CHAPTER – I

INTRODUCTION

1
 INTRODUCTION

"As we spread wings to expand our capabilities and explore new horizons, the fundamental
focus remains unchanged: seek out the best technology in the world and put it at the service of
our ultimate user: our customer."

Promotion is true that products are manufactured to satisfy the needs of the consumers.. But
alone is not enough. Today the responsibility of the manufacturers does not cease with physical
production whatever may be the nature of the product. The present day marketers are consumer
oriented where it is the duty of the manufacturers to know from where, when, how and what price the
products would be available. Successful marketing consists in offering the right product of the right
price of the right place (and time) with right promotion.

In course of time, various activities came into vogue designed particularly to help easy sale of
goods. These activities commonly known as promotional Mix. The marketing communication Mix
also called as the “Promotion Mix” consists of four major tools.

1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling

Generally marketing communication is undertaken to pass on the message of a product or

sale to the ultimate consumers. Thus, there are three elements in this process or an AIRTEL. The real
objective of advertising is effective communication between producers and consumers. In other
words the ultimate purpose all advertising is “Increased awareness” list of the following specific
objectives of advertising.
The process of selling is ensured by personal selling supposed
by advertising and sales promotion. Of these three methods personal selling occupies the
predominant role mainly because of the personal element involves. It may be described as a personal
source rendered to the community in connection with marketing of goods. It is a marketing process
with which consumers are personally persuaded to by goods and services offered by a manufacturer.

2
 Features:
1. It helps to establish a cordial and abiding relationship between the organization and its
customers.
2. It is a creative art. It creates wants a new.
3. It is a science, in the sense that “One human mind influences another human mind”.
4. Personal selling imparts knowledge and technical assistance to the consumers.

Promotion includes all those functions, which have to do with the marketing of a product all
other activities designed to increase and expand the market. But it is clearly distinguished from
advertising and personal selling, through basic aim or all the three is one and the same viz., to
increase the volume of sales.

“Sales promotion in a specific sense, refers to those sales activities that supplement both
personal selling and advertising and co-ordination ate them and help to make them effective, such as
displays, shows and expositions, demonstrations and other non recurrent selling efforts not in the
ordinary routine”.

In a general sense the sales promotion includes “personal selling, advertising and
supplementary selling activities”.
Evaluation of Sales Promotion:

Two decades ago, there was no agreement among the marketing people that there was a
separate sales promotion function. In those days, promotion was a “share- run to gain a short run
good”. The importance of sales promotion is modern marketing has increased mainly an account of
its ability in promoting sales and preparing the ground for future expansion. The main objective of
sales promotion is to attract the prospective buyer towards the product.

PUBLICITY
The publicity is derived as “Any form of commercially significant news about a product, and
institution, a service, or a person published I a space or radio i.e. not paid for by the sponsor”. In
short advertisement is paid form of publicity. It is to be noted here that though the terms
’ADVERTISING ‘AND ‘Publicity’ or differences in the field of marketing, both are used
interchangeably.

3
 OBJECTIVES

 To know the customer opinion about tariff rates of Airtel

 To know the brand loyalty of Airtel

 To know the influencing factors of Airtel

 To know the market share of the Airtel

 To know the sources of awareness for the customers

 To identify the customers satisfaction level regarding the advertisement of Airtel.

 To find out the right media for advertising of Airtel in the view of customers.

 To know the impact of advertisement on customers and on sales

 To find out the customer attitude towards advertisement campaign of Airtel.

4
RESEARCH METHODOLOGY

One of the important tools for conducting marketing researching is the availability
of necessary and useful data. Data collection is more of an than science the methods of
marketing research are in a way the methods of data collection. The sources of
information fall under two categories.

Internal sources:

Every company has to keep certain records such as accounts, records, reports, etc.,
these records provide sample information which can organizations usually keeps
collecting in its working.

External sources:
When internal records are insufficient and required information is not available,
the organizations will have to depend on external sources. The external sources of data
are:

Primary data:

Primary data are data gathered for a specific purpose or for a specific research
report.

For systematically collecting the data the closed end questionnaire is used. The
questionnaire consists of questions relating to various aspects of the study for proper
data collection the questionnaire is divided into 2 sections. Both the sections are meant
for the respondent only.

Secondary data:
Secondary data are data that are collected for another purpose and already exist
somewhere. Data pertaining to company is collected from company web site company
catalogues and magazines. The company profile gives a detailed report of history various
products manufacture by its etc.

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 METHOD OF RESEARCH

SURVEY METHOD:

A survey is a complete operation, which requires some technical knowledge

survey methods are mostly personal in character. Surveys are best suited forgetting
primary data. The researcher obtains information from the respondents by interviewing
them.
SAMPLING:
It is not always necessary to collect data from whole universe. A small
representative sample may serve the purpose. A sample means a small group should be
emanative cross section and really “representative” in character. This selection process is
called sampling.

SAMPLE SIZE:

Samples are devices for learning about large masses by observing a few individuals. The
selected sample is 25.

Sampling plan:

1.SAMPLING UNIT -The business people, professionals are survived

2. SAMPLING PROCEDURE - Stratified random sampling method is chosen.

The data collected from both the primary and secondary sources is tabulated and

presented in a systematic from prior to classification and interpretation.

METHOD OF SAMPLING

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RANDOM SAMPLING METHOD

The method adopted here is random sampling method. A random sample is one
where each item in the universe has as equal chance of known opportunity of being
selected.

RESEARCH INSTRUMENT

QUESTIONNAIRE:

A Questionnaire is carefully completed logical sequence of question directed to a

define objective. It is the out line of what information is required and the framework on

which the data is built upon. Questionnaire is son commonly used in securing market

information that its preparation deserves utmost skill and care.

FORMS OF QUESTIONS

OPEN ENDED QUESTIONS:

They are descriptive in nature. Respondents are allowed to answer in their own
words. Such questions buying the actual opinion of the respondent regarding a product.

CLOSED ENDED QUESTIONS:

They are not descriptive in nature. They will be given certain choices and the

respondents have to choose choice among them. They make analysis easy but sometimes

they restrict the respondents’ choices.

TYPES OF CLOSED ENDED QUESTIONS:

DICHOTAMS: a question offering two answers choice.

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MULTIPLE CHOICE: a question offering three choices.

RATING SCALE: a scale that rates some attributes from “poor” to “excellent”.

NEED OF THE STUDY

The real objective (need) of advertising is effective communication between producers and
consumers. In other words the ultimate purpose all advertising is “Increased awareness” list of the
following specific objectives of advertising.
The process of selling is ensured by personal selling supposed

by advertising and sales promotion. Of these three methods personal selling occupies the

predominant role mainly because of the personal element involves. It may be described as a

personal source rendered to the community in connection with marketing of goods.

SCOPE OF THE STUDY

The scope of the study is very limited that to the research has been centered to only hundred
dealers of Twin Cities (Hyderabad&Secundrabad), rather than innumerable dealers dealing
with different products of different brands across the globe.

LIMITATIONS

1. Time is the main limitation for the study, as project was restricted only for 1 and
half month.

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2. The methods used in this project are random sampling methods and results
obtained may not be accurately fully accurate and believable.

3. The analysis is purely based on closed ended questions and due their deliberate
manipulation, important information may be lost and even barriers of
communication would cause a limitation.

4. The whole project research was confined to only Twin Cities

(Hyderabad&Secundrabad).

5. The research was done with the help of employees of the organization for some of
the dealers and their barriers of communication or way to represent the topic
would differ and actual information would be lost.

6. The dealers responded during the survey were possessing primary education and
their views would not be able to provide the required information.

9
 CHAPTER – II

Review of Literature

10
 HISTORY OF CELL PHONES

CELLULAR PHONE

A type of wireless communication that is most familiar to mobile phones users. It's
called 'cellular' because the system uses many base stations to divide a service area into
multiple 'cells'. Cellular calls are transferred from base station to base station as a user
travels from cell to cell.

The basic concept of cellular phones began in 1947, when researchers looked at crude
mobile (car) phones and realized that by using small cells (range of service area) with
frequency reuse they could increase the traffic capacity of mobile phones substantially.
However at that time, the technology to do so was nonexistent.

A cell phone is a type of two-way radio. In 1947, AT&T proposed that the FCC
(Federal Communication Commission) allocate a large number of radio-spectrum
frequencies so that widespread mobile telephone service would become feasible and AT&T
would have a incentive to research the new technology. But there was a gap between the
initial concept of cellular service and its availability to the public. The FCC decided to limit
the amount of frequencies available in 1947, the limits made only twenty-three phone
conversations possible simultaneously in the same service area - not a market incentive for
research.

The FCC reconsidered its position in 1968, stating "if the technology to build a better
mobile service works, we will increase the frequencies allocation, freeing the airwaves for
more mobile phones." AT&T and Bell Labs proposed a cellular system to the FCC of many
small, low-powered, broadcast towers, each covering a 'cell' a few miles in radius and
collectively covering a larger area. Each tower would use only a few of the total frequencies
allocated to the system. As the phones traveled across the area, calls would be passed from
tower to tower.

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INDIVIDUAL INVENTORS & MOBILE PHONE PATENTS

Radio Telephone System

Inventors: Martin Cooper, Richard W. Dronsuth, ; Albert J. Mikulski, Charles N. Lynk Jr.,
James J. Mikulski, John F. Mitchell, Roy A. Richardson, John H. Sangster

Dr Martin Cooper, a former general manager for the systems division at Motorola, is
considered the inventor of the first modern portable handset. Cooper made the first call on
a portable cell phone in April 1973. He made the call to his rival, Joel Engel, Bell Labs head
of research. Bell Laboratories introduced the idea of cellular communications in 1947 with
the police car technology. However, Motorola was the first to incorporate the technology
into portable device that was designed for outside of a automobile use. Cooper and his co-
inventors are listed above.

By 1977, AT&T and Bell Labs had constructed a prototype cellular system. A year
later, public trials of the new system were started in Chicago with over 2000 trial customers.
In 1979, in a separate venture, the first commercial cellular telephone system began
operation in Tokyo. In 1981, Motorola and American Radio telephone started a second U.S.
cellular radio-telephone system test in the Washington/Baltimore area. By 1982, the slow-
moving FCC finally authorized commercial cellular service for the USA. A year later, the
first American commercial analog cellular service or AMPS (Advanced Mobile Phone
Service) was made available in Chicago by Ameritech.

Despite the incredible demand, it took cellular phone service 37 years to become
commercially available in the United States. Consumer demand quickly outstripped the
1982 system standards. By 1987, cellular telephone subscribers exceeded one million and
the airways were crowded.

Three ways of improving services existed:

 One - increase frequencies allocation

 Two - split existing cells

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 The FCC did not want to handout any more bandwidth, and building/splitting cells
would have been expensive and would have added bulk to the network. To stimulate the
growth of new technology, the FCC declared in 1987 that cellular licensees could employ
alternative cellular technologies in the 800 MHz band. The cellular industry began to
research new transmission technology as an alternative.

WIRELESS PCS TECHNOLOGY

PCS (Personal Communication Services): Used to describe a newer class of wireless

communications services recently authorized by the FCC. PCS systems use a different radio
frequency, the 1.9 GHz band, than cellular phones and generally use all-digital technology
for transmission and reception.

After the Federal Communications Commission (FCC) declared in 1987 that cellular
licensees could employ alternative cellular technologies in the 800 MHz band, the cellular
industry began to research new transmission technology as an alternative to AMPS
(Advanced Mobile Phone Service) that had been the industry standard since 1978.

In 1988, the (CTIA) was established to work with the cellular service operators and
researchers to identify new technology requirements and set goals. They wanted the new
products and services introduced by 1991, a 1000% percent increase in system capacity with
both AMPS (analog) and digital capability during transmission, and new data features such
as fax and messaging services.

The (TIA) created a standard specification based on the requirements the CTIA had
recommended. The TDMA Interim Standard 54 or TDMA IS-54 was released in early 1991.
The technology was tested that same year in Dallas and Sweden. In 1994, the FCC
announced it was allocating spectrum specifically for PCS technologies at the 1900 MHz
band. Three major standards have been released since 1991. All of these new digital
wireless standards are currently being used in PCS.

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WIRELESS STANDARDS

Analog Service: A method of modulating radio signals so that they can carry information
such as voice or data. Analog cellular phones work like a FM radio. The receiver and
transmitter are tuned to the same frequency, and the voice transmitted is varied within a
small band to create a pattern that the receiver reconstructs, amplifies and sends to a
speaker. The drawback of analog is the limitation on the number of channels that can be
used.

Digital Service: A method of encoding information using a binary code of 0s and 1s. Most
newer wireless phones and networks use digital technology. In digital, the analog voice
signal is converted into binary code and transmitted as a series of on and off transmissions.
One of digital's drawbacks is that there are three digital wireless technologies, CDMA,
TDMA and GSM. Phones that work with one technology may not work on another.

Time Division Multiple Access (TDMA) is an update to TDMA IS-54, also called
Digital AMPS or D-AMPS. Released in 1994, TDMA IS-136 uses the frequency bands
available to the wireless network and divides them into time slots with each phone user
having access to one time slot at regular intervals. TDMA IS-136 exists in North America at
both the 800 MHz and 1900 MHz bands. Major US carriers using TDMA are AT&T Wireless
Services, Bell South and Southwestern Bell.

CDMA IS-95 (Code Division Multiple Access) is based on a form of spread spectrum
technology that separates voice signals by assigning them digital codes within the same
broad spectrum. CDMA type technology dates back to the 1940s, when spread spectrum
technology was used in military communications systems because it was resistant to
interference from enemy signals. The corporation began developing a CDMA wireless
system in the late 1980s that was accepted as a standard in 1993 and went into operation by
1996. CDMA also exists at both the 800 MHz and 1900 MHz bands. The major US carriers
using CDMA are Air Touch, Bell Atlantic/Nynex, GTE, Primeco and Sprint PCS.

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GSM (Global System for Mobile Communications) is based on a improved version of
TDMA technology. In 1982, the Conference of European Posts and Telecommunications
(CEPT) began the process of creating a digital cellular standard that would allow users to
roam from country to country in Europe. By 1987, the GSM standard was created based on
a hybrid of FDMA (analog) and TDMA (digital) technologies. GSM engineers decided to
use wider 200 kHz channels instead of the 30 kHz channels that TDMA used, and instead
of having only 3 slots like TDMA, GSM channels had 8 slots. This allowed for fast bit rates
and more natural-sounding voice-compression algorithms. GSM is currently the only one
of the three technologies that provide data services such as email, fax, internet browsing,
and intranet/LAN wireless access, and it's also the only service that permits users to place
a call from either North America or Europe. The GSM standard was accepted in the United
States in 1995. GSM-1900 cellular systems have been operating in the US since 1996, with
the first network being in the Washington, D.C. area. Major carriers of GSM 1900 include
Omnipoint, Pacific Bell, BellSouth, Sprint Spectrum, Microcell, Western Wireless, Powertel
and Aerial.

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 CHAPTER – III

INDUSTRY PROFILE

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India's telecommunication network is the third largest in the world on the basis of its customer
base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market.
Major sectors of the Indian telecommunication industry are telephony, internet and broadcasting.

Telephonic network in the country, which is in an ongoing process of converging tonext generation
network, employs an extensive system of network elements such as digital telephone
exchanges, mobile switching centers, media gateways andsignalling gateways at the core,
interconnected by a wide variety of transmission systems using media, such as optical
fiber or Microwave radio relay. The access network, which connects the subscriber to the core, is
highly diversified with different copper-pair, optic-fibre and wireless technologies. DTH, a relatively
new broadcasting technology has attained significant popularity in the Television segment. The
introduction of private FM has given a fillip to the radio broadcasting in India . Telecommunication
in India has greatly been supported by the INSAT system of the country, one of the largest domestic
satellite systems in the world. India possesses a diversified communications system, which links all
parts of the country by telephone, Internet, radio, television and satellite.

Indian telecom industry underwent a high pace of market liberalization and growth since 1990s and
now has become the world's most competitive and one of the fastest growing telecom markets. The
Industry has grown over twenty times in just ten years, from under 37 million subscribers in the year
2001 to over 846 million subscribers in the year 2011. [1] India has the world's second-largest mobile
phone user base with over 929.37 million users as of May 2012. It has the world's third-
largestInternet user-base with over 137 million as of June 2012.

The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$53.53 billion) for
2010–11 financial year, while revenues from telecom equipment segment stood at
117,039 crore (US$22.12 billion)

Telecommunication has supported the socioeconomic development of India and has played a
significant role to narrow down the rural-urban digital divide to some extent. It also has helped to
increase the transparency of governance with the introduction of e-governance in India. The
government has pragmatically used modern telecommunication facilities to deliver mass education
programmes for the rural folk of India.

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HISTORY

The Beginning

A microwave tower for short distance (~50 km) communication

The history of Indian telecom can be started with the introduction of telegraph. The Indian postal and
telecom sectors are one of the worlds oldest. In 1850, the first experimental electric telegraph line
was started between Kolkata and Diamond Harbour. In 1851, it was opened for the use of the British
East India Company. The Posts and Telegraphs department occupied a small corner of the Public
Works Department, at that time.

Subsequently, the construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (then
Calcutta) and Peshawar in the north along with Agra, Mumbai (then Bombay) through Sindwa
Ghats, and Chennai (then Madras) in the south, as well asOotacamund and Bangalore was started in
November 1853. William O'Shaughnessy, who pioneered the telegraph and telephone in India,
belonged to the Public Works Department, and worked towards the development of telecom
throughout this period. A separate department was opened in 1854 when telegraph facilities were
opened to the public.

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-
Indian Telephone Company Ltd. approached the Government of India to establishtelephone
exchanges in India. The permission was refused on the grounds that the establishment of telephones
was a Government monopoly and that the Government itself would undertake the work. In 1881, the

18
Government later reversed its earlier decision and a licence was granted to the Oriental Telephone
Company Limited of England for opening telephone exchanges
at Kolkata, Mumbai, Chennai and Ahmedabad and the first formal telephone service was established
in the country. On 28 January 1882, Major E. Baring, Member of the Governor General of India's
Council declared open the Telephone Exchanges in Kolkata, Bombay and Chennai. The exchange in
Kolkata named the "Central Exchange" had a total of 93 subscribers in its early stage. Later that year,
Mumbai also witnessed the opening of a telephone exchange.

Further developments and milestones

 Pre-1902 – Cable telegraph

 1902 – First wireless telegraph station established between Sagar Island and Sandhead.
 1907 – First Central Battery of telephones introduced in Kanpur.
 1913–1914 – First Automatic Exchange installed in Shimla.
 1927 – Radio-telegraph system between the UK and India, with Imperial Wireless
Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging
greetings with King George V.
 1933 – Radiotelephone system inaugurated between the UK and India.
 1953 – 12 channel carrier system introduced.
 1960 – First subscriber trunk dialling route commissioned between Lucknow and Kanpur.
 1975 – First PCM system commissioned between Mumbai City and Andheri telephone
exchanges.
 1976 – First digital microwave junction.
 1979 – First optical fibre system for local junction commissioned at Pune.
 1980 – First satellite earth station for domestic communications established
at Sikandarabad, U.P..
 1983 – First analogue Stored Program Control exchange for trunk lines commissioned at
Mumbai.
 1984 – C-DOT established for indigenous development and production of digital exchanges.
 1995 – First mobile telephone service started on non-commercial basis on 15 August 1995
in Delhi.
 1995 – Internet Introduced in India starting with Mumbai, Delhi, Calcutta, Chennai and Pune
on 15 August 1995

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Development of Broadcasting: Radio broadcasting was initiated in 1927 but became state
responsibility only in 1930. In 1937 it was given the name All India Radio and since 1957 it has been
called Akashvani. Limited duration of television programming began in 1959, and complete
broadcasting followed in 1965. The Ministry of Information and Broadcasting owned and maintained
the audio-visual apparatus—including the television channel Doordarshan—in the country prior to
the economic reforms of 1991. In 1997, an autonomous body was established in the name of Prasar
Bharti to take care of the public service broadcasting under the Prasar Bharti Act. All India Radio and
Doordarshan, which earlier were working as media units under the Ministry of I&B became
constituents of the body.

Pre-liberalization statistics: While all the major cities and towns in the country were linked with
telephones during the Britishperiod, the total number of telephones in 1948 numbered only around
80,000. Post independence, growth remained slow because the telephone was seen more as a status
symbol rather than being an instrument of utility. The number of telephones grew leisurely to
980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were
initiated in the country.

Liberalization and privatization

Liberalization of Indian telecommunication industry started in 1981 when Prime Minister Indira
Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom
Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down
because of political opposition. Attempts to liberalize the telecommunication industry were
continued by the following government under the prime-minister-ship of Rajiv Gandhi. He
invited Sam Pitroda, a US based Non-resident Indian NRI and a former Rockwell
International executive to set up a Center for Development of Telematics(C-DOT) which
manufactured electronic telephone exchanges in India for the first time. Sam Pitroda had a
significant role as a consultant and adviser in the development of telecommunication in India.

In 1985, the Department of Telecom(DoT) was separated from Indian Post & Telecommunication
Department. DoT was responsible for telecom services in entire country until 1986 when Mahanagar
Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were carved out of
DoT to run the telecom services of metro cities(Delhi and Mumbai) and international long distance
operations respectively.

The demand for telephones was ever increasing and in 1990s Indian government was under
increasing pressure to open up the telecom sector for private investment as a part of Liberalisation-

20
Privatization-Globalization policies that the government had to accept to overcome the severe fiscal
crisis and resultant balance of payments issue in 1991. Consequently, private investment in the sector
of Value Added Services (VAS) was allowed and cellular telecom sector were opened up for
competition from private investments. It was during this period that the Narsimha Rao-led
government introduced the National Telecommunications policy (NTP) in 1994 which brought
changes in the following areas: ownership, service and regulation of telecommunications
infrastructure. The policy introduced the concept of telecommunication for all and it's vision was to
expand the telecommunication facilities to all the villages in India. [18] Liberalization in the basic
telecom sector was also envisaged in this policy.[19] They were also successful in establishing joint
ventures between state owned telecom companies and international players. Foreign firms were
eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and
not policy making.

During this period, the World Bank and ITU had advised the Indian Government to liberalise long
distance services to release the monopoly of the state owned DoT and VSNL and to enable
competition in the long distance carrier business which would help reduce tariff's and better the
economy of the country. The Rao run government instead liberalised the local services, taking the
opposite political parties into confidence and assuring foreign involvement in the long distance
business after 5 years. The country was divided into 20 telecommunication circles for basic
telephony and 18 circles for mobile services. These circles were divided into category A, B and C
depending on the value of the revenue in each circle. The government threw open the bids to one
private company per circle along with government owned DoT per circle. For cellular service two
service providers were allowed per circle and a 15 years license was given to each provider. During
all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and
other labour unions, but they managed to keep away from all the hurdles.[15]

In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which reduced the
interference of Government in deciding tariffs and policy making. The political powers changed in
1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms
and introduced better liberalisation policies. The government corporatised the operations wing of
DoT on 1 October 2000 and named it as Department of Telecommunication Services (DTS) which
was later named as Bharat Sanchar Nigam Limited (BSNL). The proposal of raising the stake of
foreign investors from 49% to 74% was rejected by the opposite political parties and leftist thinkers.
Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the

21
government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private
enterprises. TATA finally took 25% stake in VSNL.

This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After
March 2000, the government became more liberal in making policies and issuing licenses to private
operators. The government further reduced license fees forcellular service providers and increased
the allowable stake to 74% for foreign companies. Because of all these factors, the service fees
finally reduced and the call costs were cut greatly enabling every common middle-class family in
India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the real
potential for growth of the Indian mobile market. Many private operators, such as Reliance
Communications, Tata Indicom, Vodafone, Loop Mobile, Airtel, Idea etc., successfully entered the
high potential Indian telecom market.

In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million,
which represented a nearly 50% growth when compared with previous year. As the unbranded
Chinese cell phones which do not have International Mobile Equipment Identity (IMEI) numbers
pose a serious security risk to the country, Mobile network operators therefore planned to suspend
the usage of around 30 million mobile phones (about 8 % of all mobiles in the country) by 30 April.
5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the
total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number of
proactive initiatives taken by regulators and licensors, the total number of mobile subscribers has
increased rapidly to over 929 million subscribers as of May 2012.

India has opted for the use of both the GSM (global system for mobile communications) and CDMA
(code-division multiple access)technologies in the mobile sector. In addition to landline and mobile
phones, some of the companies also provide the WLL service. The mobile tariffs in India have also
become lowest in the world. A new mobile connection can be activated with a monthly commitment
of US$0.15 only. In 2005 alone additions increased to around 2 million per month in 2003–04 and
2004–05.

Sectors

Major sectors of telecommunication industry in India are telephony, internet and broadcasting. The
primary regulator of telecommunications in India is the Telecom Regulatory Authority of
India (TRAI). It regulates all of the segments mentioned below.

22
Telephony

Market share of major operators in India as on 29 February 2012

Market share of major operators in India as on 29 February 2012

The telephony segment is dominated by private-sector and two state-run businesses. Most companies
were formed by a recent revolution and restructuring launched within a decade, directed by Ministry
of Communications and IT, Department of Telecommunications and Minister of Finance. Since then,
most companies gained 2G,3G and 4G licenses and engaged fixed-line, mobile and internet business
in India. On landlines, intra-circle calls are considered local calls while inter-circle are considered
long distance calls. Foreign Direct Investment policy which increased the foreign ownership cap
from 49% to 74%. Currently Government is working to integrate the whole country in one telecom
circle. For long distance calls, the area code prefixed with a zero is dialled first which is then
followed by the number (i.e. To call Delhi, 011 would be dialled first followed by the phone
number). For international calls, "00" must be dialled first followed by the country code, area
code and local phone number. The country code for India is 91. Several international fibre-optic
links include those to Japan, South Korea, Hong Kong, Russia, and Germany. Some major telecom
operators in India include Airtel, Vodafone, Idea, Aircel, BSNL, MTNL, Reliance Communications,
TATA Teleservices, Infotel, MTS, Uninor, TATA DoCoMo, Videocon, Augere, Tikona Digital.

23
 Fixed Telephony

Until the New Telecom Policy was announced in 1999, only the Government-
ownedBSNL and MTNL were allowed to provide land-line phone services through copper wire in
India with MTNL operating in Delhi and Mumbai and BSNL servicing all other areas of the country.
Due to the rapid growth of the cellular phone industry in India, landlines are facing stiff competition
from cellular operators. This has forced land-line service providers to become more efficient and
improve their quality of service. Land-line connections are now also available on demand, even in
high density urban areas. India has over 31 million main line customers.

Mobile Telephony

See also: List of mobile network operators of India, List of countries by number of mobile phones in
use, and List of mobile network operators

Typical signboards of STD booths (kiosks from where STD calls can be made) and internet kiosks in
India

AIR Radio Tower

In August 1995, Chief Minister of West Bengal, Shri Jyoti Basu ushered in the cellphone revolution
in India by making the first call to Union Telecom Minister Sukhram. [24] Sixteen years later 4th
generation services were launched in Kolkata.[25]

With a subscriber base of more than 929 million, the Mobile telecommunications system in India is
the second largest in the world and it was thrown open to private players in the 1990s. GSM was
comfortably maintaining its position as the dominant mobile technology with 80% of the mobile
subscriber market, but CDMA seemed to have stabilised its market share at 20% for the time being.
By May 2012 the country had 929 million mobile subscribers, up from 350 million just 40 months
earlier. The mobile market was continuing to expand at an annual rate in excess of 40% coming into
2010.

24
 Wireline subscriber base Wireless subscriber base in Teledensity (May
Telecom circle
in million(May 2012) million(May 2012) 2012)

Andhra Pradesh 2.33 66.6 80.46

Assam 0.20 14.6 47.7

Bihar & Jharkhand 0.56 62.97 48.37

Delhi 2.9 42.95 239.91

Gujarat & Daman & Diu 1.82 54.32 92.56

Haryana 0.59 23.00 90.86

Himachal Pradesh 0.30 7.41 112.29

Jammu and Kashmir 0.20 6.57 56.92

Karnataka 2.48 56.63 98.22

Kerala & Lakshadweep 3.18 34.51 107.85

Kolkata 1.18 25.25 Not available*

Madhya Pradesh &

1.13 53.30 55.38
Chhattisgarh

Maharashtra & Goa

2.64 71.00 96.71 *
(excluding Mumbai )

25
 Wireline subscriber base Wireless subscriber base in Teledensity (May
Telecom circle
in million(May 2012) million(May 2012) 2012)

Mumbai* 3.0 35.93 Not available *

North East ^** 0.25 8.76 64.74

Orissa 0.40 26.27 64.73

Punjab 1.44 31.17 110.22

Rajastan 1.14 49.52 73.26

Tamil Nadu(including
3.16 78.96 118.29
Chennai since 2005)[30]

Uttar Pradesh(East) 1.20 77.74 62.65(Combined)*

Uttar Pradesh(West) &

0.79 55.12 62.65(Combined)*
Uttarakhand

West Bengal(excluding
***
0.62 46.79 80.56 *
Kolkata)

Internet

Main articles: List of Internet users by country and List of countries by number of broadband
Internet subscriptions

The history of internet in India started with launch of internet services by VSNL on 15 August 1995,
the 48th anniversary of Indian independence. They were able to add about 10,000 internet users with
in 6 months.[31] However for the next 10 years internet experience in the country remained less
attractive with narrow-band connections having speed less than 56 kbit/s (Dial-Up). In 2004,
Government formulated it's Broadband policy which defined the broadband as an always-on internet

26
connection with download speed of 256 kbit/s or above.[32] From 2005 onward the growth of
broadband sector in the country attained acceleration, but remained below the growth estimates of
government and related agencies due to the resource issues in last-mile access which depended on
wired-line technologies predominantly. This bottleneck was removed in 2010 when government
auctioned the 3G spectrum followed by an equally high profile auction of 4G spectrum that set the
scene for a competitive and invigorated wireless broadband market. Now internet access in India is
provided by both public and private companies using a variety of technologies and media including
Dial-Up(PSTN), xDSL, Coaxial Cables, Ethernet, FTTH, ISDN, HSDPA (3G), WiFi, WiMAX etc. at
a wide range of speeds and costs. The country has the world's third largest Internet users with over
121 million users (of whom 59% who only access the internet via mobile devices) as of December
2011.[33]

As of December 2011, total Internet connections stood at 22.39 million. [2] with estimated users
exceeding 121 million. The number of broadband users as of July 2012 is 14.68 million.
[34]
Cumulative Annual Growth rate(CAGR) of the broadband during the five year period between
2005 and 2010 was about 117 per cent.[32] Among the technologies, DSL, whilst holding slightly
more than 75% of the local broadband market, was steadily losing market share to other non-DSL
broadband platforms, especially to wireless broadband platforms.

There are 155 Internet Service Providers (ISPs) as of February 2012, which offer broadband services
in India. Public sector companies BSNL and MTNL dominates the market with a share of 64.8 and
7.6 percent respectively while from the private sector Bharti leads with a share of 10 per cent.
[35]
Cyber Cafe remains as the major source of internet access. In 2009, about 37 per cent of the users
access from Cyber cafe, 30 per cent from office and 23 per cent from home. However, the number of
mobile internet users found acceleration from 2009 onward and there were about 274 million such
users at the end of September 2010, though majority belonged to 2G mobile networks. [32] Mobile
internet subscriptions as reported by India's TRAI in Mar 2011 increased to 381 million.

One of the major issue, the internet segment facing is the lower average bandwidth of broadband
connections compared to that of developed countries. According to 2007 statistics, the average
download speed in India hovered at about 256 kbit/s, the minimum speed set by TRAI, whereas the
international average was 5.6 Mbit/s during the same period. In order to attend this infrastructure
issue the government declared 2007 as "the year of broadband". [36][37] To compete with international
standards of defining broadband speed the Indian Government has taken aggressive step of
proposing the $13 billion national broadband network to connect all cities, towns and villages with a
population of more than 500 in two phases targeted for completion by 2012 and 2013. The network
27
is estimated to handle speed up to 10 Mbit/s in 63 metropolitan areas and 4 Mbit/s in additional 352
cities. Also, the Internet penetration in India is one of the lowest in the world and only accounts for
8.4% of the population compared to OECDcounties, where average penetration rate is over 50%.[6][38]
[39]
Another issue reported from this sector is the digital divide of the growth story biased in favour of
urban areas; according to 2010 statistics, more than 75 per cent of the broadband connections in the
country are in top 30 cities.[32] Regulators have tried to boost the growth of broadband in rural areas
by promoting higher investment in rural infrastructure and subsidized tariff for rural subscribers
under Universal service obligation scheme of the Indian government.

Broadcasting

Main articles: Media of India, Television in India, and List of Indian television stations

INSAT-1B satellite: Broadcasting sector in India is highly dependent on INSAT system.

Television broadcasting began in India in 1959 by Doordarshan, a state run medium of

communication, and had slow expansion for more than two decades. [40] The policy reforms of the
government in 1990s attracted private initiatives in this sector, and since then, satellite television has
increasingly shaped popular culture and Indian society. However, still, only the government
owned Doordarshan has the license for terrestrial television broadcast. Private companies reach the
public using satellite channels; bothcable television as well as DTH has obtained a wide subscriber
base in India. In 2012, India had about 148 million TV homes of which 126 million has access to
cable and satellite services.[41]

28
Following the economic reforms in 1990s, satellite television channels from around the world—
BBC, CNN, CNBC, and other private television channels gained a foothold in the country. [9] There
are no regulations to control the ownership of satellite dish antennas and also for operating cable
television systems in India, which in turn has helped for an impressive growth in the viewership. The
growth in the number of satellite channels was triggered by corporate business houses such as Star
TV group and Zee TV. Initially restricted to music and entertainment channels, viewership grew,
giving rise to several channels in regional languages, especiallyHindi. The main news channels
available were CNN and BBC World. In the late 1990s, many current affairs and news channels
sprouted, becoming immensely popular because of the alternative viewpoint they offered compared
to Doordarshan. Some of the notable ones are Aaj Tak (run by the India Today group) and STAR
News, CNN-IBN, Times Now, initially run by the NDTV group and their lead anchor, Prannoy
Roy (NDTV now has its own channels, NDTV 24x7, NDTV Profit and NDTV India). Over the
years, Doordarshan services also have grown from a single national channel to six national and
eleven regional channels. Nonetheless, it has lost the leadership in market, though it underwent many
phases of modernization in order to contain tough competition from private channels.[9]

Today, television is the most penetrative media in India with industry estimates indicating that there
are over 554 million TV consumers, 462 million with satellite connections, compared to other forms
of mass media such as radio or internet. [42] Government of India has used the popularity of TV and
radio among rural people for the implementation of many social-programmes including that of mass-
education. On 16 November 2006, the Government of India released the community radio policy
which allowed agricultural centres, educational institutions and civil society organisations to apply
for community based FM broadcasting license. Community Radio is allowed 100 Watt Effective
Radiated Power (ERP) with a maximum tower height of 30 meters. The license is valid for five years
and one organisation can only get one license, which is non-transferable and to be used for
community development purposes.

29
 .CHAPTER – IV

COMPANY PROFILE

30
31
INTRODUCTION ABOUT US (OVER VIEW OF THE COMPANY)

Bharti Airtel
Bharti Airtel Limited is a leading integrated telecommunications company with operations in
20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks
amongst the top 5 mobile service providers globally in terms of subscribers. In India, the
company's product offerings include 2G, 3G and 4G services, fixed line, high speed
broadband through DSL, IPTV, DTH, enterprise services including national & international
long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile
services. Bharti Airtel had over 246 million customers across its operations at the end of
February 2012.

Group structure

32
HIGHLIGHTS
 Bharti Airtel and MERCEDES AMG PETRONAS announce Race Partnership for
2012 Formula One Airtel Indian Grand Prix
 Bharti Airtel launches Cloud Enablement Platform powered by HP
 Bharti Airtel bags Adam Smith Award 2012 for Highly Commended “Best in Class
Benchmarking”
 Airtel Rising Stars' to bring alive young India's soccer dreams
 Bharti Airtel to Observe Silent period from 30 June 2012
 Airtel brings the 4G revolution to Bengaluru

Business Divisions
Mobile Services
Bharti Airtel offers GSM mobile services in all the 22-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.
Telemedia Services
The group offers high-speed broadband with the best in class network. With fixed line
services in 87 cities, we help you stay in touch with your friends & family and keep you
updated round the clock.
Enterprise Services
Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier
customers. This division comprises of the Carrier and Corporate business unit. Enterprise
Services is regarded as the trusted communications partner to India's leading organizations,
helping them to meet the challenges of growth.
Digital TV Services
Discover the magical experience of digital enterainment with Airtel. From DVD quality
picture and sound, the best and widest variety of channels and programmes to the best on-
demand content on Airtel Live, your TV viewing experience change forever with digital TV
from Airtel!

33
Mission & vision
Mission
"A spirit charged with energy, creativity and a team driven "to seize the day" with an
ambition to become the most admired telecom service provider globally".
We will meet the mobile communication needs of our customers through
 Error Free Service Delivery
 Innovative Products and Services
 Cost Efficiency and
 Unified Messaging Solutions

Vision
By 2015 airtel will be the most loved brand, enriching the lives of millions.
" Enriching lives means putting the customer at the heart of everything we do. We will meet
their needs based on our deep understanding of their ambitions, wherever they are. By having
this focus we will enrich our own lives and those of our other key stakeholders. Only then
will we be thought of as exciting, innovation, on their side and a truly world class company."

Promoters (Hint :- CEO, Directors)

34
BOARD OF DIRECTORS
Sunil Bharti Mittal Chairman & Managing Director
Rajan Bharti Mittal Vice Chairman & Managing Director
Rakesh Bharti Mittal Vice-Chairman & Managing Director
Manoj Kohli Joint Managing Director & CEO
Deputy Group CEO & Managing
Akhil Gupta
Director
Ajay Lal Independent Director
N Kumar Independent Director
Pulak Chandan Prasad Independent director
Nikesh Arora Independent Director
Craig Ehrlich Independent Director
Lord Evan Mervyn Davies Independent Director
Tsun Yan Hsieh Independent Director
H E Salim Ahmed Salim Independent Director
Chua Sock Koong Non-executive director
Tan Yong Choo Non-executive Director
Hui Weng Cheong Non-executive Director
Mukesh Bhavnani Company Secretary

CORPORATE STRUCTURE

35
MANAGEMENT STRUCTURE

36
37
Fact Sheet (Milestones)
Name
Bharti Airtel Limited.
Business Description
We are one of the world's leading providers of telecommunication services with significant
presence in India, operations spread over 17 countries of Africa, Sri Lanka and Bangladesh.
Our bouquet of services include telecommunication services under wireless and fixed line
technology, integrated suite of telecom solutions to our enterprise customers and providing
long distance connectivity both nationally and internationally.
We also offer Digital TV and IPTV Services. All these services are rendered under a unified
brand "airtel". The company also deploys, owns and manages passive infrastructure
pertaining to telecom operations through its subsidiary and joint venture entity.
Established
July 07, 1995, as a Public Limited Company
ISIN
INE397D01024
Proportionate Revenue
Rs. 193,501 million (ended June 30, 2012-Audited)
Rs. 169,749 million ( ended June 30, 2011-Audited)
As per IFRS Accounts
Proportionate EBITDA
Rs. 58,487 million ( ended June 30, 2012 - Audited)
Rs. 57,058 million ( ended June 30, 2011- Audited)
As per IFRS Accounts
Shares in issue
3,797,530,096 as at June 30, 2012
Listings
Bombay Stock Exchange Limited (BSE)
National Stock Exchange of India Limited (NSE)
Stock exchange symbol
NSE – BHARTIARTL
BSE – 532454

38
Market Capitalisation

Customer Base
India & South Asia: 194,183,000
GSM mobile, 3,272,000 ,Telemedia customers and 7,400,000 Digital TV Services
(status as on June 30, 2012)
Africa: 55,855,000 GSM mobile customers.
(status as on June 30, 2012)

39
Awards & Recognition
2010-11
 Airtel has won the ‘Most Preferred Cellular Service Provider Brand’ award at the
CNBC Awaaz Consumer Awards in Mumbai. This is 6th year in a row that Airtel has
won the award in this category. This year, the awards were based on an exhaustive
consumer survey done by The Nielsen Company. Over 3,000 consumers, spanning 19
cities and 16 states in India, rated brands across different categories to choose brands
which delivered true value for money.
 Bharti Airtel has received the prestigious Businessworld-FICCI-SEDF Corporate
Social Responsibility Award 2009-2010. The FICCI Socio Economic Development
Foundation (FICCI-SEDF) and Businessworld CSR award was instituted in 1999 to
recognize exemplary responsible business practices by the Indian industry.

2009-10
 Bharti Airtel rated as India’s Best Enterprise Connectivity Provider for 2009 at the
Annual Users’ Choice Awards instituted by PC Quest.
 Bharti Airtel has been recognized as the Best Global Wholesale Carrier for 2009 at the
Telecoms World Awards Middle East by Terrapin.
 Airtel was rated as the ‘Strongest Brand’ in the Economic Times Brand Finance Brand
Power Rating 2009. It is the only Corporate Brand to be awarded the AAA rating
 Sunil Bharti Mittal conferred with the Lal Bahadur Shastri National Award for
Excellence in Public Administration, Academics and Management.
 Airtel ranked second in the Economic Times-Brand Equity Most Trusted Brand
Survey 2009.
 Bharti Airtel ranked India’s second most valuable company, by Business Today in
2009.
 Bharti Airtel listed in Forbes Asia’s Fabulous 50 companies, 2009 on number sixth
position.
 Bharti Airtel was recognized as the ‘Service Provider of the Year’ and ‘Wireless
Service Provider of the Year’ at the Frost & Sullivan Asia Pacific ICT Awards 2009.
 Bharti Airtel bagged the Best Carrier India Award and the Ovum Telco-
Transformation Award at the Telecom Asia Awards 2009.
 Bharti Airtel was ranked sixth among the top 100 best performing technology
companies in the world, compiled by BusinessWeek for the year 2009. The company
is placed ahead of global technology leaders like Apple (19), Microsoft (22) and
Google (37) in this exclusive list.

40
  Sunil Mittal received the Madras Management Association (MMA) Business
Leadership Award for 2008-09 for revolutionising Indian telecom.
 Bharti Airtel was selected as one of the top 10 winners of the IDC Enterprise
Innovation IT Awards 2009 across APAC region for its BSS Transformation Project.
 Sunil Mittal was awarded the Global Economy Prize by The Kiel Institute (Germany).
 Sunil Mittal was conferred with the degree of Doctor of Laws Honoris Causa by the
University of Leeds, UK.
 Bharti Airtel received the ‘Best Content Service’ Award for the Airtel-IFFCO Farmer
Information Dissemination Platform at the World Communications Awards in
London.
 Bharti Airtel has been recognized as the Best Global Wholesale Carrier for 2009 at the
Telecoms World Awards Middle East. Telecoms World is one of the flagship annual
awards by Terrapin, one of the leading business media organizations for international
telecom carriers and service providers.
 Bharti Airtel’s low cost computing device Airtel Net PC was recognized by Hindustan
Times as one of the ‘Top 9 Best Tech Products of 2009’.
 Bharti Airtel has been ranked among six best performing technology companies in the
world by Business Week. Bharti Airtel was awarded the Most Preferred Cellular
Service Provider Award at the CNBC Awaaz Consumer Awards 2009.
 Bharti Airtel has been awarded the NDTV Profit Business Leadership Award 2009 in
the Telecom Sector. NDTV Profit Business Leadership Awards have been instituted to
award organizational excellence. The awards promise to acknowledge the best, the
brightest and the most dynamic of Indian organizations that have emerged leaders in
their respective verticals.
 Bharti Airtel bagged top honours in the Voice & Data 100 Survey, winning five of the
Voice & Data Telecom Awards 2009. Bharti Airtel was named the Top Telecom
Services Provider of the Year 2009. Manoj Kohli, CEO and Joint MD of Bharti Airtel,
was named the Voice & Data Telecom Person of the Year 2009. The Awards also
named Bharti Airtel, the Top VSAT Player 2009, the Top NLD Player 2009 and Top
Cellular Services Provider 2009.
 Bharti Airtel has recently won multiple recognitions in the field of Information
Technology such as Spamhaus Group Whitehat Network Star, Security Strategist
Award (Technology Senate 2009), Intelligent Enterprise Award (Technology Senate
2009) & CIO hall of fame.

2008-09

41
 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.

42
Contact us (Hint :- Address Of the company or plant location “Head Office”)
Registered Office
Bharti Airtel Limited
(A Bharti Enterprise)
Bharti Crescent, 1 Nelson Mandela Road,
Vasant Kunj, Phase II,
New Delhi - 110 070
Tel. No.: +91 11 4666 6100
Fax No.: +91 11 4666 6411

43
Latest Financial Information

44
Products of the company (For Marketing Projects with Logo if it is
possible)

 3G
Airtel had about 3 million 3G subscribers as of May 2011. Airtel plans to cover 1,500
cities across 13 circles by the end of March 2012. The company, which has 3G
licences for 13 circles, is also in talks with other service providers to roll out the
services in the remaining 10 circles as part of its roaming offerings
 4G
On 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in
India ended. Airtel paid 33.1436 billion for spectrum in 4 circles: Maharashtra,
Karnataka, Punjab and Kolkata. The company was allocated 20 MHz of BWA
spectrum in 2.3 GHz frequency band.
 Airtel Money
Airtel has started a new mCommerce platform called Airtel Money with collaboration
with Infosys. It is launched on April 5, 2012, in Infosys Campus of bangalore. with
the help of Airtelmoney,users can transfer money,pay bills and other financial
transactions using mobile phone.
 Digital Television
The Digital TV business provides Direct-to-Home (DTH) TV services across India
under the brand name Airtel digital TV. It started services on 9 October 2008 and has
about 32.44 million customers as of August 2010.
 Enterprise Business Solution

45
There are two kind of solutions offered by Airtel. One is GPRS Based Solutions like
mobile applications tools for enterprise, TrackMate, automatic meter reading solutions
etc. and the other is SMS Based Solutions like interactive sms, bulk sms, inbound call
center solutions.

46
 CHAPTER – V

THEORITICAL
BACKGROUND

47
 SALES PROMOTIONAL ACTIVITIES

Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers
does not cease with physical production whatever may be the nature of the product.
the present day marketers are consumer oriented where it is the duty of the
manufacturers to know from where, when ,how and what price the products would
be available. Successful marketing consists in offering the right product of the right
price of the right place (and time) with right promotion.

In course of time, various activities came into vogue designed particularly to

help easy sale of goods. These activities commonly known as promotional Mix. The
marketing communication Mix also called as the “Promotion Mix” consists of four
major tools.

1.Advertising.
2.Sales Promotion
3.Publicity
4.Personal Selling

MARKETING COMMUNICATION PROCESS:

Generally marketing communication is undertake to pass on the message of a
product or sale to the ultimate consumers. Thus, there are three elements in this
process.

IMPORTANCE OF ADVERTISING:
The purpose of advertising is motivating but to sell something a product, a
service or an AIRTEL. The real objective of advertising is effective communication
between producers and consumers. In other words the ultimate purpose all
advertising is “Increased awareness” list of the following specific objectives of
advertising.

48
 To make on immediate AIRTEL
To build primary demand
To introduce a price deal
To inform about a products availability
To increase market share
To help salesman by building on awareness of a product among retailers
To increase the frequency use of a product.
To build overall company image
To build brand recognition

PERSONAL SELLING
The process of selling is ensured by personal selling supposed
by advertising and sales promotion. Of these three methods personal selling
occupies the predominant role mainly because of the personal element involves. It
may be described as a personal source rendered to the community in connection
with marketing of goods. It is a marketing process with which consumers are
personally persuaded to by goods and services offered by a manufacturer. The most
powerful element in the promotional mix is salesman ship, is not something very
new. Even centuraries ago salesman ship was practiced in Greece and Rome.
According to Peter Drucker Cyrus Mecornie was the first man to use modern
technique of selling.

Features :
5. It helps to establish a cordial and obiding relationship between the
organization and its customers.
6. It is a creative art. It creats wants a new.
7. It is a science, in the sense that “One human mind influences another human
mind”.
8. Personal selling imparts knowledge and technical assistance to the consumers.

SALES PROMOTION
49
 Promotion includes all those functions which have to do with the marketing
of a product all other activities designed to increase and expand the market. But it is
clearly distinguished from advertising and personal selling, through basic aim or all
the three is one and the same viz., to increase the volume of sales.

Sales Promotion :
 Contests, Games
 Sweep stakes, Lotteries
 Premiums
 Sampling
 Fairs and Trade shows
 Exhibs
 Demonstrators
 Couponing
 Rebates
 Low interest Financing
 Entertainment
 Trade – in – allowances
 Trade stamps

“Sales promotion in a specific sense, refers to those sales activities that

supplement both personal selling and advertising and co-ordinationate them and
help to make them effective , such as displays, shows and expositions,
demonstrations and other non recurrent selling efforts not in the ordinary routine”.

In a general sense the sales promotion includes “ personal selling, advertising

and supplementary selling activities”.
Evaluation of Sales Promotion :

Two decades ago, there was no agreement among the marketing people that
there was a separate sales promotion function. In those days, promotion was a

50
“share- run to gain a short run good”. The importance of sales promotion is modern
marketing has increased mainly an account of its ability in promoting sales and
preparing the ground for future expansion. The main objectiveof sales promotion is
to attract the prospective buyer towards the product.

PUBLICITY
The publicity is derived as “Any form of commercially significant news about
a product, and institution, a service, or a person published I a space or radio i.e. not
paid for by the sponser”. In short advertisement is paid form of publicity. It is to be
noted here that though the terms ’ADVERTISING ‘ AND ‘ Publicity’ or differences in
the field of marketing, both are used interchangeably.

The media are broadly classified into direct indirect. Direct method of
advertising refers to such methods used by the advertiser with which he could
established a direct contact with the prospects. Most of the media are indirect in
nature EX: Free Publicity, cinema, etc.

Press Publicity :

This remains the most popular method of publicity to day. News papers and
magazines have become a part of cultural and political life of the people. Now press
publicity takes two forms.
(a) News Papers
(b) Magazines
(a) New papers :
The abbreviation for news papers is “ North. East, West, South past and present
event report”. News papers are bought largely for their news value. As such they are
appropriate for announcing new products and new development of existing
products. Because of their frequency of publication, they are also well suited to
opportunity makers, the various advantages may be summed up as follows :

 They reach nook and corner, so their coverage is high.

 High frequency enables speedy preparation and publcation of advertisement.

51
  News papers offer a lot of flexibility. According to the convenience and
necessity of the advertises the shape and size of advertisement could be
changed.

 Advertising in news papers is a cheap method of advertising from the

company point of view.

The news papers advertising sponsor four kinds of advertising

 Classified advertisement EX : House for sale” etc.,

 General advertisement
 Teaser advertisement
 News type advertisement

(b) Magazines :
Another media under press publicity is magazines, and journals. They also offer
good facility because magazines are read leisurely when the reader mentally
prepared to receive the advertisement.

Magaszines are periodicals ( periodicies of publication is regular ) but different

from news papers in two respects. One is that it pre-selects, its readership through
the nature its content: as mentioned above they are read leisurely magazines, as a
group may be subdivided from the point of view of advertisers as follows :

Kinds of out-door publicity :

Rural Advertising :

It refers to posters which are often posted on walls. The size of such poster
would be big and might contain pictures etc. It is often found in cinema advertising.

Advertisment boards :

52
 These advertisement or posters but are kept at certain fixed places especially at
points. Where people frequently assemble bus stages, railway stations etc., offer
good places for this kind of advertising.

Vehicular Advertising :

This refers to moving advertisements. These advertisement on moving vehicle

such as buses and railway trains offer examples of this. This type of advertising has
such a very large circulation and is considered to be very effective.

53
 CHAPTER – VI

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prn2/t1/1901137_676780639052910_444062666_n.jpg

ANALYSIS
SWOT ANALYSIS

54
Table 1 :

FACTORS NO.OF RESPONDENTS PERCENTAGE

EMPLOYEES 15 30%

BUSINESS PERSONNEL 26 52%

PROFESSION 3 6%

STUDENTS 6 12%

TOTAL 50 100%
Graph 1:

Interpretation :According to my survey, it can be seen from the above table

that indicates Employees 15 (30%), Business Personnel 26 (52%), Profession 3 (6%)
and Students 6 (12%), are preferring to purchase AIRTEL.

Table 2:

BAR GRAPH REPRESENTING THE TYPES OF CONSUMERS OF

PURCHASE OF AIRTEL GRAPH -2
55
 FACTORS NO.OF RESPONDENTS PERCENTAGE
FRIENDS 11 22%
ADVERTISEMENTS 10 20%
GOODWILL/FAME 14 28%
PERSONAL CHOICE 15 30%
TOTAL 50 100%

Blue Pie Graph representing influencing factors to purchase

of AIRTEL
Interpretation :As per my survey, the above table reflects that Friends 11
(22%), Advertisements 10 (20%), Goodwill/Fame 14 (28%), Personal Choice 15 (30%)
are the factors influencing to purchase of AIRTEL.

56
The following table indicates the level of satisfaction of consumers towards

the purchase of AIRTEL. Table 3:

NO.OF
ATTRIBUTES PERCENTAGE
RESPONDENTS
VERY GOOD 5 10%
GOOD 20 40%
AVERAGE 19 38%
SATISFACTORY 6 12%
TOTAL 50 100%

PIE EXPLOSION GRAPH REPRESENTING THE LEVEL OF

SATISFACTION OF CONSUMERS IN VIEW OF PRICE Graph 3

57
Interpretation: The following table indicates the level of satisfaction is to good

from consumers towards the purchase of AIRTEL.

Table 4:

Attributes No. of Respondents Percentage

Very Good 10 20%
Good 21 42%
Average 16 32%
Not Satisfied 3 6%
Total 100 100%

THE FLOATING GRAPH REPRESENTING SERVICES OF AIRTEL TO THE

CONSUMERS GRAPH 4:

Interpretation: The following table indicates the services of AIRTEL to the

consumers.

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TABLE: 5

THE BRAND PREFER BY THE CUSTOMER:

S.NO Options No. of respondents Percentage

1. Airtel 30 40
2. BSNL 20 27
3. VODAFONE 15 21
4. IDEA 10 12
Total 75 100
Graph – 5:

Interpretation:
 From the above table it observe red that 40% of respondent’s are welcomed with
the Airtel subscription.
 27% of respondents prefer the BSNL.
 21% of the respondents are preferred to VODAFONE.
 12% of respondents are preferred to IDEA.

TABLE 6:

REASONS FOR PREFENCE OF BRANDS:

SL.NO OPTIONS NO.OF RESPONDENTSPERCENTAGE

1. Quality 26 35

59
 2. Brand name 24 32
3 Tarief 16 21
4 Others 9 12

Total 75 100

Reasons for prefernce of Brand

40 35
35 32
30
25 21
20
15 12
10
5
0
Quality Brand name Tarief Others

Interpretation:

 From the above table we can observe that 35% of respondents select the brand for
quality.
 32% of them prefer due to brand name.
 21% of them due tariff plans.
 12% of them select due to package, schemes etc.
 Most of respondents preferring the quality of the Airtel.

Table 7:
Preference rate of customers for purchasing Airtel Sims
Sl.no Options No. of respondents Percentage
1 Yes 51 68
2 No 24 32
Total 75 100

60
 Graph 7:

Interpretation:

 From the above table we can observe that 68% of respondents are ready to buy
the Airtel sims.
 32% of respondents are saying to buy the Airtel.

 Most of the customers are ready to buy the Airtel.

Table 8:Influencing factors for purchasing Airtel Sim Cards

Sl.no OptionsNo. of respondents
Percentage
1 Advertisement 22 29
2 Dealers 28 38
3 Friends 15 20
4 Family 10 13
Total 75 100

Graph 8

61
 Factors Influencing for purchase of
AIRTEL
38
40
35 29
30
25 20
20 13
15
10
5
0
t

ily
rs

s
en

nd
le

m
em

ea

ie

Fa
Fr
s

D
rti
ve
Ad

Interpretation:

 From the above table it refers that 38% of respondents are influenced through
the Dealers.
 29% of respondents are influenced through the Advertisement
 20% of respondents are influenced through the Friends
 13% of respondents are influenced through Family.

TABLE 9: RATE OF INFLUENCE THROGH ADVERTISEMENT

Sl.no Options No. of respondents percentage

1 Very much influenced 10 13

2 Some what 35 28
3 Not influenced 20 26
4 Not at all 10 13
Total 75 100
Graph 9:

62
Interpretation:

 From the above table determines that 28% of respondents

 Are somewhat influenced.
 26% of respondents were not influenced.
 13% of respondents were Very much influenced.
 13% of respondents were Not at all influenced.
 Most of the respondents are somewhat influenced to buy by Advertisement
effect.

TABLE 10:SATISFACTION LEVEL OF ADVERTISEMENT

Sl.no Options No. of respondents percentage
1 Very much satisfied 10 13
2 Some what satisfied 35 28
3 Not satisfied 20 26
4 Not at all 10 13
Total 75 100
Graph 10 :

63
Interpretation:

 From the above table we can observer that 28%of respondents are Some what
satisfied with Advertisement.
 26% of them are not satisfied with Advertisement
 13% of respondents are very much satisfied.
 13%of them are not at all satisfied.
 Most of the customers are some extent satisfied with Advertisement.

TABLE 11:CUSTOMER OPINION OF MEDIA ON TELECOMMUNICATION

SL.NO Options No. of respondents percentage

1. Electronic media 30 40
2. Print media 10 13
3 Magazines 10 13
4. Hoardings 25 34
Total 75 100
Graph 11 :

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 customer opinion of Media on Telecommunication

50
40
40 34
30
20 13 13
10
0
Electronic Print media Magazines Hoardings
media

Interpretation:

 From the above table it found that 40% of respondents are opined the Electronic

media for Advertising of telecom companys.

 34% of respondents they go for Hoardings.

 13% of respondents prefer Print media.

 13% of respondents prefer the magazines.

 At most of the respondents are preferred to Electronic media

TABLE 12:AIRTEL ADVERTISING THROUGH OUTDOOR MEDIA

SL.NO Options No. of respondents Percentage

1. Yes 54 68
2. No 21 32
Total 75 100

65
 

Interpretation:
 From the above table illustrates the preference of the customers for
Outdoor Advertising of Airtel .
 68% of respondents answered YES.
 Whereas 32% said NO for Out door Media.
 It shows us that most of the customers are preferring the Outdoor Media.

Table 13:SUFFICENCY RATE OF ADVERTISING THROUGH OUTDOOR

Sl.no Options No. of respondents Percentage

1. Very much 28 37

2. Some what 22 29
3. Not Sufficient 14 19
4. Not At all 11 15
Total 75 100

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Most of the respondents are agreed with the Outdoor Media.

Interpretation:
 From the above table it informs that 37% of respondents feel that is very much
Sufficient to do Advertise through Outdoor Media.
 29% of respondents are feel it is Some what Sufficient.
 19% of respondents feel that is Not sufficient.
 15% of respondents feel it is Not at all sufficient for Outdoor media.

TABLE 14:INFLUENCE THROUGH THE OUTDOOR MEDIA

Sl.no Opinion No. of respondents Percentage
1. Very much 32 43
2. Some what 21 28
3. Not influence 12 16
4. Not at all 10 13
Total 75 100

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 

Interpretation:
 From the above table it is observed that 43% of respondents are very much
influenced through outdoor media.
 28% of respondents are somewhat influenced.
 16% of respondents are not influenced.
 13% of respondents are feeling Not at all influenced by Outdoor media.

TABLE 15:LOCATION OF AIRTEL COMPANY ADVERTISEMENT

Sl.no Options No. of respondents Percentage
1. Hoardings 38 51

68
 2. Adv on walls 21 28
3. Adv on Buses 12 15
4. Others 04 06
Total 75 100

Location of Airtel Company
Advertisement

60 51
50
40
28
30
20 15
10 6
0
Hoardings Adv on wallsAdv on Buses Others

Interpretation:

 From the above table 51% of respondents saw the Advertisement of Airtel
telecom on Hoardings.
 28% of respondents are seen on Walls.
 15% of respondents are saw ion the Buses.
 06% of respondents are saying they saw Advertisement on others like
Magazines, Flex-boards.
 Most of the respondents are going through the advertisement of Airtel by
hoardings

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 CHAPTER 5

FINDINGS, CONCLUSIONS,

AND

SUGGESTIONS

FINDINGS

 Most of the respondents are going through the advertisement of Airtel by

hoardings.
 I observed that 43% of respondents are very much influenced through
outdoor media.

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  37% of respondents feel that is very much Sufficient to do Advertise through
Outdoor Media.
 Most of the customers are some extent satisfied with Advertisement.
 40% of respondent’s are welcomed with the Airtel subscription.

Conclusions

 The company is advertisement is not fair and is not reaching to all people.

 The advertisement is difficult to understand.

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 AIRTEL is not concentrating on the promotional activities for the customers

and for the retailers.

 AIRTEL is not giving gifts for the customers.

 The company is not concentrating on other types of advertising media.

 The package design is not communicative and eye catching, so package

design and color have to blend harmoniously to make the package

communication effective.

 Network is not reaching to rural villages.

 Talk time is very less in Prepaid Cards.

 The company is not conducting road shows so as to get awareness in the

public about the product and services.

 Improve the marketing personnel and they should give full knowledge to the

customers and retailers.

 AIRTEL must improve their personnel selling direct contacting customers to

give awareness of their products.

SUGGESTIONS

 AIRTEL is not giving gifts for the customers.

 The company is not concentrating on other types of advertising media.

72
 The package design should be communicative and eye catching, so package
design and color have to blend harmoniously to make the package
communication effective.

 Network should be expanding to rural villages.

 Talk time must be increased in Prepaid cards.

 Reduce the Tariff rates to increase the market share.

 The company should conduct road shows so as to get awareness in the public
about the product and services.

 Improve the marketing personnel and they should give full knowledge to the
customers and retailers.

73
QUESTIONNAIRE

74
 QUESTIONNAIRE

1. Name:

2. Occupation:
Employee Business Profession Student

3. Address for Communication:

4. Monthly Income (or) Income Level

2000-4000 4000-8000
8000-12000 More than 12000

5. Are you the user of Mobile?

Yes No

6. Mobile Number:

7. If yes which connection you had?

Airtel Others
Relience Idea Hutch

8. If you have Airtel Connection, how are their services?

Very god Good Average Not Satisfied

9. Are you satisfied with Airtel pulse rate

Yes No

10. You are pre-paid customer (or) post –paid customer?

Prepaid Postpaid

11 If postpaid you are satisfied with Airtel rental plans?

Yes No

12. If pre-paid how much your monthly expected recharged amount ?

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13. From available denominations which is your favorite denomination ?
14. Who influenced you to take Airtel connection?
Advertisement Friends/Relatives
Goodwill/Fame Personal Choice

15. What type of promotional activity you preferred in purchasing Airtel?

Advertisement Publicity Sales Promotion Word of Mouth

16. Which of the connection that you most prefer by advertisements?

Airtel Reliance Idea Hutch

17. Specify your level of satisfaction?

Very
Good Average Satisfactory
Good
Maintenance
Price
Performance
After Sales Service

18 . Do you feel whether it is sufficient to do Advertise throw Outdoor.

a)Very much sufficient b)Some what sufficient)Not sufficient d)Not at all.

19. According to you, Will Outdoor Adv Influence the customers?

a) Very much Influence b) Some what Influence c) Not Influence d) Not at all.

20. Do you recall the Advertisement of Airtel, whenever you purchase sim cards?

a) Yes b) No

21. DO you feel that airtel also give Advertisement in Television?

a) Yes b) No

22. Your opinion on AIRTEL and any suggestions on its Advertisement

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BIBLIOGRAPHY

77
 BIBLIOGRAPHY

COMPANY PROFILE ---- www.bharati.com

PRINCIPLES OF MARKETING

MANAGEMENT ---- PHILIP KOTLER

MODERN MANAGEMENT ---- R.S.N.PILLAI

NEWSPAPERS ---- THE HINDU

THE ECONOMIC TIMES

DECCAN CHRONICLE

THE TIMES OF INDIA

Web Site Source

http://en.wikipedia.org/wiki/Communications_in_India

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