Ad. Strtgy of Bharti Televentures

8/6/2019 Ad. Strtgy of Bharti Televentures

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CHAPTER-IEXECUTIVE SUMMARY

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 dousing 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 productofferings and excellent distribution network

In this report I have tried to analyze the present scenario of Indian telecom sector the realaim 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 tomake it comprehensive one.

I complement this with the internal study of the companies history , vision businessareas etc to analyze how well poised the company are to complete or rather just exist inthis market that is proving itself to be the most competitive in post liberalization Indianeconomy.

CHAPTER-IIINTRODUCTION

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The BhartiGroup, has a diverse business portfolio and has created global brands in thetelecommunication sector. Bharti has recently forayed into retail business as Bharti RetailPvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfullylaunched an international venture with EL Rothschild Group to export fresh agricultural

products exclusively to markets in Europe and USA and has launched Bharti AXA LifeInsurance Company Ltd under a joint venture with AXA, world leader in financial

protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. BhartiAirtel since its inception has been at the forefront of technology and has steered thecourse 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 businessunits (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise Services. Themobile business provides mobile & fixed wireless services using GSM technology across


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circles, while the ATS business group provides broadband & telephone services in 94cities. 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).

Fastest Growing Sector CAGR 22% (2002-08)

Second Largest Telecom Market Lowest tariff charges in the world Wireless Subscribers 315.3 Mn Wireline Subscribers 38.4 Mn

23 Circles - 4 Categories ( Metro, A, B & C)

Bharti Airtel Largest player with presence in 23 Circles

CHAPTER-IIICOMPANY PROFILE

Fact sheet Name Bharti Airtel Limited.Business Description Provides mobile, telemedia services (fixed line) and enterpriseservices (carriers & services to corporates)Established July 07, 1995, as a Public Limited CompanyProportionate RevenueRs. 270,122 million (year ended March 31, 2008-Audited) Rs. 184,202 million (year ended March 31, 2007-Audited)

As per Indian GAAP AccountsProportionate EBITDA Rs. 114,018 million (year ended March 31, 2008 - Audited)Rs. 74,407 million (year ended March 31, 2007 - Audited) As per Indian GAAPAccountsShares in Issue 1,898,020,804 as at June 30, 2008Listings The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India


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Limited (NSE)Market Capitalisation Market Capitalisation (as on September 18, 2008) Approx. Rs.1,443 billion Closing BSE share price = Rs. 760.35Customer 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 promotinginvestments in telecommunications services. Its subsidiaries operate telecom servicesacross India. Bharti Tele-Ventures is India's 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 millionmobile and approximately 750,000 fixed line customers, as of August 31, 2004.

Investor Relations

Creating value for our customers, employees, investors, partners, vendors and thesociety at large lies at the root of our fundamental business strategy. Our core principlesof 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 inand commitment to the telecom sector; and translates into creating innovative excitingopportunities for one and all.

Largest Private Integrated Telecom Company in India

3rd Largest Wireless Operator in the World

Largest & Fastest Growing Wireless Operator in India

Largest Telecom Company listed on Indian Stock Exchange

Corporate GovernanceBharti Tele-Ventures Limited firmly believes in the principles of CorporateGovernance and is committed to conduct its business in a manner, which will ensuresustainable, capital-efficient and long-term growth thereby maximizing value for itsshareholders, customers, employees and society at large. Company's policies are in line


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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 theBoard on the matters, which among others, include

Reviewing the Companys financial reporting processes and systems.

Recommending the appointment and removal of statutory auditors, fixation of audit feeand related expenses.

Reviewing the Companys financial and risk management policies.

Reviewing with management the half-yearly and annual financial statements, beforesubmission to the Board, focusing primarily on:

Changes in accounting policies and practices;

Major accounting entries, qualifications and accounting issues based on themanagements discretion and judgment;

Compliance with the accounting standards;

Compliance with the stock exchange and legal requirements, concerning financialstatements;

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 specificallyreviewed 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 CommitteeThe Human Resource Committee of the Board discharges the functions of theremuneration committee, along with specifically looking into the following areas:


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Framing policies and compensation packages of top executives; including salaryadjustments, 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 CommitteeThe Compensation Committee of the Board has been constituted in accordance withSEBI (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 relatingto Securities Market) Regulations by any employee.

CHAIRMAN PROFILE

Sunil Bharti MittalChairman & Managing Director Since October 2001Board director since: July 1995Age: 52 years

Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. headquartered at New Delhi, India.

Sunil Bharti Mittal started his career at a young age of 18 after graduating from PunjabUniversity 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 marketcapitalization 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 PadmaBhushan.


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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 The Institution of Electronics and

Telecommunication Engineers (IETE)".

OBJECTIVES

As set out in the Memorandum of Association of Bharti Tele-Ventures, our main objectsare 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-lineservices, cellular/mobile services, paging, videotext, voice mail and data systems, privateswitching network services, transmission network of all types; computer networks i.e.local area network, wide area network, electronic mail, intelligent network, multimediacommunication systems or the combinations thereof and for execution of undertakings,works, projects or enterprises in the telecom industry whether of a private or publiccharacter 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 fundsand 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 datasystems, private switching network services, transmission networks of all types,computer networks like local area network, wide area network, electronic mail, intelligentnetwork, 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 anyother kind; tele-terminals, fax machines, telegraphs, recording instruments and devices,telephone message/answering machines and devices; dialling machines, trunk dialling


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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

To build India's finest business conglomerate by 2020

Supporting education of underpriviledged children through BhartiFoundation.

STRATEGIC INTENT

- To create a conglomerate of the future by bringing about Big transformationsthrough Brave Actions.

BHARTIS MISSION

We at Airtel always think in fresh and innovative ways about the needs of ourcustomers and how we want them to feel. We deliver what we promise and go out of

ur way to delight the customer with a little bit more

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


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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 it's network with the installation for second mobile switching center inApril, 1997 and the first to introduce the Intelligent Network Platform First to provideRoaming 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 119countries including USA, Canada, UK etc with 284 partner networks. BHARTI announces aggrement with VODAFONE marking the entry of the World'sLargest Telecom Operator in India Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership for alife insurance joint venture in India Airtel Launches future factory - Centres of Innovation to Incubate Pioneering MobileApplications 16 states, 600 million people. Only India's 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 World'sLargest Telecom Operator into India

Vodafone to invest approximately Rs. 6,700 crores (approx. USD 1.5 bn.) to acquirearound 10% in Bharti Tele-Ventures Ltd. Bharti Enterprises, SingTel and Vodafone to take Bharti Tele-Ventures Ltd. tounassailable 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 Asias

best SingTel, and now worlds best Vodafone. Bharti set to gain global leadership in the telecom sector Bharti Enterprises continues to hold shareholding and management control in BhartiTele-Ventures.

AirTel : Appropriating the value of 'expression'Over the last couple of years, the market has grown considerably, with deeper penetration


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and wider usage of voice and data services, accompanied by much higher competitiveintensity," Atul Bindal, chief marketing officer, Bharti TeleVentures, expands on this. "Inthis 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 increasinglycommoditized and crowded market. We found this differentiator in a core human truththat 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 themost 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. Thisassumes significance when viewed in the light of the company's pre- and post-paidcommunication, which, in the past, had been treated very differently. Brand image, as aresult, was being driven in two different dimensions. "Brand AirTel is a category leader straddling completely different market segments such as consumer, business andcorporate, as well as different voice, data and payment platforms," says Bindal. "'Expressyourself' 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 tocome up with new ideas and executions. That's what makes a good campaign idea,"observes Rediff's Prashant Godbole, who, along with creative partner Zarvan Patel,conceived the campaign. This is just the proverbial tip of the iceberg, Patel adds. "Wewill be taking the idea forward in many different ways in the forthcoming work," heinforms. Patel also credits his creative team for "fleshing out the idea".

Awards and Recognitions

2007-2008Bharti 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


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2006-2007Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007Bharti Airtel awarded the prestigious QCI-DL Shah Award on Economics of QualitySunil B. Mittal chosen for this years Padma Bhushan Awards

Bharti Airtel is once again chosen for Indias most Customer Responsive TelecomCompany AwardTriple success for Akhil Gupta at CFO Awards for IndiaBharti Airtel is amongst Indias Most Admired Knowledge Enterprises in 2006Sunil Bharti Mittal receives The Honorary Fellowship fromIETEBharti Airtel draws Top Honors at the MIS Asia IT Excellence Awards 2006Bharti Airtel among the top 10 best performing companies in the world according to

Business Week IT 100 listSunil 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 ServiceProvider of the Year

Organization StructureAs an outcome of a restructuring exercise conducted within the company; a newintegrated organizational structure has emerged; with realigned roles, responsibilities andreporting relationships of Bhartis key team players. With effect from March 01, 2006,this unified management structure of 'One Airtel' will enable continued improvement inthe delivery of the Groups strategic vision.

Areas of OperationsDelhiOur Delhi network covers a license area that includes the state of Delhi and theneighbouring towns of Faridabad and Gurgaon in the state of Haryana, and Ghaziabadand 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 byadditional periods of 10 years. In addition to being Indias political capital, Delhi has thehighest 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 anddevelopment 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 customers in Delhi, giving us a market share of approximately 56% in this circle.


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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 20years, valid until August 2021, and are extendible by additional period of 10 years. InSeptember 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.MumbaiMumbai is the financial and commercial capital of India and one of the largest cities inthe world in terms of population. Mumbai is among the highest per capita income citiesin India. Several leading financial institutions, regulatory agencies, multinationalcorporations, 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 industriesincluding 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 companiesin the past. Among states, Maharashtra has among the higher literacy rates and is a centrefor learning and research in India.GujaratGujarat is located adjacent to Maharashtra and is also a prominent industrialised state inthe country. Several companies in the chemicals and petrochemicals, pharmaceuticals andtextiles sectors are based in Gujarat and the largest grass-root level petroleum refinery inIndia is located in the state. Gujarat also has one of the busiest ports in India and handleda high proportion of Indias exports for the year ended March 31, 2001.

HaryanaHaryana 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 centrein north India for IT enabled services such as call centres, which are typically high-volume users of telecommunications services.PunjabPunjab is among the highest per capita income states in India. Punjab has emerged as aleading producer of agricultural products in India and several multinational corporations


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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, agriculturalimplements, 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 bythe 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 PradeshLocated in central India, Madhya Pradesh has a total area of approximately 443,000square kilometers and has substantial mineral resources, making it a centre for thealuminum, 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.

KeralaLocated 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 thisstate. The state has the highest density of science and technology personnel and thehighest literacy rate in India.Tamil NaduLocated in southern India, Tamil Nadu is surrounded by Andhra Pradesh, Karnataka andKerala. 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 fewyears.In addition to entering into licenses with the DOT for our eight additional circles and therestoration of our Punjab license, we have taken the following steps towards commencingoperations in these circles and the integration of the proposed circles with our existingcircles:completed network planning activities and implementing the same entered into ratecontracts 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 areasof operations entered into agreements with the Escorts group, a provider of cellular services in the Haryana, Kerala, Uttar Pradesh (West), Himachal Pradesh and Punjabcircles, to share cellular infrastructure in order to reduce costs and speed the launch date


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for our services identified, and in some cases acquired, locations for the main switchingcentres and cell sites. selected a common billing system, customer relationship andenterprise 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

Wireless Services2G/3GRural Market

TelemediaServices

Fixed LineBroadbandDTH


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Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is thelargest mobile service provider in the country, based on the number of customers.

The group focuses on delivering telecommunications services as an integrated offeringincluding mobile, broadband & telephone, national and international long distance anddata connectivity services to corporate, small and medium scale enterprises.

The group offers high speed broadband internet with a best in class network. WithLandline services in 94 cities we help you stay in touch with your friends & family andthe world.

The Company compliments its mobile and broadband & telephone services with nationaland international long distance services. It has over 35,016 route kilometers of optic fibreon its national long distance network. For international connectivity to east, it has asubmarine cable landing station at. For international connectivity to the west, theCompany is a member of the South East Asia-Middle East-Western Europe 4 (SEA-

ME-WE-4) consortium.ServicesBroadband and internet servicesAirtel brings you a host of exciting features ranging from facilities like Online tests, Intouch and Video Surveillance Solutions to trouble shooting devices like, Net Expert andWeb Jockey.

Enterprise ServicesCarrier

Corporate

PassiveInfrastructure

Bharti Infratel

Indus Tower


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Control your business, 24x7. 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. Its a great

way to reach out to your loved ones who are far away.

Introducing NetXpert, Indias 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 fantasticadvantages ranging from reliability to security.

Calling cardsOur calling card services connect you to your friends and friends in India a cost effectiveand 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 notSTD/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 internationalroaming charges.Home PhonesHome Phones include

Airtel welcomes you to its world of telephony services, which offers you world classservices with its cutting edge technology.

Avail of the convenience of a mobile phone on a fixed line, without any cables disturbingthe 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:


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CORPORATE STRUCTURE

AIRTELS STRATEGY

After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular marketwitnessed a surge in cellular services. By 2005, there were a total of 12 players in themarket 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.


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As competition in the telecom arena intensified, service providers took new initiatives towoo customers. Prominent among these were - celebrity endorsements, loyalty rewards,discount coupons, business solutions and talk time schemes. The most importantconsumer 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 wastherefore targeted most heavily by cellular service providers.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By2004 it emerged the unprecedented leader commanding the largest market share in thecellular service market. (Refer Exhibit II). Hutch implemented the celebrity endorsementstrategy 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 itssubscriber base. Reliance was another player that cashed on its innovative promotionalstrategies, which included celebrity endorsements and attractive talk time schemes. Idea,relied heavily on its creative media advertising sans celebrities.

MANTRA : Focus on Core Competencies and Outsource the rest!

Airtel partnered with leading players in telecommunication players across theglobe.

It has managed to work with the best of domain specialists globally and emerge asa world class entity.


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Partnerships include operational contracts with marquee vendors and strategicinvestors ranging from private equity investors to global telecom giants.

Strategic partnerships/ Shareholders Technology and Capital

Warburg Pincus a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages.

Vodafone was a strategic investor in Airtel. Temasek the Singapore based investor holds a considerable stake in it. Was also affiliated with Singapore Telecom.

Operational Strategies.

Higher emphasis on ARPU/min stark contrast with other operators whoconcentrate on ARPU only.

Aim to be become a one stop shop for all telecommunication services under theBharti umbrella.

Exploring opportunities in international markets. Hived off tower infrastructure into a separate entity.

Strategies

Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must Airtel must ensure that its reliance on GSM

technology does not render it obsolete. Indian market inspite of being the worlds largest is still not matured.

Opportunities abound in the hinterland which must be exploited. To Diversify into new businesses in agriculture, financial services and retail

business with world-class partners


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Growth Factors

Road Map Growth Path

VPN &VoIP

WiMAX

3G

2G/2.5G


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SWOT ANALYSIS

STRENGHTS

Largest Telecom player in India subscriber base over 100mn Pan India Presence High Pat Margins 24.8% Low debt on books D/E of 0.3 Good ARPU of RS 199 Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson,

Nokia - and Sing Tel Experience of launching 3G services in SriLanka High cash balance of $1bn

WEAKNESSES

Tariff war at its peak Increased competition due to new licenses & issuance of cross over technology ARPU drop is a certainty, expect drop of about 20% M & A regulations restrict attractive synergies DTH a big worry Land Line & fixed line service are in a matured stage

OPPORTUNITIES

1 Lot of scope in rural areas Current Tele-Density 37 is still low among developing countries Low broadband penetration company well equipped to take business to next

level Fast extending International Private Lease Circuit market, only player other than

VSNL to have International Submarine cable network

THREATS

1 India centric - Major revenues from India 93% revenues from Bharti Televentures, only 7% from other group companies Mobile Number Portability by Jan 2010 impact on margins Inability to obtain 3G spectrum in key circle Revision of spectrum usage charges


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CHAPTER-IVRESEARCH OBJECTIVE

The objective of my project report is to study the advertising strategy of AIRTELCellular service and its effect on mobile users existing and who are going to use mobileservice 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 practicalway.

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 customers satisfaction of airtel who are using airtel services and products.

To develop a new strategy for the improvement of existing Airtel services and to findnew ways of increasing Market share.

CHAPTER-VRESEARCH 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 researchmethodology adopted is basically based on primary data via which the most recent andaccurate piece of first hand information could be collected. Secondary data has been usedto support primary data wherever needed.Primary data was collected using the following techniques

Questionnaire MethodDirect Interview Method andObservation MethodThe main tool used was, the questionnaire method. Further direct interview method,where a face to face formal interview was taken. Lastly observation method has beencontinuous with the questionnaire method, as one continuously observes the surroundingenvironment he works in.


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Procedure of research methodology# Target geographic area was East Delhi.# To these geographical area questionnaire was given, the questionnaire was acombination 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 thehonour of retailer of Airtel were also conducted.# Finally the collected data and information was analyzed and compiled to arrive at theconclusion 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-VILIMITATIONS OF STUDY

The researcher has to face certain difficulties while he carries out the research work. Heknows the limitations before hand. Some of them are uncontrollable and some others arecontrollable. 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 thedifficulties if the time is short it is quite possible that one cannot collect the sufficientdata 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 andtabulation of data, interpretation of data and drawing out the necessary results. It requiresan 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.


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CHAPTER-VIICONCLUSION

The conclusion of my study is that AIRTELs Advertising has a major impact on its

users. People like its schemes very much .AIRTEL had created a very good image on themind of the new users of cellular service.

AIRTEL has adopted a very good strategy by providing a new connection with NOKIAwho is market leader in mobile sets, many new users buy Nokia sets and they get a freeconnection of AIRTEL.

AIRTEL is successful in capturing the highest market share by adopting CelebrityEndorsement Strategy. A.R. Rehmaans 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 isnt a popular one because thereisnt much attracting schemes and offers for the youth.

Performance till date

Bharti Airtel has enjoyed an excellent run ever since the telecomsector opened.

It has managed to hold on to its leadership position inspite of thepresence of other players with deep pockets Ambanis, Tatas,Birlas and Vodafone.

Has coped well with regulatory changes. Continues to attract and delight customers.

References

Bharti Airtel, Annual Report -2009 Investors presentation, Bharti Airtel Limited, November 2009 Telecommunication Services, Indian Industry: A Monthly Review, CMIE

November 2009 Analyst Report Bharti Airtel, Asit C. Mehta Invesment Intermediates Ltd. Telecommunication Sector Report March 2009, CRISIL Capitaline Database http://capitaline.com
http://capitaline.com/http://capitaline.com/


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Documents

Ad. Strtgy of Bharti Televentures