Vous êtes sur la page 1sur 84

1111

Minor Project Report


On
MARKET SHARE OF AIRTEL

Submitted in the degree of Bachalor of


Business Administration (BBA)

Submitted to: Submitted by:


Asim sahore Simranjeet kaur
(Project guide) 0631701707
TECNIA INSTITUTE OF ADVANCED STUDIES
(Affiliated to Guru Gobind Singh Indraprastha University)
2A & 2B, Madhuban Chowk, Rohini, Delhi-110085

1110/12/2009 11- 1111111111111


-111 - 1 -1
1111 22131
2222

TABLE OF CONTENTS

Acknowledgement
1
Executive Summary
2
Objective of Study
3
Company Profile
4
Market Research
5
Wallet Share
6
Research Methodology
7
Data Analysis
8
New retailers added
9
Conclusion
10
Limitations
11
Recommendations
12
Bibliography
13
Annexure
14

2210/12/2009 22- 2111111111112


-222 - 2 -2
2211 22131
3333

ACKNOWLEDGEMENT

My project work has been successfully accomplished due to cooperative efforts of


many people. I would like to pay my sincere gratitude and thanks to those people,
who directed me at every step in the project work.

I would like to express my sincere gratitude to Mr. Asim Sahore (Project guide) for
constantly guiding me and acting as my mentor during the course of my project and
tackling variety of hurdles with implicit patience throughout my research project and
whose deep involvement and interest in the project infused in me great inspiration
and confidence in taking up this study in right direction. Without his overall guidance
and help the project may not have seen to be completed.

In the end, I also want to thanks my friends for their support and help during the
project.

Submitted by:

SIMRANJEET KAUR

3310/12/2009 33- 3111111111113


-333 - 3 -3
3311 22131
4444

Executive Summary

Airtel comes to you from Bharti cellular Limited- a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of
telecom services, which includes cellular, basic, internet and recently introduced
National Long Distance. Bharti also manufactures and exports telephone terminals
and cordless phones. Apart from being the largest manufacturer of telephone
instruments in India, it is also the first company to export its products to the USA.
Bharti is the leading cellular services provider, with an all India footprint covering all
23 telecom circles of the country. It has over 11 million satisfied customers.
Project title is “Market Share of Airtel”. Main objective of the study was to find the
share of Airtel in the allotted market and to know its potential market. In this, non
telecom shops are targeted and their demand or requirement is understood. Their
interest is being taken into consideration i.e. whether they are interested or not
interested if given an option to them to keep Airtel connection for selling. Also for
existing telecom shops; retailers are being questioned about their level of satisfaction
from the business, whether they keep Airtel connection, overall performance of each
telecom services providers and their feedback for Airtel.
The method which was used to study the replies of the telecom and non telecom
shops that may or may not be interested in having Airtel connections is through
questionnaire. The questionnaires were filled by: - moving to each and every market
which was being allotted. Markets allotted are Rohini sector 11 and 16, Rohini sector
15, 17 and 18 and Rohini sector 9, 13, 14 and Prashant Vihar.
Existing telecom shops and non telecom shops like chemist, general stores, STD/
PCO, gifts shops are mainly focused. The questionnaires were filled there and then by
the retailers and then analysis is being done. The questionnaire was bifurcated into
different segments i.e. general information about the retailers containing name,
address, age, shop address, whether they keep Airtel or not, if no then their interest on
keeping it. Also overall comparative performance is being asked from existing
telecom.

4410/12/2009 44- 4111111111114


-444 - 4 -4
4411 22131
5555

Objective

The objective of the project was to:-


 To find the market share of Airtel in allotted markets.
 To measure the amount of the consumers total spending for Airtel telecom
services.
 To know total amount of money non telecom shopkeepers can spend on our
product in planning and managing sales and marketing.
 To know how much Airtel has penetrated into the market.
 To know the satisfaction level from the existing telecom shopkeepers.
 To keep an eye on the competitors strengths and weaknesses.
 To study the hindrances in increasing the sales and market share of Airtel in
prepaid category.
 To know which telecom operator is leading in the given market.

To study the comparative analysis of telecom operators according to dealers, retailers


on a parameters like-
 Value for money of which telecom operator.
 Customer preference/ demand for which company’s connection.
 Claim disbursement received by dealer/ retailer from various companies.
 Number of activation per month.
 Which company’s connection faced the highest decline in the past three
months?

In the end from the facts and observations collected, we came up with the conclusion,
which helps Airtel to attract more customers to be the part of Airtel family and the
corrective measures to be taken for filling up the loopholes and how the Airtel share
can be increased which is eaten away by the other competitors.

5510/12/2009 55- 5111111111115


-555 - 5 -5
5511 22131
6666

6610/12/2009 66- 6111111111116


-666 - 6 -6
6611 22131
7777

Company Profile

Market

The unprecedented growth in the mobile is, perhaps, the most vivid facet of India’s
economic transformation since the mid 1990’s. Mobile technology and services came
to India less than a decade ago. In the early days, a mobile was seen to be a fashion
statement for the rich. Today, it is expected as a basic communication medium for all
socio- economic segments. As the pioneer and front runner, Airtel has been
instrumental in leading and ushering in the mobile revolution in India.
The Indian mobile market is, today, amongst the fastest growing and the most
competitive in the world.
There were 34.6 million mobile phone subscribers in the country as of April 2004
(source: cellular operators association of India and association of basic telecom
operators) with approximately 7 million subscribers, Airtel commands nearly 20% of
the share of the market- making is the number one brand in the country. Airtel’s
world class service and innovative products have enabled it to establish this position
of leadership.

About Airtel

Airtel is a brand of telecommunication services in India operated by Bharti Airtel.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is among


India's largest mobile phone and Fixed Network operators. With more than 40 million
subscriptions, the company is one of the world's fastest growing telecom companies.
It offers its mobile services under the Airtel brand and is headed by Sunil Mittal,
7710/12/2009 77- 7111111111117
-777 - 7 -7
7711 22131
8888

India's sixth richest man with a total worth of US$10 billion. The company is the only
GSM operator to provide mobile services in all the 23 circles in India. The company
also provides telephone services and Internet access over DSL in 14 circles. The
company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides reliable end-to-end data and enterprise services to
the corporate customers by leveraging its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and international
bandwidth access through the gateways and landing station.

Airtel is the largest cellular service provider in India in terms of number of


subscribers. Bharti Airtel owns the Airtel brand and provides the following services
under the brand name Airtel: Mobile Services (using GSM Technology), Broadband
& Telephone Services (Fixed line and Internet Connectivity), Long Distance Services
and Enterprise Services (Telecommunications Consulting for corporates).

Leading international telecommunication companies such as Vodafone and SingTel


hold partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a telecommunications licence in


Jersey in the Channel Islands by the local telecommunications regulator the JCRA. In
September 2006 the Office of Utility Regulation in Guernsey awarded Guernsey
Airtel with a mobile telecommunications licence. In May 2007 Jersey Airtel and
Guernsey Airtel announced the launch of a relationship with Vodafone for island
mobile subscribers. In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens
for a 900 million dollar expansion of its mobile and fixed network.

8810/12/2009 88- 8111111111118


-888 - 8 -8
8811 22131
9999

Touchtel

Until September 18, 2004, Bharti provided fixed-line telephony and


broadband services under the Touchtel brand. Bharti now
provides all telecom services including fixed-line services under a
common brand "Airtel"

Forbes Global 2000 Ranking - 2007

The Forbes Global 2000 list for the year 2007 ranked Bharti at 1149.

Awards and recognition

2006

• Wireless service provider of the year 2005 at the Frost and Sulivan Asia-
Pacific ICT awards.
• Competitive service provider of the year 2005 at the Frost and Sulivan Asia-
Pacific ICT awards

In News

Recently Sunil Bharti's Airtel launched its calling card in America specially for the
NRI (Non-resident Indians) and people calling from America to India at a cheaper
rate as compared to the tariff offered by other providers.

On February 12, 2007 Vodafone sold its 5.6% stake in AirTel back to AirTel for US
$1.6 billion; and purchased a controlling stake in rival Hutchison Essar.

In its monthly press release, following statistics have been presented for end of April
2007.

9910/12/2009 99- 9111111111119


-999 - 9 -9
9911 22131
10101010

• Bharti Airtel added the highest ever net addition of 53 lakh customers in a
single quarter (Q4-FY0607) and also the highest ever net addition of 1.8 crore
total subscribers in 2006-07
• The company will invest up to $3.5 billion this fiscal (07-08) in network
expansion.
• It has an installed base of 40,000 cellsites and 59% population coverage
• After the proposed network expansion, an additional 30,000 towers will result
in the company achieving 70% population coverage
• Bharti has over 39 million users as on March 31, 2007
• It has set a target of 125 million subscribers by 2010
• Prepaid customers account for 88.5% of Bharti’s total subscriber base, an
increase from 82.7% a year ago
• ARPU has dropped to Rs 406
• Non-voice revenues, (SMS, voice mail, call management, hello tunes and
Airtel Live) constituted 10% of total revenues during Q4, lower than 10.7% in
the Q4 of the previous year
• Blended monthly minutes of usage per customer in Q4 was at 475 minutes
• Has completed 100% verification of its subscribers and in the process
disconnected three lakh subscribers

Market News

Market Capitalization

Approx. Rs. 1,670 billion Closing BSE share price = Rs. 880.75

• Sales : 02.62 Billion $

• Profits : 00.46 Billion $

101010/12/2009 1010- 10
1111111111110
-101010 - 10 -10
101011 22131
11111111

Mobile Services

 Post-paid Services
 Airtel Prepaid
 Roaming
 Value Added Services
 Coverage

Bharti's partners in Airtel are Emtel, the premier GSM operator in Mauritius, some
private investors.
Registered as Telecom Seychelles Limited and operating under the brand name of
Airtel, the company is licensed to offer comprehensive telecom services including
GSM Cellular, PSTN (Fixed Lines), Fax and Data, International Roaming,
connectivity to Internet Services, Maritime Telecom Services (INMARSAT) and
International Collect and Credit Card calling. Dominating the market with its service
and customer commitment - Airtel has always been at the forefront of innovation and
change in the Telecom sector in Seychelles.
Airtel's Head Office is in Providence & Anse Royale, Mahe. Airtel also has
showrooms in Victoria, Mahe and Grand Anse, Praslin, that serve as one-stop shops
for customers.
Airtel provides the whole range of telecom services, from GSM Mobile services,
Airtel Prepaid Mobile Cards available at a string of outlets, International Roaming
with 157 operators in 65 countries, a host of Value Added Services, Fixed Cellular
services and a fast growing Fixed Line network as well.

All this, of course, comes to you with the distinct Airtel advantage of excellent
Tariffs, the best GSM Coverage on the islands, world class Technology from industry
leaders like Ericsson and Scientific Atlanta and 24-hour Customer Care.

In addition to telecom services, Airtel also recently acquired a 4-star luxury 124-
bedroom hotel in Seychelles, called Le Meridien Barbarons Beach Hotel.

111110/12/2009 1111- 11
1111111111111
-111111 - 11 -11
111111 22131
12121212

AIRTEL VISION

"To provide global telecom services and delight customers."

AIRTEL MISSION

They will meet the mobile communication needs of customers through:

• Error- free service delivery


• Innovative products and services

Bharti Enterprises
Bharti Enterprises is one of India’s leading business groups with interests in telecom,
agri business, insurance and retail.

Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals
under its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Airtel Limited is today acknowledged as one of
India's finest companies, and its flagship brand 'Airtel', has over 44 million customers
across the length and breadth of India.

While a joint venture with TeleTech Inc., USA marked Bharti’s successful foray into
the Customer Management Services business, Bharti Enterprises’ dynamic
diversification has continued with the company venturing into telecom software
development. Bharti has successfully launched an international venture with EL
Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products
exclusively to markets in Europe and USA. Bharti also has a joint venture - ‘Bharti
AXA Life Insurance Company Ltd.’ - with AXA, world leader in financial protection
and wealth management. Bharti has recently forayed into retail business under a
company called Bharti Retail Pvt. Ltd. It also has an MoU with Wal-Mart for the cash
& carry business.

121210/12/2009 1212- 12
1111111111112
-121212 - 12 -12
121211 22131
13131313

Bharti Tele-Ventures

When EM Warburg Pincus went to invest in India the summer of 2001, it zeroed in
on Bharti Televentures, a mobile telecom services company with fewer than
800,000 customers. The N.Y buyout firm, which invested $300 million in
the Delhi enterprise, chose well. Today, Bharti has 11.4 million cell-phone
subscribers, its stock has grown fivefold since listing early in 2002, and its
valuation is $10 billion. Warburg has made more than $1 billion on the deal
and still owns 5.8%. Chairman and Managing Director Sunil Mittal aims to
maintain Bharti's 25% share of the Indian cellular market, which is forecast
to reach 180 million customers in 2008.

Company Snapshot

Bharti Tele-Ventures Limited, through its subsidiaries, provides telecommunications


services in India. The company offers mobile, fixed line, national, and
international long distance services, very small aperture terminal-based
voice and data transmission services, Internet services, and network
solutions. Bharti offers Internet and various Internet-related services,
including dedicated leased line, virtual private networks, Web hosting and
server collocation, and Internet mailing services to both residential and
corporate customers. The company provides broadband connectivity for
various end uses, including data, information technology-enabled services,
and other high bandwidth services. It offered its services to approximately
11.05 million customers, including approximately 10.24 million mobile and
815,000 fixed line customers, as of January 31, 2004. Bharti Tele-Ventures
was founded in 1995 and is based in New Delhi, India

Business Profile
Bharti Airtel (formerly Bharti Tele-Ventures), a part of Bharti Enterprises, works
through three individual SBUs -mobile services, broadband and telephone services

131310/12/2009 1313- 13
1111111111113
-131313 - 13 -13
131311 22131
14141414

and enterprise services. The company, established in 1995, is a public limited


company and is headquarted in New Delhi, India. The company provides GSM
mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 15 circles. The enterprise services group
has two sub-units - carriers (long distance services) and services to corporates.

Bharti Airtel is the largest mobile telephony operator in the GSM space with around
27 per cent market share in FY05. The company, apart from being the largest player
in the mobile segment with subscribers in all the 23 telecom circles of the country,
also provides varied services like fixed line, broadband and retail internet access. The
company is also one of the fastest growing fixed line and long distance (DLD as well
as ILD) operators in the country. It offers broadband and other data oriented services
to corporate clients. The company has a strategic alliance with Singtel, the largest of
its kind made by SingTel outside Singapore. The company also has a strategic
alliance with Vodafone, which is one of the largest single foreign investments made
in the Indian telecom sector.
Bharti Airtel plans to foray into the retail segment, through a joint venture, which
would be finalised depending on the kind of infrastructure required for the retail
foray.

Financials
Bharti Airtel registered a 151.71% growth in net profits to Rs 12,868.40 million for
the quarter ended March, 2007 from Rs 5,112.40 million for the quarter ended March,
2006.

Net sales rose 59.58% to Rs 52,187.30 million for the quarter ended March, 2007
compared with Rs 32,703.60 million for the quarter ended March, 2006.

Total income rose 59.58% to Rs 52507.7 million in the quarter ended March, 2007,
from Rs 32,904.1 million for the quarter ended March, 2006.

141410/12/2009 1414- 14
1111111111114
-141414 - 14 -14
141411 22131
15151515

The earnings per share (EPS) of the company stood at Rs 6.79 in the quarter ended
March, 2007.

About Idea

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses to
operate in 11 circles. With a customer base of over 10 million, IDEA Cellular has
operations in Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh and Kerala. IDEA
Cellular's footprint currently covers approximately 45% of India's population and
over 50% of the potential telecom-market.As a leader in Value Added Services,
Innovation is central to IDEA's VAS Factory. It is the first cellular company to launch
music messaging with 'Cellular Jockey', 'Background Tones', 'Group Talk', a voice
portal with 'Say IDEA' and a complete suite of Mobile Email Services.A frontrunner
in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering
the most customer friendly and competitive Pre Paid offerings, for the first time in
India, with 'Super Power', 2 Minutes Outgoing Free, Lifelong offer and other
segmented offerings like Women's Card. 'Lifetime Idea' is the first and only loyalty
program, for pre paid customers, introduced by a Cellular brand.
Customer Service and Innovation are the drivers of this Cellular Brand. A brand
known for their many firsts, Idea is only operator to launch GPRS and EDGE in the
country.
The latest feather in the IDEA cap is the GSM Association Award for Bill Flash, it
has recently won making it the first cellular operator in India to win an award on this
platform.
Idea Cellular is part of the Aditya Birla Group, which is India's first truly
multinational corporation. Global in vision, rooted in Indian values, the group is
driven by a performance ethic pegged on value creation for its multiple stakeholders.

The combined holding of the Aditya Birla Group companies in Idea stands at 98.3 per
cent. Mr Kumar Mangalam Birla has been named the Chairman of the company. The
other directors on the board are: Mrs. Rajashree Birla, Chairperson, Aditya Birla

151510/12/2009 1515- 15
1111111111115
-151515 - 15 -15
151511 22131
16161616

Centre for Community Initiatives and Rural Development; Mr. Sanjeev Aga,
Managing Director, Aditya Birla Nuvo; Mr. Debu Bhattacharya, Managing Director,
Hindalco; Mr. Saurabh Misra, Director, Aditya Birla Management Corporation Ltd.
and CEO, UltraTech; and Mr. M. R. Prasanna, Group Executive President (Legal),
Aditya Birla Group.
Aditya Birla Nuvo Ltd. holds 35.7 per cent, Birla TMT Holdings Ltd. 44.9 per cent,
Grasim 7.5 per cent, and Hindalco 10.1 per cent in Idea.
With ambitious future plans, the company is poised for rapid growth.

Hutch Essar

Hutch is the fourth largest cellular operator in India that covers most of the country.It
offers both prepaid and postpaid GSM cellular phone coverage throughout India and
is especially strong in the major metros. The company is often praised for its award
winning advertisements which all follow a clean, minimalist look. A recurrent theme
is that its message Hi stands out visibly though it uses only black letters on white
background. Another recent successful ad campaign in 2003 featured a dog following
a boy around in unlikely places, with the tagline, Wherever you go, our network
follows.

Hutch Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian
nationals, 15%. Vodafone and the Essar group have reached an agreement on the
management of the company, which will be renamed Vodafone Essar in the near
future.

In Mumbai it was earlier known by the name Orange. It offers both prepaid and
postpaid GSM cellular phone coverage throughout India and is especially strong in
the major metros.

161610/12/2009 1616- 16
1111111111116
-161616 - 16 -16
161611 22131
17171717

171710/12/2009 1717- 17
1111111111117
-171717 - 17 -17
171711 22131
18181818

Marketing Research

Research is the scholarly or scientific practice of gathering existing or new


information in order to enhance one's knowledge of a specific area. Research has
many categories, from medicine to literature. Marketing Research, or Market
Research, is a form of business research and is generally divided into two categories:
consumer market research and business-to-business (B2B) market research, which
was previously known as Industrial Marketing Research. Consumer marketing
research studies studies the buying habits of individual people while business-to-
business marketing research investigates the markets for products sold by one
business to another.

Consumer Marketing Research is a form of applied sociology that concentrates on


understanding the behaviours, whims and preferences, of consumers in a market-
based economy. The field of consumer marketing research as a statistical science was
pioneered by Arthur Nielsen with the founding of the ACNielsen Company in 1923.

Market research and marketing research are often confused.’ Market' research is
simply research into a specific market. It is a very narrow concept. 'Marketing'
research is much broader. It not only includes 'market' research, but also areas such as
research into new products, or modes of distribution such as via the Internet. Here are
a couple of definitions:
"Marketing research is the function that links the consumer, customer, and public to
the marketer through information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements the
data collection process, analyzes, and communicates the findings and their
implications."

181810/12/2009 1818- 18
1111111111118
-181818 - 18 -18
181811 22131
19191919

American Marketing association -Official Definition of


Marketing Research
Obviously, this is a very long and involved definition of marketing research.
"Marketing research is about researching the whole of a company's marketing
process."
This explanation is far more straightforward i.e. marketing research into the elements
of the marketing mix, competitors, markets, and everything to do with the customers.

The Marketing research Process.


Marketing research is gathered using a systematic approach. An example of one
follows:
1. Define the problem. Never conduct research for things that you would 'like' to
know. Make sure that you really 'need' to know something. The problem then
becomes the focus of the research. For example, why are sales falling in New
Zealand?
2. How will you collect the data that you will analyze to solve your problem? Do we
conduct a telephone survey, or do we arrange a focus group?
3. Select a sampling method. Do we us a random sample, stratified sample, or cluster
sample?
4. How will we analyze any data collected? What software will we use? What degree
of accuracy is required?
5. Decide upon a budget and a timeframe.
6. Go back and speak to the managers or clients requesting the research. Make sure
that you agree on the problem! If you gain approval, then move on to step seven. 7.
Go ahead and collect the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data collection
method, or analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams that will
communicate the results of the research, and hopefully lead to a solution to your
problem. Watch out for errors in interpretation.

191910/12/2009 1919- 19
1111111111119
-191919 - 19 -19
191911 22131
20202020

Sources of Data - Primary and Secondary


There are two main sources of data - primary and secondary. Primary research is
conducted from scratch. It is original and collected to solve the problem in hand.
Secondary research, also known as desk research, already exists since it has been
collected for other purposes.

Marketing research methods

Methodologically, marketing research uses the following types of research designs

Based on questioning:

• Qualitative marketing research - generally used for exploratory purposes -


small number of respondents - not generalizable to the whole population -
statistical significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
• Quantitative marketing research - generally used to draw conclusions - tests
a specific hypothesis - uses random sampling techniques so as to infer from
the sample to the population - involves a large number of respondents -
examples include surveys and questionnaires

Based on observations:

• Ethnographic studies -, by nature qualitative, the researcher observes social


phenomena in their natural setting - observations can occur cross-sectionally
(observations made at one time) or longitudinally (observations occur over
several time-periods) - examples include product-use analysis and computer
cookie traces
• Experimental techniques -, by nature quantitative, the researcher creates a
quasi-artificial environment to try to control spurious factors, then

202010/12/2009 2020- 20
1111111111120
-202020 - 20 -20
202011 22131
21212121

manipulates at least one of the variables - examples include purchase


laboratories and test markets

Researchers often use more than one research design. They may start with secondary
research to get background information, then conduct a focus group (qualitative
research design) to explore the issues. Finally they might do a full nation-wide survey
(quantitative research design) in order to devise specific recommendations for the
client.

212110/12/2009 2121- 21
1111111111121
-212121 - 21 -21
212111 22131
22222222

222210/12/2009 2222- 22
1111111111122
-222222 - 22 -22
222211 22131
23232323

Market Share

The total amount of money a customer can spend on a certain product category is a
vital piece of information for planning and managing sales and marketing efforts.
This amount is usually referred to as the customer’s wallet (also called opportunity)
for the product category. There are many possible uses for wallet estimates, including
straightforward targeting of sales force and marketing actions towards large wallet
customers and prospects. In a more sophisticated sales and marketing environment,
the combination of classical propensity models for a particular product category with
the knowledge of the wallet for the same category can direct the sales efforts: it
allows a company to market not only to customers or potential customers with a large
wallet, but also to those with a high probability of buying specific products in the
category.
By combining the customer wallet estimates with the data on how much they spend
with a particular seller, we can calculate the share-of-wallet that the seller has of each
customer for a given product category. This information allows the seller to target
customers based on their growth potential, a combination of total wallet and share-
of-wallet. The classical approach of targeting customers that have historically
generated large amounts of revenue for the company (known as lifetime value
modeling) does not give enough importance to customers with a large wallet, but
small share-of-wallet, which are the ones with presumably the highest potential for
revenue growth.
Share-of-wallet is also important for detecting partial defection or silent attrition,
which occurs when customers increase their spending in a given category, without
increasing the amount purchased from a particular company. In certain industries,
customer wallets can be easily obtained from public data. For example, in the credit
card industry, the card issuing companies can calculate the wallet size and respective
share-of-wallet using credit records from the three major credit bureaus. For most
industries, however, no public wallet information is available at the customer level.

232310/12/2009 2323- 23
1111111111123
-232323 - 23 -23
232311 22131
24242424

In this case, there are two approaches used in practice for obtaining wallet estimates:

1. Top-Down: starts from a public aggregate estimate for the overall industry
opportunity in a given country and splits this estimate across the individual customers
using heuristics based on the customer characteristics. For example, if the customers
are companies, the overall opportunity could be divided among the companies
proportionally to their number of employees.

2. Bottom-Up: estimates the wallet directly at the customer level, using heuristics or
predictive models based on customer information. A common approach is to obtain
actual wallet information for a random subset of customers/prospects through primary
research. A model is then developed based on this data to predict the wallet for the
other customers/prospects

Many people, even marketing professionals, consider share of wallet a calculation of


“frequency” and “amount” of purchases. Real share of wallet measures the amount of
the customers’ total spending you are capturing in any particular category.

Factors

The key to increasing share of wallet is to understand what factors influence


purchasing behavior among your customer base. Your task is to find out why your
customers divide their purchases over multiple outlets, and how they choose who they
purchase from.

Regardless of your industry, you have “points of contact” with your customers; they
aren’t limited to but ultimately coincide with a purchase. Use that contact opportunity
to gather loyalty data. This may require an incentive (especially in retail sectors and
e-commerce) to prompt customer participation.

242410/12/2009 2424- 24
1111111111124
-242424 - 24 -24
242411 22131
25252525

You want to dig deeper than the traditional “what is your satisfaction level” type
questions. Find out why they buy from you, who else they buy from and what tips
their scale.

A question we ask when conducting marketing research for our clients is: “if you had
to decide between purchasing from two different stores or companies, what is the
most important factor in that decision?” This always reveals great insight.

Strategies

Once you understand the factors that drive purchasing behavior, you can adjust your
marketing approach to line up with those factors. Following are a few examples of
strategies that effectively increased share of wallet.

• Most airlines jumped on the “frequent flyer” bandwagon, which commoditized the
concept and made it mundane. So, Hawaii Airlines began allowing its points to be
redeemed for rental cars, hotels and golf. This strategy distinguished its program and
appeals to different behavior-based segments of the market.

• Consider the Capital One advertising slogan: “What’s in your wallet?” This is the
ultimate definition of share of wallet. They were leaders in offering balance transfers
(from competing cards) to support their lower interest rate “value” proposition.

• Frito-Lay launched Tostitos Chips in 1981. Ten years later they introduced Tostitos
Salsa. This increased their share of wallet through a “product relationship” strategy
by selling dip to their chip customers—two products that often are purchased at the
same time.

As you develop your “wallet” strategy, keep in mind that the three most
important factors that increase wallet share are: distinction, value and product
relationship.

252510/12/2009 2525- 25
1111111111125
-252525 - 25 -25
252511 22131
26262626

262610/12/2009 2626- 26
1111111111126
-262626 - 26 -26
262611 22131
27272727

Research Methodology

On defining the objective of the project, a plan was developed to gather information
most efficiently. Decisions were taken on the data sources, sampling plan, research
tools and contact methods.

Data Sources: - Primary and secondary data was gathered.

1. Primary Data:- was gathered by carrying out a market survey of various


telecom and non telecom shops in the Rohini markets for example- Rohini
sector 11 and 16, Rohini sector 15, 17 and 18 and Rohini sector 9, 13, 14 and
Prashant Vihar.
Current perceptions of existing retailers is been taken to judge their
expectations from Airtel and its services. Also non telecom shops are been
captured so as to know their interests in keeping Airtel.

Tools used for market survey are:-


 Questionnaires for retailers. Questionnaires were given to approximately 150
shopkeepers.
 Visited three markets: - Rohini sector 11 and 16, Rohini sector 15, 17 and 18
and Rohini sector 9, 13, 14 and Prashant Vihar.
The dimensions addressed in the questionnaire were:-
o Linking about their business.
o Whether they are telecom shops or non telecom shops.
o Do they keep Airtel connections?
o How many connections of each telecom services are sold per month?
o Are non telecom shops interested in having Airtel connections?
o What kind of services they want- activation, recharge or both.
o Overall performance of each telecom services.
o Satisfaction level of retailers.

272710/12/2009 2727- 27
1111111111127
-272727 - 27 -27
272711 22131
28282828

o Feedback from existing retailers.

2. Secondary Data: - The researcher would have to decide which sort of data
he would be using for his study and accordingly he will have to select one
or other method of data collection. Information was gathered from the
internet, media and print so as to obtain relevant information such as
industry background and also public perception of Airtel, Hutch and Idea.
Secondary data is very carefully used in research process because it is just
possible that the secondary data may be unsuitable or may be inadequate in
the content of the problem which we want to study. The data used in
research is reliable according to our research needs. Data should be suitable
and adequate.
Internet
Airtel has its own site in which all details are given
www.airtelworld.com
www.coai.com
www.hutch.co.in
www.idea.com
www.google.com
Are the main sites which are been used for collection of data in our
research.

3. Target Respondents
Shopkeepers of each and every market visited.

4. Sampling
Sample size of 260 individuals relatively covering Rohini under the
distributor was taken. The areas covered were

282810/12/2009 2828- 28
1111111111128
-282828 - 28 -28
282811 22131
29292929

5. Execution After collection of relevant data and sample planning done,


the questionnaires were filled by the retailers by personally interviewing
them.

292910/12/2009 2929- 29
1111111111129
-292929 - 29 -29
292911 22131
30303030

DATA ANALYSIS
Area 1: Rohini sector 11 and 16
SAMPLE SIZE: 94

Q1 Do you keep TELECOM connections?

Reply of respondent No. of respondents Percentage of respondents


Yes 74 79%
No 20 21%

Do you keep TELECOM connections

Yes
No

Conclusion: Majority 79% out of 94 keeps the telecom connections available


in sector 11 and 16 and rest 21% don’t have the telecom connections services
available in their shops.

303010/12/2009 3030- 30
1111111111130
-303030 - 30 -30
303011 22131
31313131

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you


keep in your shop to sell to consumers?

Reply of respondent No. of respondents


Airtel 74
Hutch 74
Reliance 55
Tata 43
Dolphin 37
Idea 74

Which Telecom company products


(NEW ACTIVATION SIMS) do you keep
in your shop to sell to consumers

Airtel
Hutch
Reliance
Tata
Dolphin
Idea

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing
retailers whether telecom or non telecom but tata, reliance and dolphin are kept
mostly by telecom shops.

313110/12/2009 3131- 31
1111111111131
-313131 - 31 -31
313111 22131
32323232

Q3 If yes, then please indicate your level of activation in your shop per month
for each available services given below depending upon on your response:-

S. No. SERVICES 0-125 125- 250- 375- 500- 725-875


250 375 500 725
1: AIRTEL 851
2: HUTCH 729
3: IDEA 677
4: TATA 279
INDICOM
5: RELIANCE 428
6: MTNL 130

level of activation per month fo r each availab le services


no. of connections

1000
800 0-125
600
400 125-250
200 250-375
0
375-500
AIR TE L HUTC H IDE A TATA R ELIANC E MTNL
500-725
IND IC O M
725-875
Se rv ice s

Conclusion: Airtel is ruling in sales as compared to others with range 725- 875 but
through better promotions, schemes and less claims issues Hutch and Idea is
emerging as second and third respectively and may soon surpass Airtel in sales due to
extensive advertising in this area. Reliance has pretty decent sales as compared to
Tata Indicom and MTNL.

323210/12/2009 3232- 32
1111111111132
-323232 - 32 -32
323211 22131
33333333

Q4 If no, then are you interested in having AIRTEL connections with you now?

Reply of respondent No. of respondents Percentage of respondents

Yes 5 25%

No 15 75%

Are you interested in having AIRTEL


connection

Yes
No

Conclusion: Out of the 20 respondents who don’t keep Airtel connection in their
shop, only 5 are interested to keep Airtel connection i.e. 25% rest are still reluctant to
keep it.

333310/12/2009 3333- 33
1111111111133
-333333 - 33 -33
333311 22131
34343434

Q5 If yes, are you interested in having:-

a) Activation
b) Recharge
c) Both

Reply of respondent No. of respondents Percentage of respondents


Activation 1 20%
Recharge 1 20%
Both 3 60%

If yes then are you interested in having


activation, recharge or both

Activation
Recharge
Both

343410/12/2009 3434- 34
1111111111134
-343434 - 34 -34
343411 22131
35353535

Conclusion: Out of these 5 who are ready to keep Airtel connection 60% said they
will keep both i.e. activation and recharge coupons, rest 20% each said that they want
to keep activation and recharge only.

Q6 Rank your choice of telecom service providers in with respect to their


performance

(1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P-
not preferred at all):-

ATTRIBUTES Airtel Idea Hutch Tata Reliance


Indicom
Max customer 34 16 28 12 4
demand is for
Value for money 31 20 23 14 6
F.O.S service 26 20 38 6 4
Activation 14 17 13 26 24
complaints
Claim 18 20 36 14 16
disbursement

353510/12/2009 3535- 35
1111111111135
-353535 - 35 -35
353511 22131
36363636

R a n k in g o f te le c o m s e rv ic e p ro v id e r w.r.t th e ir p e rfo rm a n c e

40
30
20
10
0
A irte l Id e a H utc h Ta ta R e lia nc e
Ind ic o m
s e rv ic e s

Ma x. cu s to m e r d e m a n d is Va
fo rlu e fo r m o n e yF.O .S s e rvice Activa tio n co m p la in tsC la im d is b u rs e m e n t

Conclusion: This data provide us with the overall view of the performance of all
telecom connections in this market area. As it is clearly observed that Airtel is ranked
1 in maximum customer demand and value for money and ranked 2 in F.O.S service.
Airtel close competitor is observed to be Hutch in maximum customer demand and
value for money and though hutch ranked 1 in F.O.S service. But in case of activation
complaints Airtel ranked 4 due to the more activation complaints in this area. In claim
disbursement Airtel is also lacking behind as compared to Idea and Hutch and Hutch
is considered to be no. 1 in claim disbursement followed by Idea.
Area 2: Rohini sector 15,17 and 18
SAMPLE SIZE: 81

Q1 Do you keep TELECOM connections?

Reply of respondent No. of respondents Percentage of respondents

Yes 56 69%

No 25 31%

363610/12/2009 3636- 36
1111111111136
-363636 - 36 -36
363611 22131
37373737

Do you keep TELECOM connections

Yes
No

Conclusion: Majority 69% out of 81 keeps the telecom connections available in


sector 15,17 and 18 and rest 31% don’t have the telecom connections services
available in their shops

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you


keep in your shop to sell to consumers?

Reply of respondent No. of respondents


Airtel 56
Hutch 56
Reliance 34
Tata 43
Dolphin 24
Idea 56

373710/12/2009 3737- 37
1111111111137
-373737 - 37 -37
373711 22131
38383838

Which Telecom company products (NEW


ACTIVATION SIMS) do you keep in your
shop to sell to consumers

60
50 Airtel
40 Hutch
30 Reliance
20 Tata
10 Dolphin
0 Idea
No. of respondents

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing
retailers whether telecom or non telecom but tata, reliance and dolphin are kept
mostly by telecom shops.

Q3 If yes, then please indicate your level of activation in your shop per month
for each available services given below depending upon on your response:-

S. No. SERVICES 0-125 125-250 250-375 375-500 500-725 725-875


1:00 AIRTEL 477
2:00 HUTCH 822
3:00 IDEA 657
4:00 TATA INDICOM 279
5:00 RELIANCE 230
6:00 MTNL 95

383810/12/2009 3838- 38
1111111111138
-383838 - 38 -38
383811 22131
39393939

le v e l o f a c tiv a tio n p e r m o n th fo r e a c h a v a ila b le s e rv ic e s

1000
no. of connections 800 0-125
600
400 125-250
200 250-375
0
375-500
AIR T E L H UT C H ID E A T AT A R E LIANC E MT NL
500-725
IN D IC O M
725-875
S e r v ice s

Conclusion: Hutch is ruling in sales as compared to others with range 725-875 and
on the other hand in this area Airtel is on number 3 due to better schemes of hutch
and idea in his area. And other major reason of airtel become number 3 is activations
complaint and claim disbursements. Tata indicom and reliance have pretty descent
sales in this area

Q4 If no, then are you interested in having AIRTEL connections with you now?

Reply of respondent No. of respondents Percentage of respondents

Yes 5 20%

No 20 80%

393910/12/2009 3939- 39
1111111111139
-393939 - 39 -39
393911 22131
40404040

Are you interested in having AIRTEL


connection

Yes
No

Conclusion: Out of the 25 respondents who don’t keep Airtel connection in their
shop, only 5 are interested to keep Airtel connection i.e. 20% rests are still reluctant
to keep it.

Q5 If yes, are you interested in having:-

d) Activation
e) Recharge
f) Both

404010/12/2009 4040- 40
1111111111140
-404040 - 40 -40
404011 22131
41414141

Reply of respondent No. of respondents Percentage of respondents

Activation 0 0%

Recharge 1 20%

Both 4 80%

If yes then are you interested in


having activation. recharge or both

Activation
Recharge
Both

Conclusion: Out of these 5 who are ready to keep Airtel connection 80% said they
will keep both i.e. activation and recharge coupons, and 20% said that they want to
keep recharge only.

Q6 Rank your choice of telecom service providers in w.r.t their performance

(1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred,


N.P- not preferred at all):-

414110/12/2009 4141- 41
1111111111141
-414141 - 41 -41
414111 22131
42424242

ATTRIBUTES Airtel Idea Hutch Tata Reliance


Indicom
Max. customer 13 24 26 11 7
demand is for
Value for money 15 23 27 11 5
F.O.S service 20 25 25 6 5
Activation 27 12 13 21 10
complaints
Claim 14 25 31 7 4
disbursement

R anking of telecom serv ice w .r.t their perform ance


40
30
20
10
0
A irtel Id ea H utch Tata Relia nce
Indicom
se rvices

M ax. custom er dem a nd is for


V alue for m oneyF .O .S service A ctivation com pla intsC laim d isbursem e nt

Conclusion: This data provide us with the overall view of the performance of all
telecom connections in this market area. As it is observed that hutch and idea is ruling
as compared to Airtel in maximum customer demand and value for money. Reasons
for airtel lacking behind in this area is maximum activations complaint and less claim
disbursement . F.o.s service of Airtel is pretty fine in this area. In claim disbursement
also hutch is ranked number 1. Retailers in this are happy to sell hutch and idea due
more margin cuts(profits)

Area 3: Rohini sector 9, 13, 14 and Prashant vihar


SAMPLE SIZE: 85

Q1 Do you keep TELECOM connections?

424210/12/2009 4242- 42
1111111111142
-424242 - 42 -42
424211 22131
43434343

Reply of respondent No. of respondents Percentage of respondents


Yes 61 72%
No 24 28%

Do you keep TELECOM connections

Yes
No

Conclusion: Majority 72% out of 85 keeps the telecom connections available in


sector 9, 13, 14 and prashant vihar and rest 28% don’t have the telecom connections
services available in their shops

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you


keep in your shop to sell to consumers?

Reply of respondent No. of respondents


Airtel 61

434310/12/2009 4343- 43
1111111111143
-434343 - 43 -43
434311 22131
44444444

Hutch 61
Reliance 35
Tata 43
Dolphin 24
Idea 61

Which Telecom company products (NEW


ACTIVATION SIMS) do you keep in your
shop to sell to consumers

80 Airtel
no of 60
Hutch
responden 40
Reliance
ts 20
Tata
0
No. of respondents Dolphin
Services Idea

Conclusion: Airtel, Hutch and Idea’s activation sims are kept by all the existing
retailers whether telecom or non telecom but tata, reliance and dolphin are kept
mostly by telecom shops.

Q3 If yes, then please indicate your level of activation in your shop per month
for each available services given below depending upon on your response:-

444410/12/2009 4444- 44
1111111111144
-444444 - 44 -44
444411 22131
45454545

S. No. SERVICES 0-125 125-250 250-375 375-500 500-725 725-875


1:00 AIRTEL 670
2:00 HUTCH 720
3:00 IDEA 800
4:00 TATA INDICOM 340
5:00 RELIANCE 477
6:00 MTNL 120

L evel o f activatio n per m o nth for each availab le service

1000
no of connection

800 0-125
600
125-250
400
200 250-375
0 375-500
AIRTEL HUTCH IDEA TATA RELIANCE MTNL 500-725
INDICO M
725-875
Se rv ice s

Conclusion: Idea is ruling in sales as compared to others with range 725- 875
whereas hutch and airtel is at number 2, 3 with number of connection is in range 500-
725 respectively. In this area airtel is lacking behind hutch and idea due to increase in
service complaints and on the other hand, Claim disbursement is given on time by
hutch and idea in this area. Mtnl has the lowest number of selling connection in this
area. Reliance has pretty descent sales

Q4 If no, then are you interested in having AIRTEL connections with you now?

454510/12/2009 4545- 45
1111111111145
-454545 - 45 -45
454511 22131
46464646

Reply of respondent No. of respondents Percentage of respondents

Yes 8 33%

No 16 66%

Are yo u in terested in h avin g AIR T E L


co n n ec tio n

Y es
No

Conclusion: Out of the 24 respondents who don’t keep Airtel connection in their
shop, only 8 are interested to keep Airtel connection i.e. 33% rest are still reluctant to
keep it.

Q5 If yes, are you interested in having:-

g) Activation

464610/12/2009 4646- 46
1111111111146
-464646 - 46 -46
464611 22131
47474747

h) Recharge
i) Both

Reply of respondent No. of respondents Percentage of respondents


Activation 0 0%
Recharge 2 25%
Both 6 75%

If yes then are you interested in


activation, recharge or both

Activation
Recharge
Both

Conclusion: Out of these 8 who are ready to keep Airtel connection 75% said they
will keep both i.e. activation and recharge coupons, rest 25% said that they want to
keep
recharge only.

Q6 Rank your choice of telecom service providers in w.r.t their performance

474710/12/2009 4747- 47
1111111111147
-474747 - 47 -47
474711 22131
48484848

(1- most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred,


N.P- not preferred at all):-

ATTRIBUTES Airtel Idea Hutch Tata Reliance


Indicom
Max. customer 14 23 21 1 1
demand is for
Value for money 12 22 21 3 2
F.O.S service 15 20 23 2 1
Activation 26 5 7 10 13
complaints
Claim 12 20 21 4 3
disbursement

R a n k i n g o f t e le c o m s e r v i c e p r o v i d e r w . r . t t h e i r p e r f o r m a n c e

30
20
10
0
A i r te l Id e a H u tc h T a t a In d i c Ro me li a n c e
S e r v ic e s

M a x . c u s t o m e r d e mV aanlud e i sf ofor mr Fo n. Oe .S
y s e r vAi ccet i v a ti o n c o m Cp la i mn tsd i s b u r s e m e n t

Conclusion: This data provide us with the overall view of the performance of all
telecom connections in this market area. As it is clearly observed that idea and hutch
are leading in maximum customer demand and value for money . Airtel is only
number 1 in activation complaints. Due more numbers of activation complaints airtel
is lacking behind in maximum customer demand and value for money as compared to
hutch and idea in this particular area. In this area , airtel is ranked number 3 in all
major attributes. On the other hand tata indicom and reliance are very less in demand
in this area

Area 1: Rohini sector 11 and 16


SAMPLE SIZE: 94
484810/12/2009 4848- 48
1111111111148
-484848 - 48 -48
484811 22131
49494949

Type of shops (out of 94)

Type Total number Percentage


Chemist 5 5%
General Store 7 7%
STD/PCO 12 13%
Telecom 57 62%
Others 6 6%
Stationary 7 7%

Type of shops

Chemist
General Store
STD/PCO
Telecom
Others
Stationary

Conclusion: Majority of the shops covered are the telecom shops at around 62%,
next are the STD/PCO with 13%, and then general stores and stationary with 7% each
and with least share are the chemist with 5%.As

Detailed description

A. Chemist (out of 5)

494910/12/2009 4949- 49
1111111111149
-494949 - 49 -49
494911 22131
50505050

Reply of respondents No. of respondents Percentage of respondents


Have activation 1 20%
Interested to have 0 0%
Not interested 4 80%

Chemist

Have actrivation
Interested to have
Not interested

Conclusion: Majority of chemists is not interested in investing on selling Airtel


connection with 80% and the remaining already has Airtel.

B. General store (out of 7)

Reply of respondents No. of respondents Percentage of respondents


Have activation 4 57%
Interested to have 1 14%

505010/12/2009 5050- 50
1111111111150
-505050 - 50 -50
505011 22131
51515151

Not interested 2 29%

General stores

Have activation
Interested to have
Not interested

Conclusion: Majority already has Airtel connection and only 14%of total 7 shops are
interested in keeping Airtel for selling.

C. STD/PCO (out of 12)

Reply of respondents No. of respondents Percentage of respondents


Have activation 5 42%
Interested to have 1 8%

515110/12/2009 5151- 51
1111111111151
-515151 - 51 -51
515111 22131
52525252

Not interested 6 50%

STD/PCO

Have activation
Interested to have
Not interested

Conclusion: Majority of the STD/PCO i.e. 50 %are not interested in investing on


selling Airtel connection. Out of 12,5shops already provide with Airtel connection
service.

D.Others (out of 6)

Reply of respondents No. of respondents Percentage of respondents


Have activation 2 33%

525210/12/2009 5252- 52
1111111111152
-525252 - 52 -52
525211 22131
53535353

Interested to have 1 17%


Not interested 3 50%

Others

Have activation
Interested to have
Not interested

Conclusion: In other category shops like gift shops etc. majority is in favor of not
keeping Airtel connection i.e. 50%. And only 17% are interested to keep Airtel
connection with them out of 6.

E. Telecom (out of 57)

Reply of respondents No. of respondents Percentage of respondents


Have activation 50 88%

535310/12/2009 5353- 53
1111111111153
-535353 - 53 -53
535311 22131
54545454

Interested to have 5 9%
Not interested 2 3%

Telecom

Have activation
Interested to have
Not interested

Conclusion: Majority of telecom retailers i.e. 88%already have Airtel connection


with them and 9% are interested to have while the remaining 3% showed no
interest in keeping the connection.

F. Stationary ( out of 7)

Reply of respondents No. of respondents Percentage of respondents

545410/12/2009 5454- 54
1111111111154
-545454 - 54 -54
545411 22131
55555555

Have activation 4 57%


Interested to have 0 0%
Not interested 3 43%

Stationary

Have activation
Interested to have
Not interested

Conclusion: in this category 57% already had Airtel connection and the remaining
were not interested to keep i.e. 43%.

Area 2: Rohini sector 15, 17 and 18


SAMPLE SIZE: 81

555510/12/2009 5555- 55
1111111111155
-555555 - 55 -55
555511 22131
56565656

Type of shops (out of 81)

Type Total number Percentage


Chemist 9 11%
General Store 8 10%
STD/PCO 4 5%
Telecom 48 59%
Others 10 12%
Stationary 2 3%

Type of shops

Chemist
General Store
STD/PCO
Telecom
Others
Stationary

Conclusion: Majority of the shops covered are the telecom shops at around 59%,
next are the others, chemist and general stores with 12%, 11% and
10%respectively and next are the Std/PCO with 5% and with least share are the
stationary with only 3%.

Detailed description

A.Chemist (out of 9)

Reply of respondents No. of respondents Percentage of respondents


Have activation 3 33%

565610/12/2009 5656- 56
1111111111156
-565656 - 56 -56
565611 22131
57575757

Interested to have 1 11%


Not interested 5 56%

Chemists

Have activation
Interested to have
Not interested

Conclusion: Majority of chemists are not interested in investing on selling Airtel


connection. Only 11%are interested in keeping Airtel for selling.

B. General stores (out of 8)

Reply of respondents No. of respondents Percentage of respondents


Have activation 3 38%
Interested to have 2 24%
Not interested 3 38%

575710/12/2009 5757- 57
1111111111157
-575757 - 57 -57
575711 22131
58585858

General stores

Have activation
Interested to have
Not interested

Conclusion: Majority of them are not interested in investing on selling Airtel


connection. Only 24%are interested in keeping Airtel for selling.

C. STD/PCO (out of 4)

Reply of respondents No. of respondents Percentage of respondents


Have activation 1 25%
Interested to have 1 25%
Not interested 2 50%

585810/12/2009 5858- 58
1111111111158
-585858 - 58 -58
585811 22131
59595959

STD/PCO

Have activation
Interested to have
Not interested

Conclusion: As there are only 4 STD/PCO in this area. So 1 of them is already


having Airtel connection and 1 is interested in keeping it and other 2 are not.

D.Telecom (out of 48)

Reply of respondents No. of respondents Percentage of respondents


Have activation 40 84%
Interested to have 3 6%
Not interested 5 10%

595910/12/2009 5959- 59
1111111111159
-595959 - 59 -59
595911 22131
60606060

Telecom

Have activation
Interested to have
Not interested

Conclusion: Majority of telecom retailers i.e. 84% already have Airtel connection
with them. Out of remaining 5 are not interested while 3 are interested to keep
Airtel connection with them.

E. Others (out of 10)

Reply of respondents No. of respondents Percentage of respondents


Have activation 5 50%
Interested to have 1 10%
Not interested 4 40%

606010/12/2009 6060- 60
1111111111160
-606060 - 60 -60
606011 22131
61616161

Others

Have activation
Interested to have
Not interested

Conclusion: In this category only one shop was interested in having Airtel
connection. Out of 10, 5 already had Airtel connection and the remaining 4 were
not interested.

F. Stationary (out of2)

Reply of respondents No. of respondents


Percentage of respondents
Have activation 1 50%
Interested to have 0 0%
Not interested
1 50%

616110/12/2009 6161- 61
1111111111161
-616161 - 61 -61
616111 22131
62626262

Stationary

Have activation
Interested to have
Not interested

Conclusion: In this area out of 2 stationeries, 1 already had Airtel connection while
the other was not interested.

Area 3: Rohini sector 9, 13, 14 and Prashant Vihar


SAMPLE SIZE: 85

Type of shops (out of 85)

Type Total number Percentage


Chemist 6 7%
General Store 4 5%

626210/12/2009 6262- 62
1111111111162
-626262 - 62 -62
626211 22131
63636363

STD/PCO 13 15%
Telecom 47 55%
Others 9 11%
Stationary 6 7%

Type of shops

Chemist
General Store
STD/PCO
Telecom
Others
Stationary

Conclusion: Majority of the shops covered in this area also are the telecom shops
at around 55%, next are the STD/PCO and others with 15% and 11% respectively,
next are chemists and stationary with 7% each and with least share are the general
store with 5%.

Detailed description

A.Chemist (out of 6)

Reply of No. of
respondents respondents Percentage of respondents
Have activation 3 50%
Interested to have 1 17%
Not interested 2 33%

636310/12/2009 6363- 63
1111111111163
-636363 - 63 -63
636311 22131
64646464

Chemist

Have activation
Interested to have
Not interested

Conclusion: 50% i.e. 3 out of 6 already had Airtel connection and 2 responded
negatively while 1 was interested to have the Airtel connection.

B. General store (out of 4)

Reply of No. of
respondents respondents Percentage of respondents
Have activation 0 0%
Interested to have 3 75%
Not interested 1 25%

646410/12/2009 6464- 64
1111111111164
-646464 - 64 -64
646411 22131
65656565

General stores

Have activation
Interested to have
Not interested

Conclusion: Majority of them i.e. 75% were interested in selling Airtel


connection while the remaining shops were already selling Airtel connection.

C. STD/PCO (out of 13)

Reply of respondents No. of respondents Percentage of respondents


Have activation 8 62%
Interested to have 2 15%
Not interested 3 23%

656510/12/2009 6565- 65
1111111111165
-656565 - 65 -65
656511 22131
66666666

STD/PCO

Have activation
Interested to have
Not interested

Conclusion: 62% already have Airtel connection in this category and 23% are not
interested to keep Airtel connection and the remaining 15% showed interest.

D.Telecom (out of 47)

Reply of respondents No. of respondents Percentage of respondents


Have activation 35 74%
Interested to have 3 7%
Not interested 9 19%

666610/12/2009 6666- 66
1111111111166
-666666 - 66 -66
666611 22131
67676767

Telecom

Have activation
Interested to have
Not interested

Conclusion: Majority of the telecom shops i.e. 74% already have activation and from
the remaining 19% were not interested while 7% were interested to have the Airtel
connection.

E. Others (out of 9)

Reply of respondents No. of respondents Percentage of respondents


Have activation 4 45%
Interested to have 2 22%
Not interested 3 33%

676710/12/2009 6767- 67
1111111111167
-676767 - 67 -67
676711 22131
68686868

Others

Have activation
Interested to have
Not interested

Conclusion: 4 out of 9 i.e. 45% were already selling Airtel connection while other
33% were not interested to have and the remaining 2 were interested to have the
connection.

E. Stationary ( out of 6)

Reply of respondents No. of respondents Percentage of respondents


Have activation 4 67%
Interested to have 0 0%
Not interested 2 33%

686810/12/2009 6868- 68
1111111111168
-686868 - 68 -68
686811 22131
69696969

Stationary

Have activation
Interested to have
Not interested

Conclusion: 67% of stationary in this area were already having Airtel connection
while the remaining 33% were not interested.

696910/12/2009 6969- 69
1111111111169
-696969 - 69 -69
696911 22131
70707070

General Overview of Feedback

 Customer diversification from Airtel is increasing in regular basis due to


increase in service complaints.
 Idea and Hutch giving better schemes and margin than Airtel.
 Need quick services to increase sales.
707010/12/2009 7070- 70
1111111111170
-707070 - 70 -70
707011 22131
71717171

 More and vast visibility of Hutch and Idea boards and advertisements which is
improving their promotion and branding.
 Many telecom retailers want the detailed description of incentives given to
them i.e. on what basis and on how much activation. Here lot of comparison is
being made with Hutch as they are providing with detailed description of
when and why of incentives.
 Customer demand is high for Airtel but due to services complaints, less
advertisements and claims issues the retailers are diverting the customers to
Hutch and Idea.
 Airtel is still ruling in sales as compared to others but through better
promotion, schemes and less claims issues. Hutch is emerging as second best.
So need to take actions for it.
 Customer diversification from Airtel is increasing in regular basis due to
increase in activation complaints.
 Network of Airtel is better than any other telecom services.
 New schemes are not properly being conveyed to the retailers, so they are
facing problem of no responses to customer queries.
 Customer diversification from Airtel is increasing in regular basis due to
increase in delay of retailer incentive.
 Board and advertisements are required in many shops. It is been observed that
many shop[s don’t even have normal banner of Airtel in their shop in spite of
demanding of long.
 Schemes in Airtel and tariff plans are expensive than other telecom services.
 Lot of technical problems are complained here due to that retailers
dissatisfaction is increasing, also immediate services are not provided by the
department from Airtel.
 There is different tariff plan for different connection in Airtel, that frustrates
customers
 There is large number of rejection rate for taking up any new kind of business
in the non- telecom shops this is due to lack of awareness and scarcity of
resources in this area.

717110/12/2009 7171- 71
1111111111171
-717171 - 71 -71
717111 22131
72727272

 Idea is provided with better schemes and Idea sale services are quickest
among all in this area.
 Claim problem is the major issue in this area.
 Mainly youth customers are attracted by H- card (Hutch) and I- card (of Idea)
as compared to Yuva (Airtel) in this area.

727210/12/2009 7272- 72
1111111111172
-727272 - 72 -72
727211 22131
73737373

Limitations

o The samples were taken on the basis of convenience sampling which may
bring element of error.
o Samples were only taken from Rohini area.
o Survey times are as such that maximum shop owners or respected persons
were not available for survey. So, through contact basis survey is done.

737310/12/2009 7373- 73
1111111111173
-737373 - 73 -73
737311 22131
74747474

o The sample size is very small and the result of research cannot be expralated
to the entire population.

747410/12/2009 7474- 74
1111111111174
-747474 - 74 -74
747411 22131
75757575

Recommendations

 Airtel should focus more on promotion and advertising part as areas which are
surveyed have very less awareness about the schemes and all.
 Working of sales department should be more flexible as complaints regarding
incentives and claims are being observed.

757510/12/2009 7575- 75
1111111111175
-757575 - 75 -75
757511 22131
76767676

 Major threat from hutch and Idea are seen as hutch is providing with quick
sales facilities, excellent communication network and high promotion whereas
Idea is giving very economical schemes and connectivity. So, to decrease
customer diversification and to maintain the brand name of the company
better communication network should be established between sales
management and the retailers by attending their complaints properly, giving
timely and verified incentives, increase in manpower, taking regular feedback.
 By mismanagement on behalf of the distributor side also many retailers
grievances are increasing, complete check on workings on distributors should
be done.
 Majority of STD/PCO shops showed interest in having Airtel connection. So
priority should be given to them, all their needs and demands should be
thoroughly taken into consideration.
 Better schemes for dealers/ retailers so that they can be able to develop self
interest and they could try their level best to make more and more sale which
would lead benefit to dealers and company as well.
 Brochures and catalogues should be made available.
 More claim margins: the dealers have this issue that working in a small
margins is not acceptable to them i.e. just 2.47% margin is not much it should
be increased so that the dealers also be able to make some more profits.

767610/12/2009 7676- 76
1111111111176
-767676 - 76 -76
767611 22131
77777777

Conclusion

The basic and to the point conclusion of the above discussed issue is that the
company can make more and more profits only when it can satisfy all its customers,

777710/12/2009 7777- 77
1111111111177
-777777 - 77 -77
777711 22131
78787878

dealers and distributors in order to do that the company should agree with all their fair
suggestions and make them happy.
If workers will be happy and satisfy then they will make sincere efforts to achieve
their targets and increase the sales of the company.

787810/12/2009 7878- 78
1111111111178
-787878 - 78 -78
787811 22131
79797979

Bibliography

Books

797910/12/2009 7979- 79
1111111111179
-797979 - 79 -79
797911 22131
80808080

 Marketing Research by Naresh K. Malhotra


 Marketing Management by Philip Kotler

Websites

 www.google.com
 www.hutch.co.in
 www.wikepedia.com
 www.coai.com

Company information

 www.airtel.com
 www.airtelworld.com
 Teleworld magazines
 Pamphlets from various retailers

808010/12/2009 8080- 80
1111111111180
-808080 - 80 -80
808011 22131
81818181

QUESTIONNAIRE
WALLET SHARE OF AIRTEL IN DELHI MARKET

818110/12/2009 8181- 81
1111111111181
-818181 - 81 -81
818111 22131
82828282

Dear Sir/ Madam,


We believe that you are the spokesman for thousands of persons who are in telecom
industry in Delhi and since we are interested in knowing the performance of AIRTEL
in Delhi in that we ask for your help. We believe that this survey would help in
evolving wallet share of AIRTEL in the market of Delhi. Would you please,
therefore, answer the enclosed questionnaire?
The information supplied by you will be treated as strictly confidential.

NOTE: Please tick (√) the option, which you find appropriate
This is the survey regarding the evaluation of wallet share of Airtel in Delhi

Q1 Do you keep TELECOM connections?

Yes

No

Q2 Which Telecom company products (NEW ACTIVATION SIMS) do you


keep in your shop to sell to consumers?

Airtel Tata

Hutch Dolphin

Reliance Idea

Q3 If yes, then please indicate your level of activation in your shop per month
for each available services given below depending upon on your response:-

S. No. SERVICES 0-3 3-7 8-15 16-25 25-50 50+


1: AIRTEL
2: HUTCH
3: IDEA
4: TATA
INDICOM
5: RELIANCE
6: MTNL

828210/12/2009 8282- 82
1111111111182
-828282 - 82 -82
828211 22131
83838383

Q4 If no, then are you interested in having AIRTEL connections with you now?

Yes
No

Q5 If yes, are you interested in having:-

j) Activation
k) Recharge
l) Both

Q6 Rank your choice of telecom service providers in w.r.t their performance(1-


most preferred, 2- preferred, 3- neutral, 4- less preferred, 5- least preferred, N.P- not
preferred at all):-

ATTRIBUTES Airtel Idea Hutch Tata Reliance


Indicom
Max customer
demand is for
Value for money
F.O.S service
Activation
complaints
Claim disbursement

Q7 According to you, which company connection faced the highest decline in


past three months? If it’s AIRTEL then why?

Q8 Please mention the area’s that you would like AIRTEL to improve on its
product and services.

838310/12/2009 8383- 83
1111111111183
-838383 - 83 -83
838311 22131
84848484

PERSONAL DETAILS

We would like to know you better:

Name:

Age:
Contact no. (Shop)

(Mobile)

Shop Address:

• Cost efficiency

Date of visit:

Type of shop:

848410/12/2009 8484- 84
1111111111184
-848484 - 84 -84
848411 22131