis

Strengths

Weaknesses Opportunities Threats

Analysis Bharti Airtel SWOT Strengths

Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business

has access to knowledge and technology from other parts of the telecommunications world. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

Weaknesses
An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the startup business had to outsource to industry experts in the field. Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.

Opportunities
The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

 Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

Threats
Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's

MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. Airtel comes to you from Bharti Airtel Limited, India's largest integrated 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 products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Servic

Sales of cellular companies in India (2011):-

Sales in Crore
9040

2818

3031 1085 330 Spice

Idea

Airtel

Reliance

MTNL

Gross Profit cellular companies in India (Jun 09):-

Profit In Crore
4032 2620

715 123 Idea Airtel MTNL Reliance 28 Spice

Classification of Telecommunication services 1. Basic services 2. Cellular services 3. Internet Service Pr 4. OBSERVATION & FINDINGS

 55% of the people use only mobile, and 40% of respondents use both the services & only 5% people use the telephone service. It shows the popularity of cellular phone services.

34% of customers are using the idea services, which is the highest percentage of users of cellular phone. Airtel takes 2 nd place in Gwalior with 28% of users. Then comes reliance and BSNL, and Idea indicom having least customers in the Bhopal. Prepaid service is most popular in the cellular services with 95% of customers. The remained uses postpaid services. In current situation 73% of customers are using lifetime plans, where the rest are using general plan of the cellular companies. 64% of customers are satisfied with the call rates of the lifetime plans; it is because telecom companies have slashed their call rates few months ago. Still in this situation 36% of customers did not satisfy with the call rates which service they are using. 78% of customer satisfied with the lifetime plans of cellular companies, and which are not satisfy with the service they are mostly BSNL and IDEA indicom users.

 Most of the people are using lifetime services because of money savings with the percentage of 48. Where 29% of people like this service because of the facilities provided by the operators. And 23% of people are using this service because of incoming only.

Political Taxation policy Environmental protection laws Employment laws Economical Inflation Employment Disposable income Business cycles Energy availability and cost Social Demographics Distribution of income Social mobility Lifestyle changes Consumerism

 Levels of education

Technology New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Business cycles Energy availability and cost

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental analysts scanning component and of strategic the management. mnemonic Some to

added Legal

rearranged

SLEPT;[1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics

and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the

21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and

Regulatory factors.

Political
factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such astax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads).

Economic
factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

Social
factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and

how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

Technological

factors include technological aspects such as R&D activity, automation, technology incentives and the rate oftechnological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

Environmental

factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Porters five forces model of competition

Porters Five Forces Model is one of the most popular frameworks in management. This framework is widely used across management disciplines specially so in case of Strategy and Marketing. . This is one model that has brought strategic management in the heart of management agenda. Porters Five Forces Model helps analyze competitive scenario in an industry. This framework helps determine industry profitability and can be used as one of the inputs while deciding to enter an industry. This famous framework was contributed by Michael E. Porter. The basic framework is as shown in the diagram below.

So, the five forces that determine the industry profitability as per this framework are: Threat of New Entry, Buyer Power, Supplier Power, Threat of Substitution and Competitive Rivalry.

There are various parameters which can be used to determine the nature of these forces. Each of the force is classified as low, medium or high depending on the nature of those parameters. The parameters used to measure nature of the forces are described in below diagram.

Ideal scenario to enter an industry is: Entry Barrier=High, Buyer Power=Low, Supplier Power=Low, Threat of Substitution=Low and Competitive

Rivalry=Low to medium. Current players try to build high entry barriers to prohibit new comers from entering. Examples of high entry barrier strong distribution channel of ITC in the Cigarette industry. Example of low Supplier Power HUL getting long credit periods from suppliers

Promotion the 4ps of Marketing

1 )The right PRODUCT 2) Sold at the right PRICE 3) In the right PLACE 4) Using the most suitable PROMOTION that the goods arrive when and where they are wanted is an important operation.To create the right marketing mix, businesses have to meet the following conditions: The Product: The product has to have the right features - for example, it must look good and work well. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sureThe target group needs to be made aware of the existence and availability of the product through promotion.

Successful promotion helps a firm to spread costs over a larger output.

For example, a company like Kellogg's is constantly developing new breakfast cereals the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains. The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the customer. Marketing therefore plays a key role in determining such aspects as:

The appearance of the product - in line with the requirements of the market The function of the product - products must address the needs of customers as identified through market research. The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan.

The price Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organisation's pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert.

The place Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety ofcircumstances. It will be more convenient for some manufacturers tosell to wholesalers who then

sell to retailers, while others will prefer to sell directly to retailers or customers.Promotion is the business of business activities

The promotion communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.

STP ANALYSIS OF THE COMPANY

Segmentation

Airtel has segmented its customer in the following ways: Understanding needs and preferences of consumers Grouping customers based on their needs and preferences -- Customers with similar needs and preferences are included in this segment. Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of which it can meet the needs and preferences. I.e. customer needs higher- strength or low price. Branding the commodity -- Though being a commodity product, branding is important for a company. Provide required product to meet targeted customers' needs and preferences -Delivering up to the expectations of the targeted segment.

Targeting Its customer base represents the masses of India. The company targets on the important sources like shops in the country It targets the competitive companies like P&G. It Targets all Indian customers & communities. It targets an individual (Retail Marketing)

Positioning A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product.

BIBLIOGRAPHY Books: Philip Kotler, marketing management prentice Hall of India Pvt. Ltd. New Dehli. C. R. Kothari Research methodology, vishwa publication, New Delhi. Saxena Rajan marketing management Idea McGraw-hill publication Co. Ltd. New Delhi. H. V. Verma marketing of services Global business press, New Delhi. Business today magazine of February issue, 2008.

www.trai.gov.in http://www.Airtel/t-aboutus-ttsl-organization.aspx http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home .jsp

http://www Airtel.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea http://www.scribd.co.in/about.htm http://www.google.co.in/service/tariff_excel_pre.htm http://www.wikipedia.in/trai/upload/PressReleases/15/pr16jan06.pdf