Summer Assignment Project

On

A comparative study of marketing strategies and

analysis between Reliance Jio and Bharti Airtel

Submitted to:
Dr. Nilesh Pandya

By:
Keshav Sharma

Batch 2019-2021

AMITY GLOBAL BUSINESS SCHOOL

DISCLOSURE

21
ACKNOWLEDGEMENTS

22
Table Of Contents

Chapter 1: Introduction
A) Evolution of telecommunications
B) Industry scenario
C) Companies Profile
Chapter 2: Literature Reviews
Chapter 3: Research Methodology
A) Objectives
B) Research Design
C) Secondary Data
D) Advantages
Chapter 4: Data Analysis and interpretation
A) S.W.O.T Analysis
B) Marketing Strategies
C) BCG Matrix
D) PESTEL Analysis
E) Statistical Comparison
Chapter 5: A) Conclusion
B) Suggestion
C) Recommendation

23
24
Chapter 1:
Introduction

India holds an important market standing as the second largest telecommunications market in the
world. With a 1.20 billions subscriber base it is moving strong and fast. Mobile economy has
shown an exponential growth and has been shown to devote a promising growth in the gross
national product (according to GSM association report). In january 2019, there has been 165%
growth in the app downloads in the last two years. In the first three months of 2019 there were 4.8
billion mobile application downloads.

The credit for this rapid advancement goes to flexible policies of the indian government who have
been standing strong with their huge consumer demands. These policies has allowed an easy
market accessibility and an impartial regulatory structure that has guaranteed opportunity of
telecom services to consumers economical prices. The other factor contributing to the telecom
sector is the deregulation of Foreign Direct Investment (FDI), making it one of the top five
employment generators in the country.

Due to everyday increase in subscribers, there have been a lot of investments and developments in
this sector. According to the data by the Department for Promotion of Industry and Internal Trade
(DPIIT), FDI investments are totalled to US$ 37.11 billions.

Some of the developments are-:

● As per a report by Ericsson, India holds the position of highest data usage per smartphone
i.e 9.8 GB per month.
● Bharti airtel is devising to introduce 6000 new sites and 2000 km of optical fiber in gujarat
as in 2018-2019.

25
● In august 2019, india soared high on becoming a rapidly thriving market for mobile
applications. It remained as the world's fastest growing market for Google play downloads
in the second and third quarter of 2018.
● In december 2019, it decided to reveal its plans to invest US$ 2.86 Billions in its business
as a part of the company's yearlong target.
● As of january 2020, 542 banks have been authorized to give mobile banking services in
India.
● As in august 2019, reliance Jio has been stretching to introduce its loT platform
commercially by january 2020, and has also launched its jio Giga Fiber as broadband
service.
● Idea cellular and Vodafone India have joined hands to emerge as ‘Vodafone Idea, India’s
largest telecom company as of september 2018
Telecommunication sector has made c0mmunication attainable universally, using either
internet or phone. Companies have made framework that pass voice, words, audio or videos
to be delivered anywhere in the world.

➢ Evolution of telecommunications
Transformation of the telecommunications sector holds an important seat in human
inventions. This industry, born in the 1830s, with inventions telegraph, which substantially
decreased communication from days to hours, as compared to modern technologies
decreasing the time span of sending huge amounts of data from hours to seconds.
With the introduction of newer inventions like radio, television, computer,mobile phones,
it has broadened the horizons of the telecommunication sector. These advancements have
not only changed living but also its grasp over doing business.

“Many people see technology as the problem behind the so-called digital divide. Others
see it as the solution. Technology is neither. It must operate in conjunction with business,
economical, political and social systems.”

- Carly Fiorina

26
 ❖ Industry scenario
Telecommunications is diverged into following subsectors: Infrastructure,
equipment,white space spectrum, 5G,mobile virtual network operators (MNVO),
telephone service provides and broadband.
According to a GSMA report India will become the fourth largest country by 2020,
accounting for two out of every three mobile connections worldwide.

With onset of 5G telecom towers in India are set to see a surge as tenancy ration will
accelerate to 2.9 times by 2020 as compared to 1.95 times in 2016.
The Department of telecommunications(DoT) has waived its approval to more than 70 companies
to provide mobile virtual network operations (MNVO). Most of these companies are circling on
Tier 2 and Tier 3 cities.

27
COMPANIES PROFILE

❖ Reliance Jio
28
 One of the countries newest emerging telecom industries Reliance jio infocomm limited,
more familiarly known as Jio, is an indian mobile network operator with its headquarters stationed
in Mumbai, maharashtra. Owned by reliance industries, this company does not provide any 2G or
3G service but operates a national Long-Term Evolution (LTE) network covering all 22 telecom
circles and uses voice over LTE (VoLTE) to administer voice service on its network.
Emergence of Jio has caused a swirl in the indian telecom industry. Jio calls itself to be the largest
data network worldwide, based on mobile data consumption.

According to TRAI (telecom regulatory authority of india) report in february 2019, there are 1.17
billion mobile phone subscriptions in india, there was an upsurge of 140 million subscriptions
science august 2016-a month before introduction of Jio.
The prosperity of Jio soared in rural areas, with more than 500 million wireless subscriptions, 80
million more than 80 million before formally starting its operations.
As reported by Internet and Mobile Association of India in 2017, around 50 million Indians laid
their hands first time on the internet between december 2016-december 2017, connecting them to
web surfs, video streaming and whatsApp messages.

➔ Jio logo
Reliance jio logo as a hidden allegory. The mirror image of Jio reads as “oil”, representing
roots of reliance. Oil trade has drived Reliance to become India’s largest company in the 20th
century. Reliance putting its same faith in jio and sitting with crossed fingers to see Jio in the same
position in the 21st century.

29
 ➔ Branding & Marketing
Bollywood actor Shahrukh Khan launched the beta version of Jio on 27th December 2015 and was
also selected as its brand ambassador.

➔ Network
Jio occupies spectrum in 850 MHz and 1800 MHz bands in 22 Indian telecom circles and has a
pan-India licensed 2300 MHz spectrum, this spectrum is valid till 2035. Reliance communications
and Jio has a sharing deal of 800 MHz band across 7 circles other than beside 10 circles that Jio
already owns. To enable users, Jio signed a packaged with BSNL in September 2016 for intra
circle roaming, to use each other's 4G and 2G spectrum in national roaming mode. It also partnered
with Samsung in February 2017 , to work on LTE- Advanced Pro and 5G.

30
 ➔ History
Jio was birthed as a Beta version for partners and employees on 27th december 2015, on the
auspicious occasion of birthday of Shri Dhirubhai Ambani ( founder of Reliance Industries) . Later
it was launched commercially and became available on 5th september 2016. Further by the end of
January 2019 it emerged as 9th largest mobile network operator in the world and 3rd largest in
India.
Reliance Jio Infocomm Limited was registered in Ambawadi, ahmedabad , Gujarat on 15th
february 2007. By June 2010 it acquired 95% stake in Infotel Broadband Services (IBSL) for
Rs.4800 crore. IBSL was the only company to triumph in all 22 broadband spectrum circles in
India in 2010. Infotel Broadband services limited working as abiding and ancillary of RIL telecom
was then renamed as Reliance Jio Infocomm Limited.
In July 2016 a PIL was filed in Supreme Court by an NGo named Centre for Public Interest
Litigation via Prashant Bhushan challenged the grant for pan-India license by the government of
India. The PIL also stated that Jio was granted to give voice telephony on its 4G data service only
by paying a mere fee of Rs.165.8 crores which was erratic and preposterous and caused a loss of
Rs 2284.2 crore to the exchequer.
Jio always presented its ideas for India that broadband and digital services will longer be seemed
as luxuries but as a basic necessity to be absorbed in plenty amongst consumers and emerging and
small businesses.This eagerness act as an ally with “Digital India” vision launched by the
government in 1st July 2015, providing -:
● Jio Drive
● Affordable devices
31
 ● Digital Healthcare
● Digital Currency
● Digital entertainment and social connectivity
● Digital Education

Company Profile

Type Subsidiary of Reliance Industries

Industry Telecommunications

Founded 15 February 2007

Headquarters Mumbai Maharashtra India

Management at Jio Pravir Kumar (CEO)

Rajneesh Jain (CFO)

32
 Sandip Das (Managing Director)

Owner Mukesh Ambani

Subsidiaries LYF

Website www.jio.com

Net Income Rs 1,148 crore (2019 FY)

Parent Jio Platforms

Revenue Rs 18,632 Crore (2020)

❖ Bharti airtel

On 7th July 1995 largest mobile operator in south asia and the fourth largest in the
world began its journey in the Indian telecommunications as a brand named “airtel” ,
headquartered in bharti Crescent, one , nelson mandela road , New Delhi, India.
Governed by Sunil Bharti Mittal , airtel was named as India’s second most valuable brand
in first brands ranking by Millward Brown and WPP. It is India’s first ever telecom
company to accomplish Cisco gold certificates, and the first ever cellular service provider
to contact out everything except finance and sales marketing in the world to contract
everything excluding finance and sales marketing. Along with companies like Nokia,
Ericssion siemens network, Huawei, it manages its network (microwave links , base
stations, etc). Over these years Airtel has established its presence globally stretching its
operations in sixteen countries extensively in asia and africa.

33
 Looking at the destructive trends in the telecommunications sectors in India have brought
in immense competition and a gigantic consumer base which is expanding rapidly in rural
areas.Airtel has introduced its operations keeping in mind its tentative objectives , target
and ambition to manage its current market share.

With more than twelve million satisfied customers Bharti Airtel brings in a variety of
leading edge technology and s brighter future with its world class services , assistance and
business paving the path of Indian telecommunications sectors towards a glorious
future.Apart from providing cellular services Bharti is also the biggest maker of telephonic
device equipments and first ever company to export its commodities to the United States
of America.

Framed into separate strategic units, Bharti telecommunications have been organized into-
:
● Broadband and telephone services
● Enterprise Services
● Mobile Services
Granting Global System for mobile (GSM) mobile services traversing in twenty three telecom
circles in India by the mobile services group,broadband and telecom services are being provided
in ninety four cities by broadband and telephone service groups. The enterprise services group has
been split in two subunits - Services Top Corporates and Long Distance services (carriers).All
these three groups are provided under the Airtel.

➔ Airtel logo
The read colour of the logo represents their companies passion and dynamism aiding towards their
success worldwide. The unconnected letter ‘a’ represents the meaning of no boundaries to the
expanding world.

34
 ➔ Branding & Marketing
Cricket legend Sachin Tendulkar was appointed as Airtel brand ambassador in december 2019.
Sasha Chettri more popularly known as “airtel girl” holds advertising degree from St. Xaviers
College, Mumbai. She featured in airtel 4G ads which were aired 54506 times between 19
September and 20 November, 2015. Earlier ‘ The airtel girl’ tag was held by actress Rakul Preet
Singh which made her one of the most searched names on google in September 2015.

➔ Network
Owning the radio spectrum 900MHz, 1800MHz, 2100MHz and 2300Mhz bands across the India
and partnering to bring in the best product and services, with world’s most effluent companies like
IBM, Vodafone,Nokia, Ericsson\, Apple , Singtel (Singapore telecom) and many more.

➔ History
Beginning from honest,amateur in 1896 by Sunil Bharti Mittal telecom limited started expanding
its roots all over India and be fitting to offer push button telephones in the era of rotary phones,
shaking hands with Siemens AG of germany during its infancy inatied production of push button
landlines in India rather than importing it from Taiwan, as it earlier. The preparations for mobile
35
network operations of the company began in 1992 in Delhi, and transformed as Bharti Tele
Venturesby the year 1995. Further with continuing partnership and acquisitions the service was
stretched to various other states.

With his vision of goals larger than life and brilliant strategic planning, Sunil Bharti Mittal brought
all his mobile telecom ventures under one umbrella, Airtel, in 2003. With the beginning of 1990’s
Mittal started India’s first cordless telephones and fax machines. in july 2004, airtel theme song
composed by AR rehman, became the most popular tune and airtel became the first operator to
provide caller ring back tone service or hello tunes.

During the year 2012, it announced a three year contract to alcatel-lucent to set up an internet
protocol access network (mobile backhaul), which would not only increase internet speed but will
also provide high quality browsing on the mobile handsets. It modernized its prepaid services in
the start of 2013 by setting up Ericsson’s Mobile Broadband Charging (MBC) solutions, this suite
also added the feature of having personalized profile-based data charging plans, along with that
this also allowed service of flexible multi service charging in geographical mode, making airtel
first ever operator to implement geographical redundancy on a large scale.
Company Profile

Type Public

Industry Telecommunications

Founded 7th July 1995

Founder Sunil Bharti Mittal

Headquarters Bharti crescent 1 Nelson mandela road New Delhi

Management people Sunil Bharti Mittal (Chairman)

Gopal Vittal (MD & CEO)

36
 Tao Yih Arthur Lang (Alternate director)

Pankaj Tewari (Company Secretary)

Revenue Rs.875,390 million (2020)

Net income Rs.4095 million (2019)

Parent Bharti Enterprise

Singtel
Website www.airtel.com

37
 Chapter 2:
Literature Reviews

The study of providing customer satisfaction is the most crucial step of the company with internet
access on the move such as wide network coverage and technology advanced stuff required by
almost everybody in today’s environment. Reliance jio is working according to Indian market; it
gives best quality services at much less price ((Paulaset, 2016) Which influence the satisfaction
level of customer’s are: Core services (like good coverage, good connectivity and network quality)
and call rate. Further results show that there is a significant relation between the brand name and
the preference of customers.

Hence, it has been recommended that telecom companies should focus on connectivity, call rate,
coverage and network quality. The customers do not prefer reliance network (Rodrigues,2015) .
Therefore, it will be a hard task to get a good customer base for the 4G network. Reliance Jio
Infocomm Limited announced the launch of its digital services with JIO in Mumbai on 1st
September 2016 with Jio Welcome Offer. The permission of TRAI has enabled users the access
to unlimited LTE data and national voice, video, messaging services, Jio applications and content,
free of cost up to 31 December 2016(Singh,2017).

Reliance Jio has entered into the market of telecom service providers with freebies and more data
to the customers. In the knowledge world, Jio’s the foray into the fast evolving market has made a
tremendous change in the competition, price and data availability. Jio is widely used by the techno-
savvy customers. (Jayaraman et al.)

Deoskar Aruna (2009), in her study “A study of mobile services from customer’s perspective”,
shows the spectacular revolution in information technology happened in India which boosted
telecom sector. The main objective is to study the impact of customer service on customer

38
satisfaction and to associate various factors like data coverage, billing facilities with it. The
findings gathered by testing data using SPSS states that all the sub parameters like billing service
and data coverage has a significant impact on the customer satisfaction influencing
customerperception. (Aruna, 2009)

Debarun Chakraborty (2013), in his research investigated the customer satisfaction & expectation
towards a telecommunication company in West Midnapore which is a district of West Bengal. A
descriptive study was conducted to achieve the objectives. In total 250 respondents filled a well-
structured questionnaire having a list of statements pertaining to products, services & facilities
provided by theservice provider. Results reveal that the dimensions which influence the
satisfaction level of customer’s are: Core services (like good coverage, good connectivity and
network quality) and call rate. Further results show that there is a significant relation between the
brand name and the preference of customers. Hence, it has been recommended that telecom
companies should focus on connectivity, call rate, coverageand network quality. (Chakraborty,
2013)

Vodafone Group is a mobile communications company that provides mobile voice, messaging,
data and fixed line service. Company Money Transfer Service M-PES enables people in emerging
markets to send and receive money through mobile phones. Vodafone India Limited, formerly
Vodafone Essar Limited, is the second largest mobile operator in India after the subscriber base,
after Airtel. It has its headquarters in Mumbai, Maharashtra. Its number is approximately 173
Million subscribers until September 2014 It provides both pre-paid and post-paid GSM cellular
phone coverage with great presence in metros.

According to a joint study conducted by Google India and A T Kearney (a global management
Consulting firm ), with over 155 million mobile Internet users at present, India will see a major
mobile explosion as the Internet user base will become more than double to 480 million by 2017.
It was estimated that in next three years, smart phone penetration will grow six times to touch 385
million people and the number of users who transact online will grow to 160 million. This also
implied that Lifestyle will be the largest online category by the year 2020. Testifying this study in
current scenario, data released by Telecom Regulatory Authority of India becomes significant.
According to its report published in October 2018, India had 512.26 million internet subscribers

39
till the end of June. This indicates that a significant growth of 3.71% from a total of 493.96 million
internet connections was recorded at the end of March 2018.

For economic risk mitigation Airtel serves wide range of customer base with
help ofwide portfolio in voice, data, digital services, value added
services, Airtel money (Telenet, 2014). Hedging mechanism is followed for
securing cash flows, interest rate risk (Annual17-18, 2019). The pricing strategy is
followed to maintain margins at time of inflation and market share
at time of market contraction (AirtelPresentation, 2013). Airtel has well-equipped
Network operations center to help monitor network activity and maintain proper
network uptime (Bushaus, 2018).

40
 Chapter 3:
RESEARCH METHODOLOGY
● Objectives
➔ To do a SWOT analysis of both the companies.
➔ To compare their marketing strategies between the two companies
➔ To analyze and compare the working ecosystem of both the companies.

To focus on the objectives of research, this project has included quantitative and
qualitative methods from secondary source. Data analysis and results are backed up by these
qualitative and quantitative data types. This study compares two major telecommuting companies
in India based on various factors like 4G availability, download speed experience, marketing
strategies etc.

● Research design
This is a descriptive type of study, collecting data from various secondary sources and
analyzing it to produce some eminent results.

● Secondary data
Secondary data has been collected from companies reports, journals, business magazines,
newspapers, newsletters and reviews by various business analysts. Other than that, some
of the data has also been abstracted from companies recent manuals, statistical analysis,
and selected documents.

● Advantages
➔ Understanding the marketing strategies between India’s top most telecom companies.
➔ Understanding the basic knowledge of their newly launched technologies creating an
influencing indian population and economy.
41
 ➔ To perceive indian consumers psychology regarding Reliance Jio and Bharti Airtel.
➔ It would also give us a broad understanding regarding preferences of Indian telecom
consumers and their loyalty towards their chosen brand.

Data analysis and Interpreation

● SWOT analysis

➔ STRENGTH
By referring to strengths, we try to look over a company's profit, support and influence in
front of its competitors. These advantages may include knowledge,capital etc.

➔ WEAKNESS
By this we refer to any firm’s ability limiting it to reaching its full potential. In business
particularly, it lands you in a place of competitive disadvantage like resource shortage or any
other process or technology in that matter. It is internal to the firm, like its location, reputation
etc.

➔ OPPORTUNITIES
These refers to factors favourable for a firm, giving them a competitive edge.

➔ THREAT
This points towards various elements and aspects which could tarnish and damage a firm’s
reputation and growth.

42
 SWOT analysis of Reliance Jio
❖ Strength
➢ Generous and sizable customer procurement planning.
➢ Booming customer base
➢ Rapid technology for improved customer involvement and understanding.
➢ Safe, reliable and durable advocacy of their parent company (Reliance industries)
➢ Strong brand administration and management along with regulations.
➢ Fast and voluminous network
➢ Diversified contributions under one name

❖ Weakness
➢ Financial value differences and strife.
➢ Late entrance into the market
➢ Activation problems
➢ Handing out freebies in abundance.

43
➢ Feeble and week data connection

❖ Opportunities
Currently reliance jio is eyeing at the 5G and 6G technology at economical prices.
➢ Upcoming dominating technology
➢ Escalation in various other countries.
➢ Highly competitive financial value planning
➢ Apps and 5G and 6G technologies.

❖ Threat
Some of the intimidating hazards for reliance Jio include-:
➢ Risk of damage to customers base
➢ Critique and negative notions
➢ Elimination of unpaid services
➢ Improper and unfair business attitude and marketing strategies and practice

44
❖ JioMart ecosystem

45
❖ Core strategy
46
Reliance jio has adopted an uncomplicated and elementary approach by giving a benefiting offer
to kirana store owners, like on payment of Rs.50 they get items of Rs.150. Many of these are as
following-:

● This also includes food items, where reliance jio is trying to its exclusive labels like Good Life
at economical values.
● Other brands included into jioMart are best farms,Masti oye, kaffe, enzo etc. it is also planning
to aggregate commodities from regional markets and distributors.
● The underlying planning of this strategy is to promote this plan amongst middle class families
by giving a perception of separation, and a process to alter purchasing nature.
● Booster less but more fast procurements by enticing discounts and coupons, but to keep
valuable goods safe.
● According to this approach, it will help to spread and develop its web in tier 2 and tier 3 cites.

❖ Marketing Strategies

47
● PRICE: one of the most alluring planning is regarding its pricing strategy. It entered the market
offering surprisingly plans for 4G at very meager prices, forcing its competitors to alter their
own pricing schemes. Although Jio has updated its recent tariff plans.
● PRODUCTS: Jio has been giving telecom products and ancillary high -speed internet services
and inviting offers.
● PLACE: the rapid expansion of Jio stores, is now in several cities. It not only jio products and
digital items, but due to widespread circulatory channels and holding the position of largest
supply chain in the country it now stands on a platform of incorporating a large number of
national and international personal labels.
● PROMOTION: with its dynamic and assertive approach towards marketing it has made one
of the highly recognized firms in the country. It has entered in its advertisements on all possible
platforms. From television, radio to instagram, facebook to using powers of the bollywood
celebrities to promote its ad campaign.

❖ BCG matrix

It is a tool, developed by Boston consulting group to understand and to judge the

potential and various business units under four divisions, STAR,QUESTION
MARK,CASH COW and DOG.
The BCG (Boston Consulting Group) Matrix is an easy-to-use tool for assessing different
business areas of the same conglomerate, considering their potential and relative position
to other business areas. As mentioned in this case study, the Jio needs to be evaluated as
one of the giant Reliance Giant's weapons compared to other weapons of the Conglomerate.
For example, Jio is now a star due to its high market share and growing Indian
telecommunications market. But it can also become a question mark due to access to the
plain in terms of market share or due to overall market sanitation.
However, there is the potential to become a cow if it stays stable for a long time in a strategy
that balances growth with overall market growth. Additionally, Jio is already showing signs
of maturing as a business unit, so this is the result of replacing other Reliance business
units with a question mark.

48
 As a long-term change for the dog, this is not a guaranteed result based on his already deep
relationship with the Indian market and his strong brand relationship with the Indian
consumer. So our estimate is that geographic will remain in the first column rather than the
second column in the BCG matrix mentioned above..

STAR QUESTION MARK

❏ Booming indian telecom sector ❏ Sanitation in overall market

❏ Strong comparative market share ❏ It is becoming palin in terms of market
share

CASH COW DOG

❏ Stability in long term plannings Highly unlikely due to its deep roots in the
❏ Balanced growth in overall market. indian market

❖ Reliance Jio PESTLE Analysis

➢ POLITICAL FACTORS:

working on the forefront as one of the leading telecom industries , reliance Jio have been
many times involved where its business has been guided by political setup. It is already
part of ‘make in india’ campaign launched by prime minister. Jio has been vigorously
involved in this campaign. On the other hand, Jio has opposed TRAI rule od decreasing
call ring to 25 seconds, reliance wanted that decision of fixed ringing time should be choice
of regulators. Since government at centre holds a strong position without any coalition can
be seen as a good factor for the company.

➢ ECONOMICAL FACTORS:

Jio entered the telecom market just three years back. But It is giving a tough competition
to existing companies like Airtel and Vodafone Idea. this has been due to its strategy of

49
 providing services at economical and meager prices, leading it to own 31% market shares.
Due to its low cost services, it has been easily expanding into rural markets.

➢ SOCIAL FACTORS:

with more than 300 million subscribers, jio aspires to “connect everyone. Connect
everywhere. Connect everything.”. Youth makes a huge share of the consumer base, and
to attract them jio offers services like jio news, jio music, jio tv jio cinema etc. due to this
diversification of the brand it is able to hold its customers. The My Jio app allows easy
recharge and data top ups which help them to avoid buying a regular plan for trite work.

➢ TECHNOLOGICAL FACTORS:

Reliance Jio became the first network service provider in India to integrate voice through
LTE technology. This technology has great potential in the future as it supports 5G and
6G, which means customers can access data at even higher speeds. Voice over LTE
technology also improves call quality when everyone (both the contact person and the
sender) has this technology on their phones.
Competitors Gio Airtel and Vodafone-Idea have also introduced Vo-LTE into their
networks. Reliance Jio also introduced a new service, JioFiber, a special series focusing on
ultra-fast internet delivery. Since Vodafone wants to rebuild its sports business through 5G,
Gion also needs to be aware of current market trends.

➢ LEGAL FACTORS:

It has been very questionable since the appearance of Reliance Jio in the
telecommunications industry and has collected complaints from its adversary. Airtel
initially stated in 2016 that Jio had been tested for 253 days. At that time, it had
approximately three million subscribers (appraiser). Airtel says that this was done to
engage a significant proportion of customers shortly before its launch.
In addition to the allegations, Reliance Jio did not receive any legal advice as there was no
such rule for the number of days of service checks. Airtel and Vodafone-Idea also
implicated Jio of using predatory practices to offer their services at exceptionally low rates.
Jio was recently rejected by Airtel and Vodafone-Idea when Jio was called. So far, Jio's
50
 confidence has overcome these obstacles. But, as Jio rattle the communications market, its
legal department should still be active.

➢ ENVIRONMENTAL FACTOR:

Reliance Jio has taken several steps to contribute to the social performance of the
company. Jio gets Rs 750 for CSR jobs. Reliance Jio Indore activities provide the police
with free internet service. Geography lasts longer. Steps have been taken to stabilize the
tower's network, which is detrimental to electromagnetic radiation.

51
SWOT analysis of bharti airtel
● Strength

52
 ➔ With more than 260 million subscribers, airtel is one of the biggest cellular provider in
indian telecom sector
➔ With more than 200 million subscribers it is one of the leading telecom operator brand
in the world
➔ Airtel along with VSNL is one of the indian operators to have international submarine
cables.
➔ It has a very high perceptibility among the masses.
➔ It has genius and resourceful advertising strategy.
➔ Countries like sri lanka, bangladesh, africa contributes a firm and compelling
subscribers hold.
➔ Airtel showrooms, shops,,kiosk and encouraging and providing sponsorship has further
improved its potentiality across the world.
➔ Airtel provides excellent value added services.

● Weakness

➔ Constricted market share due to

➔ It has been accused of user confidentiality

● Opportunities

➔ Airtel can penetrate augmenting cellular market

➔ Due to its ubiquity it can use new and economically sane technologies.
➔ It can experiment with vestal rural market.
➔ Value added services are emerging as upcoming future for telecommunication sector. By
concentrating on this, airtel can make it stand out in this highly ambitious market.
➔ Aiming at the forthcoming 5G technology, can give it a cutting edge

● Threats

➔ Upcoming new telecom ventures with low prices can intimidate the market share
➔ Satiety in the fundamental and elemental telephone services

53
 ➔ Mobile number portability can be used by the opponents to distract and drive away the
subscribers.
➔ Due to change in government protocols and actioning of the spectrum, it poses has a peril
to its cohesion and market life.

❖ Marketing strategy

● PRICE:

Airtel participates ferociously in highly competitive and ambitious battleground of

telecommunication sector. Regulation at the crown by Telecom Regulation Authority of India
(TRAI), ensuring fair prices. Airtel stands high here by proving pliable and economical plans
54
 to its customers. Purchasers can modify their plan and can affirm it according to their own
choices. To attract more customers, it is not only offering various combo offers but strategising
its broadband plans at economical prices.

● PRODUCT:

Airtel extends its wide array of services and products in the telecom sector. From mobile
services to telemedia services to other businesses like tower infrastructure and network
integration it is a focus attraction amongst the indian population.
Mobile services includes- prepaid services, postpaid services, value added services etc.
Telemedia services includes- dongles, 3G/4G routers, home internet service , broadband
services etc Digital TV services includes- digital setup box with high quality picture quality.

● PLACE:

Airtel has an expansive network spanning across 20 countries. This comprehensive network has
allowed it to encompass even the remotest areas.the far most brilliant strategy was to include
various local stores, roadside shops, retail stores, groceries shop etc in the marketing mix. Its
‘project leap”, launched in year 2015, aims to expand its coverage to more than 5 lakh villages
across India by spending 60 thousand crores over period of three years.

● PROMOTION:

Although it is a well known and one of the leading telecom brands, it still emphasizes on its
various advertising campaigns. It is taking advantage of all marketing and media platforms from
TV, print media to social media. It brought in some big bollywood celebrities to endorse its
numerous services including actors like shahrukh khan, a.r rehman, vidya balan etc. In
december 2015, it has announced sachin tendulkar as its brand ambassador. It is also targeting
youth using its social media presence and promoting its brand using famous taglines like, ‘jo
tera hai wo mera hai’ and ‘har ek friend zaroori hota hai’. Apart from that, it also sponsors
various sports team and organize events like Airtel delhi half marathon. It has also been seen
engaging in various social issue campaigns like Girl child awareness, education campaign etc.

❖ BCG Matrix
55
Stars:

It is a theory which helps us to assume products in companies' portfolios. There are two
aspects in which we can understand this thing. These are Market Growth and Market Share.
This proportion helps to understand companies' products into four groups. In this it helps
companies to look after their products by using this technique which will be more helpful for
them too.BCG favourable helps avoid frequent strategy mistakes. The framework assumes
that an increase in market share leads to an increase in cash production.

Cash Cows:

Throughout the industries concerned they have an increase in substantial share market. If we
discuss Airtel mobile services then we can say it as a star because it is having a share of
twenty three percent which is being up by nine percent of the total revenues.

Dogs:

The essential products of the market are increasing gradually but the capture of the market
share is substantial. The market remain sparse as of the low market growth of the
investment.It is the foundation of a business and saves money to make question marks for a
manager. They provide five percent per month cellular services and which is the
establishment or can be said has the heart of Airtel.

Products where the company has a very small share in the casually growing market. As
a result, their improvement to income is limited and can turn into a drawback for money. As
of money relevant to a business with limited capability . Therefore, the company should be
careful about expensive programs and try to get rid of these products. In the case of Bharti
Airtel, the fixed line services can be called a company dog.

❖ Airtel PESTLE Analysis

➢ POLITICAL FACTORS:

Airtel has been seen defenceless after introduction of Political policies. Government has
decreased the interconnect usage charges dreadfully, this has heavily impacted airtel due

56
 to its high subscriber base. Earlier Airtel used to get good revenue every time a call was
made by another network, due to this law it has left it wounded. Another lethal strike made
by the government is incredibly high spectrum auction prices. This has telecom companies
injured.

➢ ECONOMICAL FACTORS:

After surviving it's tough competition with Jio and Vodafone, airtel has been successful in
expanding its consumer base but there has been dramatic deterioration in its mean revenue
per user.
India, marching forward with its lighting speed economy will be opening doors to lots of
opportunities, this comes as a blessing for Airtel which has been one of the largest telecom
company with vast numbers of subscribers, can expand its user base. Since entry of Jio,
crucial mergers and profits have taken place leaving only 4 major operators. After
implementing numerous actions and controls, Airtel has been finally able to bring up its
ARPU to Rs. 129.

➢ SOCIAL FACTORS:

According to predictions of some valuable Economist, India by 2022 will be having more
that 830 million cell phone users, opening the gateways for major companies like Airtel to
join these new users with its network. Before the introduction of Jio, i.e in 2015, the main
revenue groped by the companies were only through call only as data prices were high.
After Jio’s entrance it has been a sudden flip. The demand for data increased suddenly and
became a major source of revenue. This change in consumer behaviour has come as an
exponential growth for airtel. As of today, India is the highest data consuming country.
Airtel is reaping its major wealth through its investment in the infrastructure.

➢ TECHNOLOGICAL FACTORS:

Bharti Airtel has played a role in various technologies to be the market leader in the
telecommunications sector. It opens an innovation lab in Bengaluru to strengthen the
Internet of Things, add virtual reality and artificial intelligence, and provide its customers
with digital solutions. It has launched a digital innovation project - “Project Next” where
it will invest 2,000 crores rupees over three years to bring a digital solution to market.
It also focuses on bringing 5G services to India. It is distributed to home services, digital
television services and Airtel companies. Because of increase craze of music amongst
customers it acquired wynk music.

57
➢ LEGAL FACTOR:

With the awareness of becoming a new oil, personal concerns have increased significantly.
Users' personal information is protected by corporate data centers and companies are often
said to sell user information to third parties who may abuse it. Airtel must assure its
customers that it will not sell your data to third parties without their consent.
The recently launched "Airtel Zero" market, where users can access free software, but data
paid for by suppliers.This provoked public outrage, denying its opposition to online
neutrality. According to Airtel, it is not possible to decide which applications to use and
which not to use. They say Airtel favors companies that slow down high-paying and low-
paying programs and sites. Airtel will cancel the project after such allegations.

➢ ENVIRONMENTAL FACTOR:

Airtel works hard to contribute to the environment. It projects energy efficiency in its
networks, devices and data centers. More and more renewable energy sources are growing
to meet their energy needs, rather than conventional energy. Airtel has installed six solar
power plants that can reduce emissions by 800 tonnes per year. It is also planned to share
the tower's infrastructure with the competitor's mobile network, as this reduces the need
for a separate tower and helps save energy.Recently, its staff began planting 1,800 trees in
Rwanda under the theme “I am green,” under which they wanted to plant at least 1,50,000
trees. Airtel is partnering with the Odisha government to provide flood warnings to
cyclones and all other natural disasters to 200,000 fishermen.

58
59
Statistical comparison between reliance Jio and
Airtel

❏ Reliance Jio statistical Analysis

60
 This is Key operating matrix of RJIL.
➢ Net subscriber addition at 17.5 million
➢ Churn retraces to 0.57% after a spike in 3QFY20 led by elimination of heavy voice users
➢ Per capita usage healthy at 11.3 GB and 771 mins per month; 20-25% increase in wireless
data traffic post lockdownReliance Jio financial Performance

61
➢ Strong customer traction and partial impact of recent tariff hike drives double-digit revenue
and EBITDA growth
➢ Operating leverage and improving traffic mix reflected in margins

➢ Strong customer traction and partial impact of recent tariff hike drives double-digit revenue
and EBITDA growth.
➢ Operating leverage and improving traffic mix reflected in margins
62
 11.3 GB data
Data/user/month
770 Mins
Combined for VoLTE voice
smartphone and
Jiophone users consumption/user
/month

63
 > 70%
Data Traffic Used for Video

428 Cr
GB/Month Data Traffic

~ 5 Hours
Daily Time spent/ Users

❏ Bharti Airtel statistical Analysis

64
➔ Based on the customer base there has been no significant changes.
➔ Average revenue per user has increased from Rs 123 in march-19 to Rs 154 in march -20.
➔ Revenue per Towers per month has shown substantial growth since last year.
➔ Mobile Service Revenue has also shown growth, this is most likely to track back to TRAI
new regulations.

65
➔ There has been an increase in the time spend on the network, this comes in as a
good news since reliance Jio entered the market.
➔ Customer base for 4G data has showed significant progress since march- 19
➔ Data usage per customer has also shown some promising progress.

➔ Financial Trends of Business Operations

66
➔

➔ Earnings before interest, taxes, depreciation and amortization (EBITDA) has significantly
increased since Dec-19
➔ Earnings before interest and taxes (EBIT) has taken a huge Fall
➔ Capital expenditures (CapEx) has been significantly increased. This points towards the cut
throat competition in the indian telecom industry

67
➔ There has been a slight nudge in the owned towers since march-19
➔ Leased towers have been stagnant over this period of one year
➔ There has been an increase of around 85% in the base stations.

From the above graph its very easy to interpret that based on 4G covering
experience, Jio and Airtel are two topmost leading telecom companies. Although
Jio seems to be way more ahead in this arena, with implementation of new policies
and plans Airtel might soon be able to catch up.

68
Since the birth of 4G, there has been a cutthroat competition around the globe and specially
in India, this is because India provides an extensive consumer base. Reliance Jio was the
first company to introduce 4G in the indian market and also at subsidized prices. Since
then, this race has took a steep turn and each and every company is providing 4G on their
network. Again Jio and Airtel seems to have just a slight gap between them.

Latency delay or latency lag refers to the time experienced by the users while connecting
through the 4G/3G network by joining across the operator. It is measured in milliseconds.
The less the latency delay the better the experience. Airtel has even promised this via its
advertisements that it has least latency lag. These accounts hold true. Although the
difference between Jio and Airtel is only 2 milliseconds , Airtel aced this race.

69
Upload speed experience signifies the average speed for each operator across their mobile
network. It comes as a surprise that India’s top two leading telecom operators have slower speed
as compared to their counterparts. This remains as a challenge for both Jio and Airtel

Voice over app experience involves the quality of voice calls over apps like whats app, skype,
facebook messenger etc. This seems pretty equalizing by all the companies. Voice over app
experience acts as a basic necessity for all the network operators. Compared between jio and airtel,
Airtel seems to be doing pretty well.

70
Download speed experience depicts everyday average speed a user experiences over the operator’s
network while downloading. Airtel claims in its advertisements that it has highest download speed,
which holds very true as we can see this in the graph. On the other hand, Jio has a mediocre speed as
compared to Airtel and other networks. This comes in as skepticism and a question mark for Reliance
Jio’s reputation of leading telecom firm.

This points towards mean user video experience over the operator’s network. It briefs about the
quality of video, average buffering time and etc. Airtel has been getting on its A game here. It is
doing very well, although followed immediately by vodafone with little gap. Jio is far away from
competing with airtel and has a very small space between it and its predecessor Idea. Jio has been

71
trying to achieve hard withs its media focus and marketing strategy but could be seen lacking behind
some of the basic approach.

As per the reports of TRAI published on 31st January 2020, Jio holds maximum number of
access service provider wise Market shares in terms of wireless subscribers. Airtel seems to be
falling behind a little and equalizing with Vodafone Idea. This gives Jio a lead in the market.
Airtel has to not only jump up over its existing obstacles but also have to apply strategic planning.

As per the reports of TRAI published on 31st january 2020, Bharti Airtel holds more than half of
the service provider-wise market share of broadband (wired+wireless) services alone. Reliance
Jio comes second in line, followed by vodafone.

72
 Chapter 5:
Findings and Conclusion
❖ Conclusion of Reliance Jio:
Reliance Jio has expanded itself humongously in a very short period of time since its launch. This
is attributed towards its big expenditure and financing and it still creates its assorted stores in
many cities of India. Not only that, but this evolving wave of development is considered in favour
of Indian Consumers, where Jio’s expanding its creative E-marketing planning,benefits,
maintenance and utility along with its business corporations.

“Every coin has two side”, this also applies to reliance on Jio. with its numerous positive outcomes,
it also has some negative ramifications. With its powerful determination to make its firm a golden
element in the market, Jio has to battle with some of the topnotch neophytes entering in the market
like-: Amazon, Alibaba-supported Bigbasket, and Tencent- supported Udaan as they have strong
grip.

❖ Conclusion of Bharti Airtel:

According to my finding of investigations i would like to interpret that airtel shows a wane speed
as compared to its competitors in terms of customer facility. 20-28 years of age group is seen to
be using mobile services at utmost amount. Cash cards have emerged to be favourite and well-
known amongst the consumers and there is no recharging problem.

Airtel leading in the indian telecom sector and enjoying the maximum numbers of subscribers has
to acutely search for loopholes in the current customer service department.
Airtel is also gaining momentum with commencement of “aissi azaadi aur kahan”, this has enabled
it to hold exceptionally well position in this pernicious market, as it attempts its best to figure out
needs of its key customers. Although it needs to advance and thrive in the field of communications.

73
References
https://etelco.info/indias-leading-telecom-reliance-jio-november-2019/
https://www.investindia.gov.in/sector/telecom
Press Release No Measurement_wireless_data_speed.pdf
About Bharti Airtel - Strategy, Financial Snapshot, Structure, Awards
https://s3-ap-southeast-1.amazonaws.com/bsy/iportal/images/Q1FY20-Performance-
Snapshot-Bharti-Airtel_A1C9B22006ADBF2130F499A3296493AB.pdf
Airtel - Statistics & Facts | Statista
Q1FY20-Performance-Snapshot-Bharti-
Airtel_A1C9B22006ADBF2130F499A3296493AB.pdf
Bharti-Airtel-Limited-Integrated-Report-Annual-Financial-Statements-2018-19.pdf
Published_Results_19052020.pdf

Comparative Study of Major Telecom Providers in India, (Mishra, Singh, Mittal,

ArchanaSoni), IOSR Journal, Volume 10, Issue 3.
Gombeski, W. 1998. Better Marketing through A Principles-Based Model’, Marketing
Health Services, 18(3)
Gronroos, C. 1991. The Marketing Strategy Continuum: Towards A Marketing Concept
for the 1990s’, Management Decision.
Day, G. and Montgomery, D. 1999. Charting New Direction for Marketing’, Journal of
Marketing, 63 (Special Issue)
Judd, V. 1987. Differentiate With the 5th P: People’, Industrial Marketing Management.
Kalavani, Bhanumathy.2006 Consumers attitude towards cell phone services.
http://www.emeraldinsight.com
Kotler, P. 1999. Kotler on Marketing: How to Create, Win and Dominate Markets’, New
York, Press Free.
Gummesson, E. 1991. Marketing—Orientation Revisited: The Critical Role of the Part-
Time Marketer’, European Journal of Marketing

74