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Internship report


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Internship report

  1. 1. A PROJECT REPORT ON “MARKETING STRATEGIES” AT BHARTI AIRTEL LIMITED Indian Institute of Planning And Management,New DelhiSubmitted By:-AAKASH AGGARWALUG-4FW 2010-2013, BBARegistration No. – 10AC90013Student ID – D1013FWICHE-B10211-(DEL-1A-DC-7216)Internship Period-20th July 2012-20th September 2012 1
  2. 2. AcknowledgmentI express my sincere thanks to the project guide for guiding from the inception till thesuccessful completion of the project. I have taken efforts in this project. However, it wouldnot have been possible without the kind support and help of many individuals andorganizations. I would like to extend my sincere thanks to all of them.I am highly indebted to my colleagues at Venkatesh Foods Industries for their guidance andconstant supervision as well as for providing necessary information regarding the project &also for their support in completing the project.I would like to express my gratitude towards my parents & member of Venkatesh FoodsIndustries for their kind co-operation and encouragement which help me in completion of thisproject.I would like to express my special gratitude and thanks to industry persons for giving me suchattention and time.My thanks and appreciations also go to my colleague in developing the project and peoplewho have willingly helped me out with their abilities. AAKASH AGGARWAL UG-4 FW 2010-2013 Registration no.- 10AC90013 IIPM, NEW DELHI 2
  3. 3. EXECUTIVE SUMMARYExactly ten years ago, Jyoti Basu in Calcutta called Sukh Ram in Delhi in what was the firstmobile phone call in India. Brick sized cell phones used to cost Rs. 45,000 and each call costedRs. 16.5/minute. Back then, cell phone was a status symbol. Today, there are over 60 millionmobile connections in India (expected to double in number in next 12 months). A local call costsaround Rs 1/min and a cell phone can be purchased for less than Rs. 2000.Wireless technology has been a boon for India. In a country where setting up wired infrastructureis very expensive and time consuming, wireless is the perfect solution to connect remote villages.The timing was also just right as India escaped the burden of legacy technology and reaped thebenefits of latest GSM technology.Cell phones have not been just about technology. They have brought about a cultural change inthe country. SMS is the favorite means of communication for everybody today.The revolution in computing in countries like India will also come through mobile phonesTimewas when it took several years to get a new telephone connection in India. Now, there is lesspressure than ever before for fixed landlines as mobile phone subscribers appear poised tooutnumber those with a fixed line.In January 2003, one year before, India had just 10 million mobile subscribersWhen mobile telephony was introduced in India in 1994, there were just a few service providers,such as AirTel. It was a heavily regulated sector with prohibitive license fees, high call chargesof 30 cents per minute, and expensive handsets. Then, only the privileged could use a mobile inIndia. But in the last four years, call charges have fallen and license fees have become moremanageable. 3
  4. 4. TABLE OF CONTENTS NO TOPICS PAGE NO01 EXECUTIVE SUMMARY 0302 INTRODUCTION 0503 LITERATURE REVIEW 0604 MARKETING STRATEGIES 3105 SUMMARY OF FINDINGS 3506 CONCLUSION 3707 SUGGESTION & RECOMMENDATIONS 3808 BIBLIOGRAPHY 4009 QUESTIONARY 40 INTRODUCTION OBJECTIVES1. To study the importance and development of tele – communication industry in today’s scenario.2. To understand the various Marketing Strategies which Airtel has adopted to survive in highly competitive cell phone industry.3. To make a comparative study of the major players in Indian Service Provider. 4
  5. 5. RESEARCH METHODOLOGYThe methodology adopted for this project is exploratory in nature since there is no hypothesisthat has to be tested. The conclusions have been drawn by exploratory research work.There have been two sources of information collected:a) Primary SourcesI have met retailers of the Airtel of the company and have been able to get first hand informationregarding the product, its features and the buying patterns of the product. Their input has beenvaluable.b) Secondary SourcesSecondary source has played a vital role to play in this report. A good amount of data has been collectedfrom various published articles and reports found in magazines and journals. Another vital source hasbeen the Internet and particularly the companies own website. CHAPTER I (LITERATURE REVIEW) TELECOMMUNICATION MARKET IN INDIAThe Indian telecommunications Network with 250m telephone connections is the fifth largest inthe world and is the second largest among the emerging economies of Asia. Today it is thefastest growing market in the world and represents unique opportunities for UK companies in the 5
  6. 6. stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown animpressive jump to 9.5% in 2006 and 10.5% in 2007 and is set to increase to 20% in the next fiveyears beating the Govt. target by three years. Accordingly, India requires incrementalinvestments of USD 20-25 bln for the next five years.Private operators have made mobile telephony the fastest growing (over 164% p.a.) in India.With more than 33 million users (both CDMA and GSM), wireless is the principal growth engineof the Indian telecom industry. Given the current growth trends, cellular connections in India willsurpass fixed line by late 2004/early 2005. Intense competition between the four main privategroups - Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL andMTNL has brought about a significant drop in tariffs. There has been almost 74% in cell phonecharges, 70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for theconsumers.The Government has played a key enabling role by deregulating and liberalising the industry,ushering in competition and paving the way for growth. While there were regulatoryirregularities earlier, resulting in litigation, these have all been addressed now. Customs duties onhardware and mobile handsets have been reduced from 14 percent to 5 percent. INDIAN CELLULAR MARKETThe Bharti Group, which operates in 23 circles, continues to be the countrys largest cellularoperator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a subscriber base of37 lakh subscribers. Thus BSNL stands second largest cellular operator in terms of subscriberbase at the end of the fiscal ending March 31, 2007, displacing Vodafone from the secondposition. 6
  7. 7. Vodafone, which operates in only eighteen circles, is the third largest operator with a subscriberbase of 32 lakh. Unlike fellow public sector undertaking, MTNL, which operates in Mumbai andDelhi, BSNL has been a very aggressive player in the market. "Cellular operators who expectedBSNL to go the MTNL way, were taken by surprise and did not take effective steps to counter it,till it was too late in the day," said a telecom analyst.Belying fears of a slowdown in cellular subscriber acquisitions, the cell club has reported a7.92% growth, the highest growth in any month so far, during March 2005. Year-on-year, thecellular subscriber base in the country has almost doubled in March 2005, and is expanding atthe rate of 25% per year thereafter.The cellular subscriber club expanded by 21.31 lakh last month. This is much higher than 5.9lakh subscribers added in February 2005 and 2.13 lakh in January 2005. Idea, which operates inSeven circles, is the fourth largest operator with a subscriber base of 17.80 lakh, higher thanBPLs 11.31 lakh subscribers across four circles. The subscriber numbers per operator dropsharply with the sixth largest operator, Spice Communications, having a subscriber base of 9.40lakh, followed by Reliance Telecoms 8.9 lakh subscribers. MTNL is the ninth largest operator,with a base of 8.32 lakh subscribers.While the subscriber base-jumped by 3.38% to 44.39 lakh in the metros, subscriber base ofcategory A circles of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu jumpedby 10.18 % to reach 43.64 lakh. Category B circles of Kerala, Punjab, Haryana, Uttar Pradesh(West), Uttar Pradesh (East), Rajasthan, Madhya Pradesh and West Bengal recorded a jump of10.69%, with a total base of 33.74 lakh subscribers. Circle C has reported 12.74 % growth withsubscriber numbers jumping to 5.08 lakh. 7
  8. 8. Among the metros, while Mumbai added 1,63,180 subscribers, higher than the 1,58,646 addedby Delhi, the Capitals cellular subscriber base of over 80 lakh is still higher than Mumbais66.89 lakh. While the cellular industry has been on roll for the first three quarters of the previousfinancial year with an average of 16.75 lakh monthly additions in the third quarter, the first twomonths of 2007 had seen the growth slowing down.With a population of around 1.1 billion growing at roughly 1.7 per cent a year, India ispotentially one of the most exciting GSM markets in the world. After two rather difficult years,the past 12 months have seen the regions promise beginning to come to fruition. Much of thissuccess can be attributed to the stabilisation of the licensing and regulatory environment.Indias telecommunications have undergone a steady liberalisation since 1994 when the Indiangovernment first sought private investment in the sector. However, it has been the governmentsNew Telecom Policy (1999) that has had the most radical impact on the development of GSMservices. The policys mission statement is affordable communications for all,There is a genuinecommitment to creating a modern and efficient communications infrastructure that takes accountof the convergence of telecom, IT and media. In addition, the policy places significant emphasis 8
  9. 9. on greater competition for both fixed and mobile services.Competition in the mobile sector has already had a visible impact on prices with calls currentlycosting less than 9 cents per minute. This means that service costs have fallen by 60 per centsince the first GSM networks became live in 1995. It also helps explain why a recent TelecomAsia survey revealed that more than 70 per cent of Indian mobile subscribers felt that prices werenow at a reasonable level.One of the challenges facing GSM operators in India is the diversity of the coverage regions-from remote rural regions to some of the most densely populated metropolitan areas in theworld. India has more than 40 networks, which cover the seven largest cities, over 7000 townsand several Lacs villages. Such depth of coverage has required enormous investment fromIndias operators. It is estimated that more than Rs200 billion had been invested in Indias GSMindustry by mid-2000, a figure that is set to be supplemented by a further Rs. 300 billion over thenext five years.The good news is that subscriber growth is beginning to look healthy. WithIndias low PC penetration and high average Internet usage -at 14-20 hours a month per user it iscomparable to the US -the market for mobile data and m-commerce looks extremely promising.WAP services have already been launched in the subcontinent and the first GPRS networksare in the process of being rolled out. COMPANY PROFILE 9
  10. 10. Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integratedtelecom conglomerate, Bharti Enterprises. Bharti Airtel limited is a leading globaltelecommunications company with operations in 19 countries across Asia and Africa. Thecompany offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH,turnkey telecom solutions for enterprises and national & international long distance services tocarriers.Bharti Airtel has been ranked among the six best performing technology companies in the worldby business week. Bharti Airtel had 200 million customers across its operations. Apart frombeing the largest manufacturer of telephone instruments in India, it is also the first company toexport its products to the USA.SERVICESBharti Airtel’s product and services portfolio includes mobile services, home phones, broadband,calling cards, DTH, IPTV, MPLS Services, satellite services, data transport solutions andconferencing services. AIRtEl PREPAIdAirtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti Enterprises,Indias leading integrated telecom service provider. Going mobile with Airtel Prepaid is a newway of life. With a host of great features, also simple to use, Airtel Prepaid makes everythingthat you dreamt and believed, possible. AIRtEl PoStPAId 10
  11. 11. Airtel welcomes you to a vibrant world of unlimited opportunities. More exciting, innovative yetsimple new ways to communicate, just when you want to, not just through words but ideas,emotions and feelings. To give you the unlimited freedom to reach out to your special people inyour special way. AIRtEl RoAmIngAIRTEL’s Roaming service allows you to use your mobile phone to make or receive calls fromalmost anywhere in India and abroad.Airtel Roaming gives you two great options: Airtel National and Airtel International. long dIStAnCEExperience complete freedom like never before with Airtel! Our National Long-Distance facilityallows you to make long distance calls in India and Overseas from your cellular phone. Thisservice is applicable to both Postpaid and Prepaid customers. AIRtEl & VISuAl IdEntItyFor a brand to be successful, it must build enduring relationships with its different audiences.Integral to this relationship is the visual image of the brand the consumer carries in his/her mind.The Airtel brand image is created through the consistent application of a carefully developedvisual identity, which helps Airtel distinguish itself in a cluttered market. Airtels visual identityhelps create instant brand recall and strengthens the relationships that its audiences have with it.The Airtel visual identity has different elements that work together to create a strong andconsistent identity for the brand. thE AIRtEl logo 11
  12. 12. The new logo is the letter ‘a’ in lowercase, and has airtel written in lowercase under the logo andthe word starts with a small A. The unique symbol is an interpretation of the ‘a’ in airtel. Thecurved shape & the gentle highlights on the red color make it warm & inviting, almost as if itwere a living object. It represents a dynamic force of unparalleled energy that brings the brandand its customers closer. The specially designed logo type is modern, vibrant & friendly. Itsignals the brand’s resolve to be accessible thE AIRtEl tyPogRAPhICAl StylEThe use of all lowercase is its recognition for the need for humanity. Red is part of the brand’sheritage. It is the color of energy & passion that expresses the dynamism that has made airtel thesuccess it is today, in India, and now on the global stage.Airtel comes to you from Bharti Tele-Ventures - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. 12
  13. 13. Sunil Bharti Mittal (Chairman and Group Managing Director) VISION:"As we spread wings to expand our capabilities and explore new horizons, the fundamentalfocus remains unchanged: seek out the best technology in the world and put it at the service ofour ultimate user: our customer." About bhARtI tElE-VEntuRESBharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments intelecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is one of world’s leading providers of telecommunication services with presence in allthe 22 licensed jurisdictions (also known as Telecom Circles) in India, and operations inSrilanka, Bangladesh and Africa. It served an aggregate of 207.8 million customers as ofDecember 31, 2010; of whom 199.6 million subscribe to their GSM services and 3.2 million usetheir Telemedia Services either for voice and/or broadband access delivered through DSL. It isthe largest wireless service provider in India, based on the number of customers as of December31, 2010. They offer an integrated suite of telecom solutions to our enterprise customers, inaddition to providing long distance connectivity both nationally and internationally. They also 13
  14. 14. offer Digital TV and IPTV Services. All these services are rendered under a unified brand"airtel".The company also deploys, owns and manages passive infrastructure pertaining to telecomoperations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of IndusTowers Limited. Bharti Infratel and Indus Towers are amongst top providers of passiveinfrastructure services in India.Business StrategyBharti Tele-Ventures strategic objective is“to capitalize on the growth opportunities that the Company believes are available in theIndian telecommunications market and consolidate its position to be the leading integratedtelecommunications services provider in key markets in India, with a focus on providingmobile services”.The Company has developed the following strategies to achieve its strategic objective: 1. Focus on maximizing revenues and margins; 2. Capture maximum telecommunications revenue potential with minimum geographical coverage; 3. Offer multiple telecommunications services to provide customers with a "one-stop shop" solution; 4. Position itself to tap data transmission opportunities and offer advanced mobile data services; 5. Focus on satisfying and retaining customers by ensuring high level of customer satisfaction; 14
  15. 15. 6. Leverage strengths of its strategic and financial partners; and 7. Emphasize on human resource development to achieve operational efficiencies.Mobile Strategy • Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins. Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles. Attract and retain high revenue generating customers by providing competitive tariffs, offering high quality customer support, proactive retention programs and roaming packages across all of its mobile circles. • Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile customer base rapidly.Media Strategy The media planning was done by Madison Media.The primary media used for the rebranding campaign was television and print so that everyonewould get to see the ad & this would create an impact in his mind. Later in the secondary media,OOH and digital media was used extensively so that there was an immediate brand recall of thenew logo and the brand Airtel. 15
  16. 16. JWT was the creative agency that has worked on the new Airtel campaign currently playing outon TV, print, outdoor.Brand StrategyTo understand the brand strategy, let’s first look at the brand building exercise associated withairtel — a brand that repositioned recently to mark its global presence in the market.The new Airtel campaign is not merely rebranding. Its a re-launch. A new positioning. A newbrand idea. A new voice. The brand has embarked on an exciting new journey. A journey thatseeks to bring people closer to what they love. In the new participation economy, customers areno longer happy being passive viewers. They want to create, comment on and share all that isclose to their hearts. Airtel seeks to enable that in every way possible.When the brand was launched, cellular telephony wasn’t a mass market by any means. For theaverage consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) aswell as instrument prices were steep — sometimes as much as buying a second-hand car.Bharti could have addressed the customer by rationally explaining to him the economicadvantage of using a mobile phone. But Sunil Bharti says that such a strategy would not haveworked for the simple reason that the value from using the phone at the time was notcommensurate with the cost.“Instead of the value-proposition model, we decided to address the sensory benefit it gave to thecustomer as the main selling tack. The idea was to become a badge value brand,” he explains.So the Airtel “leadership series” campaign was launched showing successful men with theirlaptops and in their deluxe cars using the mobile phone. In simple terms, it meant Airtel waspositioned as an inspirational brand that was meant for leaders, for customers who stood out in acrowd. 16
  17. 17. Did it work? Repeated surveys following the launch showed that there were three core benefitsthat were clearly associated with the brand — leadership, dynamism and performance.These were valuable qualities, but they only took Airtel far enough to establish its presence in themarket. As tariffs started dropping, it became necessary for Airtel to appeal to a wider audience.And the various brand-tracking exercises showed that despite all these good things, there was noemotional dimension to the brand — it was perceived as cold, distant and efficient.By 2000, Bharti and his team realized that in a business in which customer relationships were thecore this could be a major weakness. The reason with tariffs identical to competitor Essar androughly the same level of service and schemes, it had now become important for Bharti to“humanize” Airtel and use that relationship as a major differentiation.The brand had become something like Lufthansa — cold and efficient. What they needed was tobecome Singapore Airlines, efficient but also human. A change in tack was important becausethis was a time when the cellular market was changing.The leadership series was okay when you were wooing the crème de la crème of society. Onceyou reached them you had to expand the market so there was need to address to new customers.By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh(it now has 200 million customers). And with tariffs becoming more affordable — as cellcompanies started cutting prices — it was time to expand the market.How could Bharti leverage this leadership position down the value chain? Surveys showed thatthe concept of leadership in the customer’s minds was also changing. Leadership did not meandirecting subordinates to execute orders but to work along with a team to achieve commonobjectives — it was, again, a relationship game that needed to be reflected in the Airtel brand. 17
  18. 18. Also, a survey showed that 50 per cent of the new customers choose a mobile phone brandmostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existingcustomers were an important tool for market expansion and Bharti now focused on buildingcloser relationships with them.That is precisely what the brand tried to achieve through its new positioning under the Airtel“Touch Tomorrow” brand campaign. This set of campaigns portrayed mobile users surroundedby caring family members. Says Bharti: “The campaign and positioning was designed tohighlight the relationship angle and make the brand softer and more sensitive.”Airtel positioned itself as a power brand with numerous regional sub-brands reflecting customerneeds in various parts of the country and became more humane and more sensitive as a brand.Bharti also understood that one common brand for all cellular operations might not always workin urban markets that are getting increasingly saturated. To bring in new customers, the companydecided that it needed to segment the market.In 2003, Airtel repositioned its brand with “Express yourself” campaign and changed its logo togive more energetic and younger look .The highlight of the campaign was capability of Airtel’sperformance and network coverage and that it was launched in regional language.CURRENT STRATEGYAs it looks to expand its cellular services globally— With an eye on the youth in Bangladesh,India and Sri Lanka Bharti Airtel has rebranded itself as airtel and launched a global campaignthat will rebrand its operations across the world. The new brand identity has been created in syncwith the launch of the companys third generation (3G) services. thE AIRtEl RE –dESIgn 18
  19. 19. Old Logo New LogoThe new logo for airtel service is designed London-based Brand Union, a WPPagency. Brand Union has done a wonderful job as far as the airtel logo goes. “It’s young and vibrant. Above all, there’s a change in positioning, from a voicecompany to one that provides data. It enriches lives in other words.The group’s marketing effort has been reinforced with the re-launch of the Airtelbrand logo, with a new international and younger look.The idea was to rework thebrand so that it is relevant to a larger segment of the population as we are nowexpanding globally. The new brand look will be supported by a Rs 300 crore budget.Basically, Bharti Airtel, the brand owner, which provides the service, has done awaywith the box in which the word Airtel was placed earlier. This was famously calledthe flag logo because the look resembled just that — the colours red and whitealternating with each other. The word ‘Air’, in black, was placed against a whitebackground, while ‘Tel’, in white, appeared against a red backdrop. To keep thecontinuity going, the dot of the letter ‘i’ in the word, was also red.Airtel now, is “unboxed” having been freed of its rigid boundaries. In a break fromthe past, the word airtel has been spelt in lower case.The brand has also recently unveiled its new positioning,Dil jo chahe paas laye 19
  20. 20. TARGET AUDIENCE PROFILE • The target audience for this ad campaign will be both males and females between the age groups of 15- 45 years. • A vast Age group has been chosen as nowadays almost every person is using a mobile. • The target audience will be all over India as Airtel is a service that is being used by consumers all over. • The target audiences are people who are currently using Airtel Services as well as non Airtel users. • The benefits the target audience would get form the brand Airtel would be a combination of : o Emotional Benefit- The consumer could express his inner most feelings and always stay connected to loved ones. o Social Benefit- Airtel is an International brand now, it would satisfy his esteem needs. • The target audiences’ involvement with the product is very HIGH, as communication is one of the most important aspects in every consumer’s life as it helps him to stay connected to his near & dear ones & also carry on his daily life both professionally & personally. Thus while choosing any such cellular service, he would do a complete analysis & research to find out which service provider would satisfy his needs & may be give even more.CREATIVE BRIEF The target audience in this ad campaign is both males and females of the SEC- A. who isintellectual, intelligent & has the rationality to understand the gravity of the ad campaign. 20
  21. 21. Since the objective was to reposition the brand, it was necessary to make the consumer changehis perception about the brand which required a strong motivation. This could be done only byconnecting with the consumer emotionally & India being a country of emotions, it becamenecessary & easy to reach out to the consumer & place our brands in their minds in a positiveway.Airtel as a brand had to enhance its image, thus it had to give something more, ifnot literally then emotionally. Thus came the concept of, Dil jo chahe paas layewhich meant youll never be away from your close ones in airtel’s world.Once the consumer has seen the ad campaign, it should create a deep impact in the minds of theconsumer, so that if asked about any service provider Airtel should be the brand that should inthe consumers TOMA (Top of the mind Awareness). After this ad campaign the consumer wouldhave a higher bonding with the brand.Since the situations shown in the ad campaign are similar to what every consumer can relate to,the consumer after having seen the ad campaign should be convinced that its only Airtel which isa service provider that enables him to convey all that he wants to.happily walking across the city. They enter a metro station and once again are verysad, as the young man boards a train. As the train leaves, the girl once againmeets the man on the platform and happily hugs him. The TVC ends with avoiceover saying, "In Airtels world, youll never be away from your close ones. DilJo Chahe Paas Laye." PROMOTIONAL ACTIVITY (STRATEGY) 21
  22. 22. Airtel to “Touch Tomorrow” with a new brand visionThe Bharti Mobile promoted AirTel cellular service will go in for repositioning of its brandimage. The new brand ethos is portrayed in two distinct fashions - the tag line "TouchTomorrow", which underscores the leading theme for the new brand vision, followed by "TheGood Life", which underscores a more caring, more customer centric organization. Aimed at re-engineering its image as just simply a cellular service provider to an all out informationcommunications services provider, Touch Tomorrow is meant to embrace the new generation ofmobile communication services and the changing scope of customer needs and aspirations thatcome along with itThe new communication is about a new dimension in the cellular category that goes beyond theInternet, SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless digitalbroadband services that will constitute tomorrows cellular services. The new campaign is in twophases - the first of which will communicate overall brand philosophy and the second productsand services. According to Mr. Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, 22
  23. 23. Karnataka "We are adopting a new brand- platform - Touch Tomorrow - not only to reflect ourcorporate ethos but also business strategy".The new identity will have the logo in Red, Black and White colours along with lower casetypography to convey warmth. AirTel will incorporate the latest branding in all of itscommunication and will soon be going in for an enhanced promotional drive to establish thebrands presence.MARKET SITUATIONAt the time of launchThe first mover in the market was Airtel which launched its services in Delhi in Aug 1995(Informal launch). Essar Cellphone followed by launching its services informally in Oct 95. Atthis point of time, the market was at a nascent stage, awareness level was low and both operatorsindependently tried to spread awareness and educate the peopleOnce the networks were commercially launched, it became a number game with a multitude ofschemes being offered to woo customers Initially the cellphone was perceived as a status symboland utility took a back seat The target segment in Delhi were corporate and the high incomegroup. The average capacity installed was for 1.5 lakh subscribers. This coupled with the steeplicense fee paid to DOT put pressure on the operators to break-even by rapidly expanding theirmarkets. In the first two years, this led to a number of schemes being offered and pricescrashing.COMPETITIVE SITUATIONAirtel launched its services before Essar and skimmed the market picking up the bulk of the highusage premium clients. This is a very competitive industry with the two companiesdifferentiating either on value-added services or price. Airtel is perceived as the high quality 23
  24. 24. provider and has a premium image. Essar, on the other hand, is perceived as the lower endservice provider. Airtel positions itself as the market leader on the basis of the number ofsubscribers. Essar is trying to counter this by emphasising on the reach of its network and thequality of its service. However, Essar is somewhat not been very successful largely due to theinconsistency in advertisingTo promote themselves, both the players have been dependent on tactical advertising However,they have restrained from using comparative advertising Hoardings have been a very popularmedium for carrying the advertisements Airtel has also been advertising on television using theBharti Telecom name.SALES DEPARTMENT AND STRATEGYA. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers. • Maintaining call reports for records. • Providing Feedback to the marketing department regarding the requirement of the market.B. IDC (indirect Channel) • Handling distribution 24
  25. 25. • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. • Target achievement • Training the executives of the channelC. Distribution Support 1. Logistics • Monitor handset and SIM card requirements of channel partners and co-ordinate with stores • Settle areas of concerns such as incentive claims of channel partners2. Rental • Provide cellular services (SIM cards) on rent. • Provide cellular phones on rent • Useful for people visiting Delhi for a short interval.3 Telesales • Call customers and generate sales lead. • Follow up with the customers, if they need any assistance • Pass on the sales lead to the channel department. 4 Audit • Consultant to the AirTel showrooms. • Monitor the operations at the AirTel distribution outlets Organize training.5. Retail 25
  26. 26. • Locate shops to open retail counters. • Monitor the retail counters.MARKET SEGMENTATIONSegmentation is beneficial because of better predictability of the target consumer group,minimization of risk exposure, better ability to fine-tune a product / service to the requirement oftarget buyer and the resultant ease in designing a proper designing marketing mix strategy In thiscase segmentation is on the bade of income.In evaluating different market segments the company looks at two factors The overallattractiveness of the segments and the companys objectives & resources The present market forCellular phones, pagers and conventional phones is as follows Premium Middle Economy Upper Lower Upper Lower Upper Lower Cellular Phones X X X - - - Pager X X X X - - Conventional Phones X X X X X -X Market Segment TargetedTARGET MARKET SEGMENTAirtel has targeted the premium and upper middle class. The rationale behind it is that only thosesegments should be targeted who value time and have the paying capacity. It Is also planning totarget the business tourists during their stay in the capital 26
  27. 27. About 60% of the clientele are top executives of corporate houses. About 15% are foreignorganisations and the rest are professionals and small businessmen. During the introductionstage there was intense pressure to get consumers across to hook up with their brand, becausegetting them to switch brand loyalty later would be hardSo far Airtel marketers have been concentrating totally on the business executive class but nowthat the basic viable volumes has beer) built up and prices have declined to a certain extent theyare planning to venture further a field.POSITIONINGThe product is sought to be positioned as a business efficiency tool. a lifestyle revolution and astatus symbol The emphasis is to remove misconception that the cellphone is an expensivemeans of communication and drive home the point that the cellphone is actually a day-to-dayutility.PRODUCT POLICY AND PLANNINGThe product or service is the heart of the marketing mix. Without a product or a servicecustomers needs cannot be satisfied.The basic product promise by Airtel is mobility. Airtels main marketing strategy is to be a firstmover all the time. It has recognised the significance of making the first move-- because in thefield of Communication & Information Technology changes occur at a tremendous pace.Effective product segmentation has to be carried on continuously because basic services can beand will be copied and in time become expected component of the product. Airtel seeks to carryout this segmentation through provision of new information services and making new facilitiesavailable. The product policy and planning depends on the stage of the product life cycle. Atpresent the cellular phone market has reached the maturity stage. Since, the premium segment is 27
  28. 28. nearing saturation the company targeting the upper middle and middle-middle class. In order todo so Airtel is trying to optimise the price performance package by offering suitable "productbundling".This involves the selection of the suitable hardware (handset) and its software (its services.) withreasonable price in order to deliver maximum price performance to its customers. In addition, itoffers free Airtime services and other concessions to make the prices and thus the product moreattractive. It has also opened a 24 hours customer service.Only price doesnt serve as an effective differentiator, value added services become the effectivedifferentiator.The "Value Added Services" provided from Airtel are:-1). Voice Mail serviceThis system is similar to the answering machine - if the user is not able to answer a call for somereason the caller can leave messages in the voice mail box which can be later retrieved by theuser.ii) Short Message ServiceThe short message service is like a two-way pager. It gives an option of sending and receivingtext messages directly from one mobile phone to another without the intervention of an operator.iii) Mobile Fax 1 Data ServiceThis service helps the subscriber to send and receive Faxes, access E-mail, download computerfiles from other systems and remotely log on to another computer and surf the Internet.iv) Cash Card 28
  29. 29. The cash card is a pre-paid and pre-activated card which allows the buyers to buy air time inadvance. All it requires is the payment of an initial amount. This is a useful service for peoplewho travel to Delhi often and those who want to control the expenses on their calls.v) Caller IDDisplays calling persons Outgoing call restrictionTo prevent or limit outgoing calls, for example, in peak hours. Also possible to exclude one orseveral countries, or any geographical region, to permit only local calls, or to limit the outgoingcalls to a listed number.viii) Call forwardIncoming calls can be forwarded to another fixed or mobile phone.Besides these some other services provided by Airtel are - Call conferencing, Call Broadcast etcetera.It is in the operators -Interest that they not only get many subscribers but also get them to use themobile facility frequently. In the early stages getting increases to subscribe may be easier thangetting them to talk since they will find it costlier to use the mobile phone as compared to aconventional phone [if is believed that initially cellphones would be used buy]viii) Roaming FacilityRoaming facility is available while the subscriber is travelling. The billing is done in the homenetwork (Delhi). Roaming facility is available manually* as well as semi-automatically. Once asubscriber is In any other city or country, where a GSM network is available, simply insert theSIM card of the local operator Into your handset and start talking. 29
  30. 30. * Manual Roaming means a separate SIM card is provided for each city** Semi automatic roaming means one card has the facility for different cities. AIRTELS MARKETING ORIENTATION.Since this is a high-involvement expensive product, the service provider has to fully take care ofthe customers.a) They take personal responsibility to "get" the answer for any problem faced by the customerb) They anticipate customers problems and take pro-active steps to prevent themc) They give answers to the questions & requests, quickly & efficiently.d) They have a positive tone & manner while interacting with customers.e) They end the interaction on a positive or a humorous note-making the last 30 seconds count.Airtel realises that attracting people Is easy but converting them into loyal customers is hard,hence emphasis is on maintaining a Smiling and a Friendly Atmosphere to please and retain thecustomer. 30
  31. 31. MARKETING STRATEGY ADOPTED BY BHARTIBharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besidesprint advertising, the company had put up large no of hoardings and kiosks in and around Delhi.The objective behind designing a promotion campaign for the ‘Airtel’ services is to promote thebrand awareness and to build brand preferences.It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since thecellular phone category itself is too restricted, also the fact that a Cellular phone is a highinvolvement product, price doesnt qualify as an effective differentiator. The image of theservice provider counts a great deal. Given the Cell phone category, it is the network efficiencyand the quality of service that becomes important. What now the buyer is looking at is to get theoptimum price-performance package. This also serves as an effective differentiatorBrand awareness is spread through the campaigns and brand preference through brand stature.Airtels campaign in the capital began with a series of teaser hoardings across the city, bearingjust the companys name and without explaining what Airtel was. In the next phase thecampaign associated Airtel with Cellular only thereafter was the Bharti Cellular connectionbrought up. Vans with Airtel logos roamed the city, handing out brochures about the companyand its services to all consumers. About 50,000 direct callers were sent out. When the name waswell entrenched in the Delhiites’s mind, the Airtel campaign began to focus on the utility ofCellphone. In the first four months alone Airteis advertisement spend exceeded Rs. 4 crores. 31
  32. 32. As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeableconsumers are asked to name a Cellular phone service provider that is on the top of his/her mind60% of them would name Airtel. As for aided it -is 100% (by giving clues and hints etc.).Brand strength of a product or the health of a brand is measured by the percentage score of thebrand on the above aided and the unaided tests. The figures show that Airtel is a healthy and athriving brand.Every company has a goal, which might comprise a sales target and a game plan with due regardto Its competitor. Airtel s campaign strategy is designed keeping in mind its marketing strategy.The tone, tenor and the stance of the visual ads are designed to convey the image of a marketleader in terms of its market share. It tries to portray the image of being a "first mover everytime" and that of a "market leader".The status of the product in terms of its life cycle has just reached the maturity stage in India. Itis still on the rising part of the product life cycle curve in the maturity stage.The diagram on the left hand side shows the percentage of the users classified into heavy,medium and low categories. The right hand side shows the revenue share earned from the threetypes of users.Airtel, keeping in mind the importance of the customer retention, values its heavy users the mostand constantly indulges in service innovation. But, since heavy users comprise only 15 - 20% ofthe population the other segment cannot be neglected.The population which has just realised the importance of cellular phones has to be roped in. It isfor this reason that the service provider offers a plethora of incentives and discounts. Concertslike the "Freedom concert" are being organised by Airtel in order to promote sales. The mediachannel is chosen with economy in mind. The target segment is not very concrete but, there is an 32
  33. 33. attempt to focus on those who can afford. The print advertisements and hoarding are placed inthose strategic areas which most likely to catch the attention of those who need a cellular phone.The product promise (which might cost different 1 higher) is an important variable indetermining the target audience.Besides this, other promotional activities (strategies) that Airtel has adopted are . (i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements,launch advertisements, congratulatory advertisements, promotional advertise-ments, attackingadvertisements and tactical advertisements. DISTRIBUTION Company Franchisee Distributor Dealers Dealer Customer CustomerThe- company whose operations are concentrated in and around Delhi. It 27 Franchisees and 15Distributors- They also have 8 instant access cash card counters- Each franchises or distributor 33