"Consumer Behaviour of Airtel": Bachelor of Business Administration
"Consumer Behaviour of Airtel": Bachelor of Business Administration
RESEARCH REPORT
ON
BACHELOR OF BUSINESS
ADMINISTRATION
(2013-2016)
(HOD) 16814300026
DECLARATION
STATEMENT CANDIDATE
Place:
Date:
Candidate Signature
2
ACKNOWLEDGEMENT
3
I am also thankful to authority of Airtel for providing me the
information.
(BHARAT LAL)
PREFACE
out the picture of big scale sector that exists in this industry.
4
CONTENTS
DECLARATION --
ACKNOWLEDGEMENT --
PREFACE --
EXECUTIVE SUMMARY --
6-7
INTRODUCTION --
15
COMPANY PROFILE --
30
5
RESEARCH METHODOLOGY --
11
58
SUGGESTIONS --
68
SWOT ANALYSIS --
70
RECOMMENDATION --
74
LIMITATIONS
-- 77
CONCLUSION --
80
BIBLIOGRAPHY --
82
6
QUESTIONNAIRE --
84-86
7
Executi
ve
Summa
ry
8
EXECUTIVE SUMMARY
The project is an extensive report on how the Airtel
9
Introduc
tion
10
INTRODUCTION
In India, the telecom service areas are divided into four metros
classified under "A," "B" and "C," with the "A" circle being the most
attractive and "C" being the least attractive. The regulatory body at
allocated two cellular licenses for each metro and circle. Thirty-four
in 1995. The first cellular service was provided by, Modi Telstra in
firm can win in more than one metro, three circles or both. The
bidders, while West Bengal and Assam had only one bidder each.
11
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was
High license fees and excessive bids for the cellular licenses put
by 1999 many operators failed to pay their license fees and were in
telecom policy was put in place (New Telecom Policy [NTP] 1999).
12
New Telecom Policy of 1999 was announced. Some of these
13
ROADBLOCKS
CURRENT POSITION
in different bodies.
14
Interconnect terms since rationalized, risks on pass through
by GSM operators.
Institutions.
financial institutions.
15
Foreign ownership norms clarified, and change of partners allowed
rosy. The cellular penetration rate is still very low at 0.8 percent in
In recent years, many foreign companies had pulled out from their
from Sterling Cellular, Telstra from Modi Telstra and both the
16
Fascel. In June 2001, British Telecom exited from Bharti Cellular.
Bell South International has also indicated its intention to pull out
17
and started operations, giving competition to the lone operator
Five companies together bid Rs16.3 billion to bag the licenses for
Escotel with four, Hutchison with three, and Reliance and Idea
BHARTI, the third cellular operator for Delhi and MuBBAi, started
postponed until after mid October. Once BSNL rolls out its service,
most telecom circles will have four cellular operators. There will be
Future rate cuts are expected, which will drive demand, together
18
In the midst of declining interest in technology stocks, Bharti came
company got a very good response from the primary market. The
total size of the IPO was 185 million shares at a floor price of
netting Rs8.3 billion. This will be used to fuel its investment in long-
scale uptake remains elusive. While both Bharti and Idea have
remains a question.
19
like the city rail system and cabs are used widely to carry the
message of mobility.
music shops.
All along, customer acquisition and the top line have been the
basic voice and Short Message Service (SMS) will get them the
numbers but not the margins, some are now seriously looking at
20
to fleet management companies so that they can improve the
vehicle to help trace lost vehicles and track down stolen cars.
fast food centers that have a central number. Group SMS is quite
to the retail outlet. Banks too find bulk SMS service very useful to
21
The implementation of enhanced networks like 2.5G
subscriber.
22
The next major policy document, which was produced, was the
process of liberalization.
Year Event
basic services
from 4 metros
23
The National Telecom Policy of 1994 document, which laid out
a state) for basic and 21 circles for cellular telephony. MuBBAi falls
that every circle will have one private operator apart from DoT/
BHARTI for basic and two operators for cellular. DoT/ BHARTI
Government did not achieve most of its stated targets. The basic
properly. The regulator TRAI was set up after delays and confusion
and even after its creation, DoT continued to fight with it in courts.
and allowing one private operator per Circle to compete with DoT.
1997. A new Policy for Internet Service Policy Providers (ISPs) was
25
Compa
ny
Profile
26
COMPANY PROFILE
Vision
best technology in the world and put it at the service of our ultimate
These are the premise on which Bharti Enterprises has based its
and services.
ranging from being the first mobile service in Delhi, first private
27
3.21 million total customers nearly 2.88 million mobile and
networks.
mobile networks.
bandwidth.
strategic objective:
partners; and
29
Emphasize on human resource development to
Businesses
Mobile services
Fixed-line
Competitive Strengths
30
Focus on telecommunications to enable the Company
Brand Architecture:
architecture to:
31
Error: Reference source not found X
the country.
operations.
telephony
Though the costs of creating new brands are heavy but the
Brand Strategy:
32
When the brand was launched seven years ago, cellular telephony
Sachdev says that such a strategy would not have worked for the
simple reason that the value from using the phone at the time was
successful men with their laptops and in their deluxe cars using the
aspirational brand that was meant for leaders, for customers who
there were three core benefits that were clearly associated with the
and roughly the same level of service and schemes, it had now
The leadership series was okay when you were wooing the crme
Delhi with a base of 3.77 lakh (it now has 1.2 million customers).
34
And with tariffs becoming more affordable as cell companies
How could Bharti leverage this leadership position down the value
That is precisely what the brand tried to achieve through its new
Bharti has also understood that one common brand for all cellular
operations might not always work in urban markets that are now
and for those who are young at heart. With its earlier positioning,
there was nothing for younger people. With Youtopia, AirTel hoped
to reverse that.
time when they make the maximum number of calls. It also set up
36
merchandising exercises around the scheme like a special
The idea was to bring Internet and mobile in perfect harmony. The
name was chosen from the popular movie title It Takes Two To
37
connectivity on the mobile phone which AirTel is expected to
launch soon.
The Magic:
the pre-paid card. The idea was to make the brand affordable,
PHASE I
into the market and assure him that he would have to pay only if he
simple to operate.
38
Two, the product was made accessible and distributed
sensibilities.
This apart, the company roped in Karisma Kapoor and Shah Rukh
Khan for a major ad campaign all across Delhi, a ruse that saw the
inclined to opt for mobile services. But now, with basic service
While the exact strategy is under wraps, insiders say the new
card.
PHASE II -
created to connect the category to the lives of the SEC B & SEC
everyday life.
want to make all their dreams, hopes & desires come alive
life in a way never possible before. Indeed, anything that you think
this effectively.
the tone, manner & language of the masses. The Mumkin hai
41
value proposition will help us expand the market and gain a higher
work and the sheer ability to make a mark in such a short time.
Both these stars have said Mumkin hai and made it happen for
themselves.
The genre of this new strategy & campaign is Hindi cinema led.
sets his eyes on Kareena Kapoor and wins her love with the help
won).
42
The strategy & new brand campaign is targeted at the large
PHASE III -
First time ever in India - any pre-paid card brand gives such
43
Youth based - romance driven strategy platform makes the
come alive
unveiled its strategy for market expansion with the launch of its
their lives.
want to make all their dreams, hopes & desires come alive
you befriend the world and opening up new horizons. It gives you
Magic. The new brand slogan Aisi azadi aur kahanhas been
Amount Talk
44
Service Processing Time Validity
Tax
Talk
( Rs.) Tax
45
(8%) Fees(Rs.) (Rs.) (Days)
850 62.96 150 637.04 60
900 66.67 150 683.33 60
1000 74.07 150 775.93 60
1080 80 150 850 60
1200 88.89 150 961.11 60
1300 96.3 150 1053.7 60
1400 103.7 150 1146.3 60
1500 111.11 150 1238.89 60
1800 133.33 150 1516.67 60
2000 148.15 150 1701.85 60
2160 160 150 1850 60
3000 222.22 150 2627.78 60
5000 370.37 300 4329.63 366
6000 444.44 300 5255.56 366
7000 518.52 300 6181.48 366
8000 592.59 300 7107.41 366
9000 666.67 300 8033.33 366
9999 740.67 300 8958.33 366
YOUR TALK TIME = MRP - PROCESSING FEE -
SERVICE TAX
Other Brand Building Initiatives:-
46
It will also launch a unified billing system across circles
computers.
an Airtel community.
between Rs 5 to Rs 7.
outlets (for its services) and about 250 Airtel Points which
48
20 minutes. In comparison, the competition takes two to four
hours.
pre-paid cards more attractive. Keeping the entry cost low for
just swiping a card. The system will not only save users the
49
Bharti Televentures has tied up with 'Waiter on wheels,'
50
assist customers with any service on priority basis. Besides
of cost.
51
Bhartis View on its Branding strategy:-
consumer goods and services) across the world are more informed
52
more choices and higher media clutter, businesses need to budget
It is, however, crucial to note that in the years to come, not only will
brand will continue to rise but also the time taken to do so will be
53
Objectiv
e of the
Study
54
OBJECTIVE OF THE STUDY
industry.
55
Researc
h
Methodo
logy
56
RESEARCH METHODOLOGY
wherever needed.
Questionnaire Method
Observation Method
The main tool used was, the questionnaire method. Further direct
57
Procedure of research methodology
ended questions.
conducted.
# Internet
58
# Magazines
# Newspapers
# Journals
# Bharti Circulars
59
Findings
and
Analysis
60
FINDINGS AND ANALYSIS
As we
can
see
from
the
above
graph,
the people who are in the age group of 21-28 years are the ones
who are the maximum users of mobile phones. This segment is the
people. They are 65% of the total people who were interviewed.
The next age group are the people who are 28-35 years old. They
are 20% of the total. They are those who are at home or have
small business units etc. And the next age group is the youngest
generation who are 15-21 years old. They are school and college
going students and carry mobile phones to flaunt. They are 15% of
61
Occupation Graph
As the above graph shows that 55% of the total people interviewed
are working. So, these people are the ones who are the maximum
managers, Tele - callers etc. who require mobile for their official
housewives, small units which operate from their homes etc. They
are 20% of the whole . The next segment is the students. They are
15% of the whole. And 10% of the whole is a category who are the
professionals.
62
Service Provider Graph
The above graph shows a slice of 50%. These are the total no. of
people who are using Airtel. It seems that people are more aware
of Airtel than any other brand. The next popular brand is Hutch.
came very late in the market when Airtel had established it self
very well. So, that could be one of the reasons of such a low
63
As the above graph clearly shows that customer services at Airtel
seems poor. 60% of the people are dissatisfied with the customer
services provided by Airtel. They are the ones who have the
maximum share in the market but they are lagging behind in the
mind of the consumer. He can even switch over his brand. 20% of
64
Cash
the total mobile users were having cash card connections. This
means that the cash cards should be easily and readily available in
the local markets. Airtel should make sure that Magic is available in
each and every nook and corner of the market. 15% of the people
65
Monthly expense graph
spend RS 300 per month as their monthly mobile expense. And the
the ones having sim connections or having cash cards and having
66
Awareness About WLL Graph
WLL seemed to be a new word for many of the people. 45% of the
get the answer for this question they were first explained the
67
Reliance was the brand which was popular amongst the
and has it banners and hoarding spread all over Delhi. So, this
could be one the reasons of its popularity. Tata was hardly a known
maximum no. of people who use mobile phones are in the age
group of 20 to 28. who are the young executives and other office
goers.
68
There are more no. of prepared cards than post paid cards. The
Now when I compared Airtel with its competitor from the point of
view of the consumer I found that on the basis of Tariff plan, value
lag behind there competitors. As, Airtel has a hold in the market
people are aware about it but not many people are aware about
Tata. They only Know more about Reliance. People at this point of
69
Suggest
ions
70
SUGGESTIONS
1. PRODUCT
*Modification must be brought about in AIRTEL, in
terms of quality. Its demand should be increased.
2. PLACE
* The brands must be made available easily in, PCO
& general stores.
3. PROMOTION
*Company must undertake extensive promotional
activities like advertisements must be released in
different Medias to create brand awareness.
*Free samples should be distributed among the
prospects. Sales promotion tools like gifts, contests
and coupons must be given to retailers as well as
customers and prospects.
* Catalogues should be distributed among
customers.
71
SWOT
Analysis
72
SWOT ANALYSIS
Strengths
margins.
Weakness:
price segment.
73
No separate strategy for rural market.
Opportunities:
diversification.
coming years.
Threats
depressed scenario.
74
would have significant impact on costs and margins of the
company.
cost.
75
RECOMMENDA
TION
76
RECOMMENDATION
77
The company should offers such rate in the
market so that it may able to catch a biger market
share and it should be able to compete with the local
traders and commission agents while having a brand
name.
The company should take the opinion of exporters from
time to time to know what problems they are facing from
the companys side? And if any change they require in
present supplying condition?
78
LIMITATI
ON
79
LIMITATIONS
the queries.
duration.
80
7. Lack of proper information and experience also
81
CONCLUSI
ON
82
CONCLUSION
mobile are in the age group of 20 to 28. Cash cards are the most
As we know that now airtel has already launched its product with
83
BIBLIOGRAPHY
84
BIBLIOGRAPHY
Web Sites have been referred. All the material detailed below
text report.
Websites:
www.airtelworld.com
www.google.com
www.india.com
Magazines:
85
86
Question
naire
87
QUESTIONNAIRE
Dear Sir/Madam,
I am a student of BBA of Krishna Institute of
Engineering & Technology, Ghaziabad, doing my summer training
project on consumer behavior from Airtel. Please give your
precious time for filling these details.
Q.1 For how long you have been using Airtel Product?
0-2 Years
2-5 Years
5-10 Years
More than 10 years
Yes
No
Idea
Hutch
Airtel
Idea
Hutch
Airtel
88
Q.5 Do you collect any information search before making
purchase?
Yes
No.
89
Q.6 If yes, which sources are used?
Magazines
Dealers
Sales Executives
Operators reference
Pamphlets and catalogue
Reference from friends and relatives
Any other
Q.7 What are the features you look for in a product before
making purchase decision? Give preferences (1-Highest, 6-
least)
Brand credibility
Price and Discount
After sales services and parts, network
Value for money
Vehicle performance
Add on features or ergonomics of design
Good Network
Discount scheme
Service package
Any other
________________________________________________
___
________________________________________________
___
________________________________________________
___
90
________________________________________________
___
Customer Care
By Ad Films
By Camp
24 hrs call center services
Q.12 What are you suggestions for improving the product quality,
service availability and parts availability?
________________________________________________
________________________________________________
________________________________________________
________________________________________________
____________
91
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