Comperative Analysis Bt Airtel Voda Phone

ACKNOWLEDGEMENT I ………………. , sincerely thankful to all those people who have been giving me anykind of assistance in the making of this project report. I express my gratitude to ………………, who has through her vast experience andknowledge has been able to guide me, both ably and successfully towards thecompletion of the project. I express my gratitude to Sri Balaji College of Engineering &Technology, JaipurI would hereby, make most of the opportunity by expressing my sincerest thanks to allmy faculties whose teachings gave me conceptual understanding and clarity ofcomprehension, which ultimately made my job more easy.
Credit also goes to all myfriends whose encouragement kept me in good stead. Their continuous support hasgiven me the strength and confidence to complete the project without any difficulty. Last of all but not the least I would like to acknowledge my gratitude to therespondents without whom this survey would have been incomplete. I am also thankful to authority of Airtel & Vodafone for providing me the information. CONTENT 1. Acknowledgement 2. Contents 3. Declaration 4. objectives of the study 5. introduction of the topic • Telecom sector in India • Airtel • Vodafone • Background Company profile of Airtel • The magic • Comparison between marketing strategy of Bharti Airtel and Vodafone 6. Research Methodology • Type of research methodology • Data collection method • Method of collection 7. Data Analysis and Interpretation 8. Swat analysis 9. Suggestion & Conclusion 10. Recommendations 11. Bibliography 12. Questionnaire Declaration I, …………………….. Being a student of MBA(HR & MKT) 5th Trimester of School of Business, ITM university, Gwalior Hereby declares that the project report under title “Comparative Analysis of Marketing Strategies of Vodafone & Airtel. Is my own work it is the analysis of the big scale sector of communication. This project involves the big scale services involved in telecommunication sector provided by Airtel and Vodafone to its customers. The survey was conducted so as to analyze the big scale sector prevailing in the current industry and the improvement that can be made upon it. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.
Thank You OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals. For this it is very essential for an organization to know about the view of consumers and their competitive products. This survey research may be also aimed as to estimate potential buyer for the product. The objective of the study is as under:- 1. To identify the difference between market performance of Airtel industry and Vodafone. 2. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector. 3.

To compare various parameters of marketing strategies, manufacturing process, technology adopted production policy, advertising, collaboration, export scenario, future prospect for the two companies and government policies. 4. To study customer buying behavior and factors which influence the purchase decision process. 5. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. [pic] [pic] Telecom Sector In India Than 125 million telephones network is one of the largest communication networks in world, which continues to grow at a blistering pace.
The rapid growth in the telecom sector can be attributed to the various pro-active and positive policy measures taken by the government as well as the dynamic and entrepreneurial spirit of the various telecom service providers both in private and public sector. The telecom sector has shown impressive growth during the past decade. Today, more Two striking features of this growth viz. increasing preference for mobile phones and higher contribution of private sector in the incremental growth have pre dominated the telecom sector.
The share of mobile phones (including WLL mobile) has overtaken the share of landlines with 62% in the total number of phones. The private sectors contribution is also increasing rapidly. Currently more than 30 lakh phones are being added each month and it is targeted that by the end of 2010 the total number of phones may reach a level of350 million taking the tele-density to more than 30% which is currently at 24. 63%. Network Expansion: The total number of telephone subscribers has reached 281. 62million at the end of January 2010 as compared to 232. 7 million in July 2009. The overall Tele density has increased to 23. 63% in January 2010 as compared to 21. 20% in August2009. Wireless Service: The wireless segment saw a surge of 78. 77 million subscribers last month compared to 78. 17 million in Mar. 2010. This pushed the total wireless subscribers base to 282. 40 million by Apr. 31 2010. Wire line Subscribers: The wire line segment subscriber base stood at 39. 73 million with a decrease of 0. 16 million at the end of Apr. 2010. Tele density: The gross subscriber base reached 206. 83 million at the end of March 2009.
The Tele density is 24. 63%at the end of Apr. 2010 as compared to 18. 31% at the end of March 2009, registering an increase of 6%. Increasing Role of Private Sector: The private sector has played a significant role in the growth of telecom sector. The share of private sector has risen to 85 per cent in December2009 from 64. 14 per cent in November 2008. Tariff Rebalancing Measures: There has been a dramatic fall in the tariffs due to increased competition. The minimum effective charges for local calls have fallen considerably in recent months especially for cellular service.
The long distance domestic as well as international charges have also fallen considerably. Telecom Regulatory Authority of India (TRAI): TRAI was established under the Telecom Regulatory Authority of India Act, 1997 enacted on March 28, 1997. The goals and objectives of TRAI are focused towards providing a regulatory framework that facilitates achievement of the objectives of New Technology Policy (NTP) 1999. TRAI has endeavored to encourage greater corporation in the telecom sector together with better quality and affordable prices.
AIRTEL Airtel is a brand of telecommunication services in India operated by Bharti Airtel. 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, Internet Connectivity (DSL) and Leased Line, Airtel Digital TV, Airtel Money ), Long Distance Services and Enterprise Services (Telecommunications consulting for corporate).
It has presence in all 23 circles of the country and covers 71% of the current population (as of FY07). Leading international telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel. VODAFONE Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India Despite the official name being Vodafone Essar, its products are simply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the countrys 23 license areas. Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16telecom circles in India . Despite the official name being Vodafone Essar, its products aresimply branded Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is especially strong in the major metros.
Vodafone Essar provides 2G services based on 900 MHz and 1800 MHz digital GSM technology, offering voice and data services in 16 of the country’s 23 license areas. INTRODUCTION OF THE TOPIC BACKGROUND The project is an extensive report on how the Airtel Company markets its strategies and how the company has been able in tackling the present tough competition and how it is scooping up by the allegations of the quality of its products. The report begins with the history of the products and the introduction of the Airtel Company.
This report also contains the basic marketing strategies that are used by the Airtel Company of manufacturing process, technology, production policy, advertising, collaboration, export scenario, future prospect and government policies. The report includes some of the key salient features of market trend issues. In today’s world of cutthroat fierce competition, it is very essential to not only exist but also to excel in the market. Today’s market is enormously more complex. Hence forth, to survive in the market, the company not only needs to maximize its profit but also needs to satisfy its customers and should try to build upon from there.
COMPANY PROFILE OF AIRTEL Vision : “As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of ourultimate user: our customer. “These are the premise on which Bharti Enterprises has based its entire plan of action. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, Bharti has been a pioneering force in the telecom sector.
With many firsts and innovations to its credit, ranging from being the first mobile service in Jaipur, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti had approximately 3. 21 million total customers – nearly2. 88 million mobile and 334,000 fixed line customer’s. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Jaipur, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala,
Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has fixed-line operations in the states of Madhya Pradesh and Chhattisgarh, Haryana, Jaipur, Karnataka and Tamil Nadu and nationwide broadband and long distance networks. Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India’s mobile networks. The Company is also implementing a submarine cable project connecting Chennai-Singapore for providing international band width.
Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. Bharti Tele-Ventures strategic objective is “to capitalize on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services”. The Company has developed the following strategies to achieve its strategic objective :- Focus on maximizing revenues and margins • • Capture maximum telecommunications revenue potential with minimum geographical coverage • Offer multiple telecommunications services to provide customers with a “one-stop shop” solution • Position itself to tap data transmission opportunities and offer advanced mobile data services • Focus on satisfying and retaining customers by ensuring high level of customer satisfaction • Leverage strengths of its strategic 98*/and financial partners; and • Emphasize on human resource development to achieve operational efficiencies. Businesses
Bharti Tele-Ventures current businesses include – • Mobile services, Airtel M • Fixed-line • National and international long distance services • VSAT, Internet services and Network solutions. • Broadband services with DSL and Wi-Fi network Competitive Strengths:- Bharti Tele-Ventures believes that the following elements will contribute to the Company’s success as an integrated telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy: • Nationwide Footprint – approximately 92% of India’s total mobile subscribers resided in the Company’s fifteen mobile circles.
These 23 circles collectively accounted for approximately 56% of India’s land mass • Focus on telecommunications to enable the Company to better anticipate industry trends and capitalize on new telecommunications-related business opportunities. • The strong brand name recognition and a reputation for offering high quality service to its customers; • Quality management team with vision and proven execution skills; and • The Company’s strong relationships with international strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian Infrastructure Fund Group and New York Life Insurance.
Brand Architecture Bharti is working on a complex three-layered branding architecture — to: •Create specific brands for each service, •Build sub-brands within each of these services and •Use Bharti as the mother brand providing the group its corporate identity as well as defining its goal to become a national builder of telecoms infrastructure. [pic] [pic] Airtel – The flagship brand for cellular operations all across the Indian country. Touchtel – The brand earmarked for basic service operations. India One – The brand for national long distance (NLD) telephony
Though the costs of creating new brands are heavy but the group wants to create “distinct independent brands to address different customers and profiles”. Brand Strategy: To understand the brand strategy, let’s first look at the brand building exercise associated with Airtel — a brand that had to be repositioned recently to address new needs in the market. When the brand was launched seven years ago, cellular telephony wasn’t a mass market by any means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep — sometimes as much as buying a second-handcar.
Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. But 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 not commensurate with the cost. “Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand,” he explains. So the Airtel “leadership series” campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone.
In simple terms, it meant Airtel was positioned as an inspirational brand that was meant for leaders, for customers who stood out in a crowd. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand — leadership, dynamism and performance. These were valuable qualities, but they only took Airtel far enough to establish its presence in the market. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience.
And the various brand-tracking exercises showed that despite all these good things, there was no emotional dimension to the brand — it was perceived as cold, distant and efficient. Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. The reason with tariffs identical to competitor Vodafone telecomm and roughly the same level of service and schemes, it had now become important for Bharti to “humanize” Airtel and use that relationship as a major differentiation.
The brand had become something like Lufthansa — cold and efficient. What they needed was to become Singapore Airlines, efficient but also human. A change in tack was important because this was a time when the cellular market was changing. The leadership series was okay when you were wooing the creme de la creme of society. Once your eached them you had to expand the market so there was need to address to new customer’s. By that time, Bharti was already the leading cellular subscriber in Jaipur with a base of 3. 77 lakh (it now has 1. 8 million customers).
And with tariffs becoming more affordable — as cell companies started cutting prices — it was time to expand the market. How could Bharti leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customer’s minds was also changing. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives — it was, again, a relationship game that needed to be reflected in the Airtel brand. Also, a survey showed that 50 per cent of the new customers choose a mobile hone brand mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. That is precisely what the brand tried to achieve through its new positioning under the Airtel “Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile users surrounded by caring family members. Says Sachdev: “The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. As it looks to expand its cellular services nationwide —to eight new circles apart from the seven in which it already operates — Bharti is now realizing that there are new compulsions to rework the Airtel brand, and a new exercise is being launched to this effect. Right now, the company is unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning Airtel as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country.
Airtel is becoming more humane and more sensitive as a brand, Bharti has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated. To bring in new customers, the company decided that it needed to segment the market. One such experiment, launched last year, is You topia, a brand aimed at the youth in the 14 to 19 age bracket and for those who are “young at heart”. With its earlier positioning, Airtel was perceived as a brand for the well-heeled older customer; there was nothing for younger people.
With Youtopia, Airtel hoped to reverse that. In order to deliver the concept, Airtel offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers — a time when they make the maximum number of calls. It also setup merchandising exercises around the scheme — like a special portal for young people to buy things or bid for goods. The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper for young people to use.
The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name. The brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. “The name was chosen from the popular movie title It Takes Two to Tango: basically, you need the two services to tango to offer customers a new choice”, says Sachdev. This, however, had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services.
Subsequently, the ads were withdrawn, but the company re-iterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services — or permanent Internet connectivity on the mobile phone — which Airtel is expected to launch soon. THE MAGIC Perhaps the more ambitious experiment has been with Magic — the pre-paid card. The idea was to make the brand affordable, accessible and, most importantly, feasible as a means of expanding the market even faster. PHASE I – Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call.
Such a customer used the phone sparingly — mostly for emergencies — and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges). To achieve its objectives Bharti did three things. • One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings attached and was simple to operate. • Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. Third, to make the product more “approachable” to the customer, the company came with vernacular ad campaigns Like “Magic Daalo Say Hello” which appealed to local sensibilities. This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Jaipur, a ruse that saw the number of subscribers go up from 5. 47 lakh to 1. 2 million to days’, overtaking Essar’s branded pre-paid card Speed, which was launched much ahead of Magic. The company is now re-working its Magic strategy even further.
Earlier, the branding strategy was aimed at roping in only interested customers — that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having been allowed limited mobility at far cheaper rates, mobile service providers could find themselves under threat again. That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under wraps, insiders say the new branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card.
PHASE II – Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • First time ever in India – any pre-paid card brand goes on TV • A combination of the film genre exposed through the TV medium designed to connect with the masses of India • Youth based – romance driven strategy platform makes the value proposition of Airtel Magic – ‘Mumkin Hai’ come alive • All elements – user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment – the middle class non-mobile user • Airtel Magic positions itself on the platform of being excellent for emergency situations – increasing productivity as a part of everyday life. • Sharukh Khan makes ‘everything in life possible’ while romancing pretty Kareena Kapoor with Airtel Magic, India’s leading pre-paid mobile card. Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic hai to Mumkin hai’. The strategy is targeted at the non- user. Segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at accelerating market expansion.
The value proposition is centered around a person’s desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive… instantly. (At just Rs. 300/- per month Airtel Magic is so easy to buy. ) Improving productivity, letting you be friend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before.
Indeed, anything that you think is possible is possible with Airtel Magic. The new brand slogan ‘Magic hai to Mumkin hai’ has been specially created to capture this effectively. This strategy is designed to help us talk to this segment directly in the tone, manner & language ofthe masses. The “Mumkin hai” value proposition will help us expand the market and gain a higher percentage of market shares in the process. The brand ambassadors Shahrukh Khan and Kareena Kapoor embody this ‘can do’ or “MumkinHai” spirit (infact that is the reason they were selected as brand ambassadors).
Sharukh rose froma TV actor to become India’s top film star and national heartthrob. Kareena’s success is due to her‘attitude’, talent, hard work and the sheer ability to make a mark in such a short time. Both thesestars have said ‘Mumkin hai’ and made it happen for themselves. The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions across India. The spirit of romance, dancing… the Indian cinema, well known to most as Bollywood, holds millions of Indians together as one.
The new TV campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the empowering optimism of “Mumkin Hai”, in the endearing situation of a boy-girl romance. Where Sharukh Khan, sets his eyes on Kareena Kapoor and wins her love with the help of Airtel Magic. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won). The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A, B & C. The estimated addressable market of such customers in the next two years is around 25 million in Airtel’s 16 states.
The new strategy aims at correcting the perception that the mobile category is useful mainly for ‘business’ or ‘work’ related scenarios. The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of Airtel Magic’s new multi-media campaign. The campaign has been created by Percept Advertising. PHASE III – Bharti used Airtel Magic to build a strong value proposition and accelerate market expansion through India’s first national pre-paid card TV brand campaign • First time ever in India – any pre-paid card brand gives such freedom to recharge any value A combination of the film genre exposed through the TV medium designed to connect with the masses of India • Youth based – romance driven strategy platform makes the value proposition of Airtel Magic – ‘Aisi azaadi aur kahan? ” come alive • Sharukh Khan Makes ‘everything in life possible’ Airtel today unveiled its strategy for market expansion with the launch of its new Airtel Magic pre-paid card brand campaign – ‘Magic Hai to Mumkin Hai’. . The value proposition is centered on a person’s desire to make all his / her dreams, ambitions & aspirations instantly possible.
The new campaign for Airtel Magic is all about empowering millions of Indians to be on top of their lives. The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive… instantly . At a amount of your choice you can recharge your account with available validity time . Improving productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before. Indeed, anything that you think is possible is possible with Airtel Magic.
The new brand slogan ‘Aisi azadi aur kahan’ has been specially created to capture this effectively. Other Brand Building Initiatives:- The main idea is to stay ahead of competition for at least six months. Working on the above game plan Bharti is constantly coming up with newer product offerings for the customers. The focus, of course, is to offer better quality of service. • To make the service simpler for customers using roaming facilities, Airtel has devised common numbers for subscribers across the country for services like customer care, food services and cinema amongst others. It will also launch a unified billing system across circles so, customers moving from one place to another do not have to close and then again open new accounts at another place. • To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questions and their answers have been stored on the computers. • Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card segment. So, they must be given value-added products and services which competitors don’t provide. Bharti, for the first time for a cellular operator, has decided to offer roaming services even to its pre-paid customers, but the facility would be limited to the region in which they buy the card. To ensure that customers don’t migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), the company is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone. • The loyalty program will not be only for a ‘badge value’, it will provide real benefits to customers. The idea is to create an Airtel community. Another key area which Bharti is concentrating its attention upon is a new roaming service launched in Jaipur under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network • The company also offers multi-media messaging systems under which customers having a specialized phone with a in-built camera can take pictures and e-mail it to friends or store it in the phone. The cost per picture is between Rs 5 to Rs 7 .• Bharti is also aware that it has to make owning a ready-to-use cellular service much easier than it is today.
A key area is to increase the number of activation centers. Earlier Bharti had 250 Airtel Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which were kiosks in larger shops. Now activation can be done by all of them, and not only by Connect outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours. • Pre- paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. First, they are easier to obtain and convenient to use. Unlike post-paid, one need not pay security deposits for picking up a pre-paid card.
It is often available even with paanwalas. As befits a fast-moving consumer service, the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic alliances. Bharti is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low for consumers and making recharging more convenience. • Bharti is in the process of launching a new system in alliance with Mumbai-based Company Venture InfoTech which will enable a pre-paid card user to renew his subscription by just swiping a card.
The system will not only save users the hassle of going out and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards. • Bharti Tele ventures has tied up with Waiter on wheels, a company delivering food. at home, to reach its Magic pre-paid cards to subscribers doorsteps. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. Apart from improving the convenience of recharging, mobile operators are beefing up their distribution channels.
The company is constantly innovating to enhance the value proposition for its pre-paid service. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile on the Spot) subscribers. • Bharti Cellular has also launched a special service, Care Touch, for high-value, corporate customers, providing them with instant, single-point access for any assistance they require. Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, and value-added services without any additional paper work.
Bharti. Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Dedicated ‘Care Touch’ executives are expected to assist customers with any service on priority basis. Besides the regular proactive reminder calls for bill payment, customers can also call Care Touch for bill payments at free of cost. • Airtel presented MTV Inbox :- the first ‘on-air’ SMS based interactive music dedication show exclusively for Airtel and Airtel Magic customers. Highly interactive VJ based show with real-time feedback mechanism.
Both brands joined hands to target the high growth youth segment. Bharti’s View on its Branding strategy :- First, brand building efforts in today’s context have to be seen in a more holistic manner. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. Unflinching orientation to customer needs is the second key success factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at the same time, becoming more individualistic in their needs and far more demanding with the passage of time.
Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs, and then reacting in “real-time” are essential to attract and retain customer loyalty — a key element of creating brand equity in the present situation. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer sub-segments is the third element in creating brand appreciation. As far as allocation of time and financial resources are concerned, too many companies mistake nly allocate a disproportionate amount on mere advertising and promotion.
This is not to say that advertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide “reengineering” of the business philosophy and core design, production, and delivery operations for the product itself. The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself becomes more competitive.
This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. It is, however, crucial to note that in the years to come, not only will the cost of building a regional or a national (or an international) brand will continue to rise but also the time. taken to do so will be longer and will need sustained and focused efforts. Comparison of marketing strategies Between Bharti Airtel and Vodafone. • Purpose of comparison The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti Airtel and its rival Vodafone • The comparison shows how both of the companies have been challenging each other to gain market shares. Why comparison with vodafone • Bharti Airtel is the leader in telecommunication sector. • Bharti Airtel holds the lion share of market of communication sector. • However, Vodafone has been giving tough competition to Bharti Airtel. • Vodafone is the second largest player and share holder in Communication sector. • Since its launch Vodafone has been adopting aggressive marketing strategies. The comparison shows how Hutchison Essar Telecom. Captured 22% market share in one month of its first launch of postpaid subscription in 2002. AD. • With a different technology Vodafone creates its own market. • Vodafone Today deals in every business of communication sector. . • Vodafone making and changing the strategies to capture the market shares Brand positioning by Bharti Airtel Market segmentation • Geographical segment (metropolitans & cities India & Out of Country) • Demographic segment – middle income groups • People age group of 20 to 28 year Target marketing • People who living in cities and towns. Poor or middle income group people. • Youngsters in big cities. • Businessmen Positioning • Creating brands (Sharukh khan, Sachin Tendulker, Saif ali Khan and Karina Kapoor. etc. ) • Ads and promotions – ( “Jo Tera Hai Wo Maira hai” “Har Ek Friend Jaroori Hota hai”) • Promotion for study of poor childrens. Marketing mix • Price : low price strategy • Place: maximum outlets and service centers • Product: verities available for various groups(Airtel Pre Paid, Airtel DigitalTV, Airtelmoney) • Promotion: various schemes for pre-paid and post-paid and Broad Band and
MARKETING STRATEGIES OF VODAFONE. Vodafone target the rural India The main targeted customers of Vodafone are from rural India. By offering cheap and light mobile sets Vodafone attracts most of the customers of small villages and towns. Offering cheap handsets Vodafone offers cheap and free connections to all customers. The cost for these sets was Rs-799-849-1099set and onward. Free support and services In every district and big towns Vodafone opens its service centers to provide better support and services. Strong logistics and supply chain Vodafone has a strong logistic and supply all over India.
In every small town the potential customers can easily purchase the Vodafone SIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters by offering colorful handset at very low prices. BRAND POSITIONING BY VODAFONE Market segmentation Geographical segment (rural India) Demographic segment – middle income groups Target marketing People living in small towns and villages. Poor and middle income groups. Youngsters in big cities. Businessmen Positioning Creating brands Ads and promotions Marketing mix Price: low price strategy Place: maximum outlets and service centers
Product: verities available for various groups Promotion: various schemes for pre-paid and post-paid Services provided by Bharti Airtel • Mobile services with GSM technology (Prepaid) • Airtel Digital TV (DTH) • Airtel Money ( M – Commerce – Mobile Wallet) • Fixed-line connections • National and international long distance services • VSAT, Internet services, Hello Tunes and network solutions • Broadband services Services provided by Vodafone. • mobile services with GSM technology • fixed-line telephone services • Universal Internetworking • VoIP (Voice over Internet Protocol) • Interactive Television Visual Communication • Broadband Portal • Telecommuting RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject. The prime objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the impact of WLL on Airtel. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed. Primary data was collected using the following techniques
Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face-to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Type of Research Methodology EXPLORATORY: TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE; THEOBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREAWHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THECOURSE OF ACTION TO SOLVE IT.
FOR THIS PURPOSE THE INFORMATION PROVEDUSEFUL FOR GIVING RIGHT SUGGESTION TO THE COMPANY. DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION. PRIMARY DATA SECONDARY DATA Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face- to-face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.
THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWING POINTS: – • GIVING THE RESPONDENTS. CLEAR COMPREHENSION OF THE QUESTION. • INDUCING THE RESPONDENTS TO CO-OPERATE. • GIVING INSTRUCTIONS AS TO WHAT IS NEEDED. • IDENTIFYING THE NEEDS TO BE KNOWN. Scope of the study • To conduct this research the target population was the mobile users, who are using GSM technology. • Targeted geographic area of Gwalior/ URBEN. Sample size of 50 persons was taken. • To these 50 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions. • The date during which questionnaires were filled. Some dealers were also interviewed to know their prospective. Interviews with the managers of GSM service providers were also conducted. • Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, Bharti’s history, current issues, policies, procedures etc, where ever required. • Internet • Magazines • Newspapers • Journals • Bharti Circulars Store / Airtel Relationship Center / Airtel Store / Distributors • Bharti News Letters • Vodafone Store / Distributors • Vodafone Mini store Data analysis And Interpretation
Subscriber numbers in (mn) held by Vodafone and Airtel |YEAR |FEB. – 2013 (Million) |DEC. – 2012 (Million) |DEC. – 2011 (Million) | |AIRTEL |186. 62 |181. 91 |175. 65 | |VODAFHONE |149. 89 |147. 48 |147. 75 | MARKET PLAYERS IN TELE COMMUNICATION | |Market Share – Feb. 2013 |Market Share – Dec. |Market Share – Dec. 011 | | | |2012 | | |Bharti Airtel |28. 18 % |27. 68 % |12. 54 % | |Vodafone |22. 64 % |22. 44 % |11. 83% | |Reliance Comm. | | | | |Idia Cellular |17. 8 % | | | [pic] [pic] FINDINGS AND ANALYSIS Age Group Graph 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 one which gives maximum business to the mobile operators. This segment constitutes the young executives and other office going people. They are 65% of the total people who were interviewed. The next age group is 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 are15% of the total interviewed people. Occupation OCCUPATION • STUDENTS 15% • EXECUTIVES 55% • HOUSEHOLDS 20% • OTHERS 10% As the above graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele – callers etc. who require mobile for their official purposes.
The next category is the households, who are either housewife, 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 categories who are the professionals. Service Provider These are the total market share of mobile user or people captured by the mobile provider company. There two major company in mobile phone service sector Vodafone and Airtel who respectively hold the market share with other company as 29% and 23% of total market user segment of mobile customer. Customer Service At Airtel CUSTOMER SATISFACTION LEVEL FULLY 20% • PARTIALLY 10% • DISSATISFIED 60% • FULLY DISSATISFIED 10% 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 customer services. 10% of the people were fully dissatisfied with the customer services of Airtel. This could leave an impact on the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially satisfied with the customer services and only 0% seem to be fully satisfied with Airtel’s customer services, which is a very small amount. • Types Of Card: Cash cards seemed quite popular among the people interviewed. 85% of 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 were having sim connections which are the regular bill. • Monthly expense: People on an average spend RS 500 per month as their mobile phone expense. 4% people spend Monthly Expense 12% 24% Rs 600 Rs 450 Rs 200 64%this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12% had an expense more than RS 1000, they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles. • Awareness about WLL: WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of such a technology. So, in order to get the answer for this question they were first explained the concept. Only, 55% people knew what WLL is all about. Awareness of WLL Players: 80% 70% 60% 50% Vodafone 40% Airtel 30% 20% 10% 0%Vodafone was the brand which was popular amongst the interviewed people. As Vodafone had done so much advertising and has it banners and hoarding spread all over Gwalior. So, this could be one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly, because of less promotions done by them as compared to Vodafone. On the basis of analysis of the questionnaire I have found that the maximum no. of people house mobile phones is in the age group of 20 to 28.
Who are the young executives and other office goers? They spend a maximum of RS 500 as their mobile expense. There is more no. of prepared cards than post paid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. 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 added services and billing accuracy Airtel is at par or ahead of its competitor but in the case of customer care and availability they lag behind their competitors.
As, Airtel has a hold in the market because it has the maximum no. of connections, so it must improve upon it customer services. As far as WLL is concerned people are aware about it but not many people are aware about Tata. They only know more about Vodafone. People at this point of time are not interested to switch over from GSM to WLL Customer Response towards Questionnaire • Which Brand you, prefer most? SERVICE PROVIDER | | | |AIRTEL |Yes | | |VODAFHONE | | | |RELIANCE | | | |TATA | | | |IDEA | | | • How long you have been using this Product? (0-2 Years (2-5 Years (5-10 Years More than 10 years • Are you using other product with Airtel? (Yes/ No
Here are the customer responses about the use of the Airtel product and other product rather than Airtel. in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in other telecom products in urban areas. •Do you collect any information search before making purchase? YES/ NO SWOT ANALYSIS Strengths • Being one of the largest companies in India the company has achieved a degree of focus in its core business of its products. • It has a strong brand name, superior quality products and an enviable distribution network. • It has a clear and well-defined organization structure and limits of financial authority. • Increase in advertisement spends affect the company’s margins. The company‘s bottom line falls victim to the bloated and highly paid workforce, which affects its margins. Weakness • Little efforts over the Advertising of products. • Distribution channel is not accurately categorized. • Premium priced products, hence can’t compete in low price segment. • No separate strategy for rural market. Opportunities: • The company’s financial performance can receive a major boost from its cost reduction efforts. • There is a lot of scope of product and market diversification. • Exports of products will also have huge chances in the coming years. • Airtel’s business has ample scope for gaining market share from the unorganized sector. Rural penetration too holds vast potential to bring about growth. Threats The slowdown in the economy has restricted top line growth of most FMCG majors and for Airtel also it will be difficult to maintain historical growth rates in such a depressed scenario. • Company’s major raw materials are influenced by government policies / controls as well as vagaries of the monsoons. Fluctuations in the prices of raw materials would have significant impact on costs and margins of the company. Moreover, inordinate hike in Broad Band Internet products would also increases company’s production and distribution cost. LIMITATIONS Limitation of project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:- 1.
During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/whole sellers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience due to short period of time. 8. Some retailers did not answer all the questions or do not have time to answer. SUGGESTIONS
Following are the few suggestions to AIRTEL for improving the market share and image of the products concerned. 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. 4.
PRICE Price should be as competitive as other company maintains Distribution of new connection should be in reach of customer pocket. CONCLUSION After analyzing the findings of the research, I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spends RS 500 on their connections. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department.
As we know that now Airtel has already launched its product with New logo and title – “ Aisi azaadi aur kahan” to “Dil Jo Chahe wo paas laye” than “Har ek friend jaroori hota hai” and in today days “Jo tera hai wo mera hai” has already became popular in market. So we can say that in spite of so many competitors in the market Airtel is having a good position just because every time, it tries its best to understand then of its important customers. From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti Airtel has to more work in every field of communication business. It is the time not only to survive but to sustain in the market for a long time. For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image. etc. Airtel has to take Vodafone.
Very seriously and update its own strategies from time to time and when the need arises. With aggressive marketing strategies Airtel has to target rural India as 70% of population of India lives in these areas. The other segment may be costumers of all age groups. RECOMMENDATIONS I have made following recommendation to the company after doing the summer training there: • The company should modify its credit policy as they only target the cash paying customers who are not easy to trace. • The company should emphasis more on the quality of Pharmaceuticals Products it was mostly claimed by the exporters that their receipts from company doesn’t matches with the sample’s quality shown before giving orders. The company should make its marketing strategy flexible enough in order to face competition. • The company should keep an eye on the proper delivery of the goods to exporter on time, as it has been recommended by exporters to make the delivery on time. • The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company. • The company should offers such rate in the market so that it may able to catch a bigger 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 company’s side. And if any change they require in present supplying condition? BIBLIOGRAPHY In this project report, while finalizing and for analyzing quality problem in details the following Books, Magazines/Journals and Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report. Books: Principles of Marketing – Philip Kotler & Kevin keller edi. 12Market Research – D. D. Sharma Research Methodology – C. R. Kothari Websites: www. Airtelworld. com www. google. com www. india. com www. Vodafone. in http://www. blonnet. om/2004/06/26/stories/2004062602180700. htm, Mumbai, June 25, 2004. com/companies/companies_r/Vodafone_infocom/20031104_stop-roaming. htm, 4 November 2003 Domain, Missed Call, at http://www. domainb Magazines: Airtel (2 July to 10 July 2011)Airtel India page of HT paper (Thursday 1December 2011) Cowards India (26 December to 4 Jan. 2011) QUESTIONNAIRE Dear Sir/Madam, I RAVI SHIVHARE student of MBA of I. T. M. University Gwalior (M. P. ) I am doing my project on “Comparative analysis of marketing strategy of Vodafone and Airtel”. Please give your precious time for filling these details. Q. 1 Name those companies which provide telecom (services now a days? Airtel (Vodafone (Reliance (TATA Idea ( Q. 2 which mobile company services you are using now a days? (Airtel (Vodafone (Reliance (TATA Idea Q. 3 Among them, which Brand (you, prefer most? (Airtel (Vodafone (Reliance (TATA Idea Q. 2 How long you have been using this Product? (0-2 Years (2-5 Years (5-10 Years More than 10 years Q. 3 Are you using other product instead of (Airtel? (Yes No Q. 5 Do you collect any information search before making purchase? (Yes No Q. 8 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 Q. 10 If you have to purchase a new connection or product in near future, which Brand will you go for and why? Q. 11 Are you aware of various promotional activities being run by Airtel, if yes then how? Are you satisfied with these promotional activities? Very Satisfied Somewhat Not Satisfied Satisfied satisfied ( Customer Care ( By Ad Films ( By Camp ( 24 hrs call center services Q. 12 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest? ) 1 2 3 4 5 ( After Sale service ( Maintenance ( Product as per expectation Q. 13 What are you suggestions for improving

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