ADVERTISING STRATEGY OF BHARTI TELEVENTURES LTD

ADVERTISING STRATEGY OF BHARTI TELEVENTURES LTD Free Online Research Papers This report on Airtel not just give description about the company but it also talks about the various advertising strategy adopted by the company. SWOT analysis of Airtel helps to find out the weak points of the company and to find out the way to overcome this problem. We are in the era of entertainment through mobile handsets. Downloading a ring tone watching your favorite movie of tracking cricket score the list of activity that you can do using your cell phone is endless. To supplement stagnant voice revenues cellular operator are now turning to VAS to boost revenues in both data and value added voice service. Airtel has deep rooted presence in the Indian telecom sector through there wide product offerings and excellent distribution network In this report I have tried to analyze the present scenario of Indian telecom sector the real aim of the project is to study the effectiveness and response towards advertisement provided by Airtel but many sub objectives are also included under this project so as to make it comprehensive one. I complement this with the internal study of the companies – history , vision business areas etc to analyze how well poised the company are to complete or rather just exist in this market that is proving itself to be the most competitive in post liberalization Indian economy. CHAPTER-II INTRODUCTION INTRODUCTION 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 agricultural 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 Telemedia Services Enterprise Services. The mobile business provides mobile fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband telephone services in 94 cities. 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. Business Divisions Mobile : 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. Internet: 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. Data connectivity : The group focuses on delivering telecommunications services as an integrated offering including mobile, broadband telephone, national and international long distance and data connectivity services to corporate, small and medium scale enterprises. Fiber cables : The Company compliments its mobile and broadband telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fibre on its national long distance network. For international connectivity to east, it has a submarine cable landing station at. For international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortium along with 15 other global telecom operators. Mobile Prepaid : Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you give, words to every feeling, an expression to every emotion. Postpaid : Life becomes much simpler with your Airtel Postpaid. It gives you the unlimited freedom to reach out to people in your special way. HISTORY Bharti Airtel is one of Indias leading private sector providers of telecommunications services based on an aggregate of 71,777,448 customers as on June 30, 2008, consisting of 69,383,716 GSM mobile and 2,393,732 Bharti Telemedia subscribers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) mobile services, telemedia services (ATS) enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the ATS business group provides broadband telephone services in 94 cities. The enterprise services group has two sub-units carriers (long distance services) and services to corporates. All these services are provided under the Airtel brand. Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE). CHAPTER-III COMPANY PROFILE Fact sheet Name Bharti Airtel Limited. Business Description Provides mobile, telemedia services (fixed line) and enterprise services (carriers services to corporates) Established July 07, 1995, as a Public Limited Company Proportionate Revenue Rs. 270,122 million (year ended March 31, 2008-Audited) Rs. 184,202 million (year ended March 31, 2007-Audited) As per Indian GAAP Accounts Proportionate EBITDA Rs. 114,018 million (year ended March 31, 2008 Audited) Rs. 74,407 million (year ended March 31, 2007 Audited) As per Indian GAAP Accounts Shares in Issue 1,898,020,804 as at June 30, 2008 Listings The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Market Capitalisation Market Capitalisation (as on September 18, 2008) Approx. Rs. 1,443 billion Closing BSE share price = Rs. 760.35 Customer Base 69,383,716 GSM mobile and 2,393,732 telemedia customers (Status as at month ended June 30, 2008) Operational Network Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator . Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is Indias leading private sector provider of telecommunications services based on a strong customer base consisting of approximately 9.03 million total customers which constitute, approximately 8.28 million mobile and approximately 750,000 fixed line customers, as of August 31, 2004. Investor Relations ?Creating value for our customers, employees, investors, partners, vendors and the society at large lies at the root of our fundamental business strategy. Our core principles of trust and transparency have come a long way in helping us develop and nurture long-term relationships with our key stakeholders. Our performance exudes from our belief in and commitment to the telecom sector; and translates into creating innovative exciting opportunities for one and all. Corporate Governance ?Bharti Tele-Ventures Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner, which will ensure sustainable, capital-efficient and long-term growth thereby maximizing value for its shareholders, customers, employees and society at large. Companys policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in letter and spirit for effective Corporate Governance. ?During the financial year 2003-04, your Company has been assigned highest Governance and Value Creation (GVC) rating viz. Level 1 rating by CRISIL, which indicates that the companys capability with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices Board of Directors ?The Board of Directors of the Company has an optimum mix of Executive and Non-Executive Directors, which consists of three Executive and eleven Non-Executive Directors. ?The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive Director and the number of Independent Directors on the Board is more than 50% of the total Board strength. The independence of a Director is determined on the basis that such director does not have any material pecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of a Director. ?The Board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company. Boards Members by Ranking Sunil Bharti Mittal Chairman and Managing Director Rajan Bharti Mittal Director Akhil Gupta Joint Managing Director Rakesh Bharti Mittal Director Chua Sock Koong Director Pulak Chandan Prasad Director Bashir Abdulla Currimjee Director Mauro Sentinelli Director Professor V.S Raju Director O’Sullivan Director Kurt Hellstrom Director N. Kumar Director Ajay Lal Director Francis Heng Director Arun Bharat Ram Director Audit Committee The Audit Committee of the Board deals with all matters relating to financial reporting, internal controls, risk management, related party transactions etc. and reports back to the Board on the matters, which among others, include ?Reviewing the Company’s financial reporting processes and systems. ?Recommending the appointment and removal of statutory auditors, fixation of audit fee and related expenses. ?Reviewing the Company’s financial and risk management policies. ?Reviewing with management the half-yearly and annual financial statements, before submission to the Board, focusing primarily on: ?Changes in accounting policies and practices; ?Major accounting entries, qualifications and accounting issues based on the managements discretion and judgment; ?Compliance with the accounting standards; ?Compliance with the stock exchange and legal requirements, concerning financial statements; ?Any related party transactions; and ?Adequacy and effectiveness of internal audit processes and systems. ?The un-audited/audited quarterly financial results of the Company are also specifically reviewed by the Audit Committee before these are submitted to the Board for approval. Minutes of each Audit Committee meeting are placed before the Board for information. Human Resource (HR)/ Remuneration Committee The Human Resource Committee of the Board discharges the functions of the remuneration committee, along with specifically looking into the following areas: ?Framing policies and compensation packages of top executives; including salary adjustments, incentives, bonuses, promotions, stock options and performance targets. ?Remuneration of Directors ?Strategies for attracting/retaining employees, and employee development programs ?Key issues referred by the Board ESOP Compensation Committee The Compensation Committee of the Board has been constituted in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 for administration and superintendence of Employee Stock Option Plan (ESOP) of the Company. Scope of the Compensation Committee Formulating policies and procedures to ensure that there is no violation of SEBI (Insider Trading Regulations) and (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations by any employee. CHAIRMAN PROFILE Sunil Bharti Mittal Chairman Managing Director Since October 2001 Board director since: July 1995 Age: 49 years Sunil Bharti Mittal is the Chairman Managing Director of Bharti Airtel Ltd. head quartered at New Delhi, India. Sunil Bharti Mittal started his career at a young age of 18 after graduating from Punjab University in India and founded Bharti, with a modest capital, in the year 1976. Today, at 49 he heads a successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40 billion and employing over 30,000 people. Sunil Bharti Mittal is an alumnus of Harvard Business School, MA, USA. Sunil Bharti Mittal has been conferred one of the highest civilian award – Padma Bhushan. Sunil Bharti Mittal has been conferred the degree of Doctor of Science (Honoris Causa) by the G B Pant University of Agriculture Technology. Sunil Bharti Mittal is an Honorary Fellow of â€Å"The Institution of Electronics and Telecommunication Engineers (IETE). OBJECTIVES As set out in the Memorandum of Association of Bharti Tele-Ventures, our main objects are as follows: 1. To promote and establish companies, funds, associations or partnerships for providing telecom networks and/or to run and maintain telecom services like basic/fixed-line services, cellular/mobile services, paging, videotext, voice mail and data systems, private switching network services, transmission network of all types; computer networks i.e. local area network, wide area network, electronic mail, intelligent network, multimedia communication systems or the combinations thereof and for execution of undertakings, works, projects or enterprises in the telecom industry whether of a private or public character or any joint venture with any government or other authority in India or elsewhere and to acquire and dispose of shares/securities in such companies, and funds and interest in such associations or partnerships. 2. To provide telecom networks and to run and maintain telecom services like basic/fixed-line services, cellular/mobile services, paging, videotext, voice mail and data systems, private switching network services, transmission networks of all types, computer networks like local area network, wide area network, electronic mail, intelligent network, multimedia communication systems or combinations thereof. 3. To carry on the business of manufacturers, merchants, dealers, distributors, importers, exporters, buyers, sellers, agents and stockists, and to market, hire, lease, rent out, assemble, alter, install, service, design, research and improve, develop, exchange, maintain, repair, refurnish, store and otherwise deal in any manner in all types of telephone exchanges, telephone instruments -whether corded, cordless, mobile or of any other kind; tele-terminals, fax machines, telegraphs, recording instruments and devices, telephone message/answering machines and devices; dialling machines, trunk dialling barring devices, wireless sets and other wireless communication devices like radio pagers, cellular phones, satellite phones etc; telecom switching equipments of all kinds; telecom transmission equipments of all kinds, test equipments. VISION BY 2010 AIRTEL WILL BE THE MOST ADMIRED BRAND IN INDIA: ?LOVED BY MORE CUSTOMERS. ?TARGETED BY TOP TALENT. ?BENCHMARKED BY MORE BUSINESS. BHARTI’S MISSION To be globally admired for telecom services that delight customers. We will meet global standards for telecom services that delight customers through: Customer Service Focus Empowered Employees Cost Efficiency Unified Messaging Solutions Innovative products and services .Error- free service delivery ACHIEVEMENTS First to launch Cellular service on November 1995. First operator to revolutionaries the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms) in 1995. First to introduce push button phone in India. First to expand its network with the installation for second mobile switching center in April, 1997 and the first to introduce the Intelligent Network Platform First to provide Roaming to its subscribers by forming an association called World 1 Network. First to provide roaming facility in USA. Enjoy the mobile roaming across 38 partner networks above 700 cities Moreover roam across international destinations in 119 countries including USA, Canada, UK etc with 284 partner networks. BHARTI announces aggrement with VODAFONE marking the entry of the Worlds Largest Telecom Operator into India Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for a life insurance joint venture in India Airtel Launches future factory Centres of Innovation to Incubate Pioneering Mobile Applications 16 states, 600 million people. Only Indias leading mobile service offers you the truly freedom-packed Prepaid! It is also the first company to export its products to the USA. BHARTI announces agreement with VODAFONE marking the entry of the Worlds Largest Telecom Operator into India Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.) to acquire around 10% in Bharti Tele-Ventures Ltd. Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures Ltd. to unassailable leadership position in India The largest single foreign investment ever in the history of India The largest investment in the Indian telecom sector Bharti establishes its supremacy in the Indian telecom market, having attracted Asia’s best – SingTel, and now world’s best – Vodafone. Bharti set to gain global leadership in the telecom sector Bharti Enterprises continues to hold shareholding and management control in Bharti Tele-Ventures. AirTel: Appropriating the value of expression Over the last couple of years, the market has grown considerably, with deeper penetration and wider usage of voice and data services, accompanied by much higher competitive intensity, Atul Bindal, chief marketing officer, Bharti TeleVentures, expands on this. In this context, differentiating merely on network, coverage and SMS is just not enough. You need to go beyond all the rational identifiers which are prerequisites in any case and connect at a deeper level. We needed a strong differentiator in an increasingly commoditized and crowded market. We found this differentiator in a core human truth that defines our category which is that there are moments when you need to make your point, when you need to be heard. Expressing and communicating are perhaps two of the most basic emotions. AirTel enables you to make your point in the most expressive way, anytime, anywhere. The campaign is towards owning this through Express yourself. We believe Express yourself allows us to connect at a deeper level and create a long-term platform for the brand. For AirTel, the challenge also lay in presenting a unified face to the consumer. This assumes significance when viewed in the light of the companys pre- and post-paid communication, which, in the past, had been treated very differently. Brand image, as a result, was being driven in two different dimensions. Brand AirTel is a category leader straddling completely different market segments such as consumer, business and corporate, as well as different voice, data and payment platforms, says Bindal. Express yourself enables the brand to unify and connect across the entire base of our existing and prospective customers. One of the most obvious benefits of owning a property such as candid expression (and Express yourself) is the expansive nature of the thought. The moment you have as broad a canvas as Express yourself, it becomes easy for anyone working on the brand to come up with new ideas and executions. Thats what makes a good campaign idea, observes Rediffs Prashant Godbole, who, along with creative partner Zarvan Patel, conceived the campaign. This is just the proverbial tip of the iceberg, Patel adds. We will be taking the idea forward in many different ways in the forthcoming work, he informs. Patel also credits his creative team for fleshing out the idea. Awards and Recognitions 2007-2008 ? Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the Outstanding Company of the year, 2007 ? Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007 ? Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List ? Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B. Pant University 2006-2007 ? Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007 ? Bharti Airtel awarded the prestigious QCI-DL Shah Award on Economics of Quality ? Sunil B. Mittal chosen for this year’s Padma Bhushan Awards ? Bharti Airtel is once again chosen for India’s most Customer Responsive Telecom Company Award ? Triple success for Akhil Gupta at CFO Awards for India ? Bharti Airtel is amongst India’s Most Admired Knowledge Enterprises in 2006 ? Sunil Bharti Mittal receives ‘The Honorary Fellowship’ fromIETE ? Bharti Airtel draws Top Honors at the MIS Asia IT Excellence Awards 2006 ? Bharti Airtel among the top 10 best performing companies in the world according to Business Week IT 100 list Sunil Bharti Mittal is CEO of the Year at the Frost Sullivan Asia Pacific ICTAwards 2006 Bharti Airtel bags Wireless Service Provider of the Year andCompetitive Service Provider of the Year Organization Structure As an outcome of a restructuring exercise conducted within the company; a new integrated organizational structure has emerged; with realigned roles, responsibilities and reporting relationships of Bharti’s key team players. With effect from March 01, 2006, this unified management structure of One Airtel will enable continued improvement in the delivery of the Group’s strategic vision. Areas of Operations Delhi Our Delhi network covers a license area that includes the state of Delhi and the neighbouring towns of Faridabad and Gurgaon in the state of Haryana, and Ghaziabad and Noida in the state of Uttar Pradesh. We have a 20-year license to provide cellular services in our Delhi circle, valid until November 2014, and which is extendible by additional periods of 10 years. In addition to being India’s political capital, Delhi has the highest per capita income, the highest installed fixed-line penetration rate, and the highest population density among the 29 states of India. Delhi has a high concentration of service and manufacturing industries and houses the Central Government, the head offices for many major public sector enterprises, embassies and various government missions and development agencies. We believe that these factors create high roaming revenue potential from cellular subscribers who roam into our network from other circles. As of November 30, 2001, we had 465,278 custom ers in Delhi, giving us a market share of approximately 56% in this circle. Karnataka and Andhra Pradesh Located in southern India, Karnataka is a major business centre and several information technology companies are based in and around its capital, Bangalore. Andhra Pradesh is adjacent to Karnataka and several information technology companies are based in and around its capital, Hyderabad. Information technology companies are typically high-volume users of telecommunications services, particularly for data transmission. We offer cellular services in these circles pursuant to 20-year license, valid until 2016 for Karnataka and until 2015 for Andhra Pradesh, each of which is extendible by additional periods of 10 years. As of November 30, 2001, we had 177,810 and 195,054 customers in Karnataka and Andhra Pradesh, respectively, giving us a market share of approximately 57% and 48%, respectively, in these circles. Chennai We provide cellular services in Chennai (the capital city of the southern state of Tamil Nadu) and in the adjoining areas of Mahabalipuram, Minjur and Maraimalai Nagar. Chennai is a major centre for information technology companies and foreign multinational corporations. Our network is operated pursuant to a 20-year license, valid until November 2014, and which is extendible by additional periods of 10 years. As of November 30, 2001, we had 110,032 customers in Chennai, giving us a market share of approximately 51% in this circle. Himachal Pradesh Located in northern India, Himachal Pradesh is one of India’s most mountainous states and is a popular tourist destination, particularly for residents of Delhi and other north Indian states. Our network is operated pursuant to a 20-year license, valid until November 2015, and which is extendible by additional periods of 10 years. As of November 30, 2001, we had 12,462 customers in Himachal Pradesh, giving us a market share of approximately 64% in this circle. Kolkata Kolkata is the capital city for the eastern state of West Bengal. Several domestic and multinational companies are based in Kolkata and it is a major centre for trade and commerce in eastern India. Our network is operated pursuant to a 20-year license, valid until November 2014, and which is extendible by additional periods of 10 years. As of November 30, 2001, we had 87,570 customers in Kolkata, giving us a market share of approximately 41% in this circle. We have grown as a result of both organic growth and acquisitions of circles completed by us. The following table sets forth the growth in the number of our cellular customers over the last three years. In September 2001, we entered into license agreements with the DOT to provide cellular services in the eight circles of Mumbai, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh (West), Tamil Nadu and Kerala. All these licenses are for a period of 20 years, valid until August 2021, and are extendible by additional period of 10 years. In September 2001, the DoT also restored the Punjab license in our favour. The Punjab license is for a period of 20 years, valid until 2015, and is extendible by additional periods of 10 years. We expect to commence providing cellular services in these nine proposed circles by the middle of this year. Mumbai Mumbai is the financial and commercial capital of India and one of the largest cities in the world in terms of population. Mumbai is among the highest per capita income cities in India. Several leading financial institutions, regulatory agencies, multinational corporations, service organizations and leading conglomerates are located in Mumbai. The concentration of commercial activity and service industry in Mumbai has led to a strong demand for telecommunications services, both voice and data. Maharashtra. Surrounded by Gujarat, Madhya Pradesh, Andhra Pradesh and Karnataka, Maharashtra is a prominent state in Western India. Maharashtra is one of the most industrialised states in India and several industries including sugar, pharmaceuticals, petrochemicals, heavy chemicals, electronics, automobiles, engineering, food processing and plastics are located in the state. Maharashtra has attracted high amount of investment from Indian and foreign companies in the past. Among states, Maharashtra has among the higher literacy rates and is a centre for learning and research in India. Gujarat Gujarat is located adjacent to Maharashtra and is also a prominent industrialised state in the country. Several companies in the chemicals and petrochemicals, pharmaceuticals and textiles sectors are based in Gujarat and the largest grass-root level petroleum refinery in India is located in the state. Gujarat also has one of the busiest ports in India and handled a high proportion of India’s exports for the year ended March 31, 2001. Haryana Haryana is adjacent to Delhi and is surrounded by the states of Himachal Pradesh, Uttar Pradesh, Rajasthan and Punjab. The city of Chandigarh, which is a union territory, is a joint capital city of the states of Haryana and Punjab. Haryana is also an emerging centre in north India for IT enabled services such as call centres, which are typically high-volume users of telecommunications services. Punjab Punjab is among the highest per capita income states in India. Punjab has emerged as a leading producer of agricultural products in India and several multinational corporations have invested in Punjab in agricultural-related businesses. Punjab is also emerging as a base for the production of engineering goods, pharmaceuticals, leather goods, food products, textiles, electronic goods, sugar, machine tools, hand tools, agricultural implements, sports goods, paper and paper packaging materials. Uttar Pradesh (West) Uttar Pradesh (West) is a circle carved out of the north Indian state of Uttar Pradesh by the DoT and has been classified as a Category B cellular license area. It is a popular tourist location in northern India with several holy shrines and pilgrimage locations. Madhya Pradesh Located in central India, Madhya Pradesh has a total area of approximately 443,000 square kilometers and has substantial mineral resources, making it a centre for the aluminum, chemical and iron and steel industries. Several industries in the electronics, telecommunications, petro-chemicals, food processing and automobiles sectors are also located in Madhya Pradesh. Kerala Located in south India, Kerala is rich in minerals, marine products and agricultural products. A large section of the former population of Kerala lives outside India as non-resident Indians and has contributed to a relatively high foreign exchange inflow in this state. The state has the highest density of science and technology personnel and the highest literacy rate in India. Tamil Nadu Located in southern India, Tamil Nadu is surrounded by Andhra Pradesh, Karnataka and Kerala. Tamil Nadu has several industrial undertakings engaged in cotton, sugar, leather, textiles, engineering and petrochemicals sector. The state has a large number of professionals and has witnessed a rapid growth in the software industry in the past few years. In addition to entering into licenses with the DOT for our eight additional circles and the restoration of our Punjab license, we have taken the following steps towards commencing operations in these circles and the integration of the proposed circles with our existing circles: completed network planning activities and implementing the same entered into rate contracts and, for some circles, placed purchase orders with vendors, including Siemens, Motorola and Ericsson, for the supply of telecommunications equipment and network design commenced recruitment activities and internal transfer of employees for new areas of operations entered into agreements with the Escorts group, a provider of cellular services in the Haryana, Kerala, Uttar Pradesh (West), Himachal Pradesh and Punjab circles, to share cellular infrastructure in order to reduce costs and speed the launch date for our services identified, and in some cases acquired, locations for the main switching centres and cell sites. selected a common billing system, customer relationship and enterprise resource planning packages and other office systems and controls for our existing and proposed cellular networks. Airtel has also reorganized the management structure of its cellular business on a regional basis in an effort to better capture revenue and cost synergies. PRODUCT LINE-UP 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 focuses on delivering telecommunications services as an integrated offering including mobile, broadband telephone, national and international long distance and data connectivity services to corporate, small and medium scale enterprises. 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. The Company compliments its mobile and broadband telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fibre on its national long distance network. For international connectivity to east, it has a submarine cable landing station at. For international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortium. Services Broadband and internet services Airtel brings you a host of exciting features ranging from facilities like Online tests, In touch and Video Surveillance Solutions to trouble shooting devices like, Net Expert and Web Jockey. Control your business, 247. Observe your office, warehouse, shop and staff from your PC, from anywhere and all the time Create and share your precious moments with your loved ones with In Touch. It’s a great way to reach out to your loved ones who are far away. Introducing NetXpert, India’s first ever automated Broadband care technology which provides immediate solutions for Internet connectivity related problems. Airtel Broadband Services and TCY Online offer you online competitive tests for GRE, GMAT, SAT and MBA, from the comfort of your home. Wifi is a wireless technology brand by the Wifi Alliance that gives you a host of fantastic advantages ranging from reliability to security. Calling cards Our calling card services connect you to your friends and friends in India a cost effective and reliable manner. Choose from the options below and stay connected. Calling Cards include Great savings on calling anywhere in India or across the world. Even if your phone is not STD/ISD enabled, go ahead and talk to your loved ones. Now call back India from USA at lowest cost of just 6c / min . Traveling abroad? Save precious foreign exchange and up to 94% over international roaming charges. Home Phones Home Phones include Airtel welcomes you to its world of telephony services, which offers you world class services with its cutting edge technology. Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing the ambience of your living room! Mobile Footprint The map below depicts the location of, and provides certain information for, Bharti Tele-Ventures existing mobile circles in India: PROMOTIONAL STRATEGY After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM). All the players except RIM offered services based on the Global System for Mobile (GSM) technology. RIM provided services based on Code Division Multiple Access (CDMA) technology as well as GSM. As competition in the telecom arena intensified, service providers took new initiatives to woo customers. Prominent among these were celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea, relied heavily on its creative media advertising sans celebrities. SWOT ANALYSIS STRENGHTS 1. India has technically educated, motivated and intelligent workforce, who if given proper incentives like quality living and benefits, can be retained in India . 2. India possesses cheap labours to attract foreign investments. 3. Telecom software, telecom professionals, telecom infrastructure and telecom services are the key players in shaping today’s economy. 4. Revenue sharing strategies are leading to mergers and actuations, helping companies to enter new business opportunities, and generate employments, boosting the country’s economy. 5. Privatization of VSNL, along with its partnership with Tata has benefited not only the two companies but also the county at large. 6. Information technology growth can propel India into IT superpower. 7. Quality of life definitely improves when the infrastructure and economy improves. 8. India has huge project plans with foreign countries which can attract further mergers , investments etc. 9. Foreign companies that are facing problem in home market have already identified India as a potential markets for business and therefore they are heavily investing in India. 10. Government has already started relaxing rules for foreign participants. 11. Software exports from software technology parks are a huge potential business. 12. Though global telecom picture looks gloomy but India possesses the competitive advantage in terms of its huge market size and many undeveloped areas. WEAKNESSES 1. Bureaucracy and politics tremendously affects the business policies. 2. Slow reform process and slow liberalization affect the changes and makes the progress slow. 3. Foreign companies wanting to invest in India are put off due to continuously changing rules and lax policies. 4. Telco’s though united, provide some services that bring them in close competition and therefore lose not only profits but also consumer confidence. 5. Compared to the global structure, India is still concentrating on universal service in some parts of the country. 6. Since 1994 reform process, telecom density has only gone up to 3 as compared to the global average of 14. 7. Though cellular is the most attractive business today, but still the overall number of cellular subscribers is very low and this market really needs to be tapped. 8. Embracing change and understanding the technology takes a lot of time making the changes very slowly. OPPORTUNITIES 1. Lot of new entrants in telecom is bringing investment opportunities. 2. Economic liberalization is bringing a significant amount of progress. 3. Telecom educational institutes are coming up to keep the professionals at par with the changing technology. 4. New opportunities are generating more employment and creating a knowledge based economy 5. Privatization of services in telecom sector has led to keen competition, as a result of which prices are reduced and more business opportunities are created. 6. Increased availability of bandwidth has opened doors to new schemes making efficient usage /providing value added services and generating profits. 7. For cellular operators providing long distance is a lucrative business opportunity and they can also concentrate on providing many value added services. 8. Provision of not only basic services /but also, internet, cellular, medical transcription, call center. THREATS 1. Regulatory and tariff changes especially in the cellular operations are constant threats. 2. China’s early liberalization and the fast growing economy may prove to be a hindrance for India. 3. Economic protectionism and continuous political changes plays against plays against everybody’s favors and affects the good intentions of players even like reliance / Tatas etc. 4. Price regulations based on pre set rate of return hinder the growth. 5. Young hard working and intelligent work force want to leave the country due to poor economic conditions and exploitation. 6. Indian businesses take time or can’t survive due to the constantly changing technology and fast-paced nature of telecom business. CHAPTER-IIII RESEARCH OBJECTIVE RESEARCH OBJECTIVE The objective of my project report is to study the advertising strategy of AIRTEL Cellular service and its effect on mobile users existing and who are going to use mobile service in future. In other words, my aim is to study the Advertising Effectiveness of AIRTEL Cellular service. ? To learn the practical knowledge and how academic knowledge convertible in practical way. ? To find out the success rate of the airtel cellular. ? To find out how much organization is involved in the mind of consumer. ? To measure the customer’s satisfaction of airtel who are using airtel services and products. ? To develop a new strategy for the improvement of existing Airtel services and to find new ways of increasing Market share. CHAPTER-V RESEARCH METHODOLOGY RESEARCH METHODOLOGY Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to study advertising strategy of Airtel .The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in. Procedure of research methodology # Target geographic area was East Delhi. # To these geographical area questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions. # The date during which questionnaires were filled was between six week. # Some dealers were also interviewed to know their prospective. Interviews with the honour of retailer of Airtel were also conducted. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, Airtel and its competitor history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers CHAPTER-VI LIMITATIONS OF STUDY LIMITATIONS OF STUDY The researcher has to face certain difficulties while he carries out the research work. He knows the limitations before hand. Some of them are uncontrollable and some others are controllable. Some important limitations, which were faced, are as follows: 1. Limitation of Time: I have completed the research in limited time. In spite of all the difficulties if the time is short it is quite possible that one cannot collect the sufficient data and have to depend upon other source of data. 2. Limitation of funds: Availability of funds was another limitation owning to shortage of money. 3. Limitation of skills: the research needs a lot of statistical work involving collection and tabulation of data, interpretation of data and drawing out the necessary results. It requires an able, efficient and experienced research works. 4. Limitation of human behaviors: (a) Some of the respondent was not honest and genuine in their approach. (b) Some of the respondents could not understand certain queries. CHAPTER-VII CONCLUSION CONCLUSION The conclusion of my study is that AIRTEL’s Advertising has a major impact on its users. People like its schemes very much .AIRTEL had created a very good image on the mind of the new users of cellular service. AIRTEL has adopted a very good strategy by providing a new connection with NOKIA who is market leader in mobile sets, many new users buy Nokia sets and they get a free connection of AIRTEL. AIRTEL is successful in capturing the highest market share by adopting Celebrity Endorsement Strategy. A.R. Rehmaan’s tune for AIRTEL worked as free advertising for AIRTEL as another service user uses it too. Other celebrities like Shahrukh Khan (Bollywood) and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL. AIRTEL has influenced mass customer by its wide network base in India and is popular among business man and professionals but in students it isn’t a popular one because there isn’t much attracting schemes and offers for the youth. CHAPTER-VIII RECOMMENDATIONS Research Papers on ADVERTISING STRATEGY OF BHARTI TELEVENTURES LTDPETSTEL analysis of IndiaAnalysis of Ebay Expanding into AsiaThe Project Managment Office SystemMarketing of Lifeboy Soap A Unilever ProductInfluences of Socio-Economic Status of Married MalesBionic Assembly System: A New Concept of SelfDefinition of Export QuotasOpen Architechture a white paperIncorporating Risk and Uncertainty Factor in CapitalNever Been Kicked Out of a Place This Nice