Retail Penetration Level of Airtel Prepaid Cards

CHAPTER 1 INTRODUCTION ABOUT THE COMPANY Formerly known as bharti tele-ventures limited (btvl) is among India’s largest mobile phone and fixed network operators. With more than 28.6 million subscriptions as of September 2006, the company is one of the world's fastest growing telecom companies. It offers its mobile services under the airtel brand and is headed by sunil mittal, one of India’s richest men with a total worth of us$2.6 billion. The company is the only operator to provide mobile services in all the 23 circles in India. The company also provides telephone services and internet access over dsl in 14 circles. The company complements its mobile, broadband & telephone services with national and international long distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The company provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fibre optic backbone, last mile connectivity in fixed-line and mobile circles ,vsats, isp and international bandwidth access through the gateways and landing station. Although bharti airtel is the largest mobile service provider, bsnl, the state run mobile and wire line service provider is the market leader as of 30 august 2006 customer's base.

Telecom market The unprecedented growth in the mobile market is, perhaps, the most vivid facet of India’s economic transformation since the mid 1990s. Mobile technology and services came to India less than a decade ago. In the early days, a mobile was seen to be a fashion statement for the rich. Today, it is accepted as a basic communication medium for all socio-economic segments. As the pioneer and frontrunner, airtel has been instrumental in leading and ushering in the mobile revolution in India. The Indian mobile market is, today, amongst the fastest growing and the most competitive in the world. 1

There were 34.6 million mobile phone subscribers in the country as of April 2004 (source: cellular operators' association of India and association of basic telecom operators). With approximately seven million subscribers, airtel commands nearly 20% share of the market - making it the number one brand in the country. Airtel's world class service and innovative products have enabled it to establish this position of leadership.

Achievements The market. An airtel's journey to leadership began in Delhi in 1995. Since then, airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a process of acquisitions and green field projects. With a presence in over 1,400 towns, airtel today has the largest network capacity in the country. In the last nine years airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations, it was the first to cross the one million and the five million customer marks. It was also the first to launch services overseas. There are other 'firsts' credited to airtel - many of them in the area of innovative products and services. Today, airtel innovates in almost everything that it presents to. Excellent example is easy charge - India’s first paperless electronic recharging facility for prepaid customers. As evidence of its fine record, airtel has also been conferred with numerous awards. It won the prestigious techies award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 – a record that is still unmatched. And in 2003, it received the voice & data award for being 'India’s largest cellular service provider', amongst others. As part of its continuing expansion, airtel has invested over rs. 1,065 billion in creating a new telecom infrastructure. In 2003/04, bharti tele-ventures earned a gross profit of rs. 16 billion on revenues of rs. 50 billion.

2

Success story of Bharti Bharti enterprises has successfully focused its strategy on telecom while



straddling diverse fields of business 

It all began as a small industry bharti tele-ventures is today acknowledged as one of India’s finest companies, and its flagship brand airtel', has over 12 million customers across India



Recently, bharti has successfully launched an international venture with el rothschild group owned elro holdings India ltd., to export fresh agri- products exclusively to markets in europe and usa

Business divisions 

Mobile services – bharti airtel offers gsm mobile services in all the telecom circles of India and was the first private telecom service provider to connect all states of India.



Broadband & telephone services – our broadband (dsl) & telephone services (fixed line) are present in the 92 cities across India.



Enterprise services (carriers) – with 35,016 kilometres of optic fibre network we are a leading national long distance service provider. For international connectivity to east, we have a submarine cable landing station at Chennai. For international connectivity to the west, the company is a member of the south east Asia-middle east-western Europe – 4 (sea-me-we-4) consortiums along with 15 other global telecom operators. Enterprise services (corporate) – the group focuses on delivering



telecommunications services as an integrated offering including mobile, broadband & telephone, national and international long distance and data connectivity services to India’s leading 1300 corporate,

Vision 3

By 2010 airtel will be the most admired brand in India. 

Loved by more customers.



Targeted by top talent

 Benchmarked by more business.

Innovations We are changing the way India communicates by offering innovations that not only add value to people's lives but also deliver an unmatched customer experience. We were the first to. Provide electronic recharge for mobile phones initiate music retailing in the world with “easy music” and the first to offer a lifetime prepaid service. Provide innovations such as bollywood movie premiers, music services such as ring back tones & many more.

Organization chart 4

CHAPTER 2 5

REVIEW OF LITERATURE

Vishal Patel (2005) “Scenario of Indian telecom” The Indian communications scenario has transformed into a multiplayer, multi product market with varied market size and segments. Within the basic phone service the value chain has split into domestic/local calls, long distance players, and international long distance players.

Arun Domnic (2007) “Airtel Segment” Apart from having to cope with the change in structure and culture Airtel has had to gear itself to meet competition in various segments – basic services, long distance(LD), International Long Distance (ILD), and Internet Service Provision (ISP).It has forayed into mobile service provision as well.

Vinodh Sekar (2003) “Telecom Networking” The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links.

Kevin Mathew (2009) “Strategy of Advertising” Airtel core competencies are sales & promotions and as of now Airtel is leading brand in mobile services in India. Airtel have three big personality Viz. Sachin Tendulkar , Shahrukh Khan and music maestro A. R. Rahman for endorsing there product and services currently Airtel is outsourcing there no competence function and try to fully concentrate on his core competency that is sales promotion. 6

Daniel Winston (2006) “ Global Generation” Pricing depending on the market conditions / competition from cellular or wllmobile service providers and also to suit local conditions, there should be flexible pricing mechanism (either at central or local level).Improvement in technology Airtel should immediately shift to third generation switches by replacing its c-dot switches. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network.

CHAPTER 3 RESEARCH METHODOLOGY 7

3.1 MEANING The research approach for this study was conclusive research. Conclusive researches are designed to help executives to choose among various possible alternatives to make a viable business decision. Further this research was of descriptive type, which is an offshoot of conclusive research. The problem for this research was non-operating in nature the data both primary and secondary data, the source was one hundred respondents for primary data. For the proper analysis of data simple statistical techniques such as percentage were use. It helped in making more accurate generalization from the data available.

3.2 OBJECTIVES OF THE STUDY PRIMARY OBJECT  To understand the awareness of Airtel products among retailers in the market.  To create interest as well as find out the potential new retail outlets  To analyze the retailer’s perception towards Airtel  To know the satisfaction level of Retailers towards Airtel products and services.

SECONDARY OBJECT  To maximize retail outlets through traditional channel that will increase the sales in future.  To create more numbers of Airtel subscribers.

3.3 SOURCES OF DATA Source of data for this project primary & secondary only. In reference to the theoretical concept as well as for information are collected through secondary 8

sources from paper published material i.e. Newspaper, journal and magazine & from printed electronic media i.e. Internet websites. The primary data was collected through questionnaire filled from the respondents.

3.4 COLLECTION OF PRIMARY DATA For the study primary data is obtained through preparing questionnaire

3.5 COLLECTION OF SECONDARY DATA The secondary data that are required are got from the internet, books and other sources.

3.5 SAMPLE SIZE The method used for sample technique was random sampling method. This method was used because it was not know previously as to whether a particular person will be asked to fill the questionnaire.

3.6 SAMPLE UNIT The population of the sample would be 100 respondents.

3.7 STASTICAL TOOLS  Simple Percentage

Analysis=Number of Respondents/Total Number of Respondents×100% 9

 CHI-SQUARE Chi Square analysis has been used to judge the relationship or association between two attributes and to find out how they are influencing the investment patterns. Χ2=Σ(O-E)2/E Degree of freedom= (R-1) (C-1) Where O = Observed Frequency E = Expected Frequency R = Number of Rows C = Number of Columns

3.8 LIMITATIONS Some of the other limitations and the problems in the ojt is that the most of the people are not aware about the need and importance of the better services which the companies are offering. And the limitation of my project is that the companies are not ready to provide data for the project because of their privacy policies.

 The product may not suit the requirement of the prospect  Strong competition with other telecom companies  Buying power of the customer  As there are many players present in the market so we have to face may questions from the customers.  Corporate are too busy to lend us their precious time.  Time is being big constraint. 10

 Geographical limitation as bhopal is big place so it difficult to visit all those places.  Financial limitation.  Company’s distribution channel is not responding properly.

CHAPTER- 4 ANALYSIS AND INTERPRETATION

11

Table – 1 Age of the respondents

S.No

Factors

No of

Percentage

respondents 1.

20-25

10

10

2.

25-35

64

64

3.

35 Above

26

26

Total

100

100.00

Interpretation From the Above Table we predict that 26 % of respondent are above 35 years and 64 % of the respondent are between 25-35 and 10% of respondent are below 25. Majority This study reveals that 64 % of the respondents are between 25-35 age group.

CHART- 1 Age of the respondents

12

NO OF RESPONDENTS

AGE

Table – 2 Gender of the respondents

S.No

Factors

No of 13

Percentage

respondents 1.

Male

62

62

2.

Female

38

38

Total

100

100.00

Interpretation From the Above Table we predict that 62% of the Respondents are Male and 38% of them are female.

Majority This study reveals that 62% of the respondents are male.

CHART- 2 Gender of the respondents

14

NO OF RESPONDENTS

GENDER

Table – 3 Sim Card Sales

S.No

Factors

No of 15

Percentage

respondents 1.

Yes

82

82

2.

No

18

18

Total

100

100.00

Interpretation From the Above Table we predict that 82% of them sell sim cards and 18% do no sell.

Majority This study reveals that 82% of the respondents sell sim cards.

CHART 3 Sim Card Sales

16

NO OF RESPONDENTS

Table – 4 Voucher Sale

17

S.No

Factors

No of

Percentage

respondents 1.

Yes

86

86

2.

No

14

14

Total

100

100.00

Interpretation From the Above Table we predict that 86% of them sell Airtel voucher and 14% do no sell the voucher.

Majority This study reveals that 86% of the respondents sell Airtel voucher.

CHART- 4 Voucher Sale

18

NO OF RESPONDENTS

Table – 5 E-Recharge

19

S.No

Factors

No of

Percentage

respondents 1.

Yes

76

76

2.

No

24

24

Total

100

100.00

Interpretation From the Above Table we predict that 76 % of them do e-recharge and 24 % do no recharge.

Majority This study reveals that 76 % of the respondents do Airtel`s e-recharge.

CHART 5 E-Recharge

20

NO OF RESPONDENTS

Table – 6 Sale of Other Prepaid Cards

21

S.No

Factors

No of

Percentage

respondents 1.

Yes

94

94

2.

No

6

6

Total

100

100.00

Interpretation From the Above Table we predict that 94% of the respondent sell other sim cards while 6 % do not sell the sim cards.

Majority This study reveals that 94% of the respondents sell other cards.

CHART- 6 Sale of Other Prepaid Cards

22

NO OF RESPONDENTS

Table – 7 Customer’s Move towards Airtel

S.No

Factors

No of 23

Percentage

respondents 1.

Network

28

28

2.

Call rates

38

38

3.

Talk value

24

24

4.

Value added service

10

10

Total

100

100.00

Interpretation From the Above Table we predict that 28% of respondents prefer network,38 % prefer call rates while 24 % prefer talk value & 10 % prefer value added service.

Majority This study reveals that 38 % of the respondent s chose Airtel for call rates.

CHART 7

Customer’s Move towards Airtel

24

NO OF RESPONDENTS

Table – 8

Other Prepaid Preferences

25

S.No

Factors

No of

Percentage

respondents 1.

AIRCEL

13

13

2.

VODAFONE

26

26

3.

DOCOMO

36

36

4.

RELIANCE

24

24

Total

100

100.00

Interpretation From the Above Table we predict that 13 % of respondents prefer Aircel sim, 26% prefer vodofone sim and 36% prefer Docomo sim & 24% prefer Reliance.

Majority This study reveals that 36 % of the respondents choose Docomo.

CHART- 8

Other Prepaid Preferences

26

NO OF RESPONDENTS

Table – 9

Demand for Airtel

27

S.No

Factors

No of

Percentage

respondents 1.

Yes

64

64

2.

No

36

36

Total

100

100.00

Interpretation From the Above Table we predict that 64 % of them ask for Airtel and 36 % don’t recharge.

Majority

This study reveals that 64 % of the respondents ask for Airtel.

CHART- 9

Demand for Airtel

28

NO OF RESPONDENTS

Table – 10

Respondents on Airtel

S.No

Factors

No of respondents 29

Percentage

1.

Local Calls

37

37

2.

National Calls

23

23

3.

International Calls

12

12

4.

Sms

28

28

Total

100

100.00

Interpretation The Above Table indicates that 37 % of concentration is on local calls 23 % concentration is on National calls 12 % concentration is on international calls & 28 % concentration is on sms.

Majority This study reveals that 37 % of the respondent’s importance goes for local calls.

CHART-10

Airtel`s Concentration

30

NO OF RESPONDENTS

Table –11

Airtel`s Distribution Service

S.No

Factors

No of 31

Percentage

respondents 1.

Yes

84

42

2.

No

16

8

Total

100

100.00

Interpretation From the Above Table we predict that 84 % are satisfied with Airtel`s Distribution Service and 16 % are not satisfied.

Majority This study reveals that 84 % of the respondents are satisfied with Airtel

CHART- 11

Airtel`s Distribution Service

32

NO OF RESPONDENTS

Table –12

Airtel`s Profit Margin

S.No

Factors

No of 33

Percentage

respondents 1.

Yes

64

64

2.

No

26

26

Total

100

100.00

Interpretation From the Above Table we predict that 64 % are profited and 26 % are not profited.

Majority This study reveals that 64 % of the respondents are profited.

CHART-12

Airtel`s Profit Margin

34

NO OF RESPONDENTS

Table –13

Airtel Pushing & Pulling Startegy

S.No

Factors

No of respondents 35

Percentage

1.

Pushing

48

48

2.

Pulling

42

42

Total

100

100.00

Interpretation From the Above Table we predict that 48 % of customers are pushed and 42 % of customers are pulled.

Majority

This study reveals that 48 % of the respondents are pushed.

CHART 13 Pushing & Pulling

36

NO OF RESPONDENTS

Table – 14

User Friendly 37

S.No

Factors

No of

Percentage

respondents 1.

Yes

81

81

2.

No

19

19

Total

100

100.00

Interpretation From the Above Table we predict that 81% respondents find it user friendly and 19 % do not.

Majority This study reveals that 81% of the respondents find airtel user friendly.

CHART- 14

User Friendly

38

NO OF RESPONDENTS

Table –15

Airtel`s Benefits

39

S.No

Factors

No of

Percentage

respondents 1.

Free Calls Facility

36

36

2.

Profit

24

24

3.

Value added Service

32

32

4.

Information Database

8

8

Total

100

100.00

Interpretation

From the Above Table we predict that 36 % of respondents get free call facility while 24 % get profit 32% get value added service 8 % get information database.

Majority

This study reveals that 36 % of the respondents get free call facility.

CHART-15

Airtel`s Benefits

40

NO OF RESPONDENTS

Table – 16

Other Benefits to the Customer

S.No

Factors

No of 41

Percentage

respondents 1.

AIRCEL

28

28

2.

VODAFONE

10

10

3.

DOCOMO

42

42

4.

RELIANCE

20

20

Total

100

100.00

Interpretation From the Above Table we predict that 28 % of respondents choose Aircel 10 % choose vodafone 42 % choose Docomo and 20 % choose reliance.

Majority

This study reveals that 42 % of the respondents chose docomo.

CHART 16

Other Benefits

42

NO OF RESPONDENTS

Table –17

Economical

S.No

Factors

No of

Percentage

respondents 1.

AIRCEL

30 43

30

2.

VODAFONE

6

6

3.

DOCOMO

46

46

4.

RELIANCE

18

18

Total

100

100.00

Interpretation From the Above Table we predict that 30 % of respondents choose Aircel 6 % choose Vodafone 46 % choose Docomo and 18 % choose Reliance.

Majority

This study reveals that 30 % of the respondents chose Aircel.

CHART-17

Economical

44

NO OF RESPONDENTS

Table –18

Customer Attraction

S.No

Factors

No of respondents 45

Percentage

1.

AIRCEL

12

12

2.

VODAFONE

8

8

3.

DOCOMO

28

28

4.

RELIANCE

52

52

Total

100

100.00

Interpretation From the Above Table we predict that 12 % of respondents choose Aircel 8 % choose Vodafone 284 % choose Docomo and 52 % choose Reliance.

Majority This study reveals that 52 % of the respondents choose reliance.

CHART-18

Customer Attraction

46

NO OF RESPONDENTS

Table – 19

Airtel`s Distribution Service

S.No

Factors

No of 47

Percentage

respondents 1.

Good

42

42

2.

Average

36

36

3.

Excellent

26

26

Total

100

100.00

Interpretation From the Above Table we predict that 42 % feel Good,32 % feel its average,26 % feel its Excellent.

Majority This study reveals that 42 % of the respondents say it is good.

CHART-19

Airtel`s Distribution Service

48

NO OF RESPONDENTS

Table –20

Facility towards Airtel

S.No

Factors

No of 49

Percentage

respondents 1.

Yes

72

72

2.

No

28

28

Total

100

100.00

Interpretation From the Above Table we predict that 72 % respondents are facilitated and 28 % are not.

Majority

This study reveals that 72 % of the respondents are facilitated.

CHART- 20

Facility towards Airtel

50

NO OF RESPONDENTS

Table –21

1/sec pulse scheme

51

S.No

Factors

No of

Percentage

respondents 1.

Yes

92

92

2.

No

8

8

Total

100

100.00

Interpretation From the Above Table we predict that 92 % agree with the sale and 8 % are not.

Majority

This study reveals that 92 % of the respondents agree with the sale.

CHART 21

1/sec pulse scheme

52

NO OF RESPONDENTS

Table –22

Influence on 3G on Customers Perseverance

S.No

Factors

No of 53

Percentage

respondents 1.

Yes

84

84

2.

No

16

16

Total

100

100.00

Interpretation From the Above Table we predict that 84 % agree with the Influence on 3G on Customers and 16% do not Influence on 3G on Customers.

Majority This study reveals that 84 % of the respondents agree with the 3g influence.

CHART-22

Influence on 3G

54

NO OF RESPONDENTS

CHAPTER 5

5.1 FINDINGS

55

 This study reveals that 64 % of the respondents are between 25-35 age group.  This study reveals that 62% of the respondents are male.  This study reveals that 82% of the respondents sell sim cards.  This study reveals that 86% of the respondents sell Airtel voucher.  This study reveals that 76 % of the respondents do Airtel`s erecharge.  This study reveals that 94% of the respondents sell other cards.  This study reveals that 38 % of the respondent s chose Airtel for call rates.  This study reveals that 26 % of the respondents choose vodafone.  This study reveals that 64 % of the respondents ask for Airtel.  This study reveals that 84 % of the respondents are satisfied with Airtel.  This study reveals that 64 % of the respondents are profited.  This study reveals that 48 % of the respondents are pushed.  This study reveals that 81% of the respondents find Airtel user friendly.  This study reveals that 36 % of the respondents get free call facility.  This study reveals that 52 % of the respondents choose Reliance.  This study reveals that 72 % of the respondents are facilitated.  This study reveals that 92 % of the respondents agree with the sale.  This study reveals that 84 % of the respondents agree with the 3g influence. 56

5.2 SUGGESTIONS

 There should be articles related with the Telecom Sector in the daily news papers because almost every educated person comes across it every day.  It can help in increasing the awareness level of the Telecom Sector among the people.  There should be various programs regarding the Telecom Sector either in the evening or in the morning because it can serve as a powerful tool to make awareness.  The daily analysis of the Telecom Sector must be broadcasted during these programs.  The information may constitute of the daily prices of various Telecom, information regarding those Telecom which are generating maximum cheaper etc.  It is also one of the most powerful tools to spread the messages since almost all the houses in the world own television.  The awareness programs regarding the Telecom Sector can be broad castled on various channels.  Even this media can help to create awareness very fast as compared to any other media.  Some awareness campaign should be launched to make the people aware of the Telecom Sector instruments.

57

5.3 CONCLUSION

 Airtel facing a steep competition in telecom market. It is difficult to maximize the sale as maximum consumers are local business men and they prefer more talk time in their usual tariff.  Airtel has a good reputation as a telecom brand in the telecom field  People prefer Airtel because of its network coverage all over the state including rural areas.  Only high tariff cost matters in sales maximization.  Competitors selling strategy becoming a biggest problem for sales maximization.  Retailer benefit schemes as they achieve the target can push more subscribers and maximize sales.  Retailer margin is not a problem for Airtel  Retailers are unhappy with Airtel’s advertisement offers because the company is not providing them the electronic boards in time (for new outlets), banners etc. . . . Where others (new entrants) are doing it. So, the other entrants are capable of pushing their sales.

58

5.4 ANNEXURE Questionnaires Name

:

Age

:

Gender

:

Address

:

__________________________________ __________________________________ __________________________________

1. Are you selling airtel’s sim cards? ❏ Yes

❏ No

2. Are you selling airtel’s vouchers? ❏ Yes

❏ No

3. Do you deal with airtel’s easy recharge? ❏ Yes

❏ No

4. Do u sell prepaid other than airtel ❏ Yes

❏ No

5. What makes the customer go towards airtel ❏Network

❏Call rates

❏Talk value

❏Value added service

6. Which prepaid cards customers prefer rather than airtel ❏ Aircel ❏ Vodafone ❏Docomo ❏Reliance 7. Do you think maximum people are asking for airtel? 59

❏ Yes

❏ No

8. Airtel concentrates more on ❏ Local calls

❏ National calls

❏ International calls

❏ Sms

9. Are you satisfied with airtel distributor’s service procedure? ❏ Yes

❏ No

10. Do you think airtel provides less margin compared to other service providers. ❏ Yes

❏ No

11. Do you think is it easy to push sale of airtel. ❏ Yes

❏ No

12. Does the customer ever pulled towards airtel, airtel is

❏Pushing

❏Pulling

13. Is Airtel customer service user friendly ❏ Yes

❏ No

14. What benefits do you incur? ❏Free calls facility

❏Profit

❏Value added service

❏Information database

15. Which of the following gives more benefit to the customers

❏ Airtel ❏Vodafone ❏Docomo ❏Reliance 16. According to you which is more economical ❏ Airtel ❏ Vodafone ❏Docomo ❏Reliance 17. Which one gives more offer to attract the customers ❏ Airtel ❏ Vodafone ❏Docomo ❏Reliance 60

18. How is the internet facility provided by airtel

❏Good

❏Average

❏Excellent

19. Do you think airtel gives more facility in towards internet ❏ Yes

❏ No

20. Do you think sale of airtel has increased due to the 1/sec pulse scheme ❏ Yes

❏ No

21. Do you think 3G Generation will influence the Sale of Airtel in Future

❏ Yes

❏ No

22. What Suggestion do you recommend for improving Airtel

5.5 BIBLIOGRAPHY 61

BOOKS:  Kotler, Philip. (1999) `Marketing Management’, Prentice Hall of India Pvt.

Ltd.,  Kothari, C.R (2001) `Research Methodology’, Vishwa Publication.

 Havalder K.K. and Vasant M.C. (2007), “ Sales and Distribution Management”, Tata McGraw Hill, New Delhi

WEBSITES:  www.Airtel.com  www.Google.com

 www.Scribd.com  www.123manage.com

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