Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
airtel case study(ABM, OUAT)
1. Presented By
ANIL MISHRA (21/ABM/2017)
SUBHASHREE PALO (14/ABM/2017)
LOPAMUDRA PANDA (31/ABM/2017)
RASHMI RANJAN MAHAPATRA (34/ABM/2017)
The Story To Tell Through A Tale….
Presented to:-
Dr. S. MAHAPATRA
PRESENTATION ON MARKETING MANAGEMENT
2. INDEX
2
• Introduction
• Company profile
• History
• Organizational structure
• Objectives
• STP
• Marketing mix
• Management tools
• Key problem areas and suggestions
• Achievements and awards
• Question
• Conclusion
3. INTRODUCTION
3
Name of the company: Bharti Airtel Ltd.
Industry: Telecom Industry
Competition level: Most competitive
Consumer class: Diversified class of consumers
Brand: Airtel
Price: Ranges from economy to premium level
Market status: market leader
Industry status: Fastest growing industry
Product mix: prepaid and postpaid mobile, airtel payments bank,
broadband, 4G and DTH service
4. COMPANY PROFILE
4
Bharti Airtel Limited is a telecommunication service company
& also a multinational company.
Company was founded by Sunil Bharti Mittal.
Airtel established in 7th July 1995 & its headquarter in New
Delhi, India
Airtel provide products like mobile telephony, broadband ,fixed
landline internet services , digital television & IPTV.
5. 5
It operates in 18 countries across South Asia and Africa.
The company ranks amongst the top 4 mobile service
providers globally in terms of subscribers.
It has 24868 employees till mid 2016 as per data source.
Total revenue of the company is 966 billion INR (2016,
US$14 billion)
8. HISTORY
8
From the humble beginning in the Indian telecom industry in
1986;Airtel has its roots in Bharti Telecom limited,
Founded in 1986 by Sunil Bharti Mittal , the company was the
first in india to offer push button telephones , when rest of the
company using rotary phones.
The first partnership they had was with Siemens AG of Germany
.The company then went on to launch various telecom
technologies to the Indian market.
HISTORY
9. 9
Going on to acquire license to build a cellular network in Delhi,
Bharti Telecom limited laid the ground work for the mobile
operations of the company in the year 1992.
It began operations in Delhi in the year 1995 as Bharti Tele-
Ventures.
The service was extended to various other states by various
acquisitions and partnerships.
The business at Bharti Airtel have been structured into 3
individual strategic business units(SBU’s)-mobile services , tele
media services(ATS) & enterprise and Digital TV.
10. CHANGE IN AIRTEL TAGLINE
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Power to keep in touch(1995)
Touch tomorrow(1999)
Live Every Moment(2002)
Express Yourself (2003)
Get closer to What you love(2010)
Pay for what you use.
No leftovers no wastage.(2017)
14. OBJECTIVE
14
To promote and establish company’s funds, associations or
partnership to provide telecom network or to run and maintain
telecom services
To carry on the business of manufacturers, merchants, dealers,
distributors, importers and all type of telecom exchanges and
devices and to provide equipment and machinery for the
manufacturer thereof and to provide technical services to them.
To promote the brand as the “most preferred and respected
brand of India”.
17. STP
17
Segmentation:
On the basis of geography: Asia
Africa
On the basis of country: 21 countries
Indian market is divided into 22 telecom regions
Subdivided states category into metro circles or A, B, C.
Circles based on population being serviced.
Further divided based on personal use and corporate use
18. 18
Targeting:
Corporate people and business with corporate plans.
Targeted youth by introducing pocket friendly tariff plans.
Target women and senior citizens by introducing postpaid plans.
Targeting cost conscious consumers with cost cutting plans.
Positioning:
Change of symbol so as to appeal to global consumers.
Aspirational and lifestyle brand.
Positioned in corporate segment as a reliable brand with high quality
service.
19. PRODUCT
Airtel prepaid
Airtel post paid
Value Added Services(VAS)
Fixed line & telephony
Broadband &Fixed line
Internet Services
Digital Television& IPTV
Airtel payments bank
MARKETING MIX
19
20. PRICE
Customer based pricingg
strategies
Flexible pricing mechanism
Controlled by TRAI
20
21. PLACE
Wide & extensive presence even in
the remotest areas.
Mobile operators and retailers
Airtel customer care Touch Points
Distributors Like,
Paan shops, grocery stores, chemists,
outlet etc.
21
The first Airtel store fully operated and
managed by women employees was
inaugurated in Udaipur's Manglam Fun
Square Mall,
Customer service center of
airtel
22. PROMOTION
Airtel engages in aggressive marketing strategy
ranging from traditional print media to social
network marketing
Big celebrities like SRK , Sachin & Kareena
Kapoor are roped in to endorse the product
In 2002 Airtel got its signature tune from
A.R.Rehman
Provides innovation such as Bollywood movie
premiers, music services as ring basic tones
&many more.
Other promotion ways are
TV ,The print media, posters ,internet, hoardings,
sponsors of various events
22
25. Biggest mobile service provider- in India and third largest in the world.
It has highest no. of subscribers on India around 229million. It covers
around 24% of total subscribers in India
Good infrastructure- As we all know that Airtel is the oldest telecom
company, so the no. of towers is high and available all over the country
which is a big advantage of Airtel
Good brand image- It is a big brand i9n India. Airtel does its
advertisements through TV, print media and other form of
advertisements. Various celebrities endorse Airtel.
Good network and reliable- It has one of the best mobile networks in
India. It provides high quality services as compared to other companies
Strong financial position and strategic alliance- It has strategic alliance
with other stakeholders like Nokia, Ericsson, Microsoft
Strength
25
SWOT ANALYSIS
26. High competition in the market- As we all know that in India the no.
of telecom companies is increasing, there are more than 10 telecom
companies in India. These companies are providing tariff and other
plans which is affecting Airtel market.
High debt- According to current financial report of Airtel, there is lot
of borrowing. How can Airtel pay this debt is the question.
Late starting of 3G and wireless technologies- Due to various political
issues, regulatory problems Airtel was late to start its 3G services. It
was launched in 2011. The tariffs were high as compared to 2G, speed
was not good and customer acceptance of 3G was too slow.
Weaknesses
26
27. Untapped voice market- Despite of many customers in India,
millions of people are without phone. According to TRAI,
around 12% of total connection in India is inactive. Airtel
can make strategy for this type of customers.
Revenue from 3G service- As per the data only 5% of
revenue is generated from 3G. Airtel can work on this issue
and generate more revenue from 3G.
LTE(4G)- Whole world is moving towards LTE. Airtel can
make good strategy to develop this segment more and more.
Opportunities
27
28. Mobile number portability- MNP gives independence to
the customers to change the service provider while
retaining the same number. With similar tariffs across
various service providers consumers are willing to
change. Airtel is losing its customers to newer
companies who attract them with their offers.
Intense competition- As other companies in the telecom
market are providing very cheap tariffs as compared to
Airtel, so people are switching to other companies.
Threats
28
29. It grows faster and consumes
large amount of money
They have low market share
and do not generate more cash
There are many products
which can be into question
mark category. Eg. DTH,
broadband
High growth product which
have a large market share in
concern industries.
In case of Airtel
communications, its mobile
services have high share of
23% of market which is
growing @9.6 to 18% of total
revenues contributed by this
only
BCG MATRIX
29
30. Products in which the
company has very small share
in slow growing market
In case of Bharti Airtel its
fixed line services can be
called the dog for the
company
Products are the leaders in the
market and which are
growing slowly but the
company has a large share in
the market
Airtel cellular services are
growing @5.35% monthly,
are the cash cow which form
the foundation of Airtel
30
31. There is high percentage of
presence of substitute
products and services in the
market, which is a huge threat
to Airtel.
The cost of switching is very
low for consumers which
pose a threat to service
providers and most of the
consumers might switch to
substitute because of low
price.
So it’s a challenge for Airtel
to maintain their quality.
While considering the
industry that Bharti Airtel
operates in, we can see that
there are certain barriers to
entry for new entrants.
Huge licensing fee, existing
intense competition in the
industry and rapidly changing
trends act as barrier to entry
of new entrants.
Reliance jio entered as a
threat to Airtel
PORTER ANALYSIS
Threat of new entrants
Threat of substitute products
or services
31
32. With increasing choice of
substitutes in the market, the
buyers have a huge bargaining
power over Bharti Airtel.
The factors like low switching
cost, availability of various
substitutes play an important
role in bargaining power of
buyers.
The customers switch due to
low price so, if Airtel is not
providing their services at low
price, the will face a high
bargaining power of buyers.
The suppliers of Bharti Airtel
are handset provider, tower
provider.
Considering the amount of
competition in the industry,
the bargaining power of
suppliers is very high as they
can easily negotiate with their
buyers because they can
switch to another buyer since
there are a lot of options
available in the industry
Bargaining power of suppliers Bargaining power of buyers
32
33. KEY PROBLEM AREAS
33
Limitation of fund:-Availability of funds was another
limitation owning to shortage of money.
Limitation of skills:-The research needs a lot of statistical
work involving collection and tabulation of data,
interpretation of data and drawing out the necessary results
requires an able ,efficient and experienced research works.
Limitation of human behaviours:-some of the respondent
are not honest and genuine in their approach . some of the
respondent could not understand certain queries.
34. SUGGESTIONS
34
As a result of competition and our entry into proposed
markets we may have to ;
I. Reduce prices
II. Increase capital expenditure in order to offer competing
or superior value added services
III.Increase advertising and distribution expenditures
35. ACHIEVEMENTS AND AWARDS
35
It is India’s 1st paperless electronic recharging facility for prepaid
customers.
It won prestigious techies award for being the best cellular services
provider for consecutive years between 1997 to 2000.
In 2003, it received voice and data award for being India’s largest
cellular service provider among others.
Awarded as the Best Quality Mobile Network Service Provider, at the
6th National Telecom Awards 2012 hosted by CMAI
Launched high speed 4G services commercially in 334 towns across
India.-Oct. 2015
36. 36
In Feb. 2016 Airtel received the award of best 4G
Mobile Network Operator for the year 2015 for
exceptional performance in 4G LTE by Olleh Rwanda
Networks (ORN).
Bharti Airtel was recognized as the ‘Firm of the Year
– Telecom’ at the 3rd edition of ICICI Lombard &
CNBC-TV18 India Risk Management Awards.
Bharti Airtel secured the second position in
Interbrand’s ‘Best Indian Brands Report 2016’.
Bharti Airtel has been declared winner of ‘Golden
Peacock Award for Excellence in Corporate
Governance’ for the year 2016.
37. 37
Q. Analyse the brand image of airtel and suggest suitable
public relation and public strategy for making Airtel brand as
the “Most preferred and Respected Brand of india.”
Ans. Airtel as a brand is busy in building a mass franchisee for its
target market.
The sales driven communication has a limited ability to
promote the brand as “MOST PREFFERED AND RESPECTED
BRAND OF INDIA”.
Airtel increased as a brand but giving back to foundation and
community has not been publicized well.
38. PUBLIC RELATIONS
1/2/2018
Marketing Communication
function used to manage
communication between an
organization and its publics and
create favorable relationships
with different stakeholders.
to become more “customer-
centric”
aims at developing a
relationship of a company with
its customers ,suppliers
,partners ,distributors – even
its stakeholders.
39. ADVERTISING V/S PUBLIC RELATIONS
1/2/2018
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Marketing and sales have their primary objective as selling an
organization's products but public relations attempts to sell
the organization itself.
Public Relations dept. generally have responsibility for
managing the corporate image, whereas marketing is
responsible for managing the image of product brands.
40. 40
In this present highly competitive telecom industry scenario ,the
Bharti family has decided to pledge 10% of their health including 3%
of their stake in group flagship Bharti airtel ,towards supporting the
activities of Bharti foundation.
With this commitments the Bharti family envisions to significantly
step up the scope and reach of Bharti foundation’s activities and
further enable the foundation to develop and execute innovative
models which will make Bharti Airtel strengthen its public relation
and retain its brand image.
Even though is India’s largest mobile company, its doesn’t boast the
same on social media ,Although it has a very good presence on
Facebook ,twitter and YouTube.so it can well utilize its presence on
social media to enhance its public relation and promotion. Like
,sources say more than 340 videos and almost 9Millian views
through the Airtel channel on YouTube is doing a good work
41. AIRTEL 5G TECHNOLOGY
41
In order to make the Airtel brand as the most preferred and respected brand
of India, recently Bharti airtel has partnered with Swedish telecom gear
maker Ericsson for 5G technology for the telecom giant’s India operation.
From the source www.BusinessToday.com Bharti airtel and Ericsson tied up
and signed MoU ,(agreement) for 5G technology in India, which will help
airtel to build its stand in the highly competitive telecom industry presently
42. OUR PUBLIC RELATION AND
MARKETING STRATEGY
Marketing Public Relation i.e Brand Publicity
44. CONCLUSION
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Airtel have done a good job by improving their core competencies.
It is working on the research and development which is the main reason for
its top position in the market.
It is the 1st telecommunication industry to enter into 4G market.
It has a focus over the rural areas and extend its business in rural areas.
Any business should have vision, mission, objective and organizational
structure. To cover all the criteria company should make a strategic decision
to reach their main goals.
With this view Bharti Airtel is continuously working in. There are several
competitors like Reliance Jio, Vodafone, Idea etc in the market with the
similar game plan..
This case study gives the conclusion that with the changing economic and
political scenario telecom sector faces many ups and downs. In order to
maintain 1st position Airtel need to follow some different strategy which we
have already discussed about.