Simulations

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Simulation Project Report

Marketing Strategy survey for Airtel

Suggested by- Prof. Mayank Saxena
Submitted by- Aarti Thakur, Ghanshyam Sharma, Pawan Gehlot

Acknowledgement

It’s our great pleasure to express our gratitude and sincere thanks to Prof. Mayank Saxena who guided us in our project work and gave us his valuable time. We also thank to all the persons who provided us information regarding our project and techniques used by Airtel Company for Increase the Sales as a result we could successfully completed the project.

Aarti Thakur
GhanShyam
Pawan Gehlot
Contents

1 Introduction of firm

2 Sales Analysis

3 No of customer

4Population size

5 Sample size

6 Analysis

7 conclusions

8 Recommendations

9 References

Objectives of projects

1 To Analyze the sales progress of Airtel

2 To Analyze the Marketing Strategy of Airtel

3 To find out new opportunities for Airtel

Introduction[i]

India's largest and world's third largest cellular service provider with more than 82 million subscribers –Bharti Airtel is a merger between Bharti Group and Airtel it’s a well know Ned brand in India as well as Asia . Owned by Mr. Sunil Bharti Mittal. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Teliemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital TV. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.
The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s, best direct to home (DTH) service, digital TV in more than 150 cities.

1. 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.

2. Diverse business portfolio- Mr. Sunil Bharti believe and adopt strategy of diversification they always come with new product in new area like mobile, land line, DTH , and broad band.

3. Operations in all 23 circles-In India there are 28 states and Airtel operate or rotate their services in 23 states it’s a big achievement in it self and its also want to cover other remain state .

4. 2nd most trusted service brand in India by ET survey- when ET did survey at that time they found that it’s a most trusted brand of India .After BSNL people trust at Airtel Services.

5. Mr. Mittal awarded by Padama Bhashan in 2007 and GSM Association chairman’s award in 2008
Vision of Airtel

By 2010 Airtel will be the most admired brand in India:

Loved by more customers
Targeted by top talent
Benchmarked by more businesses
Sales –

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Selection of sales force-

They recruited separate department for sales and work of those employee is to get or generate more and more revenue for organization

Training of Sales Force –

After Recruitment they are trained their employee for effective working and in this training period they guided employee to
How, when, where, what .and to whom we they can sale their product

Motivating of sales force –

If because of some reason any employee is not able to do their best performance in that case rather than any action they use motivation as a tool for increasing morale of that employee

Controlling of sales Force –

They also control the sales force because they know the importance of control system in organization

They are using all these four step for decide their sales force and each step they are also Chek they are doing right things or not and if they thing changes are needed than they revised whole process again

That’s why we can see the difference between Airtel sales growth and other challenger and follower

Sales Force Automation-

A sale force automation solution (SFA) is a system that automatically records all the stages in a sales process. This includes a contact management system which tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required

What you get-

Ensures that your sales effort doesn’t get duplicated thereby eliminating the risk of irate customers

Sales lead tracking system creates a list of potential customers or customers of related products, through paid phone lists

Fully integrated in all departments that deal with customer service management

How it benefits you-

For your business: your sales team can approach the market in an organized and efficient manner

For your managers: now monitor the performance of your work force, solve potential problems and make your people more proactive

For your sales teams: now it’s easier to close a deal by keeping a track of your orders, proposals and clients

No of customer[ii]

The Airtel subscriber base according to COAI - Cellular Operator Association of India as of November 2008 was:

• Chennai - 2,011,299
• Delhi - 4,418,296

• Mumbai - 2,718,885

• Kolkata - 2,178,061
• Maharashtra –

• Gujarat - 3,690,661

• Andhra Pradesh - 8,094,328

• Karnataka - 8,995,538

• Tamil Nadu - 5,392,458

• Karalla - 2,013,424

• Punjab - 3,554,406

• Haryana - 1,170,378

• Uttar Pradesh (West) - 2,071,723

• Uttar Pradesh (East) - 5,124,948

• Rajasthan - 6,032,480

• Madhya Pradesh - 4,040,871

• West Bengal & Andaman and NICO bar - 3,004,647

• Himachal Pradesh - 887,594

• Bihar - 6,419,357

• Orissa - 2,496,123

• Assam - 1,241,186
• North Eastern States - 766,763
• Jammu & Kashmir - 1,391,606
The total is 78,908,993 or 31.65% of the total 249,349,436 GSM mobile connections in India till November 2008. In 2009 Airtel is launched in Srilanka also
Bharti Airtel is one of the leading alternative providers of telecommunications services in India. Through its subsidiaries, the company (formerly Bharti Tele-Ventures) operates through three divisions: mobile, broadband and telephone, and enterprise services. The enterprise services group includes units for both long-distance carriers and for corporate clients. Bharti Airtel has nearly 67 million total customers -- approximately more than 64 million GSM mobile and almost 3 million fixed-line customers. The company was founded as Bharti Tele-Ventures in 1995 and changed its name in early 2006 to Bharti Airtel Limited. It is a unit of Indian conglomerate Bharti Enterprises[iii].

SWOT Analysis
Strengths
1. Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers.
2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.
3. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.
Weaknesses
1. An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.
2. Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.
3. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.
Opportunities
1. The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google.
2. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.
3. Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns.
4. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.
5. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.
Threats
1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.
2. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.
3. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.
Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.

The General Electric Business Screen analysis-

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Porter’s Generic Strategies-

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Ansoff's Product/Market Matrix
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Competitive Position/industry Matrix-

Conclusion
Market Share- Airtel has the highest market share among all the market players
Thus, the score allotted is -0.06
Product Quality- August 7, 2008: Bharti Airtel adjudged the 'Best Cellular Service Provider' and 'Best Broadband Service Provider' at the 2008 V&D 100 Awards.
May 26, 2008: Airtel was honoured with the prestigious 'Wireless Service Provider of the Year' award at the 2008 Frost & Sullivan Asia Pacific ICT Awards. Score allotted is 0.23
Product life Cycle- The overall tele-density has increased to 31.5% in October 2008.Market has huge potential for penetration.
Score allotted is -0.26
Customer Loyalty- June 11, 2008: Airtel voted the 2nd Most Trusted Service Brand in the Annual Economic Times-Brand Equity, Most Trusted Brands survey RCOM is slightly better in application of funds
Airtel wins the Platinum Trusted Brand Award in the Mobile Service provider category in the Reader's Digest Asia Trusted Brands Survey.[iv]

Recommendations-
There are following suggestions for marketing strategies for airtel-
1. Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration, allowing it to implement and deliver new services rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships.
2. Improved cross-selling and targeting and a more seamless, efficient total customer experience through end-to-end integration of customer-facing processes.
3. Optimization of business processes and infrastructure, through flexible, standardized integration framework, is needed.
4. Outsourcing of technology will provide Bharti Airtel to focus resources on growing the business.
5. Flexible pricing model will enable Bharti Airtel to avoid major increases in capital expenditures.
6. Better network services would be giving competitive benefit to the Bharti Airtel.

Thanks
References-

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[i] http://www.airtel.in/wps/wcm/connect/airtel.in/airtel.in/Home
[ii] http://en.wikipedia.org/wiki/Airtel
[iii] http://www-935.ibm.com/services/us/cio/ads/outsourcing/assets/pdf/bharti_airtel_case_study.pdf
[iv] http://www.oppapers.com/essays/Bharti-Airtel-Space-Analysis/190512

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Sales
Manager

Selection of
Sales Force

Training of Sales Force

Motivating
Of sales force

Controlling of
Sales force

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Airtel

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Airtel

Simulations 8 of 10 on the basis of 2565 Review.