To Study Marketing Strategies of Aircel
To Study Marketing Strategies of Aircel
To Study Marketing Strategies of Aircel
PROJECT
ON
Bihar
1
ACKNOWLEDGEMENT
Shashi Kumar
Roll No - 144159
2
CERTIFICATE
This is to certify that the project titled Study of Marketing Strategy of Aircel,
submitted by Shashi Kumar to LN Mishra College of Business Management, Bihar in
partial fulfillment of requirement for the award of the BBA Degree is an original
piece of work carried out under my guidance and may be submitted for evaluation.
The assistance rendered during the study has been duly acknowledged.
No part of this work has been submitted for any other degree.
Dated:
3
DECLARATION
I hereby declare, to the best of my knowledge and belief, that this project
Signature
Roll No.:-
4
TABLE OF CONTENTS
4.1 History
5
5.1 Findings Based on Questionnaire
6.1 C Conclusion
6.2 Suggestions
Annexure
Bibliography 67
Sample Questionnaire 68
6
Table no. Table name Page no.
customers
7
INTRODUCTION OF STUDY
i) BRIEF OVERVIEW
ii) OBJECTIVES OF THE
STUDY
iii) SCOPE AND
SIGNIFICANCE
iv) LIMITATIONS OF THE
STUDY
8
1.1 BRIEF OVERVIEW OF THE STUDY
The Indian telecommunications Network with 250m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of Asia.
Today it is the fastest growing market in the world and represents unique
opportunities for UK companies in the stagnant global scenario. Accordingly, India
requires incremental investments of USD 20-25 bln for the next five years.
Private operators have made mobile telephony the fastest growing (over 164% p.a.) in
India. With more than 33 million users (both CDMA and GSM), wireless is the
principal growth engine of the Indian telecom industry. Given the current growth
trends, cellular connections in India will surpass fixed line by late 2004/early 2005.
Intense competition between the four main private groups - Bharti, Vodafone, Tata
and Reliance and with the State sector incumbents-BSNL and MTNL has brought
about a significant drop in tariffs. There has been almost 74% in cell phone charges,
70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the
consumers.
such as digital telephone exchanges, mobile switching centres, media gateways and
system using fibre-optics or Microwave radio relay networks. The access network
which connects the subscriber to the core, is highly diversified with different copper-
9
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
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. India
has the world's second-largest mobile phone user base with over 929.37 million
users as of May 2012.[6] It has the world's third-largest Internet user-base with over
137 million as of June 2012. The total revenue of the Indian telecom sector grew by
7% to 283207 crore (US$48 billion) for 201011 financial year, while revenues
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
telecommunication facilities to deliver mass education programs for the rural folk of
amazing jump to 47.89 in 2010 and is set to increase by 20% in the next five years.
Accordingly, India requires incremental investments of USD 20-25 billion for the
Private operators have made mobile telephony the fastest growing (over 164% p.a.) in
India. With more than 930 million users (both CDMA and GSM), wireless is the
10
principal growth engine of the Indian telecom industry. Intense competition between
the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State
sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs.
There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in
The Government has played a key enabling role by deregulating and liberalizing the
industry, ushering in competition and paving the way for growth. While there were
regulatory irregularities earlier, resulting in litigation, these have all been addressed
now. Customs duties on hardware and mobile handsets have been reduced from 14
percent to 5 percent.
The Indian government has merged the IT and Telecom Ministries to speed up
reforms and decision on the Communication Convergence Bill to enable the common
regulation of the Internet, broadcasting and telecoms will be taken after the new
The Bharti Group, which operates in 23 circles, continues to be the country's largest
cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a
subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular
operator in terms of subscriber base at the end of the fiscal ending March 31, 2011,
displacing Vodafone from the second position. Vodafone, which operates in only
eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike
fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi,
BSNL has been a very aggressive player in the market. "Cellular operators who
expected BSNL to go the MTNL way, were taken by surprise and did not take
effective steps to counter it, till it was too late in the day," said a telecom analyst.
11
Technological changes in the telecom and computers have radically changed the
business scenario. In turn, the new demands of business have spurred many telecom
based technological innovations. In order to exploit these innovations for competing
in global markets, business community the world over has been putting pressure on
governments to revise the policy, regulation and structure of the telecom sector.
Several countries across the world have responded by restructuring the state
controlled telecom service provider, increasing private participation, and deregulating
service provision. The emergent organizations have attempted to be more responsive
to the business needs and have evolved mechanisms to remain competitive even under
tremendous pressures.
Over the past several years, developing countries have also recognized the important
role a responsive, business oriented and technologically advanced telecom sector
plays in the growth of the economy. Many developing countries now accept the
limitations of a monolith state monopoly in responding to the twin challenges of
spurring internal growth and competing in an increasingly global economy.
Past experience of reform across many countries suggests that the fundamental
underlying issue that must be addressed in telecom reform is introduction of
competition for efficiency. Competition is considered to be an important factor than
ownership in introducing efficiency.
India's 21.59 million-line telephone network is one of the largest in the world and the
3rd largest among emerging economies (after China and Republic of Korea). Given
the low telephone penetration rate India offers vast scope for growth. It is therefore
not surprising that India has one of the fastest growing telecommunication systems in
the world with system size (total connections) growing at an average of more than 20
percent over the last 4 years.
The industry is considered as having the highest potential for investment in India. The
growth in demand for telecom services in India is not limited to basic telephone
services. India has witnessed rapid growth in cellular, radio paging, value-added
services, internet and global mobile communication by satellite (GMPCS) services.
This is expected to soar in the next few years.
12
Recognizing that the telecom sector is one of the prime movers of the economy, the
Government's regulatory and policy initiatives have also been directed towards
establishing a world class telecommunications infrastructure in India. The telecom
sector in India therefore offers an Aircell environment for investment.
In 2010 we believe that Indian Telecom industry expects to continue with its fast pace
of subscriber additions, at least 11 million per month, launch of 3G and WiMAX
spectrum, while tariff would continue to slide during the year.
The industry having crossed the 500 million subscriber mark earlier in September
2009 itself, the next milestone would be 750 million. (Global research and analysis
firm Gartner, in a recent study, estimates Indian mobile users to touch 771 million by
2013).
However, this would be a long way off, even though subscriber addition is expected
to continue at fast pace in 2010 as companies expand networks to rural areas and new
firms commence operations.
3G
One of the main catalysts for growth would be the launch of 3G and WiMAX
spectrum, expected to take place by mid-January. 3G, or third generation telecom
services, would result in addition or more subscribers as they would bring in a host of
data-enabled services to the industry, and growth would come in from both voice and
data.
13
WiMAX
Tariffs
Cheap call tariffs and mobile handsets were other factors that drove demand in 2009,
and telecom companies are expected to continue price was both in call rates and
instruments in 2010. This, according to industry analysts, will result in telecom
sectors exponential growth.
The industry also expects launching of innovative and customer friendly schemes like
the one second billing in 2010. These schemes would continue to help in improving
tele-density and penetration of telecom services in rural and semi-urban areas in the
country.
Infrastructure operators
The year 2010 would be that of the infrastructure players. Apart from an expected
consolidation in the sector, the infrastructure majors will increase the pace of tower
rollout across all the 22 circles in the country.
Bandwidth
Group Overview
14
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer
of bicycle parts to one of the largest and most respected business groups in India.
With its entrepreneurial spirit and passion to undertake business projects that are
transformational in nature, Bharti has created world-class businesses in telecom,
financial services, retail, and foods.
Bharti started its telecom services business by launching mobile services in Delhi
(India) in 1995. Since then there has been no looking back and Bharti Aircel, the
group's' flagship company, has emerged as one of the top telecom companies in the
world and is amongst the top five wireless operators in the world.
Through its global telecom operations Bharti group has presence in 21 countries
across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey,
Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo,
Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,
Uganda, and Zambia.
Over the past few years, the group has diversified into emerging business areas in the
fast expanding Indian economy. With a vision to build India's finest conglomerate by
2020 the group has forayed into the retail sector by opening retail stores in multiple
formats - small and medium - as well establishing large scale cash & carry stores to
serve institutional customers and other retailers. The group offers a complete portfolio
of financial services - life insurance, general insurance and asset management - to
customers across India. Bharti also serves customers through its fresh and processed
foods business. The group has growing interests in other areas such as telecom
software, real estate, training and capacity building, and distribution of telecom/IT
products.
What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the
years some of biggest names in international business have partnered Bharti.
Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key
partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa
Group is the partner for the financial services business and Del Monte Pacific for the
processed foods division.
15
Bharti strongly believes in giving back to the society and through its philanthropic
arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children
and youth in India.
Mobile Strategy
Capture maximum telecommunications revenue potential with minimum
geographical coverage to maximise its revenues and margins.
Build high quality mobile networks by deploying state-of-the-art technology
to offer superior services.
Use the experience it has gained from operating its existing mobile networks
to develop and operate other mobile networks in India and to share the
expertise across all of its existing and new circles.
Attract and retain high revenue generating customers by providing competitive
tariffs, offering high quality customer support, proactive retention programs
and roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the market with a view
to expand the reach, thereby increasing the mobile customer base rapidly.
The Indian telecommunications Network with 250m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of Asia.
Today it is the fastest growing market in the world and represents unique
opportunities for UK companies in the stagnant global scenario. Accordingly, India
requires incremental investments of USD 20-25 bln for the next five years.
Private operators have made mobile telephony the fastest growing (over 164% p.a.) in
India. With more than 33 million users (both CDMA and GSM), wireless is the
principal growth engine of the Indian telecom industry. Given the current growth
trends, cellular connections in India will surpass fixed line by late 2004/early 2005.
Intense competition between the four main private groups - Bharti, Vodafone, Tata
and Reliance and with the State sector incumbents-BSNL and MTNL has brought
about a significant drop in tariffs. There has been almost 74% in cell phone charges,
70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the
consumers.
16
The Government has played a key enabling role by deregulating and liberalizing the
industry, ushering in competition and paving the way for growth. While there were
regulatory irregularities earlier, resulting in litigation, these have all been addressed
now. Customs duties on hardware and mobile handsets have been reduced from 14
percent to 5 percent.
The Indian government has merged the IT and Telecom Ministries to speed up
reforms and decision on the Communication Convergence Bill to enable the common
regulation of the Internet, broadcasting and telecoms will be taken after the new
Government assumes responsibilities in may this year. An independent regulatory
body (TRAI) and dispute settlement body (TDSAT) is fully functional.
17
1.2 Objectives of the Study:
Following are the main objective to study about the customer satisfaction on
Aircel.
18
Scope and significance of the study
Targeted geographic area of New Delhi Sample size of 100 respondents was
taken.
Finally the collected data and information was analyzed and compiled to
arrive at he conclusion and recommendations given.
19
Limitations of the study:
The study was restricted to only those clients who were related to Aircel
telecommunications.
The study was confined within specific regions of New Delhi only.
The sample size was limited so the results obtained from the study may not be
generalized for the whole population.
The time period of the study was not sufficient to measure the consumers
response effectively and reach to a more valid conclusion.
20
RESEARCH METHODOLOGY
21
2.1 RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As
the prime objective of the project is to find out market strategy of Aircel with the
existing competitors in the market. 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.
RESEARCH DESIGN
This is the type of research conducted for a problem that has not been clearly defined.
This research helps determine the best research design, data collection method and
selection of subject. It should draw definitive conclusions only with extreme caution.
Given its fundamental nature, exploratory research often includes that a perceived
problem does not actually exists.
I have selected 100 respondents only. The sampling technique which I have selected
is convenience sampling.
22
2.3 Data collection (Primary and secondary)
Primary Data
The primary data are those data which are collected fresh and for first time and thus
happens to be originally character with the help of questionnaire. Primary data was
collected by the researcher.
Questionnaire Method
The main tool used was, the questionnaire method. Lastly observation
method has been continuous with the questionnaire method, as one
continuously observes the surrounding environment he works in.
Secondary Data
Secondary data is basically primary data collected by someone else. Researchers
reused and repurpose information as secondary data because it is easier and less
expensive to collect. However, it is seldom as useful and accurate as primary data.
Secondary data was collected by using the following techniques:
Internet
Books
Magazines
Presentation Tools used
These tools help to make project interactive and easily understandable by any
individual who want to seek information about any particular subject.
Graphs
Pie chats
Charts
Tables
23
Industry overview
24
INDUSTRY PROFILE
The telecom network in India is the fifth largest network in the world meeting up
with global standards. Presently, the Indian telecom industry is currently slated to
an estimated contribution of nearly 1% to Indias GDP.
The Indian Telecommunications network with 110.01 million connections is the fifth
largest in the world and the second largest among the emerging economies of Asia.
Today, it is the fastest growing market in the world and represents unique
opportunities for U.S. companies in the stagnant global scenario. The total subscriber
base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.
The wireless technologies currently in use are Global System for Mobile
Communications (GSM) and Code Division Multiple Access (CDMA). There are
primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom
circles and 4 metro cities, covering 2000 towns across the country.
1851 First operational land lines were laid by the government near Calcutta
(seat of British power)
1881 Telephone service introduced in India
1883 Merger with the postal system
1923 Formation of Indian Radio Telegraph Company (IRT)
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1932 Merger of ETC and IRT into the Indian Radio and Cable
Communication Company (IRCC)
1947 Nationalization of all foreign telecommunication companies to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's
Ministry of Communications
1985 Department of Telecommunications (DOT) established, an exclusive
provider of domestic and long-distance service that would be its own
regulator (separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the
Videsh Sanchar Nigam Limited (VSNL) for international telecommunications
and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan
areas.
1997 Telecom Regulatory Authority of India created.
1999 Cellular Services are launched in India. New National Telecom Policy is
adopted.
2000 DoT becomes a corporation, BSNL
MAJOR
PLAYERS
BSNL
26
BSNL is now Indias leading Telecommunications Company and the largest public
sector undertaking. It has a network of over 45 million lines covering 5000 towns
with over 35 million telephone connections.
The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile,
Internet and long distance services throughout India (except Delhi and Mumbai).
BSNL, which became the third operator of GSM mobile services in most circles, is
now planning to overtake Bharti to become the largest GSM operator in the country.
BSNL is also the largest operator in the Internet market, with a share of 21 per cent of
the entire subscriber base.
MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the
quality of telecom services, expand the telecom network, and introduce new services
and to raise revenue for telecom development needs of Indias key metros Delhi and
Mumbai. In the past 17 years, the company has taken rapid strides to emerge as
Indias leading and one of Asias largest telecom operating companies. The company
has also been in the forefront of technology induction by converting 100% of its
telephone exchange network into the state-of-the-art digital mode. The Govt. of India
currently holds 56.25% stake in the company. MTNL has over 5 million subscribers
and 329,374 mobile subscribers.
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated
telecom service provider with licenses for mobile, fixed, domestic long distance and
international services. Reliance Infocomm offers a complete range of telecom
services, covering mobile and fixed line telephony including broadband, national and
international long distance services, data services and a wide range of value added
services and applications.
However, it has now acquired a unified access license for 18 circles that permits it to
provide the full range of mobile services. It has rolled out its CDMA mobile network
27
and enrolled more than 6 million subscribers in one year to become the countrys
largest mobile operator.
IDEA CELLULAR
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the
side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or
regions, in Western India, and has received additional GSM licenses to expand its
network into three circles in Eastern India -- the first phase of a major expansion plan
that it intends to fund through an IPO, according to parent company Aditya Birla
Group .
VODAFONE ESSAR
Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers
23 telecom circles in India . Despite the official name being Vodafone Essar, its
products are simply branded Vodafone. It offers both prepaid and postpaid GSM
cellular phone coverage throughout India with good presence in the metros.
Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz digital
GSM technology, offering voice and data services in 23 of the country's 23 license
areas. It is among the top three GSM mobile operators of India. Vodafone Essar is
owned by Vodafone 52%, Essar Group, 33% and other Indian nationals, 15%.
On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67%
held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance
Communications, Hinduja Group, and Essar Group, which is the owner of the
remaining 33%. The whole company was valued at USD 18.8 billion. The transaction
closed on May 8, 2007.
28
MAJOR PLAYERS OF INDIAN
TELECOMMUNICATION
MTNL
BSNL VSNL
RELIANC
E
AIRTEL
INFOCO
MM
IDEA
VODAFO
CELLUL
NE
AR
TATA
TELESERVIC
ES
29
COMPANY MARKET SHARES
(January 2017)
The telecoms trends in India will have a great impact on everything from the humble
PC, internet, broadband (both wireless and fixed), and cable, handset features, talking
SMS, IPTV, soft switches, and managed services to the local manufacturing and
supply chain.
This report discusses key trends in the Indian telecom industry, their drivers and the
major impacts of such trends affecting mobile operators, infrastructure and handset
vendors.
30
Higher acceptance for wireless services
Indian customers are embracing mobile technology in a big way (an average of four
million subscribers added every month for the past six months itself). They prefer
wireless services compared to wire-line services, which is evident from the fact that
while the wireless subscriber base has increased at 75 percent CAGR from 2001 to
2006, the wire-line subscriber base growth rate is negligible during the same period.
In fact, many customers are returning their wire-line phones to their service providers
as mobile provides a more attractive and competitive solution. The main drivers for
this trend are quick service delivery for mobile connections, affordable pricing plans
in the form of pre-paid cards and increased purchasing power among the 18 to 40
years age group as well as sizeable middle class a prime market for this service.
MERGERS
Demand for new spectrum as the industry grows and the fact the spectrum allocation
in done on the basis of number of subscribers will force companies to merge so as to
claim large number of subscribers to gain more spectrum as a precursor to the launch
of larger and expanded services. However it must also be noted that this may very
well never happen on account of low telecom penetration.
31
COMPANY PROFILE
I. History
II. Mission, Vision & Objectives
III. Product and services Offered
32
4.1 History
Aircel is an Indian mobile network operator headquartered in Gurgaon that
offers voice and 2G, 3G and 4G data services. Maxis Communications holds a
74% stake and Sindya Securities and Investments holds the remaining
26%. Aircel was founded by C Sivasankaran and commenced operations
in Tamil Nadu in 1999. It is the fifth largest mobile service provider in India
with a subscriber base of 90.9 million subscribers as of March 2017. Aircel is
a market leader in Tamil Nadu and has considerable presence
in Odisha, Assam and North-East telecom circles.
Our world
33
The Aircel Group is a result of alliance between Maxis Communications
Berhad of Malaysia (74% equity) and Sindya Securities & Investments Private
Limited (26% equity).
The Aircel Group, formed in 1994, offers affordable and outstanding mobile
services to a vast subscriber base in India. Aircel has a vision of delighting its
customers by giving them the respect they deserve. Our goal is to provide our
customers with exemplary service and persistently look for new ways to
surpass their expectations.
Aircel recognizes the tremendous growth in its customer base. We have also
got an authorization from the Department of Telecommunications for ILD and
NLD telephony services and are now on track to realize our dream of becoming
a nationwide player by the year 2020.
Aircel offers its customers, services and products that are easy to understand
and use. All offerings are stimulating and at the same time extremely unique as
34
Aircel continues to re-invent itself constantly to deliver the best and most up-
to-date services. The brand instils a felling of pride, confidence and reliance
among all stakeholders by anticipating their desires and fulfilling the same
efficiently.
With our foundations deeply set on our brand vales of simplicity, creativity,
trust and excitement, we will continue to deliver superior services to our
customers and will do our best to live up to their high expectations.
Since its inception, Aircel has strived to provide the best of features and
services to its customers. It is this passion and enthusiasm that has helped us
grow leaps and bounds from what started as operations in Tamil Nadu in 1999,
to a pan-India presence across 18 circles today.
Aircel has also been recognized for its consistent and reliable efforts, receiving
the highest rating for overall customer satisfaction and network quality by
Voice and Data in 2006, an accolade given to only a select few. We succeeded
in keeping our promises to our customers as we were recognized for the same
award by IDC.
Aircel emerged as the top mid-size utility company in Business world's 'List of
Best Mid-Size Companies'. Additionally, we have also been recognised as the
best regional operator by the Tele.net Publication and have been honoured by
CMAI INFOCOM for excellence in marketing of new telecom service.
35
Thanks to our loyal customers, we have been rated as one of the most admired
mobile service brand in a pan-India survey conducted. Aircel today has reached
a subscriber base of 46 million plus and is still going strong. Rest assured
Aircel's commitment to providing you with the best of services and features
will be an ongoing endeavour.
Aircel has multiple and convenient store locations throughout the country. We
provide sales and support through one of the largest and most extensive
networks of stores.
4.2 Mission:
Aircel is primarily a user of technology rather than a developer of it, and this fact is
reflected in the emphasis of our work program on enabling new applications of
mobile communications, using new technology for new services, research for
improving operational efficiency and quality of our networks, and providing
technology vision and leadership that can contribute directly to business decisions.
Vision:
Services:
Staying connected becomes a lot easier with Aircel. We have a wide range of services
you can access right from your Aircel phone. From cell banking to flight updates to
call management services, get all that you want, instantly.
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Postpaid services (latest):
- Aircel , one of Indias leading cellular services providers has launched three
new monthly rental plans - Budget 500, Budget 750 and Budget 1000 - for its
postpaid customers in Kolkata and West Bengal. These Budget plans offer
combinations of free minutes over local and STD calls along with free local
SMS. This offer is valid for new and existing customers.
To activate these values added services on your Aircel phone simply dial 600 and
access our Interactive Voice Response system.
SMS:
Message your family and friends through Aircel SMS Services. It's convenient and
affordable. Communicate with cell phone users in over 100 countries and anywhere in
India - by sending and receiving text msg.
Pay just Rs. 1.50 per message for sending SMS anywhere across the country.
Aircel Online:
Get all the useful information you need directly on your Aircel phone - with Aircel
Online. Including cricket, finance, entertainment, weather, astrology and more.
Simply go to the Aircel Online menu on your Aircel phone. If you do not see the
Aircel Online menu on your phone, send HELP to 123. We will send you the list of
keywords.
MTNL Directory:
With this facility you can get to know the address and telephone no. of MTNL
users.you will be charged Rs.2 per outgoing message.
37
STD / ISD Codes:
You don't need to look up your diary or a phone directory to find out STD and ISD
codes. You can find it directly through your Aircel phone.
Now you can change the ringtone on your Aircel phone according to your moods.
You can download logos as well. With the Aircel and Yahoo! tieup you have
hundreds of tunes and logos to choose from.
For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of SMS
sent). For every logo/picture message downloaded, you will charged Rs. 3.00
(including the cost of SMS sent).
Dial-in Services
Aircel brings you more conveniences at your fingertips. Use our Dial-in-Services to
check cricket scores, horoscope, up-to-the minute news and other relevant information
on services that touch your everyday life.
Service Number
Dial-n-Deliver 306
38
Dial-a-Pizza 303
Dial-a-Cab 335
There are occasions when you may not want to take a call, or your Aircel phone
maybe busy or simply unreachable. By paying a nominal monthly access fee, you can
now retrieve your messages at your convenience. Even if you are roaming, you can
retrieve your messages from your voice mailbox through a fixed line, anywhere on
earth.
you can also record your voice signature and welcome message.
There may be occasions when you need to conference with up to six people at a time
or talk to just two. Or you are speaking to someone and want to forward an incoming
call to another phone. With your Aircel phone, you can do this and more. Aircelhelps
you manage your calls effortlessly so that you stay in control of your conversations,
always.
Voice Response
Get your Aircel phone to respond directly to your commands. Custom designed to
recognize Indian voices and accents, the Voice Response service makes your life
more convenient. You can get the latest updates on news, stocks, cricket and your
horoscope. Airtime charges will be Rs.6 per minute (1 minute pulse).
Voice Messaging
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Voice Messaging has become even more affordable. You can now send voice
messages to cellular phones as well as fixed telephone lines in USA or Canada for just
Rs.3.95 per min* (as against Rs.4.95 per min earlier).
Voice messages within India across select networks will cost you Rs.95 per min
only. Also, recipients of the cellular Voice Messaging service have the option of
replying back to the messages, which get returned back as return Voice Mail
messages, facilitating two-way (though not simultaneous) voice communication.
You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive
Aircel-Yahoo! tie-up, you can easily get connected through your Aircel phone. This
unique messenger comes with a lot of exciting features. You can connect with all
Yahoo! Messenger users, send, receive and reply to instant messages, view and
manage your friend list and also manage authorization requests. All this and more just
by using SMS. You will be charged Rs. 2 per outgoing message. Incoming messages
are free.
Cell Banking
Aircel now puts the bank in your pocket with Cell Banking. Access your bank
account and transact directly on your Aircel phone by sending text messages.
The first of its kind in India, this service enables you to conduct your banking without
having to visit the bank or making a call.
You can do Cell Banking from over 90 countries worldwide.
You will be charged Rs. 2 per outgoing message. Incoming messages are free.
Roaming
Now you can always stay connected, no matter where you are. With the Aircel
Roaming facility, you can use your Aircel phone in over 100 countries worldwide and
over 1000 cities, towns and highways across India. Aircel Roaming makes life easy
and convenient for you.
40
traveling to South Africa during the upcoming DLF Indian Premier League
(IPL) cricket tournament. Aircel is the official partner to DLF IPL 2009
Your Aircel phone number and PIN number remains the same whether you are in
Delhi, Chandigarh, London, Paris or anywhere else in the world.
Roaming on Aircel Prepaid gives you the most extensive coverage in over 1000 cities,
towns and highways across India, and in over 100 countries around the world. Enjoy
Roaming on your Aircel Prepaid card and stay in touch wherever you go.
You can now directly access your email account on Yahoo! Mail on your Aircel
phone. Whats more, you do not need a WAP enabled handset for this service as it is
based on SMS. So gain freedom from your PC and access your Yahoo! mails anytime,
anywhere on your Aircel phone. You will be charged Rs. 2 per outgoing message.
Incoming messages are free.
WAP
With WAP, you can have the Internet directly in your pocket. So if you are looking
for quick and easy delivery of information and services, your Aircel phone can show
it all. Use it to check out news, finance, shopping, entertainment, travel, entertainment
and city service information etc. To access this service all you need is a WAP enabled
handset and WAP services activated on your Aircel phone. This service comes to you
at a nominal charge of Re. 1 per minute (1 min pulse).
Group Messaging
41
Party invitations, movie outings, festive greetings... whatever be the occasion, you can
send your message to all your friends at one go!
With Group Messaging from Aircel, you can thus save yourself the bother of pain
stakingly sending your message to one person at a time whether you are on Aircel
Prepaid or Postpaid.
Aircel4help
Aircel4help now lets you take advantage of a lot more services than before. You can
connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you
are stranded in the middle of the road, or if you you need immediate medical attention
or if you are looking for a police station close by, Aircel4help gives you instant access
to your nearest source of help, anywhere in Delhi or the NCR.
All the help services are [email protected]/min. While for police and fire help only local
airtime charge is applicable.
STRENGTHS:
Aircel has its brand image and its ranking is 2nd in world. so here one thing is
conform that Aircel has good network and outstanding services thats why its users
are most after china mobiles. At gave some special packages to the attract customers.
it can offer international roaming facility more than any network in India. Financially
Aircel is strong and is able to invest heavy amount in India.
WEAKNESS:
It has to take license from TRAI and act according to rules of India due to which it
may not give its special services like 3G video calling and call to someone by hiding
your phone number.
OPPURTUNITIES:
Aircel can capture Asian market if it can grow more in India, 62% of population of
India is young and mobile phones are most commonly used by young ones. Demo
graphs of India tell us that in this company India can earn heavy amount of revenue.
42
So there is space for market penetration. if Aircel offers some special packages for
limited time then customer of other networks may switch. Aircel have better
technology so it can capture the customers of the other networks as well. With India
Aircel can capture Asia as well because of population or demography of India.
THREATS:
The current recession in market is not good for any kind of business including
telecommunication. Five cellular companies are already working in India. The
situation in is not good especially political and peace. There are a lot of uncertainties
in the country.
Besides print advertising, the company had put up large no of hoardings and kiosks in
The objective behind designing a promotion campaign for the Aircel services is to
It is trying to set up a thematic campaign to build a stronger brand equity for Aircel.
Since the cellular phone category itself is too restricted, also the fact that a Cellular
differentiator. The image of the service provider counts a great deal. Given the Cell
phone category, it is the network efficiency and the quality of service that becomes
important. What now the buyer is looking at is to get the optimum price-performance
Brand awareness is spread through the' campaigns and brand preference through
brand stature. Aircel's campaign in the capital began with a series of 'teaser' hoardings
43
across the city,' bearing just the company's name and without explaining what Aircel
was. Vans with Aircel logos roamed the city, handing out brochures about the
company and its services to all consumers. About 50,000 direct callers were sent out.
When the name was well entrenched in the Delhiitess mind, the Aircel campaign
began to focus on the utility of Cell phone. In the first four months alone Aircel's
As of today the awareness level is 60% unaided. This implies that if potential or
knowledgeable consumers are asked to name a Cellular phone service provider that is
on the top of his/her mind 60% of them would name Aircel. As for aided it -is 100%
score of the brand on the above aided and the unaided tests. The figures show that
Every company has a goal, which might comprise a sales target and a game plan with
due regard to its competitor. Aircels campaign strategy is designed keeping in mind
its marketing strategy. The tone, tenor and the stance of the visual ads are designed to
convey the image of a market leader in terms of its market share. It tries to portray
the image of being a "first mover every time" and that of a "market leader".The status
of the product in terms of its life cycle has just reached the maturity stage in India. It
is still on the rising part of the product life cycle curve in the maturity stage.
The diagram on the left hand side shows the percentage of the users classified into
heavy, medium and low categories. The right hand side shows the revenue share
earned from the three types of users. Aircel, keeping in mind the importance of the
customer retention, values its heavy users the most and constantly indulges in service
44
innovation. But, since heavy users comprise only 15 - 20% of the population the
The population which has just realized the importance of cellular phones has to be
roped in. It is for this reason that the service provider offers a plethora of incentives
and discounts. Concerts like the "Freedom concert" are being organized by Aircel in
order to promote sales. The media channel is chosen with economy in mind. The
target segment is not very concrete but, there is an attempt to focus on those who can
afford. The print advertisements and hoarding are placed in those strategic areas
which most likely to catch the attention of those who need a cellular phone. The
Besides this, other promotional strategies that Aircel has adopted are .
(i) People who have booked Aircel services have been treated to exclusive premiers
of blockbuster movies. Aircel has tied up with Lufthansa to offer customer bonus
miles on the German airlines frequent flier's programs.
(ii) There have been educational campaigns, image campaigns, pre launch
advertisements.
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DISTRIBUTION
Company
Franchisee Distributor
Dealers
Dealer
Customer
Customer
Franchisees and 15 Distributors- They also have 8 'instant access cash card counters-
Each franchises or distributor can have any number of dealers under him as long as
the person is approved by the Aircel authority. Each franchise has to invest Rupees
Ten Lakhs. To obtain a franchise and should employ an officer recruited by Aircel.
This person acts as a liaison between the company and the franchises. The franchises
can it any number of dealers as long as their territories do not overlap. But
unfortunately Aircel has not been very successful in controlling territorial overlaps of
dealers. The franchises can carry out his/her own promotional strategy. For this the.
company contributes 75% of the money and the franchises contributes 25% of the
money. The dealers under the franchisee receive the same commission. The
franchises and the dealer obtain the feedback from the customers and they are sent
46
through the liaison officer on a day-to-day basis to Aircel. The dealer has to invest
Rupees. One Lakh as an initial investment. The dealer of Aircel are not allowed to
Target set for distributors and the dealers is 100 -150 activations per month. Hence
the dealers can also go for their own promotions like banners and discounts on
festivals etc. The dealer provides service promptly. The consumer on providing the
bill of purchase for the handset and proof of residence has only to wait an hour before
getting connected. The staff of the dealers and the franchisees are provided training
The complaints encountered by the franchisees and dealers are either handset being
non-functional or the SIM Card not getting activated. Anything more complicated is
With Aircel, the subscriber wouldn't just get a personal phone that lets him/her be in
touch, always, but also gets a host of benefits that let him/her manage his/her time like
never before.
An Aircel subscriber is provided with a Subscriber Identity Module Card (SIM card) -
that is the key to operating his/her cellular phone. His card activates Aircel cellular
services and contains a complete micro-computer chip with memory to enable one to
enjoy one's cellular phone thoroughly. Each SIM card contains a PIN code (Personal
Identity Number) which may be entered by one. Just plug your SIM card into your
cellular phone, enter the PIN code and it becomes 'your' personal phone'.
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PRODUCT LIFE CYCLE
The pattern of cellophane subscriber growth observed elsewhere in the world reveals
that the growth in the market is initially slow followed by a sharp acceleration, but so
far that has not happened in India. As far as the Product Life Cycle is concerned.
MARKETING OBJECTIVES
market share
STRATEGIES
market competitors
distribution.
48
Advertising Build product Build awareness Stress brand
dealers.
with customers.
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FINDING AND ANALYSIS
I. Findings based on
Questionnaire
50
Statement 5.1 .How many mobile connection do you have?
percentage of
options no. of respondents
respondents
1 35 36%
2 46 46%
3 11 11%
more than 3 8 8%
8%
11%
35%
1
2
3
46% more than 3
INTERPRETATION:
As per manjority of the respondents, i.e 46% use 2 mobile connections. Whereas 35%
of the respondents stick to one connection only.
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Statement 5.2.which is your primary service provider?
Aircel 68 68%
Aircel 12 12%
Vodafone 18 18%
MTNL 2 2%
2%
18%
Aircel
12%
Airtel
68% Vodafone
MTNL
INTERPRETATION:
52
Statement 5.3. Why have you chosen aircel as you service provider?
percentage of
options no. of respondents
respondents
Easy availability of
6 6%
recharge coupans
Any other 4 4%
4% Easy availability of
recharge coupans
12% 6%
14% Better network options
Low tariffs
64%
Better service
Any other
INTERPRETATION:
According to the above table and figure 64% of the respondents say that Aircel charges
lowest as compared to the competitors.
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Statement 5.4. How do find advertisement of aircel?
attractive 56 56%
poor 10 10%
indifferent 8 8%
8%
10% 26%
Very attractive
attractive
poor
56% indifferent
INTERPRETATION:
As per majority of the respondents, i.e 56% of the respondents feel that they find the
advertisements of aircel very attractive.
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Statement 5.5.what kind of troubles do you face with aircel connection?
percentage of
options no. of respondents respondents
high tariffs 6 6%
Poor network
6% 12%
37% unreasonable balance
10% deduction
poor customer care
response
35% high tariffs
no trouble at all
INTERPRETATION:
As per the above table and graph, majority of the respondents i.e 37% say that they face
poor network problem.
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Statement 5.6.How do you find value added services of aircel?
2%
13% 19%
Excellent
Good
Average
66% Poor
INTERPRETATION:
After analyzing the above table and graph, it was identified that 66% of the respondents
found the value added services to be good.
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Statement 5.7. How do you find response of customer care executive when you put a
query?
percentage of
options no. of respondents respondents
Positive 77 77%
Negative 23 23%
23%
Positive
Negative
77%
INTERPRETATION:
From the above table and graph it is identified that majority of the respondents i.e 77%
are satisfied with the response of customer care executives when they had ever put a
query.
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Statement 5.8. Do you want to switch to any other service provider?
Yes 11 11%
No 89 89%
100
90
89
80
70
60
50
no. of respondents
40
30
20
10
11
0
Yes No
INTERPRETATION:
From the above table and graph it was found that 89% of the respondents do not want
to switch their service provider.
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Conclusion and
Recommendation
i. Conclusion
ii. Suggestion
59
6.1 CONCLUSION
After analyzing the findings of the research, I can conclude that Aircel lagged behind
its ompetitors as far as customer service and availability is concerned. The maximum
no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the
most popular type of mobile connections, as they are consumer friendly and
recharging the connection is not a problem.
Maximum no. of people spend RS 500 on their connections. As Aircel is the only
company having the maximum no of mobile connections so it must seriously look
into the loop holes of the existing customer service department.
Although people are aware about the tariff plans offered by WLL service providers,
but right now they are not in hurry to adopt it. The public wants to wait and watch
their respective performances.
So far findings from this research are concerned these are the major findings as
follows.
Being a market leader Aircel has got the maximum no of subscribers base. From this
research I found that Aircel has got 48% customer base in Delhi. Trump has got 28%
customer base followed by Hutch with 14% and finally only 10% of Aircel.
Second thing what I found from this research is that out of 150 respondents 100 i.e.
66.6% of the consumers have switch over from their service provider. Out of 100
consumers 46 is the figure from Aircel, 29 from Trump, 14 from Aircel, & 11 from
Hutch.
The major reason I found for switch over price value i.e. an expensive in case of
Aircel. In case of trump network coverage & non availability of recharge voucher
while consumers go for roaming is the major reason come out, Aircels customers are
having the major problem of billing related in case of postpaid connection.
This seems to be the new age of communication all most 90% of the customers are
aware about the market.
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Future to retain its market share
i) Aircel should look into the short comings of its customer care service.
ii) Aircel should make sure, that their prepared card should always be readily
available with the retailers.
iii) Aircel should keep on coming with attractive tariff plans.
iv) As maximum no. of users are between 20 to 28 they should specially come
out with some plans which are attractive for this segment.
v) Main advantage of WLL is its tariff plan. So GSM service providers
should try to reduce their tariff plans if possible, at least initially.
From above the details I conclude that 70% Aircel users preferred to remain with
Aircel. Also good number of users who were willing to switch from their respective
subscribers showed interest in Aircel. Hence, these statistics imply a bright future for
the company. Also the company is now providing more services like the door to door
services which is you dial the Aircel customer care and would like to send someone
flowers the Aircel company delivers those flowers to the person concerned. Also
Aircel is providing voice mail service and free text messaging service. Call
conferencing is also another feature Aircel provides.
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6.2 Suggestion
62
customers mind. They should focus on their main line Touch Tomorrow
used in the Air Tel brand architecture.
Value added services are the norm of the day. The service providers can gain a
long term advantage by consistently introducing new incentives in value added
services or
tariff structures. Every time a new scheme is launched it provides temporary edge
to the service provider over its counterpart. This temporary advantage is in terms
of the new clients it acquires who have been attracted by the offer. However after
some time this advantage is neutralized by the other player offering something
similar. Thus it important to innovate before the competition time and again so that
one can make the short term advantage cumulatively long term and help increase
mind share as well as market share.
Corporate clientele
Since this a target market by itself its marketing methodology itself would be
different. Most organizations prefer to take services for their employees in groups.
Hence, this order becomes very big for the service provider. Personalized selling
would be the order of the day for these users. The presence in the various business
and corporate circles would also enhance Aircel brand image. Special incentives
can be given to these employees for maintaining their loyalty to the Aircel brand.
Aircel could lure more customers by introducing schemes in which calls from one
Aircel user to another would be possible at a reduced tariff. This would encourage
a group of users who need to communicate frequently to opt for this service only.
Also it would help in promoting bondage between the users and thus further
promote loyalty.
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New innovative packages
Aircel has to come up with new innovative packages like the CALL HOME
scheme offered by Vodafone. Such schemes launched at regular intervals will help
in maintaining customer loyalty and also attract new customers.
Aircel can collaborate with companies like Nokia or any other hardware provider
and launch schemes like providing free airtime with every hardware instrument
bought. Exposing the customer to the brand increases the chances of the customer
being hooked on to the brand. The companies can ensure this by offering the
option of renewal of the account at the expiry of the free airtime.
Discounted products
The company has to offer more discount schemes like reducing the activation
charges or reducing the security fees. This will provide the company a competitive
edge. However this may lead to a price war. Hence the trade offs of indulging in
this exercise must be considered.
Regular freebees
Aircel can offer at regular intervals and specially at festivals schemes like free
airtime to its users, free coupons for shopping, free entry to shows etc. this would
keep the customers interested in the brand and ensure that they remain loyal to the
brand. The other competitor will also be indulging in the same hence the
effectiveness of these would depend on the timing of these offers.
Special offers
Aircel may offer special incentives and rewards to the frequent and regular users
by offering them free maintenance checks.
Free or minimal cost up gradation to a category of users who use the service over a
specified limit of airtime
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More of the e-factor
The future belongs to the net. The players who will be able to integrate the net in
their operations will lead the market. This would mean advertising over the net,
allowing an interface of the net with the cellular service. Aircel is already on the
right track as far as this is concerned. They have introduced the concept of being
able to send messages to the user like a pager message. This can be done from the
Aircel site.
Consolidate WAP
Aircel has the advantage of having introduced the WAP before its competitor
Vodafone has. They can use this as platform for taking a lead when this technology
becomes widespread. Till then it will act as bait for status conscious users who
want the latest innovations irrespective of its present application.
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ANNEXURE
BIBLIOGRAPHY
SAMPLE
QUESTIONNAIRE
66
BIBLIOGRAPHY
A. BOOKS:
1. PHILIP KOTLER: MARKETING MANAGEMENT
B. MAGAZINES:
Business World
C. JOURNALS:
1. THE TIMES OF INDIA
2. BUSINESS STANDARD
67
QUESTIONNAIRE
1)
2)
3)
more than 3
Aricel Vodafone
Aircel MTNL
Low tariffs
Better service
Any other please mention
68
4. How do find advertisement of aircel?
Very attractive
Indifferent
Attractive
Poor
Poor network
High tariffs
No trouble at all
Excellent
Good
Average
poor
69
7. How do you find response of customer care executive when you put a query?
Positive
Negative
Yes
No
70