SYNOPSIS PROJECT REPORT ON

MARKETING AND PROMOTIOPNAL STRATEGY OF AIRTEL LTD. IN NCR REGION

SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF MASTER OF BUSINESS ADMINISTRATION

Submitted by: Anuj Kumar 9013510

Submitted to Miss Arpita Mam

BHAGWATI INSTITUTE OF MANAGEMENT AND TECHNOLOGY

ACKNOWLEDGEMENT I take the opportunity to express our gratitude to all the concerned people who have directly or indirectly contributed towards completion of this project. I extend my sincere gratitude towards Mr. Sanjay Kumar at Airtel for providing the opportunity and resources to work on this project. I am extremely grateful to Miss Arpita Mam, my mentor for his guidance and invaluable advice during the projects. At Last I would like to thanks my parents and friends for their support.

INTRODUCTION

The project aims at understanding the Marketing and promotional strategies at Airtel and its impact on the perception of Airtel Cellular Services. Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. And there is no better way to retain a customer than to exceed his expectations. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the services provided by Bharti Airtel. The research was done for the corporate clients of Bharti Airtel. My job was not only to represent the Corporate Sales Dept. and collect the feedback from the clients but also to get the major complaints resolved through internal counselling. There can be no better opportunity to interact with the external as well as the internal customers of an organization. Finally the results of the research verify the fact that keeping the customer satisfied is the best strategy to not only retain the existing customers but also to expand the business to new horizons.

PROPOSED
TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

TELECOMMUNICATION MARKET IN INDIA GSM MARKET IN INDIA INTRODUCTION TARIFF STRUCTURE PROMOTIONAL STRATEGY MARKET SITUATION COMPETITIVE SITUATION MARKETING STRATEGY ADAPTED BY BHARTI OBJECTIVE RESEARCH METHODOLOGY LIMITATION SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE

7 11 23 39 48 50 51 60 69 70 71 79 81 82 83

TELECOMMUNICATION MARKET IN INDIA

The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown an impressive jump to 9.5% in 2006 and 10.5% in 2007 and is set to increase to 20% in the next five years beating the Govt. target by three years. Accordingly, India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers. The Government has played a key enabling role by deregulating and liberalising the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been

addressed now. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet, broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional.

INDIAN CELLULAR MARKET

The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2007, displacing Vodafone from the second position. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market. "Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst. Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a 7.92% growth, the highest growth in any month so far, during March

2005. Year-on-year, the cellular subscriber base in the country has almost doubled in March 2005, and is expanding at the rate of 25% per year thereafter. The cellular subscriber club expanded by 21.31 lakh last month. This is much higher than 5.9 lakh subscribers added in February 2005 and 2.13 lakh in January 2005. Idea, which operates in Seven circles, is the fourth largest operator with a subscriber base of 17.80 lakh, higher than BPL's 11.31 lakh subscribers across four circles. The subscriber numbers per operator drop sharply with the sixth largest operator, Spice Communications, having a subscriber base of 9.40 lakh, followed by Reliance Telecom's 8.9 lakh subscribers. MTNL is the ninth largest operator, with a base of 8.32 lakh subscribers. While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros, subscriber base of category A circles of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumped by 10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab, Haryana, Uttar Pradesh (West), Uttar Pradesh (East), Rajasthan, Madhya Pradesh and West Bengal recorded a jump of 10.69%, with a total base of 33.74 lakh subscribers. Circle C has reported 12.74 % growth with subscriber numbers jumping to 5.08 lakh. Among the metros, while Mumbai added 1,63,180 subscribers, higher than the 1,58,646 added by Delhi, the Capital's cellular subscriber base of over 80 lakh is still higher than Mumbai's 66.89 lakh. While the cellular industry has been on roll for the first three quarters of the previous financial year with an average of 16.75 lakh monthly additions in the third quarter, the first two months of 2007 had seen the growth slowing down.

OBJECTIVES OF THE STUDY

I have further improved my objectives as specified in my synopsis with the help of my mentor Mr. Akash Sharma which are as follows Objectives: Primary research Objective:To study and analysis the Marketing and Promotional strategy adopted by Airtel in NCR Region. Following are the Secondary Objectives:

To study the importance and development of tele communication industry in todays scenario.

To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry in NCR Region.

To make a comparative study of the major players in Indian Service Provider.

RESEARCH METHODOLOGY
The methodology adopted for this project is exploratory in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory research work. There have been two sources of information collected: a) Primary Sources I have met retailers of the Airtel of the company and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website.

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BIBLIOGRAPHY
Bernard J. T. Mallinder. Specification Methodology Applied to the GSM System. In EUROCON 88, June 2005. Seshadri Mohan and Ravi Jain. Two User Location Strategies for Personal Communication Services. IEEE Personal Communications. 1(1), 1994. Moe Rahnema. Overview of the GSM System and Protocol Architecture. IEEE Communications Magazine. April 1993. C. Watson. Radio Equipment for GSM. In D.M. Balston and R.C.V Macario, editors, Cellular Radio Systems, Artech House, Boston, 1993. Robert G. Winch. Telecommunication Transmission Systems. McGrawHill New York, 1993. Vodafone Airtel Idea MTNL

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