Consumer Behaviour Broadbband Airtel

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

2008

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

A STUDY ON CONSUMER BEHAVIOUR OF AIRTEL BROADBAND SERVICES

SUBMITTED BY: PADMA K. JHA MBA-IB (2008-2010) Roll No.: A1802008082

INDUSTRY GUIDE Mr. Nitin Bassi Assitant Manager Bharti Airtel Ltd.

FACULTY GUIDE

Prof. Dinesh Khurana Senior Faculty A.I.B.S.

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ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr. Nitin bassi Assistant Manager of Bharti Airtel Limited, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of AIRTEL for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Prof. Dinesh Khurana of my institute, for his continued guidance and invaluable encouragement.

PADMA K. JHA

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CERTIFICATE OF ORIGIN

This is to certify that Ms. Padma Kumari, a student of Post Graduate Degree in International Business and Marketing, Amity International Business School, Noida has worked in the Bharti AIRTEL Ltd., under the able guidance and supervision of Mr. Nitin Bassi, Assistant Manager-Bharti Airtel Ltd. The period for which he was on training was for Eight weeks, starting from 4th May 2009 to 04th June 2009. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Prof. Dinesh Khurana

PADMA K. JHA

Senior Faculty A.I.B.S.

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TABLE OF CONTENTS (Research Based) Chapter No. Subject

Page No.

ACKNOWLEDGEMENT.................................

3

COLLEGE CERTIFICATE.............................. 4 Ch.# 1.0

EXECUTIVE SUMMARY................................... 8

Ch.# 2.0 2.1

2.5

Research Methodology…….................................. 11 Primary Objectives....………….............................. 12 Research Design……………….............................. 13 Sample Design……………….. .............................. 14 Scope of the Study…………….............................. 16 Limitations……………………. ............................ 18

Ch.# 3.0

Critical Review of Literature………................... 20

Ch.# 4.0

Profile ……………………....................................

2.2 2.3 2.4

4.1 a. b. c.

Industry Profile………………............................ Introduction............................................................. 25 Brief history............................................................. 26 Major players .......................................................... 27

4.2 a. b. c. d. e. f. g. h. i. j.

Company profile.................................................... 28 Introduction of Bharti Airtel................................... 29 Brand……………………………........................... 31 Strategic partnership................................................ 31 Organisation structure ............................................. 32 Awards and recognition....................... ................... 33 Corporate responsibility……………....................... 34 Employee overview................................................. 35 Environment, health and saftety.............................. 36 Community initiatives............................................. 40 Corporate governance........................................ 42

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k.

43

Board of directors..............................................

l) 1. 2. 3.

Product profile………………….......…… Fixed line services .................................... ……..44 Broadband DSL................................................ 48 Digital tv interactive.......................................... 54

m) n) o) p) q)

Advantages of broadband.................................... 58 Technology……………………........................... 59 Airtel offers………………….............................. 60 Marketing orientation…………..............………….63 Product life cycle……… …………........................ 64

4.3

Swot Analysis......................................................... 65

Ch.# 5.0 5.1 5.2 5.3

Data…………………………………...................... Collection……………………….................. ……..73 Primary Data................................................. ……..75 Secondary Data........................................................ 76

Ch.# 6.0

Findings & Analysis…………………................... 79-86

Ch.# 7.0

Recommendations……………….......……………88

Ch.# 8.0

Bibliography………………….......……………… 91

Ch.# 9.0

Annexure……………………………............. Questionnaire........................................................... 93 Tables…………………….................……………. 95 Graphs……………………..................……………98

9.1 9.2

9.3 Ch# 10.0

Synopsis of the project .......................................... 101

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Case Study..…..........................................................103

CHAPTER-1

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1.0 EXECUTIVE SUMMARY Bharti Airtel Limited, a group company, is one of India’s leading private sector provider of telecommunication services with over 80 million customers as of end of October 2008, spanning Mobile services, Telemedia services and Enterprise services. Bharti Airtel Limited has been voted as India's most innovative company, in a survey conducted by The Wall Street Journal. Theoretical and practical knowledge are two different but interrelated aspects, which makes concepts clear and vision brighter and helps in facing the actual situation. Although theory is first and foremost step, which acts as a base and creates a picture in mind for a concept. But practical knowledge is the one, which bridges the gap between the imagination and reality, which ultimately gives shape to the concept. Practical knowledge is also very important for developing thoughts and giving shape to them. As I have done primary research, which is quite important and helpful for: Development of better understanding concept. Generate morale. SWOT analysis (Strength, Weakness, Opportunity and Threat). Acquainted me with job performance standard. It installs a sense of security in meeting the various challenges present in the environment. This type of practical work could be taken as a beginning of the process of indoctrination into the ways of business organization and it is the first step which would be helpful in future prospects. Though it is not possible to have the information of all the spheres in market, in such a very short period, but I tried to get more and more about all functions and practices applied in practical working. The project is based on the study of consumer trends, behaviour, preferences and level of satisfaction in Bharti Airtel Ltd. The study was conducted in Delhi with sample size of 100. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 8

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This project attempts to identify and define areas related to consumer behaviour regarding new connection services. It also attempts to develop at least first approach to these areas, to think through policies, principles, and practices to accomplish the new tasks and to satisfy the customer needs. By this practical training I am able to equip the manager with the understanding, the thinking, the knowledge, and the skills for todays and also for tomorrow’s market exigency. The study is based on the feedback from customer in Saket and Rajouri Garden, New Delhi. The study is revealed that in that particular area consumers are 68% aware regarding Airtel broadband & teleservices and as per the statistical analysis we found that out of various sales promotion techniques 38% customers suggest that sales person is the best sales promotion technique which attract most to the them and 33% suggest that T.V is best sales promotion technique which attract most to them, out of 100 sample size 97% respondent are getting broadband & teleservices and out of them 58% customers are using (0-1) single connection and 35% are using (2-3) connection , 37% customer are expending more then 1000 rupees per month and 28% customers are expending less then 500 , 75% customers rate their services as good it mean they are satisfied with services of their current service provider and not ready to switch on any other competitor company , 47% customers go for economical services and as per the data collected MTNL is company who is providing more economical services rather than other competitors and if we given an option to customer to switch on other company than 51% will go for MTNL because its more economical and 41% for Airtel because its services Initially I was just having the bookish knowledge about all Marketing policies, practices and functions, but after joining this organization, I got most of the practical knowledge. I have come to know, what actually happens in the organizations. The management of Marketing is a very complicated and challenging task for those who are entrusted with successful running of an organization; and this implies considerable knowledge of various aspects of “Marketing management”.

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.

CHAPTER – 2

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2.0 RESEARCH METHODOLOGY All business undertaking operates in the world of uncertainty. There is no unique method of which can entirely eliminate uncertainty. Any type of organization in the present environment need systematic supply of information coupled with tool of analysis for making sound decision, which involves minimum risk. It is in this context that research methodology plays a very important role. Research is an essential and powerful tool in leading man toward progress. Without systematic research there would have been very little progress. So, that rightly said ,”The secret of our cultural development has been research , pushing back the areas of ignorance by discovering new truths, which in turn, lead to better ways of doing things and better products”. Research design is the plan, structure and strategy of investigation conceived so as to obtain to research problem and control variances. It is the specification of methods and procedures for acquiring the information needed. It is overall operational pattern or framework of the project that stipulated what information is to be collected and from which source and by what procedure.

Research always starts with a question or a problem. Its purpose is to answer to questions through the application of the scientific methods. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies. Once the problem is defined properly then one can easily Chalk out the Objectives for the research.

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RESEARCH OBJECTIVES:

The primary objectives of the study was  The objective of the study is to understand the consumer’ pre, post, during perception of broadband connection and consumer buying behaviour and attitude for Bharti Airtel telemedia services.  To Analyzing the satisfaction level of customers towards Airtel Broadband service. The secondary objectives of the study was  To find out the consumer awareness and also creating an Awareness to

Airtel telemedia customers about the facilities in broadband connections and its new products.  To find out best sales promotional technique?  To find out consumer top of the mind when they buy Broadband and Telephone?  To find out brand preference?  To find out the demand for Airtel Broadband and Telephone?  To find out consumer needs and expectations?  To undergo S.W.O.T Analysis of the organisation?  To study consumer decision-making & preferences.  To study marketing strategies adopted by Airtel.  To study the level of customer satisfaction in Airtel.  To understand the needs of different consumer segments.

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 Comparative study of different Telecom companies.

2.2

RESEARCH DESIGN

Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below. TYPES OF RESEARCH DESIGN :EXPLORETARY RESEACH: - In the case of exploratory research, the focus is on the discovery of ideas. An exploratory study is generally based on the secondary data that are readily available. It does not have formal and rigid as the researcher may have to change his focus or direction, depending on new idea and relationships among variables. An exploratory research is in nature of a preliminary investigation of the situation with an interview expenditure of cost and time. Such research is characterized by its flexibility and in genuity. DISCRIPTIVE RESEARCH: - The objective of such a study is to answer the “who, what, when, where and how.” Of the subject under investigation, descriptive studies are well structured and tend to be rigid And its approach can not be changed every now and then. It is therefore, necessary that the researcher give sufficient thought to farming research question and deciding the types of data to be collected and procedure to be used for this purpose. CAUSAL RESEARCH: - A causal research investigates is cause and effect relationship between two or more variables. The causal research design is based on reason along well-tested line. We use inductive logic for confirming hypothesis with the help of future evidence. TYPE OF RESEARCH CARRIED OUT: In my project work I used exploratory research as per the research objective and time & cost factor.

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SAMPLING

After the researcher has formulated the problem and developed the research design including the questionnaire, he has to decide whether he has to collect the data from all people comprising the population. If the data is to be collected only from some members of the population, it is known as Sample Survey. We followed this survey and the size of the sample was 100. TYPES OF SAMPLING DESIGN The sampling designs are mainly of two types’ non-probability sample designs and probability sample design. RANDOM SAMPLING: a random sample gives every unit of population a known and non probability of being selected. Since random sampling implies equal probability to every unit in the population; it is necessary that the selection of the sample must be free from human judgment. SYSTEMATIC SAMPLING: In this method first a sampling fraction is calculated as N/n where N is total no. of units in the population and “n” is the size of sample. STRATIFIED RANDOM SAMPLING: A stratified random sampling is divided into mutually exclusive and mutually exhaustive strata or sub group and then a simple random sample is selected with in each of the strata or sub group. CLUSTER SAMPLING: cluster sampling implies that instead of selecting individual units from the population entire groups or clusters are selected random. QUOTA SAMPLING: -

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quota sampling involves the fixation of certain quotas, which are to be fulfilled by the interviewers, since quota sampling is not based on random selection it is not possible to calculate estimates of standard errors for the sample result. JUDGEMENTAL SAMPLING: The main characteristic of Judgment sampling is that units or elements in the population are purposively selected. It is because of this that judgment samples are also called as Purposive samples. It may be noted that when a small sample of few units is to be selected, a judgment sample may be more suitable as the errors of judgment are likely to be less than the random errors of a probability sample. This is the reason for selecting this method.

SAMPLE DESIGN Area of Sample : The areas covered up in this survey was Saket and Rajouri Garden. Selection of units under study : Sampling Units from Saket and Rajouri Garden were consumers of broadband connection. Source list (Sampling Frame) : CUSTOMERS: 100 Sample size: 100 Sampling Procedure: The data was collected by Judgmental sampling which is considered to be a non probability sampling.

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SCOPE OF STUDY

The research is a systematic investigation of any idea. The research is widely used in the business world for analyzing & evaluation business policy as well as the analyzing & evaluates competitor’s activity and policy. The research is itself valuable. The research gives fact and figure, which is useful in planning. As it is obvious any business activity is based on to the 4 P’s of marketing viz. price, product, promotion, place all these P’s have it’s own importance and all are inter-related with each other but most importantly all the factor are independent in the nature. In any organization all factors are carefully formulated to gain a success in the market. It is very important for business analyst to evaluate the modern trend and market position. In the other hand it is vital for business operation to know the need and desire of customer. All the necessary information is received from market by research work.

The study reveals many facts that have come up during my project and these facts can either be used as opportunities in exploring and expanding the business as well as can be used as safeguards against threats by the competitions. To prepare an effective marketing strategy a company must study it’s competitors as well as its actual and potential customer. A company should maintain good relation with their customers keeping in view competitive Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 17

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orientation in today’s global market. Company should neither put much emphasis on competitors positioning nor should it solely concentrate on its own products and policy. Rather it should find midway between these two extremes and adopt flexible policy. Companies should manage a good balance between consumer & competitors monitoring. The information will prove beneficial in taking proactive action for combating competition. Also aims at finding out the market share in term of their sale, consumer loyalty, and best sales promotion technique to increase the market share of the company. This information is good guide to management as it brings out the strength of the competition their product penetration, product demand their promotion policy, which gives an overview where the company needs to improve. This study basically aimed at providing the management desired vital information about the market situation. It can be useful to understand the consumer perception which is very vital for product mix as well as promotion mix. Today, for any organization or firm to survive in this competitive world depends on its ability to be dynamic and be different from the competition to be unique in the industry. Customer Satisfaction helps every organization to keep the existing customer and to build new customer. This research is aimed at profiling the standard customer with an aim to increase the network and improve company-customer relations. The information gathered through this research can be used by the company to improve its services and became more customers friendly. This can increase the goodwill of the company and its overall performance.

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Thus this study is aimed to provide the management with some knowledge about its status in market both in terms of sales and customer awareness. The research also aims to provide some ideas to improve the company’s present condition.

2.5 LIMITATION OF THE STUDY Although all efforts were taken to make the result of survey as accurate as possible the survey had the following constraints:  Customers were not willing to give answers of the questions due to their

busy schedules.  Few customers were not cooperating during the project survey. It was quite difficult to collect necessary data.  Due to the time constraint and other imperative workload during the training period it could not be made possible to explore more areas of concern pertaining to project study.  The survey was carried out in some parts of Saket and Rajouri Garden

hence it doesn’t reflect the entire market scenario DEL and DSL.  This study is based on the prevailing customer’s satisfaction. But the

customer’s satisfaction may change according to time, fashion, technology, development, etc.  As per the population of the study is huge, the researcher has taken only

100 sample respondents .  Method of data collection was through personal interview and therefore bias becomes a major limitation. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 19

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 Owing to their pre occupation some customers were unable to answer the complete questionnaire.  Majority of the customer were too aggressive in nature.

CHAPTER-3

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3.0 CRITICAL REVIEW OF LITERATURE Consumer Behaviour: a Literature Review In order to develop a framework for the study consumer behaviour it is helpful to begin by considering the evolution of the field of consumer research and the different paradigms of thought that have influenced the discipline. As described here, a set of dimensions can be identified in the literature, which can be used to characterize and differentiate the various perspectives on consumer research. It is argued that consumer behaviour itself emerged as a distinct field of study during the 1960s; and is characterized by two broad paradigms, the positivist and the non-positivist. The positivist paradigm encompasses the economic, behavioural, cognitive, motivational/trait/attitudinal, and situational perspectives; these perspectives are referred to as the traditional perspectives as they pre-date the development of the non-positivist paradigm. The positivist paradigm, which is still the dominant paradigm, emphasizes the supremacy of human reason and that there is a single, objective truth that can be discovered by science. This paradigm regards the world as a rational and ordered place with a clearly defined past, present, and future. The assumption of rationalism is therefore fundamental to the traditional perspective. The opposing, non-positivist paradigm, envelops the interpretive and postmodern perspectives, which have emerged more recently during the period post-1980 to date. The proponents of this emerging perspective argue that positivism overemphasizes the rational view and the ideology of a homogenous social culture and thereby denies the complex social and cultural world in which consumers live. This paradigm instead stresses, the importance of symbolic and subjective experience and the idea that consumers construct meanings based on unique and shared cultural experiences, and thus there can be no single unified world view.

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Unsurprisingly, the two paradigms differ in their views on the benefits derived from consumption and the objectives that underscore consumer research. The traditional, positivist perspective takes a very utilitarian approach to the benefits from consumption. While the non-positivist perspectives place much greater emphasis on the symbolic dimensions of choice. The objective of non-positivist research endeavour is to achieve a better understanding of consumer behaviour with no specific intent to influence consumer processes. Conversely, outcomes of positivist research are directed toward advancing the goals of marketing practice

Consumer behaviour theories The term consumer behaviour may be defined as the behaviour that consumer displays in searching for purchasing, using, evaluating, producing, services and ideas which they expect will satisfy their needs. In other words, “It is a study of physiological, social, physical, behaviours of all potential customer as they become aware of evaluation, purchase and consumption and tell other about products and services”.

Consumer perception and consumer behavior According to Rice (1993), perception is the initiator of behaviour. It can also be seen as a process of information extraction. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture (Kotler, 2000). Different people tend to perceive quite differently even when they are exposed to the same reality. A set of factors, e.g. individual responses, determine an individual’s perception process and lead to individual differences. The most important is that people’s perceptions are often more important than the reality in marketing (Kotler, 2000). The study of customer behaviour provides a sound basis for identifying and understanding the factors that influence consumers purchase on line. Schiffman and Kanuk (2000) state that the behaviour that consumers display in searching, purchasing, and evaluating products/services is those that they expect to fulfil their needs. Although perception and behaviour are typically treated as two completely separate phenomena, i.e. the input and output respectively, it has been suggested that perception and behaviour are in fact two sides of the same phenomenon and are closely related to each other (Rice, 1993). In order to Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 22

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understand what customer perceive and how they act to affect their perceptions, study of perception and behaviour should be treated as one integral part. Consumer decision process At present, the consumer decision process model has been well accepted. This model of purchase as decision process is explained in more detail by Thorelli et al. (1975). Thorelli’s decision model illustrates the type and shows there are a series of semi-discrete steps which take place over time for the buyers and purchasers. Predispositions (Before Purchase) According to Thorelli et al (1975), the prospective buyer possesses a certain stock of cognitive content, including his own personality or self-concept, attitudes and opinions both in general and on specific products, and stored information and past experience. This stock has been formed as a result of his interaction with his environment over time, and it will help determine the environment in which he places himself in the future as well as influence his perceptions of that environment. Product Need: As a result of either cognitive activity or some environmental stimulus, the buyer recognizes a need which is capable of being satisfied by a product or service. In other words, the need is often triggered by internal or external stimuli. Some authors also take this need recognition stage as the entry point. Chaston (2001) argues that the potential consumer will not implement any of the other steps in the buying process until need recognition has happened. External Search: Thorelli et al (1975) describe that this stage represents all search of the external environment for alternative solutions as well as for information helpful in evaluating these alternatives. The search for information occurs on an internal and external basis (Gilbert, 1999). The internal search for information from previous experience might be relevant to the present purchase situation. The extent and nature of external search for information likely in any given purchase has been the subject of a great deal of research. When searching for information in the external environment (e.g., friends and family), consumers focus on those relevant attributes that are available and are diagnostic (Dick et al., 1990). Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 23

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Evaluation of Alternatives: This stage consists of the physical and cognitive activities involved in comparing alternatives on the basis of information gathered from external search above. According to Kotler (2000), the consumer arrives at attitudes toward the various brands through an attribute evaluation procedure and most buyers consider several attributes in their purchase decision. These attributes used by consumers for evaluation are also called choice criteria. Jobber (2001) has made a good summary of these choice criteria. In fact, consumers attempt to optimize the trade-off between product benefits, product costs, the desired personal utilities and other variables. Purchase Activity: Purchase activity involves the actual final decision and physical activities involved in making (or not making) the purchase. This stage includes the actual transaction. However, as suggested by Kotler (2000), perceived risks of a consumer can heavily influence his decision to modify, postpone, or avoid a purchase decision. Therefore it is necessary for marketers to understand factors that might provoke perceived risk in consumers and work out solutions to reduce that. Post Purchase Behaviour: This step is concerned primarily with the buyer’s use of the product purchased. After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction which will influence a consumers’ subsequent behaviour. Dissatisfied consumers may abandon or return the product, they may even complain to the other group (Kotler, 2000). It is clear that satisfactions and dissatisfactions created by product performance will be important determinants of attitudes and information stored as inputs to future purchase decisions. Predispositions (After Purchase and Use): This stage suggests that following the purchase process, the buyer (or nonbuyer) is left with cognitive content which may be quite different from that which was present at the beginning of the process. Buyers may change their attitudes, information and experience due to reasons of time and events. All of these may serve to change substantially the nature of the decision process for future purchases of the same type. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 24

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4.1

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INDUSTRY PROFILE

A.The Indian Telecom Industry Introduction The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. India has surpassed US to become the second largest wireless network in the world with a subscriber base of over 300 million in April, according to the Telecom Regulatory Authority of India (TRAI). The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007. According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 26

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accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.

B. BRIEF HISTORY Evolution of the industry-Important Milestones

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AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA YEAR 1851

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First operational land lines were laid by the government near Calcutta (seat of British power)

1881

Telephone service introduced in India

1883

Merger with the postal system

1923

Formation of Indian Radio Telegraph Company (IRT)

1932

Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)

1947

Nationalization of all foreign telecommunication companies to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications

1985

Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system)

1986

Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

1997

Telecom Regulatory Authority of India created

1999

Cellular Services are launched in India. New National Telecom Policy is adopted. DoT becomes a corporation, BSNL

2000

C. MAJOR PLAYERS: Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 28

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Internet

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Fixed line telephony

Mobile Telephony

BSNL and MTNL account for 90% revenue for basic services.

25 private companies There is no restriction providing cellular on the number of services in 19 internet companies telecom circles and 4 and more than 185 metro cities, companies are covering 1500 towns operational. across the country.

Growth in the telecom equipment market resulted in increasing demand for telecom services.

Private sector available in 18 circles and collectively account for 10% of revenue.

Presently, there are five private service operators in each area, and an state operator

Key players like BSNL, BHARTI, RELIENCE, TATA, BPL and HUTCHISON will drive equipment market growth.

Growing demand of corporate for applications such as electronic commerce, Internet leased lines, ISDN, VPN etc is driving the growth of the internet services market.

Telecom equipments

KEY INDIAN COMPANIES: BSNL: World’s 7th largest telecommunications company providing comprehensive range of telecom services in india. MTNL: State owned operator covering the cities. Provide both mobile and fixed services. BHARTI ARTEL: Integrated operator with presence in all segments. Leads the mobile segment in country. TATA TELESERVICES: Integrated operator ( with VSNL) with presence in all segments. Provide CDMA services in 20 circles. RELIANCE COMMUNICATIONS: Largest player in India in the CDMA segments. Now acquire a GSM network.

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4.2 COMPANY PROFILE Public, BSE: 532454

Type Founded

1985 by Sunil Mittal New Delhi, India

Headquarters Key people Industry Products

Sunil Mittal (Chairman and CEO) Telecommunication Mobile and Fixed-Line Telecommunication operator $6 Billion

Revenue

Bharti Group Airtel Website

OUR VISION AND PROMISE By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses •

We at Airtel always think in fresh and innovative ways about the needs of our Customer 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

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A.INTRODUCTION Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 64,268,047 customers as on March 31, 2008, consisting of 61,984,721 GSM mobile and 2,283,326 Bharti Telemedia subscribers. Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. The Company Bharti Airtel is divided into 3 business units that are: MOBILE SERVICES BROADBAND AND TELEPHONE SERVICES (B&T) ENTERPRISE SERVICES

•

Business Divisions

The company Bharti Airtel Limited provides mobile services to its customers. The company provides fixed and mobile wireless services in around 23 telecom circles by using the GSM technology. Bharti Airtel Company has become the biggest mobile service provider in India on the basis of the number of customers. The company in the future plans to expand its network in order to establish its presence in more than 500,000 villages all across the country by 2010.

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Among the various services that the Bharti Airtel Limited Company provides to its customers, the services of broadband and telephone (B&T) are 1 of them. The company provides broadband Internet services of high speed for it has the best network in India. The company Bharti Airtel also provides telephone services in around 94 cities of the country and this helps the people to stay connected with one another. The company plans to expand its broadband and telephone services by providing IPTV services and DTH operations.

Further Bharti Airtel provides enterprise services to its customers. The services of enterprise provide telecom end-to-end solutions to customers who belong to the corporate sector and also long distance services to international and national carriers. The company Bharti Airtel has more than 35,016 kilometers of optic fiber, a submarine landing station, and is also a member of South East Asia- Middle East- Western Europe- 4. All this has helped the company to provide the best enterprise services to its customers. The company Bharti Airtel Limited plans to expand its enterprise services so that it can achieve the status of a global carrier within a period of 2- 3 years. Bharti Airtel is one of the topmost companies in the telecom sector in India and is under the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance company in the whole world by the Business Week magazine. In 2007 its market share of mobile subscribers in India is at 23.4%. Bharti Airtel has become a leading company in the telecom sector in India due to the fact that it has provided the best quality of services to its customers. And this has been possible for the company has a wide telecom network that is of the latest technology. The Company Bharti Airtel Limited in the future also should continue to upgrade its facilities for this will ensure that high grade of services are provided to its customers

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B. BRAND Airtel was born free, a force unleashed into the market with a relentless and unwavering determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the day” with an ambition to become the most globally admired telecom service. Airtel, after just ten years, has risen to the pinnacle of achievement. As India's leading telecommunications company Airtel brand has played the role as a major catalyst in India's reforms, contributing to its economic resurgence. Today we touch people’s lives with our Mobile services, Telemedia services, to connecting India's leading 1000+ corporates. We also connect Indians living in USA with our call home service.

C. STRATEGIC PARTENERSHIP The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company. The company’s mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

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D. 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.

Bharti Airtel - Organization Structure

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E. AWARDS AND RECOGNITIONS For the Year 2008 - 2009 Voted India’s most innovative company – in a survey conducted by The Wall Street Journal in 2008 Winner of the “Gallup Great Workplace Award”- Gallup Consulting, 2008 “2nd Most Trusted Service Brand” - Annual Economic Times-Brand Equity, Most Trusted Brands survey 2008 ‘Best Content Service’ Award for its Farmer Information Dissemination Platform for Bharti Airtel’s joint venture with IFFCO, IKSL (IFFCO Kisan Samachar) - World Communications Awards 2008 Best Project Management’ Award for its Gujarat e-GRAM project - World Communications Awards 2008 “Best Telecom Company” at the NDTV Profit Business Leadership Awards Best Carrier India for innovative products & services and efficient cost models and the Ovum Telco-Transformation award recognizing philosophy and execution of a successful outsourcing strategy at the Telecom Asia Awards 2008 Sunil Bharti Mittal was awarded the GSM Association Chairman’s Award 2008. The highest honour in global telecom sector, recognized his tremendous contribution to the development of India’s telecom sector Sunil Bharti Mittal adjudged the “Business Leader Transforming India, 2008 at the NDTV Profit Business Leadership Awards

F. Corporate Responsibility of Bharti Airtel Overview Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 35

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At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. It is an integral part of the way Bharti conducts its business. The essence of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’, which stem from its deepest held beliefs. These Values are: To be responsive to the needs of our customers To trust and respect our employees To continuously improve our services – innovatively and expeditiously To be transparent and sensitive in our dealings with all stakeholders We encourage our employees to take decisions and design business processes, keeping in mind the following: Ethics, fairness and being correct Meeting and going beyond compliances and legal requirements Showing respect and sensitivity towards stakeholders and communities, and Nurturing the environment We practice our CSR beliefs and commitments through a three-pronged approach: Engaging with stakeholders Ensuring stakeholder sensitive policies and practices Undertaking programs for our employees, community and environment Bharti Airtel sensitizes its employees towards CSR issues at various forums. We feel that it is important that each employee should understand the importance of environmental, social and economical aspects while taking business decisions. At Bharti, each employee is sensitized towards CSR issues and thus operations at the ground level are influenced. Such sensitization exercises have resulted in many socially and environmentally sensitive decisions on the ground. For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above.

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We believe that one of the most important drivers of growth and success for any organization is its people. At Bharti Airtel, our ‘Mantra’ for employee delight focuses on 5 Ps – People, Pride, Passion, Processes and Performance. Bharti Airtel has been recognized among the Best Employers in the Country for two successive years – being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration & acknowledgement of the robust, progressive, people as well as business aligned Human Resource practices, which the organization has developed and implemented remarkably in a very short span of time. Bharti Airtel follows an “open door policy” to approach the management, which helps resolve issues with mutual agreements. We encourage people to stand up against any unfair treatment for which we have the Office of the Ombudsman, where employees can raise any issues regarding business and workplace conduct. Bharti ensures transparency through the various communication policies, strategies and plans. . Regular Employee Communication Forums provides a platform for the employees to raise issues that require resolution. Our leaders strongly believe in facilitating and initiating activities that help employees manage their health and well-being. Our focus always remains to redefine leadership; we develop leaders who enable performance and inspire their people to unleash their potential. Our people orientation reflects in our vision of being “targeted by top talent”, and a key aspect of our business focus “building a best-in-class leadership team that nurtures talent at every level.” Employee friendly HR policies have been put in place, which amply reflect the organization’s concern for its people. Some typical examples of these policies and practices include a family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off, festival celebration with family, no official meetings on weekends, five day weeks, concierge services, call center engagement programs etc. These “care” policies and practices are applied across the organizational levels without any discrimination. From self-management workshops to aerobics sessions, yoga classes to provision of relaxation/meditation rooms, we ensure that every employee keeps a check on his/her fitness. Tie-ups with leading health service organizations Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 37

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enable our employees to undertake periodical health check-ups depending upon their age. This facility is also extended to employee family members at discounted rates. The company provides Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart from these specific engagements, we regularly organize health check up camps, eye check-up camps and stress management sessions. Some of our offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time constraints to remain fit. At many of our locations, we have hired psychologists who undertake personal counseling sessions for employees. Bharti Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation. “Even a sweeper in the corporate office must understand that, if he does not keep the office clean, the visiting shareholders could question the company’s ability to manage a business if they cannot manage their premises well”

H. Environment, Health and Safety Overview At Bharti we believe in the philosophy to refuse, reduce, reuse and recycle. The company has taken many initiatives in this regard, both within the offices for the benefit of our employees; and for outside world for the convenience of the people Few examples of the initiatives taken are mentioned below: (a) Most of the new Airtel buildings recycle waste water for sanitary and cooling of equipment purposes e.g. DG sets and AC systems. These buildings also have rain water harvesting systems for ground water replenishment where appropriate. (b) All Airtel offices have energy efficient light fittings and DG sets. We also ensure automation that enables energy savings in our buildings. Building Management System (BMS) – Intelligent Building concept is being followed in all the new Airtel building and campuses that are coming up. The BMS controls The Heating, Ventilation and Airconditioning (HVAC) system,, Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 38

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electricity load management, water management, parking management, security and safety systems to ensure an efficiently run building on optimal resources. (c) New buildings also incorporate the concept of and Energy Wheel which optimises energy efficiency in buildings. The AC system in our buildings adds a certain amount of fresh air periodically; In the process of adding this fresh air the cool air within the building vents out which may result into higher usage of energy to bring the cooling/ temperature back. The Energy Wheel concept ensures that as we bring the fresh air in it is pre-cooled thereby optimizing energy efficiency. (d) Air quality is checked periodically in all Bharti Airtel offices, and based on the results, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken. Water quality is also monitored in cooling towers for DG sets and Air Conditioner systems so that water born diseases such as legionella, etc. are avoided. (e) Use of air curtains on major office exits and double glazing also results in significant energy saving. (f)At the time of oil change in DG sets etc. the discarded oil for disposal is only sent to companies/ vendors approved by the Central Pollution Control Board (CPCB) for proper disposal as per CPCB approved processes. All Bharti Airtel offices follow the basic requirements specified by the Pollution Control Board) and ensure statutory compliance. (g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills are carried out in Bharti Airtel offices as a practice. All Airtel offices are provided with First Aid boxes and have identified people as First Aid specialists.. Bharti Airtel takes all its equipment from its key vendors, namely Nokia and Ericsson, who comply with all the required health and safety norms. Each contract with the supplier has a clause that they will comply with our code of conduct and each year suppliers have to give Bharti Airtel a certificate that they are compliant. There is an induction manual for sub-contractors to ensure that they follow all the safety and statutory compliances as well as Bharti Standard Operating Procedures.

Bharti Airtel is in the process of finalizing its Environment/ Health & Safety Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 39

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Policy (EHS) and will apply for ISO 14001 compliance within the next 3 years for each of its facilities.

For outside world Reduce Paper usage: Due to technological innovations such as e-bills and electronic recharging, Bharti Airtel customers are given a chance to help save the environment. This has led to the major achievement of paper savings of approximately 32,500 sq meter every month. This leads to the saving of 96 trees every year. In addition, as per calculations during 2005-06, and is continuously improving since then. We save 49,000 sq meter in plastic monthly as the reduced usage of paper coupons and bills. These results are all the more remarkable, as these paper savings were achieved despite our customer base increasing. Sharing Infrastructure: We promote and believe in sharing of infrastructure (passive) with other telecom operators. This ensures that we can continue to serve our customers while utilizing minimum resources. This is of great help in nation like ours where we have a huge burden on our natural resources. At present, we share around a quarter of our mobile cell sites across the country, with other service providers. We have extended our approach of sharing even for the rural areas, where it makes lesser business sense for operators to roll out. Our efforts have been well acknowledged by the regulator and the government, who have initiated efforts for shared rural roll out . Reducing Fuel Consumption due to travel: Bharti, having grown to be a large company on many counts, faces the key issue of operations coordination. While one would usually coordinate with others through face-to-face meetings, Bharti has institutionalized the habit of using videoconferencing and intranet facilities to interact. This significantly reduces the need for transport and thereby fuel consumption, it saves on time and generally creates a much more efficient working atmosphere. Bharti’s earnings calls, i.e. sharing the results with our stakeholders, also happen via audiobridge. This enables investors and analysts world-wide to link in to the call and raise queries. Bharti does not stop at providing these facilities for internal use though. By offering our services, we enable people across the country to follow Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 40

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the same path and cut down on transport. This is not only convenient; it also saves tremendous fossil fuel consumption. Green-Shelters: Another key initiative has been the deployment of environmental friendly green-shelters at around 7,000 sites. These green-shelters use high insulation material and Passive Cooling techniques like PCM, a thermal salt, for indoor Base Transceiver Stations (BTS). Due to its high freezing point, PCM provides cooling for 4 to 5 hours without any Air conditioning, thus negating any need of electrical power or diesel generator during that time. This not only saves cost but also minimizes pollution. These green-shelters also keep noise at a minimum. Bharti is the first company in India to initiate such a measure, and is well ahead of governmental regulations on the matter. Our Green shelter initiative has been appreciated by operators across the world and is being studied for mass deployment in many countries. Free-Cooling is another technique that we use to maintain temperature level during night hours by circulating cooler natural air from outside to inside the shelter by reworking air conditioner flows. This has reduced air conditioner consumption by almost 30%. Bharti Airtel is also working with its suppliers and experimenting with alternate sources of energy like solar, wind, bio-fuel/ hydrogen to further reduce environmental impact. We are very keen to look at the viability of these technologies once experiments are being found to be successful like in the case of Green Shelters. Advertisement Material: Bharti Airtel uses aqua-based ink for all its in-shop branding, in spite of its cost being three times the cost of ink which is normally used. The aqua-based ink is environment friendly and does not emit any fumes and hazard. Sometimes flex materials are used for hoardings, but since they are not disposable these hoardings are donated to poor people so that they can use it as roof-material on their huts.

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I.Community Initiatives Overview “We have an obligation to fulfill to society and the communities in which we operate, and help improve the quality of life for everyone, today and in the future.” Based on the basic guidelines and direction provided in the Code of Conduct, Bharti has undertaken many community programs. Bharti’s contribution to society is structured through two channels, namely, (a) Bharti’s Corporate Social Responsibility (CSR) Initiatives, including initiatives undertaken by way of employee mobilization as well as running environment related programs; and (b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda of Bharti Group of Companies

CSR Initiatives @ Bharti Airtel Bharti Airtel has a nation-wide presence that has grown at an exponential rate in the recent years. Each local office undertakes special programs for the local community, thereby reaching out to people. Many projects like material collection drive and blood donation camps are organized for the welfare of the underprivileged community. Bharti constantly searches for new, innovative ways of reducing the consumption of resources, with the aim of leaving a better and greener earth for future generations.

Response to disaster: Bharti Airtel’s response to Tsunami Disaster: Bharti Airtel undertook the following initiatives for immediate relief and rehabilitation to Tsunami victims: • Built a mobile network in Andaman & Nicobar islands in less than 3 months to aid rapid rehabilitation of the island • Donated Rs. 1 Crore to the Prime Minister’s Relief Fund, in addition to contributions from employees • Created 29 Airtel Crisis Communications centres in Tamil Nadu • Raised resources for Tsunami victims by initiatives such as a ‘Benefit Cricket Match’ Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 42

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Bharti Airtel’s response to Assam, Bihar and West Bengal floods : Bharti Airtel also partnered with an NGO to provide relief to the flood victims in the flood hit areas of Assam, Bihar and West Bengal. A ‘Material Collection Drive’ was undertaken across Bharti offices, for collection of material such as clothes, utensils, footwear, blankets, dry ration and monetary donations. 55 cartons of clothes and 65 kilos of ration were dispatched, in addition to monetary contributions.

Bharti Airtel during Mumbai Floods: Bharti Airtel employees climbed up the towers to restore the networks so that our customers could conveniently reach its employees.

Bharti Airtel’s response to Kashmir earthquake: Bharti Airtel’s ‘Rapid Response Team’ responded to the Kashmir earthquake by bringing more than 2000 food packets and water bottles to the affected area. Money, clothes, woolens and blankets were also collected from employees to distribute among earthquake victims.

Other

initiatives

of

Bharti

Airtel

Bharti Airtel employees have undertaken vary initiatives to reach out to the local community. Some of such initiatives are listed below : Airtel Ashiana for underprivileged children at the Mohali office of Airtel BIL north tied up with an NGO to distribute daily surplus food to needy children Airtel Experience Centre by Access MP… for the benefit of the benefit of visually impaired people as well as people from deprived section of society Mobile Services Jammu & Kashmir donated free medicines, stationery, clothes and other utility items at the ‘Missionaries of Charity Home for Destitute’ Mobile Services MP & CG supported the ‘Walkathon’ to create awareness about diabetes on ‘World Diabetes Day’, organized by the Indian medical Association Airtel Maharashtra & Goa team visited the Thalassemia Ward of Sassoon Hospital to interact with children as well as the families affected Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 43

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Ariel Kerala team visited an old age home and shared a day full of fun with the members of he home A tree plantation drive was carried out by Access-NCR, Access-North and Access-UP West Circles, where in free tree saplings were planted. Airtel Madhya Pradesh & Chhattisgarh planted trees on its fourth ‘Circle Inception Day’ In Tamil Nadu, Airtel has adopted a corporation park in Chennai city. Mobile Services Rajasthan supported the ‘Red Ribbon Caravan’ initiative of the Rajasthan State AIDS Control Society, to spread awareness about HIV/ AIDS. During the month-long campaign a caravan of five vans covered 32 districts of Rajasthan, to spread the awareness of HIV/ AIDS. Airtel Delhi organized a Blood Donation Camp in association with Indian Red Cross Society .

B)

Bharti

Foundation

Although CSR is executed at all levels in the organization, the Promoters of Bharti Enterprises established Bharti Foundation in 2000 with a vision, “To help underprivileged children and youth of our country realize their potential.” Bharti Foundation’s mission is to create and support programs that bring about sustainable changes through education, use of technology and information and best practice sharing. Bharti Foundation has established itself the goals of improving accessibility and quality of education at the school level for underprivileged children, and to provide education and training opportunities to youth.

J. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner, which will ensure sustainable, capital-efficient and long-term growth thereby maximising value for its shareholders, customers, employees and society at large. Company’s policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 44

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During the financial year 2003-04, your Company was assigned highest Governance and Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the company’s capability with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices.This rating was re-affirmed by CRISIL on April 20,2006. • • • • • • •

Board of Directors Audit Committee Human Resource (HR)/ Remuneration Committee ESOP Compensation Committee Investors Grievance Committee Memorandum of Association Article of Association

K. BOARD OF DIRECTORS: The board of directors of the Company has an optimum mix of executive and non-executive directors, which consists of two executive and twelve nonexecutive directors. The Chairman and Managing Director, Mr. Sunil Bharti Mittal is an Executive Director and the number of Independent Directors on the Board is 50% of the total board strength. The independence of a director is determined on the basis that such director does not have any material pecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of a Director. The board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company.

The composition of the Board is as under: Sunil Bhatia Mittal Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. Kumar Kurt Hellstrom Paul O'Sullivan Pulak Chandan Prasad Bashir Abdulla Currimjee Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 45

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Ajay Lal Arun Bharat Ram

L. PRODUCT PROFILE 1.

FIXED LINE SERVICES

A Direct Exchange line (DEL) is a dedicated fixed phone line running right up to your work space. Each phone line runs on state -of-the-art fiber optic backbone that delivers quality output and ensures reliability. KEY FEATURES • CALL WAITING • CALL FORWARDING • PARELLEL RINGING • 3 WAY CONFERENCE • VOICE MAIL SERVICES • ABBREVIATED DIALING

VALUE ADDED SERVICES • HELLO TUNES : CHOOSE A CORPORATE TUNE THAT YOU WANT YOUR CALLERS TO HEAR. • AIRTEL LIVE : ENJOY JOKES, ASTROLOGY, DATING, CRICKET SCORES, OR ELECTION RESULTS.

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BENEFITS: • SEAMLESS VOICE CONNECTIVITY AND GREAT QUALITY • QUICK INSTALLATION AND 24*7 CUSTOMER SUPPORT • CUSTOMIZED BUNDLED PLANS TO SUIT SPECIFIC BUSINESS NEEDS • FREE DIAL UP INTERNET ACCESS

CENTEREX -INTER OFFICE ABBREVIATED DIALING This service provides switching at the central office instead of the customer’s premises and works like an EPABX service. Airtel business Services owns and manages all the communication equipment and software necessary to implement the Centrex service, thus providing future proof and hassle free features to its subscribers. With Centrex facility, you can access other members of your group through short digit dialling thus connecting geographically dispersed offices. FEATURES • SHORT DIGIT DIALING • DIRECT INWARD DIALING • 3 WAY CONFERENCE • VOICE MAIL • CALL PICKUP Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 47

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• AUTO CALLBACK • PARELLEL RINGING BENEFITS

• LOW CAPITAL INVESTMENT AND NO NEED OF EPABX • HIGHLY RELIABLE CARRIER GRADE SERVICE • FUTURE – PROOF TECHNOLOGY • DIGITAL VOICE CLARITY • QUICK INSTALLATION AND 24*7 SUPPORT • DIFFERENT PLANS TO SUIT UNIQUE BUSINESS NEEDS

ISDN-BRI AND PRI Integrated services Digital Network (ISDN) is a circuit switched telephone network system designed to allow digital transmission of voice and data over ordinary telephone copper lines.

PRI (PRIMARY RATE INTERFACE) The ISDN PRI offers 30b channels and 2d channels where B operates at 64 Kbps. Thus a 2048 Kbps line is formed which is primarily used for:

• HIGH END VOICE COMMUNICATION • HIGH SPEED DATA TRANSFER Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 48

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• LEASED LINE BACKUP

BRI (BASIC RATE INTERFACE) The ISDN BRI offers 2B channels and one D channel, where B operates at 64 Kbps. Thus a 128 Kbps line is formed which is primarily used for:

• SECURED VOICE COMMUNICATION • DATA TRANSFER • VIDEO CONFERENCING • HIGH SPEED INTERNET ACCESS

BENEFITS OF ISDN PRI • DIRECT LINE FOR EVERY YEAR • 30 SIMULTANEOUSLY VOICE CHANNELS • FAST CALL SETUP • PRI ALSO DELEIVERS CALLER ID INFORMATION INSTANTANEOUSLY, MAKING IT IDEAL FOR COMPUTER TELEPHONY INTEGRATION (CTI) AND CALL CENTER APPLICATIONS • HIGH UPTIME • DIGITAL QUALITY VOICE CALL EXPERIENCE Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 49

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• INTER OFFICE NETWORKING

2.

BROADBAND DSL

Digital subscriber line (DSL) technology transforms an ordinary telephone line into a broadband connections link. DSL provides blazing fast, secure internet access and can be delivered right though a regular telephone line, data rates can vary from 128 Kb to 8 Mb/second, depending on the type and cost of the service. With DSL internet service you can download graphics, heavy files, large documents, software, photos, email attachments and more, instantly. It’s perfect for real time interactive multimedia, broadcast quality video, distance learning and video-on-demand.

BENEFITS • ALWAYS ON SERVICE • UP TO 50 TIMES FASTER THAN DIAL UP MODEM • MULTIPLE COMPUTERS CAN BE CONNECTED ON A SINGLE DSL LINE • DEDICATED CONNECTION AND SPEED •

ALLOWS USE OF PHONE/INTERNET SIMULTANEOUSLY

INTERNET LEASED PORT Today, organisations need to efficiently transfer information over the internet in order to conduct business around the globe. As a class-A ISP, we have built a Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 50

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high speed N*STM-1 optic fibre backbone for ISP operations. Online performance reports, 24/7*365 support and proactive monitoring of the circuits enable you to enjoy the best internet connectivity.

Airtel business Services Offers bandwidth in the following speeds: • N*64 Kbps • N*E1 • N*DS3 • N*STM-1

LAST MILE OPTIONS • TERRESTIAL LEASED LINE • RADIO LINK • FIBER TO THE BUILDING • VSAT

BENEFITS • PRESENCE LEASED LINE • MULTIPLE ROUTES FOR US CONNECTIVITY • HIGH NETWORK AVAAILABILITY

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POINT TO POINT CONNECTIVITY SERVICE Leased line services offer secure private line connections committed to business data transfer needs. They are offered on our dedicated 30,000 km fiber optic backbone, which has a built- in redundancy due to its ring architecture. The network is based on SDH and DWDM technologies. Leased lines as clear channel services can run away voice, video or data applications. Leased lines offerings include: • N*-64 Kbps multiples of 64 Kbps • N*E1- multiples of 2 Mbps • N*DS3- multiples of 45 Mbps • N*STM-1 – multiples of 155 mbps • Ethernet over SDH – Customers are offered the option to run end to end Ethernet over dedicated point to point circuits.

BENEFITS • Centralized Network operation centre 24/7*365 monitoring • Re-routing within 55 muse • Supports triple play voice, video and data

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VIDEO SURVEILLANCE Video Surveillance is an ideal service for businesses that have wide spread offices/stores/god owns and thus need security and surveillance. This service allows you to capture and transmit video images in digital form. FEATURES • Simultaneous monitoring of multiple sites • View images on internet browser • Programmable digital video recording • Simultaneous multiple recording • Motion detection based technology • Can be used with Ethernet, independent laptop/PC • Wireless • User defined security levels and settings • Frame rates adjustable based on bandwidth

BENEFITS: • Real-time, offsite/remote monitoring and control • Easy deployment • Easy storage and retrieval of images • Flexibity in configuring solutions •

Enabling integration with existing IT systems.

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SATELLITE SERVICES Airtel business services satellite service help you connect remote locations at minimal cost and provide a host of new applications and value ads like voice – over- IP, multimedia streaming, on demand services, scheduled video conference and distance education. It is offered over the Ku and extended c band. We have three hubs in Bangalore, Mumbai and New Delhi.

PAMA / DAMA: Extend your network to remote locations using our VSAT services, highly reliable communication can be offered with a central hub and at almost any number of geographically dispersed sites. BIT – High Speed access to the internet at remote locations VSAT infrastructure offers broadband access for internet and intranet applications.

RANGE OF APPLICATIONS • VOICE –OVER-IP (VOIP) • ON DEMAND SERVICES • MULTIMEDIA STREAMING • SCHEDULED VIDEO CONFERENCE

DATA MANAGED SERVICES- MPLS VPN Business Services Multi protocol Label switching (MPLS) services enable businesses to provide broadband applications that deliver a wide variety of advanced, value added services over a single infrastructure. We offer MPLS services over a highly redundant, three – tiered backbone, which is present in 60 major towns and cities across India. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 54

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MPLS Portfolio: • MPLS IP VPN Service – A reliable, secure networking option that offers cost effective connectivity over a shared network • Dial VPN – Uninterrupted communication, anywhere, anytime • Games on demand – customer has an option to request extra bandwidth online for shorter periods. • Multicast – multicast services for video streaming • L2VPN – layer 2 Ethernet and virtual leased lines over MPLS.

LAST MILE OPTIONS WITH MPLS

• Terrestrial leased line • FTTB : fibre to the building • Point to multipoint broadband wireless access • Metro Ethernet services for end to end connectivity

BENEFITS •

“Connectionless” connectivity: If an Enterprise has multiple locations, all they need is bandwidth and a port to connect multiple sites. Each time a site is added, the customer need not have to provision multiple circuits to connect to other sites.

• High security: MPLS has the advantage of label switching to guarantee security in the network. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 55

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• Traffic prioritisation: to ensure proper handling of traffic like voice, video, SAP, etc., customers can choose from different class of services (cos) to ensure the proper handling of their traffic and get the corresponding SLAs.

3. AIRTEL DIGITAL TV INTERACTIVE Bharti Airtel launches Triple Play with Airtel digital TV interactive – Telephone, Broadband and now TV on a single line LAUNCHED ON 19th JANUARY 2009 With the launch of Airtel digital TV interactive, we begin offering the Triple Play Advantage offer to our customers - leading in with voice, then broadband and now television and video on demand. We offer our customers a Single Knock on The Door experience - a uniform Airtel Quality of Experience with a single Customer Service interface and a single unified bill for voice, broadband and TV and video entertainment.” Airtel’s state-of-the-art IPTV Headend, with best-in-class MPEG4-10 compression technology, will allow it to offer more content and better quality images as well as services like live broadcast television, network based timeshifted TV, real video-on-demand and a host of other interactive services. Airtel will deliver its IPTV service to customers through a fibre backbone of Carrier Ethernet Network with last mile delivery on copper using ADSL2+ technology. This latest technology enables high-speed broadband connectivity which in turn delivers superior digital video and audio quality. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 56

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Customers can gain access to the future of TV entertainment on Airtel digital TV interactive by choosing from 2 entry packs– •

A. Magic@ Home Pack - our Triple Play Plan - at Rs. 999 per month which gives 135 channels including 256 kbps broadband speed with unlimited download and a landline connection. B. Combo Pack - our IPTV and Broadband Plan - at Rs. 599 per month which gives 117 channels including 256 kbps broadband speed with download limit of 2.5 GB

• The service will be backed by 24x7 customer care.

Benefits for end users Highly Interactive and Personalized Services

Powerful Electronic Programming Guide (EPG): Using the EPG, customers can seamlessly navigate and discover new content that is DVD quality and delivered at the convenience of the user.

Video on Demand (VOD): It provides an extensive channel lineup and along with VOD offers a wide range of videos according to the viewer’s convenience and choice. Choose from our ever growing gallery of over 200 movie titles and watch Hindi or English blockbusters, in the comfort of your home. Just select a movie and start watching it when you want it. What's more, in case you are interrupted while watching, you can pause, rewind and relive the lost moment again with digital TV interactive from Airtel. Once you subscribe for a movie pack, it will be available to you for 30 days to watch any and as many times as you want. We also offer promotion packs to make your viewing experience special on occasion like a Diwali or a New Year pack etc. For those of you who do not want to be restricted by a particular pack, there are movies available to you for Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 57

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24 hrs with our Pay-Per-View feature. It's like walking into a theatre and buying a ticket for the movie of your choice. Plus, you get the best seats.

Interactive applications Interactive applications make the TV a powerful device for a host of new services customized to the tastes of the individual user. You can check your horoscope for today, the week ahead, and the month ahead. Feeling hungry? Order a pizza of your choice from the menu on your TV screen and add additional toppings of your choice. If that’s not enough, get additional discount offers from pizza brands of your choice. Planning a big weekend and want to watch the latest release on PVR? Simply switch on and book your tickets in seconds through your TV at any time of day or night. You can pick up your tickets from the cinema hall at the show time.

Games Airtel digital TV interactive gives you games to play while you wait for your favorite program to start. You can choose from a nice collection of games to exercise your mind while passing time. You can watch the channel being played in a small screen on your games page so you can switch back to the channel the moment your favorite program starts. You can choose from Tic-Tac-Toe, Sudoku, Discover the Word, Connect Four or Concentration and start playing. The games will be refreshed and new games will be added frequently.

More Control Time-shifted TV: Digital TV interactive provides time-shifted TV using a network based Personal Video Recorder (PVR) allows the viewer to watch the content according to their convenience. Over 10000 programs available every week to view at user convenience.

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Time Shift TV is a unique feature provided by Airtel digital TV interactive where we record and keep programes for you to view to the same at a time more convenient to you digital TV interactive gives you the power to demand from your TV what you want to see, when you want to see. All this is possible through this unique feature provided by your Airtel digital TV interactive called TSTV. Airtel digital TV interactive gives you the power to view any program you may have missed over the past 7 days.

Even Control Broadcast TV: Viewers can pause and rewind broadcast TV allowing the viewer to finally take control of what he or she watches on TV.( Presently available on selected channels only)

Parental Control: With an easy to use interface, parents can also lock VOD content to prevent younger children from accessing inappropriate content.

Electronic Bill on Demand: Electronic Bill on Demand to track usage and consumption of entertainment.

Benefits for content providers Highly sophisticated and secure Digital Rights Management to prevent Piracy: digital TV interactive service ensures such content / channel pilferage is a thing of the past. Through the use advanced Digital Rights Management system (DRM).

Finger printing to track illegal copy and misuse of content: The system supports ‘Finger Printing’ that further helps track illegal copier of contents who copy for economic gains.

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The Airtel installation team will install and connect the equipment for you. Here's an illustration of the networking process of how STB gets connected to TV incase you have any doubts

M. Advantages of broadband Why wait to connect With Airtel Broadband, the internet is always ON, always available! No more waiting for dial-up to connect. You are ready to use the internet as soon as you switch on your computer.

Power Surfing With speed of up to 2Mbps, feel the excitement of doing more on Internet. Shop, download MP3, exchange heavy files and chat at an enviable speed, all thanks to an extensive Broadband Services infrastructure. No more disconnections in the middle of download.

Surf while you talk! No more missed calls or blocked telephone lines while using the internet. Airtel Broadband Services connection does not block existing telephone lines and allows one family member to use the phone while another member surfs the net. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 60

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No more missed calls and no more fights!

Robust installation Our world class infrastructure & end-to-end digital network of underground copper cable lines ensure an extremely robust connection that eliminates the risk of damage. Superior server technology and a dedicated port provide total security to data storage and information exchange through the Internet.

24x7 customer support We are just an email or a phone call away. Round-the-clock, 365 days a year! To help us serve you even better, we look forward to your feedback. Your suggestions for improvement, brickbats and even an occasional bouquet, will only help us realize our promise!

High speed internet access Surf, play, download, stream & make friends with speeds upto 16 mbps(subject to technical feasibility). Impatience is the new life live it with Airtel Broadband.

Find your perfect match Airtel broadband offers various plans to choose from, which will suite your needs. Pick the right plan and live a high speed lnternet.

Exciting Value added services Whether it’s On Demand Speed, Antivirus software, Music, Games, opportunities with our value added services are limitless and excitement is never ending.

Go Wifi Did you know that wi-fi helps you connect your computer/laptop to internet without ‘wires’. You do not have to park a place in your home to connect with the world. You can take your laptop around to any place in your homebedroom, balcony or even kitchen and keep that music playing or chat going on without getting disconnected. Enjoy freedom from wires with Airtel broadband.

N. Technology used by Bharti airtel

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Broadband

is

powered

by

DSL

2008 technology

DSL provides blazing-fast, secure Internet access and can be delivered to both homes and to businesses. Delivered right through a regular telephone line, data rates can vary from 128Kb to 8Mb per second depending on the type and cost of the service. Instant Access Digital Subscriber Line (DSL) technology provides instant Internet and network access at speeds up to 50 times faster than a 28.8Kbps modem on a standard analogue phone line. There are no dial-up delays, no busy signals. What used to take minutes or hours to download, will now take just seconds or minutes. Experience Multimedia With DSL Internet Service you can download graphics-heavy files, large documents, software, photos, email attachments, and more, instantly. It's perfect for real-time interactive multimedia, broadcast quality video, distance learning, and video-on-demand. And because DSL Internet Service sends data and voice over the same line, you can talk on the phone while you are online. Never Wait! It's also a service that you don't have to dial into. Just turn on your PC, open a browser, and you're ready to surf. (No more hearing those annoying beeps and tones, then waiting to be connected. You're always connected whenever you wish to!). Beyond Internet access, DSL also has the ability to carry additional phone lines and entertainment services using the same pair of wires.

O. WHAT DOES AIRTEL OFFER? (Broadband & internet) 1.COVERAGE It covers 94 cities in India.

2. Airtel P C secure: Now surf the Internet, with peace of mind. Airtel has tied up with Secure™, one of the best in PC security, to provide you and your family with our great value online security package. Airtel PC Secure offers advanced protection for your PC, and the private information on it, from viruses, spyware, hackers and other threats. It detects and removes them as they try to enter your computer, so you can safely read email, chat with instant messaging and download files. 3.The Airtel Net PC Advantage Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 62

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LCD Monitor + Key Board + Mouse Latest Licensed software from Microsoft 100% data security Enjoy 10GB of data storage 

Cloud Computing Technology

3.Entertainment on Airtel: Have fun with Airtel broadband! Imagine, downloading the games for free and downloading your favourite tunes at unbelievably low prices. Choose your style. Now even for your homepage. Just log-in with your Airtel Broadband ID and unleash great music at great prices! Just log-in with your Airtel Broadband ID and unleash great music at great prices!Just log-in with your Airtel Broadband ID and unleash great music at great prices!

4.Speed on demand: Now Do more with speed on demand Watch videos without buffering Stream music seamlessly Upload pictures instantly Load heavy websites in seconds Play online games without breaks Key benefits of Speed on Demand • Upgrade to higher bandwidth instantly • No need to change your tariff plan • Pay only as much as you use

5.One Airtel

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Free Recharge FREE recharge of Rs. 100 every month on your Airtel pre-paid connection. Free Call value FREE calls worth Rs. 100 on Airtel fixed-line. Surf Surf, play, download and stream at a speed of 2 mbps with upto 4 GB of free data transfer every month. Get all this for only Rs. 749 per month

6. DIGITAL TV interactive Change the way you watch television with the most advanced technology in the world, digital TV interactive from Airtel. Now demand what you want to watch, when you want to watch it. digital TV interactive is less prone to rain or other atmospheric interferences and delivers a far superior TV viewing experience than your normal cable. With digital quality audio and video, a wide range of TV programming, video on demand services and a host of interactive features, digital TV interactive makes your TV viewing experience simply amazing. What’s more, it is a single telephone line that enables you to use the telephone, internet and digital TV interactive together.

7. Services: Airtel brings you a host of exciting features ranging from facilities like online tests, in touch and Video Surveillance Solutions to trouble shooting devices like, Net Expert and Web Jockey.

: Control your business, 24x7. Observe your office, warehouse, shop and staff from your PC, from anywhere and all the time.

: Create and share your precious moments with your loved ones with In Touch. It’s a great way to reach out to your loved ones who are far away.

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: Introducing NetXpert, India’s first ever automated Broadband care technology which provides immediate solutions for Internet connectivity related problems : Airtel Broadband Services and TCY Online offer you online competitive tests for GRE, GMAT, SAT and MBA, from the comfort of your home. : Wi-Fi is a wireless technology brand by the Wi-Fi Alliance that gives you a host of fantastic advantages ranging from reliability to security.

8. Reach Airtel: Our aim is to help you as quickly and as efficiently as possible at first point of contact. In this section you’ll find an opportunity to email us directly, useful telephone numbers, quick links to store locations, payment centres and much more. a.Customer support As an Airtel customer you have the convenience to access our 24-hr customer service number from any part of India, from your Airtel phone. b. Cheque drop boxes and bill payment Choose from a host of convenient payment options only with Airtel. Walk into any Airtel relationship centre and make your payment by cash or credit card. Drop a cheque at any of our cheque drop boxes or simply log on to the website and pay instantly through your credit card. C. Airtel Relationship Centres Need to get yourself a new Airtel connection, subscribe to any of our value added services and get more information on them, pay your bill or get a new handset? Visit the nearest Airtel Relationship Centre.

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P. AIRTEL'S MARKETING ORIENTATION Since this is a high-involvement expensive product, the service provider has to fully take care of the customers. a)

They take personal responsibility to "get" the answer for any problem faced by the customer

b)

They anticipate customers' problems and take pro-active steps to prevent them

c)

They give answers to the questions & requests, quickly & efficiently.

d)

They have a positive tone & manner while interacting with customers.

e)

They end the interaction on a positive or a humorous note-making the last 30 seconds count.

Airtel realizes that attracting people 'is easy but converting them into loyal customers is hard, hence emphasis is on maintaining a 'Smiling and a Friendly Atmosphere' to please and retain the customer.

Q. PRODUCT LIFE CYCLE The pattern of telephone subscriber growth observed elsewhere in the world reveals that the growth in the market is initially slow followed by a sharp acceleration, but so far that has not happened in India. As far as the Product Life Cycle is concerned Indians are at the beginning of the maturity stage. Introduction

Growth

Maturity

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MARKETING OBJECTIVES Create

product Maximize market share

Maximize profits whole

awareness and trial

defending market share

Strategies Product

Offer

a

basic Offer value added Increase in number

product/ service.

services

of

value

added

services. Price

Charge cost- plus

Price to penetrate Price to match or market

Distribution

Build

best competitors

selective Build

distribution

Intensive Build

distribution.

more

intensive distribution.

Advertising

Build

product Build

awareness

among and interest in the differences

early adopters. Sales Promotion

Use

heavy

awareness Stress

mass market

people to subscribe.

maintain encourage

relationships

and

benefits.

sales Increase to build Increase

promotion to entice and

brand

to brand-

with switching.

customers.

S.W.O.T ANALYSIS OF BHARTI AIRTEL

STRENGTH

WEAKNESS

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AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA  Very focused on telecom.  Leadership in fast growing cellular segment.  The only Indian operator, other than VSNL, that has an international The fast-expanding IPLC market. Latest technology and low cost advantage. Huge market. Low Broadband Penetration, Rural Telephoney OPPORTUNITIES

2008

Price Competition from BSNL and MTNL Untapped Rural market

Competition from other cellular and mobile operaters. Saturation point in Basic telephony service New entry in digital tv.

THREATS

STRENGTH:-

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VERY FOCUSED ON TELECOM Bharti Airtel is largely focused on the telecom, around

93% of the total revenue comes from telecom(Total

telecom revenue Rs 3,326)

•

LEADERSHIP IN FAST GROWING CELLULAR SEGMENT

Airtel is holding leadership position in cellular market. Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 64,268,047 customers as on March 31, 2008, consisting of 61,984,721 GSM mobile and 2,283,326 Bharti Telemedia subscribers. •

THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVING INTERNATIONAL SUBMARINE CABLES.

Airtel, the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides the incumbent carrier, to connect to the outside world. IPTV-Bharti Airtel launches Triple Play with Airtel digital TV interactive – Telephone, Broadband and now TV on a single line SWOT ANALYSIS DURING TRAINNING: Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 69

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Airtel has a brand image: Airtel as a brand is the synonym of success. It is the largest private limited organization of India

•

Well equipped software’s, to support customer satisfaction.

•

It has a talented manpower.

•

It provides good services.

•

It has a pool of dedicated and hardworking workforce.

• Experienced market player. •

INVESTOR’s FAITH: Investor’s faith in Airtel that causes huge monetary support.

•

STRONG ADMINISTRATION: Under the leadership of Bharti Cellular Ltd Airtel proved themselves as an well-organized & administrative company.

• Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.. •

The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

WEAKNESS:Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 70

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA •

Price Competition from BSNL and MTNL.

2008

Airtel is tough

competition from the operators like BSNL nd MTNL as these two operators are offering services at a low rate. •

Untapped Rural market.

Although Airtel have strong Presence

throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector. – SWOT ANALYSIS DURING TRAINNING: •

Company dose not provide credit to customers.

•

Improper communication with customers.

•

No proper feedback from customers.

•

Promotion is not up to the mark in every area.

•

Lack of sales executive in some areas in Delhi

•

Lack of co-ordination between departments.

• An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. •

Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.

OPPORTUNITY:Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 71

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THE FAST EXTENDING IPLC MARKET An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersedthroughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Airtel Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively.

•

LATEST TECHNOLOGY AND LOW COST ADVANTAGE The costs of introducing cellular services for Airtel are marginal in nature, as it needs only to augment its cellular switch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology. As a late entrant into the cellular market, it has dual advantage of latest technology with modern features, unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment.

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HUGE MARKET The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Airtel to enter /expand in this market. Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards Airtel for providing the service to them. With its wide and extensive presence even in the remotest areas, Airtel poised to gain a big market share in this segment when it expands cellular services into the rural areas.

SWOT ANALYSIS DURING TRAINNING: •

Sales can be increased by providing economical plans.

•

Increase in incentives of sales executive can enhance the sale of bharti airtel.

•

Focused approach towards small market can also increase the sale of airtel.

•

New plans can be provided to the customers to attract them to push the sale of airtel.

•

Feedback at regular intervals can be easily compete the competitors and helpful to retain the customers.

• The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 73

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• Low Broadband Penetration, Rural Telephoney

THREATS:COMPETITION FROM OTHER CELLULAR It is time for BSNL to improve/expand its cellular services. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions and announcement of attractive packages, trying to grab most of the ‘mind share’ of the ‘king’ - ‘the consumer’, whose benefits are increasing with passing of everyday. If BSNL is not innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain by the private cellular companies. The launch of WLL services by Reliance Infocomm has aggravated the situation. •

MARKET MATURITY IN BASIC TELEPHONY SEGMENT Although Airtel entered in the basic telephony market it’s a biggest there for the company as the basic telephony market has reached.

SWOT ANALYSIS DURING TRAINNING: •

More competitors are entering in the market.

• Competitors are providing economical plans. •

Competitors providing better services to customers.

•

Competitors getting feedback from customers at regular

Intervals. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 74

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• Competitors also reaching to small market.

CHAPTER-5

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5.0

2008

RESEARCH DATA

Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. To achieve the objectives, the primary as well as secondary source of data is used... Primary source includes the consumers and company’s officials through questionnaires. Secondary source of data includes the past records of company and data available on company’s website.

DATA COLLECTION •

Data collection from customers of different areas viz. Saket and Rajouri garden (New Delhi).

•

Sample size of customers covered is 100.

•

Other information related to project has been taken from company website.

Data collection for the research was through Primary Data, Secondary Data and survey. The data was collected by Judgmental sampling which is considered to be a non probability sampling. The data were collected through the following methodical techniques in this report.  Through questionnaires Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 76

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 Through interview  Through observation

1. QUESTIONNAIRES:Questionnaires consist of question printed or type in definite order on a form or set of form. It was questionnaire format firms tested on small sample then was modified and developed according to the environmental situation and other affecting factors. Each questionnaire is framed with Systematic and modern technique to make useful in achieving the objectives up to a maximum possible limit. There are two types of questionnaires, the first one is standard questionnaire and the second is un-standard questionnaire. The authority or expert sets the standard questionnaire. In the other hand un-structured questionnaire is set according to objective of the study by researcher. In this research work I used un-structured questionnaire with my best ability and under the guidance of my project guide. After floor acing the questionnaire, the respondents (Customers) were personally contacted. Each respondent was requested to answers the question with appropriate answer genuinely. All the questions were made very clear to them. The questionnaires were duly filled with the responses of all the respondents in the current report work

Pre-testing the Questionnaire Once the questionnaire is ready, it should be pre-tested. Pre-testing of the questionnaire implies that it is tried out on a few respondents and their reaction to the questionnaire is observed and is useful in helping the researcher decide whether any changes in the question- content or the wording of questions is called for. If so, specific changes that are desirable can also be ascertained and incorporated in the questionnaire. This would improve it. In our report the pre-testing of questionnaire was done in DSICDC complex. There were a few changes which were made after pre-testing.

2. INTERVIEW METHOD: Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 77

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This is a face to face interaction in which most of the interviewers are directly questioned and according to that personal and professional problem are collected from them. According to data competitor’s policy was found out along with their strengths and was able to conclude all facts with competitor’s point of view.

3. OBSERVATION METHOD:In this method the consumers were contacted to find out the opinion about the DEL and DSL. After the observation was done the data were shaped in questionnaire format. This method gave an idea about the satisfaction level of consumers, towards the product and company.

Two types of data:1. Primary Data 2. Secondary Data

5.2 PRIMARY DATA Primary data are gathered for the specific purpose or for a specific research problem, i.e. data that is gathered first hand, with the help of questionnaires, interview, observation etc consist of original information for the fulfilment of project objective. When the data are required for the particular study can be found neither in the internal record of the enterprises nor in published sources. In some cases it may become necessary to collect original data. Primary data can be collected in four ways:1. Observation 2. Survey Advantages of Primary Data:

Disadvantages of Primary Data:

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First Hand Data Biasness is reduced

2008

Time consuming Costly

The primary data was collected with the help of QUESTIONNAIRES, Visit to customers Shops and offices.

5.3

SECONDARY DATA Secondary data are the data, which already exists somewhere. Data

gathered and recorded by someone else prior to and for some purpose other than the current project .Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types:. 1. Internal data 2. External data When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc. Internal data are reports and memos generated within an organisation to facilitate its operations and annual report. External data are those specially produce for outside consumption.

Sources from which the researcher has taken the secondary data are as under: Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 79

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1. Direct observation 2. Airtel website 3. Books for marketing management 4. Surveys and customer data & report 5. Airtels customers care office 6. Airtel’s Brouchers Advantages of Secondary Data: Inexpensive Obtained Rapidly Not time consuming

Disadvantages ofSecondaryData:

Out-dated Data not consistent with needs Uncertain accuracy

Tools and techniques of analysis After the collection of data through questionnaires a researcher is required to analyze the data. For analysis one needs to use some tools and techniques. We have various tools available for analysis and interpretation of data like MSExcel, SPSS. In this report as the sample size was hundred Hence, we used MS-Excel and SPSS for tabulating the data and designing the bar diagrams and pie-charts.

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CHAPTER-6

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6.0

2008

DATA INTERPRETATION AND ANALYSIS

CONSUMER AWARENES regarding Airtel Broadband & Telephonic services? The pie chart below shows the percentage of people who are well aware of airtel broadband and teleservices, percentage of people who are unaware of airtel broadband and teleservices. After asking 100 respondents we got the following results

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Valid

Yes No Total

Frequency 68 32 100

Percent 68.0 32.0 100.0

Valid Percent 68.0 32.0 100.0

2008

Cumulative Percent 68.0 100.0

consumer awareness

consumer awareness (Airtel Broadband & Telephonic services) Yes

32.00%

No Pies show counts

68.00%

INTERPRETATION • 68% people are aware about Airtel broadband & teleservices. • 32% people are not aware about Airtel broadband & teleservices

SALES PROMOTION TECHNIQUE As sales promotion is very necessary part of every business just to enhance the sales .so it is necessary to know which is the best technique which will increase the sales of the company. So after collecting data from 100 respondents got the following results

Valid

Television Radio News paper

Frequency 33 8 7

Percent 33.0 8.0 7.0

Cumulative Valid Percent Percent 33.0 33.0 8.0 41.0 7.0 48.0

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AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA Banner Sales person Total

14 38 100

14.0 38.0 100.0

14.0 38.0 100.0

2008

62.0 100.0

40.0%

Percent

30.0%

20.0%

10.0%

0.0%

Television

Radio

Newspaper

Banner

Salesperson

salesprom otiontechnique

It can be determined from the above diagram that sales person is the one of the best technique for sales promotion because 38% people said that this is the way by which the company can enhance their sales. Timely feedback or in touch with customers can definitely increase the sales of the company. After that Television is also good technique by which company can do two things brand awareness and sales promotion, one of the major advantages of this technique is it covers wide area and cost is less as compare to sales person technique and other techniques are supported by very few people.

MARKET SHARE Name Of Company

Market Share

Market Share in %

Airtel MTNL Airtel and MTNL both MTNL AND TATA both

45 28 17 10

45% 28% 17% 10%

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%

50 45 40 35 30 25 20 15 10 5 0 Airtel

MTNL

Airtel and MTNL

2008

MTNL AND

TATA

brand

It has revealed from the above diagram that Airtel is the largest market share in Saket and Rajouri Garden as compare to MTNL, TATA, RELIANCE, SIFY and others. It is very clear from the diagram that there is very tough competition between airtel and mtnl.

LEVEL OF CONSUMER SATISFACTION In the present scenario for every company whether it is service provider or someone else it is quiet necessary to know that consumers are satisfied by product or service provided by the company .if company need to not think about that than definitely consumer will switch over to another brand. So it is necessary just to retain the consumer or if there is any problem then to resolve that problem. Data collected from 100 respondents in Saket and Rajouri Garden area are as follows: Airtel %

Mtnl %

TATA %

RELIANCE %

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AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA Worst Bad Good Better Best

00 02 05 45 00

01 00 04 28 05

00 04 06 00 00

2008 00 01 00 00 00

50 45 40 35 Airtel

30

%

Mtnl

25

TATA

20

RELIANCE

15 10 5 0 worst

bad

good

bettar

best

RATING

The data collected above shows that Airtel is only service provider which satisfies the maximum number of consumers as compare to MTNL and others because 45 % of consumers ranked it better and if we see MTNL customer’s only 28% consumers ranked it better. It is very clear in the diagram Airtel subscribers are very much satisfied by the services and don’t want to switch over.

CONSUMER BUYING PREFERENCE We also wanted to assess that if a person had bought broadband services on what basis did he select that particular brand. We wanted to know the top of the mind from all the parameters were considered.

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AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA Valid Percent 13.0

Cumulative Percent 13.0

7.0

7.0

20.0

6.0

6.0

26.0

47.0

47.0

73.0

18.0

18.0

91.0

9.0 100.0

9.0 100.0

100.0

Frequency Percent 13 13.0

Valid High speed Availability of 7 services Value added 6 services Economical 47 Unlimited 18 Downloading All 9 Total 100

2008

CONSUMER BUYINGPREFERENCE

9.00%

13.00%

High speed

7.00%

18.00%

Availabilityof services Value added services Economical Unlimited Downloading All

6.00%

47.00%

It’s revealed out from the above diagram that what people look for in it when they buy broadband & telephonic connection as we can see from the above pie chart that 47 % of people said that economical plans is the major buying criteria, 18% of think that broadband should high speed, 13% think that downloading should be unlimited, 9% think that all services should be there and 6% think that value added services should be there.

Response analysis of people using broadband and teleservices Top of the mind brand for broadband and teleservices Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 87

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Valid

Sify Airtel MTNL Tata indicom Reliance Others Total

Frequency 4 41 51 2 1 1 100

Percent 4.0 41.0 51.0 2.0 1.0 1.0 100.0

Valid Percent 4.0 41.0 51.0 2.0 1.0 1.0 100.0

2008

Cumulative Percent 4.0 45.0 96.0 98.0 99.0 100.0

60.0%

50.0%

Percent

40.0%

30.0%

20.0%

10.0%

0.0% Sify

Airtel

MTNL

Tata indicom

Reliance

Orthers

brand name

After having an experience of using broadband and teleservices respondents were asked as to which brand they would buy if they had to buy one. MTNL as that’s the only name in India which comes to your mind in the telephone and another most preferable reason is that MTNL provides economical plans, 41 % named Airtel for its good services and for its features. 4% respondents would buy sift as they believed that sify is in industry since long and is good for its services. It can be seen from the bar chart that MTNL and Airtel are the companies which people want to buy their services.

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FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT: The objective of this research was to determine the top of the mind buying preference of the buyer for broadband and teleservices. We also wanted to assess the brand preference for buyers of broadband and teleservices. It was also desired from the study to determine the factors which influence a decision of buyer in favour of a particular brand. We visited the small enterprises, shops to find out consumer awareness, brand preference, consumer expectation and demand for broadband and teleservices. After collecting data from Saket and Rajouri Garden finally We obsesrve that MTNL is the company which provides economical plans as compare to other companies and if we given an option to select one then 51% of people want MTNL just because of economical plans and 41% of people want Airtel because of its good services and offering maximum features. It should create awareness about its new plans for SME’s. The research revealed that 68% people aware about the airtel broadband and teleservices and this is quiet strange that 32% people unaware about the broadband and teleservices of Airtel. This is not a good indicator for the company. The people who are unaware of the airtel broadband and teleservices, now this is time when company can aware the customers and enhance the sales through their sales persons or televisions because these are two best techniques which is supported by consumers themselves. 38% people said sales person is one of the best techniques because by this they can aware as well as sale the product or service and 33% people said sales person cannot cover up wide area and it is costly also so advertisement on television is the best technique and this is cost effective and cover up the wide area.

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The people who had experienced of using broadband and teleservices were asked their brand preference, then 51% people preferred MTNL for two simple reasons economical plans and ethics and when talking about teleservices only MTNL’s name comes to the mind, while 41 % preferred Airtel because of innovative features and good services. When talking about the comparison in the services provide by the company or the level of satisfaction so 45% people ranked bettar for Airtel and 28% people ranked bettar for MTNL and 5% people said good for Airtel and 4% people said good for MTNL and 6% people said good for TATA. So it is very clear that Airtel consumers are satisfied by their service provider and those who said bad or worst company should take care of them and try to solve their problems as soon as possible. The people who are using broadband and teleservices, when asked to them what do you look when you buy broadband services then 47 % people said economical plans, 18 % people said unlimited downloading, 13% high speed, etc so it is very clear from this data that most buying preference in case of broadband is economic plans and the services provided by the company.

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CHAPTER –7

7.0 RECOMMENDATIONS Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 91

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On the basis of research and analysis of the study conducted in Saket and Rajouri Garden. I would like to suggest the following key points to the company.  During my project this fact becomes clear that the customer is not well aware about the all product and services of Airtel so through the strong advertisement company should try to increase the awareness of the Airtel services. . (a)

The company should sponsor local programs

(b)

The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc.

(c)

The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly.

(d)

The

company

should

distribute,

leaflets

of

AIRTEL

telemedia in posh colonies of DELHI  The company should provide new promotional schemes on the regular basis to consumers to increase its market share.  The company should provide economic plans to consumers to increase its market share.  The company should provide proper motivational schemes to the sales executives.  There should be proper delegation of authority.  The company should try to build some feed back mechanism from the customer to check the performance of the sales executives and to make them loyal. Study of CONSUMER BEHAVIOUR at BHARTI AIRTEL LIMITED Page 92

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 The company should provide proper product knowledge to the sales executives.  The company should go ahead with aggressive marketing. They should

light competition on Pricing strategy. (a) The company should look the strategies of the competitive companies. (b) The company should try its level best to keep the price low as compare to competitors. (c) The schemes should be updated as per the needs and occasions  Large part of Indian rural market is still untapped therefore airtel is

required to bring that area under services.

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CHAPTER-8

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8.0 BIBLIOGRAPHY BOOKS •

KOTLER PHILIP

“MARKETIG MANAGEMENT” NEW DELHI

PRENTICEHALL OF INDIA. •

“Marketing research” ICFAI University

•

Marketing Research – G. C. Beri

• Research Methodology – C. R. Kothari

Websites: WWW. BHARTIAIRTEL.IN WWW. AIRTEL.IN

SEARCH ENGINE:•

WWW.GOOGLE.COM

•

WWW.YAHOO.COM

•

http://en.wikipedia.org

MAGAZINES:• BUSINESS WORLD • BUSINESS TODAY •

4 p’s

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CHAPTER-9

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ANNEXURE 9.0

QUESTIONNAIRE RESPONDENT INFORMATION

NAME………………………COMPANY…………………………… CONTACT NO……………………………………………………….. EMAIL I.D……………………………………………………………. 1. Are you aware of the Airtel Broadband & telephone services? Yes

No

2. Can you suggest some sales promotional technique which attracts You? A. Television D. Banners

B. Radio E. Sales Person

C. News Paper

3. From which company you are getting Broadband & telephonic services? A. Airtel

B. Others( specify)

4. How many Broadband and telephonic connections are you using? A.1-2

B. 2-3

C. More than 3

5. What is your monthly expenditure over your internet & telephonic Requirement? A. 500

C. >1000

d.