PROJECT REPORT On Marketing strategies at Aircel and its impact on the perception of Aircel Cellular Services

Submitted By
Name: Zeeshan Khan Batch & Section: WS/ISBE-B (2011-2013) Student ID: D1113WSISBEPGP10115(DEL-4-$-3363) Area of Research: Marketing Internship start and finish dates: 12th Dec 2011 to 31st Jan 2012

ACKNOWLEDGEMENT

Undertaking any project in life proves to be a milestone in more ways than one. Its successful completion relies on a myriad people and their priceless help. I am deeply indebted to all who have inspired, guided and helped me in the successful completion of the project. I owe debt of gratitude to them, who were so generous with their valuable time and expertise. Through this acknowledgement I express my sincere gratitude towards all those people who helped me in this project, which has been a learning experience. I am thankful to my guide and mentor Prof. Dipti Sharma for guiding me throughout this study without their help this thesis would have not be completed. I appreciate the co-ordination extended by my friends and also express my sincere thankfulness to the entire faculty members of Indian Institute of Planning & Management, Delhi, giving me the opportunity to do this project/study and also assisting me for the same.

TABLE OF CONTENT

Topics
Title page Completition certificate from the company Acknowledgements Table of contents Executive summary Introduction Research objectives and methodology Aircel - Company Overview Primary findings and analysis Conclusion & Recommendations Bibliography Annexure

Page No

1 2 3 4 12 14 24 35 42 43

EXECUTIVE SUMMARY

The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations .During this period, the company gained a foothold in 9 circles.

The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East).Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility company in Businessworlds List of Best Mid-Size Companies in 2007. Additionally, Tele.net recognised Aircel as the best regional operator in 2008.With over 15 million customers in the country, Aircel, the fastest

growing telecom company in India, has revved up plans to become a full-fledged national operator

INTRODUCTION OF THE TOPIC

India's telecommunications market is amongst the highest-potential markets globally, marked by deregulation and rapid growth. Its cellular market alone is growing at 60% annually. This demand will only accelerate as new technologies emerge to make new services possible. Idea plans to grow its telecom business both in terms of geographical reach and in terms of the products and services we will offer. The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Accordingly, India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers.

INDIAN CELLULAR MARKET The Bharti Group, which operates in 23 circles, continues to be the country's largest cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriber base at the end of the fiscal ending March 31, 2007, displacing Vodafone from the second position. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi, BSNL has been a very aggressive player in the market. "Cellular operators who expected BSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it, till it was too late in the day," said a telecom analyst.

TELECOMMUNICATION MARKET IN INDIA Technological changes in the telecom and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom based technological innovations. In order to exploit these innovations for competing in global markets, business community the world over has been putting pressure on governments to revise the policy, regulation and structure of the telecom sector. Several countries across the world have responded by restructuring the state controlled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures. Over the past several years, developing countries have also recognized the important role a responsive, business oriented and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now accept the limitations of a monolith state monopoly in responding to the

twin challenges of spurring internal growth and competing in an increasingly global economy. Past experience of reform across many countries suggests that the fundamental underlying issue that must be addressed in telecom reform is introduction of competition for efficiency. Competition is considered to be an important factor than ownership in introducing efficiency. India's 21.59 million-line telephone network is one of the largest in the world and the 3rd largest among emerging economies (after China and Republic of Korea). Given the low telephone penetration rate India offers vast scope for growth. It is therefore not surprising that India has one of the fastest growing telecommunication systems in the world with system size (total connections) growing at an average of more than 20 percent over the last 4 years. The industry is considered as having the highest potential for investment in India. The growth in demand for telecom services in India is not limited to basic telephone services. India has witnessed rapid growth in cellular, radio paging, value-added services, internet and global mobile communication by satellite (GMPCS) services. This is expected to soar in the next few years. Recognizing that the telecom sector is one of the prime movers of the economy, the Government's regulatory and policy initiatives have also been directed towards establishing a world class telecommunications infrastructure in India. The telecom sector in India therefore offers an Aircell environment for investment. The telecommunications initiative in the country is lead by Ministry of Communications through the Department of Telecommunication &

Department Telecom Services and its undertakings for provision of basic telephone services, national and international long distance communications, manufacture of complete range of telecom equipment, research and development, and consultancy services. The Telecom Commission performs

the Executive and Policy making functions. The Telecom Regulatory Authority of India performs the functions of an independent regulatory body. Indian Telecom Sector To Be Most Vibrant In 2010 In 2010 we believe that Indian Telecom industry expects to continue with its fast pace of subscriber additions, at least 11 million per month, launch of 3G and WiMAX spectrum, while tariff would continue to slide during the year. The industry having crossed the 500 million subscriber mark earlier in September 2009 itself, the next milestone would be 750 million. (Global research and analysis firm Gartner, in a recent study, estimates Indian mobile users to touch 771 million by 2013). However, this would be a long way off, even though subscriber addition is expected to continue at fast pace in 2010 as companies expand networks to rural areas and new firms commence operations. 3G One of the main catalysts for growth would be the launch of 3G and WiMAX spectrum, expected to take place by mid-January. 3G, or third generation telecom services, would result in addition or more subscribers as they would bring in a host of data-enabled services to the industry, and growth would come in from both voice and data. WiMAX Additionally, Department of Telecommunications (DoT) had announced the simultaneous auction of WiMax spectrum that would result in adding of additional data-enabled customers on telecom networks. A host of telecom operators are expected to join the bandwagon for WiMax spectrum.

Tariffs Cheap call tariffs and mobile handsets were other factors that drove demand in 2009, and telecom companies are expected to continue price was both in call rates and instruments in 2010. This, according to industry analysts, will result in telecom sectors exponential growth. The industry also expects launching of innovative and customer friendly schemes like the one second billing in 2010. These schemes would continue to help in improving tele-density and penetration of telecom services in rural and semi-urban areas in the country. Infrastructure operators The year 2010 would be that of the infrastructure players. Apart from an expected consolidation in the sector, the infrastructure majors will increase the pace of tower rollout across all the 22 circles in the country. Bandwidth An expected increase in bandwidth landing in the country, with telecom companies are laying more submarine cables, would also benefit the industry. This would be beneficial to bandwidth-intensive sectors like BPO, IT and banking. The industry expects telecom companies to launch terrestrial cables with 50 GB capacities each, to be hiked depending on demand. This coupled with a planned increase by operators this year and next year, would also result in an increase in capacity landing at Indian shores. Group Overview Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of bicycle parts to one of the largest and most respected business groups in India. With its entrepreneurial spirit and passion to undertake

business projects that are transformational in nature, Bharti has created worldclass businesses in telecom, financial services, retail, and foods. Bharti started its telecom services business by launching mobile services in Delhi (India) in 1995. Since then there has been no looking back and Bharti Aircel, the group's' flagship company, has emerged as one of the top telecom companies in the world and is amongst the top five wireless operators in the world. Through its global telecom operations Bharti group has presence in 21 countries across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. Over the past few years, the group has diversified into emerging business areas in the fast expanding Indian economy. With a vision to build India's finest conglomerate by 2020 the group has forayed into the retail sector by opening retail stores in multiple formats - small and medium - as well establishing large scale cash & carry stores to serve institutional customers and other retailers. The group offers a complete portfolio of financial services - life insurance, general insurance and asset management - to customers across India. Bharti also serves customers through its fresh and processed foods business. The group has growing interests in other areas such as telecom software, real estate, training and capacity building, and distribution of telecom/IT products. What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the years some of biggest names in international business have partnered Bharti. Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa Group is the partner for the financial services business and Del Monte Pacific for the processed foods division.

Bharti strongly believes in giving back to the society and through its philanthropic arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in India.

Mobile Strategy

Capture

maximum

telecommunications

revenue

potential

with

minimum geographical coverage to maximise its revenues and margins. Build high quality mobile networks by deploying state-of-the-art technology to offer superior services.

Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles.

Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles.

Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.

The Indian telecommunications Network with 250m telephone connections is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Accordingly, India requires incremental investments of USD 20-25 bln for the next five years. Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India. With more than 33 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry. Given
10

the current growth trends, cellular connections in India will surpass fixed line by late 2004/early 2005. Intense competition between the four main private groups - Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL and MTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the consumers. The Government has played a key enabling role by deregulating and liberalizing the industry, ushering in competition and paving the way for growth. While there were regulatory irregularities earlier, resulting in litigation, these have all been addressed now. Customs duties on hardware and mobile handsets have been reduced from 14 percent to 5 percent. The Indian government has merged the IT and Telecom Ministries to speed up reforms and decision on the Communication Convergence Bill to enable the common regulation of the Internet, broadcasting and telecoms will be taken after the new Government assumes responsibilities in may this year. An independent regulatory body (TRAI) and dispute settlement body (TDSAT) is fully functional.

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RESEARCH METHODOLOGY

DATA COLLECTION INSTRUMENTS:My project on Marketing strategies at Aircel and its impact on the perception of Aircel Cellular Services has been a representation of the analysis done on the data collected from different sources. The data collected by me is of two types. Primary Data:Under this head comes the data which was collected by designing separate questionnaire for existing as well as prospective customers. The questionnaire was finalized after much changes and modification and every care was taken to make it more presentable. The medium of collecting the data was through indepth interview method which was followed both for existing and prospective customers. The interview was based on a structured pattern of question

included in the questionnaire, to be asked by the respondent. It was to get a detailed information form respondent about Reliance life Insurance. Secondary Data:Under this head comes the data which was collected through The database of existing customers which Bharti Aircel Limited. already had maintained. The website of Bharti Aircel Limited. The just dial in services.

In the present telecommunication sector scenario, when Aircel is launching new tariff plans every fortnight. It is quite difficult for other private players to keep their customers happy My project sample was 100 respondents.

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Limitation I have to work under time constraint due to my present job, so I have got a less time to complete the project. The respondents were mostly college going students; low understanding of knowledge was there. The respondents were discussing the questions prior to reply thus there could be biasness. Different promotional schemes offered by different companies were not known by the respondents. Every attempt will be taken to obtain the error free and meaningful result but as nothing in this world is 100% perfect I believe that there will still the chance for error on account of following limitations1. Respondents unavailability. 2. Time pressure and fatigue on the part of respondents and interviewer. 3. Courtesy bias.

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COMPANY OVERVIEW The Aircel group is a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited, whose shareholders are the Reddy family of Chennai, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader - a position it has held since. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. Now, the company has completed rollout in all 23 telecom circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal, Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West), UP(East), Maharashtra & Goa , Mumbai, Haryana , Madhya Pradesh, Punjab, Gujarat and Rajasthan. Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility company in Businessworld's 'List of Best Mid-Size Companies' in 2007. Additionally, Tele.net recognised Aircel as the best regional operator in 2008. With over 50 million happy customers in the country, Aircel is a full-fledged national operator.

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Our world The Aircel Group is a result of alliance between Maxis Communications Berhad of Malaysia (74% equity) and Sindya Securities & Investments Private Limited (26% equity). The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast subscriber base in India. Aircel has a vision of delighting its customers by giving them the respect they deserve. Our goal is to provide our customers with exemplary service and persistently look for new ways to surpass their expectations.

Aircel commenced operations in 1999. In our first decade of operations, we concentrated on building our foundations in the southern part of the country, and soon emerged as the regional market leaders. We worked hard and achieved that success by remaining focused on growth opportunities. Soon after our company began with its expansion in 2005 and has now set its sight on becoming a pan India operator. Our project pipeline is robust, allowing for sustainable long-term growth. In addition to our leadership position in Tamil Nadu, Aircel met with extraordinary success in the Eastern frontier circles. We pride ourselves on customer satisfaction and managed to emerge as the market leaders in Assam and North Eastern states wit hin 18 months of operations. During this

period, our company gained a strong foothold in 10 circles, to provide better access to our customers. Today, Aircel operates in 18 telecommunication circles and the company is ready to embark on a dynamic expansion plan, swiftly rolling out in new circles in the near future. Aircel recognizes the tremendous growth in its customer base. We have also got an authorization from the Department of Telecommunications for ILD and

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NLD telephony services and are now on track to realize our dream of becoming a nationwide player by the year 2010. Aircel offers its customers, services and products that are easy to understand and use. All offerings are stimulating and at the same time extremely unique as Aircel continues to re-invent itself constantly to deliver the best and most upto-date services. The brand instils a felling of pride, confidence and reliance among all stakeholders by anticipating their desires and fulfilling the same efficiently. With our foundations deeply set on our brand vales of simplicity, creativity, trust and excitement, we will continue to deliver superior services to our customers and will do our best to live up to their high expectations. About Maxis Communications Berhad Maxis Communications Berhad is a leading mobile communications service provider in Malaysia that started operations in the year 1995. Maxis' vision is to bring superior communication services to enhance its customers' lives and businesses, in a manner that is simple and personalized, by efficiently and creatively harnessing leading edge technology, and delivering a brand of service experience that is reliable and enchanting. Since its inception, Aircel has strived to provide the best of features and services to its customers. It is this passion and enthusiasm that has helped us grow leaps and bounds from what started as operations in Tamil Nadu in 1999, to a pan-India presence across 18 circles today. Aircel has also been recognized for its consistent and reliable efforts, receiving the highest rating for overall customer satisfaction and network quality by Voice and Data in 2006, an accolade given to only a select few. We succeeded in keeping our promises to our customers as we were recognized for the same award by IDC in 2007.

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Aircel emerged as the top mid-size utility company in Businessworld's 'List of Best Mid-Size Companies' in 2007. Additionally, we have also been recognised as the best regional operator by the Tele.net Publication in 2007 and have been honoured by CMAI INFOCOM for excellence in marketing of new telecom service in 2009. Thanks to our loyal customers, we have been rated as one of the most admired mobile service brand in a pan-India survey conducted in Sep'09. Aircel today has reached a subscriber base of 46 million plus and is still going strong. Rest assured Aircel's commitment to providing you with the best of services and features will be an ongoing endeavour. Aircel has multiple and convenient store locations throughout the country. We provide sales and support through one of the largest and most extensive networks of stores. Feel free to drop by and we'll be happy to assist you with anything you may require. For more information on a particular city we serve, please choose from the list of Aircel store locations below CSR policies At Aircel, we continually pursue healthy corporate citizenship. Our aim is not to merely discharge social responsibility, but conduct business in a manner which reinstates respect for people, communities and the environment. We emphasize on an inclusive work culture to appreciate differences and believe engagement with our employees is quintessential for an effective CSR plan. We share adequate information on the organizations vision and CSR initiatives, because it promises healthy operations and subsequently adds to the overall quality of life. This motivates the employees and their family members to contribute to society. Aircel maintains integrity and respect in its interactions with its stakeholders, customers, retailers, investors, NGO partners and the government. We are
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careful in not partnering with any PR / communication that induces distrust in the sincerity of our efforts. Our stringent belief in delighting customers with good products and services helps build a strong relationship. Aircel is always proactive in supporting NGOs and NPOs. We extend all possible assistance to their projects for a minimum of 3 to 5 years and thereafter support new projects. Besides, we aim at continual involvement with our business partners and the government for economic and social development of the underprivileged. Aircel engages external audit agencies to guarantee authenticity, and maintains and monitors an external profile of the CSR activities which are shared with the stakeholders in the annual reports and websites. We incorporate the CSR policies in our core business to ensure ethical business practices in all the functions to harness a healthy society. Sponsorships In India sports are not just about recreation, they are about skill, passion and recognition. Aircel has adopted a progressive policy of encouraging sports by sponsoring teams and tournaments to provide opportunities and facilities to upcoming young talent and to help create champions of the future. Businesses and society are interdependent, thus sponsoring sporting activities gives Aircel the opportunity and platform to interact with our stakeholders and helps us maintain a warm relationship with our customers. Cricket Indian Premier League Cricket fever is a welcome epidemic for any Indian. The Indian Premier League and Aircel have become synonymous with the sports loving public of Chennai and Tamil Nadu, as Aircel is currently the proud team sponsor of the Chennai Super Kings.
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One of the favorites at the tournament, the team Chennai Super Kings, is captained by Mahendra Singh Dhoni and includes many other renowned players like Matthew Hayden, Michael Hussey, Suresh Raina and Albie Morkel Being allied with the team via this exciting and unique sponsorship opportunity, Aircel is proud to be associated with one of the most prestigious and successful cricketing events of the decade. more... World Cup Every four years, a billion people have only one thing on their minds; cricket. The country buzzes with cricket talk; the pros and cons of each team, the conditions of the stadiums, the weather, the fairness of the umpires; if its not cricket, its not news. We at Aircel are as passionate about cricket as you are. Which is why this World Cup, we bring to you a range of entertaining activities to keep you occupied when there are no matches to watch. more... Aircel Chennai Open The game of tennis enjoys a considerable following in India, thanks to the achievements of some of the leading Indian players. Aircel has associated itself with this game with a spirit of patriotism, love of the motherland and homegrown roots. The company aims at contributing greatly towards strengthening Indias position and enhancing the prestige of this sport internationally. The 2011 Aircel Chennai Open is the only ATP tennis tournament in India, the tournament played on outdoor hard courts. The current season is the 16th edition of the Chennai Open, and part of the 250 series of the 2011 ATP World Tour. more...

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Professional Golf Tour of India India bags the honor of being the first country outside Britain to adopt the game of Golf. Today Indian players are playing at international levels and winning many accolades.

The Indian professionals created the entity, 'Professional Golf Tour of India (PGTI)' with the key objective of nurturing and maintaining high standards of professionalism in the game by supporting the national and international tours. By sponsoring this tournament Aircel aims at being involved in nurturing and maintaining a high standard of professional golf in India. National Tenpin Bowling Team Championship Aircel is proud to be sponsoring the NTBTC in 2011. This is the second year of our successful partnership with the Tenpin Bowling Federation of India. We are very excited about the tournament this year and are sure there will be some very interesting games. Bowling is a popular sport the world over however it has only recently come into the limelight in India. It is getting more exposure thanks to the rising number of bowling lanes now present in most cities. The top priority of the Tenpin Bowling Federation is spreading tenpin bowling among the youth and strengthening its structure. Being allied with the Federation via this exciting sponsorship opportunity, Aircel is proud to assist in taking that goal to fruition more... Lakme Fashion Week Lakme Fashion Week is India's most prestigious fashion and trade event. Now, entering its second decade, LFW continues to redefine the future of Indian fashion and provide a platform to integrate India into the global fashion world. This year, the Summer/Resort 2011 showcase will be held from March 11 20

March 15, 2011 at the Grand Hyatt, Santacruz East, Mumbai.Aircel will be part of LFW for the second consecutive year as the Associate sponsor. A key highlight this year will be the Aircels association with leading designer Sabyasachi for a collection based on the Save Our Tigers theme, a CSR initiative from Aircel Aircel Business Solutions Technology related business solutions are an indispensable part of trade and commerce in todays marketplace. These business solutions aim at generating value for consumers by effectively utilizing technology to advance their day to day processes. Today every company needs unique technology related solutions specific to their individual environment. Keeping the same in mind, Aircel offers a comprehensive range of business related applications to empower every aspect of your business. Our business enhancement solutions are aimed at generating profitable results for your enterprise. Our products ranging from premium internet services, E-Conferencing, MPLS VPN and Smart Stream provide a gamut of services that will support your needs. Let us assist you in implementing innovative business solutions customized to your needs and make your day to day business processes more efficient by simplifying your busy world.

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S.W.O.T ANALYSIS OF THE ORGANIZATION

STRENGTHS: Aircel has its brand image and its ranking is 2nd in world. so here one thing is conform that Aircel has good network and outstanding services thats why its users are most after china mobiles. At gave some special packages to the to attract customers. it can offer international roaming facility more than any network in India. Financially Aircel is strong and is able to invest heavy amount in India. WEAKNESS: It has to take license from TRAI and act according to rules of India due to which it may not give its special services like 3G video calling and call to someone by hiding your phone number.

OPPURTUNITIES: Aircel can capture Asian market if it can grow more in India ,62% of

population of India is young and mobile phones are most commonly used by young ones. Demo graphs of India tell us that in this company India can earn heavy amount of revenue. So there is space for market penetration. if Aircel offers some special packages for limited time then customer of other networks may switch. Aircel have better technology so it can capture the customers of the other networks as well. With India Aircel can capture Asia as well because of population or demography of India.

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THREATS: The current recession in market is not good for any kind of business including telecommunication. Five cellular companies are already working in India. The situation in is not good especially political and peace. There are a lot of uncertainties in the country.

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DATA ANALYSIS AND INTERPRETATION 1.) WHAT IS USE OF MOBILE PHONE IS AGE GROUP?

16-20

21-25

26-30

31-35

above 36yrs

15

33

49

40

35

30

25

20

15

10

0 16-20 21-25 26-30 31-35 above 36yrs

From the above pie chart we can see that most of the respondents falls within the age group of 25- 30 yrs , closely followed by the 21- 25 yrs segment. There were no respondents in the age group of above 36 years.

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2.) SEX WISE MALE M 60 FEMALE F 40

60
60 50

40
40 30 20 10 0 Male Female

The above diagram depicts that there were 60 male respondents and 40 female respondents for my sample questionnaire. Out of the 62 male respondents only one respondent of the age group16- 20 yrs said that he does not possesses a mobile phone.

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3.) DO YOU HAVE A MOBILE PHONE? Yes 97 No 3

97

Of all the respondents only one person did not had a mobile phone , where as all other respondents had a mobile phone. The person not having a mobile phone was a male respondents and was within the 16-20 yrs of age group

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4.) WHICH MOBILE CONNECTION DO YOU HAVE? A Aircel VD Vodafone ID IDEA REL RELIANC E 53 30 17 1 O T 2 OTHERS

60

50

40

30

20

10

0 Airtel Vodafone Idea Reliance Others

Out of the total 100 respondents who possessed a mobile phone, 50 respondents had Aircel connection, followed by Aircel with 30 respondents. Only 2 of the respondents had a Dolphin connection which is owned by MTNL.

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5.) DO YOU HAVE A POST PAID OR A PRE PAID CONNECTION? PRE PRE-PAID POST POST- PAID

95

95

From the sample respondents it was found that all that of 98 respondents out of total 100 respondents had a prepaid connection. While only 2 people said to have a post paid connection, out of which 1 said that the post paid connection was provided by their office.

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6.) WHY HAVE YOU CHOSEN AIRCEL AS YOUR CONECTION PROVIDER? A Better Service B Good Connectivit y 28 59 30 21 11 C Easy Availability D Low Tariffs E Others

60

50

40

30

20

10

0 Better Sarvice Good Connectivity Easy Availability Low Tariffs Others

From the above line graph we see that the respondents has rated ``good connectivity ``as the most important factor which has urged them to take them Aircel connection, followed by low tariffs, and better service. Also quite a number of persons have said that they took Aircel connection because of no hidden cost and they get connectivity anywhere and also great coverage on roaming.

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7) ARE YOU SATISFIED WITH YOUR CONNECTION?

SATISFIED 75

DIS SATISFIED 25

25

75

Out of total 100 Aircel customers 75 of the respondents said that they are totally satisfied with their present Aircel connection. While only 25 respondents said they are not satisfied because of the talk time value they get. Some said they want to try out Aircel `` Aise Azadi Aur Kahan ``.

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8) DOES AIRCEL OFFER BETTER SERVICE THAN OTHERS? Yes 93 No 7

93

Though 93 respondents were unhappy with the Aircel connection, but surprisingly they too cannot come across the fact that Aircel provides better service than other service providers.

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9) RATING OF DIFFERENT PARAMETERS CONNECTIVITY 17 TARIFF 11 ROAMING 5 SERVICES 7 OTHERS 11

18 16 14 12 10 8 6 4 2 0 CONNECTIVITY TARIFF ROAMING SERVICES OTHERS

The respondents have rated Aircel most number of times, i.e. 59 times as the number 1 service provider, while Reliance comes last with 2 respondents saying it to be good with such low tariff charges.

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10) WILL YOU RECOMMEND OTHERS TO SWITCH TO AIRCEL CONNECTION? Yes 85 No 15

15

85

Over and all 47 respondents said they will recommend others to switch to Aircel, while quite a few respondents did not respond to this question.

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11) WILL YOU SWITCH TO AIRCEL? Yes 90 No 10

10

90

Total 90 respondents said that they will switch to Aircel for the kind of service provided by them, while merely 10 respondents said that they are satisfied with their present service connection.

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RECOMMENDATIONS AND CONCLUSION

RECOMMENDATIONS Being a market leader Aircel still striking in the telecom industry. Trump is coming up with such a rapid growth rate. But the point to be noted over here i.e. Trump has the maximum subscriber base in terms of students. Where as Aircel has subscriber base of multi functional area. Aircel is good service provider but because of some issues in billing and some others consumer dont take interest in it. Business class mostly prefer hutch; recently hutch has extended its recharge voucher limit from Rs 10 up to as your need. Top of Mind: This is clear that Aircel enjoys the clear preference of the consumers Overall Image: Aircel has been more successful, not through product features but an overall image. Aircel should look into the short comings of its customer care service. Aircel should make sure, that their prepared card should always be readily available with the retailers. Aircel should keep on coming with attractive tariff plans. As maximum no. of users are between 20 to 28 they should specially come out with some plans which are attractive for this segment. Main advantage of WLL is its tariff plan. So GSM service providers should try to reduce their tariff plans if possible, at least initially. Many of the respondents perceived Air Tels tariffs to be high. The company should focus its advertising message on this issue and compare it with the rival operators tariffs (which are almost similar). Air Tel should focus on those customers whose satisfaction is high but low loyalty. Loyalty based programs should be introduced, which
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the company has introduced now in terms of Rewards programmes. Also an alarming proportion of its customers are those with low satisfaction and low loyalty. This category poses a threat and their loyalty should be established. In their advertising messages, Air Tel uses more than one caption Touch Tomorrow and The Good Life. This creates a confusion in the customers mind. They should focus on their main line Touch Tomorrow used in the Air Tel brand architecture.

The first come advantage Value added services are the norm of the day. The service providers can gain a long term advantage by consistently introducing new incentives in value added services or tariff structures. Every time a new scheme is launched it provides temporary edge to the service provider over its counterpart. This temporary advantage is in terms of the new clients it acquires who have been attracted by the offer. However after some time this advantage is neutralized by the other player offering something similar. Thus it important to innovate before the competition time and again so that one can make the short term advantage cumulatively long term and help increase mind share as well as market share.

Corporate clientele Since this a target market by itself its marketing methodology itself would be different. Most organizations prefer to take services for their employees in groups. Hence, this order becomes very big for the service provider. Personalised selling would be the order of the day for these users. The presence in the various business and corporate circles would also enhance
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Aircels brand image. Special incentives can be given to these employees for maintaining their loyalty to the Aircel brand. The Aircel - Aircel advantage Aircel could lure more customers by introducing schemes in which calls from one Aircel user to another would be possible at a reduced tariff. This would encourage a group of users who need to communicate frequently to opt for this service only. Also it would help in promoting bondage between the users and thus further promote loyalty. New innovative packages Aircel has to come up with new innovative packages like the CALL HOME scheme offered by Vodafone. Such schemes launched at regular intervals will help in maintaining customer loyalty and also attract new customers. Collaborative schemes with other companies Aircel can collaborate with companies like Nokia or any other hardware provider and launch schemes like providing free airtime with every hardware instrument bought. Exposing the customer to the brand increases the chances of the customer being hooked on to the brand. The companies can ensure this by offering the option of renewal of the account at the expiry of the free airtime. Discounted products The company has to offer more discount schemes like reducing the activation charges or reducing the security fees. This will provide the company a competitive edge. However this may lead to a price war. Hence the trade offs of indulging in this exercise must be considered.

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Regular freebees Aircel can offer at regular intervals and specially at festivals schemes like free airtime to its users, free coupons for shopping, free entry to shows etc. this would keep the customers interested in the brand and ensure that they remain loyal to the brand. The other competitor will also be indulging in the same hence the effectiveness of these would depend on the timing of these offers. Special offers Aircel may offer special incentives and rewards to the frequent and regular users by offering them free maintenance checks. Free or minimal cost upgradation to a category of users who use the service over a specified limit of airtime More of the e-factor The future belongs to the net. The players who will be able to integrate the net in their operations will lead the market. This would mean advertising over the net, allowing an interface of the net with the cellular service. Aircel is already on the right track as far as this is concerned. They have introduced the concept of being able to send messages to the user like a pager message. This can be done from the Aircel site. Consolidate WAP Aircel has the advantage of having introduced the WAP before its competitor Vodafone has. They can use this as platform for taking a lead when this technology becomes widespread. Till then it will act as bait for status conscious users who want the latest innovations irrespective of its present application.

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CONCLUSIONS
After analyzing the findings of the research, I can conclude that Aircel lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spend RS 500 on their connections. As Aircel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. Although people are aware about the tariff plans offered by WLL service providers, but right now they are not in hurry to adopt it. The public wants to wait and watch their respective performances. So far findings from this research are concerned these are the major findings as follows. Being a market leader Aircel has got the maximum no of subscribers base. From this research I found that Aircel has got 48% customer base in Delhi. Trump has got 28% customer base followed by Hutch with 14% and finally only 10% of Aircel. Second thing what I found from this research is that out of 150 respondents 100 i.e. 66.6% of the consumers have switch over from their service provider. Out of 100 consumers 46 is the figure from Aircel, 29 from Trump, 14 from Aircel, & 11 from Hutch. The major reason I found for switch over price value i.e. an expensive in case of Aircel. In case of trump network coverage & non availability of recharge voucher while consumers go for roaming is the major reason come out, Aircels customers are having the major problem of billing related in case of postpaid connection.

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This seems to be the new age of communication all most 90% of the customers are aware about the market. In the area of satisfaction level Aircel gives the maximum satisfaction in terms of network coverage Ease of availability of recharge voucher specially in roaming. Trump gives maximum satisfaction in terms of call rates and free all India roaming in prepaid.

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Future to retain its market share i) Aircel should look into the short comings of its customer care service. ii) Aircel should make sure, that their prepared card should always be readily available with the retailers. iii) iv) Aircel should keep on coming with attractive tariff plans. As maximum no. of users are between 20 to 28 they should specially come out with some plans which are attractive for this segment. v) Main advantage of WLL is its tariff plan. So GSM service providers should try to reduce their tariff plans if possible, at least initially. From above the details I conclude that 70% Aircel users preferred to remain with Aircel. Also good number of users who were willing to switch from their respective subscribers showed interest in Aircel. Hence, these statistics imply a bright future for the company. Also the company is now providing more services like the door to door services which is you dial the Aircel customer care and would like to send someone flowers the Aircel company delivers those flowers to the person concerned. Also Aircel is providing voice mail service and free text messaging service. Call conferencing is also another feature Aircel provides.

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BIBLIOGRAPHY A. BOOKS: 1. PHILIP KOTLER: 2. DENNIS ADCOCK: MARKETING MANAGEMENT MARKETING PRACTICE 3. S.R, BAJPAI: METHODS OF SOCIAL SURVEY PRINCIPLES &

AND RESEARCH 4. GODDE & HATT: 5. W.S.JAWADEKAR: METHODS OF SOCIAL RESEARCH MANAGEMENT SYSTEM B. MAGAZINES: Business World C. JOURNALS: 1. THE TIMES OF INDIA 2. BUSINESS STANDARD D.WEBSITE: www.aircel.com www.google.com en.wikipedia.org INFORMATION

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ANNEXURE

Questionnaire 1) Name: 2) Address:________________________________________ 3) Occupation:______________________________________ 4) Age: a)16 20 years c) 26 30 yrs e) Above 36 yrs 5.) Sex: a) Male b) Female b) 21- 25 yr d) 31- 35 yrs

6) Do you have a mobile phone? a) Yes b) No

7) If, Yes which connection service do you have? a) Vodafone b) Aircel

c) Idea e) Others

d) Reliance

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8) Why have you chosen Aircel as your service provider? a) Better service b) Good connectivity c) Easy availability d) Low tariffs e) Others 9) Are you satisfied with your Aircel connection? a) Yes b) No

10) If, Yes rate the following parameters on a five point scale? a) Excellent connectivity b) Low tariff charges c) Roaming facility d) Personalized services e) Easy availability of recharge coupons 11) Rate the following service providers on a five point scale according to he service provided by them? a) Vodafone b)
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Aircel

c) Idea e) Others

d)

Reliance

12) Will you switch to other service providers? a) Yes b) No

13) What are the areas you think Aircel should improve, to be more reliable and customer oriented? THANK YOU

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