Market Analysis of Telecom Sector in Pre-paid Cash Card Retailing

8/3/2019 Market Analysis of Telecom Sector in Pre-paid Cash Card Retailing

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A

PROJECT STUDY REPORT

ON

TRAINING UNDERTAKEN AT

AIRTEL, JAIPUR

TITLED

MARKET ANALYSIS OF TELECOM SECTOR

IN PRE-PAID CASH CARD RETAILING

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Jitendra


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Virahyas

[email protected]

2009-2011

DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION,JAIPUR

DECLARATION

I xxxx declares that the project report titled MARKET ANALYSIS OF TELECOM

SECTOR IN PRE-PAID CASH CARD RETAILING is based on my project study. This

project report is my original work and this has not been used for any other purpose

anywhere.

Name of the Student

xxxx

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PREFACE

Indian industry is waking up to the challenges thrown in by market economy, policies

and globalization. To survive in this highly competitive scenario, heavy emphasis is

laid on getting to know the customers basic needs and keeping abreast with the latest

technology. The collective efforts of both assume relevance in this context.

Knowledge of market is essential for the development of the product. The needs of the

consumers change very often and so the companies are forced to incorporate these

changes within themselves. This point becomes more important for an organization

that is acquiring a brand that is considered as a regional brand, OASIS the voice of

Rajasthan.

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The present study attempts to capture the economics of telecom prevalence in Jaipur

with a view to facilitate increased and value added services to the customers. The

main purposes of the project are following:

To study the market players in telecom in Jaipur.

To find out the most preferred brand in the market.

To know the awareness level of consumers about Airtel.

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mrs. Rawal (Marketing Head) for guiding me

right form the inception till the successful completion of the project. I sincerely acknowledge

her for extending their valuable guidance, support for literature, critical reviews of project and

the report and above all the moral support She had provided to me with all stage of this

project.

Iwould also like to thank the supporting of all the company department,especially for the

Mr.Jitendra Virahyas for their help and cooperation throughout our project.

xxxxx

MBA III Sem

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

The project is an extensive report on how the Airtel company markets its strategies and how

the company has been able in tackling the present tough competition and how it is cooping up

by the allegations of the quality of its products. The report begins with the history of the

products and the introduction of the Airtel company.

This report also contains the basic marketing strategies that are used by the Airtel company of

manufacturing process, technology, production policy, advertising, collaboration, expor

scenario, future prospect and government policies. The report includes some of the key salient

features of market trend issues.

In todays world of cut throat fierce competition, it is very essential to not only exist but also to

excel in the market. Todays market is enormously more complex. Hence forth, to survive in

the market, the company not only needs to maximize its profit but also needs to satisfy its

customers and should try to build upon

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CONTENTS

S.no. Particulars Pages

1. Introduction to the Industry1.1 Indian Cellular Market - Earlier Roadblocks & Their Resolution

1.2 Developments In The Cellular Industry

1.3 Future Trends And Development

1.4 Regulatory Issues

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2. Introduction to the Organization

2.1 Bharti Group

2.2 Management Structure2.3 Bhartis Vision

2.4 Core Value of Bharti

2.5 Business Strategy

2.6 Mobile Strategy

2.7 Competitive Strength

2.8 Mobile Division

2.9 Network

2.10 Achievements

2.11 Awards And Recognition

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3.

Research Methodology

3.1 Title of the Study

3.2 Duration of the Project

3.3 Objectives of Study

3.4 Type of Research

3.5 Sample Size and method of selecting sample

3.6 Scope of Study

3.7 Limitation of Study

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4. Facts and Findings 31 64

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5. Analysis and Interpretation 65 85

6. SWOT ANALYSIS 8687

7. Conclusion 88

8. Recommendation and Suggestions 89-91

9. Appendix Questionnaire 92-94

10. Bibliography 95

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1. INTRODUCTION TO INDUSTRY

In the early 1990s, the Indian government adopted a new economic policy aimed at improving

India's competitiveness in the global markets and the rapid growth of exports. Key to achieving

these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai

and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are

further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C"

being the least attractive. The regulatory body at that time the Department oTelecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-

four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular

service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was

stipulated that no firm can win in more than one metro, three circles or both. The circles of

Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and

Assam had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok

Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The

government decided to set up TRAI to separate regulatory functions from policy formulation,

licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole

responsibility of the DOT. High license fees and excessive bids for the cellular licenses put

tremendous financial burden on the operators, diverting funds away from network. As a result,

by 1999 many operators failed to pay their license fees and were in danger of having their

licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom

Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by

a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid

to the government.

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1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR

RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by

several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some o

these roadblocks / current position is tabulated below:

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ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment

of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum, while

businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with

4/5 major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all

operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making

roles vested in different bodies.

Interconnect terms since rationalized, risks on pass through income to DOT / BHART

(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in

methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared

with vacation of frequencies for usage by GSM operators.

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Problems in Financial closures due to:

Licensing tenure of 10 years Large up front cash requirements from promoters due to heavy license fee burden in

initial stages of deployment Asset based financing approach by Indian Financia

Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee payments mitigated with migration to

revenue sharing mode allowing promoters to deploy more capital for capita

expenditure; project financing being considered by most financial institutions.Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine

allowing ease of entry / exit - paves the way for full control of businesses by foreign

companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective

measures taken, market / subscriber base expected to zoom.

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased

against the former. Despite the recent gains of the cellular industry, not everything is rosy. The

cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people. In

recent years, many foreign companies had pulled out from their cellular joint ventures in India

due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulledout from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of

Thailand and Jasmine International from JT Mobile.

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In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of

Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti

Cellular. Bell South International has also indicated its intention to pull out from Skycel

Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice

Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is

uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger and acquisition wave

sweeping across the Indian cellular industry in recent years. Hong Kong-based Vodafoneison

Whampoa, via Vodafoneison Telecommunications (HK), acquired major stakes in Sterling

Cellular (December 1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000).

Through a partnership with local company, Kotak Mahindra Finance, Vodafoneison Whampoa

practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limi

on foreign ownership in Indian cellular operators. Vodafoneison Whampoa is also the

controlling shareholder of Vodafoneison Max Telecom. Not to be outdone, Bharti Enterprises

another major cellular player acquired control of JT Telecom, which was later renamed

Bharti Mobile (December 1999), and

Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the

Punjab license of Essar and started operations, giving competition to the lone operator there

Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into

one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in

four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses,

followed by Escotel with four, Vodafoneison with three, and Reliance and Idea cellular with one

each. Bharti and Vodafoneison have already commenced operations in all the circles whileIdea is set to launch in Delhi. Escotel and Reliance have not made any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001.

BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in

January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was

scheduled for 2 October 2002. However, this has been postponed until after mid October

Once BSNL rolls out its service, most telecom circles will have four cellular operators.

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There will be tremendous competitive pressure, which will result in lower tariffs. Future rate

cuts are expected, which will drive demand, together with falling handset prices and the

introduction of prepaid services. In the midst of declining interest in technology stocks, Bhart

came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the

success of its cellular service, the company got a very good response from the primary market.

The total size of the IPO was 185 million shares at a floor price of Rs10.

The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used

to fuel its investment in long-distance, basic and cellular services.

As of October 2002, only BPL Mobile has launched commercial general packet radio service

(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea

have GPRS-enabled networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively promoting their

brand and service portfolio through high-visibility advertising and promotional campaigns

Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on

hoardings and kiosks. Public transport like the city rail system and cabs are used widely to

carry the message of mobility.

Customer-focused activities are gaining traction among cellular operators with the

establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange

Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like

discounts on airfare, food and beverages, among others. Others offer special privileges in

retail outlets, cinemas and music shops.

Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have

concentrated on offering differentiated services for businesses. However, as operators realize

that offering basic voice and Short Message Service (SMS) will get them the numbers but not

the margins, some are now seriously looking at the enterprise segment for provisioning

superior services.

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Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and

instant alerts are being offered. A variety of mobile applications are finding takers among the

enterprise segment. Bharti is in the process of introducing a facility to fleet management

companies so that they can improve the efficiency of trucks or buses by tracking movement

and ensuring higher-use, accurate route planning.

Premium automakers are also installing a global system for mobile communications inside a

vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose

enhanced services like user-defined call routing to prevent misuse. Calls can be barred,

limiting access to select numbers and diverting calls to one single number. Broadcasting

services are also quite popular, especially among fast food centers that have a central number.

Group SMS is quite popular, especially among enterprises both in the service as well as the

fast-moving consumer goods (FMCG) segment that have a large field force and need to

provide regular updates on inventory status, discount schemes and movement of goods from

warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward

transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to

maintain their lead.

The implementation of enhanced networks like 2.5G will enable operators to offer data

services. This is an opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI means that prices will no longer

be controlled, thus there is less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality of coverage is crucial

especially for the business subscriber.

The bigger the service provider's national presence, the better it is for businesses. On

the roaming front, signing up with a national operator is advantageous.

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Limited mobility wireless in local-loop services (by fixed network service providers) wil

be a disadvantage for cellular operators in the short term. Consequently, operators

need to streamline their customer relation activities and adopt aggressive subscriber

acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A

document buried in the sands of time. The next major policy document, which was produced,

was the National Telecom Policy of 1994, a consequence of the on going process ofliberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DoT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995 Tenders for 2nd operator in basic services apart from DoT on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rathe

than a series of action points. Like other policies, it sought to achieve the impossible in finite

time like improve quality of service and its availability, wide coverage (a phone in every

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village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn

additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had

also allowed private operators in value added services.

To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21

circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The

basic premise on which competition has been introduced is that every circle will have one

private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/

BHARTI have the option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme, which was

broadening the reach of telephony in India, has not been met. Even liberalization policies were

not implemented properly. The regulator TRAI was set up after delays and confusion and even

after its creation, DoT continued to fight with it in courts. It was also affected by the resource

crunch, and financing options like BOT, BOOT and BOLT was not used at all. The major policy

direction it showed was to allow private sector entry in both basic and value added services.

The intention, though noble failed to achieve its goals because of improper implementation, the

economic costs are still borne by the end user.The telecom sector has witnessed some

fundamental structural and institutional reforms in the past decade. telecom equipmen

manufacturing was completely deregulated in 1991.

Value-added services (including cellular services) were thrown open to private secto

participation in 1992. An independent telecom regulatory Authority of India was set up in 1997

A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing

independent service providers to enter the sector ending the earlier monopoly of VSNL

Reorganization of DoT, separating policymaking function and service provision and

corporatization of DoT's operational network are two major institutional reforms, which need to

be implemented.

2. INRODUCTION TO THE ORGANISATION

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2.1 BHARTI GROUP

Bharti Enterprises has been at the forefront of technology and has revolutionizedtelecommunications 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 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.

Bharti is the leading cellular service provider, with a footprint in covering all four metros. It has

over eight million satisfied customers.

JOINT VENTURES

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 Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in

telecommunications services. Its subsidiaries operate telecom services across India. Bhart

Tele-Ventures is India's leading private sector provider of telecommunication services based

on a strong customer base consisting of approximately 8.37 million total customers which

constitute, approximately 17.67 million mobile and approximately 2704,000 fixed line

customers, as of June 30, 2004Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

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2.2 MANGEMENT STRUCTURE

The group has been structured to create functional and operational specialization with a linear

vision of business lines and functional areas. The Company is headed by Chairman and Group

Managing Director- Sunil Bharti Mittal who is assisted by two Joint Managing Directors- Akhi

Gupta and Rajan Bharti Mittal. The Company also has two Presidents- President Mobile

Services and President Infotel Services, this responsibility includes Fixed-line, Long Distance

and Broadband Services. The Presidents report to the Group Chairman and Managing

Director. The head of units and Strategic Business Units (SBU) report to the respective

business's President.

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PROFILE OF THE COMPANY

Historical prospective of Bharti Airtel:-

Sunil Bharti Mittal:-

Chairman& Managing Director since October 2001

Board director since: July 1995

Age: 50 years

Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. Head quartered at

New Delhi, India.

Bharti Airtel, Indias leading private integrated telecom company has been at the forefront of

the Telecom revolution and has transformed the telecom sector with its world-class services

built on leading edge technologies. Bharti has been a pioneering force in the telecom sector

and today enjoys a strong nationwide presence.

Sunil started his career at a young age of 18 after graduating from Punjab University in

India and founded Bharti, with a modest capital, in the year 1976. Today, at 50 he heads a

successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40

billion and employing over 30,000 people.

Bharti has grown successfully in partnership with various leading companies of the world -

Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other

businesses in the group are consumer electronics (Bee tel), life insurance with AXA of France

(Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and

export fruits and vegetables to the world (Field Fresh) Bharti has recently entered into a JV

with Wal-Mart for setting up supply chain, logistics and cash and carry to support the

burgeoning retail market in India.

Sunil is an alumnus of Harvard Business School, MA, USA.

Sunil has been conferred one of the highest civilian award Padma Bhushan.

Sunil has been conferred the degree of Doctor of Science (Honoris Causes) by the G B Pant

University of Agriculture & Technology.

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Sunil is an Honorary Fellow of The Institution of Electronics and Telecommunication

Engineers (IETE)".

Sunil is the Honorary Consul General of the Republic of Seychelles in New Delhi, India.

Bharti Enterprises, India's leading telecom conglomerate, has been at the forefront o

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 telecom leaders

like SingTel, Singapore; British Telecom, UK; E.M.Warburg Pincus, USA; Talia, Sweden and

New York Life International, USA.

Bharti Airtel was founded in 1995, to the name of BTVL (Bharti Tele Venture Limited).Its head

quarter is in New Delhi. It is Public listed company on BSE. The named changed to Bhart

Airtel in early 2006.

Bharti Tele-Ventures Limited (BTVL) is India's largest TelecomBusiness operator with more

than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband

services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal

The company also provides telephone services and Internet access over DSL in 14 circles

The company complements its mobile, broadband & telephone services with national andinternational long distance services. The company also has a submarine cable landing station

at Chennai, which connects the submarine cable connecting Chennai and Singapore. The

company provides end-to-end data and enterprise services to the corporate customers through

its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles,

VSATs, ISP and international bandwidth access through the gateways and landing station.

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

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

Bharti Airtel owns the Airtel brand and provides the following services under the brand name

Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line

Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services

(Telecommunications Consulting for corporate). It has presence in all 23 circles of the country

and has the covers 71% of the current population till FY07.

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Leading international telecommunication companies such as Vodafone and SingTel held

partial stakes in Bharti Airtel.

In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey

in the Channel Islands by the local telecommunications regulator the JCRA. In September

2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile

telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the

launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airte

signed a MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed

network. In August 2007, the company announced it will be launching a customized version of

Google search engine that will provide an 'array of services' to its broadband customers.

In March 2008, Bharti Airtel will roll out third generation services in Sri Lanka in

association with SingTel. This is because Singapore-based Asian telecom major SingTel

which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it has already

third generation networks in several markets across Asia.

Organization culture of Bharti Airtel:-

Organization Culture is a Dynamic system of shared values, beliefs, philosophies,

experiences, habits, behavior that give an organization its distinctive character.

This excellence extends beyond technology roles, and is equally important to how we

manage and sustain this rapid growth.

The spirit of innovation and excellence.

The opportunity for cross-functional moves.

Taking a risk on new ideas and giving us ours own creativity space to operate in.

External training courses are sponsored to ensure that the objective of offering continuous

professional development is achieved.

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Various department of Bharti Airtel:-

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2.3 BHARTIS VISION

To make mobile communications a way of life and be the customers first choice.

BHARTIS MISSION

Meet the mobile communication needs of the customer through

1) Error free service

2) Innovative products and services and

3) Cost efficiency.

4) Unified messaging solutions

Airtel from Bharti Cellular Limited is a part of the biggest private integrated telecom

conglomerate, Bharti Enterprises.

2.4 CORE VALUE OF BHARTI

Innoventuring

Generating and implementing entrepreneurial and innovative ideas, to create new

growth engines.

Customer First

Committed to delivering service beyond the expectations of the customer.

Performance Culture

Benchmarking processes and performance against world-class standards helps to

distinguish between performers and non-performers by valuing achievement at the

individual as well as the team level. The culture encourages and invites feedback

learning and ideas sought and acted upon.

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Valuing Partnership

Committed to building exemplary relationship with partners, which stands on the

principles of mutual trust and mutual growth.

Valuing People

Nurtures an environment where people are respected and their uniqueness is

valued. Firmly believing that people are key differentiates.

Responsible Corporate Citizenship

Committed to making a positive and proactive contribution to the community and as

a responsible corporate citizen will contribute to and abide by environmental and

legal norms.

Ethical Practices

Will uphold the highest ethical standards in all internal and external relationship and

will not allow misuse or mis-representation of any facts.

2.5 BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective isTo capitalize on the growth opportunities that the Company believes are available in

the Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus

on providing mobile services.

The Company has developed the following strategies to achieve its strategic objectives:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with minimum geographicacoverage;

Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

Position itself to tap data transmission opportunities and offer advanced mobile data

services;

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Focus on satisfying and retaining customers by ensuring high level of custome

satisfaction;

Leverage strengths of its strategic and financial partners.

Emphasis is laid heavily on human resource development to achieve operational efficiencies.

2.6 MOBILE STRATEGY

Capture maximum telecommunications revenue potential with minimum geographica

coverage to maximize its revenues and margins.

Build high quality mobile networks by deploying state-of-the-art technology to offer

superior services.

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.

Attract and retain high revenue generating customers by providing competitive tariffs,

offering high quality customer services.

2.7 COMPETITIVE STRENGTH

Bharti Tele-Ventures believes that the following elements will contribute to the Company's

success as an integrated telecommunication services provider in India and will provide the

Company with a solid foundation to execute its business strategy:

Nationwide Footprint - As of June 30, 2004, approximately 92% of India's total mobile

subscribers resided in the Company's sixteen mobile circles. These 16 circles

collectively accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to better anticipate industry

trends and capitalize on new telecommunications-related business opportunities

The strong brand name recognition and a reputation for offering high quality service to

its customers;

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The Company's strong relationships with international strategic and financial investors

such as Singtel, Warburg Pincus, International Finance Corporation, Asian

Infrastructure Fund Group and New York Life Insurance.

Quality management teams with vision and proven execution skills.

2.8 MOBILE DIVISION

The Indian mobile market, according to the (COAI), has increased from approximately 1.2

million subscribers as of March 31, 1999 to approximately 37.38 million subscribers as of

December 31, 2004.

Despite this rapid growth, the mobile penetration rate in India, at approximately 3.6% as of

December 31, 2004, is significantly lower than the average mobile penetration rate in other

Asian and international markets.

The number of mobile subscribers in India is expected to show rapid growth over the next four

years, 2006 projected it at 50 million by COAI and 44 million by Gartner.

Bharti Tele-Ventures believes that the demand for mobile services in India will continue to

grow rapidly as a result of the following factors:

Lower tariffs and handset prices over time;

Growth in pre-paid customer category;

Greater economic growth and continued development;

Higher quality mobile networks and services; and

Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the

twenty-three telecom circles in India. It proposes to consolidate all its subsidiaries providing

mobile services under Bharti Cellular Limited.

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2.9 NETWORK

The map below depicts the location of, and provides certain information for, Bharti Tele-

Ventures' existing mobile circles in India:

The key demographics of Bharti Tele-Ventures' mobile circles are set forth below.All India Bharti Circles Bharti as % of All India

Number of circles

22 16 73%

Area of the circles (in '000 sq. km)(1)

3,278 1,848 56%

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Population in the licensed areas (in Mn)(2)

1,027 593 58%

Market Mobile subscribers in the licensed areas (in Mn) (3)

37.38 36.31 97%

Market DELs in the licensed area (in Mn) (4)

37.7 30.7 81%

Number of vehicles in the licensed areas (in '000s)(5)

36,132 29,025 80%

1. Area estimates are from National Census, 2001.2. Population estimates for all the circles other than the metropolitan areas are as per

National Census, 2001 and are as of March 1, 2001. Population estimates for the Uttar

Pradesh (West) circle is 37% of the total population of the state of Uttar Pradesh.

3. Based on data released by the COAI on the total number of mobile subscribers in the

circles as of December 31, 2004.

4. DELs as on March 31, 2002. Based on data released questions and Government

statistics as per The Financial Express dated June 10,2002.5. Vehicles comprise four wheeler and two wheeler non-commercial.

6. Vehicles and are derived from data released by the Motor Transport Statistics of India

as of March 31, 1997 in its most recent report.

2.10ACHIEVEMENTS

The largest private sector in integrated telecommunications services group in India in

terms of the number of customers.

Largest Mobile footprint in India, covering 20 of the 23 licensed areas.

Proven track record of managing growth - both organic as well as by way of

acquisitions.

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Existing foreign shareholders have acquired direct and indirect equity interests in the

Company for a total consideration exceeding US$1 billion.

First and largest private telecommunications services company offering fixed-line

services in India.

First private telecommunications company to launch long distance services.

First off the block to launch fixed-line services in all the four circles of Delhi, Haryana,

Karnataka and Tamil Nadu.

FIRST AMONGSTFIRST operator to revolutionize the concept of retailing with the inaugurations of connects

(exclusive showrooms) in 1995.

FIRST mobile communication service provider in India to be certified for ISO9001: 2000.

FIRST in world certified by British Standards Institution for mobile Communication.

FIRST to expand its network with the installation of second mobile switching centers in

1997.

FIRST TO introduce the intelligent network platform first to provide retail subscribers byforming an association called World 1 Network.

FIRST to provide roaming facility in USA.

FIRST to introduce a wide array of value added services like Smart mail, fax facility, call

waiting, Web-messages, information services etc. to enhance the convenience of its

subscribers.

2.11 AWARDS AND RECOGNITIONBharti Tele-Ventures, its subsidiaries and management have received several awards and

recognitions, including:

Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in November

2001 in the Asian edition of the "tele.com" magazine with analytical inputs from research

consultants Frost &Sullivan.

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The leading telecommunications service provider in India in a survey of Indian

companies conducted by Business World in association with Indian Marketing Research

Bureau in September 2001.

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The Techies award from Information Communications World, an international business

magazine, for four consecutive years (1997 to 2000) for brand excellence, network quality,

customer service and value added service in our Delhi mobile circle.

Golden Peacock National Training Award 1999 to Bharti Cellular for our Delhi mobile

operations from the Institute of Directors, a non-profit association in India committed to

improving the competitiveness of Indian business by focusing on development of business

leaders, for the best human resources and training practices.

Ascent Times of India and Sodexho Pass award in 1999 from the Asia Pacific HRD

conclave to Bharti Cellular for corporate excellence in the category of most innovative human

resource practices.

Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honored as " One

of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for the year 2001

by international business magazine, Business Week.

Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by Business

India.

Mr. Sunil Bharti Mittal was awarded the Dataquest IT man of the year 2002.

Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World HRD

congress.

Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial Officer

for year 2001 for Mergers & Acquisitions activities by EIU.

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Introduction of Indian Telecom sector

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. This is expected to

soar in the next five years.

Recognizing that the telecom sector is one of the prime movers of the economy, the

Governments regulatory and policy invites have also been directed towards establishing world

class telecommunications infrastructure in India. The telecom sector in India therefore offers

an ideal environment for investment.The telecommunications initiative in the country is lead by Minister of Communications

through the Department of Telecommunication $ Department of Telecom services and its

undertaking 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.

About GSM:-

The most prevalent wireless standard in the world today, is GSM. The GSM association

(Global system for Mobile communications) was introduced in 1987 to Promote and expedite

the adoption, development, deployment and evolution of the GSM standard for digital wireless

communications.

The GSM association was formed as a result of European community agreement on the

need to adopt common standards suitable for cross border European Mobile

communications.

Starting of primarily as a European standard, the Group special Mobile as it was then called

soon came to represent the Global system for Mobile communications as it achieved the status

of world-wide standards. GSM is today, the worlds leading digital standard accounting for 70%

of the global digital wireless market.

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The Indian Government when considering the introduction of cellular services into the Country,

made a landmark decision to introduce the GSM standard, leapfrogging Obsolescent

technologies /standards.

Although cellular license were made technology neutral in September 1999, all the private

operators are presently offering only GSM based mobile services. The new licenses for the 4 th

cellular licenses that were awarded in July 2001 too, have adopted for GSM technologies to

offer their mobile services.

The GSM standard for digital cell phones was established in Europe in the mid-1980s--long

before digital cellular phones became common place in American culture.

It is now possible to locate a person using a cellular phone down to a range of a few meters,

anywhere on the Globe.

About Airtel

Airtel cellulars antecedents date back to 1995 that time it is known to the named by BTVL

(Bharti tele venture limited) and named changed in early 2006 to Bharti Airtel. It is established

by Sunil Mittal Bharti.

Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largesTelecomBusiness operator with more than 64.4 million subscribers as of April 2009. It also

offers fixed line services and broadband services. It offers its TELECOM services under the

Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and

Internet access over DSL in 14 circles. The company complements its mobile, broadband &

telephone services with national and international long distance services. The company also

has a submarine cable landing station at Chennai, which connects the submarine cable

connecting Chennai and Singapore. The company provides end-to-end data and enterprise

services to the corporate customers through its nationwide fiber optic backbone, last mile

connectivity in fixed-line and mobile circle. Bharti enterprises are public listed company, and its

revenue is $6 billion. In July 2007 the company announced to the collaboration with Nokia-

Siemens for a $900 million expansion of its mobile and fixed network. Vision of the company is

125 million customers on 2010.President of Bharti Airtel is Manoj Kohli, and Joint Managing

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Director is Rajan B. Mittal. Airtel has three BSU unit respectively Mobile, Broadband and

telephone enterprises.

The total customer of Airtel as on 31st May 2009 is 66825935.The company will invest

up to $3.5 billion this Fiscal 2007-08 in network expansion. In Mar 2009 Bharti Airtel will rollout

3G service in Sri Lanka In associated with SingTel, which stake is 30% in Airtel

The study has revealed the following results:-

The Market share of following GSM services in India is following:-

Group Company Total Subscribers

Airtel(GSM) 66825935

Reliance (CDMA + GSM) 48696295

Vodafone Essar(GSM) 47466853

BSNL(GSM) 36997418

IDEA(GSM) 26140643

Tata (CDMA) 25476062

Aircel(GSM) 11491986

Spice(GSM) 4497675

MTNL(GSM + WLL) 3350437

BPL(GSM) 1331261

HFCL (CDMA) 326150

Shyam (CDMA) 108396

Total (All India) 272709111

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The market share in percentage of the various GSM service providers in the corporate sector

of India is as follows:-

Airtel: - 24.50% Tata Indicom: - 9.34%

BSNL:-13.57% Vodafone: - 17.41%

Idea:-9.59% Reliance (GSM+CDMA):- 17.86%

Others:-7.73%

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4. RESEARCH METHODOLOGY

RESEARCH METHODOLOGY - DEFINED

a. Research is the systematic investigation to establish facts or collect information on a pre-

decided subject.

b. Methodology is the specification of the system of principles and techniques used in a

particular discipline.

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Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Finding & Recommendations


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4.1 TITLE OF THE STUDY

Market Analysis of Telecom Sector in Pre-Paid Cash Card Retailing

4.2 DURATION OF THE STUDYThe duration of the project training was 45 days (24 th jun, 2010 to 9th Aug, 2010) undertaken to

accomplish the title and objective.

4.3 OBJECTIVES OF THE STUDY

To study the market players in telecom in Jaipur.

To find out the most preferred brand in the market.

To know the awareness level of consumers about Airtel.

4.4 TYPE OF RESEARCH DESIGN

SURVEY METHOD

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

Descriptive research is used in the preparation of the project.

There is some point and facts which were not found earlier hence exploratory research is

used.

A Descriptive research technique is also used as I again worked upon those facts which were

earlier found by some other.

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4.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

SAMPLE SIZE:- 488 Shopes.The method of selecting sample is randomly.

SECONDARY DATA

For the completion of the research it was important that the secondary data should be

supplemented by primary data originated specifically for the research in hand. The primary

data was gathered through questionnaires. My research findings are based on information

collected from filled questionnaires. The main sources of secondary data were: -

Internal Data:Some previous market studies provided by the guide,

Reports and database of HEXACOM provided by guide

PRIMARY DATA

Method used to collect primary data is:

Questionnaire

Questionnaire Method: For the purpose of the study survey was conducted across different

areas of Jaipur city. The Questionnaire (a sample copy is attached) was prepared according tothe objectives of the project and was administered accordingly. The data gathered through this

exercise became the primary data.

SAMPLING ERRORS

While interpreting the results I kept in mind the potential errors. Two sources of errors are

random sampling error, which arises due to the fact that the sample may not be a true

representative of the population, and non-sampling errorwhich comes up because of faulty

coding, untruthful responses, respondent fatigue etc.

QUESTIONNAIRE DEVELOPMENT PROCESS

In order to gather primary data, I used structured questionnaires, prepared in advance to elicit

the necessary response from the respondents. Questionnaires help to facilitate communication

and know the perceptions of the respondents clearly. The following points were kept in mind

while structuring the questionnaire.

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Content of the questions: the questions had been framed keeping in mind the objective of the

research. Type of questions: the questionnaire consists of open-ended, closed-ended

dichotomous and multiple-choice questions. Further I made use of likert scale to get a more

vivid response.

Wording of the questions: the questions are such that they are easy to understand and the

respondents do not have any hesitation in answering the questions.

Note: - A sample questionnaire is enclosed with the report in Annexure- I at the end.

4.6 SCOPE OF THE STUDY

Raisar Plaza is the hub for the electronicgadgets retailing cash card and Telecom outlets. It

has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of

which the ground, basement and 1st floors deal with the retailing of cash cards. There are tota

488 shopes.

4.7 LIMITATIONS OF THE STUDY

No project is without limitations and it becomes essential to figure out the various constraints

that we underwent during the study. The following points in this direction would add to our total

deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/wholesalers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience also because hurdle for me.

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8. Some retailers did not answer all the questions or do not have time to answer.

All research papers have its own limitations in terms of methodology and the resources

available for its conduct. This study is no exception to it and has been carried under following

limitation:

Some of the respondents were not forthcoming with information as they thought it

to be a waste of time.

A number of respondents were biased towards a particular brand, which was

giving them better returns.

Some of the respondents were not available so, contacted person was not able

to present a fair view.

Respondents lack of time to give information and their casual attitude was a big

hindrance in the study.

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5. FACTS & FINDINGS

RAISAR PLAZA

About the market:

This market is the hub for the electronicgadgets retailing cash card and Telecom outlets. It

has shops dealing in apparel and a couple of offices. This plaza consists of six floors out of

which the ground, basement and 1st floors deal with the retailing of cash cards.

Total Number of Shops : 488

Shops Dealing in Cash Cards : 33

1. Details of the retail outlets

NATURE OF RETAIL OUTLETS NO OF RETAIL

OUTLETS

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 5 -

(ii) Departmental Stores - -

(iii) Telecom Outlet 38 31

(iv) Electronic Gadgets 14 -

(v) Others 431 2

Total 488 33

2. Brand holding in the retail outlets

BRAND NO. OF OUTLETS

AIRTEL 56

VODAFONE 38

BSNL 7

Reliance 6

Exclusiveness and combination of brands selling along with others

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AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

24 2* 2** - 6 6

Out of the 2 outlets 1 sells BSNL Recharge coupon

Out of the 2 outlets 1 sells BSNL Recharge coupon

OTHERS Outlet details:

RETAIL OUTLET NO. OF OUTLETS

Electronic Repair Shop 2

INFERENCE:

MARKET LEADER: VODAFONE

The retailers prefer vodafone because

Numerous schemes

Better service

Customer preference

5.1 IN RESPECT TO RAJA PARK

About the market:

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This place occupies a prominent position due to the absence of other market in near by

vicinity. The market is an agglomeration of boutiques, showroom dealing in apparel

departmental stores and lots of telephone booths.

Total number of Shops : 810

Shops dealing in cash cards : 24

Details of the retail outlets

NATURE OF RETAIL OUTLETS NO OF RETAIL

OUTLETS

OUTLETS SELLING CASH

CARDS

(i) STD/ISD/PCO 20 1

(ii)Departmental stores 17 -

(iii)Telecom Outlet 9 9

(iv) electronic Gadgets 12 2

(v)Others 752 12

Total 810 24


BRAND NO. OF OUTLET

AIRTEL 21

Vodafone 21

BSNL 12

Reliance 8

3. Exclusiveness and combination of brands selling along with AIRTEL

AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

20 - 1* 1 6 4

Outlet sells BSNL Recharge coupon along with AIRTEL cash card

OTHERS Outlet details


Pharmaceuticals 2

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Book Depot. 2

Stationary Stores 2

Music Gallery 1

Bakery 1

Mobile Repair Shop 1

Ice Cream Parlor 1

Garment Shop 1

INFERENCE:

MARKET LEADER: AIRTEL

Airtel has an edge in this area.

The shops here have high inventory & the sale is also higher.

The absence of any other major market also helps them.

The OTHERS have an upper hand in terms of sale than the electronics, STD/PCO,

Departmental etc.

5.2 IN RESPECT TO M I ROAD

About the market:

Market with a rich history, Its frequented with bookstores, Telecom outlet, Banks (CANARA

STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower

shop. This market surrounds the city.

Total number of Shops : Above 450



NATURE OF RETAIL

OUTLETS

NO OF RETAIL OUTLET OUTLETS SELLING

CASH CARDS


(ii)Departmental Stores 1 -


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Electronic Gadgets 18 -

(v) Others 2

Total 15


BRAND NO. OF OUTLET

AIRTEL 15

VODAFONE 15

BSNL 3

RELIANCE 2


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

15 - - - 3 2



Pharmaceutical 1

Watch Showroom 1

INFERENCE:


STD/PCO outlets have a major holding over here followed closely by the telecom outlets.

The customers of this area are mostly of working class followed by students and

Vodafone with its better coverage & corporate image satisfies there needs.

5.3 IN RESPECT TO CHANDPOL

About the market: Highly populated area. It has shops dealing in whole sailing i.e. in the bulk

selling of the goods to the retailers & other shops regarding food grains, stationers, timber

related products & shops selling cycles.


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OBSERVATIONS :

Specifications of the retail outlets

NATURE OF RETAIL

OUTLETS


CASH CARDS

(I) STD/ISD/PCO 6 2




(v) Others 425 2

Total 463 5


BRAND NO. OF OUTLET

AIRTEL 5

VODAFONE 5

BSNL 2

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

5 - - - 2 1



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Stalls 1

Pharmaceutical 1

INFERENCE:

MARKET LEADER: Neck-to-Neck between Vodafone and AIRTEL

Its not a commercial area the sales of the cash card is low.

Proximity to johari bazaar, chaura raasta and other major markets

thus its facing a lot of competition.

BSNL recharge coupons are a big hit with the customers.

5.4 IN RESPECT TO STATION ROAD

(From Station to Grah sangrah)

About the market

This market covers the station (Railways). Thus you find here dhabas, bookstores, STD/ PCO

Booths and sweet-meat shop.


Shops dealing in cash card : 9

OBSERVATION:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS


(ii)Departmental Stores 9 2

(iii)Telecom Outlet - -

Electronic Gadgets - -

(v) Others 138 4

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Total 156 9

2. Brands holding in the retail outlets


AIRTEL 8

VODAFONE 9

BSNL 3

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

8 1 - - 3 1



Hotel + STD 1

Enterprise + STD 1

Book Depot. 1

Panwala 1

Trading Company 2

INFERENCE:


The Recharge coupon of BSNL sales is high. More prominence in this area is given to AIRTEL

with majority of shops selling more AIRTEL cards. The reasons are:

Village connectivity is less in case of Vodafone.

Good service to customers & more profit to retailers. For some its

Affiliation & sense of duty.

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5.5 IN RESPECT TO RAILWAY STATION ROAD

(Extended from Grah Sangrah to Chandpol)

About the market:

Covers a stretch of 2-3 kilometer Its the most prominent area of the city playing host to hotels,

main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies.



OBSERVATIONS:Specifications of the retail outlets

NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS





(v) Others 329 2

Total 376 8


BRAND NO.OF OUTLETS

AIRTEL 5

VODAFONE 7

BSNL 1

RELIANCE 1


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AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

RIM

AIRTEL &

BSNL

AIRTEL

& RIM

5 2 - 1 1 -

Exclusive retail Outlet of Vodafone

1. Medical shop

2. STD Outlet



Pharmaceuticals 1

INFERENCE:


With its large number of telephone booths and medical shops the market is a major attraction.

Still the coverage here is dramatically poor, only 8 shop deals in cash card retailing.

5.6 IN RESPECT TO LAL KOTHI

About the market:

The focal point of this market is the SMS stadium. The market is an agglomeration of

departmental stores, flower shops & petrol pump. Situated adjacent to tonk phatak.



OBSERVATIONS


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 6 2


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(v) Others 113 -

Total 127 4


BRAND NO. OF OUTLET

AIRTEL 4

VODAFONE 4

BSNL 2

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

4 - - - 2 1

INFERENCE:

MARKET LEADER: VODAFONE Vs BSNL

Irrespective of the fact that AIRTEL has more outlets its BSNL

Recharge coupon that seems to have a hold in this area.

5.7 IN RESPECT TO TONK PHATHAK

About the market: Surrounded by K.v.no.1 School & SBI bank this area consists o

Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of

telecom outlets.



OBSERVATIONS:


NATURE OF RETAIL NO OF RETAIL OUTLET OUTLETS SELLING

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OUTLETS CASH CARDS



(iii)Telecom Outlet 8 6Electronic Gadgets 7 4

(v) Others 222 13

Total 275 34



AIRTEL 26

VODAFONE 22

BSNL 10

RELIANCE 6


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

22 7 2 - 10 6



Pharmaceuticals 2

Book Depot. 2

Studio 2Bakery 1

Cyber Caf 1

Travel Agency 1

Hard Wares Shop 1

Textiles 1

Fashion House 1

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Auto Parts Shop 1

INFERENCE:


Due to its location (its one of the favorable trade routes) & prominent location the sales in this

area is high with AIRTEL having a clear gain over Vodafone.

People relate to AIRTEL as a pride of Rajasthan.

The major contributors of this area are the others followed by

STD/PCO outlets.

5.8 IN RESPECT TO UNIVERSITY MARG

About the market:

Adjacent to the university, Canoria College, Commerce College & podar institute. The market

consists of agglomeration of Xerox shops, PCO booths &departmental stores.

Total number of shops : 128


OBSERVATIONS:


NATURE OF RETAIL

OUTLETS


CASH CARDS

(i) STD/ISD/PCO 4 2


(iii)Telecom Outlet - -Electronic Gadgets - -

(v) Others 121 5

Total 129 9


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BRAND NO. OF OUTLET

AIRTEL 8

VODAFONE 9

BSNL 2

RELIANCE -


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

8 1 - - 2 -



Photostat Shop 4

Ice Cream Parlor 1

INFERENCE:

MARKET LEADER: Neck-to-Neck between Vodafone and AIRTEL

Place is frequented by students & hence here they are the prominent

Customers

Sales low.

5.9 IN RESPECT TO JANTA STORE

About the market:

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Adjacent to the main market tonk phatak This market consists of departmental stores, cyber

cafe, gift shops, restaurants & ice cream parlors.



OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 4 0



Electronic Gadgets 1 1

(v) Others 40 1

Total 62 6


BRAND NO.OF OUTLET

AIRTEL 5

VODAFONE 6

BSNL 2

RELIANCE 1


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

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5 - - - 2 -



Ice Cream Parlor 1

INFERENCE:


This is an residential area near the university campus thus it has a

P.G. houses & covers the govt. Quarters of indira nagar.

5.10 IN RESPECT TO MALVIYA NAGAR

About the market:

It is a residential area, covering two to three main markets. The most prominent locale is the

Gaurav Towers, which is turning out to be the hub of life for teenagers plus its a prime location

area.

Total no of shops : 179


OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS


(ii)Departmental Stores 10 2(iii)Telecom Outlet 3 1


(v) Others 136 3

Total 179 14


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BRAND NO. OF OUTLET

AIRTEL 12

VODAFONE 13

BSNL 5

RELIANCE 3


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

12 1 - 1 5 3



Xerox Shop 2

Stationary Stores 1

INFERENCE:


Compared to the vast area, the numbers of shops dealing with the cash cards are less; this

discrimination is due to the fact that Malviya Nagar is a residential area with three main

markets and each being at the center of 3-4 sectors. Thus limiting the growth of other shops

and the shops has their own faithful customers.

Gaurav towers provide the maximum sales in compared to this main market

5.11 IN RESPECT TO HAWA MAHAL

About the market

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This market deals with the shops selling the traditional dresses of Rajasthan; its also a major

tourist attraction center. The market mainly comprises of clothes shops, departmental stores

and spare automobiles shop.

Total no of shops : 479


OBSERVATIONS :


NATURE OF RETAIL

OUTLETS


CASH CARDS(i) STD/ISD/PCO 10 4




(v) Others 477 -

Total 479 5


BRAND NO. OF OUTLET

AIRTEL 5

VODAFONE 5

BSNL 1

RELIANCE 2


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

5 - - - 1 2

INFERENCE:

MARKET LEADER: VODAFONE Vs AIRTEL

Its a run down market in respect to the cash cards. This place

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doesnt seem to be gaining the customers confidence.

5.12 IN RESPECT TO JOHRI BAZAAR

About the market:

Johri Bazaar is basically known forjewelry shops with a considerable number of clothes

apparel shops and very few electronic retail outlets.



OBSERVATION:Details of the retail outlets

NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS





(v) Others 336 2Total 387 9



AIRTEL 5

VODAFONE 6

BSNL 3

RELIANCE -


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

4 2 - 1* 3 -

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*Only one BSNL Distributor



Stationary Store 1*

Jewelry Shop + STD 1*

*Exclusively sells Vodafone

INFERENCE:


Since most of the stores deal with jewelry shops and clothes apparel they dont want to

diversify into the retail outlets for the cash cards

This is the reason as to why the market though having comparatively larger amount of

departmental stores but only Two shops has gone in for sale of cash cards.

Vodafone is doing better in terms of market penetration as it is having 2 exclusive retail

outlets.

5.13 IN RESPECT TO CHOURA RASTA

About the market: Choura rasta is an agglomeration of bookstores, watch shops and

stationary shops. There are very few showrooms.

Total number of Shops : 378Shops dealing in cash card : 10

OBSERVATION


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

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(ii)Departmental Stores 1 1(recharge

coupon)



(v) Others 357 6

Total 378 10

. Brands holding in the retail outlets

BRAND NO.OF OUTLETS

AIRTEL 6

VODAFONE 8

BSNL 3

RELIANCE -


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

6 2 - 3 - -



Stationary Stores 1

Pharmaceuticals 1

Watch Co.(showroom) 1

Music Gallery 1

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INFERENCE:

MARKET LEADER: AIRTEL Vs VODAFONE

One remarkable thing to be noted over here is that out of10 to12

Watch shops, 3 shops are going in for the sale of cash cards.

And here Vodafone sells exclusively in 2 outlets (no exclusive outlet of

AIRTEL) Moreover here the stock level is comparatively less than that o

of Johri Bazaar but the % of sales is high.

Here the STD/ISD/PCO shops that do sell cash cards are in fact the

Subsidiary of the main shops Their details are:

STD + Plastic center + Telecom outlet STD + General Stores

STD + Stationery (only recharge coupon)

5.14 IN RESPECT TO KISHAN POLE BAZAAR

About the market:

Kishan Pole Bazaarconstitutes ofToys (Bicycle) shops; Outlets dealing with Plastic based

goods, Oil and Paint shops. There are good amount of Provisional (Kirana) stores also. This

bazaar also has a Fine Arts college and an Ayurvedic Hospital and thus few ayurvedic

medicine shops.



OBSERVATIONS;


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 8 2




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(v) Others 304 5

Total 338 7



AIRTEL 6

VODAFONE 6

BSNL 4

RELIANCE 2


AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

RIM

AIRTEL &

BSNL

**

AIRTEL

& RIM

6 - - 1 4 2



Watch Co. + STD 1

Stationary + STD 1

Pan Shop 1

Ice Supplier 1

Oil Trading Corp. 1

INFERENCE:

MARKET LEADER: VODAFONE Vs BSNL

There is considerable number of departmental (Kirana) stores but not even a single shop has

gone in for sale of cash cards.

Baring 1 to 2 shops VODAFONE has got more sales followed by BSNL, and then AIRTEL

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5.15 IN RESPECT TO NEHRU BAZAAR

About the market:

Nehru Bazaaris situated left to Choura Rasta. Shops mainly comprise ofclothes apparels &

few Electrical repairshops.

Total number of Shops : 177 Shops dealing in cash card : 8

OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 4 4




(v) Others 143 2

Total 177 8


BRAND NO. OF OUTLET

AIRTEL 7

VODAFONE 8

BSNL 4

RELIANCE 3


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AIRTEL &

Vodafone

Exclusive

Vodafone

Exclusive

AIRTEL

Exclusive

BSNL

AIRTEL &

BSNL

AIRTEL

& RIM

7 1 - - 4 3



Book Store 1

Watch Company 1

INFERENCE:

MARKET LEADER: Stiff competition between AIRTEL and Vodafone.

Due to its location i.e. being adjacent to the main market it faces a lot of competition.

The market primitively deals in apparels and thus there are only few shops which have

ventured for the retailing of the Cash card

5.16 IN RESPECT TO BAPU BAZAAR

About the market:

Bapu Bazaar is situated left to Johri Bazaar. Shops mainly comprise of clothes apparels

fancy stores & footwearshops.


Shops dealing in cash card : Nil

OBSERVATIONS:


NATURE OF RETAIL NO OF RETAIL OUTLETS SELLING

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OUTLETS OUTLET CASH CARDS

(i) STD/ISD/PCO 3 -


(iii)Telecom Outlet - -Electronic Gadgets 7 -

(v) Others 185 -

Total 192 -

INFERENCE:

This market is all about women starting from Apparels to Footwear

Thus the soul of the market is care of womans need.

There isnt even a single outlet that deals with cash card, this could be due to the fact that

Sarogi Mansion is situated facing the main road.

5.17 IN RESPECT TO SAROGI MANSION

About the market:

Sarogi Mansion is a Shopping Complex. It is an extension of Bapu Bazaar.

Total number of Shops : Above 200


OBSERVATIONS:


NATURE OF RETAIL

OUTLETS

NO OF RETAIL

OUTLET

OUTLETS SELLING

CASH CARDS

(i) STD/ISD/PCO 1 -

(ii)Departmental Stores - -


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(v) Others -

Total 4


BRAND NO. OF OUTLET

AIRTEL 4

VODAFONE 4

BSNL -

RELIANCE -


AIRTEL &Vodafone

ExclusiveVodafone

ExclusiveAIRTEL

ExclusiveBSNL

AIRTEL &BSNL

AIRTEL& RIM

4 - - - - -

INFERENCE:

MARKET LEADER: VODAFONE Vs AIRTEL

Has high inventory stock and so is the sales.

Is prominent because of its location on the main road and is

Particularly famous with the youth as its just a version of a mall.

5.18 IN RESPECT TO INDRA BAZAAR

About the market:

Indra Bazaaris just attached to Jayanti Bazaar. Raizar Plaza (complex known for Telecom

outlets, Computers and Electronic Gadgets) is also included in Indra Bazaars part. Though

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this Ba

Market Analysis of Telecom Sector in Pre-paid Cash Card Retailing

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Transcript of Market Analysis of Telecom Sector in Pre-paid Cash Card Retailing