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I.
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.
II.
III.
LIMITATIONS
There are some limitations in this project, limitations are as follows
Time Limitation.
Many telecom companies provide Telecom Services but only two companies are
considered.
IV.
RESEARCH METHODOLOGY
Primary data
Secondary data
PRIMARY DATA
1. Questionnaire method
2. Direct interview method and
3. Observation method
SECONDARY DATA
Refer to the data that has been already collected .the secondary data, which has been used to
carry out this study, are as follow:
Industry reports
PRODUCT RESEARCH
CHAPTER 1
OVERVIEW
1.1 INTRODUCTION OF TELECOM SECTOR
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 predominated 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 sector's
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 of 350 million taking the tele-density to more than 30% which is
currently at 24.63%.
India's telecom sector has shown massive upsurge in the recent years in all respects of industrial
growth. From the status of state monopoly with very limited growth, it has grown in to the level
of an industry. Telephone, whether fixed landline or mobile, is an essential necessity for the
people of India. This changing phase was possible with the economic development that followed
the process of structuring the economy in the capitalistic pattern. Removal of restrictions on
foreign capital investment and industrial de-licensing resulted in fast growth of this sector. At
present the country's telecom industry has achieved a growth rate of 14 per cent.
These
connected
Kolkata
(then
Calcutta)
and Peshawar in
the
north; Agra, Mumbai (then Bombay) through Sindwa Ghats, and Chennai (then Madras)
in the south; Ootacamundand Bangalore. William O'Shaughnessy, who pioneered
the telegraph and telephone in India, belonged to the Public Works Department, and
worked towards the development of telecom throughout this period. A separate
department was opened in 1854 when telegraph facilities were opened to the public.
In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and
The Anglo-Indian Telephone Company Ltd. approached the Government of India to
establish telephone exchange in India. The permission was refused on the grounds that
the establishment of telephones was a Government monopoly and that the Government
itself would undertake the work. On 28 January 1882, Major E. Baring, Member of
the Governor General of India's Council declared open the Telephone Exchanges in
Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange"
had a total of 93 subscribers in its early stage. Later that year, Bombay also witnessed the
opening of a telephone exchange.
CHAPTER 2
COMPANY PROFILE
2.1 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 our ultimate user: our customer."
A. HISTORY
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 nearly 2.88 million mobile and 334,000
fixed line customers.
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.
B. PROFILE
AIRTEL
TYPE
PUBLIC
INDUSTRY
TELECOMMUNICATIONS
FOUNDED
FOUNDER
HEADQUARTERS
NEW DELHI
KEYPEOPLE
PRODUCTS
NET INCOME
$966.21 BILLION
NUMBER OF EMPLOYEES
24,868(2016)
PARENT
BHARTI ENTERPRISES
Fixed-line connections
Broadband services
2.2 VODAFONE
Vision
Mobile technology is already a vital tool in peoples lives and our ambition is for Vodafones
mobile services to further improve peoples livelihoods and quality of life.
A. HISTORY
In 1980, Sir Ernest Harrison OBE, the then chairman of Racal Electronics, agreed to a
deal with Lord Weinstock of the General Electric Company to allow Racal to access
some of GEC's tactical battle field radio technology. The head of Racal's military radio
division, Gerry Whent, was briefed by Ernest Harrison to drive the company into
commercial mobile radio. Whent visited a mobile radio factory run byGeneral
Electric (unrelated to GEC) in Virginia, USA the same year to understand the commercial
use of military radio technology.
Vodafone was launched on 1 January 1985 under the new name, Racal-Vodafone (Holdings)
Ltd, with its first office based in the Courtyard in Newbury, Berkshire, andshortly thereafter
Racal Strategic Radio was renamed Racal Telecommunications Group Limited. On 29 December
1986, Racal Electronics issued shares to the minority shareholders of Vodafone worth
GB110 million, and Vodafone became a fully owned brand of Racal.
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B. PROFILE
VODAFONE
TYPE
PUBLIC
INDUSTRY
TELECOMMUNICATIONS
FOUNDED
1991
FOUNDER
RACAL MILLICOM
HEADQUARTERS
KEYPEOPLE
PRODUCTS
NET INCOME
EURO40.97 BILLION
NUMBER OF EMPLOYEES
107667(2016)
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12
CHAPTER 3
COMPARISON OF MARKETING STRATEGIES
3.1 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.
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 odafone. Today deals in every business of communication sector.
Vodafone making and changing the strategies to capture the market shares.
13
TARGETING- According to Airtels chief executive officer, Airtels main target market is
the middle income level youth who are living in the city areas. (Beckett)
14
THREAT
Airtel however is one of the most trusted telecommunication companies in India simply due
to the fact that it is one of the oldest companies in India. Also the fact that Airtel is solely an
Indian company serves well for Airtel as people would prefer what is theirs over a foreign
company. The brand image created by Airtel still keeps them in the forefront of the market
which Vodafone has not been able to reach until today. Analyzing Airtels strategy deeply we
need to understand that the strategic decisions taken by Airtel in 2002 have really pushed
them forward. The music composed by A. R. Rahmen in 2002 for Airtels television
commercial has been so catchy that it is even heard today in Airtels new television
commercials. This again is due to the fact that Airtel has focused on the cultural aspect of
India in their marketing.
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Geographic: The company provides different plans, tariffs and offers to different
customers depending on the state that they come from.
TARGETING- Vodafone is adopting a multi segment targeting. They are targeting the high end
user, low end user, the business professional as well as the common man.
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THREAT
This question was raised in 2007 to Sunil Mittal and he responded very confidently about Airtel.
He said that they dont expect Vodafone to be no different from Hutch. He also mentioned
Vodafone had in 2005 picked up around 10% stake in the Bharti group and that they were
released within minutes when requested by Vodafone. (Mookerji) However Mittal forgot to
realize that by Vodafone selling the 10% stake of Airtel back to Airtel, Vodafone got the
opportunity to re-invest at Hutch where knowledge and technology previously available to Airtel
moved into the hands of one of its competitors. Also it is understandable that Mittal took
Vodafone lightly and actually is starting to pay the price. It was reported this year that Vodafone
has overtaken Bharti Airtel in the rural areas of India. Vodafones total of 82.24 million rural
customers now just outstrips Bharti Airtels 82.16 million. However Vodafone has a long way to
go to catch up to Indias market leader; as of March 2013 Vodafone and Bharti have 152.3
million and 188.2 million respectively. That said, Vodafones growth is encouraging, with 2.47
million additions across the same month. Bharti meanwhile gained 1.57 million customers in this
period.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
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 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 the total interviewed people.
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2011
2012
2013
2014
2015
2016
3.19
4.62
5.50
6.54
10.98
14.07
Vodafone 1.82
4.19
6.24
7.26
10.45
12.99
Airtel
16
14
12
10
8
airtel
vodafone
6
4
2
0
2011
2012
2013
2014
19
2015
2016
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 23.01% and 28.18% of total market
user segment of mobile customer.
20
21
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.
The companys bottom line falls victim to the bloated and highly paid workforce,
which affects its margins.
WEAKNESS:
The company's financial performance can receive a major boost from its cost
reduction efforts.
Exports of products will also have huge chances in the coming years.
Airtels business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.
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THREATS
The slowdown in the economy has restricted topline growth of most FMCG majors
and for Airtel also it will be difficult to maintain historical growth rates in such a
depressed scenario.
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Worlds second largest mobile service provider by subscribers Vodafones customer base of
435 million in various parts of world is its biggest asset. It is either the market leader or is among
the top 3 service providers in every country. Such strong position often implies financial
leverage, larger capacity to absorb risks and greater capability to steer the market direction.
Geographically diversified business Looking closely at the countries listed above, it is easy to
conclude that Vodafone has a presence in all kinds of mobile markets. Developed markets like
Germany and UK bring bulk of revenue. Then there are markets like India that have immense
growth potential both in voice and data. So declining business in one region can be compensated
by growth in another.
WEAKNESS
Sluggish economic conditions in Europe The continent brings in about two-thirds of the
revenue for Vodafone. Consequently, the operator suffered when the European economy was
weak over the past few years. Some of the worst hit nations were Greece, Spain, Portugal,
Ireland and Italy. Incidentally,.
Cut throat competition everywhere In its homeland, Vodafone is pitched against EE (Orange
and Deutsche Telekom), Telefonicas O2 and Hutchisons 3 (Three) network. In Spain, it is up
against Telefonica owned Movistar and Orange. Telecom New Zealand and 2degrees are rivals
in New Zealand.
OPPORTUNITIES
Project Spring After returning money to shareholders and paying taxes, Vodafone still made a
net profit of about $40 billion from selling its Verizon share. The telco plans to spend the bulk of
that windfall or about 19 billion ($32.3 billion) on upgrading its European networks to 4G and
LTE and enhance its networks in developing markets to 3G or faster speeds. The LTE coverage
has been achieved in more than half of Europe. This investment is a tremendous long term
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opportunity for Vodafone to position itself as the leader of high speed and reliable wireless
services.
Emerging markets like India Regions where people still either dont have mobile phones or use
2G feature phones offer a lot of potential for business development. Vodafone has about 170
million voice subscribers in India and less than 10% of those use 3G data. The companys India
service revenue grew 10% in the latest quarter. Turkey still hasnt reached 100% mobile phone
penetration and more than one-third of its population has not used 3G. Likewise, Africa has a lot
of untapped market.
THREATS
Market saturation in Europe Europes share of subscribers is 30%, but it brings in more than
two-thirds of the revenue for Vodafone. This demonstrates the extent of its dependence on the
continent. Since the mobile phone penetration in most of its European markets is about 100%,
the scope of growth, apart from services like LTE, is limited. Not surprisingly, its service
revenue from the region declined by 7.9% in the recent quarter. The trend has been downwards
for a few years now. If a companys profits are decreasing in its most important region, it is a big
threat.
Uncertain regulatory climate Telecom policy and regulation has been a challenge for the
industry in many parts of the world. In Europe, the big issues are falling mobile termination rates
and reduced roaming charges. Remember, what is good for the customer is not necessarily great
for the service provider. A friendly M&A policy would be a big boost for established players like
Vodafone. EU has been looking at consolidation norms and may allow 3 operators in its member
countries. Regulatory framework looks better in India too, but is still far from being industryfriendly.
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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 doesnt matches with the samples
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 companys side. And if any change they require in present supplying
condition?
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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 logo Aisi azaadi aur
kahan 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 the need 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.
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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.
Websites:
www.Airtelworld.com
www.google.com
www.india.com
www.Vodafone.in
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QUESTIONNAIRE
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
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Q.5 Are you using other product instead of Airtel and Vodafone?
Yes
No
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
Q.8
If you have to purchase a new connection or product in near future, which Brand will you
go for and why?
_________________________________________________
_________________________________________________
_________________________________________________
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Q.9 How would you rate Airtel and vodafone performance as your expectation on 5 points
scale (5 Highest?)
1
4 5
Q.13 What are you suggestions for improving the product quality, service availability and parts
availability?
______________________________________________________________________________
______________________________________________________________________________
________________________________________
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