A PROJECT REPORT ON

A STUDY ON RETAILERS PERCEPTION WITH SPECIAL REFERENCE TO AIRCEL SERVICES IN AIRCEL LIMITED
UNDERTAKEN AT:

SUBMITTED BY:

AMIT SHARMA
GUIDED BY:

RAHUL MALHOTRA POST GRADUATION PROGRAMME ISBE(A) (FALL WINTER 2010-12) SECTION- FD-1 STUDENT IDD1012FWISBEA-10138-(NOI-2A-NA-2057)

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

Aircel Limited A-44, Mohan Cooperative Industrial Estate (MCIE), Mathura Road, New Delhi-110044 Phone No. : 011 26990095 Fax No. : 011 26990095 E-mail: care.delhi@aircel.co.in

TO WHOM SO EVER IT MAY CONCERN

This is to certify that AMIT SHARMA, Student of Post Graduation Program, IIPM New Delhi, has successfully completed his training from 16th June to 12th August with us and the project report on STUDY ON RETAILERS PERCEPTION WITH SPECIAL REFERENCE TO AIRCEL SERVICES IN is an original study done by him under my guidance.

Rahul Mahotra

DECLARATION
I hereby declare that this project report entitled A study on Retailers perception with special reference to Aircel services in Aircel limited New Delhi, is a bonafide record of work done by me during the course of summer internship project work of PGP program and all contents and facts are prepared and presented by me without any bias.

Amit Sharma

ACKNOWLEDGEMENT
To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way. I find words inadequate to express my gratitude to Mr. Rahul Malhotra for providing me an opportunity to carry out my Project as such a well reputed and leading Cellular company Aircel Cellular.

At the very outset of the training I deem it is my pious duty to express my sincere thanks also to companys Gujarat Head Mr. Dharmesh Patel for his continuous guidance and supervision and support during the project.

I would like to thank MR. Rahul Malhotra, who has guided me for my project work and provided encouragement through out my training period. This study could not have been successful without the valuable input of the customer of Nirmal Bang.

Table of contents
S.no Topic 1. EXECUTIVE SUMMARY 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. INTRODUCTION RESEARCH OBJECTIVES METHODOLOGY & Page No. 5 6 7-10 11-21 22-44 45-55 56-68 69 70 70 71

BODY OF THE REPORT - SECTOR OVERVIEW COMPANY DETAILS PRIMARY FINDINGS INTERNSHIP ACTIVITIES ASSESSMENT OF THE INTERNSHIP Conclusion Recommendations ILLUSTRATION & ANNEXURE BIBLIOGRAPHY EXECUTIVE SUMMARY

The 60 days Summer Internship Project is designed to undergo the rigor of professional environment both in form and substance. It provides platform to take up the training and to develop the network which will be useful in enhancing my career prospects.

The company for which I have done my project is Aircel Limited. The Aircel group is a joint venture between maxis communication Berhad of Malaysia and Apollo hospital enterprise ltd of India, wit maxis communication holding a majority stakes of 74%. The main aim of this project was to do the Survey of Market & Retailers of Aircel in New Delhi. The project was to collect the feedback from the retailers with the help of questionnaires. This research work comprises of the data of retail outlets in the New Delhi and the questionnaire was carried out to record the data. The data from the various outlets was collected and it was recorded. Then, based on the collected data on Aircel services and their products are recorded and analyzed for company market value & performance.

INTRODUCTION
Whenever we talk of growth and development of a nation, hardly can there be anyone who can ignore the vital contribution of Telecommunication sector. Today it has become a lifeline for us, in the absence of which we feel we are separated from the world at large. The importance of telecommunication product and service has gone deep in the life of people that after three essentials

of human being i.e. food, shelter and clothing the fourth one that can be added comfortably is the communication. A gadget and a service which can be found in everyones palm ranging from rickshaw-puller to big businessmen. Now talking of India, which is still a developing country, the importance of telecommunication as a sector can be very well understood. Indian telecom sector has been doing exceptionally well in the past decade. Its structural and institutional reforms have provided tremendous growth opportunity to his sector. India has nearly 250 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. And in this context whenever we talk of mobile telephony, Aircel as a brand must be taken in to account. Nowadays there is lot of competition between different telecom operators who in order to add more subscriber base to the existing figures comes out with attractive customer schemes and virtually there is a tug of war between operators to get more market share. But in this fierce competitive war to get more subscriber base, many a times the Retailers who play a vital role in the whole chain of sales and who influence customers for a service provider are sometimes ignored. So from this study an attempt has been made to understand the psychology, behavior, perception and satisfaction at the Retailer level. In this competitive market for a service provider to get an edge over other operator, in addition to other prevailing factors a operator must clearly understand the behavior, perception and satisfaction level of Retailers, which will help them to design effective strategies to get more sales and increase subscriber base. The study delves into how the Retailer perception and their expectation level from a particular service provider and how it can be effectively managed.

LEARNING/WORKING TILL DATE:

1. Understand the awareness of the retailers towards the customers requirement of Aircel. 2. Analyze, the customers preferences of the services provided by Aircel from the perspective of retailers. 3. Understand the features and plans offered by preferred Aircel services in comparison other services.

4.

Understand the performance of Aircel activation with reference to the services provided.

RESEARCH METHDOLOGY
Research Objective : 1. To understand retailers perception in telecom sector. 2. To study services providers & their services quality in the telecom sector. 3. To study retailers satisfaction & understand the current scenario in telecom sector. Sampling size : 60

Sampling frame Sampling method Constraints Data

: : : :

New Delhi, Andhra Pradesh Stratified random sampling. Time, number of respondent. Primary and secondary data through personal Meetings

Research Approach : Survey Type of Questions : :

Survey method Questionnaire Unstructured

Methodology is an essential aspect of any project or research. It enable the researches look at the problem in a systematically, meaningful and orderly way. Methodology comprises the source of data, selection of data, various design and techniques used for analyzing the data.

Research design:It is purely and simply the frame work or blue print of a study that helps to collect and analyze the data. The research design undertaken in this study is exploratory in nature, i.e. to discover the future opportunities.

Data Collection method: The primary data are collected through survey method is undertaken to find the retailers satisfaction and opinion. A survey was conducted among the retailers of New Delhi city by the aid of unstructured questionnaire. The population of the study consists of retailers who are providing or selling Aircel product services. The sampling unit for the study is 60, which includes the retailers in New Delhi city.

 The sampling size was restricted to 60 for want of time. Here convenient sampling techniques have been adopted for collecting the primary data. The no. of question were about 7-9 questions. It included question regarding the retailers opinion towards company services. Secondary data was collected from the company website about the company. Secondary data from internet and from magazines were useful.

Statistical data method: For analyzing the data, statistical tables, and test were used.

LIMITATIONS OF THE STUDY

1. The sample size of data was limited and collected up to sample size of 60. 2. The analysis is completely based upon the retailers answers because of which there may be some bias. 3. There were also a few non-respondents.

4. The location of the survey was only limited to New Delhi. 5. The time period was a restriction.

Industry Profile
OVERVIEW OF INDIAN TELECOM INDUSTRIES
Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers.

 The Indian telecom sector can be broadly classified into Fixed Line Telephony and mobile telephony. The major players of the telecom sector are experiencing a fierce competition in both the segments. The major players like BSNL, MTNL, VSNL in the fixed line and Airtel, Aircel, Hutch, Idea, Tata, Reliance in the mobile segment are coming up with new tariffs and discount schemes to gain the competitive advantage. The Public Players and the Private Players share the fixed line and the mobile segments. Currently the Public Players have more than 70% of the market share.

India
o o

India has a 700 million people living in 638,000 villages per-capita income of $ 0.40 per day) As per DoT statistics 500,000 villages have telephone access.

Divided into 22 circles 4 metros 19 circles Further divided into A, B and C category based on economic parameters and revenue potential Each circle has a licenses Four operators per circle are allowed Licenses are saleable

HISTORY OF TELECOMMUNICATION IN INDIA

In 1880, two telephone companies namely The Oriental Telephone Company Limited and The Anglo-Indian Telephone Company Limited approached the Government of India with the objective of establishing Telephone Exchanges across the country. Initially, the Government denied the permission as it wanted to exercise its monopoly power over the promising industry once it emerged. By the following year, it changed its decision and finally on 28 th January,1882, license was granted to The Oriental Telephone Company Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai and Ahmedabad.

The opening of exchanges was followed by further innovations and improvements in all sections of the telecom industry . However, while telephones were introduced in the major towns and cities across the country during the British period, total number of telephones in India in 1948 was merely 80,000. The growth was negligible even after independence and the telephone was used as a status symbol by the rich despite being an extremely essential device of public utility. This sluggish rate of growth continued till 1991 when the number of telephones was 5.07 million. The period post 1975 saw an resurgence in the India Telecom Market by virtue of a series of fruitful decisions initiated by the Government which included:

The separation of Department of Telecom (DoT) from Post and Telegraph (P&T) in 1975. The formation of Mahanagar Telephone Nigam Limited (MTNL) out of DoT to provide telecom services exclusively to Delhi and Mumbai. In the 1990s, the telecom sector was opened up by the Government for private investment as a part of Liberalization-Privatization-Globalization Policy. On 1 st October, 2000, the Government corporatized its operations wing under the name of Bharat Sanchar Nigam Limited (BSNL).

India's Telecom Market

Mobile services were commercially launched in India in August, 1995. Although in the initial years, the high prices of handsets and allied services hindered the growth of the telecom market in India, the New Telecom Policy in 1999 introduced several consumer-friendly initiatives. The entry of private operators like Airtel, Hutch, Reliance, Tata, BPL, Idea etc. created a competitive market which further reduced operational costs. Since then, the number of mobile subscribers began to rise in leaps and bounds. The number of new mobile subscribers rose from 16 million in 2003 to 65 million in 2006. With 156.31 million subscribers across the country, India has become one of the fastest growing mobile markets in the world. Truly, the growth of India's mobile market has surpassed that of the basic telephones by a huge margin. Nevertheless it is the Indian Telecom Market which is having the last laugh. The telecom network in India is the fifth largest network in the world meeting up with global standards. Presently, the Indian telecom industry is currently slated to anestimated contribution of nearly 1% to Indias GDP. The 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. 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 total telephone 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 country.

TELECOMMUNICATION REFORMS IN INDIA

Telecommunication Reforms in India revolutionized the telecom industries sector in India, which is an important factor for the growth of the Indian telecom sector and in turn helped the Indian economy to perform well for the past few years. The Telecommunication reforms in India were development and growth oriented. Technological advancements and innovations contributed largely towards the reformation of the telecom sector in India. The sector of telecom was a monopoly under the Central Government of India. During the 1990s this sector faced fierce challenges due to the development in the technological sector. The sector was privatized and with the abolition of the monopoly new player entered the consumer market. The competition increased in the telecom sector, the rates were slashed in order to grab the share of the market and the customers were provided with better services. The telecommunication reforms in India started in the eighties with the mission better communication. This is regarded as the first phase of the reformation process. Several private manufacturers of tailor made equipments entered the market. There were private developer for indigenous technologies and the franchisee for STD/ISD and PCO increased. The Videsh Sanchar Nigam Limited (VSNL) and Mahanagar Telephone Nigam Limited (MTNL) were set up under the Government of India's Department of Telecommunication. The second phase of telecommunication reforms in India came in the early nineties. The introduction of the New Economic Policy (NEP) in the year 1991 was a landmark in the history of telecom industry sector in India. The manufacturing of equipments pertaining to telecom sector was decentralized and several value added services were introduced into the market. The telecom services were divided into basic telephony, radio paging and cellular mobile The TRAI was established an independent regulatory body pertaining to telecom sector. The growth of the private sector increased. The third phase of the telecommunication reforms in India took place in the period of the late nineties. The government of India introduced the New Telecom Policy 1999. The TRAI was endowed with more power. The concept of revenue sharing was introduced to replace the fixed license fee. The National Long Distance was introduced with free entrance. Moreover, there was introduction of International Long Distance schemes. The Bharat Sanchar Nigam Limited (BSNL), a corporate body of the telecom service sector was formed, followed by the introduction of the Internet to the Indian market. Impact of Telecommunication Reforms in India

The rates of the National Long Distance were cut down by 60% The prices of the hand sets and telephone equipments were reduced

The charges on calls were reduced by 8 times The introduction of the cellular mobile phone The bandwidth availability was increased

GROWTH OF TELECOM INDUSTRY

The telecom industry is growing at a great pace and the growth rate is expected to double with every passing year. There are many new developments in the telecomm sector, including the ingress of 3G technology that the Indian market is witnessing at present. In 2005-2006, the telecom industry witnessed a growth of 21% with a total revenue of Rs. 86,720 crores, and the total investment rising to Rs. 2,00,660 crores. It is projected that the telecom industry will be enjoying over 150% growth in the next 4-6 years. The growth also requires a huge investment by the players in the sector. Bharti Airtel is planning to invest about $8 billion by the year 2010. Liberalization policy and some socio-economic factors are mainly responsible for the immense growth in the sales volumes. The lifestyle of the people has changed. They need to be connected to the other people all the time. With the lowering down of the tariffs the affordability of the mobile phones has increased. The finance sector has also come up with loans for handsets on 0% interest. Mobile services providers are also expanding their coverage area by installing more and more antennas and other equipments. The telecom sector in the country has already adopted the latest technological advancements to cater to the demands of the growing market. Telecom Expo India, Convergence India, VAS India and IPTV India being organized year to year are all efforts in this direction. Budget 2007 has brought disappointment to the telecom sector. Mobile service providers have been asked to cut down their roaming rentals as well as their long distance and international call tariffs. This has led to discontent on the part of the service providers. However, Telecom Regulatory Authority of India (TRAI) is of the opinion that this will lead to increased use of roaming, which will ultimately lead to more revenue generation. Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Also, the telecom industry this year will be focusing more on rural areas to connect them with the urban areas so that the farmers and the small-scale industries can have faster access to information related to weather and market conditions.

RURAL INDIA KEY GROWTH DRIVER OF TELECOM INDUSTRY

Rural population is the key growth driver of Indias telecom industry though affordability still remains a key issue. According to the study by LIRNEasia, and information and communication technology policy organisation, 27 percent of the total mobile owners at the bottom of the pyramid (BOP), or the poorest socio-economic group, were added last year, whereas the urban areas added only 19 percent. Just five years ago, the massive momentum developed by the Indian telecom industry did not include rural areas. But now, the picture is different,. It added that phone ownership - both landline and mobile - at the BOP increased a whopping 131 percent between 2006 and 2008. Affordability still remains a key issue for the people at the bottom of the pyramid to buy mobile phones, Rohan Samarajiva, chairman and chief executive of LIRNEasia, told IANS. Mobile ownership is as high as 40 percent at the BOP whereas the fixed phone ownership is 8 percent. The study said India has a large second hand mobile phone market. Most of the rural customers on an average spend $34.82 to buy a second hand phone and approximately $48 for a new phone, Samarajiva said. However, a major chunk of the people still utilise only voice services and services like payment through mobile. Other value-added services are still at a negligible level, the study said.

EMPLOYMENT STATUS
With the coming of more and more projects, the telecom industry is going for high scale recruitments. There is a huge demand for software engineers, mobile analysts, and hardware engineers for mobile handsets. Besides, there are ample opportunities for marketing people whose services are required to capture more and more customer base. The new projects, setting up of new service bases, expansion of coverage areas, network installations, maintenance, etc are providing more and more employment opportunities in the telecom sector.

LANDMARKS OF INDIAN TELECOM INDUSTRY:-

Year
1851 First operational land lines were laid by the government near Calcutta (seat of British power) Telephone service introduced in India

1881

1883 1923 1932

Merger with the postal system Formation of Indian Radio Telegraph Company (IRT) Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC) Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system) Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. Telecom Regulatory Authority of India created. Cellular Services are launched in India. New National Telecom Policy is adopted. DoT becomes a corporation, BSNL

1947

1985

1986

1997 1999

2000

MAJOR PLAYERS IN TELECOM INDUSTRY AND THEIR MARKET SHARE Major Players in telecom industry:There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

 Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications,Dishnet Wireless ltd.)

Public and Private Players

MTNL, BSNL, VSNL are the major Public Players, whereas Airtel, Aircel, Idea, Vodafone, Tata, Reliance, BPL are the leading Private Players in the country. Some of them are entering foreign markets as well. The Bharti Telecom will be launching its services the leading Private Players in the country. Some of them are entering foreign markets as well. The Bharti Telecom will be launching its services for the NRIs in the US with the help of Airtel CALLHOME service.
List of Private service provider in India are as:-

Logo Company
Aircel Group

Circle in different states

Assam, Bihar, Chennai, Himachal Pradesh, Jammu & Kashmir, North East, Orissa, Tamil Nadu, West Bengal, Kolkata, Delhi, Kerala, Karnataka, Andra Pradesh,UP(E), UP(w), Mumbai Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai (Metro), Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Karnataka, Madhya Pradesh, Maharashtra, North East, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh (E), Uttar Pradesh (W), West Bengal. Andhra Pradesh, Chennai (Metro), Delhi (Metro), Gujarat, Haryana, Karnataka, Kolkata (Metro), Mumbai (Metro), Punjab, Rajasthan, Uttar Pradesh (W), Uttar Pradesh (E), West Bengal, Maharatshtra, Tamilnadu, Kerala, Jammu & Kashmir, Himachal Pradesh, Orissa, Bihar, Assam, North East, Madhya Pradesh.

Official website

http://www.aircel.com

Airtel

http://www.airtelworld.com

Vodafone

http://www.vodafone.com

Idea cellular

Delhi (Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Maharashtra, Kerala, Madhya Pradesh, Rajasthan, Uttar Pradesh (E), Uttar Pradesh (W).

http://www.ideacellular.com

Reliance telecom ltd.

Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh, North East, Orissa, and West Bengal.

http://www.reliancemobile.com

Tata teleservices ltd.

J&k, Punjab,H.P, Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka

BSNL
On October 1, 2000 the Department of Telecom Operations, Government of India became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL is now Indias leading telecommunications company and the largest public sector undertaking. It has a network of over 45 million lines covering 5000 towns with over 35 million telephone connections. The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year Plan (1992-97). BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.

AIRTEL
Established in 1995 by Sunil Mittal as a Public Limited Company, Airtel is the largest telecom service provider in Indian telecom sector. With market capitalization of over Rs. 1,360 billion, Airtel has 33% of total market share of GSM service providers. Providing GSM services in all the 23 circles, Airtel was the first private player in telecom sector to connect all states of India. Also, Airtel is the first mobile service provider to introduce the lifetime prepaid services and electronic recharge systems.

VODAFONE
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for Mumbai. Vodafone Essar now has operations in 20 circles with over 54.63 million customers. Vodafone is the worlds leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 269 million customers worldwide. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market.

MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of Indias key metros Delhi, the political capital, and Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to emerge as Indias leading and one of Asias largest telecom operating companies. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-theart digital mode. The Govt. of India currently holds 56.25% stake in the company. In the year 200304, the company's focus was not only consolidating the gains but also to focus on new areas of enterprise such as joint ventures for projects outside India, entering into national long distance

operation, widening the cellular and CDMA-based WLL customer base, setting up internet and allied services on an all India basis. MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wireline phones is stagnating MTNL faces intense competition from the private playersBharti, Hutchison and Idea Cellular, Reliance Infocommin mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03.

RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was permitted to provide only limited mobility services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the countrys largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market.

TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with the six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm.

VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and

value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3. The company's ADRs are listed on the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic long distance services and is launching broadband services. For this, the company is investing in Tata Telservices and is likely to acquire Tata Broadband.

IDEA
Established by AT&T, Aditya Birla Group and Tata Group as joint venture, Idea Cellular, is a part of Aditya Birla Nuvo, a flagship company of the Aditya Birla Group, Idea is growing its network in 11 circles. Idea offers both prepaid and post paid services in the GSM network. Having 14.96 % market share, Idea has a base of 2.3 crores subscribers all over the country. A three-year contract was signed between Idea cellular and Ericsson for GSM expansion. The network will now cover Maharashtra, Gujarat, Rajasthan, Madhya Pradesh and Himachal Pradesh telecom circles (operatorlicensed areas).

MARKET SHARES OF THE LEADING PUBLIC AND PRIVATE PLAYERS

GROUP COMPANY WISE % MARKET SHARES

Name of the Company Airtel Vodafone

Total Sub Figures

88382758

% market share

33.04 % 23.68 %

63340024

BSNL Idea cellular Aircel Reliance MTNL BPL

42673357

15.95 % 14.96 % 6.27 % 3.87 % 1.50 % 0.75 %

40016153

16761397

10353841

4003807

2007303

All India

267538640

100.00 %

GRAPH SHOWING COMPANY WISE % MARKET SHARE

Total Sub Figures 1% 1% 6% 15% 4% 33%

16% 24%

1 Bharti Airtel 4 IDEA 8 MTNL

2 Vodafone Essar 5 Aircel 9 BPL

3 BSNL 6 Reliance Telecom

COMPANY PROFILE
The Aircel group is a joint venture between maxis communication Berhad of Malaysia and Apollo hospital enterprise ltd of India, wit maxis communication holding a majority stakes of 74%. Aircel commenced operation in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai a quickly established itself as a market leader- a positive it has held since. Till today, the company gained a foothold in 18 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East),Maharashtra & Goa and Mumbai. The company has currently gained a momentum in the space of telecom, govt. of India for 13 new circles across India. These including Delhi(metro), Mumbai(metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Karla, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP(west) and UP (east). With over 25 million customers in the country, Aircel the fast growing telecom company in India. Aircel is a full-fledged national operator. Aircel group, today introduce face book update on SMS services to its prepaid and post paid subscribers.

COMPANY OFFERING (PRODUCTS)

Aircel mainly deal in its core business of cellular connection it provides verity of products such as Postpaid mobile connection. Prepaid mobile connection. Recharge vouchers. Value added services. Broadband connections. With the help of these products company operate its business in the market & company launches other products but they can be depend on either the competition or customer preference.

PRODUCT AND SERVICES

Aircel provided 2G services (3G services about to start) using digital GSM technology. We offer GSM voice and data services in all of the regions in which we currently operate. In addition to basic mobile voice telephony services, we offer a wide range of value added and data services. These include voicemail, dual SIM card capabilities, missed call alert, SMS, GPRS services, and email services. Aircel offers a bouquet of Innovative products that are unique & simple to use with a single minded objective of solving a real problem. Aircel products are unique in a various ways to keep you one step

ahead. Aircel are focused on demonstrating our versatility in creating value to our subscribers through innovative products. It offers pre-paid and post- paid voice, MMS access services. Aircel launched services in most over part of India. MISSION STATEMENT We are conditionally committed to exceeding our customers expectations. We will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. We will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders. GOALS AND VALUES Customers: Our customers are our most valued assets. we will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. People: our people are our greatest resources. we will attract, train and retain the best. we will challenge them to develop their full potential in the context of our company goals. Integrity: We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises. Respect: We will treat with respect & dignity all people we deal with. Excellence: We are committed to excellence in all what we do. There will be no place for mediocrity. Work: We will promote a work environment that embraces creativity, promotes empowerment, and encourages team work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm. Quality: The hallmark of our internal and external outputs and processes will be quality. this will pervade every aspect of our functioning.

AWARDS AND ACHIEVEMENTS

Awarded in No.1in customer satisfaction and network quality - 2006 Best Mid size companies in the year - 2007 Best Continue Campaign Aircel TM ABBY Awards Added Punjab, Haryana, and Rajasthan and UP (East) circles to India operation. Best regional operator in the year - 2008. World Brand Congress 2009 with three awards,

 Brand Leadership in Telecom, Marketing Campaign & Marketing Professional of the Year. CMAI INFOCOM National Telecom Award in the year 2009 for, Excellence in Marketing of New Telecom Service.

COMPETITORS PROFILE
In India, Aircel is the 5th largest GSM mobile provider industry in India. The Aircel limited competitors are 1. 2. 3. 4. 5. 6. 7. 8. Bharti Airtel. Bharat Sanchar Nigam Limited. Reliance Communications. Vodafone Essar. Aircel limited. Tata Tele services. Idea cellular. Uninor.

But the following companies are main competitors for Aircel, in Indian telecom industry. 1. 2. 3. 4. 5. 6. Bharti Airtel. Bharat Sanchar Nigam Limited . Reliance Communications. Vodafone Essar . Aircel Limited. Tata Tele services.

FINDINGS
1. All the retailers are dealing in all services i.e. providing Recharge Voucher, SIM, and Tariff Voucher of all the cellular service companies present in New Delhi. Also most of them provide only pre-paid connection. 2. Around 15% of the respondents told that there is network problem with Aircel. 3. Some of the retailers i.e. around 34% of respondents are satisfied with Aircel brand, 30% of them push Aircel brand to the customer and rest 36% retailers are not satisfied with Aircel brand due to network problem in some area. 4. Some retailers are dissatisfied with company distributors. Distributors are not promissory to the retailers and sometimes, they hide the related information. 5. Customer care response is not so good. As a retailers told that, there is less security for them. 6. From the observation and the findings of the survey it comes out clearly that the retailers play a very vital role in acquiring customers by influencing their decision making in favors of the service provider which the retailers likes the most.

ASSESSMENT OF THE INTERNSHIP:

QUESTIONAIRE
1. Name -----------------------------------------------------------------------2. Name of the retail outlet. -----------------------------------------------------------------------3. How much activation, you have done in the last month? -----------------------------------------------------------------------4. How much activation, you have done in the last month in Aircel? -----------------------------------------------------------------------5. Which services, are you providing the customers? Postpaid Prepaid Both

6. From your perception, which company is giving the best services?

Aircel services Airtel services Idea services Vodafone services Reliance services Tata services BSNL services Virgin services Uninor services

7. Which features subscribers like in Aircel services? GPRS GAMES NET OTHER

8. For which plan Aircel Company is getting best response? Recharge vouchers New Dialer tunes New local &ISD rates New internet rates

9. Which company had offered the best plans in the last month?

Aircel services Airtel services Idea services Vodafone services Reliance services Tata services BSNL services Virgin services Uninor services 10. Which connection customers, prefers mostly in Aircel? Low call rate Double talk time Full talk time Other

11. What is your opinion towards the pricing of Aircel services? Costly prices Low prices High prices Reasonable prices

A study of statistical analysis based on following questionnaire and data.

Table1. Representing monthly total activation data No. of Retailers sales 0 to 25 25 to 100 100 to 150 150 to 350 350 to 1500 Source : Questionnaire Figure1. Representing monthly total activation data 0 to 25 25 to 100 100 to 150 150 to 350 350 to 1500 No. of Retailers 9 26 13 7 5 Percentages 15% 43% 19% 13% 10%

9 7

13 26

Source: Questionnaire

Inference:
The subscribers want to select the best network service. And the subscribers are giving preference to those services; those are providing like network quality, reasonable call rate, and good internet facility, with best prepaid and postpaid services. And retailers need monthly changes in every network service plans. From the above table it can be concluded that Tolichowki and Chandrayangutta retailers sales showing low range from other retailers. Due to lesser barriers of entry, there foreign companies are coming to India and subscribers want to select one of the best telecom services from them.

Table2. Representing monthly Aircel activation data No. of Activation 0 to 5 5 to 15 15 to 25 25 to 35 35 to more Source: Questionnaire Figure2. Representing monthly Aircel activation data No. of Retailers 21 16 11 9 3

35 to more 25 to 35 15 to 25 5 to 15 0 to 5 0

3 9 11 16 21

10

15

20

25

Source: Questionnaire

Inference:
Aircel has less market demand because other companies are providing good services from Aircel. From retailers perception it can be concluded that Aircel will have to put services with new plans, as like last month Reliance communication and Idea cellular was given activations Rs. 13/- and Rs. 26/respectively with free full talk time. From the above table it can be conclude that in the last month 21 retailers had done activations only near to 0 to 5 but other retailers had done more than 5 activations, even some retailers had done more than 35 activations in the last month.

Table3. Representing telecom products services provided by retailers to customers Telecom industry services Postpaid Prepaid Both(postpaid and prepaid) Source: Questionnaire No. of Retailers 6 11 43 Percentages 10% 18% 72%

Figure3. Representing telecom products services provided by retailers to customers 50 45 40 35 30 25 20 15 10 5 0 no. of retailers percentages Source: Questionnaire
43

11 6

postpaid 6 10%

prepaid 11 18%

both 43 72%

Inference:
In the telecom industry, the companies are providing to customers prepaid and postpaid product services. In Prepaid, a tariff plan that fits usage and best budget. And in postpaid, companys offer which is customized to suit the customers calling needs. From the above table analysis it can be conclude that 72% retailers are providing prepaid and post paid both services. 18% retailers are providing only prepaid product services and 10% retailers are providing only postpaid services, they want to start postpaid services and prepaid services respectively.

Table4. Representing retailers opinion, about the company giving best services Company Name Aircel services Airtel services Idea services Vodafone services Reilance services Tata services BSNL services Virgin services Uninor services No. of Retailers 5 14 7 8 19 6 1 0 0 giving best services
0 6 1 0 0 5

Percentages 6% 23% 12% 13% 32% 10% 4% 0% 0%

Sourc e: Questi onnair e Figure 4. Repre sentin g retaile rs opinio n, about the compa ny

Aircel
14

Airtel Vodafone Tata virgin

Idea reliance

19 7 8

Bsnl

uninor

Source: Questionnaire

Inference:
All telecom companies are providing best services from their competitors. In India, there are some domestic and foreign players like Airtel, Aircel, Reliance, BSNL, Tata and Vodafone, Uninor. From the above data analysis it can be conclude that Reliance communication is providing best service plans like free full talk time with new GSM activation even Airtel also providing good service plans from competitors. And rest of all companies wants to come closer to market for providing good services.

Table5. Representing Aircel features data Aircel features plans GPRS Games Net And others Source: Questionnaire Figure5. Representing Aircel features data No. of Retailers 28 2 16 11 Percentages 49% 6% 27% 18%

OTHER NET GAMES GPRS 0 PERCENTAGES NO. OF RETAILERS Source: Questionnaire

18% 27% 6% 2

11 16

49% 5 GPRS 49% 28 10 GAMES 6% 2 15 20 NET 27% 16 25

28 30

OTHER 18% 11

Inference:
Telecom companies are providing features like GPRS, Games, Net, etc for companys subscribers and these is one way of helping for growth of companys revenue. Aircel Limited is also providing these features and from above analysis it can be conclude that Aircel is having high growth in GPRS and Net features services. 49% retailers opinion, Subscribers mostly like to use GPRS services and 27 % retailers opinion; subscribers like to use net facilities.

Table6. Representing companies best plans data Name of the plans New Recharge vouchers plans New dialer tune plans New local and STD rate plans New internet plans Source: Questionnaire Figure6. Representing companies best plans data No. of Retailers 25 6 21 8 Percentages 42% 10% 33% 15%

new recharge voucher plans

25

new dailer tune plans new local and STDrate plans new internet plans

19

Source: Questionnaire

Inference:
All companies want to provide best service plans, they wants to compete with their competitors in the services. In the telecom industry, the companies are providing full talk time recharge vouchers, monthly latest dialer tunes, low call rates and other plans. With these plans every company wants to be a market leader. From 43% and 21% retailers opinion, companies want to compete through new recharge voucher plans and low call rate plans with other competitors, respectively. 14% retailers opinion, subscribers like to purchase monthly latest dialer tunes. And 10% retailers opinion, subscribers like to use new internet plans.

Table7. Representing last month best plans services. Company name Aircel services Airtel services Idea services Vodafone services Reilance services Tata services BSNL services Virgin services Uninor services Source: Questionnaire Figure7. Representing last month best plans services.
29

No. of Retailers 4 7 13 5 29 2 0 0 0

Percentages 6% 125 22% 8% 48% 4% 0% 0% 0%

30 25 20 15 10 5 0
4 6% 12% 22% 7 5 8% 13

48%

4%

0 0

0 0

0 0%

Source: Questionnaire

Inference:
From Indian market survey, telecom Industry had high growth from other industries in the last month. In Indian telecom industry some domestic and foreign players are there like Aircel, Airtel, Idea, Vodafone, Reliance, Tata, BSNL, Virgin, and Uninor. From the data analysis I got that 48% retailers perception, Reliance communication had given best plans through GSM services. 22% retailers perception, Idea cellular had given best plans through free full talk time with new activations. But BSNL and Virgin have no any subscribers because call charges are very high, services are same from last few months, they are investing less in advertising due to which the customers are not able to aware about plans offered by the company.

Table8. Representing Aircel connections plans Aircel connection plan Low call rate Full talk time Double talk time Others Source: Questionnaire Figure8. Representing Aircel connection plans
30

No. of Retailers 30 16 4 10

Percentages 50% 27% 6% 17%

30 25

20
15 10 5 0 low call rates Source: Questionnaire

16 10 4 50% 27% 6% 17%

full talk time

double talk time

other

Inference:
Telecom companies are providing to subscribers best connection plans like low call rates, full talk time, double talk time and others. 50% retailers said that, the subscribers are taking Aircel services due to less call charges taken by the company because the customers have basically taking the SMS packages, STD call rates, etc. and 27% retailers said that, the subscribers like full talk time value vouchers. Company providing full talk time vouchers with mostly new activations or in some festivals plans that why subscribers come to attract over here.

Table9. Representing pricing of Aircel services Pricing of Aircel services Low prices good prices Reasonable prices Costly prices Source: Questionnaire Figure9. Representing pricing of Aircel services
2% 9%

No. of retailers 1 32 22 5

Perception 2% 52% 37% 9%

low prices good prices

37% 52%

reasonable prices costly prices

Source: Questionnaire

Inference:
Aircel limited providing all services behalf of investments. The subscriber taking Aircel services because the pricing of product service plans good and reasonable from other competitor companies. From the data analysis I got 52% retailers said that the pricing of Aircel services are good. And 37% retailers said that the pricing of Aircel services are reasonable.

CONCLUSION
From the observation & finding of the survey its comes out clearly that the retailers play a very vital role for telecom service providers. Its also comes out clearly that profit margin not the only reason for which retailers sales a particular brand but other aspects such as services, schemes, pricing of product & services are equally important. 1. As per retailers Aircel should try to work on new marketing strategies for sales, pricing & services. 2. Most of the retailers feel that there is lack of good network availability and customer care as per other telecom brands. 3. Some of the retailers feel that there is scope for improvement in the case of Aircel distribution service. So if these problem areas are being worked upon by the Aircel there is every possibility in the near future that Aircel definitely move pass all other competitors & will be the preferred service provider of the retailers.

SUGGESTIONS
On the basis of extensive study and research, here are some suggestions which may help the company to market the product and service more profitability and increase its share in the Telecom market. 1. Product service tariff plans should be improved so that it will reach to every retailers and every level of customers. 2. Retailers suggest to Aircel limited, they should focus on advertisement & promotion activities. 3. As per retailers perception Aircel should go for occasional tariff plans offers or price off from time to time during any festival and off season discount offers may also prove helpful to check unpredictable sales. 4. Aircel should try to increase the efficiency of its sales person. Proper training should be given to them where they should be told as how to improve relation with the retailers, become a good listener, perform their duties efficiently so that overall satisfaction level of retailers can be increased 5. Now regarding the Service Quality, Aircel should try to improve its overall service quality by responding to the problems of retailers in time, by incorporating a more helping attitude, by providing fast service and having an empathetic look towards the retailers problem. 6. From the retailers survey it also came to light that Aircel is slow in processing, i.e. verification, simcard delivery and activation. So Aircel should also try to improve upon this factor.

BIBLIOGRAPY

1. Referred book Principles of Marketing Philips kotler Marketing Research G.C. Beri Research Methodology G.R. Kothari 2. Websites www.Google.com www.answer.com www.aircel.co.in