SUMMER PROJECT REPORT

On

A STUDY OF NEW OUTLET EXPANSION STRATAGE WITH

SPECIAL EFFECT TO BHARTI AIRTEL

GUIDED BY SUBMITTED BY:

Prof.Mahesh Soni Vineet Kumar Singh
Mr. Ashutosh verma iperpgdm
(Territory manager airtel)

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 TABLE OF CONTENTS

CONTENT PAGE N

Introduction------------------------------------------------------------------------------6

Executive Summary--------------------------------------------------------------------12

Strategy issue in distribution----------------------------------------------------------13

SWOT Analysis-------------------------------------------------------------------------15

Telecom industry in India--------------------------------------------------------------17

Objectives ------------------------------------------------------------------------------22

Execution---------------------------------------------------------------------------------23

Research Methodology-----------------------------------------------------------------24

Data analysis and interpretation----------------------------------------------------25

Annexure---------------------------------------------------------------------------------31

Bibliography------------------------------------------------------------------------------35

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INTRODUCTION

PREFACE

The research provides an opportunity to a student to demonstrate application of

his/her knowledge, skill and competencies required during the technical session.
Research also helps the student to devote his/her skill to analyze the problem to
suggest alternative solutions, to evaluate them and to provide feasible
recommendations on the provided data. The research is on the topic of “A study of
new outlet expansion strategy with special effect to barite airtel ” Although I have
tried my level best to prepare this report an error free report every effort has been
made to offer the most authenticate position with accuracy.

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 ACKNOWLEDGEMENT

This report is an outcome of mutual support and guidance of many persons towards
whom I indebted. My special thanks to Mr.Ashutosh Verma (Territory Manager) to
provide various facility in the summer training by which I can make my project in
the easy way. I express my profound reverence and the grateful gratitude to
Prof.Mahesh Soni to suggest me a proper guideline towards the project.

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 DECLARATION

I hereby declare that the following project report titled “A study of new outlet
expansion strategy with special effect to bharti airtel”
is an authentic work done by me. This is to declare that all my work indulged in
the completion of this Project Report such as research, mapping of urban areas,
team management is a profound and honest work of mine.

Vineet kumar singh

iperpgdm

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 INTRODUCTION

Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises.

The businesses of Bharti Airtel are structured into two main strategic groups -
Mobility and Infotel. The Mobility business provides GSM mobile services in all
23 telecommunications circles in India, while the Infotel business group provides
telephone services and Internet access over DSL in 15 circles. The company
complements its mobile, broadband, and telephone services with national and
international long-distance services. The company also has a submarine cable
landing station at Chennai, which connects the submarine cable connecting
Chennai and Singapore. Bharti Tele-Ventures provides end-to-end data and
enterprise services to corporate customers by leveraging its nationwide fibre- optic
backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing station. All of
Bharti Tele-Ventures' services are provided under the Airtel brand.

As of September 2005, Bharti Tele-Ventures was the only company to provide

mobile services in all 23 telecom circles in India.

By the end of October 2005, Bharti Tele-Ventures was serving more than 14.74
million GSM mobile subscribers and 1.10 million broadband and telephone (fixed
line) customers.

The equity shares of Bharti Tele-Ventures are currently listed on the National
Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As
of September 30, 2005, the main shareholders of Bharti Tele-Ventures were: Bharti
Telecom Ltd (45.65%), a subsidiary of Bharti Enterprises; Singapore Telecom
(15.69%), through its investment division Pastel Ltd; and, Warburg Pincus
(5.65%), through its investment company Brentwood Investment Holdings Ltd).
Other shareholders with more than a 1% stake were: Citi Group Global Markets
Mauritius Pvt Ltd (2.99%); Europacific Growth Fund (2.04%); Morgan Stanley &
Co International Ltd (1.93%); CLSA Merchant Bankers Ltd A/C Calyon (1.33%);
Life Insurance Corporation of India (1.34%); and, The Growth Fund of America
Inc (1.11%).

Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns

Airtel), is today, the most celebrated face of the telecom sector in India. He
symbolises the adage that success comes to those who dream big and then work

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assiduously to deliver it. Sunil Bharti Mittal began his journey manufacturing spare
parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a
unique flair for sensing new business opportunities. In the early years, Bharti
established itself as a supplier of basic telecom equipment. His true calling came in
the mid 1990s when the government opened up the sector and allowed private
players to provide telecom services.

Bharti Enterprises accepted every opportunity provided by this new policy to

evolve into India's largest telecommunications company and one of India's most
respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as

the Airtel network expanded to several parts of India, the brand came to
symbolise the very essence of mobile services.

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 PRODUCT
Airtel provides a host of voice and data products and services, including high-
speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid'
mobile offers, with a range of tariff plans that target different segments. A
comprehensive range of value-added, customised services are part of the unique
package from Airtel. The company's products reflect a desire to constantly
innovate. Some of these are reflected in the fact that Airtel was the first to develop
a 'single integrated billing system'

Airtel comes to you from Bharti Airtel Limited - a part of the biggest private
integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular
service provider, with an all India footprint covering all 23 telecom circles of the
country. It has over 21 million satisfied customers. Bharti Enterprises has been at
the forefront of technology and has revolutionized telecommunications with its
world class products and services. Established in 1976, Bharti has been a
pioneering force in the telecom sector with many firsts and innovations to its
credit. Bharti has many joint ventures with world leaders like Singtel (Singapore
Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find,
Mauritius; International Finance Corporation, USA and New York Life
International, USA. Bharti provides a range of telecom services, which include
Cellular, Basic, Internet and recently introduced National Long Distance. Bharti
also manufactures and exports telephone terminals and cordless phones. Apart
from being the largest manufacturer of telephone instruments in India, it is also the
first company to export its products to the USA.

Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has
established itself across India in sixteen states covering a

population of over 600 million people. Airtel will soon cover the entire country
through a process of acquisitions and green field projects. With a presence in over
1,400 towns, Airtel today has the largest network capacity in the country.

In the last nine years Airtel has achieved many firsts and unique records: it was the
first to launch nationwide roaming operations, it was the first to cross the one
million and the five million customer marks. It was also the first to launch services
overseas.

There are other 'firsts' credited to Airtel - many of them in the area of innovative
products and services. Today, Airtel innovates in almost everything that it presents

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to the market. An excellent example is Easy Charge - India's first paperless
electronic recharging facility for prepaid customers. As evidence of its fine record,
Airtel has also been conferred with numerous awards. It won the prestigious
Techies Award for 'being the best cellular services provider' for four consecutive
years between 1997 and 2000 - a record that is still unmatched. And in 2003, it
received the Voice & Data Award for being 'India's largest cellular service
provider', amongst others.

The status of the product in terms of its life cycle has just reached the maturity
stage in India. It is still on the rising part of the product life cycle curve in the
maturity stage.

The diagram on the left hand side shows the percentage of the users classified into
heavy, medium and low categories. The right hand side shows the revenue share
earned from the three types of users.

Airtel, keeping in mind the importance of the customer retention,

values its heavy users the most and constantly indulges in service innovation. But,
since heavy users comprise only 15 - 20% of the population the other segment
cannot be neglected. The population which has just realised the importance of
cellular phones has to be roped in. It is for this reason that the service provider
offers a plethora of incentives and discounts. Concerts like the "Freedom concert"
are being organised by Airtel in order to promote sales. The media channel is
chosen with economy in mind. The target segment is not very concrete but, there is
an attempt to focus on those who can afford.

The print
advertisements and hoarding are placed in those strategic areas which most likely
to catch the attention of those who need a cellular phone. The product promise

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(which might cost different 1 higher) is an important variable in determining the
target audience.

The company is structured into four strategic business units:

Mobile

Telemedia Enterprise

And Digital TV business

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 Mobile Services
Airtel’s mobile footprint extends across the country in 21 telecom circles. It’s
service standards compare with the very best in the world. In fact, that’s how
Bharti has managed to win the trust of millions of customers and makes it one of
the top 5 operators in the world, in terms of service and subscriber base.

The company has several Firsts to its credit:

The First to launch full roaming service on pre-paid in the country.

The First to launch 32K SIM cards.

The First in Asia to deploy the multi band feature in a wireless network for
efficient usage of spectrum.

The First to deploy Voice Quality Enhancers to improve voice quality and
acoustics.

The First telecom company in the world to receive the ISO 9001:2000
certification from British Standards Institute

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 EXECUTIVE SUMMARY

This report on Bharti Airtel is done to findout certain objective regarding the
strategic approach Adopted by Airtel to stand strongly in the competitive telecom
market.
Airtel bring one of the most strong brand has high level retailer
acceptance .there are fellow retail payment cycle varies sales promotion
scheme. Airtel distribution chain is strong because of demand of airtel and
service .airtel increase the outlet and retailer .airtel high demand in market .airtel
promotion strategy is core competence of airtel .

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Strategy issue in distribution

 Flow of Information in channel members.

 Availability of products on required time

frame.

 Control over the channel.

 Availability of promotional items to the

channel.

 Claim settlement should be solved within

the committed time.

 Conflict between the channel members

should be taking care by the company

lapu sim

A SIM is provided to retailers from the company at free of cost for providing easy
recharge service. Only regular retailers have this facility.
This SIM has a memory of 128kb and specially designed for easy recharge
purpose. A retailer has minimum5 easy rechar ge customers per month failuring
this target the SIM will be automatically deactivated.

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Stock system in distribution

The complete stock maintenance procedure

re is categorically divided in two parts.

2. Stock to be Maintained by Distributor

The distributor has to keep the LAPU
balance for minimum 7 days; Here 35% of
the value must be in RCV
4. Stock to be Maintained by Retailer The retailer has to keep LAPU balance for
3days 33% of the value must be in RCV

Modern Trade of distribution

This is a modern distribution channel for expansion of business.

Under it there are 4 channel partners like- TMS, Mobile Bazaar,
ARC & Airtel Exclusive Showrooms & This Trade Comes under
Retail own head which employee of airtel.
For all information & every activities there are some FOS whomaintain gap
between Retail own head & channel partners .

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 SWOT Analysis

Strengths
• Bharti Airtel has more than 65 million customers (July 2008). It is the largest
cellular provider in India, and also supplies broadband and telephone services – as
well as many other telecommunications services to both domestic and corporate
customers.

• Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia – and Sing Tel,
with whom they hold a strategic alliance. This means that the business has access
to knowledge and technology from other parts of the telecommunications world.

• The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.

Weaknesses

• An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and experience
of how a cellular telephone system actually worked. So the start-up business had to
outsource to industry experts in the field.

• Until recently Airtel did not own its own towers, which was a particular strength
of some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.

• The fact that the Airtel has not pulled off a deal with South Africa’s MTN could
signal the lack of any real emerging market investment opportunity for the
business once the Indian market has become mature.

Opportunities

• The company possesses a customized version of the Google search engine which
will enhance broadband services to customers. The tie-up with Google can only
enhance the Airtel brand, and also provides advertising opportunities in Indian for
Google.

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• Global telecommunications and new technology brands see Airtel as a key
strategic player in the Indian market. The new iPhone will be launched in India via
an Airtel distributorship. Another strategic partnership is held with BlackBerry
Wireless Solutions.

• Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to question
industry approaches and practices – for example replacing the Revenue- Per-
Customer model with a Revenue-Per-Minute model which is better suited to India,
as the company moved into small and remote villages and towns.

• The company is investing in its operation in 120,000 to 160,000 small villages

every year. It sees that less well-off consumers may only be able to afford a few
tens of Rupees per call, and also so that the business benefits are scalable – using
its ‘Matchbox’ strategy.

• Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea
Cellular to create a new independent tower company called Indus Towers. This
new business will control more than 60% of India’s network towers. IPTV is
another potential new service that could underpin the company’s long-term
strategy.

Threats

• Airtel and Vodafone seem to be having an on/off relationship. Vodafone which

owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead
invested in its rival Hutchison Essar. Knowledge and technology previously
available to Airtel now moves into the hands of one of its competitors.

• The quickly changing pace of the global telecommunications industry could

tempt Airtel to go along the acquisition trail which may make it vulnerable if the
world goes into recession. Perhaps this was an impact upon the decision not to
proceed with talks about the potential purchase of South Africa’s MTN in May
2008. This opened the door for talks between Reliance Communication’s Anil
Ambani and MTN, allowing a competing Indian industrialist to invest in the new
emerging African telecommunications market.

• Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.

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 Telecom industry in India

Current Scenario in Telecom Industry

 India is 4th largest market in Asia after China, Japan and South Korea.

 India is the 5th largest in the world and 2nd largest among emerging
economies of Asia.

 Contribution of telecom sector in terms of revenue is 2.1 % of GDP as

compared to 2.8% in developed economies.

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 CLASSIFICATION OF TELECOM SECTOR

Fixed line telephony Mobile Telephony Internet Telecom equipmen

BSNL and MTNL 25 private companies There is no restriction Growth in the telec
account for 90% providing cellular on the number of equipment market
revenue for basic services in 19 telecom internet companies resulted in increasi
services. circles and 4 metro and more than 185 demand for telecom
cities, covering 1500 companies are services.
towns across the operational.
country.
Private sector Presently, there are Growing demand of Key players like
available in 18 circles five private service corporate for BSNL, BHARTI,
and collectively operators in each area, applications such as RELIENCE, TATA
account for 10% of and an state operator electronic commerce, BPL and
revenue. Internet leased lines, HUTCHISON will
ISDN, VPN etc is drive equipment
driving the growth of market growth.
the internet services
market.

MAJOR PLAYERS IN TELECOM SECTOR

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 Service Provider No. of CDMA Subscriber No. of GSM Subscriber

RELIANCE 2.7CR

TATA 1.07CR

AIRTEL 3.37 CR

MTNL 24.98 LAKH

BSNL 2.44 CR

VODAFONE 2.44 CR

IDEA 1.3 CR

SPICE 25.56 LAKH

BPL 10.62 LAKH

AIRCEL 48 LAKH

MARKET SHARE MAJOR PLAYERS IN TELECOM SECTOR

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 22%
31%

airtel
vodafone
bsnl
12% idea
other

13% 22%

Challenges

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  India centric – Major revenues from India

 Intense Competition & Shortage of Bandwidth

 New Players coming in India

 Uncertain Economic conditions

 Mobile Number Portability - upcoming Challenge.

OBJECTIVE OF STUDY ARE

 To know the retailer perception towards the airtel brand.

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  To study the market penetration strategy of airtel viz a viz
competition .

OUTCOME

Airtel bring one of the most strong brand has high level retailer
acceptance .there are fellow retail payment cycle varies sales promotion
scheme.

Execution

The specified areas where I have opened outlets for Airtel :

1. Ashoka Garden

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 2. Anand nager

3. Piplani

4. Patel nager

the specified areas where under the guidance of MR. Ashutosh Verma (territory
manager), I have developed 20 outlets. I have had a mixed experience during my
tenure and some of my good experiences are:

 To develop convincing power among the retailers and motivate and

convince them for keeping Airtel recharge vouchers.
 Knowing their behavioral aspects and tendencies and motivating them
accordingly.
 Work in coordination with other colleague in an organization.

These were some learning which I have learnt from this

summer training from 15th may –30june.

RESEARCH
METHODOLOGY

Strategy of open new outlet

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  Airtel as a brand name.

 High footfall for Airtel.

 Market demand

 investment

 Extra source of income.

Reason for not open new outlet

 Misconception about technology

 Misconception about legal formalities

 Do not want high footfall

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 Data analysis and interpretation

1.How many footfall in your shop in a day?

a)25 to 50

b)50 to 75

c)75 to 100

d) More than 100

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 Chart Title
10%

25 to 50
20% 40% 50 to 75
75 to 100
>100

30%

Comment: 25 to 50 footfall shop are more and more than 100 footfall shop is
10%

2.how much you can investment in a month?

a)1000 to 5000

b)5000 to 10000

c)10000 to 20000

d)More than 20000

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 Chart Title
0.05
1000to 5000
0.1
5000to10000

10000 to 20000
0.5
>20000
0.35

Comment: most of retail can invest 1000 to 5000 in a month.

3.Do you keep Airtel recharge vouchers?

a) Yes
b) No

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 Chart Title

yes
40% no

60%

Comment: 60% shopkeeper want to keep recharge voucher 40% do not want
because of profit margin and other region.

4.Would you like to sell Airtel recharge vouchers?

a) Yes

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 b) No

Chart Title

30%
yes
no

70%

Comment: 70% want to keep recharge voucher because of high demand.

5.Why you don’t want to sell Airtel recharge vouchers?

a)profit margin

b) service

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 c)demand

d)other

Chart Title

0.15

profit magin
0.05
service
demand
0.1
other

0.7

Comment: most of shopkeeper do not want to keep recharge voucher because of

profit margin they get only 2.5 % margin.

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 ANNEXURE

Name

GENDER M F
Age/Grouping
EDUCATION SCHOOLING UNDER GRADUATE POST
QULIFICATION GRADUATE GRADUATE

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 INCOME <=1,00,00 >1,00,00 >2,00,00 >3,00,00
(monthly) BUT BUT
<2,00,00 <3,00,00
OCCUPATION
QUESTIONAIRE

Cellular services used: 

1.How many footfall in your shop in a day?

a)25 to 50

b)50 to 75

c)75 to 100

d) More than 100

2.how much you can investment in a month?

a)1000 to 5000

b)5000 to 10000

c)10000 to 20000

d)More than 20000

3.How many AIRTEL users in your phone book?

a) Less than 30% b) 30% - 70% 

c) More than 70%

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4.Do you keep Airtel recharge vouchers?

a) Yes
b) No

5.Would you like to sell Airtel recharge vouchers?

a) Yes
b) No

6.Why you don’t want to sell Airtel recharge vouchers?

a)profit margin

b) service

c)demand

d)other

7.Are you satisfied with Airtel services?

a) Less than 30% or 30% - 70% 

b) More than 70% 

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 BIBLIOGRAPHY

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INTERNET:

www.google.com

airtel .in