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Executive Summary

It is no wonder that in todays aggressive business environment, the challenges of sustaining in these competitive surroundings, preoccupies the minds of many Business leaders. Customers have many options to choose their telecom operator from competitive market. Furthermore, they often perceive that what they are purchasing is, for all practical purposes, a commodity that can be easily obtained from other companies, if need be. So, how does a corporation distinguish itself in a highly commoditized and competitive market? Todays business is more dependent, than ever before, on their top performing product to be innovate and provide services that differentiate a company from its fierce competitors. In other words, corporations rely upon their product and human assets to survive and thrive. Airtel is one of the leading telecom firms of the country. Airtel is providing intermediate services to the people of India since 1995. The company is largest cellular service provider in India and fifth largest in the world in the field of various telecom services like Mobile network, wireless, landline, broadband, satellite television,


etc. The company is famous for world presence, vast network coverage, excellent service and brand image managed by experts. This project report contains various sections where Ive discussed about company profile, its present strength, methodology used, sample size, sample unit, analysis and discussion, questionnaire, and annexure. I have used various quantitative techniques to find out the relation between various factors that contribute to awareness & perception of retailer. After market study it can be said there is very tough competition between various telecom firms like Airtel, Vodafone, Aircel, BSNL, Stel, Smart, etc. But still Airtel is leading the market of Bhubaneswar. Through this study Ive tried to find out the awareness level of retailers for airtel Product and services at the same time Ive also focused on perception of retailers for same. As achannel partner for sale of product it is essential to know about present awareness of retailer. By this we are able to find the proficiency of FSEs in communicating various offers and schemes of Airtel. At the same time we are getting information about the need for any further improvement in marketing and sale of airtel product to grasp opportunity for new customer base and retaining old customer base.



The management thesis which I was done as a part of my studies A study on the customer perception of mobile phone service providers with special reference to AIRTEL. The study I conducted provided me an excellent opportunity to implement all that I have learnt in my class room sessions in the practical outfield. The Bharti AIRTEL landline and broadband services has there in the market of Palampur couple of years and made there own identity in the market as a landline and broadband service provider with a good number of high pulsing customers. Among those good pulsing customers the SME customers are also one of them. AIRTEL mainly focus on the customers of SME customers who pays the average monthly bill amount of above Rs.2500/-. I am doing my thesis on this particular topic due to the reason that I believe it will help me know more about the marketing strategy, competitiveness and also about the customer behavior. My thesis will help the company to know more about their strength, customers and the area where they have to concentrate more and


also about their competitors strategy. This will also help the company to build a good relationship with the customers. CUSTOMER A customer is someone who makes use of the paid products of an individual or organization. This is typically through purchasing or renting goods or services. The word historically derives from custom, meaning habit; a customer was someone who frequented a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or her custom, meaning expected purchases in the future. The shopkeeper remembered the sizes and preferences of his or her customers, for example. The word did not refer to those who purchased things at a fair or bazaar, or from a street vendor. Types of customers Customers can be classified into two main groups: internal and external. Internal customers work for the organization, possibly in another department or another branch. External customers are essentially the general public.


Internal customers People working in different departments of the vendors organization. People working in different branches of the vendors organization. External customers Individuals Businesses or business people, including suppliers, bankers and competitors. NGOs, Government bodies, Voluntary organizations.

Needs and Expectations Customer needs may be defined as the facilities or services a customer requires to achieve specific goals or objectives. Needs are generally no-negotiable, but may be optional or of varying importance to the customer. In any transaction, customers seek


value-for-money, and will often consider a range of vendors offers before settling on a purchase. Customer expectations are based n perceived values of facilities or services as applied to specific needs. Expectations are influenced by cultural values, advertising, marketing, and other communications, both with the supplier and with other sources. Expectations are negotiable and modifiable. Both customer needs and expectations may be determined through interviews, surveys, conversations or other methods of collecting information. Customers at times do not have a clear understanding of their needs. Assisting in determining needs is a valuable service to the customer, the process, expectations may be set or adjusted to correspond to known product capabilities or service levels. A Customer can be defined on a businessmans or Sellerss point of view as: A customer is the most important person in any business. A customer is not dependent upon business. Business is dependent upon him. A customer is an essential part of the business- not an outsider

A customer is not just money in the cash register. He is a human being with feelings and deserves t be treated with respect. A customer is a person who comes to sellers with his needs and his wants. It is sellers job to fill them. A customer deserves the most courteous attention the businessmen can give him. He is the lifeblood of every business. He pays the salary. Without him business would have to closed the doors. As marketers we must never forget int. Thus customer is treated as the most important fundamental aspect of marketing other than competitor and values.


CUSTOMER SATISFACTION Customer satisfaction is a business term which is used to capture the idea of measuring how satisfied an enterprises customers are with the organizations efforts in a market place. Every organization has customers of some kind. The organization provides products (goods and/or services) of some kind to its customers through the mechanism of a marketplace. The products that organization provides are subject to competition whether by similar product6s or by substitution products. The reason an organization is interested in the satisfaction of its customers is because customers purchase the organizations products. Te organization is interested in retaining its existing customers and increasing the number of its customers. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person. The state of satisfaction depends on a number of both psychological and physical variables.


The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products. Because satisfaction is basically a psychological state, it is a difficult thing to measure quantitatively. In other words, there are no units of satisfaction that have been defined. The usual measures of customer satisfaction involve a survey instrument with a set of statements. The customer is asked to evaluate each statement and then select from a scale how the customer agrees or disagrees with statement. General model A general model of the buyer decision process consists of the following steps: Want recognition; Search of information on products that could satisfy the needs of the buyer; Alternative selection: Decision-making on buying the product; Post-purchase behavior.


There exists an interaction between the desired results and customer satisfaction, customer loyalty and customer retention. They may go by other names such as patients, clients, buyers, etc. without the customer, it is impossible for any business to sustain itself. Achieving the desired results is frequently a result of customer action. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will satisfy those desires and your customer retention rate will decrease. There exists an interaction between the desired results and customer satisfaction, customer loyalty and customer retention. They may go by other names such as patients, clients, buyers, etc. without the customer it is impossible for any business to sustain itself.

Achieving the desired results is frequently a result of customer actions. Any business without a focus on customer satisfaction is at the mercy of the market. Without loyal customers eventually a competitor will satisfy those desires and your customer retention rate will decrease. There are several levels of Customers, they are:-


Dissatisfied customer Looking for someone else to provide product or service Satisfied customer Open to the newt better opportunity Loyal customer Returns despite offers by the competition One of the ways to help obtain loyal customers is by having products and services that there is very little chance that the customer requirements will not be met and make them delightful. Of course one of the difficult is, understanding the true customer requirements. Even when you have the requirements in advance the customer can and will change them without notice or excuse. Having a good recovery process for a dissatisfied customer is a necessity. Customer satisfaction measurement program Customer satisfaction research is not an end unto itself. The purpose, of course, in measuring customer satisfaction is to see where a company stands in this regard in the eyes of its customers, thereby enabling service and product improvements which will lead to higher satisfaction levels. The research is just one component in the quest to improve customer satisfaction.

Customer satisfaction and consumer behavior are very closely related. Consumer behavior is lightly different from customer satisfaction. Consumer Behavior is the study of how people buy, what they buy, when the buy and why they buy. It is a sub category of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups, it studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand peoples wants, it also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general, today the customer satisfaction is also termed as customer delight; rather than satisfaction present day marketers try to make the customers delight. Indian business is facing a variety of newer challenges. The economy requires a different set of marketing responses, a major business response is to sustain freshness in marketing and, to locate business response is to sustain freshness in marketing and, to locate better approaches for delighting customers, the name of


the current marketing game is

sharply focus on customer

satisfaction and retaining the satisfied customer for life. The idea of delighting customers may sound simple. However, it demands extreme concentration and creativity in making it happen, it requires an organizational approach. Thus, the route to customer delight is most enduring when the entire organization is structured and geared for it under the challenge leadership of marketing. The marketers need an array of marketing skills, concepts and frame works for ensuring customer delight. Models of consumer behavior: One of the best known of the explanatory models that have been developed to explain the interactions involved is that of Howard and Sheth. This contains a deal of common sense, although, as is often the case with such models, the rather obscure terminology makes it appear more confusing than it really is. The inputs (stimuli) that the consumer receives from his or her environments are:1. Significative the real (physical) aspects of the product or service (which the consumer will make use of)


2. Symbolic the ideas or images attached by the supplier (for example by advertising) The outputs are what happens, the consumers actions, as observable results of the input stimuli. Between the inputs and outputs are the constructs, the processes which the consumer goes through to decide upon his or her actions. Howard and Sheth group these into two areas:1. Perceptual those concerned with obtaining and handling information about the product or service, 2. Learning the processes of learning that lead to the decision itself. Such models can help theorists to explain consumer behavior better, but it can be difficult to put them to practical use. Brand Image and Brand Identity and Corporate Identity: Brand image, in the other hand, is the totality of consumer perceptions about the brand, or how they see it, which may not coincide with brand identity; companies have to work hard on the consumer experience to make sure that what customers see and think is what they want then to.


Brand identity is the total proposition that a company makes to consumers the promise it makes. It may consist of features and attributes, benefits, performances, quality, service support, and the values that the brand possesses. The brand can be viewed as a product, a personality, a set of values, and a position it occupies in peoples minds. Brand identity is everything the company wants the brand to be seen as, Corporate identity is concerned with the visual aspects of a companys presence, when companies undertake corporate identity exercises; they are usually modernizing their visual image in terms of logo, design, and collaterals. Such efforts do not normally entail a change in brand values so that the heart of the brand remains the same what it stands for, r its personality. Unfortunately, many companies do not realize this fallacy, as they are sometimes led to believe by agencies and consultancy companies that visual changes will change the brand image. But changes to logos, signage, and even outlet design do not always change consumer perceptions of quality, service, and the intangible associations that come to the fore when the brand name is seen or heard.


In total Tse and Wilton (1988) has given some detail in their definition for customer satisfaction as:The consumers response to the evaluation of the perceived discrepancy between prior expectations (or some norm of performance) and the actual performance of the product as perceived after its consumption.


The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.

After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Limited . In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was (MTNL) Nigam Limited (VSNL) for for service in International Nigam telecommunications and Mahanagar Telephone

metropolitan areas.


adopted in 1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get


substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand. Market Share of Public and Private Players Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and the international calls, with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-awaited 3G mobile technology is now entered the Indian telecom market. The GSM, CDMA, WILL service providers are all upgrading themselves to provide 3G mobile services. Along with improvement in telecom services, there is also an improvement in manufacturing. In the beginning, there were only the Siemens handsets in India but now a whole series of new


handsets, such as Nokia's latest N-series, Sony Ericsson's W-series, Motorola's PDA phones, Apple iphone, Blackberry mobile etc. have come up. Touch screen and advanced technological handsets are gaining popularity. Radio services have also been incorporated in the mobile handsets, along with other applications like high storage memory, multimedia applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value added services provided by the mobile service operators contribute more than 10% of the total revenue.

Private 52%

Public 48%

The telecom sector in the country has already adopted the latest technological advancements to cater to the demands of the growing market. Telecom Expo India, Convergence India, VAS India and IPTV India being organized year to year are all efforts in this


direction. Moreover, with cheaper handsets and lesser tariffs, it is expected that by the year 2010 there will be over 500 million subscribers in the Indian telecom market. Also, the telecom industry this year will be focusing more on rural areas to connect them with the urban areas so that the farmers and the small-scale industries can have faster access to information related to weather and market conditions.

The Industry can be segmented into: I. Fixed line (Landline) II. Wireless (CDMA, GSM, WLL)) III. Internet Services (Dial-up, Broadband etc.) Segmentation of the target customers Customers were divided on the basis of their occupation 1. Home users (Residential) 2. Small & Medium Enterprises (SME) 3. Corporate Sector (SMB)


Company Profile Bharti Airtel Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management. BHARTI AIRTEL LTD started in July 7 1995.Its head quarters is at Delhi. In 1998 company started their first land line operation. Airtel is the name of their brand. AIRTEL stands for Affectionate, Interested, Respectful, Tolerant, Energetic and loving .Their logo is Think fresh Deliver More. Their first company is Bharti Cellular Limited under the brand name of Airtel. Another one is Bharti Tele Sonic Ltd under the brand name of India One. Then Bharti Tele Net Ltd under the brand name of Touch Net. Another one is Bharti broad band Ltd under the brand name of Manthra Online. The companies Bharti Telenet Ltd and Bharti Broadband

Ltd combined together and form Bharti Broadband and Teleservices Ltd. After sometime the companies Bharti Telesonic Ltd and Bharti Broadband and Teleservices Ltd combined together and form Bharti Infotel Ltd. In 13th September 2004 all the four companies combined together and form Bharti AIRTEL Ltd. Bharti Airtel is one of India's leading private sector providers of telecommunications services with more than 79 million subscribers as of November 2008. Bharti Airtel makes Facebooks mobile site free for its 130 million plus customers.

Now use internet to browse, record shows through your Airtel digital TV recorder.

Bharti Airtel to Observe Silent period from June 30, 2010.

Airtel digital TV Adds High Definition Excitement to Soccer Fever -Offers ESPN on HD platform for customers. Airtel App Central - Indias first mobile app store -celebrates 4 months of store opening.


Bharti, Cisco, and Servion join hands to offer Hosted Contact Center Services. Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) 1. Mobile Services 2. Airtel Telemedia Services 3. Enterprise Services.

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.


Airtel Telemedia Services: Airtel is offering broadband & Internet services across 94 cities in India. It is powered by DSL technology which gives you blazingfast; secure Internet access as soon as you switch on your computer. It also gives you the power of limitless discovery on Internet from shopping to banking, paying bills to making new friends and not to mention endless fun & learning for children. The special features of Airtel broadband services are, Why wait to connect - With Airtel Broadband, the internet is always ON, always available. No more waiting for dialup to connect. You are ready to use the internet as soon as you switch on your computer. Power Surfing - With speed of up to 2Mbps, feel the excitement of doing more on Internet. Shop, download MP3, exchange heavy files and chat at an enviable speed, all thanks to an extensive Broadband Services infrastructure. No more disconnections in the middle of download.


Surf while you talk - No more missed calls or blocked telephone lines while using the internet. Airtel Broadband Services connection does not block existing telephone lines and allows one family member to use the phone while another member surfs the net. Robust installation - The world class infrastructure & endto-end digital network of underground copper cable lines ensure an extremely robust connection that eliminates the risk of damage. Superior server technology and a dedicated port provide total security to data storage and information exchange through the Internet. 24x7 customer supports The 24x7 customer support unit helps you to serve better. It works for round-the-clock, 365 days a year. The customer feedbacks are carried out with great care. Speed on demand The customer can enjoy a dedicated speed of up to 2 Mbps without having to change your subscription plan. Whats more, you only pay for what you use. Airtel PC security - Airtel along with FSecure, one of the best in PC security, provides you with a service that tries to answer a Broadband customers most frequently asked question Is my PC safe?.

Payment options Airtel offers you a number of payment methods like cash payment, ECS- Easy payment method, Credit card method, check drop boxes, online payment. You can choose any one of the method for paying the cash. Services: The services offered by Airtel Broadband & Internet are listed below: 1. Video Surveillance Solutions With this service you can observe your office, warehouse, shop and staff from your PC from anywhere and at all times, with the Video Surveillance Solution.

2. In Touch In Touch is a great way to stay connected. It is an easy-to-use personal communications service that connects you with your friends and family, using a PC or a TV and a Broadband (high


speed) Internet connection. With In Touch you can do various activities like Video & Audio messaging, video & Audio Calling, Video Postcard TM service etc. 3. NetXpert NetXpert is automated broadband care technology. Globally accepted and successfully used by over 38 million customers worldwide, the NetXpert provides immediate solutions for Internet connectivity related problems. The NetXpert helps in the speedy installation and activation of the Broadband connection on your PC. Thereafter, it helps to identify any system or network problems that may come up from time to time. With NetXpert, you can detect and repair most problems, all by yourself, and experience the joys of uninterrupted Broadband.

4. Online Tests Airtel Broadband Services offer you online competitive tests for GRE, GMAT, SAT and MBA, from the comfort of your home.


5. Wifi Wifi is a wireless technology brand by the Wifii Alliance that gives you a host of fantastic advantages ranging from reliability to security. The simple installation procedure gives you access to unsurpassed performance instantly. Common applications for Wifi include Internet and VoIP phone access, gaming, and network connectivity for consumer electronics such as televisions, DVD players, and digital cameras. Just like cell phones, televisions and radios, the wireless network also uses radio waves.


As soon as the telecom industry opened to private sector investment beginning 1994,a large number of Indian companies entered the segment with varying force, different strategies, and assorted aspirations; Bharti Airtel was one of the first comers, which in times to come was going to be the Numero Uno storywriter of The Great IndianTelecom story. Bharti launched its first cellular telephony service Airtel in Delhi in September 1995, which was Delhis first & Indias second after Modi Telestra. Bharti Airtelsince its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The company has an eventful history. Each year its existence was marked by a number of major events that have helped shape the company as we know it today. 1995-1996 Launches mobile service brand Airtel in Delhi and Himachal Pradesh. British telicom plc( BT ) acquire a stake in the company.

1995-1998 Becomes the first private telecom opretars to obtain a license to provide basic telephone services in Madhya Pradesh. Forms Bharti BT vast ltd., focused on providing vast solution across India and bharti BT internet ltd.

1999-2000 Acquires jt mobile, cellular services operator in Punjab, Karnataka and andra pradeh and becomes the largest private sector telecom operator in India.

2001-2002 Launches India one, Indias first private sector nation and international long distance service. Become the largest cellular operator in the country by in the east Kolkata through acquisition and obtaining licenses for 8 circles.


2003-2004 Joins the us$ 1 bn revenue club Enter into historic strategic partnership with IBM and Ericsson for outsourcing the companys core it and network activities. 2005-2006 Acquires an all-India footprint with the launch of mobile services in Assam Vodafone, the world largest mobile service provider, acquires 10% economic interest in the company. Becomes Indias largest integrated private operator based on the total consumer base 2006-2007 Receive a latter of offer form telecommunication regulatory commission of Sri Lanka to provide 2g and 3g mobile services in Sri Lanka. Makes a foray into the USA with the launch of airtel callhome service for non resident Indians based there

2008-2009 It has become the first service provider to cross 10-carore subscribe base across India. Voted Indias most innovative company - in a survey conducted by The wall street Journal in 2008 2009-2010

Offers fastest wire line broadband on VDSL2 technology in India

Registrations open for the 2nd edition of the Airtel Delhi Half Marathon; in excess of 28,000 people will run together on November 1, 2009.








telecommunications service provider announced that it has entered into a legally binding definitive agreement with Zain Group (Zain) to acquire Zain Africa BV based on an








Bharti Airtel makes Facebooks mobile site free for its 130 million plus customers.


Chairman Profile Sunil Bharti Mittal is the Founder, Chairman and Group CEO of Bharti Enterprises, one of Indias leading business groups with interests in telecom, financial services, retail, realty, manufacturing and agriculture.


Sunil started his career at 18 after graduating from Punjab University in India in 1976 and founded Bharti. Today, at 52, he heads a successful enterprise which employs over 30,000 people. Bharti Airtel, the flagship group company, has a market capitalization of approximately US$ 25 billion.

Sunil has been recognized with the Padma Bhushan, one of Indias highest civilian awards. He has also received the Lal Bahadur Shastri National Award for Excellence in Public Administration, Academics and Management for 2009. He is a past President of the Confederation of Indian Industry, the premier industry body in India (2007-08). Sunil has been awarded numerous awards and recognitions including the Global Economy Prize 2009 by The Kiel Institute, Germany. The US-India Business Council has also honored him with the Global Vision Award 2008. He has received the GSM Association Chairman's Award for 2008.


Sunil was Co-chairman of the World Economic Forum in 2007 at Davos and is a member of its International Business Council. He is a member of the Leadership Council of The Climate Group. He is also a member of the Board of Trustees of the Carnegie Endowment for International Peace. He is a member of several premier international bodies International Advisory Committee to the NYSE Euronext Board of Directors, the International Business Advisory Council of London and the Advisory Board of the Global Economic Symposium. Sunil is also on the Telecom Board of the International Telecommunication Union, the leading UN Agency for Information and Communication.Technology. He is also a member of the Indo-US CEOs Forum. He serves as a member of the Executive Board of the Indian School of Business. He is also a member of the Academy of Distinguished Entrepreneurs, Babson College, Wellesley, Massachusetts.


Sunil believes a responsible corporate has a duty to give back to the community in which it operates. This belief has resulted in Bharti Foundation, which is committed to providing education to under-privileged children in rural India. Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds, UK and the degree of Doctor of Science (Honoris Causa) by the Govind Ballabh Pant University of Agriculture & Technology. He is an alumnus of Harvard Business School, USA. He is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers. Sunil Bharti Mittal has been awarded the Padma Bhushan, one of Indias highest Civilian Honors. The award is recognition of his pioneering efforts to put the nation on the global telecom map. ASIA MONEY AWARD: - SUNIL BHARTI MITTAL was chosen as the top executive at the 2006 Asia money award.

Avaya Best Customer Service Award: - BHARTI AIRTEL has won the Avaya global connect customer responsiveness

award, 2006 for best customer service in the telecom sector for the second year running. FORTUNE ASIA BUSINESSMAN OF THE YEAR: SUNIL BHARTI MITTAL was adjudged as the Asia Businessman of the year 2006 by the globally renewed business magazine, fortune. Vision & promise By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more.




Management Profiles

Sunil Bharti Mittal:- Founder, Chairman and Group CEO of Bharti Enterprises. Manoj Kohli: - CEO (International) & Joint MD Bharti Airtel Ltd.

Sanjay Kapoor:- Bharti Airtel Ltd. (India & South Asia).

Atul Bindal:- President Mobile Services. K Srinivas: - President of telemedia services. Jyoti Pawar: - Director Legal and Regulatory of Bharti Airtel. Shamini Ramalingam:- Director - Internal Assurance of Bharti Airtel Limited. Joachim Horn: - Executive Director Network Services Group. S.Asokan:Executive Director Supply Chain.

Krishnamurthy Shanka: - Director Human Resources.

Srikanth Balachande:- Chief Financial Officer

Amrita Gangotra:-Director IT (India & South Asia)

Business Sections


Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 94 cities. The Enterprise services group has two subunits - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand.


Business Divisions Mobile Services Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and was the first private telecom service provider to Connect all states of India. Broadband & Telephone Services India. Enterprise Services (Carriers) With 35,016 kilometers of optic fiber network we are a leading national long distance service provider. For international connectivity to east, we have a submarine cable landing station at Chennai. Products of Bharti Airtel Broadband and Telephony Services. DEL Direct Exchange Line Land line Phone (Voice) DSL Digital Subscriber Line for data Telephone Instrument Touchnet Dial-up-service Our Broadband (DSL) &

telephone Services (fixed line) are present in the 92 cities across


Business focus of Bharti Airtel Broadband and Telephony Services. Operational excellence Reducing churns Tightening cost Utilizing capacity

Quality Policy of Bharti Airtel broadband and Telephony Services.

Reduction of error level. Reduction of operating cost. Reduction of cycle time.

Organizational Culture of Bharti. Cut hierarchy to where knowledge resides. Act transparently and couragebly.


Process focus of Bharti Airtel broadband and Telephony Services.

Process standisation and customization Best practice replication Speed of urgency Strategy of Bharti Airtel Broadband and Telephony Services. Centralized reporting system Customers of Bharti Airtel Broadband and Telephony Services.

Residents Small and middle enterprises PCOs(public call office) Corporates

Competitors of Bharti in Broadband and Telephony Services. Bsnl Relience Tata indicom



The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings. Area of the study: The study was mainly concentrated on Palampur region. Research Design: Descriptive Research: Descriptive research includes survey and fact-findings enquire of different kinds. The major purpose of descriptive research is description of the state affairs, as it exists at present. Data Collection: The study is based on the data collected through primary and secondary sources.

Primary Data: An interview schedule was designed to collect primary data from various broadband users.

Secondary Data: Secondary data was collected from journals, magazines, web sites and from other relevant publications. Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method. Sample Size: From the universe, sample sizes of 100 customers were selected for the purpose of the study.

Sample Frame: The customers were selected on a random basis from which the respondents were selected based on convenience. Sampling Method: Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on consumers with different type of business. OBJECTIVES OF THE STUDY The primary objectives of the study was, To Analyzing the satisfaction level of customers towards Airtel Broadband service. The secondary objectives of the study was, a) To study how the customer choose their respective landline and broadband services.


b) To find the awareness among the customers about Airtel Broadband and its new products.

c) To find out the problems faced by the broadband users d) To analyze the position of Airtel Broadband against its competitors. e) To analyze the loyalty status of the consumers. f) To identify the customer preferences. g) To find out the strength and weakness of product and its competitors h) To make suggestion, if any to improve existing condition. i) To know if there are relationships between customer satisfaction and customer loyalty.

NEED AND SCOPE OF THE STUDY Today, for any organization or firm to survive in this competitive world depends on its ability to be dynamic and be different from the competition to be unique in the industry. Customer Satisfaction


helps every organization to keep the existing customer and to build new customer. This research is aimed at profiling the standard customer with an aim to increase the network and improve company-customer relations. The information gathered through this research can be used by the company to improve its services and became more customers friendly. This can increase the goodwill of the company and its overall performance. Thus this study is aimed to provide the management with some knowledge about its status in market both in terms of sales and customer awareness. The research also aims to provide some ideas to improve the companys present condition.

FORMULATION OF HYPOTHESIS a) The more satisfied the customers are with the speed of data transmission, the higher is the customer satisfaction. b) The more satisfied the customers are with after sales service, the higher is the overall satisfaction. c) The process of getting the problem solved will increases the customer loyalty and satisfaction


d) The higher is the overall satisfaction, the higher is the intention of additional purchase. (up gradation or new purchase ) e) The higher is the overall satisfaction, the higher is the intention of recommendation. LIMITATIONS OF THE STUDY

The behavior of the customer while approaching them to fill the questionnaire was unpredictable. The shortage of time was another constrain for the study. There may be error due to bias of respondents. Lack of customers cooperation was a major constraint. Majority of the customer were too aggressive in nature. The sample was restricted to 300 customers, which may restrict the scope and completion of study.







Review of Literature
Muller (1990)in his a research focuses that the success of the mobile commerce can be attributed to the personal nature of wireless devices. Adding to this are its unique features of voice and data transmission and distinct features like localization, feasibility and convenience. The sustained growth of the mobile commerce around the world has been more because of the transfer of technology according to the needs of local geography. National Telecom Policy (1999) projected a target 75 million telephone lines by the year 2005 and 175 million telephone lines by 2010 has been set. Indian telecom sector has already achieved 100 million lines. With over 100 million telephone connections and an annual turnover of Rs.61,000 crores, our present teledensity is around 9.1%. The growth of Indian telecom network has been over 30% consistently during last 5 years. According to Wellenius and Stern (2001) information is regarded today as a fundamental factor of production, alongside capital and labor. The information economy accounted for one-third to onehalf of gross domestic product (GDP) and of employment in Organization for Economic Cooperation and Development

(OECD) countries in the 1980s and is expected to reach 60 percent for the European Community in the year 2000. Information also accounts for a substantial proportion of GDP in the newly industrialized economies and the modern sectors of developing countries. Videsh Sanchar Nigam Limited (VSNL) 16th Annual Report (2002) India like many other countries has adopted a gradual approach to telecom sector reform through selective privatization and managed competition in different segments of the telecom sector. India introduced private competition in value-added services in 1992 followed by opening up of cellular and basic services for local area to competition. Competition was also introduced in National Long Distance (NLD) and International Long Distance (ILD) at the start of the current decade. World Telecommunication Development Report (2002)

explains that network expression in India was accompanied by an increase in productivity of telecom staff measured in terms of ratio of number of main lines in operation to total number of staff. Indian Telecommunication Statistics (2002) in its study showed the long run trend in supply and demand of Direct Exchange Lines


(DEL). Potential demand for telecom services is much more than its supply. In eventful decade of sect oral reforms, there has been significant growth in supply of DEL. Economic Survey, Government of India (2002-2003) has mentioned two very important goals of telecom sector as delivering low-cost telephony to the largest number of individuals and delivering low cost high speed computer networking to the largest number of firms. The number of phone lines per 100 persons of the population which is called teledensity, has improved rapidly from 43.6 in March 2001 to 4.9 in December 2002. Adam Braff, Passmore and Simpson (2003) focus that telecom service providers even in United States face a sea of troubles. The outlook for US wireless carriers is challenging. They can no longer grow by acquiring new customers; in fact, their new customers are likely to be migrated from other carriers. Indeed, churning will account for as much as 80% of new customers in 2005. At the same time, the carriers Average Revenue per User (ARPU) is falling because customers have.


Dutt and Sundram (2004) studied that in order to boost communication for business, new modes of communication are now being introduced in various cities of the country. Cellular Mobile Phones, Radio Paging, E-mail, Voice-mail, Video, Text and Video-Conferencing now operational in many cities, are a boon to business and industry. Value- added hi-tech services, access to Internet and Introduction of Integrated Service Digital Network are being introduced in various places in the country. A study by Jeanette Carless on and Salvador Arias (2004) wireless substitution is producing significant traffic migration from wire line to wireless and helping to fuel fierce price competition, resulting in margin squeezes for both wire line voice tariffs in organization for Economic Cooperation and Development Countries have fallen by an average of three percent per year between 1999 and 2003. T.V. Ramachandran (2005) analysed performance of Indian Telecom Industry which is based on volumes rather than margins. The Indian consumer is extremely price sensitive. Various sociodemographic factors-high GDP growth, rising income levels, booming knowledge sector and growing urbanization have contributed towards tremendous growth of this sector. The


instrument that will tie these things together and deliver the mobile revolution to the masses will be 3 Generation (3G) services. Rajan Bharti Mittal (2005) explains the paradigm shift in the way people communicate. There are over 1.5 billion mobile phone users in the world today, more than three times the number of PCOs. India today has the sixth largest telecom network in the world up from 14th in 1995, and second largest among the emerging economies. It is also the worlds 12 biggest market with a large pie of $ 6.4 billion. The telecom revolution is propelling the growth of India as an economic powerhouse while bridging the developed and the developing economics. ASEAN India Synergy Sectors (2005) point out that high quality of telecommunication infrastructure is the pillar of growth for information technology (IT) and IT enabled services. Keeping this in view, the focus of telecom policy is vision of world class telecommunication services at reasonable rates. Provision of telecom services in rural areas would be another thrust area to attain the goal of accelerated economic development and social change. Convergence of services is a major new emerging area. Aisha Khan and Ruche Chaturvedi (2005) explain that as the


competition in telecom area intensified, service providers took new initiatives to customers. Prominent among them were celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular market were the youth segment and business class segment. The youth segment at the inaugural session of cellular summit, 2005, the Union Minister for Communications and Information Technology, Dayanidhi Maran had proudly stated that Indian telecom had reached the landmark of 100 million telecom subscribers of which 50% were mobile phone users. Whereas in African countries like Togo and Cape Verde have a coverage of 90% while India manages a merely mobile coverage of 20%. In overview in Indian infrastructure Report (2005) explains Indias rapidly expanding telecom sector is continuing to witness stiff competition.This has resulted in lower tariffs and better quality of services. Various telecom services-basic, mobile, internet, national long distance and international long distance have seen tremendous growth in year 2005 and this growth trend promises to continue electronics and home appliances businesses each of which are expected to be $ 2.5 bn in revenues by that year. So, driving forces for manufacturing of handsets by giants in India


include-sheer size of India market, its frantic growth rates and above all the fact that its conforms in global standards.


Analysis and Interpretation

Q.1) Are you using mobile? ANSWERS NO.OF RESPONDENTS YES A NO B
Table no 1.1




Fig. no.1.1 Interpretation

The above graph shows that 96.5%people are using mobile and 3.5% people are not using mobile.


Q.2) Does it really matter whether you go for GSM or CDMA?

Table no.1.2




a b


67 33
Fig. no. 1.2

No 17%

Yes 83%

The above graph shows that people are more concerned about the technology they are using.83.5% users are concerned about technology. And 16.5% users have no concern from that.


Q.3) how would you rate the voice clarity of your AIRTEL mobile connection?
a b c d ANSWER Excellent Good Average Bad NO.OF RESPONDENTS 32 113 43 9 PERCENTAGE % 16 56.5 21.5 4.5



Table no. 1.3

Fig no 1.3

The above graph shows the rating given by AIRTEL mobile users to the voice quality.16% GSM users are delighted with quality and 56.5% users are satisfied with that.


Q.4) How would you rate network coverage strength on AIRTEL mobile connection
ANSWER A B C D E Excellent Good Average Bad Worst NO.OF RESPONDENTS 46.5 31.5 17 5 0 PERCENTAGE % 23.25 15.75 8.5 2.5 0

Table no.1.4
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Excellent Good 8.5% 2.5% Respondents Average Bad 23.25% 15.75%

0% Worst


The above graph depicts the coverage strength experienced by the GSM users. GSM users are getting better coverage strengths. 46.5% GSM users are highly satisfied with network coverage. 31.5% users are satisfied, 5%are not satisfied with that.


Q.5) How would you rate supplementary facilities like call wait, call hold, call forward, call divert, call conference on AIRTEL mobile connection?
ANSWER A B C D E Excellent Good Average Bad Worst NO.OF RESPONDENTS 48 76 68 8 0 PERCENTAGE % 24 38 34 4 0

Table no 1.5


The above graphs shows the satisfaction level of GSM mobile users . 24% users are highly satisfied, 38% are satisfied, 34% are find it average and 4% are dissatisfied with supplementary services offered to them.


Q.6) How would you rate the Internet connectivity and data transfer
service on AIRTEL Connection ?












Table no.1.6

50% 40% 30% 20% 10% 0% Excellent Good Average Respondents Bad Worst 2.50% 38.50% 30% 22.50% 36.50%

Still many people are not aware of internet services offered to them by their services provider .AIRTEL users are more satisfied with the internet and data services offered to them then other competitors. 30% users are highly satisfied, 22.5% are found it average, and 36.5% are not satisfied with tha


Q7.) How would you rate international roaming facility on AIRTEL mobile connection?
Table no.1.7

ANSWER a b c d e Excellent Good Average Bad Worst

NO.OF RESPONDENTS 15 44 50 56 35

PERCENTAGE % 7.5 22 25 28 17.5


Majority of people find international roaming facility is not satisfactory.22% find its good 28% find its not satisfactory.

Q.8) How would you rate dual personal and business number facility on AIRTEL mobile connection?

ANSWER a b c d e Excellent Good Average Bad Worst

NO.OF RESPONDENTS 20 84 73 19 4

PERCENTAGE % 10 42 36.5 9.5 2

Table no.1.8


Although 10% find it excellent but 42% users find it good, 36.5% users find it average, 9.5% find it bad and 2% find it not satisfactory.

Q.9) How would you rate tariff rate of your AIRTEL prepaid connection?


ANSWER a b c d e Excellent Good Average Bad Worst

NO.OF RESPONDENTS 15 65 85 25 10

PERCENTAGE 7.5 32.5 42.5 12.5 5

Table no 1.9


7.5% AIRTEL mobile users find it excellent, majority of users 42.5%find it average, 12.5% are not satisfied with it.

Q10.) How would you rate STD tariff plans of AIRTEL communication?


ANSWER a b c d e Excellent Good Average Bad Worst

NO.OF RESPONDENTS 75 85 35 5 0

PERCENTAGE % 37.5 42.5 17.5 2.5 0

Table no.1.10


The above graph shows that 37.5% respondents are delighted with the STD tariff plans. 42.5%are satisfied with that.17.5% find it average and 205% are not satisfied with it. Q.11) How would you rate the customer care service of AIRTEL mobile connection? ANSWER NO.OF RESPONDENTS PERCENTAGE %


a b c d e

Excellent Good Average Bad Worst

17 35 74 46 28

8.5 17.5 37 23 14

Table no. 1.11


When I asked the customers of Tata Docomo about the services of Tata Docomo customer care 17% said that it is excellent. And most of customers find it average. Some of them said they are not satisfied with their services.

Q12) According to you what is the biggest weakness of AIRTEL mobile? ANSWER NO.OF RESPONDENTS PERCENTAGE %


Less flexibility of changing service provider



International roaming very limited



Table no.1.12

Fig no.1.12

The majority of users said that the biggest weakness of airtel is the limited international roaming facility.


Q13) Based on your experience with AIRTEL GSM technology are you likely to recommend GSM technology to your friends and relatives who may be planning to purchase a new mobile? ANSWER NO.OF RESPONDENTS a b C Yes No Cant say 89 41 70
Table no.1.13


44.5 20.5 35


44.5% users will like to recommend the AIRTEL GSM technology to their friends and relatives.20.5% users would not recommend it to their friends, and 35% are not sure for that.


Q14) Is AIRTEL prepaid voucher easily available at retailer outlet?

Table no.1.14




a b C

Yes No Sometimes not available

102 46 52

51 23 26


Majority of respondents 51% found prepaid voucher easily available at retail outlet, 23% say that it is not easily available, and 26% found it not available at sometimes.



1) Quality of the service provided plays an important role in keeping the existing customers and to bring new customers. 2) In most of the organization, Internet plays an important role in the day to day activities. 3) Most of the organizations prefer broadband connection over other type of connection because of speed and other compatibility of service. 4) A number of the organization preferred Airtel because of the quality of service provided and also for the speed of data transmission. 5) Many customers have rated the speed of data transmission is very good. Some customers had complaints regarding the speed. This is mostly due to number of systems connected by single broadband connection. 6) The safety and security of Airtel network is rated very well by most of its customers. Safety of data is very important in any type of organization. Airtel with its own PC security suite helps organizations protect its data from theft and prevents it from harmful attacks.


7) After sales service plays essential part of customer satisfaction. More than 10% customers have complaints regarding the after sales service of Airtel broadband. But a number of customers have reported it excellent and very good. 8) Customers feel Airtel broadband was much better than other competitive products of the same category. This shows the place Airtel has achieved in the minds of the customer in Indore region. 9) The overall satisfaction level is very high among customers.


Suggestions On completion of the project work Customer perception towards Airtel broadband service among Small and medium scale industries (SME) customers of Indore, I would like to give my suggestions which the company can make use of:1) The customer rate quality of the service as the most relevant one and hence Airtel Broadband services should maintain the quality in services and should make improvements in this feature. 2) Some customers are planned to discontinue because of high billing and after sales service is not good. Though it is a small percentage the company should focus on these to keep the brand image in the minds of people. 3) If any complaint is observed from the customers, it should be dealt quickly. This will reduce the chance for dissatisfaction. 4) Many dissatisfied customers asked for more information about other plans or change of plans. So the dissatisfaction may be due to providing wrong plans by the sales persons. So the company can make use of this opportunity to retain its customers by providing the right plans.


5) SME segment is a high potential market (especially in Indore) and the company should take care of more promotional activities in which advertisement plays and effective role and hence to have a competitive edge over other brands. 6) Lack of awareness about the plans is high among customers. So the company must provide an awareness program about the specialized plans for them. 7) The detailed billing is provided as a value added service in Airtel broadband. It is free of cost in its competitors like BSNL. So the company could provide the service as free of cost. It will help customers clear their doubts about billing and hence to improve their satisfaction level.


CONCLUSION The project titled A study on the customer perception of mobile phone service providers with special reference to AIRTEL was carried out among the customers/consumers in Palampur Region. The overall objective of the study was to fine out how the customer perceives Airtel Mobile Phone services and to find out their satisfaction towards the service against its competitors. The study revealed the picture of customers perception and satisfaction which help Airtel Mobile Phone services to encourage more people to be the customers/consumers of Airtel Services.



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Questionnaire Personal details: Name: Address: Occupation: Gender: Male ( ) Female ( )

Q.1) Are you using mobile? a) Yes ( ) b) No ( )

Q.2) Does it really matter whether you go for GSM or CDMA? a) Yes ( ) b) No ( )

Q.3) How would you rate the voice quality of your AIRTEL mobile connection? a) Excellent c) Average e) Worst b) Good d) Bad


Q.4) How would you rate network coverage strength on AIRTEL mobile connection? a) Excellent c) Average e) Worst b) Good d) Bad

Q.5) How would you rate supplementary facilities like call wait, call hold, call forward, call divert, call conference on AIRTEL mobile connection? a) Excellent c) Average e) Worst Q.6) How would you rate internet connectivity and data transfer service on AIRTEL? a) Excellent c) Average e) Worst b) Good d) Bad b) Good d) Bad


Q.7) How would you rate security and confidentiality regarding call theft on AIRTEL mobile connection? a) Excellent c) Average e) Worst Q.8) How would you rate dual personal and business number facility on AIRTEL mobile connection? a) Excellent c) Average e) Worst Q.9) How would you rate tariff rate of your AIRTEL prepaid connection? a) Excellent c) Average e) Worst Q.10) How would you rate STD tariff plans of AIRTEL b) Good d) Bad b) Good d) Bad b) Good d) Bad

communication? a) Excellent c) Average b) Good d) Bad e) Worst


Q.11) How would you rate the customer care service of AIRTEL mobile connection? a) Excellent c) Average e) Worst Q.12) According to you what is the biggest weakness of AIRTEL mobile Connection ? a)Less flexibility of changing service provider. b)International roaming very limited. Q.13) Based on your experience with airtel GSM technology are you likely to recommend GSM technology to your friends and relatives who may be planning to purchase a new mobile? a) Yes b) No c) Cant say b) Good d) Bad

Q.14) Is AIRTEL prepaid voucher easily available at retailer outlet? a) Yes b) No c) Sometimes not available