INTRODUCTION

Bharti Airtel Limited (NSE: BHARTIARTL, BSE: 532454), commonly known as Airtel, is an Indian company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or services depending upon the country of operation. Airtel is the 3rd largest telecom operator in the world with over 243.336 million customers across 20 countries as of March 2012. It is the largest cellular service provider in , with over 176.95 million subscribers at the end of January 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.

Airtel is the largest provider of and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal. is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco. The company also provides land-line services and broadband Internet access (DSL) in over 96 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at , which connects the submarine cable connecting Chennai and Singapore.

It is known for being the first company in the world to outsource all of its business operations except marketing, sales and finance. Its network (base stations, microwave links, etc.) are maintained by , Siemens Network and , business support is provided by IBM, and transmission towers are maintained by another company ( Ltd. in India). Ericsson agreed for the first time to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enabled the company to provide pan-India phone call rates of Rs. 1/minute (US$0.02/minute). Call rates have come down much further. During the last financial year [2009–10], Bharti has negotiated for its strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business.

Sunil Bharti Mittal founded the Bharti Group. In 1983, was into an agreement with Germany's Siemens to manufacture the company's push-button telephone models for the Indian market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his company became the first in India to offer push-button , establishing the basis of . This first-mover advantage allowed Sunil Mittal to expand his manufacturing capacity elsewhere in the telecommunications market. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Sunil Mittal won a bid to build a cellular phone network in . In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to . In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to and . In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered . In 2005, Bharti extended its network to Andaman and Nicobar.'2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel began operating end .

Today, Airtel is the largest cellular service provider in India and fifth largest in the world.

AIRTEL

Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom , Bharti Enterprises. A consortium of giants in the business. In it's six years of pursuit of greater customer satisfaction, AirTel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care.

Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 12 million satisfied customers.

Cellular telephony was introduced in India during the early 1990s. At that time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only post-paid services. Initially, the cellular services market registered limited growth.

Moreover, these services were mostly restricted to the metros. Other factors such as lack of awareness among people, lack of infrastructural facilities, low standard of living, and government regulations were also responsible for the slow growth of cellular phone services in India.

Although the cellular services market in India grew during the late 1990s (as the number of players increased and tariffs and handset prices came down significantly) the growth was rather marginal. This was because the cellular service providers offered only post-paid cellular services, which were still perceived to be very costly as compared to landline communications.

Following this realization, the major cellular service providers in India, launched pre-paid cellular services in the late 1990s. The main purpose of these services was to target customers from all sections of society (unlike post-paid services, which were targeted only at the premium segment).

Achivements

First to launch Cellular service on November 1995.

First operator to revolutionaries the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India.

First to expand it's network with the installation for second mobile switching center in April, 1997 and the first to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network.

First to provide roaming facility in USA. Enjoy the mobile roaming

across 38 partner networks & above 700 cities Moreover roam across international destinations in 119 countries including USA, Canada, UK etc with 284 partner networks.

BHARTI announces aggrement with marking the entry of the World's Largest Telecom Operator into India

Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a life joint venture in India

Airtel Launches future factory - Centres of Innovation to Incubate Pioneering Mobile Applications

16 states, 600 million people. Only India's leading mobile service offers you the truly

'freedom-packed' Prepaid!

 It is also the first company to export its products to the USA.

BHARTI announces agreement with VODAFONE marking the entry of the World's Largest

Telecom Operator into India

Vodafone to invest approximately Rs. 6,700 crores (approx. USD

1.5 bn.) to acquire around 10% in Bharti Tele-Ventures Ltd.

Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-

Ventures Ltd. to unassailable leadership position in India

The largest single foreign investment ever in the history of India

The largest investment in the Indian telecom sector

Bharti establishes its supremacy in the Indian telecom market,

having attracted Asia‘s best - SingTel, and now world‘s best -

Vodafone.

Bharti set to gain global leadership in the telecom sector

Bharti Enterprises continues to hold shareholding and management

control in Bharti Tele-Ventures.

Awards for the year 2006-2007

BHARTI AIRTEL DRAWS TOP HONORS AT THE MIS ASIA IT EXCELLENCE AWARDS 2006

BHARTI AIRTEL AMONG THE TOP 10 BEST PERFORMING

COMPANIES IN THE WORLD ACCORDING TO

BUSINESSWEEK IT 100 LIST.

SUNIL BHARTI MITTAL IS THE ―CEO OF THE YEAR‖ AT THE FROST AND SULLIVAN ASIA PACIFIC AWARDS 2006 AND BHARTI AIRTEL BAGS ―WIRELESS SERVICE PROVIDER OF THE YEAR‖ AND ―COMPETITVE SERVICE PROVIDER OF THE YEAR‖.

 BHARTI TELE-VENTURES IS THE ―BEST INDIAN CARRIER‖ AT THE TELECOM ASIA AWARDS 2006.

Bharti Airtel Ltd

It is known for being the first mobile company in the world to outsource everything except marketing and sales.

Its network operations are provided by Ericsson, business is support by IBM and transmission towers by another company.

The businesses at Bharti Airtel have always been structured into three individual strategic business units - Mobile Services, Airtel Telemedia Services & Enterprise Services.

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities.

Bharti Airtel limited commonly known as Airtel is an Indian telecommunications company

Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom

Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across 19 countries at the end of 2010.

It is the largest cellular service provider in India, with over 164.61 million subscribers at the end of 2011 April.

Operates in 19 countries across South Asia, Africa and the Channel Islands.

It operates a GSM network in all countries.

• India the most talkative nation after America.

• Bharti Airtel, today is a behemoth with close to 25% share of country‘s mobile telecom market.

• Serves 75 million subscribers base.

• Most profitable telecom network in the country with a revenue more than Rs.9,000 crore.

• Established in July 07, 1995, as a Public Limited Company

Proportionate revenue-

Rs. 169,749 million (ended June 30, 2011-Audited) Rs. 122,438 million ( ended June 30, 2010-Audited) As per IFRS Accounts

Proportionate EBITDA-

Rs. 57,058 million ( ended June 30, 2011 - Audited) Rs. 44,456 million ( ended June 30, 2010 - Audited) Organisation Structure As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of bharti‘s key team players. With effect from March 01, 2006, this unified management structure of 'One airtel' will enable continued improvement in the delivery of the Group‘s strategic vision.

WORLDWIDE PRESENCE

Airtel is the 5th largest mobile operator in the world in terms of subscriber base and has a commercial presence in 19 countries and the Channel Islands.

Its area of operations include:

• The Indian Subcontinent:

– Airtel Bangla, in Bangladesh

– Airtel, in India

, in Sri Lanka

, which operates in 16 African countries:

– Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.

• The British Crown Dependency islands of Jersey and Guernsey, under the brand name Airtel-Vodafone.

Today, Airtel is the largest cellular service provider in India and fifth largest in the world.

Worldwide presence

Coverage map of Bharti Airtel across 20 countries

Airtel is the 5th largest mobile operator in the world in terms of subscriber base and has a commercialpresence in 20 countries and the Channel Islands Bharti Airtel

Bharti Airtel Limited

Type Public company

BSE: 532454 NSE: BHARTIARTL

Traded as BSE SENSEX Constituent

Industry Telecommunications

Founded 7 July 1995

Founder(s) Sunil Bharti Mittal

Headquarters New Delhi, India

South Asia, Africa and the Channel Area served Islands

Key people Sunil Bharti Mittal (Chairman) and (MD)

Fixed-line and mobile telephony, broadband and fixed-line internet services, Products , IPTV and network services

59,601 crore (US$13.11 billion) Revenue [1] (2011)

Profit 6,046 crore (US$1.33 billion) (2011)

100,785 crore (US$22.17 billion)

Total assets [1] (2011)

Employees 20,675 (Decemeber 2011)

Bharti Enterprises (63.45%)

Parent SingTel (32.15%) Vodafone (4.4%)

Airtel Africa Airtel Digital TV

Subsidiaries Bharti Airtel Lanka Airtel Bangla

Website www.airtel.com

ACHIEVEMENTS

•First to introduce push button phone in India.

•First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner networks & above 700 cities Moreover we can roam across international destinations in 119 countries including USA, Canada, UK etc with 284 partner networks.

•BHARTI announces agreement with VODAFONE marking the entry of The World's Largest Telecom Operator into India.

•16 states, 600 million people. Only India's leading mobile service offers you the truly 'freedom-packed' Prepaid!

•First to launch Cellular service on November 1995.

AIRTEL NEWS

Bharti Airtel inks USD 400 million network expansion contract with NOKIA

Bharti Airtel limited: Q2 cash profit exceeds Rs. 1,600 crores, PBT crosses Rs. 1,000 crores.

Bharti Airtel is amongst India‘s Most Admired Knowledge enterprises in 2006.

Sunil Bharti Mittal receives ‗The Honorary Fellowship‘ from IETE.

Notice of postal ballot for seeking consent of the shareholders on scheme of

amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited with Bharti Airtel Limited.

Bharti Airtel to Observe Silent period from  October 1, 2006. PROMOTIONAL STRATEGY

After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I).

All the players except RIM offered services based on the Global System for Mobile (GSM) technology. RIM provided services based on Code Division Multiple Access (CDMA) technology as well as GSM.

As competition in the telecom arena intensified, service providers took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative

promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea, relied heavily on its creative media advertising sans celebrities.

OBJECTIVES

1.To understand how Airtel addresses with its retailers in the entire region.

2.To understand how it affects the sales of Airtel‘s prepaid connections in the given region.

3.How new marketing techniques introduced by Airtel on regular time intervals have an effect on the retailers.

4.To collect data about the various schemes promoted by Airtel in different districts.

5.To find and understand as to which all communication modes are used by Airtel with its retailers.

Business Divisions

 GSM technology in India & Srilanka  Total customers 11,05,11,416 in India  13,62,464 outlets Network in 4,34,795 towns and villages – 83% coverage  1 million customers within six months of launch in Srilanka

Airtel has nationwide presence and is the market leader with a market share of almost completely (as of May 2010). It is 6th most valued brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.

On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM). The Apple iPhone 3G was rolled out in India on 22 August 2008 by Airtel & Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high prices and contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets of the world. The Apple iPhone 4 was introduced on 27 May 2011 by Airtel & . The iPhone 4S in India was available on Airtel and Aircel. While in other countries carrier locked phones (phones using the network only of carrier from which they are brought) have less price compared to fully unlocked phones (phones having the allowance of using any network supported) the carrier of India Sell at the same price of an unlocked version and are available more expensive then other countries, and therefore having less buys.

3G

On 18 May 2010, 3G spectrum auction was completed and Airtel will have to pay the Indian government 12,295 crore (US$2.7 billion) for spectrum in 13 circles, the most amount spent by an operator in this auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, , Andhra Pradesh, Karnataka, , (east), Rajasthan, , Himachal Pradesh, , , North East, Jammu & Kashmir.[] Airtel also operates 3G services in Maharastra, , Kanpur and through an agreement with Vodafone and in through an agreement with Idea. This gives Airtel a 3G presence in 15 out of 22 circles in India.

On 20 September 2010, Bharti Airtel said that it has given contracts to Ericsson India, Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in the country. These vendors will plan, design, deploy and maintain 3G-HSPA (third generation, high speed packet access) networks in 13 telecom circles where the company has won 3G licences. While Bharti Airtel has awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks in three circles. Chinese telecom equipment vendor Huawei Technologies has been introduced as the third partner for three circles.

On 24 January 2011, Airtel launched 3G services in , Karnataka – its largest circle by revenue. With this launch, Airtel became the third private operator (fifth overall) to launch its 3G services in the country following and Tata Docomo On 27 January 2011, Airtel launched 3G in Chennai and .

On 27 July 2011 Airtel launched 3G in three major cities in (Trivandrum, Cochin and Calicut) with 3G network sharing agreement between idea.

Airtel plans to cover 1,500 cities across 13 circles by the end of March 2012. The company, which has 3G licences for 13 circles, is also in talks with other service providers to roll out the services in the remaining 10 circles as part of its roaming offerings.

Airtel had about 3 million 3G subscribers as of May 2011.

4G

On 19 May 2010, the broadband wireless access (BWA) or 4Gspectrum auction in India ended. Airtel paid 3314.36 crores for spectrum in 4 circles. The circles it will provide in are , Karnataka, Punjab and Kolkata. Airtel has selected ZTE to build and operate its TD-LTE network in Kolkata and Nokia Siemens Networks in Maharashtra.

Airtel is expected to launch 4G services in March 2012 using TD-LTE technology in 2.3 GHz frequency band.

VAS Fraud

There has been lot of criticism about Airtel for its unauthorised VAS activation. Many of its services were activated automatically according to a complaint forum. Several thousands of users were falsely billed, for example downloading wallpaper or ringtones. In return Airtel launched STOP/START 121 services for such issues. Alternatively, you can sign up on the "Do Not Disturb" list to avoid all telemarketing calls and SMSes.

Controversy

Bharti Airtel (India) along with , Idea Cellular, Reliance Communications and Vodafone was issued notices by Telecom Regulatory Authority of India (TRAI) for violation of Mobile number portability (MNP) regulations. According to TRAI, they had received complaints from customers regarding wrong rejection of porting requests by telecom operators and 10 had been charged for a message requesting porting code through number 1900 Bharti Airtel faces the largest number of complaints, at 893 by December 2011, for rejecting mobile number porting requests. People having cancer due to tower above building are also reported while they mostly are found to be of Airtel and has one of the worst towers in India. digital TV HD Recorder Record your favourite shows

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Telemedia

The Telemedia business provides services in 89 Indian cities and consists of two brands.

Airtel Broadband provides broadband and IPTV services. Airtel provides both capped as well as unlimited download plans [reduced speeds at unlimited data are implied]. The maximum speed available for home users is 16Mbit/s.

Airtel Fixed Line which provides fixed line services.

Airtel has about 3.16 million wireline customers, of which 42.6% are broadband/internet subscribers as of August 2010. Until 18 September 2004, Bharti provided fixed-line telephony and broadband services under the Touchtel brand. Bharti now provides all telecom services including fixed-line services under a common brand "Airtel".

Digital Television

: Airtel digital TV

The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand name Airtel digital TV. It started services on 9 October 2008 and has about 32.44 million customers as of August 2010.

Enterprise

The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing stations. It has two sections under it.

Mobile data service

The different services under mobile data are BlackBerry services,a web-enabled mobile email solution working on 'Push Technology', USB modem that helps in getting instant access to Internet and corporate applications,Airtel Data Card that gives the liberty to access the internet anytime, Easy Mail is a platform that provides access to personal/corporate e-mails independent of handset operating system and application services that shorten the queues at the billing section, off-load the pressure on the billing staff and bring convenience to the user.

Enterprise business solutions

There are two kind of solutions offered by Airtel. One is GPRS Based Solutions like mobile applications tools for enterprise, TrackMate, automatic meter reading solutions etc. and the other is SMS Based Solutions like interactive sms, bulk sms, inbound call center solutions.

Android-based tablet

Beetel Teletech Ltd., a unit of Bharti Enterprises Ltd., on 18 August launched a 9,999 rupees ($220) 7-inch tablet in India based on Google Inc.'s Android operating system. The offering is intended to capitalize on the expected demand for cheap computing devices in the world's fastest-growing and second-largest mobile phone market.

Rest of the World

Channel Islands: Jersey and

: Airtel-Vodafone

On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of the Bharti Group, announced they would launch mobile services in the British Crown Dependency islands of Jerseyand Guernseyunder the brand name Airtel- Vodafone after signing an agreement with Vodafone. Airtel-Vodafone operates a 3G network in Jersey and Guernsey.

Jersey and Guernsey are British Crown Dependencies. They are not independent countries. Therefore, Airtel's countries of operation is considered to be 19.

Subscriber Base

Bharti Airtel has about 243.336 million subscribers worldwide – 232.95 million in India and South Asia and 50.949 million in Africa as of the end of December 2011. The numbers include mobile services subscribers in 19 countries and Indian Telemedia services and Digital services subscribers. VISION

VISION 2020

• To build India's finest business conglomerate by 2020

• Supporting education of underprivileged children through • Strategic Intent: - To create a conglomerate of the future by bringing about ―Big Transformations through Brave Actions.‖

MISSION

―We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more‖ We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more‖ We will meet the mobile communication needs of our customers through:

1) Customer service focus. 2) Empowered employees. 3)

Innovative services. 4) Cost efficiency. 5) Unified Messaging Solutions. 6) Error- free service delivery.

CORE VALUES • Empowering People - to do their best • Being Flexible - to adapt to the changing environment and evolving customer needs • Making it Happen - by striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit • Openness and transparency - with an innate desire to do good

• Creating Positive Impact - with a desire to create a meaningful difference in society.

KEY COMPETETORS

Competition airtel reliance idea tata

Name Last Price Market Cap. Sales Net Profit Total Assets (Rs. cr.) Turnover

Bharti Airtel 324.70 123,305.80 38,015.80 7,716.90 56,009.10

Idea Cellular 97.80 32,355.66 15,389.00 844.60 22,888.18

Reliance Comm 89.65 18,504.00 11,989.19 -757.99 79,597.22

Tata Comm 224.00 6,384.00 3,409.00 160.16 9,222.46

TataTeleservice 14.60 2,769.91 3,128.24 49.90 4,036.17

MTNL 29.65 1,867.95 3,841.21 -2,826.95 14,102.17

Tulip Telecom 96.00 1,392.00 2,350.66 309.54 2,971.38

Goldstone Infra 13.10 47.27 68.46 3.27 129.28

Nu Tek India 0.90 13.91 256.83 12.19 551.22 Pestel analysis

Bharti Airtel

Facts and Figures:

(Fig 1) (Fig 2)From Fig 1 we can see that in last few years there has been continuous increase in customer base both in mobile service and Telemedia services. In year 2010, Bharti Airtel has achieved 1 billionsubscribers in mobile services and 1.80 million subscribers in internet service provider (ISP).(Fig 3) (Fig 4)

The Figures 2, 3 & 4 indicates the steady growth of the organisation and also reflects the increase in theprofit margin in the year 2010. Figure 4 also indicates rise in the shareholders returns which is one of themajor reason for Bharti Airtel Success. Environment factors which affect an organization can be explained using

Political / Legal factors: In Telecom Sector of India, Foreign Direct Investment (FDI) is approximately 100%. FDI ceiling in thetelecom sector has been raised to 74% which would help the Indian telecom sector immensely. Mobilenumber portability (MNP) implementation would enable subscribers to move to different service provider retaining the original number. This implementation would hamper Bharti Airtel as customers would keepswitching to any possible networks available. In India legal obligations are defined regarding 3G auctionand bidding, which proves to be in favour of Bharti Airtel as this auction is not available to the newentrants. This political factor forbids the entry of new companies in to 3G services.Due to rising terrorist activities and hacking of confidential data on air, India is Department of Telecommunication (DoT) has made amendments related to security features which states that telecom

Bharti Airtel companies should have good policies for security and they should be responsible for the security of thenetwork. economical factor:

Indian telecom was growing approximately in a range of 20 to 30 % in year 2002 ± 2003, but this figurehas moved considerately to 40 ± 45 % during the last couple of years. Also this sector accounts for 1percent of India¶s GDP and this figure is likely to increase in few years. Approximately 30% of the servicetax revenue is contributed by telecom sector. It is also considered to be one of the major sectors whichprovide direct employment which indirectly helps in economic growth of India.

Social factor:

Now a day, customers have a notion regarding brand and status symbol. Customers have becomecautious regarding choosing of telecom network. Cost factor is also major concern to customers for example calling rates, roaming facility, etc. Most of the customers are influenced by the latest fashiontrend. A company needs to be updated with the latest technology and fashion trend. Demographic factor play an important role in selecting a product. Likes and dislikes of a teenager and adult might not besame, so the company will have to try its best to meet both the requirements. Advertisements plays veryimportant role in selecting network.

Technological factor:

Bharti Airtel is first wireless service provider which supplies roaming services, International and longdistance communication services and Value Added Services. Bharti Airtel is has high-speed optic fibrenetwork. This network presently spans 126,357 kms all over India. Bharti Airtel's international networkinfrastructure includes ownership of the submarine cable system and consortium ownership in fiveglobal undersea cable system. environmental factors:

Radio frequency waves emitted from the mobile phones harms body cells and damages the DNA. This isnot yet proved that such changes were risk to human health.

Internal environment:

Internal environment affecting the organisation can be expressed in terms of SWOT Analysis.

Strengths:

Bharti Airtel is one of the Leading Telecom Company in India and it is renowned globally. Even during theeconomic turmoil share holders have maintained their trust in the organisation. In turn, Bharti Airtel hasresponded strongly and has not let down any shareholders. Any organization requires strong partnerswhich would help and support in various activities. Similarly, Bharti Airtel has strong strategic alliance withEricson, IBM and Cisco. Airtel is match box strategy in rural areas helped them to penetrate deep in therural sectors. Bharti Airtel has its presence in more than 300000+ rural areas. Airtel has always taken aninitiative in promoting the services. Various services like hello tunes, Electronic recharge and Airtel Livehave provided a competitive edge. weakness:

In spite of good operation and marketing strategy, the mobile connectivity is poor in rural India. Bharti Airtel has it taken enough measures in overcoming geological factors. Bharti Airtel has too much dependency on Domestic market of India and Asia. In India, the mobile towers of Bharti Airtel arecontrolled, monitored and maintained by Ericson; as a result it does not have a single mobile tower.

POTERS FIIVE FORCES MODEL

MARKET PRODUCT PENETRATION DEVELOPMENT

ENTERED IN IPLC PRODUCTS BROADBAND AND FIXED LINE MARKET

MARKET DIVERSIFICATION DEVELOPMENT

LOOKING FOR OUTSOURCING OVERSEAS MARKET

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firm‘s present and potential products and markets / customers. He called the four product-market strategic alternatives market penetration [existing market + existing product], market development [existing product + new market], product development [existing market + new product], and Diversification [new product + new market]. The company should follow all four strategies depending on the demand and product as indicated in the matrix. The company perhaps needs to focus more on the comparatively neglected area of diversification.

MARKET PENETRATION: Airtel entered in broadband and fixed phone line market. PRODUCT DEVELOPMENT: IPLC products MARKET DEVELOPMENT: Airtel is now looking for overseas market. Company has already make his presence in Nigeria and Seychelles

DIVERSIFICATION : Airtel has now outsourcing sum of its services like customer services with IBM The industry structure has become relatively unfavorable c compared to earlier monopolistic times

NDUSTRY STRUCTURE PORTER’S MODEL

The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer. The value chain for cellular mobile service and Internet Service Providers (other than cable based net connections) are similar in as much as the calls reach the destination through similar local loop, long distance and international gateway.

4 P`S OF AIRTEL

PRODUCT

• Airtel Pre-paid • Airtel Post-paid • Blackberry Wireless Handheld • Value Added Services (VAS) The different value added services provided by Airtel are- Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service Hello Tunes & Ring Tones Voice Mail Service Easy Post-paid bill collection Gifting of Ring Tones & Hello Tunes GPRS

• Business Solutions

PRICE

Customer based pricing strategies.

Flexible pricing mechanism

Controlled by TRAI.

PLACE

Customer based pricing strategies . Flexible pricing mechanism

Controlled by TRAI.

PROMOTION • Large scale print and video advertising.

• Big celebrities like SRK and Sachin are roped in to endorse the product because it .

• In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is the most downloaded tune in India.

• Provides innovations such as Bollywood movie premiers, music services such as ring back tones & many more.

MARKETING MANAGEMENT

Segmentation , Targeting, and Positioning

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

Segmentation, Targeting, and Positioning:

1) Segmentation:

Segmentation, targeting, and positioning together comprise a three stage process. We first,

(1) Determine which kinds of customers exist, then

(2) Select which ones we are best off trying to serve and, finally,

(3) Implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

Types of Segmentation:

1) Geographic variables:-

a) Region of the world or country: East, West, South, North, Central, coastal, hilly, etc. b) Country size/country size: Metropolitan Cities, small cities, towns. c) Density of area: Urban, Semi-urban and Rural. d) Climate: Hot, Cold, Humid, Rainy.

2) Demographic variables:-

a) Age b) Gender c) Family size d) Education e) Income f) Occupation g) Education h) Socioeconomic status i) Religion j) Nationality k) Language

3) Psychographic variables

a) Personality b) Life style c) Value d) Attitude

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

4) Behavioral variables

a) Benefit Sought. b) Product Usage Rate. c) Brand Loyalty. d) Product end Use. e) Readiness-to-buy Stage. f) Decision Making Unit. g) Profitability. h) Income Status.

In general, it holds true that ―You can‟t be all things to all people,‖ and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable.

Levels of Market Segmentation:-

Mass Marketing Same product to all consumers (No segmentation)

Segment Marketing Different products to one or more segments (some segmentation)

Niche Marketing Different products to subgroups within segments (more segmentation)

Micromarketing Products to suit the tastes of individuals or locations (complete segmentation)

Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

Competitor really can‟t offer much that another one can‟t. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travelers—usually business travelers— pay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over.

Note that segmentation calls for some tough choices. There may be a large number of variables that can be used to differentiate consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time.

Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers.

2) Targeting:-

A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.[1] A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace.

A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style. Consumers are persuaded by the characteristics in the advertisement and those of the consumer.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

3) Positioning:-

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Although there are different definitions of Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition).

Generally, the product positioning process involves:

1) Defining the market in which the product or brand will compete (who the relevant buyers are) 2) Identifying the attributes (also called dimensions) that define the product 'space' 3) Collecting information from a sample of customers about their perceptions of each product on the relevant attributes 4) Determine each product's share of mind 5) Determine each product's current location in the product space 6) Determine the target market's preferred combination of attributes (referred to as an ideal vector) 7) Examine the fit between: 8) The position of your product 9) The position of the ideal vector 10) Position.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

Segmentation is very important because of the better predictability of the target consumer group and to design the proper marketing mix strategy.

es:-

East Region (West Bengal, Assam, Arunachal Pradesh etc) West Region (Gujarat, Rajasthan, Maharashtra etc) S South Region (Andhra Pradesh, Karnataka, Kerala etc) N North Region (Punjab, , Himachal Pradesh etc) C Central Region (, , etc)

Urban (Cities Such As Mumbai, Delhi, , Jaipur etc) Semi-urban (Nasik, Aurangabad, Ahemadnagar etc) Rural (Baramati, Khed, Saswad etc)

riables:-

1) From age group 18 to 35: As most of the people start using a mobile from the age of 18 so we may make a segment of a age group 18 to 35 as most of the will be students and remaining will be freshers working in the industry. So they need SMS plans for chatting and they also need cheap calling rates. We may provide the FRINDZ card to them.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

2) 35 and above: As most of these group will be working and don‟t use mobile for SMS and chatting. So this group needs only the calling facility at a reasonable rate. This Group may continue using the general plan.

PREPAID & POSTPAID :

Generally the mobile service providers plan their marketing strategies according to the prepaid market and postpaid market. So it is basically depends upon the income of the consumer that whether he selects the prepaid or postpaid.

Generally the consumers with low income choose prepaid and consumers with high income choose postpaid.

We can also segment it on the basis of the loyal customers and non loyal customers of the brand. We can provide various schemes and offers to the loyal customers to retain him with our product.

MARKETING MANAGEMANT (Segmentation, Targeting, and Positioning)

Airtel has targeted the premium and upper middle class. The motto behind this this only those segments should be targeted who value time and have the paying capacity.

During the introduction stage there was a huge pressure to get consumers across to hook up with their brand, because getting them to Airtel by their earlier brand and switching their brand loyalty was too tough. Airtel marketers have been concentrating totally on the business executive class but now that the basic viable volumes has been built up and prices have declined to a certain extent they are planning to venture further field.

TARGETING AREAS: Professionals by giving free calls in postpaid connections. Entrepreneur by giving various plan in which they may get internal calling free. Youth with the „FRIENDZ‟ Scheme. Targeting Students by introducing postpaid connection only for students and with zero rentals.

The product is supposed to be a business efficiency tool.

A lifestyle revolution and a status symbol The emphasis is to remove misconception that the cell phone is an expensive means of communication

It‟s a day to day use commodity and is no more a symbol of status.

FINANCIAL ANALYSIS

Indian Telecom Sector

BHARTI AIRTEL - PERFORMANCE AT A GLANCE

1.

Full Year Ended Quarter Ended

Particulars UNITS USGAAP IFRS IFRS IFRS IFRS IFRS IFRS IFRS

2009 2010 2011 Mar 2010 Jun 2010 Sep 2010 Dec 2010 Mar 2011

Operating Highlights Total Customer Base 000‟s 97,594 137,013 220,877 137,013 183,372 194,823 207,799 220,877 Total Minutes on Network Mn Min 506,070 643,109 890,093 182,001 206,213 216,373 227,262 240,245 Network Sites Nos 93,368 107,443 131,304 107,443 118,963 123,869 127,878 131,304 Total Employees 2 Nos 24,839 18,791 23,371 18,791 25,304 24,766 24,501 23,371 No. of countries of operation Nos 2 3 19 3 18 19 19 19 Population Covered bn 1.18 1.36 1.83 1.36 1.82 1.82 1.82 1.83

Consolidated Financials Total Revenue Rs mn 369,615 418,472 594,672 107,491 122,308 152,150 157,560 162,654 EBITDA Rs mn 151,678 167,633 199,664 40,829 44,140 51,212 49,816 54,496 Cash profit from operations before Derivative & Rs mn 151,990 162,301 179,527 39,588 42,103 45,399 43,854 48,171 Exchange Fluctuations

Cash profit from operations after Derivative & Rs mn 140,065 167,455 177,851 41,185 39,942 47,893 42,346 47,670 Exchange Fluctuations Profit / (Loss) before Tax Rs mn 93,073 105,091 76,782 24,411 20,719 22,267 15,495 18,302 Net income Rs mn 84,699 89,768 60,467 20,443 16,816 16,612 13,033 14,007 Rs mn Capex 140,171 96,431 140,100 18,564 18,361 33,047 43,210 45,483 Operating Free Cash Flow (EBITDA - Capex) Net Rs mn 11,507 71,202 59,564 22,265 25,779 18,165 6,606 9,013 Debt Rs mn 69,635 23,920 599,512 23,920 602,308 601,438 598,477 599,512 Shareholder's Equity Rs mn 303,945 421,940 487,668 421,940 435,037 462,174 467,838 487,668 Consolidated Financials Total Revenue US$ Mn 7,254 9,271 13,319 2,381 2,625 3,387 3,516 3,643 EBITDA US$ Mn 2,977 3,714 4,472 904 947 1,140 1,112 1,221 Cash profit from operations before Derivative & US$ Mn 2,983 3,595 4,021 877 904 1,011 979 1,079 Exchange Fluctuations

Cash profit from operations after Derivative & US$ Mn 2,749 3,710 3,983 912 857 1,066 945 1,068 Exchange Fluctuations Profit / (Loss) before Tax US$ Mn 1,827 2,328 1,720 541 445 496 346 410 Net income US$ Mn 1,662 1,989 1,354 453 361 370 291 314 US$ Mn Capex 2,751 2,136 3,138 411 394 736 964 1,019 Operating Free Cash Flow (EBITDA - Capex) Net US$ Mn 226 1,577 1,334 493 553 404 147 202 Debt US$ Mn 1,367 530 13,427 530 12,925 13,389 13,356 13,427 Shareholder's Equity US$ Mn 5,966 9,347 10,922 9,347 9,336 10,289 10,440 10,922 Key Ratios EBITDA Margin % 41.0% 40.1% 33.6% 38.0% 36.1% 33.7% 31.6% 33.5% Net Profit Margin % 22.9% 21.5% 10.2% 19.0% 13.7% 10.9% 8.3% 8.6% Net Debt to Funded Equity Ratio Times 0.23 0.06 1.23 0.06 1.38 1.30 1.28 1.23 Return on Shareholder's Equity % 32.5% 29.0% 13.3% 25.1% 21.3% 18.5% 15.4% 13.3% Return on Capital employed % 30.4% 24.4% 10.8% 21.6% 18.4% 13.9% 11.2% 9.2%

FINANCIAL HIGHLIGHTS

This section presents the (1) audited financial results for the fourth quarter and full year ended March 31, 2010, and (2) audited financial results for the fourth quarter and full year ended March 31, 2011 as per International Financial Reporting Standards (IFRS).

Detailed financial statements, analysis and other related information is attached to this report as Annexure (page 30 - 32). Also, kindly refer to Section 7 - use of Non - GAAP financial information (page 26) and Glossary (page 44) for detailed definitions. 3.1 Consolidated - Summary of Consolidated Financial Statements

3.1.1 Consolidated Summarized Statement of Operations (net of inter segment eliminations) Amount in Rs mn, except ratios Quarter Ended Year Ended Particulars Y-on-Y Y-on-Y Mar-11 Mar-10 Mar-11 Mar-10 Growth Growth Total revenues 162,654 107,491 51% 594,672 418,472 42% EBITDA 54,496 40,829 33% 199,664 167,633 19% Cash profit from operations before Derivative 48,171 39,588 22% 179,527 162,301 11% and Exchange Fluctuation

Cash profit from operations after Derivative and 47,670 41,185 16% 177,851 167,455 6% Exchange Fluctuation Profit / (Loss) before Tax 18,302 24,411 -25% 76,782 105,091 -27% Current tax expense 5,710 4,945 15% 23,961 22,317 7% Profit / (Loss) after current tax expense 12,592 19,466 -35% 52,821 82,774 -36% Deferred tax expense / (income) (714) (1,530) -53% (6,171) (8,864) -30% Net income 14,007 20,443 -31% 60,467 89,768 -33% Capex 45,483 18,564 145% 140,100 96,431 45% Operating Free Cash Flow (EBITDA - Capex) 9,013 22,265 -60% 59,564 71,202 -16% EBITDA / Total revenues 33.5% 38.0% 33.6% 40.1%

3.1.2 Consolidated Summarized Statement of Financial Position Amount in Rs mn As at Particulars Mar 31, 2011 Assets Non-current assets 1,352,987 Current assets 112,077 Total assets 1,465,064

Non-current liabilities 578,988 Current liabilities 369,845 Total liabilities 948,833

Equity & Minority Interest Equity 487,668 Minority Interest 28,563 Total Equity & Minority Interest 516,231

Total Equity and liabilities 1,465,064

Amount in Rs mn

As at Mar 31, 2011 Particulars India & SA Africa Africa Others Eliminations Total Assets Non-current assets 782,026 576,229 443,560 (448,828) 1,352,987 Current assets 93,120 31,581 273 (12,897) 112,077 Total assets 875,146 607,810 443,833 (461,725) 1,465,064

Liabilities

Non-current liabilities 153,330 181,994 381,958 (138,294) 578,988 Current liabilities 201,257 128,666 52,822 (12,900) 369,845 Total liabilities 354,587 310,660 434,780 (151,194) 948,833

Equity & Minority Interest Equity 494,042 295,104 9,053 (310,531) 487,668 Minority Interest 26,517 2,046 - - 28,563

Total Equity & Minority Interest 520,559 297,150 9,053 (310,531) 516,231

Total Equity and liabilities 875,146 607,810 443,833 (461,725) 1,465,064

INDIAN TELECOM SECTOR

• Fastest Growing Sector - CAGR 22% (2002-07)

• Second Largest Telecom Market - Lowest tariff charges in the world - Wireless Subscribers - 315.3 Mn

- Wireline Subscribers - 38.4 Mn - Teledensity - 30.6

• 23 Circles - 4 Categories ( Metro, A, B & C)

• Bharti Airtel - Largest player with presence in 23 Circles

Postpaid Vs Prepaid

Customers & Market Share

Key Ratios - Airtel Mar-08Mar-07Mar-06Mar-05Mar-04 Debt-Equity Ratio 0.38 0.54 0.83 0.6 0.07 Long Term Debt-Equity Ratio 0.35 0.5 0.76 0.5 0.03

ROCE (%) 34.88 34.07 22.55 23.96 0.16 RONW (%) 39.53 43.04 31.82 23.88 -0.27

http://www.capitaline.com

Key Ratios - Industry 2007 2006 2005 2004 2003 Debt-Equity Ratio 0.35 0.21 0.27 0.34 0.36 Long Term Debt-Equity Ratio 0.3 0.19

Parameter Bharti Vodaphone RCom Idea BSNL TATA Commetns

Subscriber 24 17.6 18.5 11 13 9 Overall Market Leader Share

Share in 19.6 20.6 20.1 5 - 14.4 Vodafone and RCOM Metros marginally above Airtel especially in Mumbai and Kolkata

‘A’ 25.7 18.8 16.2 13.2 11.9 8.2

‘B’ 21.1 19.8 18.7 14 16.6 8.1 Market Leader

‘C’ 33.7 4.3 23 2.5 17.6 5.8

Operator Rural Customers Percentage of ( Mn) rural customers

Bharti 29.53 27%

RCOM 15.13 13.8%

Vodafone 20.41 18.6%

BSNL 19.09 17.4%

• Largest player present in rural markets- will assist revenue growth • Future growth foundation

BUSINESS PERFORMANCE

Parameter Bharti RCom Idea Tata Comments Teleservices

Net Profit 22.5 17 15 -7 Clearly Most Profitable Margin

ROIC 29 12 19 -3.9 Clearly Best ROIC

AIRTEL STRATEGY

MANTRA : Focus on Core Competencies and Outsource the rest! •Airtel partnered with leading players in telecommunication players across the globe.

•It has managed to work with the best of domain specialists globally and emerge as a world class entity.

•Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

PERFORMANCE TILL DATE

• Bharti Airtel has enjoyed an excellent run ever since the telecom sector opened.

• It has managed to hold on to its leadership position inspite of the presence of other players with deep pockets – Ambani‘s, T ata‘s, Birla‘s and Vodafone.

• Has coped well with regulatory changes.

• Continues to attract and delight customers.

FUTURE STRATEGIES

• Translate its expertise in Indian markets to other emerging economies.

• This could call for acquisitions globally.

• Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete.

• Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited

• Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally.

• Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete.

• Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.

GROWTH FACTORS

POWER TO KEEP IN TOUCH

• Positioned in premium category aimed at elite

class of society

• Convey power of instant communication

• Perception of aspirational and lifestyle brand

• Airtel decided that the brand should always connote leadership–be it in network, innovations, offerings, services

• Sponsored games like Golf

LIVE EVERY MOVEMENTS

• Launched to capture the imagination of the customer

• Projects a persons desire to spontaneously communicate through words, emotions, sights, sounds, thoughts and actions over boundaries, distances and geographies

EXPRESS YOUR WAYS

• In 2003, Airtel repositioned its brand with ―Express yourself‖ campaign

• Changed its logo to give more energetic and younger look

• Highlight capability of Airtel‘s performance and network coverage

• Launched in regional language

FIRST MOVE ON ADVANTAGES

• Electronic recharge • Hello tunes

• Airtel Live! • Portfolio manager • Song catcher • Easy music • Black berry handsets • M-cheques

RULAL STRATEGIES

• Airtel follows “Match-box strategy”

• The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards

• Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2011.

AIRTEL ADVERTIESMENT

• Airtel basically uses two appeal to connect Massive advertising through

• Google AdSense

• BidVertisers

• Sponsor online games at Zapak.com

SALES PROMOTION

• ―Friendz‖ pre-paid plan

• ―Ladies special‖ plan

• ―Senior citizen‖ plan

PUBLICITY AND ADVERTIESNENT

Sponsored events

• Delhi half marathon

• Delhi golf tournament

Sponsored TV shows

• Big Boss

• KBC

• Indian Idol

BHARTI AIRTEL LTD

• The company issued its IPO in 2002 at a issue price of Rs 45.

• The stocks are listed on NSE, BSE and DSE.

• Bharti Airtel had last split the face value of its shares from Rs 10 to Rs 5 in 2009.

• It has good dividend track record.

• Bharti Airtel had last declared a dividend of 20% for the year ending March 2011.

• India the most talkative nation after America.

• Bharti Airtel, today is a behemoth with close to 25% share of country‘s mobile telecom market.

• Serves 75 million subscribers base.

• Most profitable telecom network in the country with a revenue more than Rs.9,000 crore.

STRATEGIC ISSUE OF DISTRIBUTION

• Flow of Information in channel members.

• Availability of products on required time frame.

• Control over the channel.

• Availability of promotional items to the channel.

• Claim settlement should be solved within the committed time.

• Conflict between the channel members should be taking care by the company.

SERVICE BENCH MARK

Corporate Responsibility at Bharti Airtel

•To be responsive to the needs of our customers

•To continuously improve our services – Innovativel and expeditiously

•To be transparent and sensitive in our dealings with all stakeholders

Analysis of Customer Expectations

•\Vhat is the preferred mode of interaction with customer ca re?

Pre-recorded Customer you call customer ca re? Ca re Executive Voice & Guided tou r •Seeking basic •79% •21% information •Understanding a ta riff •70% •305 plan •Seeking information on •66% •34% new service/scheme •Downloading ring-tone •46% •54o/o

•Complaining on •69% •31% network quality •There is a long queue to •52% •48% talk •Seeking a cla rification •67% •33% on billing •Reporting a billing •67% •33% discrepancy •Reporting loss of •68% •31% handset •Reporting a number for call ba rring •51% •49o/o26

Loyalty is a function of satisfaction with various aspects of services that the subscriber has experienced. Likelihood of staying with the same operator and intention to recommend it to others are important measures of loyalty. Therefore, we have looked at satisfaction against likelihood of staying and intention to recommend.

Major Challenges

Getting a Disproportionate Share of New customers

• Plan and Deploy network

• Distribution through a hub and spoke model

• Create alliance- IFFCO, Nokia association

• Build Relevance for its products and services- Network & affordability

• Fastest Growing Sector - CAGR 22% (2002-07)

• Second Largest Telecom Market - Lowest tariff charges in the world - Wireless Subscribers - 315.3 Mn - Wireline Subscribers - 38.4 Mn - Teledensity - 30.6

• 23 Circles - 4 Categories ( Metro, A, B & C)

• Bharti Airtel - Largest player with presence in 23 Circles

CMR

• Customer satisfaction.

• Customer delightment.

• Customer solution.

• Customer convenience.

• Customer responsibility.

• Customer problem.

• Customer facility.

CMR OF AIRTEL

• Best services

• Prepaid connection

• Post paid connection

• VAS(value added services)

• GPRS

• GSM

TECHNOLOGY

CDMA - Already there are

big players in this

segment Reliance ,

Tata

3G - Value added services

potential still to be

tapped fully

2G/3G - GSM Currently

commands 70% of

mobile subscribers in

India

THEARTS FOR COMPETITION

SUPLLIERS BARGAINING

CUSTOMER BARGAINING

Lack of differentiation among Service Providers

-Ve Impact

Consumers

BUSINESS STRENGTH

Current market share

Brand image

Brand equity

Production capacity

Corporate image

Profit margins relative to competito

R & D performance

Managerial personal

Promotional effectiveness

Major Challenges Build Capability to Make Scale an Advantage

• Segmentation( consumer, trade) and segmented delivery

• Technology automation

• Building internal people capabilities like restructuring of the marketing team which was carried out recentl

Future Challenges • Mobile number portability (MNP) is a facility given by operators where a subscriber can move from one service provider to another without changing the number allocated to the subscriber. • Thus, under MNP, a subscriber will have the option of retaining the same phone number issued by the old operator even with the new operator. • To achieve the successful implementation of MNP, operators should consider carrying out a comprehensive cost-benefit analysis to ascertain whether or not the implementation of the technology would prove to be profitable for the operator.

GOVERNMENT POLICIES

• The Indian government allows FDI of up to 74 per cent

• Universal Service Obligations (USO)

• Unified Access Service License Regime (UASL)

• Mobile Number Portability(MNP)

• 3G Policy and spectrum allocation

Core values

• Empowering People - to do their best.

• Being Flexible - to adapt to the changing environment and evolving customer needs.

• Openness and transparency - with an innate desire to do good.

• Creating Positive Impact – with a desire to create a meaningful difference in society.

STOCK SYSTEM IN DISTRIBUTION

The complete stock maintenance procedure are is categorically divided in two parts.

1.Stock to be Maintained by Distributor

The distributor has to keep the LAPU balance for minimum 7 days; Here 35% of the value must be in RCV

2. Stock to be Maintained by Retailer The retailer has to keep LAPU balance for 3 days (minimum amount Rs.1500) Here 33% of the value must be in RCV.

EVALUATION OF TELECOM IN INDIA

ILD services was BSNL was Number portability Independent opened to Intra-circle merger established was proposed Private players regulator, TRAI, competition guidelines were by DoT Calling Party Pays (pending) were allowed in was established established Attempted to (CPP) was Value Added Go-ahead to boost Rural implemented Services the CDMA telephony

technology 1994 1999 2007 2002 2003 2004 2005

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, d n e n d s e e c l t t i h v e t e o r i i n t n c h g u e m t b o h e u e n t m t s i a c d n a e r o r w p i o t e r i r l o , d n . t b o e s c i o

FINDINGS

Retailers play a vital role in today‘s market environment where there is high & cut throat competition.

Retailers has the highest satisfaction level among the service provider by Airtel.

Availability of Airtel recharge coupons at every retailer as they are produced and distributed within .

Strong Distribution Channel.

Limitations

•Start-up business had to outsource to industry experts in the field.

•Until recently Airtel, did not own its own towers.

•More focus on African countries is declining its sales in domestic market.

BIBLOGRAPHY

www.airtel.com

www.google.com

Business India

Economic times

RECOMMENDATIONS/ SUGGESTIONS:

Some of the recommendations or suggestions suggested by me as part of my internship report to Airtel (UN) are as follows:-

1.Provide regular training to the agents & distributors who act as link between AIRTEL & their retailers.

2.Provide proper & complete information to agents & distributors well in advance as to when a new scheme is to be launched so the same can be forwarded to the retailers well in advance of when a scheme is actually launched, which is not happening currently in the most of the Zone.

3.Bringing new innovative & inductive schemes for its retailers & follow up it with new schemes for retailers settlement which is another major grievance of retail towards Airtel & the reason why they prefer Vodafone over Airtel in most of districts covered by me in my report.

4.Organize party‘s for retailers who perform outstanding continuously or are the leaders for a quarter of year in each district to create a competitive environment among the retailers of Airtel.

CONCLUSION

The conclusion of my study is that AIRTEL‘s communication with its retailers has a major impact to its users. Airtel can further increase its lead & market share by improving its communication process with its retailers which currently favors Vodafone due to various reasons. As most of the retailers says that they don‘t get their claims /commission on time from Airtel & take months at times which is generally a monthly affair incases of other service providers or even fortnightly in case of Vodafone, Airtel‘s premium competitor in Telecom Industry in entire of India.

It need to adopt a very good inductive strategy towards its retailers if it has to regain the lost ground in the states. I carried my survey by communicating directly with retailers after regular interval of time thus able to find out the loop holes of its agents, distributors as well as what can be done & how it can be done by coming to know directly from representatives of Airtel who actually interact with the customer of Airtel.

SWOT ANALYSIS

Strengths:

Bharti Airtel is one of the Leading Telecom Company in India and it is renowned globally. Even during theeconomic turmoil share holders have maintained their trust in the organisation. In turn, Bharti Airtel hasresponded strongly and has not let down any shareholders. Any organization requires strong partnerswhich would help and support in various activities. Similarly, Bharti Airtel has strong strategic alliance withEricson, IBM and Cisco. Airtel is match box strategy in rural areas helped them to penetrate deep in therural sectors. Bharti Airtel has its presence in more than 300000+ rural areas. Airtel has always taken aninitiative in promoting the services. Various services like hello tunes, Electronic recharge and Airtel Livehave provided a competitive edge.

Weakness:

In spite of good operation and marketing strategy, the mobile connectivity is poor in rural India. Bharti Airtel hasn¶t taken enough measures in overcoming geological factors. Bharti Airtel has too muchdependency on Domestic market of India and Asia. In India, the mobile towers of Bharti Airtel arecontrolled, monitored and maintained by Ericson; as a result it does not have a single mobile tower. Bharti

Bharti Airtel Airtel does not have experience and exposure on 3G technology as compared to its counterpartVodafone and .

Opportunities:

Current market trend indicates that there would be rapid increase in 3G and Wimax technology in country.Enterprise Telecom services includes services like voice over internet protocol (VoIP), telecom servicesproviders are targeting these areas. The growth in Value added services industry was approximatelyUSD 632 million and is expected to increase by 60%. Bharti Airtel has a strategic alliance with CISCOand Servion Global to develop hosted call centre (HCC). The forecasted market size for HCC in thecountry would be approximately $50 million a year and will increase steadily. Bharti Airtel has acquiredstake in Zain group in Africa and has got an entry to explore African market. Bharti Airtel should enter theinternational market. It should grab all the possible opportunities to make a strong foothold in telecomsector all over the globe.

Threats:

Failures of MTN deal damaged the reputation of company. Better network and coverage by CDMAoperators (Reliance communication and ) can lead to switching of customers tosome different network. Increase in number of both domestic and international mobile service providers(Domestic ± Uninor, Videocon and International - Virgin media). Implementation of Mobile number portability

(MMP) may lead to switching of subscribers to different mobile service providers. As all theservice providers are trying to find new ways to attract customers, cost per call is reducing. This may leadto decrease in Average revenue per user (ARPU). Now a day, due to increase in terrorist activity,service providers need to make sure that the network is secured and it is not used for ill legal activates

3 DAYS TO GO

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