Marketing Strategies of Airtel & Its impact on Customers

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Index
Introduction to Indian Telecom Industry Introduction to Bharti Airtel Marketing Strategies Porters 5 forces analysis SWOT Analysis Research & Findings Conclusion & Recommendations
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INTRODUCTION

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Evolution of Telecom In India

Private players were allowed in Value Added Services
Independent regulator, TRAI, was established BSNL was established by DoT ILD services was opened to competition Go-ahead to the CDMA technology 1999 1997 2000 2002 Internet telephony initiated Reduction of licence fees Intra-circle merger guidelines were established Attempted to Number portability was proposed (pending) Number portability approved

Calling Party Pays (CPP) was implemented

boost Rural telephony

2005 2007 2006 Broadband policy 2004 was formulated targeting 20 million subscribers by 2010 2009

INDIA

1994
1992

2003

2004

National Telecom Policy (NTP) was formulated

Unified Access Licensing (UASL) regime was introduced

Reference Interconnect order was issued

NTP-99 led to migration from highcost fixed license fee to low-cost revenue sharing regime

FDI limit was increased from 49 to 74 percent

Decision on 3G services (awaited)

Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. ILD International Long Distance

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Technologies
CDMA Already there are big players in this segment Reliance , Tata 3G Value added services potential still to be tapped fully 2G/3G GSM Currently commands 70% of mobile subscribers in India
2G/3G

VoIP

Technology

CDMA

WIMAX

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Bharti Airtel
Initially as Bharti Tele-Ventures in 1995 Later changed to Bharti Airtel limited in 2006 Bharti Airtel has nearly 230.8 million total customers (171.8 million in India) Broadband & telephone services in 20 countries . Bharti Airtel third largest player in the world Has presence in all 23 circles of India Headed by Mr. Sunil Bharti Mittal

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PORTERS 5 FORCES

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Porters Generic Strategy

Narrow Market Scope

Broad Market Scope

Differential Strategy

Cost Leadership

Uniqueness Competency
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Low Cost Competency

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Porters 5 forces
Customer Bargaining Power

Threat of New Entrants

Threat from Competition

Threat of Substitutes

Supplier Bargaining Power

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1. Threat from Competition

Wireless Market Top 4 garnering 75% market share

HIGH

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2. Customer Bargaining Power

Lack of differentiation among Service Providers Cut throat Competition Low Switching Costs Attractive Schemes for new connection Availability of all operators everywhere Difficulty to differentiate Brand Number Portability will have Ve Impact Businesses & Consumers
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HIGH

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3. Suppliers Bargaining Power

LOW

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4. Threat of Substitutes
Landline

CDMA
World Phone

DIMINISHING MARKET

HIGH

Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger
BROADBAND SERVICES

e-Mail & Social Networking Websites

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5. Threat of New Entrants

Low Because Huge License Fees to be paid upfront & High gestation period Entry of MVNOs & WiMAX operators Spectrum Availability & Regulatory Issues Previously Low, Now High Infrastructure Setup Cost - High Rapidly changing technology

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5. Threat of New Entrants

High Because Entry through 3G New Entrants are ready to enter with Huge Capital Considering the attractiveness of the market Increase Of FDI to 76% bringing competiton from Foreign players New Entrants from Non telecom companies with the ease of Outsourcing
Previously Low, Now High
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MARKETING

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TARGETING
Elite Up market professionals Entrepreneur with business plans Low income mass category Youth Women and senior citizens by post paid connection
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POSITIONING
Power to keep in touch Touch tomorrow Live every moment Express yourself

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THE FIRST MOVER ADVANTAGE

Electronic recharge Hello tunes Airtel Live! Portfolio manager Song catcher Easy music Black berry handsets M-check
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First Mover Advantage

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RURAL STRATEGIES
Airtel follows Match-box strategy The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2012

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Marketing TOOLS
Advertisements Sales promotion Publicity and events

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The Ad diagnostics score helps to understand how far the Ad has been able to break the clutter

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SWOT

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SWOT
Strengths
Largest Telecom Player in India ~80Mn, 22.6% Market Leader Strong Leadership Sunil Bharti Mittal Recognized Globally Pan India Presence Strong Financials Focus on Core Activities Outsource the rest Strong Brand Image Marketing Team Innovative
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Weakness
Outsourcing of Core Systems Less Product Clarity High Call Rates

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SWOT
Opportunities Bharti Infratel Cutting Down cost in Rural area Match Box Strategy Scale of Penetration Current Tele-Density 46.7% is still low among developing countries Low Broadband Penetration, Rural Telephoney
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Threats India centric Major revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth New Players coming in India Uncertain Economic conditions

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RESEARCH & FINDINGS

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Research Objective
Study the brand positioning and perception of Airtel. Comparative analysis with other company. Strategies adopted for it. Factors influencing the customer to stick with their network. Features needed every customer. Efficiency in providing after sales services. Factors in increasing sales.

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Analysis & Interpretation

CONNECTIONS USED BY PEOPLE
16% 2% 32% 12%

14% 24%

AIRTEL TATA

VODAFONE RELIANCE
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IDEA OTHERS
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Analysis & Interpretation

BASIS FOR CHOOSING OPERATOR

1%

15% 10% 4%

70%

ECONOMICAL VALIDITY OPTIONS OTHERS

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PROMOTIONAL NETWORK COVERAGE

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Analysis & Interpretation

Do you give preference to advertisement for choosing your operator?
40 35 30 25 NO. OF 20 PEOPLE 15 10 5 0 YES NO CAN'T SAY
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Series1

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Analysis & Interpretation

What do you think about the Airtels advertisements?
3% 7% 25% 65%

excellent

good
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average

poor
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Analysis & Interpretation

Which operator would you prefer (except yours)?
0

O R E O D LI T A A F IR O I T A H T N DE AT NC ER E L E A A E S

OPERATORS

10 5 Series1 10 20 55 0 20 40 60

NO. OF PEOPLE
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Findings
Airtel enjoys high market share Expensive and confusing plans of 3G Network Connectivity Attractive Advertisements Major competition with Vodafone

Good market image

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Conclusion
AirTel has the most recognizable brand in the Indian operator space, with 30.8% of our respondents .
Of respondents, 27.4% identified AirTel with cool, 26% with creative, and 22% with technically advanced. Only 8.6% of respondents identified AirTel with cheap. It has increased its market share from 20.5% to 33.5% of the market.
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Recommendations
Improve 3G Plans Pay attention over Quick resolution

Reduction in Tariff Prices

Focus on Customer satisfaction Availability of vouchers
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References
Books:Marketing Management Philip Kotler Methods of Social Survey & Research S R Bajpai Journals:The Times Of India Economic Times Business Standard Websites:www.airtel.in indiatelecomnews.com www.telecomindiaonline.com www.moneycontrol.com Individual:Mr. Avinash Dwivedi Assistant Manager Airtel

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Thank You!!!!!!!
Prepared By:Avinash Pandey Alok Tripathi Alok Dwivedi

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