CHAPTER 1

INTRODUCTION

1.1 INDUSTRY PROFILE

The Indian telecommunications industry has experienced high growth in re

cent years. According to Cellular Operators Association of India (COAI), total n
umber of mobile subscribers in India has increased from approximately 0.3 millio
n as of March 1997 to approximately 13.34 million as of April 30, 2003. The tot
al number of fixed line subscribers has increased from approximately 14.5 millio
n as of March 31, 1997 to approximately 37.7 million as of March 31, 2002. The f
ollowing Table illustrates the growth in the Indian telecommunications industry.
As on March 31st
1997 1998 1999 2000 2001 2002 2003 2004
Mobile Subscribers 339 882 1200 1884 3557 6431 13340
26154
Fixed Line Subscribers (thousands)** 14543 17802 21594 26511 32436
37712 Not Available Not Available

*Data released by COAI periodically

**Data for 1997 to 2001 is based on annual reports of BSNL. Data for 2002 is
based on Government Statistics.

The Indian telecommunications market is under penetrated and hence offer

s tremendous growth potential. The mobile and fixed line penetration levels in I
ndia are lower than those in most developed countries in the world. The followi
ng factors are expected to contribute to the growth of the Indian Telecommunicat
ions Industry:

• Economic Growth and continued development of the Indian Economy:

• Higher growth rate of service oriented sector, leading to an increased demand fo
r telecommunication services;
• Increased use of Information Technology and Internet , leading to a large demand
for data communication services;
• Declining tariffs, reduced equipment cost and reduced handset costs over time.
• Increasing customer choice and demand for value added services; and
• Increasing globalisation of the Indian Business, leading to increase internation
al voice & data traffic.
• Industry analysts expect the telecom services industry in India to grow rapidly.
1.1.1 Regulatory Framework

The government has liberalized the telecommunication services sector and

opened it for private participation. The regulatory establishment for the certa
in telecommunication services is as follows:

• Mobile services: Four licenses have been awarded in each of the 22-telecom circl
es. Three licenses have been awarded to private service providers and one to the
government operator. The private licenses have been issued based on a bidding
process.
• Fixed line Services: There is no restriction on the number of players in the fix
ed line segment. The licenses have been awarded based on a fixed entry fee, iss
ued on a non-exclusive basis for a period of 10 years, extendable by 10 years at
a time.
• National & International Long Distance Services: There is no restriction on the
number of players in the long distance markets. Licenses are issued based on a
n entry fee, on a non-exclusive basis for 10 years, extendable by 10 years at a
time.
• Internet Services: there is no restriction on the number of players in the ISP s
egment.

1.1.2 Industry Structure

The present operational regulatory structure of telecommunications servi

ces industry in India is set forth below:

1.2 COMPANY PROFILE

Bharti Enterprises has been at the forefront of technology and has revol
utionized telecommunications with its world-class products and services. Establ
ished in 1985, Bharti has been a pioneering force in the telecom sector with man
y firsts and innovations to its credit, ranging from being the first mobile serv
ice in Delhi, first private basic telephone service provider in the country, fir
st Indian company to provide comprehensive telecom services outside India in Sey
chelles and first private sector service provider to launch National Long Distan
ce Services in India. As of April 30, 2004, Bharti had approximately 7.42 millio
n total customers – nearly 6.76 million mobile and 657,000 fixed line customers.
 Its services sector businesses include mobile operations in Andhra Prade
sh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolka
ta, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Ut
tar Pradesh (West) circle. In addition, it also has a fixed-line operations in t
he states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, 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 originatin
g and terminating on most of India's mobile networks. The Company is also implem
enting a submarine cable project connecting Chennai-Singapore for providing inte
rnational bandwidth.
Bharti Enterprises also manufactures and exports telephone terminals and
cordless phones. Apart from being the largest manufacturer of telephone instrum
ents, it is also the first telecom company to export its products to the USA.

1.2.1 Bharti Group -Structure

The Bharti group has been structured to create specialization, both func
tional and operational to serve the best interests of the organization as well a
s the customer. Given below is a graphical representation of the group structure
:

1.2.2 Bharti Tele-Ventures

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 fo
r promoting investments in telecommunications services. Its subsidiaries operate
telecom services across India. Bharti Tele-Ventures is India's leading private
sector provider of telecommunications services based on a strong customer base c
onsisting of approximately 8.02 million total customers which constitute, approx
imately 7.34 million mobile and approximately 678,000 fixed line customers, as o
f May 31, 2004.
1.2.3 BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective is “to capitalise on the growth

opportunities that the Company believes are available in the Indian telecommuni
cations market and consolidate its position to be the leading integrated telec
ommunications services provider in key markets in India, with a focus on providi
ng mobile services”.

The Company has developed the following strategies to achieve its strate
gic objective:
• Focus on maximising revenues and margins;
• Capture maximum telecommunications revenue potential with minimum geographical c
overage;
• 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 s
atisfaction;
• Leverage strengths of its strategic and financial partners; and
• Emphasise on human resource development to achieve operational efficiencies.
1.2.4 Businesses Reach

Bharti Tele-Ventures current businesses include -

• Mobile services
• Fixed-line
• National and international long distance services
• VSAT, Internet services and network solutions

CHAPTER 2

AIM OF THE PROJECT

The Indian Telecommunication industry has grown into a billion dollar in

dustry. In this unforgiving highly competitive industry it is not just doing so
mething right that matters but it is also about doing nothing wrong. Making pro
fit does not only mean a large customer base but also, depends on usage level of
the services, provided to the customers.

The telecom companies comes out with many schemes and offers, to attract
customers and to make them use the various schemes provided by these companies.
The aim of this study would supplement this effort of the company in a small wa
y.

2.1 OBJECTIVES OF THE STUDY

For an organization to be successful they need to be equipped with the c

urrent position of their share in the market. They need to understand the new an
d the unidentified potential available in the market. The organization needs to
understand the changing scenario taking place in the market with respect to thei
r business. All these could be achieved only by understanding the market sentime
nts.
 Thus through a Study to understand the current penetration level of thei
r product, the organization can motivate the current efforts of their sales forc
e and efforts could be taken to reduce the weakness, complaints, and also could
come up with new attractive schemes according to the expectations of the retaile
rs. Keeping the above view in the mind objectives for the study are set and are
given below.

2.1.1 Primary Objective

To find out the current Retail Penetration level of Airtel PrePaid cards
in Coimbatore.

2.1.2 Secondary Objectives

To identify the factors taken into account by the retailers while they g
o for Shelfing/Non Shelfing of Airtel products.

To identify the Performance of Airtel Pre Paid card in Coimbatore.

2.2 SCOPE OF THE STUDY

The study undertaken at Bharti Cellular Ltd aims to find out the current
level retail penetration of its Airtel PrePaid cards and also to identify the p
references taken into account by the retailers while they go for Shelfing/Non Sh
elfing the product.
This has been achieved by taking down the respondent’s views and responses
individually by the researcher, using a questionnaire. The researcher asks the
research questions in the questionnaire to the respondent in a face-to-face fash
ion and records the response, which is then used for the analysis and interpreta
tion part of the study.

Once the study is through, the researcher would be in a position to advi

se the company about its current level of retail penetration in the respective a
reas where the study has been undertaken. The study would also help the company
to find out the general preferences / factors considered by the retailers while
they go for Shelfing/Non Shelfing.

The company could also find out the performance of its PrePaid cards in
the existing retail outlets when compared to its competitors, the service provid
ed by its distributors to the retailers, etc.
 All these would help the company in tapping the business in the new pote
ntial areas and also to come up with new attractive offers and schemes that woul
d motivate the retailers to shelf the products and do the business for the compa
ny.

2.3 LIMITATIONS OF THE STUDY

The project – Retail penetration level of Airtel pre paid cards has variou
s limitations. Some of the limitations that would be subjected to the research
are given below:
1. The presence of uneducated sales people in the retail outlet, who is mer
ely unaware of the word questionnaire itself, is one of the main limitations to
the research.
2. The non-availability of the concerned person in the outlet who could dis
close all the information required for the study.
3. During certain time of the day, most of these outlets would be very busy
with their business, as they would not encourage all these research activities.
4. To target all retail outlets during this short span of time is considere
d as another limitation.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Design

Research design is the specification of procedures for collecting and an

alyzing the data necessary to help, identify or react to a problem or opportunit
y such that the difference between the cost of obtaining various levels of accur
acy and the expected clue of the information associated with each level of accur
acy is maximized. A Performance Monitoring type of research design is applied fo
r the Study on “Retail Penetration Level Of Airtel PrePaid Cards in Coimbatore, wi
th respect to the Area of VSV Agencies”.

3.2 Sample Design

The population as a whole is considered for the study, as the size of th

e population is finite in nature. Under the boundary region of VSV agencies and
with respect to the category of outlets mentioned by the company there is a tot
al of 387 retail outlets in Coimbatore. Thus this 387-retail outlet forms the po
pulation size for the study.

3.3 Sample Size

Since the population as a whole is being considered for the study, the s
ize of the sample pertains to the size of the population i.e. 387 retail outlets
.

3.4 Sampling Frame

The frame refers to the area where the primary data would be collected.
The areas taken into consideration for the study purpose includes R S Puram, Pee
lamedu Area, Cross Cut Road, Ramnagar, and P N Pallayam. These five areas are se
lected primarily because; these are those areas, which comes under the boundary
of VSV Agencies. Other than that certain other factors such as Income level of t
he people, Walk in Facility, Accessibility, etc are also considered while select
ing the sample frame. Thus from the above mentioned sampling frame, the category
of outlets which would be concentrated for the data collection procedures would
be; Mobile Service Centre, Duty Paid Shop, Books & Stationary Shop, Pharmacy Sh
op, General Stores, Dept. Stores, Browsing Centre, and PCO Shop.

3.5 Sampling Technique

Since the population is clearly defined there is on need for the samplin
g procedure and sampling techniques. Thus this is not applicable for this type o
f a study.

3.6 Data Collection Procedure

 Data collection is the most impeccant aspects in the research process. T
he data is collected from the respondents using a structured questionnaire. Th
ere are two types of data i.e. Primary data and Secondary data.

3.6.1 Primary Data - This type of data is collected directly from the respondent
s by the researcher using the questionnaire as an instrument and personal interv
iew as the communication medium for collecting it. The researcher directly visi
ts at all the five sampling frame and asks the research questions to each respon
dent and record it for the further analysis and interpretation purpose.

3.6.2 Secondary Data – The researcher collects this type of data indirectly, befor
e starting of with his research activities. There are two types of secondary da
ta. They are;

3.6.2.1 Internal Data: The internal data for the research activities such as the
total No. of Airtel Outlets, total No. of Airtel PCO outlets, etc are collected
from the company database.

3.6.2.2 External Data: The external data such as the total No. Of retail outlets
with respect to the area and category is collected from the respective Coimbato
re Zonal Corporation Offices.

Thus after consolidation, the total number of retail outlets available i

n the sample frame with respect to the category of outlet is given below, which
would clearly define the population.
Area CATEGORY OF OUTLETS
Mobile Service Centre Duty Paid Shop Book & Stationary Pharmacy
Gen. Stores Dept Stores Browsing Centre PCO Shops Others
Peelamedu 14 1 16 18 15 5 5 12
42
P.N. Palayam 9 0 9 19 9 10 1 8
17
Ram Nagar 3 2 4 8 12 11 1 7
28
R.S. Puram 12 5 18 19 6 4 4 8
12
Cross Cut Road 7 2 3 0 0 0 0 0
1
Total 387
3.7 Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for the s
tudy, respondent’s ability and willingness to answer accurately, etc. The prelimin
ary considerations required for the preparation of the questionnaire have been t
aken care.
The type of questions incorporated in the questionnaire includes,

1) Open-ended Questions: Open-ended questions are those questions where no

alternatives are provided and the respondent answers within the implied limit.
Eg: Your complaints, remarks suggestions for improving the services of Airtel,
please record below?
2) Dichotomous Questions: These questions are closed ended questions with
only two options like yes/no, true/false.
Eg: Does your outlet sell telecom products such as PrePaid Cards, recharge coup
ons etc.
3) Multiple choice Questions: These questions include 3 to 7 specified opt
ions and the respondent should select form the choices given.
Eg: Are you satisfied with its performance in the store?
(a) Very Satisfied
(b) Satisfied
(c) Neutral
(d) Not Satisfied
(e) Not at all Satisfied

3.8 Statistical Tools Used

Since the population as a whole is being considered for the study, perce
ntage analysis tool is used for the analysis and interpretation purpose. The inf
erences and conclusions are drawn through this process.

CHAPTER 4

ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and
these are used to interpret the results from the data. The inferences given bel
ow the Table will make the reader to understand the problem as well as the solut
ion to the problem.
TABLE 1
TABLE SHOWING THE DISTRIBUTION OF OUTLET ON THE BASIS OF ITS CATE
GORY
Area Mobile Service Duty Paid
Shop Book &
Stationary Pharmacy General Stores Dept Stores Browsing
Centre PCO
Shop Others
PEELAMEDU 11 0.78 13 14.06 12 3.9 3.91 9.38
32.81
P.N PALAYAM 11 0 11 23.46 11 12 1.23 9.88
20.99
RAM NAGAR 4 2.63 5 10.53 16 14 1.32 9.21
36.84
R.S. PURAM 14 5.68 20 21.59 6.8 4.6 4.55 9.09
13.64
CROSS CUT ROAD 54 15.38 23 0 0 0 0 0
7.69
Interpretation
A maximum of 32.81 % and 14.06 % belong to Others Category and Pharmacy
Category in the Peelamedu Area.
A maximum of 23.46 % and 20.99 % belong to Pharmacy category and Others
Category in P N Pallayam Area.
A maximum of 36.84 % and 15 % belong to Others Category and General Stor
es Category in Ramnagar Area.
A maximum of 20.45 % and 13.64 % belong to Pharmacy and Others category
in the R S Puram Area.
A maximum of 53.85% and 23.08 % belong to Mobile Service Centre and Book
s and Stationary Shop Category in Cross Cut Road Area.

TABLE 2
TABLE SHOWING DISTRIBUTION OF TELECOM / NON TELECOM OUTLET
AREA TELECOM NON TELECOM
PEELAMEDU 41.41 58.59
P.N. PALAYAM 44.44 55.56
RAM NAGAR 44.74 55.26
R.S. PURAM 52.27 47.73
CROSS CUT ROAD 100 0
Interpretation
A Telecom Outlet is defined as one which Shelf Pre paid cards in their o
utlet. A Non Telecom outlet is defined as one which does not shelf Pre Paid card
s in their Outlet. Thus among the category of outlet defined by the company, the
% of outlet selling Telecom / Non Telecom Outlet in different area are given be
low.
In Peelamedu area we have a 41.41 % to 58.59 % ratio between Telecom and
Non Telecom outlet. A 44.44 % to 55.56 % ratio between Telecom and Non Telecom
outlet in P N Pallayam Area, A 44.74 % to 55.26 % ratio between Telecom and Non
Telecom outlet in Ram Nagar Area, A 52.27 % to 47.73 % ratio between Telecom and
Non Telecom outlet in R S Puram Area, A 100 % ratio between Telecom and Non Tel
ecom outlet in P N Pallayam Area,

TABLE 3
TABLE SHOWING THE DISTRIBUTION OF COMPETITORS IN THE TELECOM OUTLETS
AREA Aircel BPL BSNL Reliance Tata Trupaid Airtel
PEELAMEDU 21.27 21.27 17.65 14.03 3.17 22.62
P.N. PALAYAM 23.24 20.42 16.9 14.08 2.11 23.24
RAM NAGAR 23.26 19.38 15.5 12.4 3.88 25.58
R.S. PURAM 22.49 20.12 15.38 12.43 2.96 26.63
CROSS CUT ROAD 18.64 20.34 16.95 11.86 10.17 22.03
Interpretation
Peelamedu Area has a 41.41 % of Telecom outlets. Among these 22.62 % of
Outlets had Airtel, and its nearest competitor in this area was Aircel and BPL w
ith a 21.27 % each. Tata Trupaid had the minimum presence of 3.17 % in this area
. P N Pallayam Area has a 41.44 % of Telecom outlets. Among these 23.24 % of Ou
tlets had Airtel and Aircel. Its nearest competitor in this area was BPL with a
20.42 %. Tata Trupaid had the minimum presence of 2.11 % in this area.
Ram Nagar Area has a 44.74 % of Telecom outlets. Among these 25.58 % of
Outlets has Airtel. Its nearest competitor in this area was Aircel with a 23.26
% of presence. Tata Trupaid had the minimum presence of 3.88 % in this area. R
S Puram Area has a maximum of 100 % of Telecom outlets. Among these 26.63 % of
Outlets has Airtel. Its nearest competitor in this area was Aircel with a 22.49
% of presence. Tata Trupaid had the minimum presence of 2.96 % in this area.
Cross Cut Road has a 52.27 % of Telecom outlets. Among these 22.03 % of
Outlets has Airtel. Its nearest competitor in this area was BPL with a 20.34 %
of presence. Tata Trupaid and Reliance has a minimum presence of 10.17 % and 11.
16 % in this area.

TABLE 4
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS BY THE RETAILERS FOR THE PEELAMEDU
AREA
Parameters Aircel BPL BSNL Reliance Tata
Trupaid Airtel
Rank 1 21.09 8.59 5.47 15.63 1.56 46.88
Rank 2 32.81 10.94 11.72 23.44 0.78 21.09
Rank 3 20.31 34.38 17.19 10.16 0.78 17.19
Rank 4 20.31 21.88 41.41 12.5 2.34 1.56
Rank 5 5.47 22.66 21.88 37.5 1.56 10.16
Rank 6 0 1.56 2.34 0.78 92.97 3.13

Interpretation

In Peelamedu area Airtel was Ranked 1 by 46.88 % of the retailers, Ranke

d 2 by 21.09 % of Retailers, Ranked 3 by 17.19 % of Retailers, Ranked 4 by 1.56
% of Retailers, Ranked 5 by 10.16 % of Retailers, and Ranked 6 by 3.13 % of Reta
ilers.

Among the other brands, Aircel was Ranked 1 by 21.09 % of retailers, BPL
was Ranked 1 by 8.59 % of retailers, BSNL was Ranked 1 by 5.47 % of retailers,
Reliance was Ranked 1 by 15.63 % of retailers, Tata Trupaid was Ranked 1 by 1.56
% of retailers for the area Peelamedu.

TABLE 5
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS BY THE RETAILERS FOR THE P N PALLA
YAM AREA
Parameters Aircel BPL BSNL Reliance Tata
Trupaid Airtel
Rank 1 23.17 3.66 4.88 19.51 0 46.34
Rank 2 39.02 6.1 7.32 20.73 0 29.27
Rank 3 21.95 29.27 19.51 13.41 0 15.85
Rank 4 13.41 34.15 43.9 4.88 1.22 2.44
Rank 5 2.44 26.83 23.17 41.46 1.22 4.88
Rank 6 0 0 1.22 0 97.56 1.22

Interpretation

In P N Pallayam area Airtel was Ranked 1 by 46.34 % of the retailers, Ra

nked 2 by 29.27 % of Retailers, Ranked 3 by 15.85 % of Retailers, Ranked 4 by 2.
44 % of Retailers, Ranked 5 by 4.88 % of Retailers, and Ranked 6 by 1.22 % of Re
tailers.
Among the other brands, Aircel was Ranked 1 by 23.17 % of retailers, BPL
was Ranked 1 by 3.66 % of retailers, BSNL was Ranked 1 by 4.88 % of retailers,
Reliance was Ranked 1 by 19.51 % of retailers, Tata Trupaid was Ranked 1 by 0 %
of retailers for the area P N Pallayam.

TABLE 6
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS BY THE RETAILERS FOR THE RAM NAGAR
AREA
Parameters Aircel BPL BSNL Reliance Tata
Trupaid Airtel
Rank 1 15.79 2.63 18.42 25 0 36.84
Rank 2 26.32 9.21 17.11 25 0 22.37
Rank 3 13.16 15.79 25 23.68 0 22.37
Rank 4 28.95 22.37 27.63 13.16 0 7.89
Rank 5 15.79 0 10.53 11.84 5.26 0
Rank 6 0 1.32 1.32 1.32 92.11 2.63
Interpretation

In Ram Nagar area Airtel was Ranked 1 by 36.84 % of the retailers, Ranke
d 2 by 22.37 % of Retailers, Ranked 3 by 22.37 % of Retailers, Ranked 4 by 7.89
% of Retailers, Ranked 5 by 0 % of Retailers, and Ranked 6 by 2.63 % of Retailer
s.

Among the other brands, Aircel was Ranked 1 by 15.79 % of retailers, BPL
was Ranked 1 by 2.63 % of retailers, BSNL was Ranked 1 by 18.42 % of retailers,
Reliance was Ranked 1 by 25 % of retailers, Tata Trupaid was Ranked 1 by 0 % of
retailers for the area Ram Nagar.

TABLE 7
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS
BY THE RETAILERS FOR THE R S PURAM AREA

Parameters Aircel BPL BSNL Reliance Tata

Trupaid Airtel
Rank 1 19.32 7.95 5.68 18.18 2.27 46.59
Rank 2 36.36 7.95 11.36 18.18 0 26.14
Rank 3 23.86 42.05 12.5 7.95 1.14 12.5
Rank 4 9.09 29.55 42.05 15.91 1.14 2.27
Rank 5 10.23 9.09 27.27 38.64 6.82 6.82
Rank 6 1.14 3.41 1.14 1.14 88.64 5.68

Interpretation
 In R S Puram area Airtel was Ranked 1 by 46.59 % of the retailers, Ranke
d 2 by 26.14 % of Retailers, Ranked 3 by 12.5 % of Retailers, Ranked 4 by 2.27 %
of Retailers, Ranked 5 by 6.82 % of Retailers, and Ranked 6 by 5.68 % of Retail
ers.

Among the other brands, Aircel was Ranked 1 by 19.32 % of retailers, BPL
was Ranked 1 by 7.95 % of retailers, BSNL was Ranked 1 by 5.68 % of retailers,
Reliance was Ranked 1 by 18.18 % of retailers, Tata Trupaid was Ranked 1 by 2.27
% of retailers for the area R S Puram.

TABLE 8
TABLE SHOWING THE RANKING OF DIFFERENT BRANDS
BY THE RETAILERS FOR THE CROSS CUT ROAD AREA
Parameters Aircel BPL BSNL Reliance Tata
Trupaid Airtel
Rank 1 53.85 7.69 0 0 0 38.46
Rank 2 30.77 7.69 7.69 7.69 0 46.15
Rank 3 7.69 53.85 15.38 15.38 0 15.38
Rank 4 7.69 15.38 38.46 38.46 0 0
Rank 5 0 15.38 30.77 30.77 15.38 0
Rank 6 0 0 7.69 7.69 84.62 0
Interpretation

In Cross Cut Road area Airtel was Ranked 1 by 38.46 % of the retailers,
Ranked 2 by 46.15 % of Retailers, Ranked 3 by 15.38 % of Retailers, Ranked 4 by
0 % of Retailers, Ranked 5 by 0 % of Retailers, and Ranked 6 by 0 % of Retailers
.

Among the other brands, Aircel was Ranked 1 by 53.85 % of retailers, BPL
was Ranked 1 by 7.69 % of retailers, BSNL was Ranked 1 by 0 % of retailers, Rel
iance was Ranked 1 by 0 % of retailers, Tata Trupaid was Ranked 1 by 0 % of reta
ilers for the area Cross Cut Road.
TABLE 9
TABLE SHOWING THE RETAILERS CHOICE ON THE PRODUCTS PERFORMANCE IN THEIR OUTLET
Card Name Peelamedu P.N Palayam Ram Nagar R.S Puram
Cross Cut Road
Airtel 36.83 32.04 25.1 44.1 40.65
BPL 19.67 19.35 7.69 9.59 9.09
BSNL 4.92 16.13 15.38 2.74 0
Reliance 9.84 6.45 5.13 5.48 0
Tata Trupaid 0 0 0 0 0
Aircel 28.75 26.03 46.7 38.1 50.25
Interpretation

When retailers of all the five areas was asked to name one product which
they felt is performing in their outlet, the response was as given below.
In all the area most of the retailers named Airtel and Aircel, as the product
performing in their outlet. In Peelamedu area the ratio was 36.83 % to 28.75 %.
In P N Pallayam area the ratio was 32.04 % to 26.03 %. In Ram Nagar area the rat
io was 25.1 % to 46.7 %. In R S Puram area the ratio was 44.1 % to 38.1 %. In Cr
oss Cut Road area the ratio was 40.65 % to 50.25%.

TABLE 10
TABLE SHOWING THE REASONS POINTED OUT BY THE RETAILERS
FOR THE PERFORMANCE OF AIRTEL BRAND IN THEIR OUTLET
Parameters Peelamedu P.N. Palayam Ram nagar R.S. Puram
Cross Cut Road
Choice 1 4.17 5.41 20.59 8.51 0.5
Choice 2 4.17 5.41 2.94 38.3 9.5
Choice 3 8.33 5.41 29.41 8.51 10.5
Choice 4 33.33 43.24 5.88 2.13 21.5
Choice 5 4.17 8.11 14.71 6.38 18.5
Choice 6 45.83 32.43 26.47 36.17 39.5
Interpretation
 When retailers of all the five areas were asked to state the reason for
the brand Airtel’s performance in their outlet, the response was as given below.
In area Peelamedu, 45.83 % of retailers stated the reason for the Airtel’s perform
ance as “Choice 6 “. 33.33 % of retailers stated the reason for the Airtel’s performan
ce as “Choice 4 “. In area P N Pallayam, 43.24 % of retailers stated the reason for
the Airtel’s performance as “Choice 4 “. 32.43 % of retailers stated the reason for th
e Airtel’s performance as “Choice 6 “.
In area Ram Nagar, 29.41 % of retailers stated the reason for the Airtel’s
performance as “Choice 3 “. 26.47 % of retailers stated the reason for the Airtel’s p
erformance as “Choice 6 “. In area R S Puram, 38.3 % of retailers stated the reason
for the Airtel’s performance as “Choice 2 “. 36.17 % of retailers stated the reason fo
r the Airtel’s performance as “Choice 6 “.
In area Cross Cut Road, 39.5 % of retailers stated the reason for the Ai
rtel’s performance as “Choice 6 “. 21.5 % of retailers stated the reason for the Airte
l’s performance as “Choice 4 “.

TABLE 11
TABLE SHOWING THE % OF TELECOM OUTLETS SELLING AIRTEL PREPAID CARDS AND SIM CARD
S
AREA YES NO
PEELAMEDU 78.13 21.88
P.N. PALAYAM 91.43 8.57
RAM NAGAR 97.06 2.94
R.S. PURAM 52.27 47.73
CROSS CUT ROAD 100 0

TABLE 12
TABLE SHOWING THE SATISFACTION LEVEL OF RETAILERS SELLING AIRTEL PREPAID CARDS
Parameters Peelamedu P N Pallayam Ram Nagar R.S Puram
Cross Cut Road
Very Satisfied 30.23 46.88 33.33 21.74 18.18
Satisfied 30.23 21.88 24.24 39.13 63.64
Not Satisfied 13.95 12.5 15.15 19.57 18.18
Not at all Satisfied 4.65 0 12.12 2.17 0
Neutral 20.93 18.75 15.15 17.39 0
Interpretation

In Peelamedu area 30.23 % of retailers said that they are “Very satisfied” w
ith the products performance and 4.65 % of retailers said that they are “Not at al
l satisfied” with the product. In P N Pallayam area 46.88 % of retailers said that
they are “Very satisfied” with the products performance and 12.5 % of retailers sai
d that they are “Not Satisfied” with the product.
In Ram Nagar area 33.33 % of retailers said that they are “Very satisfied” w
ith the products performance and 12.12 % of retailers said that they are “Not at a
ll satisfied” with the product. In R S Puram area 39.13 % of retailers said that t
hey are “Satisfied” with the products performance and 2.17 % of retailers said that
they are “Not at all satisfied” with the product.
In Cross Cut Road area 63.64 % of retailers said that they are “Satisfied” w
ith the products performance and 18.18 % of retailers said that they are “Not Sati
sfied” with the product.

TABLE 13
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE RETAILERS OF THE
PEELAMEDU AREA TOWARDS A FEW STATEMENTS
Statement PARAMETERS
Agree Completely Agree Somewhat Neither Agree nor Disagree
Disagree Somewhat Disagree Completely
Statement 1 3.91 2.34 8.59 10.16 22.66
Statement 2 24.22 25.78 21.88 23.44 42.97
Statement 3 62.5 61.72 50 43.75 9.38
Statement 4 8.59 9.38 18.75 15.63 11.72
Statement 5 0.78 0.78 0.78 7.03 12.5
Interpretation
In Peelamedu area a maximum of 22.66 % of retailers, “Disagree completely” t
owards Statement 1 and a minimum of 2.34 % of retailers “Agree Somewhat” towards Sta
tement 1.
A maximum of 42.97 % of retailers “Disagree completely” towards Statement 2
and 25.78 % of retailers, “Agree Somewhat” towards Statement 2 in the other extreme.

A maximum of 62.5 % of retailers “Agree completely” towards Statement 3 and

43.75 % of retailers, “Disagree Somewhat” towards Statement 3 in the other extreme.
A maximum of 18.75 % of retailers “Neither Agree Nor disagree” towards State
ment 4. A maximum of 12.5 % of retailers “Disagree completely” towards Statement 5.

TABLE 14
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE RETAILERS OF THE
P N PALLAYAM AREA TOWARDS A FEW STATEMENTS
Statement PARAMETERS
Agree Completely Agree Somewhat Neither Agree nor Disagree
Disagree Somewhat Disagree Completely
Statement 1 6.17 7.41 11.11 11.11 22.22
Statement 2 29.63 27.16 16.05 22.22 29.63
Statement 3 50.62 50.62 54.32 46.91 2.47
Statement 4 13.58 13.58 13.58 11.11 25.93
Statement 5 0 1.23 4.94 8.64 19.75
Interpretation

In P N Pallayam area a maximum of 22.22 % of retailers, “Disagree complete

ly” towards Statement 1 and a minimum of 6.17 % of retailers “Agree Completely” toward
s Statement 1. A maximum of 29.63 % of retailers “Disagree completely” and “Agree com
pletely” towards Statement 2.
A maximum of 54.32 % of retailers “Neither Agree nor disagree” towards State
ment 3. A maximum of 25.93 % of retailers “Disagree completely” towards Statement 4.
A maximum of 19.75 % of retailers “Disagree completely” towards Statement 5 also.

TABLE 15
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE RETAILERS OF THE
RAM NAGAR AREA TOWARDS A FEW STATEMENTS
Statement PARAMETERS
Agree Completely Agree Somewhat Neither Agree nor Disagree
Disagree Somewhat Disagree Completely
Statement 1 7.89 6.58 7.89 7.89 28.95
Statement 2 28.95 21.05 26.32 26.32 27.63
Statement 3 48.68 55.26 44.74 40.79 7.89
Statement 4 10.53 13.16 14.47 17.11 17.11
Statement 5 10.53 13.16 14.47 17.11 17.11

Interpretation
 In Ram Nagar area a maximum of 28.95 % of retailers, “Disagree completely” t
owards Statement 1 and a minimum of 6.58 % of retailers “Agree Somewhat” towards Sta
tement 1. A maximum of 28.95 % of retailers “Agree completely” towards Statement 2
and 27.63 % of retailers, “Disagree completely” towards Statement 2 in the other ext
reme.
A maximum of 55.26 % of retailers “Agree Somewhat” towards Statement 3 and 4
0.79 % of retailers, “Disagree Somewhat” towards Statement 3 in the other extreme.
A maximum of 17.11 % of retailers “Disagree completely” towards Statement 4 and a mi
nimum of 10.53 % of retailers “Agree completely” towards Statement 4 in the other ex
treme and same in the case of Statement 5.

TABLE 16
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE RETAILERS OF THE
R S PURAM AREA TO TOWARDS A FEW STATEMENTS
Statement PARAMETERS
Agree Completely Agree Somewhat Neither Agree nor Disagree
Disagree Somewhat Disagree Completely
Statement 1 13.64 12.5 15.91 18.18 32.95
Statement 2 35.23 31.82 21.59 29.55 35.23
Statement 3 38.64 45.45 50 43.18 17.05
Statement 4 11.36 9.09 10.23 4.55 7.95
Statement 5 1.14 1.14 2.27 4.55 6.82
Interpretation

In R S Puram area a maximum of 32.95 % of retailers, “Disagree completely” t

owards Statement 1 and a minimum of 12.5 % of retailers “Agree Somewhat” towards Sta
tement 1.
A maximum of 35.23 % of retailers “Disagree completely” and “Agree completely” t
owards Statement 2. A maximum of 50 % of retailers “Neither Agree Nor disagree” tow
ards Statement 3.
A maximum of 11.36 % of retailers “Agree completely” towards Statement 4 and
a minimum of 7.95 % of retailers “Disagree completely” towards Statement 4. A maxim
um of 6.82 % of retailers “Disagree completely” towards Statement 5 and a minimum of
1.14 % of retailers “Agree completely” towards Statement 5.

TABLE 17
TABLE SHOWING LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF THE RETAILERS OF THE
CROSS CUT ROAD AREA TOWARDS A FEW STATEMENTS
Statement PARAMETERS
Agree Completely Agree Somewhat Neither Agree nor Disagree
Disagree Somewhat Disagree Completely
Statement 1 38.46 46.15 38.46 61.54 76.92
Statement 2 38.46 30.77 23.08 7.69 0
Statement 3 7.69 7.69 23.08 15.38 7.69
Statement 4 0 0 0 0 0
Statement 5 0 0 0 0 0
Interpretation

In Cross Cut road area a maximum of 76.92 % of retailers, “Disagree comple

tely” towards Statement 1 and a minimum of 46.15 % of retailers “Agree Somewhat” towar
ds Statement 1. A maximum of 38.46 % of retailers “Agree completely” towards Statem
ent 2 and 7.69 % of retailers, “Disagree Somewhat” towards Statement 2 in the other
extreme.
A maximum of 23.08 % of retailers “Neither Agree nor disagree” towards State
ment 3 and 7.69 % of retailers, “Disagree completely” and “Agree completely” towards Sta
tement 3 in the other extreme. As far as the Statement 4 and Statement 5 is conc
erned, none of the retailers opted for this statement.

TABLE 18
TABLE SHOWING THE LEVEL OF INTEREST FOR THE NON TELECOM OUTLET RETAILERS TOWARDS
SHELFING OF AIRTEL PRODUCTS

AREA PARAMETERS
Interested Not Interested
PEELAMEDU 54.05 45.95
P.N. PALAYAM 33.33 66.67
RAM NAGAR 28.57 71.43
R.S. PURAM 41.46 58.54
CROSS CUT ROAD 0 0
Interpretation

Peelamedu area saw the maximum interest from the non telecom outlets tow
ards shelfing of Airtel products with a 54.05 %.
 R S Puram saw the second best interest towards shelfing of Airtel produc
ts from the non telecom Outlets with a 41.6 %.
Ram Nagar saw the maximum non interested non telecom outlets towards she
lfing of Airtel Products with a 71.43 %.
P N Pallayam saw the second best non interested non telecom outlets towa
rds shelfing of Airtel products with a 66.67 %.

TABLE 19
TABLE SHOWING THE REASONS STATED BY NON TELECOM OUTLET RETAILERS FOR NON SHELFIN
G OF THE AIRTEL PRODUCT
Parameter Area
Peelamedu P.N. Palayam Ram Nagar R.S. Puram Cross Cu
t Road
Choice 1 36.36 21.21 40.00 20.83 0.00
Choice 2 3.03 6.06 6.67 20.83 0.00
Choice 3 3.03 12.12 13.33 0.00 0.00
Choice 4 9.09 18.18 6.67 4.17 0.00
Choice 5 33.33 42.42 33.33 33.33 0.00
Choice 6 15.15 0.00 0.00 20.83 0.00

Interpretation

Peelamedu area saw the retailers stating the reasons as “Choice 1” with a 36
.36 %, “Choice 5” with a 33.33 % and “Choice 6” with a 15.15 %.
P N Pallayam area saw the retailers stating the reasons as “Choice 5” with a
42.42 %, “Choice 1” with a 21.21 % and “Choice 4” with a 18.18 %.
Ram Nagar area saw the retailers stating the reasons as “Choice 1” with a 40
%, “Choice 5” with a 33.33 % and “Choice 3” with a 13.33 %.
R S Puram area saw the retailers stating the reasons as “Choice5” with a 33.
33 %, “Choice 6”, “Choice 2”, “Choice 1” with a 20.83 % .
CHAPTER 5

FINDINGS, SUGGESTION AND CONCLUSION

5.1 FINDINGS

Major findings of the study on Retail Penetration level of Airtel prepai

d cards in Coimbatore, with respect to the area of VSV Agencies are given below.
1. Under the sampling frame for the study most of the outlet Category belon
gs to Mobile Service Centre and Others Category i.e. In Peelamedu most of the ou
tlet belong to Others Category with a 32.81 %. In R S Puram, P N Pallayam, and C
ross Cut Road most of the outlet belong to Pharmacy and Mobile Service Centre Ca
tegory with a 21.59 %, 23.56 % and 50 % ratio respectively.
2. In Peelamedu area we have a 41.41 % to 58.59 % ratio between Telecom and
Non Telecom outlet. A 44.44 % to 55.56 % ratio between Telecom and Non Telecom
outlet in P N Pallayam Area, A 44.74 % to 55.26 % ratio between Telecom and Non
Telecom outlet in Ram Nagar Area, A 52.27 % to 47.73 % ratio between Telecom and
Non Telecom outlet in R S Puram Area, and a 100 % Telecom outlet in Cross Cut R
oad Area.
3. As far as the penetration level is concerned Airtel had the maximum pene
tration level in all the areas. The margin is not that too big, which has to be
the noting point as in future this could be changed. For E.g.) In Peelamedu area
Airtel had a penetration level up to 22.62 % where as it nearest competitor Air
cel and BPL had a penetration level up to 21.27 % which is a matter of concern.
Similarly in other areas too, which is clearly evident in Chart 3.
4. When the respondents was asked to rank the various prepaid card service
provided by different operators depending on its performance, sales, etc in the
ir outlet, Airtel was “Ranked 1” by most of the retailers in all the 5 areas except
in Cross Cut road Area. Cross Cut Road area saw Airtel being “Ranked 1” by 38.46 %
of retailers, when compared to Aircel which was “Ranked 1” by 53.85 % of retailers.
5. When retailers was asked to name any one prepaid card, which they felt i
s performing in their outlet, most of the retailers in all the area opted for Ai
rtel except for two area. I.e. in Ram Nagar area and Cross Cut Road area where 4
6.7 % to 50.25 % of retailers opted for Aircel.
6. The reason stated by the majority of retailers for Airtel’s performance in
their outlet was “Choice 6”. Other than this some of the retailers also was harping
on “Choice” 4 as the reason for Airtel’s performance in their outlet. The percentage
distribution of the above is available on Table 10.
7. The percentage of Telecom Outlets selling Airtel Prepaid cards is outsta
nding and is a positive sign on the image of the brand and its performance when
compared to its competitor.
8. In Peelamedu area 30.23 % of retailers said that they are “Very satisfied” w
ith the products performance and 4.65 % of retailers said that they are “Not at al
l satisfied” with the product
9. In Peelamedu area 30.23 % of retailers said that they are “Very satisfied” w
ith the products performance and 4.65 % of retailers said that they are “Not at al
l satisfied” with the product
10. In P N Pallayam area 46.88 % of retailers said that they are “Very satisfi
ed” with the products performance and 12.5 % of retailers said that they are “Not Sa
tisfied” with the product
11. In Ram Nagar area 33.33 % of retailers said that they are “Very satisfied” w
ith the products performance and 12.12 % of retailers said that they are “Not at a
ll satisfied” with the product
12. In R S Puram area 39.13 % of retailers said that they are “Satisfied” with t
he products performance and 2.17 % of retailers said that they are “Not at all sat
isfied” with the product
13. In Cross Cut Road area 63.64 % of retailers said that they are “Satisfied”
with the products performance and 18.18 % of retailers said that they are “Not Sat
isfied” with the product
14. When the Non telecom selling Outlet was asked whether they are intereste
d in shelfing Airtel products, the response was encouraging as Peelamedu area sa
w the maximum interest from the non telecom outlets towards shelfing of Airtel p
roducts with a 54.05 %. R S Puram saw the second best interest towards shelfing
of Airtel products from the non telecom Outlets with a 41.6 %. The detail distr
ibution regarding given on Table 18.
15. Those non interested non telecom retailers stated various reasons which
are given below according to the area.
Peelamedu area saw the retailers stating the reasons as “Choice 1” with a 36.36 %,
oice 5” with a 33.33 % and “Choice 6” with a 15.15 %.
P N Pallayam area saw the retailers stating the reasons as “Choice 5” with a 42.42
, “Choice 1” with a 21.21 % and “Choice 4” with a 18.18 %.
Ram Nagar area saw the retailers stating the reasons as “Choice 1” with a 40 %, “Ch
e 5” with a 33.33 % and “Choice 3” with a 13.33 %.
R S Puram area saw the retailers stating the reasons as “Choice5” with a 33.33 %, “
ice 6”, “Choice 2”, “Choice 1” with a 20.83 % .

5.2 SUGGESTIONS
 Some of the suggestions that have evolved / recognized by the researcher
to the company, during the study are given below.
As can be observed from Table 1 the ratio of Non telecom outlet is greater when
compared to the telecom outlet except in one area i.e. Ram Nagar. These non tele
com outlets thus act as an unexplored area which in turn means potential market
for the company. These are those outlets which are either not yet been approache
d by the competitors or not yet been discovered by them which in turn means firs
t comer advantage. Thus if approached with attractive retail margin package and
offers it is possible to convert them to Airtel Outlet and tap the unexplored po
tential business.
Other than the companies marketing and promotional effort, there is some thing e
lse which could create an impact on the penetration level of the product i.e. Di
stributor service, as distributor plays the middle man role between the company
and the retailer. The retailer after shelfing the product expects something call
ed as distributor service, which the distributor sales people have to give and t
his has to be trained / taught by the company to the distributor sales people, w
hich would reduce the retailer attrition rate, increase the penetration level an
d would be in a position to satisfy one of the retailer preferences.
The retailer had to be constantly updated with the new and latest schemes from t
he company by the distributor sales people as this had to be conveyed to the cus
tomer by the retailer.
Most of the Non Telecom Retail outlet people are asking for credit facility on t
he initial basis to get started of with their business, so if the company could
come up with some schemes, they would be in a position to convert most of the No
n Telecom outlet to Airtel outlet.
The retail margin provided the other service provider is comparatively superior
to the one provided by the Airtel. As most of the retailers who said that they a
re “not satisfied” stated this as one of the major reasons. So if the company could
revise some how their plans on the retail margin, this could also reduce retail
attrition rate and also would be in a position to convert some of the non telec
om outlets to Airtel outlets.
The recently included formalities regarding the filling up of the form also dist
urbs the view of the retailers towards the prepaid business, as they loose their
valuable time on maintaining these forms. This is another reason stated by the
retailers. If some alternative source could be formed by which the filling up
job of the form is taken away from the retailers could also motivate some to go
for prepaid card selling business and also could stop retailer attrition rate to
some extent.
5.3 CONCLUSION

The Coimbatore market is a very competitive market. The market share of

the leader will not be a constant one and could change at any time. Even though
it is clear from the study that Airtel have a maximum penetration level among th
e Retail Outlet at present when compared to its competitor. But this could chang
e at any time as the retail penetration level margin that Airtel is having is no
t that too big.

Also the study reveals that several factors like Retail Margin, Distribu
tor Service, Tariff Plan, and Schemes Available all are taken into consideration
by the retailers before going for Shelfing of the product.