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Development
Erandwana, Pune
Executive Summary
The focus of this project would be to conduct a market assessment exercise to gauge
and tap the full market potential of hotspot WiFi internet connectivity in India and
based on this develop a comprehensive and fail safe marketing plan for the launch of
“GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel -
Microsense.
World over the communication needs of individuals are drastically increasing. People
want internet connectivity wherever and whenever they move. Dipping prices of
Wireless devices and equipments has resulted in the growth of number of hotspots
with global hotspot growth projected at approximately 20% (CAGR). (Source: In-Stat,
BTSL Analysis)
According to a Gartner study report, the number of worldwide Hotspot users in 2006
was a whopping 30 mn! The total number of WiFi hotspots in the world by 2010,
according to In Stat/MDR is expected to touch 200,000!
The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.
However, the company feels that currently the growth in usage in limited primarily
due to stock-outs of scratch cards, limited validity of 24 hrs in most cases &
unavailability of roaming between Hotspots.
Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.
So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.
We conducted a SWOT analysis to form the basis for accurate design of the marketing
mix. Segmentation on the basis of lifestyle was done and 4 segments were identified
to be targeted. While our positioning would be that of a first mover or pioneer our key
differentiators would be roaming and continuous connectivity.
4 pakages of products have been decided based on the requirement of each segment
and their usage patterns. Pricing has been kept around the same as customers have
expected in the survey. Pricing has been done on MBs downloaded basis and on
minutes of usage basis. Detailed effort has been taken to take branding into account. A
new brand under the umbrella brand Airtel would be created namely Airtel E-
connect. It will have a logo similar to the umbrella brand logo.
The distribution would be handled by the same set of distributors Airtel currently
holds. The promotion plan has been decided in broad sense. Exact media plan etc
would be taken at the time of actual implementation. Some additional manpower
would have to be hired at the higher level I order to keep focus on the emerging
business. Detail service delivery process has been discussed and physical evidences
have been listed.
A detailed financial analysis has been carried out taking into account all costs and
other factors. The break even period arrives in the third year of operation. The venture
would require an initial investment in fixed assests of slightly over 3 Crores in
addition to utilize the existing set up.
The service is to be pilot tested in Bangalore and Mumbai and the launched in nine
other cities in India in the first phase. I the second phase we plan to move abroad also
thus the implementation is a two stage process spread over a period of two years.
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student of…………………… Programme of the university in this
institute for the year………………………..
As part of university curriculum he /she has completed a
study project titled…….
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The project is prepared by the student under the guidance
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Please note this project was done for the partial fulfillment of MBA
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Regards,
1 Executive Summary
AirTel comes from Bharti Cellular Limited - a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises. Bharti Enterprises has been at the forefront of
technology and has revolutionized telecommunications with its world class products
and services. Established in 1976, Bharti has been a pioneering force in the telecom
sector with many firsts and innovations to its credit.
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals
under its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of
India's finest companies, and its flagship brand 'Airtel', has over 18 million customers
across the length and breadth of India.
The services provided by Airtel include Airtel Prepaid, the Ready Cellular Card from
Airtel, Airtel Post-paid, Airtel Roaming which allows you to use your mobile phone
to make or receive calls from almost anywhere in India and abroad & Long Distance
the facility which allows you to make long distance calls in India and Overseas from
your cellular phone.
Microsense provides WAN and WiFi Solutions in India, through a network of six
offices located at Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Calcutta.
Microsense is focussed on providing integrated network infrastructure, consultancy
services and cutting edge solutions to the technology needs of ISPs and corporates.
Microsense provides WAN and WiFi Solutions in India. It offers expertise and
experience in WAN and internet related technologies and has implemented systems
for several large private and public corporates, educational and R&D institutions.
Its aim is to become the leading Wireless Mobile Data Infrastructure & service
provider in India, with a pan Indian footprint, world class back end / billing systems,
and a significant brand equity.
Microsense is focusing on three business models for larger market penetration: build,
operate and show (BOS) for hospitality sector and property owners, build, operate,
transfer (BOT) — for service providers and build, operate and own (BOO). The
service is provided through post-paid and pre-paid access accounts. Under the post
paid scheme users can choose from ‘pay as you browse’ and a monthly flat charge.
About The Project Which Was Undertaken
World over the communication needs of individuals are drastically increasing. People
want internet connectivity wherever and whenever they move. Dipping prices of
Wireless devices and equipments has resulted in the growth of number of hotspots
with global hotspot growth projected at approximately 20% (CAGR). (Source: In-
Stat, BTSL Analysis)
According to a Gartner study report, the number of worldwide Hotspot users in 2004
was a whopping 30 mn! The total number of WiFi hotspots in the world by 2008,
according to In Stat/MDR is expected to touch 200,000!
The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.
However, the company feels that currently the growth in usage in limited primarily
due to stock-outs of scratch cards, limited validity of 24 hrs in most cases &
unavailability of roaming between Hotspots.
Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. They are introducing roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.
So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.
Objective & Scope of the Project
The focus of this project was to conduct a market assessment exercise to gauge and
tap the full market potential of hotspot WiFi internet connectivity in India and based
on this develop a comprehensive and fail safe marketing plan for the launch of
“GSM-WiFi Hotspot Internet Connectivity with e-top up” by the JV Airtel -
Microsense.
While the initial conceptualization had been formulated by the company itself, my
scope of work & the objective of my project was:
To develop the complete marketing mix for the new e-top up service.
Environment Assessment
The Changing Indian Urban Lifestyle
Digital is the new ‘symbol’ of emerging lifestyles among urban Indian net users.
Digital is increasingly dominating net users’ lifestyle choices.
Digital friendly features top their gadget buying agendas.
Netizens are fairly ‘integrated’ Indians in their media habits.
More of them prefer to ‘invest’ rather than to ‘save’.
They associate success very highly with ‘monetary’ success, but essentially look
up to Indians as their role models.
Lifestyle oriented consumers do not buy products and brands they buy lifestyles.
If that is the scenario, then what are the lifestyles that regular net users are seeking or
buying? And how has the Internet impacted and influenced their lifestyle and
consumption preferences?
For urban Indian net users, the digital age is slowly but surely dawning. They are
using digital means of entertainment more and aspire to upgrade to a lifestyle that is
digitally driven.
These and other key insights have emerged out of one of the largest online surveys
conducted by JuxtConsult in August 2008 among the Internet users in India. The
survey sampled more than 30,000 users with the aim to unravel the identity of the net
user along with his lifestyle choices. To estimate the penetration of Internet among
urban Indians a telephonic survey spread across ten cities with over 3,000 participants
was also conducted.
Digital is increasingly dominating net users’ choice of passing time at home. Net
surfing is the most preferred pastime at home already for one in every five net users. It
is the third most popular pastime at home among them at 21 per cent and not far
behind of the top two choices - watching television and listening to music. The three
digital forms of entertainment together are dominating home lives. Social ‘interaction’
has to fit within this way of life, or else it gets left out.
Gadget Consumers
The digital wave is also reflected in the kind of gadgets ‘netsumers’ (consumers with
access to the net) want to buy to enliven their lifestyles. Camera equipped mobile
phones; computers, digital cameras, DVD and MP3 audio systems, home theatres
systems, fully automatic washing machines, microwaves and air conditioners top their
buying agendas. And these buying preferences are not just exclusive to users based in
metro cities but are equally aspired for in the smaller cities. It seems that the
‘integrated technology’ features have become the new ‘symbols’ of the emerging
lifestyle aspirations of netsumers.
Money Symbol of Success
Netsumers associate success very highly with ‘monetary’ success and their top role
models are the rich and famous. Amitabh Bachchan, Sachin Tendulkar, Shah Rukh
Khan rub shoulders with Dhirubhai Ambani, L.N.Mittal and Narayana Murthy among
the top 10 role models of success for net users. Only president APJ Abdul Kalam
stands out for his success without any ‘money’ factor involved in the top ten.
The web also serves as the favorite medium to stay in touch with the world for net
users. Internet is also the preferred way to keep in touch with news for 42% net users.
Television follows at number two with 32% net users picking it, followed thereafter
by newspapers. Magazines, mobiles or radio are still fairly insignificant means for
staying in tune with what is happening around them.
Netsumers are willing to invest in upgraded lifestyle products. They do not mind
shelling out for better quality buys. In fact, two out of every three in the net tribe is
willing to pay ‘mid or upward’ price for their desired product type and value added
features. Be it FMCG or lifestyle products, netsumers are enthusiastic about adopting
a premium way of life.
35% net users display interest in buying a mid size or premium car which may
carry a price tag of over 4 lakh.
Diamonds are best friends for 41% of the web shoppers and 30% of them are loyal
to gold jewellery.
A mobile cum palmtop is likely preference of 20% users.
Conclusion
India continues to be one of the fastest growing major telecom markets in the world.
Sweeping reforms introduced by successive Indian governments over the last decade
have dramatically changed the nature of telecommunications in the country. The
mobile sector has grown more than tenfold from 2001 to around 60 million
subscribers by mid-2005. Whilst GSM technology still dominates, CDMA has quickly
grabbed 23% of this market. The mobile industry should continue to boom. Fixed-
lines, although not as spectacular as mobiles, is growing solidly. This report presents
the key measures of this dynamic market and takes a general look at the development
and direction of the market.
Despite the considerable popular interest in Internet in India, the ISP market has been
in disarray. According to the telecom regulator, there were around 180 operational
ISPs in the country, after a period of market rationalisation. Despite the large number
of providers, 10% of the ISPs have 90% of the subscribers. The state-owned – BSNL
and MTNL – have grown rapidly to hold first and second place in terms of
subscribers. The growing popularity of cybercafes has been playing a big role in
fuelling Internet development in India. This report looks at the ISPs and other aspects
of India’s Internet market. There is also some information on Internet content and e-
services.
India appears to have embraced the Internet with a degree of ambivalence. There is
tremendous enthusiasm amongst the dial-up users and an estimated 60% of users
regularly access the Internet via the country’s more than 10,0000 cybercafes. But
when it comes to high-speed broadband access, there is reluctance, especially within
the corporate sector, and the take-up rate has been slow. By early 2007 there were
about 70,000,00 broadband subscribers – a penetration of less 0.1%. This report looks
at the stage the development of broadband Internet has reached in India. Some
information is also provided on data services available in the country.
Broadband policy and other initiatives by the IT and Telecom Ministry encourage
increased adoption. A monthly broadband subscription costs as little as 199 rupees
(US $4.50). A second factor is the IT Telecom Ministry initiative to make computers
available for purchase under 10,000 rupees (US $226). In addition to working with
hardware manufacturers to remove the financial barrier for households in India, the
organization continues to push development of language fonts to remove language
and localization of content issues.
Today, WiFi enabled devices are enabling users to connect to their office networks,
browse the web, download music or stream live news feeds from convenient
locations, such as hotels, conference centres, airports and bars all around the world.
We see virtually limitless applications for WiFi technology. Users are already making
voice over WiFi calls through their laptops and sending photos from WiFi enabled
cameras. Even WiFi phones and games machines will become readily available in the
not too distant future.
As well as the productivity benefits WiFi affords you and your mobile workforce
while out and about, it can also enable you to add new staff members to your office
network very easily without the need to install complicated cabling, hubs and routers.
Other valuable applications of WiFi can ensure your customers; suppliers and
contractors remain productive while on your premises, without endangering the
security of your corporate network.
How is it done?
Wi-Fi is quickly gaining in popularity with access points across the United States
increasing by approximately 100% in 2003. Wi-Fi refers to a set of wireless
networking technologies more specifically referred to as 802.11a 802.11b and
802.11g. These standards are universally in use around the globe, and allow users that
have a Wi-Fi capable device, like a laptop or PDA, to connect anywhere there is a Wi-
Fi access point that is available. The three standards that are referred to signify the
speed of the connection they are capable of producing. 802.11b (which transmits at 11
Megabits per Second) is the most common, although it is quickly getting replaced by
the faster Wi-Fi standards. Both 802.11a and 802.11g are capable of 54 MBPS, with
802.11a adding additional capabilities. Across the board, all of these Wi-Fi standards
are fast enough to generally allow a broadband connection. Wi-Fi is an emerging
technology that will likely be as common as electrical outlets and phone lines within a
few years. Wi-Fi adds tremendous levels of convenience and increased productivity
for workers whose offices are equipped with Wi-Fi, as well as travelers that can
increasingly access Wi-Fi in airports, coffee shops, and hotels around the world.
According to a Gartner
study report, the number of
worldwide Hotspot users in
2004 was a whopping 30
mn! The total number of
WiFi hotspots in the world
by 2008, according to In
Stat/MDR is expected to
touch 200,000!
The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all bound to boost this figure upwards.
However, the currently the growth in usage in limited primarily due to stock-outs of
scratch cards, limited validity of 24 hrs in most
cases & unavailability of roaming between
Hotspots.
What are the Key Market Drivers?
High Sale of Laptops: Sale of laptops has gone up many-folds. The average price of a
notebook stood at Rs 35,000 last year and the dip continues, now even faster. This is
expected to rise by 119% per annum in India.
High Hotspot Penetration: A greater number of telecom players offer better services
at lower price points. Companies like Tata, Microsense, BSNL etc. to set up more than
20,00,00 public hotspots by Jan 2010.
Reduced Tariffs: The Tariffs have reduced by more 50% in last 12 months.
Lower Installation Costs: Wireless associated equipment, like Wi-Fi cards, and Wi-Fi
access points, are now much cheaper. The set-up costs of a Wi-Fi Hotspot has gone
down by a considerable 68% in last 18 months. It is further expected to fall by another
25% in coming 12 months.
Multiple usage devices: Laptops are not just the only device that can get connected to
Wi-Fi networks. PDAs & many other devices too can enjoy this mobility. Fully loaded
cellular phones are coming cheaper too!
Relaxed Government Regulations: Setting up a Wi-Fi hotspot doesn’t attract any kind
of legal restrictions or fees. The license exempt has brought the prices down
dramatically.
Lack of Awareness: The awareness about the facility and usage is not made clear.
Locating a hotspot is also a hindrance. Communication needs to be more strong and
visibility should be high.
Security: The security if data transmission is still under question but with 802.11g the
solutions seems around the corner.
Scratch card stock outs: The non-availability of scratch cards to access hotspots is
highly prevalent, leading to lower usage and take-off.
Section – III
Once the secondary research was done and an environment assessment conducted, a
detailed primary research by way of market survey was undertaken in order to obtain
the required data to enable us to undertake a market assessment exercise.
The survey was conducted in two parts. While the first part included interviewing the
hotspot owners/ mangers, the second part included interviewing the end consumers of
WiFi internet hotspot connectivity.
Type of Research: The research was mainly quantitative in nature since it was
required by us to make a near assessment of the true market potential for WiFi
Connectivity. However, it was also ensured that a fair amount of qualitative probing
was also done during the course of the interviews to understand the exact profile of
the end consumers.
Sample Size: It was decided to keep the sample size large enough to ensure near
accurate findings. The sample size decided for consumer’s survey was 250. For this
purpose, 10 hotspot locations were selected across Mumbai & 25 respondents each
were interviewed at these points. Also the hotspot location owners/ managers were
also interviewed simultaneously.
About the Respondent: The respondents would largely comprise of people visiting
Hotspots like café’s and restaurants, Airports, convention centres and business
centres, shopping malls, food plazas, retail outlets and other such public places. These
would be categorized on the basis of age, gender and occupations.
The list of Hotspots visited in order to interview WiFi consumers, has been annexed
along with sample questionnaires for both consumer’s as well as retailer’s surveys.
From the adjacent table it can be seen that the Device Owned/ Used Nos.
majority of the WiFi enabled device users use
Laptops. This is true because the other devices Laptop 200
have not yet fully entered the Indian market. Media player 5
Also notebook PC sales are increasing. Digi cam 12
PDA 18
WiFi phone 25
The bar graph clearly shows that equally large number of people prefer café and hotel
lounge. It was observed that while the IT professionals and tech savvy youth, who are
primarily high
preferred locations for WiFi net access
frequency but low
duration
consumers,
No. of respondents
preferred café’s
150 over other options,
130
90
the business
80 75
55 executives and
travellers, who are
Convention
high frequency –
College
lounge
airport
Café
other
Hotel
centre
high duration
consumers, prefer
hotel and airport
lounges more over
other options.
The Time Distribution for Usage of WiFi across the Week by the Consumers:
It is evident that
Re a sons for us ing ne t at a Hots pot
people use the WiFi
1 5% for varied reasons.
28% However the majority
1 3%
of people use it for
checking their business
mails which are urgent
8%
12% and important. (28%).
6%
18 % These are the business
leis ure s urf ing pers onal mails c hat dow nloads executives and
inf ormation ac c es s of f ic e s erv erb us ines s mails travellers who are
incidentally also the
heavy consumers. It
was observed that
while the IT professionals and tech savvy youth used WiFi more for leisure surfing,
checking personal mails, downloads, chatting and seeking information to certain
extent, the business travellers and executives mainly used it to check business mails,
seek information or to access their company server!
Also if we add up the negative responses the total comes to more than 50% while if
we add up only the positive responses the total comes to only about 20 %.
What Are The Key Areas of Concern for the Consumers?
212 192
188
123 98
76 56
47 39
Limited coupon
Poor location of
Unavailability of
No roaming
disconnections
High prices of
Poor download
concerns
No info of
Security
location
services
Frequent
facility
hotspots
coupons
speed
validity
It can easily observed from the bar chart above that the three main causes of customer
dissatisfaction are unavailability of coupons, limited validity and lack of roaming
facility, a fact which was pointed out by our secondary research as well and which has
got confirmed now through consumer survey!
counsumers likeability of our new concept 58% respondents have liked the
new roaming concept in WiFi
somewhat
very much not at all no connectivity through mobile top
6%
22% 12%
up. The mean rating achieved
neutral
was 3.56 which is close to
somewhat 24% ‘somewhat like’ response.
yes
36%
Hence we can infer that most
consumers have liked the
concept of our new service.
22% of the respondents are will you switch to airtel for this service
29%
Out of the 55% respondents who % incre ase in consum ption expected
said their consumption would 54
increase after roaming is made
no of respondents
51%
> 250
Hence we can safely assume
daily average of visitors at a
hotspot to be around 175.
48% respondents have suggested %of visitors who use WiFi at the hotspot
Hence, average usage per month per person = 120 – 180 mins
= 2 – 3 hrs
Now,
Thus, average no. of users per hotspot per annum = 11000 – 15000
Thus,
SWOT Analysis
Based on our internal analysis we have identified the following strengths and
weaknesses, whereas based upon the external environmental assessment and the
primary research leading to the market assessment, we have identified the following
opportunities and threats.
Strengths Weaknesses
Opportunities Threats
The high sale of WiFi enabled devices, drop in tariffs, increased customer
expectations of a world class experience, fast paced businesses spread across the
country & increased awareness are all reasons for this boom.
However, as learned from the market research exercise, currently the growth in usage
is limited primarily due to stock-outs of scratch cards, limited validity of 24 hrs in
most cases & unavailability of roaming between Hotspots.
Hence Airtel, which supported the Telecom infrastructure requirements for Hotspot
connectivity and Microsense, which is a currently existing Wireless Internet Service
Provider (WISP) in the country have joined hands to eliminate the key market growth
inhibitors. We plan to introduce roaming facility in WiFi Hotspot connectivity by
eliminating the need for scratch cards and replacing them with e- top up through a
common mobile phone device. The new service is to be known as “GSM-WiFi
Hotspot Internet Connectivity with e-top up”.
So now while the prepaid customers of Airtel can directly access the Internet
connection at a Hotspot with the amount for usage being directly deducted from his
available balance, a post-paid/ billing account holder can get the amount for usage
directly added to his monthly mobile phone bill, thereby ensuring seamless
connectivity across the country to all users.
How It Shall Be Done?
In order to facilitate the delivery of such a service Airtel, which supported the telecom
infrastructure requirements for Hotspot connectivity and Microsense, which is a
currently existing Wireless Internet Service Provider (WISP) in the country have
joined hands. The JV is an excellent example of growth through collaboration.
Current Business Structure Involving Distributor and Multi Level Money Exchange
With the JV in place the distributors would get eliminated thereby reducing costs
which can be passed on to the consumers. The customer pays directly to Airtel and not
the hotspot, part of this is shared with Microsense and eventually the hotspot. Hence,
eliminating the need for scratch cards and the problems associated with them.
Segmentation – Targeting – Positioning - Differentiation
The marketing of WiFi GSM service can be classified as a Niche Marketing exercise
because while the larger category is internet connectivity, with in this category we
have a niche market for WiFi Hotspot connectivity.
Segmentation:
We have segmented the total market into four segments based on lifestyles as follows:
IT Business
profe sssionals traveller
Individual Customers: Young IT professionals and Tech Savvy Youth, who are the
typical urban upwardly mobile persons. These usually use WiFi at the Café. They are
the volume segment with more no. of small sessions and use internet largely for
leisure surfing, emails & chatting as found from the survey!
We plan to tap the whole market i.e. both these segments with the same product/
service. Hence we are following product specialization targeting method and want to
build a strong reputation in this service category.
Positioning:
Differentiation:
Since we are pioneering in this technology we don’t have any direct competition and
hence whatever we do would be obviously different. However, we would also want to
be different from the normal WISPs on the following points:
Roaming facility!
Unlimited validity!
Ease of payment!
Lower prices!
The 7P Marketing Mix for Our Service
P1 – The Product:
Product Line: We have categorized the customers into two segments, viz. Individual
and Corporate. Accordingly we have the following products for them to suit their
convenience.
E- Connect Starter Pack: Allows one to have a trial before subscribing to the
service. It has 200 MB capacity and is valid for a period of 31 days. Both
individual as well as corporate customers are offered this pack.
Corporate clients are not offered Infinity Download plans owing to our
findings about their usage patterns from the primary research.
Branding:
Brand Name: We would brand our new service as “Airtel E – Connect” &
promote it as the all new WiFi Connectivity with roaming by Airtel”
For the brand to be successful, we must build enduring relationships with its
different audiences. Integral to this relationship would be the visual image of
the brand the consumer carries in his/her mind.
We would strive to harp upon the well established Airtel Brand over the years
to the fullest. This would be helpful to gain quick acceptance with the
prospects.
The Airtel brand image created through the consistent application of a
carefully developed visual identity would help Airtel E - Connect distinguish
itself in a cluttered market. Airtel's visual identity would help create instant
brand recall and strengthen the relationships with our audiences.
The Airtel logo is a strong, contemporary and confident symbol for a brand
that is always ahead of the rest. It is a specially drawn word mark. We would
use a similar logo for easy identification and brand recall.
Packaging:
We have taken special care to package our product to suite the general requirements
of the targeted customer segment. Accordingly, the packages are designed for both
individual and corporate customers. Separate names have been given to each package,
even for the two variants with in the individual customer offerings. Also a trial pack
by the name clearly suggesting it has been designed.
P2– The Pricing:
This is not a highly price sensitive service since it’s a niche service provided by
very few service providers. Since our service is in the introduction stage, we
would want to gather as much market share possible that too at the earliest. Hence
coupled with incessant promotional campaign, we would maintain the price
initially at par with the market expectations so as to rapidly penetrate the market.
Then we would slowly increase our prices to cover our costs and finally start
charging a premium once we have achieved a substantial market share.
From the survey two key findings were received. Firstly the most comfortable
price range was Rs 90 – 100 per hour of usage. Owing to our lower distribution
cost we can initially provide the service @ Rs 90 / Hr of usage time. Secondly, the
ratio of weekend usage to weekday usage is 70:30. Hence, we shall provide
discounted service during weekends in order to provide incentive to users of other
service providers to subscribe to our service.
• E- Connect Starter Pack: This would be priced at Rs. 99/- for 1 GB capacity
or 31 days usage, which ever exhausts earlier. The price would remain same
for individual as well as corporate customers.
• Corp Connect Infinity Surf: Rs. 1.2 per minute of usage + Initial
subscription charges of Rs 500 + Zero security deposit!!
Mode of Payment: While prepaid mobile customer need not personally pay
anything as the amount would directly get deducted from their balance, for the
Post-paid account holders payment can be done either through cheque, cash along
with monthly bill or alternately by credit card online at our website using personal
ID and password provided to the customers for this purpose.
In this case the customer need not each time visit a dealer/ distributor for refilling his
balance, since the same can be done through e top up using a mobile phone having
Airtel connection. However, for the first time in order to subscribe to the service a
customer has to visit an Airtel World which is the Airtel Dealer/Distributor shop
present in large numbers across the various cities in India.
The following is a map showing the number of Airtel Worlds, Authorized distributors
etc in each of the cities where this service would be launched in due course of time.
Also, in order to facilitate the service provision to travellers, the subscription can also
be done at any of the 500 hotspots to be opened up in these cities.
The service would be available more than 500 hotspots in 11 cities by Dec 2007!
Currently he service would be available at around 50 hotspots in Mumbai and
Bangalore.
P4– The Promotion:
Introductory discount of 10% for all new subscribers for first three months.
Existing customers of Airtel as well as Microsense get 10% discount
automatically for a year to maintain loyalty.
Free Airtel SIM cards and waiver of security deposit to users of other mobile
service providers who subscribe to E connect and have to switch to Airtel service.
Maintain as much as possible the same last 6 digits for ease of conversion.
Free starter packs given complimentary to corporates and influential individuals.
Conducting frequent online polls and contests.
A baseline with some punch: “Always Stay Connected …”
SMS campaign to communicate with all the existing Airtel Customers.
Informative and eye catching hoardings outside airports and railway stations.
Point of purchase display material at each Airtel World.
Bright and unique design pointers and sign boards at Hotspots.
Free address booklet of all the member Hotspots across the country.
Dedicated hotline customer service desk to handle queries, trouble shoot problems
regarding login etc., also to provide contact details of hotspots in any area.
A dedicated website – www.airteleconnect.com providing detail information.
Cross – promotion by way of distribution of information booklet regarding our
service, along with WiFi enabled device vendors.
Print ads in local dailies, business papers and magazines, IT journals an dyouth
magazines.
The people who finally interact with the customers in our case are the persons at the
hotspot during service delivery and the dealer’s personnel during subscription, bill
payment, complaints registration etc. however, care has to be taken to avoid any
unpleasant incident during any moment of truth whereby the customer gets a chance
to form an opinion about our service which may not be fully reflective of our
organizations attitude towards customer satisfaction.
Hence, no ground or field staff is required. However, in order to thrust focus on the
capturing of full market potential at the earliest, we would have to hire a dedicated
Marketing Manager & operations manager. Also we would need one technical leader
and a billing and settlement manager. Apart from this we would need one sales person
at each of the cities regional office in order to push sales through the distributor
network.
These are very crucial as these give the feel of tangibility to the otherwise intangible
service. In our case we can harp upon the following physical evidences:
Section VI
Plan of Implementation
Plan for Implementation
Phase I:
In this phase we shall launch the service for Local Mobile Subscribers & National
Roaming Subscribers. This would log for about 2 years before which we are sure of
moving on to the next phase of launch.
Initially test marketing would be done in two cities simultaneously viz. Mumbai &
Bangalore. Mumbai because it is the financial hub of the country and Bangalore
because it is the IT hub of the country!
Upon successful results, we would immediately roll out close to 300 Hotspots in
another 9 cities viz. Pune, Kolkatta, Nagpur, Indore, Gurgaon, Delhi, Ahmedabad,
Hyderabad, and Chennai.
Phase II:
In this phase we plan to venture into foreign markets so as to also provide the service
to our International Roaming Subscribers.
Section VII
List of References
List of Websites Visited
1. www.microsense.com
2. www.wifi.com
3. www.getbestinfo.com
4. www.howstuffworks.com
5. www.roamingwire.com
6. www.bharti.com
7. www.contentsutra.net
8. www.mindbranch.net
9. www.iamai.org
Articles Referred To
1. Strategic choices for newly opened market – HBR review sept –oct.
Annexure
Annexure I
4. What kind of hotspots do you preferably access WiFi internet connection at?
Neighbourhood cafe 1 Hotel lounge 2
Airport Lounge 3 Convention centre 4
College/ Office 5 Any other 6
8. What is the approx. average duration of your sessions on the net at the hotspot?
< 15 mins 1 15 – 30 mins 2
30 – 45 mins 3 45 – 60 mins 4
60 – 120 mins 5 > 120 mins 6
9. Which is your most preferred/ used WiFi Internet Service Provider (WISP)?
Anora Tech – Boingo 1 Reliance 2
Microsense 3 BSNL 4
Sify Wi-Zone 5 Any Other 6
10. How satisfied or dissatisfied are you with the service provided by your WISP?
V Dissatisfied Dissatisfied Can’t say Satisfied V Satisfied
1 2 3 4 5
11. What are the key issues or complaints you have encountered with the service?
Poor location of hotspots 1 No info of location 2
High prices of services 3 Unavailability of coupons 4
Limited coupon validity 5 No roaming facility 6
Poor download speed 7 Frequent disconnections 8
Security concerns 9 Any other 10
(Now Introduce Our Concept to the Respondent)
16. Do you feel your usage of WiFi would increase with availability of such a service?
Not at all I don’t think so Can’t say I think so Def it will
1 2 3 4 5
Thank you very much for your time and responses Sir/ Madam!
Annexure II
Retailer’s Survey Questionnaire (sample)
Good Morning/ Afternoon/ Evening Sir/ Madam,
We are conducting a survey to understand the requirements of WiFi internet connection
Hotspots. Can I please take some precious minutes of your valuable time?”
Section – I: Consumer Profile and Consumption Patterns
1. Which WISP provides service at this Hotspot (if any)?
Anora Tech – Boingo 1 Reliance 2
Microsense 3 BSNL 4
Sify Wi-Zone 5 None Term
2. How many visitors do you approx. receive on an average at this hotspot per day?
< 50 1 50 – 100 2
100 – 150 3 150 – 200 4
200 – 250 5 > 250 6
3. What is the % of visitors who use WiFi connection on an average per day?
< 5% 1 5 – 10 % 2
10 – 15 % 3 15 – 20 % 4
20 – 25 % 5 > 25% 6
4. What are their regular/ key complaints?
Poor location of hotspots 1 No info of location 2
High prices of services 3 Unavailability of coupons 4
Limited coupon validity 5 No roaming facility 6
Poor download speed 7 Frequent disconnections 8
Security concerns 9 Any other 10
(Now Introduce Our Concept to the Respondent)
Section – II: The Future Consumption Speculation
5. Do you think such a service if offered by you, would increase business for you?
Not at all Somewhat No Neutral Somewhat Yes Very Much
1 2 3 4 5
6. Would you be comfortable switching over to Airtel - Microsense?
No Need Not at all I don’t think Can’t say I think so Abs Yes
0 1 2 3 4 5
7. Do you feel your usage of WiFi would increase with availability of such a service?
Not at all I don’t think so Can’t say I think so Def it will
1 2 3 4 5
Thank you very much for your time and responses Sir/ Madam!
Annexure III: