PROJECT REPORT

PRODUCT MARKET ANALYSIS

SUBMITTED IN SYBMS 2010-11

TABLE OF CONTENTS

1 Acknowledgement
2 Executive Summary
3 Objective of Study
4 Company Profile
5 Market Research
6 Wallet Share
7 Research Methodology
8 Data Analysis
9 New retailers added
10 Conclusion
11 Limitations
12 Recommendations
13 Bibliography
14 Annexure
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ACKNOWLEDGEMENT
My project work has been successfully accomplished due to
cooperative efforts of many people. I would like to pay my
sincere gratitude and thanks to those people, who directed me
at every step in the project work.
I would like to express my sincere gratitude
to___________________________________
(Project guide) for constantly guiding me and acting as my
mentor during the course of my project and tackling variety of
hurdles with implicit patience throughout my research project
and whose deep involvement and interest in the project
infused in me great inspiration and confidence in taking up
this study in right direction. Without his overall guidanceand
help the project may not have seen to be completed. In the
end, I also want to thanks my friends for their support and
help during the project.

Submitted by:
Executive Summary

Airtel comes to you from Bharti cellular Limited- a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of
telecom services, which includes cellular, basic, internet and recently introduced
National Long Distance. Bharti also manufactures and exports telephone terminals
and cordless phones. Apart from being the largest manufacturer of telephone
instruments in India, it is also the first company to export its products to the USA.
Bharti is the leading cellular services provider, with an all India footprint covering all
23 telecom circles of the country. It has over 11 million satisfied customers.
Project title is “Market Share of Airtel”. Main objective of the study was to find the
share of Airtel in the allotted market and to know its potential market. In this, non
telecom shops are targeted and their demand or requirement is understood. Their
interest is being taken into consideration i.e. whether they are interested or not
interested if given an option to them to keep Airtel connection for selling. Also for
existing telecom shops; retailers are being questioned about their level of satisfaction
from the business, whether they keep Airtel connection, overall performance of each
telecom services providers and their feedback for Airtel. The method which was used to
study the replies of the telecom and non telecom shops that may or may not be interested in
having Airtel connections is through questionnaire. The questionnaires were filled by: -
moving to each and every market which was being allotted. . Markets allotted are
AREAS ?????????.
Existing telecom shops and non telecom shops like chemist, general stores, STD/
PCO, gifts shops are mainly focused. The questionnaires were filled there and then by
the retailers and then analysis is being done. The questionnaire was bifurcated into
different segments i.e. general information about the retailers containing name,
address, age, shop address, whether they keep Airtel or not, if no then their interest on
keeping it. Also overall comparative performance is being asked from existing
telecom.
Objective
The objective of the project was to:-
 To find the market share of Airtel in allotted markets.
 To measure the amount of the consumers total spending for Airtel telecom
services.
 To know total amount of money non telecom shopkeepers can spend on our
product in planning and managing sales and marketing.
 To know how much Airtel has penetrated into the market.
 To know the satisfaction level from the existing telecom shopkeepers.
 To keep an eye on the competitors strengths and weaknesses.
 To study the hindrances in increasing the sales and market share of Airtel in
prepaid category.
 To know which telecom operator is leading in the given market.
 To study the comparative analysis of telecom operators according to dealers, retailers
on a parameters like-
 Value for money of which telecom operator.
 Customer preference/ demand for which company’s connection.
 Claim disbursement received by dealer/ retailer from various companies.
 Number of activation per month.
 Which company’s connection faced the highest decline in the past three
months?
In the end from the facts and observations collected, we came up with the conclusion,
which helps Airtel to attract more customers to be the part of Airtel family and the
corrective measures to be taken for filling up the loopholes and how the Airtel share
can be increased which is eaten away by the other competitors.
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Company Profile
Market
The unprecedented growth in the mobile is, perhaps, the most vivid facet of India’s
economic transformation since the mid 1990’s. Mobile technology and services came
to India less than a decade ago. In the early days, a mobile was seen to be a fashion
statement for the rich. Today, it is expected as a basic communication medium for all
socio- economic segments. As the pioneer and front runner, Airtel has been
instrumental in leading and ushering in the mobile revolution in India.
The Indian mobile market is, today, amongst the fastest growing and the most
competitive in the world.Cellular Mobile Telephone Subscriber base has increased from
471.73 millionin September 2009 to 525.09 million in December 2009, Airtel commands
nearly 23% of the share of the market- making is the number one brand in the country.
Airtel’s world class service and innovative products have enabled it to establish this position
of leadership.
About Airtel
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is among
India's largest mobile phone and Fixed Network operators. With more than 40 million
subscriptions, the company is one of the world's fastest growing telecom companies.
It offers its mobile services under the Airtel brand and is headed by Sunil Mittal,8888
India's sixth richest man with a total worth of US$10 billion. The company is the only
GSM operator to provide mobile services in all the 23 circles in India. The company
also provides telephone services and Internet access over DSL in 14 circles. The
company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides reliable end-to-end data and enterprise services to
the corporate customers by leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and international
bandwidth access through the gateways and landing station.
Airtel is the largest cellular service provider in India in terms of number of
subscribers. Bharti Airtel owns the Airtel brand and provides the following services
under the brand name Airtel: Mobile Services (using GSM Technology), Broadband
& Telephone Services (Fixed line and Internet Connectivity), Long Distance Services
and Enterprise Services (Telecommunications Consulting for corporates).
Group Overview
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of
bicycle parts to one of the largest and most respected business groups in India. With its
entrepreneurial spirit and passion to undertake business projects that are transformational in
nature, Bharti has created world-class businesses in telecom, financial services, retail, and
foods.

Bharti started its telecom services business by launching mobile services in Delhi (India) in
1995. Since then there has been no looking back and Bharti Airtel, the group's' flagship
company, has emerged as one of the top telecom companies in the world and is amongst the
top five wireless operators in the world.

Through its global telecom operations Bharti group has presence in 21 countries across Asia,
Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina
Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya,
Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia.     

Over the past few years, the group has diversified into emerging business areas in the fast
expanding Indian economy. With a vision to build India's finest conglomerate by 2020 the
group has forayed into the retail sector by opening retail stores in multiple formats - small
and medium - as well establishing large scale cash & carry stores to serve institutional
customers and other retailers. The group offers a complete portfolio of financial services - life
insurance, general insurance and asset management - to customers across India. Bharti also
serves customers through its fresh and processed foods business. The group has growing
interests in other areas such as telecom software, real estate, training and capacity building,
and distribution of telecom/IT products.      

What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years
some of biggest names in international business have partnered Bharti. Currently, Singtel,
IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is
Bharti's partner for its cash & carry venture. Axa Group is the partner for the financial
services business and Del Monte Pacific for the processed foods division.

Bharti strongly believes in giving back to the society and through its philanthropic arm the
Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in
India. 
Marketing Research
Research is the scholarly or scientific practice of gathering existing or new
information in order to enhance one's knowledge of a specific area. Research has
many categories, from medicine to literature. Marketing Research, or Market
Research, is a form of business research and is generally divided into two categories:
consumer market research and business-to-business (B2B) market research, which
was previously known as Industrial Marketing Research. Consumer marketing
research studies studies the buying habits of individual people while business-tobusiness
marketing research investigates the markets for products sold by one
business to another.
Consumer Marketing Research is a form of applied sociology that concentrates on
understanding the behaviours, whims and preferences, of consumers in a marketbased
economy. The field of consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.
Market research and marketing research are often confused.’ Market' research is
simply research into a specific market. It is a very narrow concept. 'Marketing'
research is much broader. It not only includes 'market' research, but also areas such as
research into new products, or modes of distribution such as via the Internet. Here are
a couple of definitions:
"Marketing research is the function that links the consumer, customer, and public to
the marketer through information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements the
data collection process, analyzes, and communicates the findings and their
implications."
181810/12This explanation is far more straightforward i.e. marketing research into the
elements of the marketing mix, competitors, markets, and everything to do with the
customers.
The Marketing research Process.
Marketing research is gathered using a systematic approach. An example of one
follows:
1. Define the problem. Never conduct research for things that you would 'like' to
know. Make sure that you really 'need' to know something. The problem then
becomes the focus of the research. For example, why are sales falling in New
Zealand?
2. How will you collect the data that you will analyze to solve your problem? Do we
conduct a telephone survey, or do we arrange a focus group?
3. Select a sampling method. Do we use a random sample, stratified sample, or cluster
sample?
4. How will we analyze any data collected? What software will we use? What degree
of accuracy is required?
5. Decide upon a budget and a timeframe.
6. Go back and speak to the managers or clients requesting the research. Make sure
that you agree on the problem! If you gain approval, then move on to step seven.
7.Go ahead and collect the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data collection
method, or analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams that will
communicate the results of the research, and hopefully lead to a solution to your
problem. Watch out for errors in interpretation.
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Sources of Data - Primary and Secondary
There are two main sources of data - primary and secondary. Primary research is
conducted from scratch. It is original and collected to solve the problem in hand.
Secondary research, also known as desk research, already exists since it has been
collected for other purposes.
Marketing research methods
Methodologically, marketing research uses the following types of research designs
Based on questioning:
· Qualitative marketing research - generally used for exploratory purposes -
small number of respondents - not generalizable to the whole population -
statistical significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
· Quantitative marketing research - generally used to draw conclusions - tests
a specific hypothesis - uses random sampling techniques so as to infer from
the sample to the population - involves a large number of respondents -
examples include surveys and questionnaires
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Market Share
The total amount of money a customer can spend on a certain product category is a
vital piece of information for planning and managing sales and marketing efforts.
This amount is usually referred to as the customer’s wallet (also called opportunity)
for the product category. There are many possible uses for wallet estimates, including
straightforward targeting of sales force and marketing actions towards large wallet
customers and prospects. In a more sophisticated sales and marketing environment,
the combination of classical propensity models for a particular product category with
the knowledge of the wallet for the same category can direct the sales efforts: it
allows a company to market not only to customers or potential customers with a large
wallet, but also to those with a high probability of buying specific products in the
category.
By combining the customer wallet estimates with the data on how much they spend
with a particular seller, we can calculate the share-of-wallet that the seller has of each
customer for a given product category. This information allows the seller to target
customers based on their growth potential, a combination of total wallet and shareof-
wallet. The classical approach of targeting customers that have historically
generated large amounts of revenue for the company (known as lifetime value
modeling) does not give enough importance to customers with a large wallet, but
small share-of-wallet, which are the ones with presumably the highest potential for
revenue growth.
Share-of-wallet is also important for detecting partial defection or silent attrition,
which occurs when customers increase their spending in a given category, without
increasing the amount purchased from a particular company. In certain industries,
customer wallets can be easily obtained from public data. For example, in the credit
card industry, the card issuing companies can calculate the wallet size and respective
share-of-wallet using credit records from the three major credit bureaus. For most
industries, however, no public wallet information is available at the customer level.
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Factors
The key to increasing share of wallet is to understand what factors influence
purchasing behavior among your customer base. Your task is to find out why your
customers divide their purchases over multiple outlets, and how they choose who they
purchase from.
Regardless of your industry, you have “points of contact” with your customers; they
aren’t limited to but ultimately coincide with a purchase. Use that contact opportunity
to gather loyalty data. This may require an incentive (especially in retail sectors and
e-commerce) to prompt customer participation.
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242411 2213You want to dig deeper than the traditional “what is your satisfaction level” type
questions. Find out why they buy from you, who else they buy from and what tips
their scale.
A question we ask when conducting marketing research for our clients is: “if you had
to decide between purchasing from two different stores or companies, what is the
most important factor in that decision?” This always reveals great insight.
Strategies
Once you understand the factors that drive purchasing behavior, you can adjust your
marketing approach to line up with those factors. Following are a few examples of
strategies that effectively increased share of wallet.
• Most airlines jumped on the “frequent flyer” bandwagon, which commoditized the
concept and made it mundane. So, Kingfisher Airlines began allowing its points to be
redeemed for rental cars, hotels and golf. This strategy distinguished its program and
appeals to different behavior-based segments of the market.

• Frito-Lay launched Tostitos Chips in 1981. Ten years later they introduced Tostitos
Salsa. This increased their share of wallet through a “product relationship” strategy
by selling dip to their chip customers—two products that often are purchased at the
same time.
As you develop your “wallet” strategy, keep in mind that the three most
important factors that increase wallet share are: distinction, value and product
relationship.
Research Methodology
On defining the objective of the project, a plan was developed to gather information
most efficiently. Decisions were taken on the data sources, sampling plan, research
tools and contact methods.
Data Sources: - Primary and secondary data was gathered.
1. Primary Data:- was gathered by carrying out a market survey of various
telecom and non telecom shops in the AREAS???????????
Current perceptions of existing retailers is been taken to judge their
expectations from Airtel and its services. Also non telecom shops are been
captured so as to know their interests in keeping Airtel.
Tools used for market survey are:-
 Questionnaires for retailers. Questionnaires were given to approximately 150
shopkeepers.
 Visited markets: AREAS?????????
The dimensions addressed in the questionnaire were:-
o Linking about their business.
o Whether they are telecom shops or non telecom shops.
o Do they keep Airtel connections?
o How many connections of each telecom services are sold per month?
o Are non telecom shops interested in having Airtel connections?
o What kind of services they want- activation, recharge or both.
o Overall performance of each telecom services.
o Satisfaction level of retailers.
o Feedback from existing retailers.
2.
Secondary Data : - The researcher would have to decide which sort of data
he would be using for his study and accordingly he will have to select one
or other method of data collection. Information was gathered from the
internet, media and print so as to obtain relevant information such as
industry background and also public perception of Airtel, Hutch and Idea.
Secondary data is very carefully used in research process because it is just
possible that the secondary data may be unsuitable or may be inadequate in
the content of the problem which we want to study. The data used in
research is reliable according to our research needs. Data should be suitable
and adequate.
Internet
Airtel has its own site in which all details are given
www.airtelworld.com
www.coai.com
www.hutch.co.in
www.idea.com
www.google.com
www.trai.com
Are the main sites which are been used for collection of data in our
research.
3. Target Respondents
Shopkeepers of each and every market visited.
4. Sampling
Sample size of 30 individuals relatively covering under the
distributor was taken. The areas covered were AREAS
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5. Execution After collection of relevant data and sample planning done,
the questionnaires were filled by the retailers by personally interviewing
them.
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 DATA ANALYSIS

Q1.Do you keep telecom connections?

Reply of respondent No of respondent % of respondent

Yes
No

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you

keep in your shop to sell to consumers?

Reply of respondent No of respondents

Airtel
Vodafone
Reliance
Tata
MTNL
Idea
Others

Q3 - If yes, then please indicate your level of activation in your shop per month

for each available services given below depending upon on your response:-

Services

Airtel

Vodaphone

Idea

Tata Indicom

Reliance

MTNL

Others
Q4 If no, then are you interested in having AIRTEL connections with you now?

Reply of respondent No of respondent % of respondent

Yes
No

Q5 If yes, are you interested in having:-

a) Activation
b) Recharge
c) Both

Reply of respondent No of respondent % of respondent

Activation
Recharge
Both

Q6 Rank your choice of telecom service providers in w.r.t their performance

(1-most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not

preferred at all):-

Attributes Airtel vodafone Idea Tata Reliance MTNL Others

indicom
Max
customer
demand is
for
Value for
money
F.O.S
Activation/
complaints
Claim
disbursemen
t
General Overview of Feedback
 Customer diversification from Airtel is increasing in regular basis due to
increase in service complaints.
 Idea and Hutch giving better schemes and margin than Airtel.
 Need quick services to increase sales.
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 More and vast visibility of Hutch and Idea boards and advertisements which is
improving their promotion and branding.
 Many telecom retailers want the detailed description of incentives given to
them i.e. on what basis and on how much activation. Here lot of comparison is
being made with Hutch as they are providing with detailed description of
when and why of incentives.
 Customer demand is high for Airtel but due to services complaints, less
advertisements and claims issues the retailers are diverting the customers to
Hutch and Idea.
 Airtel is still ruling in sales as compared to others but through better
promotion, schemes and less claims issues. Hutch is emerging as second best.
So need to take actions for it.
 Customer diversification from Airtel is increasing in regular basis due to
increase in activation complaints.
 Network of Airtel is better than any other telecom services.
 New schemes are not properly being conveyed to the retailers, so they are
facing problem of no responses to customer queries.
 Customer diversification from Airtel is increasing in regular basis due to
increase in delay of retailer incentive.
 Board and advertisements are required in many shops. It is been observed that
many shop[s don’t even have normal banner of Airtel in their shop in spite of
demanding of long.
 Schemes in Airtel and tariff plans are expensive than other telecom services.
 Lot of technical problems are complained here due to that retailers
dissatisfaction is increasing, also immediate services are not provided by the
department from Airtel.
 There is different tariff plan for different connection in Airtel, that frustrates
customers
 There is large number of rejection rate for taking up any new kind of business
in the non- telecom shops this is due to lack of awareness and scarcity of
resources in this area.
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 Idea is provided with better schemes and Idea sale services are quickest
among all in this area.
 Claim problem is the major issue in this area.

Limitations
o The samples were taken on the basis of convenience sampling which may
bring element of error.
o Samples were only taken from few areas.
o Survey times are as such that maximum shop owners or respected persons
were not available for survey. So, through contact basis survey is done.
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o The sample size is very small and the result of research cannot be expralated
to the entire population.
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