Final assingment of startegic mgmt1


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Final assingment of startegic mgmt1

  1. 1. S u b m i t t e d b y n a z e e r . a h a m m a d @ y a h o o . c o m P g d m ( g e n e r a l ) Acer Abstract of Assignment which is related to the topics History of the companies , marketing and functional strategies of the products, Customer value proposition, products and services offered by the companies and understanding of the business strategies Assignment on strategic marketing
  2. 2. History : In 1996, Dell began selling computers via its web site Introduced the 316LT, the company’s first notebook computer in 1989 Joined the top-five computer Laptop makers worldwide in 1993 Earning appr. $1 million per day 7 months after the launch of in 1996 Introduced E-Support, an online tool to provide technical support to customers 1999 1999, Dell overtook Compaq to become the largest seller of personal computers in the US 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a zero-carbon initiative For the first time, Dell achieves No. 1 ranking in global market share in 2001 2003, name was changed to "Dell Inc." 2006, Dell purchased the computer hardware manufacturer Alienware January 2007, started a turnaround plan that promises to yield $3 billion in annual savings over the next three years. Dell’s business model is simple in concept, but very complex in execution. Building PCs to order means that Dell must have parts and components on hand to build a wide array of possible configurations with little advance notice. In order to fill orders quickly, Dell must have excellent manufacturing and logistics capabilities supported by information LAPTOPS that enable it to substitute information for inventory. The demands of Dell’s model have led it to adopt a new organizational structure referred to as a virtual company or value web (Figure 1). It is marked by a focus on a few key strategic activities, and extensive outsourcing of non-strategic activities. Dell works closely with external partners to produce its PC products and to offer its customers an array of additional products and services that add value and allow Dell to capture a larger share of the customer’s IT spending. Suggestions for improve the sales volume 1. The Dell should improve its quality. 2. The Dell should reduce its prices. 3. The Dell should improve its post sale services. 4. The Dell should maintain its Brand image. 5. The Dell should improve its Sales promotional activities. 6. The Dell should launch a new model of product at regular intervals. 7. DELL Company should follow the promotional activities more like offers which generally increase the sales. 8. The company and its dealers should increase the attachments with the customers. Dell’s Next Business Day On-site Service Description (“NBD Service”) I. NBD Service Overview Next Business Day On-site Service includes, from the date of delivery, a support service in additional to your statutory entitlements which is designed to assist in giving you peace of mind. Should the system develop a fault,
  3. 3. Dell’s NBD Service can place a service technician at the customer’s location after completion of the support procedures listed below (including a problem diagnosis service via website or telephone) and, for the duration of the service period*, provide a parts and labour service. II. Support Procedures - The 4 Levels of Support Dell’s NBD Service supplements your statutory rights and incorporates the following standard support services plus on-site engineer support if necessary: 1. 30-Day Getting-Started Assistance - Dell offers a standard 30-day telephone support program at no additional charge for installation optimisation, configuration, and limited usage questions during the critical 30-day period after delivery of your system. This program is available on factory-installed operating systems and desktop/notebook applications. 2. 24/7 Comprehensive On-line Support - Dell’s standard support website provides on-line assistance, including troubleshooting information, problem diagnosis tools and downloads. 3. Telephone Technical Support – Dell provides a telephone support service to all customers to assist troubleshooting problems on your Dell hardware. 4. Next Business Day On-site Service covering labour and the expedited repair or replacement of parts in the main system unit, including monitor, keyboard and mouse, if not ordered separately, and after confirmed diagnosis with Dell Technical Support. III. Support Procedures – The 4 Levels of Support In Detail The following covers each of the standard support services plus on-site engineer support in detail: 1. 30-Day Getting Started Assistance To help “get you started” for the first 30 days after delivery, Dell provides telephone technical support, installation and configuration advice on: (i) Dell manufactured products; (ii) Dell supplied external peripherals; (iii) factory-installed operating systems; and (iv) factory-installed software. After 30 days from the delivery date, general usage and "how to" software questions are not supported. Notes on Dell’s strategy Dell's business strategy is a successful cost leadership strategy. The company's formula for success has been based upon its unique customization, delivery, and cost proposition. In reaction to faltering performance and the need to pursue new growth opportunities, a dual-strategic approach is required to confront rapidly changing market conditions. First, Dell must integrate its cost leadership skills with differentiated product features and related services to create value for its customers and achieve the benefits of an integrated cost leadership/differentiation strategy. Additionally, becoming a diversified IT company opens up opportunities in related businesses, where similar products, buying processes, target customers, or other operationally-related activities can produce synergies. This business-level and corporate-level strategy combination offers Dell a method of dealing with the company's competitive realities. Both strategies are discussed below. Business-Level Strategy Customer expectations in the industry have created a growing demand for low-priced, differentiated products. As a result, Dell needs to be able to perform primary and support activities that simultaneously yield low costs and differentiated features, or an integrated cost leadership/differentiation strategy. The objective of using this strategy is to efficiently produce products with attributes that boost product quality or performance. Efficient production is the source of maintaining low costs, while differentiation is the source of unique value.
  4. 4. Dell already utilizes a customized assembly process based upon a FMS to fill customer orders. To increase flexibility, the company should look for ways to enhance the effectiveness of information networks (linking the supply chain through to the customer) to improve work flow and communication among employees to identify and resolve problems that emerge. [Improvements in information linkages would prove particularly beneficial as Dell seeks to improve services for its corporate customers.] Total quality management (TQM) is another managerial innovation that emphasizes an organization’s total commitment to the customer and to continuous improvement of every process through the use of data-driven, problem-solving approaches based on empowerment of employee groups and teams. The development and use of TQM systems at Dell would align actions with the company's strategic needs and would concurrently serve to (1) increase customer satisfaction, (2) cut costs, and (3) reduce the amount of time required to introduce innovative products to the marketplace. All of these objectives have been identified as critical factors that will influence Dell's future success. Corporate-Level Strategy A corporate-level strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. Corporate-level strategies help companies select new strategic positions to increase the firm’s value. They are also a means to grow revenues and profits. By 2006, Dell has already diversified from a purely desktop PC provider to operating in the following additional product categories: mobility, server, storage, printer, enhanced services, software, and consumer electronics. More than thirty percent of its revenue is generated outside of its dominant business. Because of this ratio and because there are existing links between its diversified businesses, a related constrained diversification strategy is being employed. With a related constrained diversification strategy, Dell will be able to expand the value of its resources and capabilities by sharing activities and exploiting economies of scope between its businesses. Available to companies operating in multiple product markets or industries, economies of scope are cost savings that the firm creates by successfully sharing some of its resources and capabilities (operational relatedness) or by transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses (corporate relatedness). To create economies of scope both tangible resources (such as plant and equipment or other physical assets) and intangible resources (such as knowledge or other bases of core competencies) can be shared. This second (or late) mover strategy is a competitive response to first movers' competitive actions and is typified by imitation. Taking the time to monitor customer reaction to product innovations and avoiding the mistakes and costs of new product introductions are compatible with Dell's successful business model. The approach also provides Dell with time to develop more efficient processes and technologies or create additional value for consumers.
  5. 5. About Bharti Airtel Limited Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asia’s leading integrated telecom service providers with operations in India and Sri Lanka. The company has an aggregate of over 113.4 million customers as of end September 2009, including 110.51 million mobile customers. Bharti Airtel has been ranked among the six best performing technology companies in the world by Business Week. Bharti Airtel is structured as four strategic business units — Mobile, Telemedia, Enterprise, and Digital TV. The mobile business offers services in India and Sri Lanka. The Telemedia business provides broadband, IPTV, and telephone services in 95 Indian cities. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to carriers. The Digital TV business provides Direct- to-Home TV services across India. All these services are provided under the Airtel brand. Airtel’s national high- speed optic fibre network currently spans over 113,326 Rkms covering all the major cities in India. The company has two international landing stations in Chennai and Mumbai that connect two submarine cable systems — i2i to Singapore and SEA-ME-WE-4 to Europe. To understand Bharti Airtel’s success requires an understanding of India’s unique telecom market and the firm’s commitment to building strong customer trust and confidence. Bharti Airtel is already one of the most integrated telcos in the world and is on track to achieve its goal to become the Most Admired Brand in India. Scalability is a crucial Bharti Airtel is the leading mobile telecom provider in a hyper-competitive and cost conscious market, which necessitates innovation and cost optimization. From 2008 to early 2009, Bharti Airtel added 32 million new customers, and believes it can add another 100 million customers in a few years. At its current pace of nearly 100,000 new customers per day, this goal seems well within reach. In order to deliver the highest quality service at the lowest possible cost, the firm has had to embrace the business model that has helped make India an economic powerhouse: business process outsourcing (BPO). The firm outsources many of its most fundamental functions and infrastructures, including its information technology (IT) operations to IBM, Nortel and Wipro; its communications networks to Ericsson and Nokia Siemens; and its contact centre operations to Nortel and Wipro. With 25 contact centers and 15,000 agents nationwide, Bharti Airtel needed to find a way to reduce the cost of delivering excellent customer service and handle millions of customer calls each month. Partnerships free Airtel to focus on core functions In 2004, Bharti Airtel started the first phase of Contact Centre Technology implementation also known as CCT1, in partnership with Nortel. The objective was to provide contact centre support for the GSM mobile, broadband, and fixedline services, including the IVR and PBX infrastructure required to handle inbound call traffic. By 2009, more than 35,000 ports of IVR had been deployed across four hubs, connecting 25 contact centres across the country. Speech-enabled IVR applications allowed callers to interact with the system in several languages. India has one of the most diverse cultures in the world, including the use of 23 languages and 325 dialects. With exponential subscriber growth and ever-increasing product offerings (e.g. VAS), the IVR menus were becoming increasingly complex. In addition, customers who couldn’t resolve their queries at the IVR were expecting expert human assistance. In 2008, Bharti Airtel selected Indian IT service provider and Genesys Premier Partner Wipro Technologies to implement Phase 2 of the firm’s Contact Centre Technology (CCT) improvement plan.
  6. 6. Bharti Airtel grows at a stunning pace by keeping its focus on the customer. Business Challenge Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration, allowing it to implement and deliver new services rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships. Solution Bharti Airtel entered into a comprehensive 10-year agree-ment with IBM to transform its processes and take on the management of its IT infrastructure. Its new platform provides a standardized framework for Bharti Airtel to integrate its channels and customer-facing processes–enabling a more seamless customer experience, higher customer satisfaction and more profitable growth. Supporting rapid customer growth with an innovative business model Based in New Delhi, Bharti Airtel is India's largest private sector telecom operator and India's sixth-largest company by market capitalization. Bharti Airtel is also the only operator to offer its services (mobile, fixed line and Internet access) in each of India’s 23 “circles,” or operating areas. While this wide service footprint made Bharti Airtel especially well-positioned to capitalize on India's telecom boom, it also presented the company with significant challenges and risks in addressing this demand. In order to keep up, while also maintaining high levels of customer service, all the processes required to run its business–from order management and service activation to those processes involved in the operation of its core network– needed to run smoothly and in sync with each other. With the company approaching a new phase in its growth as a business, and with the need for a compelling user experience of utmost strategic importance, Bharti Airtel knew it needed to take a fundamentally new look at the way it created and managed its customer-facing processes. The risks of growth Bharti Airtel’s other big challenge was the need to make the major investments in IT infrastructure required to service its rapidly growing base of subscribers. As a capital expenditure, these investments are typically offset by the future service revenues that they enable. However, in addition to the inherent risks of a large fixed investment, Bharti Airtel faced an added financial risk from a steady decline in India's average revenue per user (ARPU) for mobile telecom services, the result of government-mandated pricing changes that created–at roughly eight dollars a month–one of the lowest ARPUs of the region. Thus, while Bharti Airtel realized that it was absolutely essential to invest in its future growth, factors unique to the Indian market substantially increased the risks of making these capital investments. To address these unique opportunities and challenges, Bharti Airtel established a far-reaching outsourcing relationship with IBM that substantially mitigates its IT investment risks by giving IBM full control and ownership of Bharti Airtel’s IT infrastructure and associated processes. By substituting predictable operating expenses for risky, upfront capital investments, this strategy fundamentally transforms the financial underpinnings of its business model. An equally important aim of this strategy is to enable Bharti Airtel to focus its energies on grow- ing, serving and retaining its customer base–and thus fully capitalize on India’s astounding growth surge. Growth through flexibility:- Bharti Airtel knew that the key to capitalizing on its growth opportunities was to establish deeper and more personalized relationships with its customers, as well as to provide a consistent, high-quality customer experience. It further realized that, from an IT perspective, the ability to integrate its diverse systems and processes was essential. Bharti Airtel saw the flexibility of IBM’s integration approach–and recognized the application of IBM’s extensive portfolio of middleware products and expertise in service-oriented architecture (SOA)–as an ideal match for its integration requirements. Dr. Jai Menon, Group CIO, Bharti Enterprises and Director (IT & Innovation), Bharti Airtel, was a key architect of the plan. “Our new strategy is all about delivering a truly differentiated experience, and having the flexibility to continually improve the customer experience,” says Menon. “We knew that having a flexible framework for integrating our systems and customer-facing processes was essential to enabling this–and that IBM’s strength in this area would prove to be a great fit.”
  7. 7. Core Values We understand that social progress and environment protection are extremely critical to sustainable economic growth. Both these aspects are embedded in our core values. Our corporate vision describes what we aim to do, our values of AIR “Alive, Inclusive and Respectful” describe how we intend to get there. Vision and Promise By 2015, Airtel will be the most loved brand, enriching the lives of millions. Enriching lives means putting the customer at the heart of everything we do. We will meet their needs based on our deep understanding of their ambitions, wherever they are. By having this focus we will enrich our own lives and those of our other key stakeholders. Only then will we be thought of as exciting, innovative, on their side, and a truly world class company. strategic and operational attention: Strategy used in Airtel 1. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broad band and subscription television services. Airtel is the worlds third largest mobile telecommunications company It operates in 20 countries across South Asia, Africa and the ChannelIs lands. Airtel has GSM network in all countries in which it operates,providing 2G, 3G and 4G services depending upon the country of operation.Bharti Airtel Limited commonly known as Airtel is an Indian multinational telecommunication Services company Headquarter at New Delhi, India 2. Benchmarked by more businesses Mission Statement “We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more” Targeted by top talent Loved by more customers 3. Vision Statement By 2010 Airtel will be the most admired brand in India: Enterprise services Airtel tele media services Mobile services 4. 3. Competition from big players in DTH and other products. Mobile number portability can result in decreasein customer base. Tough competition from china in the future. Political instability is making call charges more. Many international player will come in the industry, giving tough competition Indian Cellular market is the fastest growing market in the world Threats Can Expand its Airtel Tv brand as the digitalization of TV took from july 2012.Increasing mobile and broadband market in rural and urban area of India. Strategic tie ups with google, apple, blackberry to avail various services like search engine for broadband, iphone and blackberry phone. Decreasing ARPU (Average revenue peruser)Opportunities Low GPRS speed Operating margin, Net profit margin is decreasing year on year basis. Poor network in rural areas Huge variety of products in every segment with competitive prices and value added services. Weaknesses Airtel Money, Smar tDrive services which is getting popular. Wide and extensive presence in 25 states of India. 4. Targeting youth of India (the highest population bracket 18-25yrs) Effective advertising capability with out of the box thinking. Recognized and established brand name. High Brand Equity and Strategic Alliances. Huge customer base of 186.9M, highest in India. 5. Strengths
  8. 8. On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limitedand Research In Motion(RIM). Bharti Cellular launched cellular services as "AirTel" inDelhi.2004 6. 1995 5. May 2009 : AIRTEL & MTNInforma Analyst Matthew Reed - Failure was South Africa’s worrythat control of MTN.March 2010 : AIRTEL & Bharti Airtel completed its $10.7 billion acquisition of African operations from Kuwaiti firm - Airtel the worlds 5 largest wireless carrier by subscriber base!!! Indias second biggest overseas acquisition after Tata Corus. ZAIN 6. Airtel title sponsor the inaugural Formula One Indian GrandPrix during the 2011 season. 5- year deal - ESPN Star Sports - The TITLE SPONSOR of the Champions League Twenty20 cricket tournament . 9 May 2009 - Manchester United : Rights to broadcast the matches played by the team to its customers. 10. 7. •Prepaid connections: Targets Audience is college students.• Post paid connection: Target Audience is working people but therecan be secondary audiences such as house wife and college going students who use this connection. Used celebrity endorsers such as SachinTendulkar, SRK, Kareena Kapoor, VidyaBalan, A.R Rehman TV, Print, Hoardings Extra ordinary music used Creative quotient very high Creates pervasiveness 12. Advertisements Airtel Tied up with Lufthansa to offer it scustomers bonus miles on German Airlines. Every new mobile phone that is brought in The Mobile Store, an Airtel GSM is gifted for free There are over 800 Airtel Stores across India 13. 8. In a service industry like telecom, people live a brand 24X7. Its all about experience; and for Airtel,brand =customer experience-Rajan Mittal,Joint Managing Director Functional, Investment and market strategy of Airtel PORTER 5 FORCES INDUSTRY LIFE CYSLCE STRATEGIC GROUP ANALYSIS 1. Porter’s 5 Forces 1. Threat from CompetitionWireless Market – Top 4 garnering 75% market share HIGH Competitor Market Share – Threat HIGH 2. Customer Bargaining PowerLack of differentiation among Service ProvidersCut throat CompetitionLow Switching CostsNumber Portability will have –Ve ImpactBusinesses & ConsumersHIGHCustomers & Market Share 3. Suppliers Bargaining PowerLOW 4. Threat of SubstitutesHIGHLandlineCDMAVideo ConferencingVOIP - Skype, Gtalk, Yahoo Messengere-Mail & Social Networking WebsitesDIMINISHING MARKETBROADBAND SERVICES
  9. 9. 5. Threat of New EntrantsHuge License Fees to be paid upfront & High gestation periodEntry of MVNOs & WiMAX operatorsSpectrum Availability & Regulatory IssuesInfrastructure Setup Cost - HighRapidly changing technologyLOW 2. TELECOMMUNICATION INDUSTRY LIFE CYCLEAIRTELTelecom Industry is in its mature growth stage.Significant achievements have happened in this sector.In 2009 February, there was a rise in subscriber base by 13.25 million.Total subscriber base was 375 million in 2009. A hike by 50%.This shows the changes in the consumption pattern among the middle class. 3. STRATEGIC GROUP ANALYSIS Competitor AnalysisBest OP Margins & Net Profit Margins among Peers Source: CMIE November 2008 AMOU & ARPU Stats Minutes of Usage per Month – Mobile Services Despite a low tele- density of approximately 30.5% India has the second highest minutes of usage per month. This offers huge growth opportunity to telecom companies. ARPU* in India – Mobile Services The declining ARPU implies that India Inc. is tapping a large market at the bottom of the pyramid by reducing tariffs; thereby, enhancing affordability. 4. Strategic Group Analysis PRODUCT RANGE Narrow Broad BSNL, MTNL 15.00 %Airtel 25%Vodafone 17%Reliance 18%10 %TATA 9.3%Other – 5%IDEA 9.6%VIRGIN - 0.5%NATIONALGLOBALGEOGRAPHICAL SCOPE 5. INTERAL ANALYSIS RESOURCE AUDIT AND PROCESS VALUE CHAIN 6. Ability to raise funds Physical Over 110 million customers Received license to provide 2G ad 3G in Sri Lanka First Telecom operator in India to offer MS Windows Mobile 5.0Strong Distribution channel. Intangible Strategic partnership with Google.Goodwill & Reputation Facility based Operator license in Singapore. 7. Firm infrastructure - CRM tools, MIS, ERP, Networking Equipment, Telecom equipment for coverage and signal strength, IT Infrastructure Supporting Activities HR management- IT skilled work force, Telecom engineers, SCM specialists Customer service & Telesales training, Franchisee management, 7,646 out of 23,789 employees in Mobile services, Owned retail staffing and training. MARGIN Technology development - Creating a 3G enabled network, mChek - Launching M commerce by tie ups with banks and credit cards. Procurement - Established a SCM network to acquire networking & Telecom tools, Maintain long term relation with suppliers to provide handsets & services v MARGIN Primary Activities 8. Primary Activities – Analysis Input Marketing & Sales Process Output Post Sale Network Infrastructure Nokia-Siemens, CISCO , INTEL Software and content provider IBM, INFY TCS, AFFLE, On Mobile, India Times, Hungama Mobile, Mauj , One 97 IMI MOBILE. Finance Licenses Strong Channel Distribution Market Innovators Trend SettersUnique advertising strategy – Emotional values & HumorGSM ServicesVASFixed LinesBroadbandPublicCorporateBusinessesSME’sInstitutesInfrastructure DevelopmentNetwork Integration Competitive Position Capable Supplier Start 9. Value Chain Analysis – Conclusions & Recommendations wide network coverage as they own their network infrastructure Inbound Logistics M-commerce Operations Aero mobile, MATE, GPS
  10. 10. tracking device for B2B Output Android platform based HTC mobile unique marketing strategy, low STD rates – Trend settersMarketing & PlanningValue Chain Outcome - 37% PMPost SaleBill payments and Indian rail tickets using m commerce 1.. SWOT SUMMATION OF EXTERNAL & INTERNAL ENVIRONMENT ANALYSIS AIRTEL Strength & Weakness STRENGTHS WEAKNESSES Valuable Business Partners – Techno & Financial Strong Brand Image First Mover Advantage Single Private Leading Indian Telecom Company Enthusiastic & Innovative Business Development team Marketing Driven Low Cost Model Blessed with Directional Visionary - S.N. Mittal Massive Economies of scale from large subscriber base Outsourcing of Core Systems Lagging behind in Exploring market Investment opportunity INTERNAL OPPORTUNITIES THREATS Tele-Density – 30.6% Low among Developing Countries Low Broadband Penetration Untapped Rural Market Bharti Infratel – Cutting Down cost in Rural area Growing Globally First Indian Sponsor to signed Manchester United Falling ARPU Intense Competition From Nearest Competitor Shortage of Band width New Players Entering Indian telecom sector Uncertain Economic Condition EXTERNAL AIRTEL ORGANISATIONAL PURPOSEAn evaluation matrix of the mission statement Concern for Employees Technology Philosophy Concern for survival, Growth Profitability Product / Services Self-Concept Concern for Public Image Customer Markets No No Yes Yes No Yes No Yes Yes Vision By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses Mission Statement “We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more” NEW PRODUCTS/ INITIATIVES During the year, the Company launched various new and innovative products and services, directly and through its subsidiaries, which enabled it to strengthen its leadership in an intensely competitive market. Some of the key launches of the year included: 3G Services in 9 of 13 circles with 3G spectrum, empowering all 3G customers to manage their data usage and avoid ‘bill shock’ with proactive, personalised and timely data usage alerts coupled with introduction of easy-to-understand intuitive tariffs with personalised data usage limits. airtel money - India’s first mobile wallet service by a telecom operator. It offers customers an efficient alternative to cash transactions, providing Airtel customers across the country with a convenient and secure way of making payments throughthe ubiquitous mobile platform anytime, anywhere! airtel call manager, a service that enables a customer to keep his/her callers informed (when he is in a meeting or driving and is not able to take calls) by choosing the meeting or the driving profiles. airtel voice blog, world’s first voice blogging service, enabling customers to share recorded voice updates with their followers – fans, friends or family. airtel world SIM for international travelers enabling outbound travellers to retain their local number while roaming internationally at a fraction of the cost, allowing customers to save upto 85 percent on international calls. Live Aarti on mobile, India’s first service on mobile offering daily live Pujas and Aartis directly from the shrines including Tirupati Balaji, Siddhivinayak, Shri Sai Baba from Shirdi and Bangla Sahib.
  11. 11. LearnNext an e-Learning website for the Company’s broadband users. It is a complete computer based interactive CBSE study module, for students studying in Class VI to X. IPTV services in Bangalore, the 2nd city after Delhi – NCR to get airtel IPTV services. airtel broadband TV, allows the broadband customers to watch live TV on their computers or laptops without having to buy an extra TV set or cable connection/set top box or an air antenna by simply subscribing to airtel broadband TV. Unified Service Management Centre (uSMC), to enhance the quality of customer experience and provide best in class services to the customers. Global Data Services in Thailand and Malaysia in association with TRUE International Gateway Co. and Telecom Malaysia respectively to serve the growing bandwidth demands of customers in the region. airtel digital TV recorder, an enhanced Set Top Box (STB) with capability to record live television, anytime, anywhere using mobile phone. After pioneering the initiative of recording television programmes through mobile, the recording facility was extended through internet for airtel digital TV recorder customers. it’s first High Definition (HD) box with Dolby digital plus offering 7.1 channels of surround sound for airtel digital TV customers. MAMO (My Airtel My Offer) is Africa's first marketing tool offering segmented and personalised offers to both active and inactive customers. A single number, '141' is being advertised inviting customers to listen to their customised offers with the option of fulfillment. The offers range from voice (local and international), SMS, VAS and data depending on customers' usage and activity. i-Care was deployed across all countries of operation – the objective of the programmes is to bring about a cultural transformation across the Company by putting the customer as the first priority and taking personal ownership to resume customer issues. OTHER COMPANY DEVELOPMENTS acquisition of Zain Group’s (“Zain”) mobile operations in 15 countries across Africa in June 2010 and Telecom Seychelles Limited, a leading telecom operator in Seychelles in August African footprint to 16 countries and its overall presence to 19 countries, thus becoming the first Indian brand to go truly global with a footprint covering over 1.8 Bn people. Asia ‘By 2015, airtel will be the most loved brand, enriching the lives of millions’ inspiring and directing all stakeholders for the next stage of growth. Africa “By 2015 airtel will be the most loved brand in the daily lives of African people”. AWARDS AND RECOGNITIONS The Company was conferred with many awards and recognitions during the year. Some of them are listed below: was awarded two Global Mobile awards – 'Best Mobile Money Product or Solution' and 'Best Customer Care and Customer Relationship Management (CRM)' by, including ‘Most Admired TelecomOperator’, ‘Best National Mobile Operator’, ‘Best VAS Provider’, ‘Best Enterprise Services Provider’ and ‘Operator with Best Rural Performance’ ‘Customer experience Enhancement’ and ‘Innovative VAS Product’. ‘Most Preferred Cellular Service Provider Brand’ award in the CNBC Awaaz Consumer Awards 2010 for the 6th year in a row. ‘Top Telecom Company’ 4th year in a row by NDTV Profit Business Leadership Awards 2010. CIO 100 Award’ instituted by CIO magazine for innovative practices at the Annual CIO 100 Awards.Four awards at the Annual Voice & Data Telecom Awards 2010 - 'Top Cellular Service Provider', 'Top Telecom Service Provider' and 'Top NLD & VSAT Service Provider'.
  12. 12. NIRMA About the Company Nirma is the Rs.17 billion Detergents, Soaps and Personal Care Products Brand, a market leader in the Indian detergent market and second largest in bathing soaps... the brand NIRMA being one of the world's biggest in it's segment... a result of it's mission to provide 'Better Products, Better Value, Better Living'. The man who altered the clothes-washing habits of the Karsanbhai Patel the chairman of the Ahmadabad-based Nirma Ltd. This chemist who manufactured detergents at home in Ahmadabad in 1969 has certainly come a long way. He worked from his backyard which developed into a soap factory, cycled to retail outlets and hawked his brand at one-fourth of the price of similar products then available. At Rs 6, Nirma, named after his daughter, was the cheapest detergent vying for attention on shop shelves. By the late 1980s, Nirma had become one of the world's largest-selling detergent powders. That he rewrote history and gave Hindustan Lever, the Indian subsidiary of the Anglo-Dutch foods and toiletries conglomerate Unilever, a huge headache is well-chronicled. Today he is proud owner of an Rs 2,500-crore Ahmadabad-based soaps and detergents major It has been Patel's dream to make Nirma a synonym for quality. "Nirma is not merely a brand or a product, it is a dynamic phenomenon, a revolution, a philosophy," he once said. Nirma sells over 800,000 tones of detergent products every year and commands a 35% share of the Indian detergent market, making it one of the world’s biggest detergent brands. Towards this end, he tried his hand at many brand extensions. From toothpaste to salt and matchsticks, they all nestled under the Nirma umbrella. Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma is an over Rs. 17 billion brand with a leadership presence in Detergents, Soaps and Personal Care Products, offering employment to over 15,000 people. In fiscal 1997, the Nirma group restructured operations and merged four companies – Nilinta Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents – with its flagship Nirma Ltd. Products are marketed through a 100-per cent subsidiary, Nirma Consumer Care. Nirma has undertaken backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid. Today, Nirma sells over 800000 tones of detergent products annually, giving it a 35% share of the Indian market, which are the world’s second largest fabric wash products markets. This makes Nirma India's largest detergent marketer and one of the world's biggest detergent brands. The Company has acquired Kisan Industries Limited situated at Village Morays, Dist. Ahmadabad as a going concern, which was engaged in the business of manufacture of detergents, Single Super Phosphate, fertilizer and printing and packaging. The second stream of the 420000 tpa Soda Ash plant at village Kalatalav, Bhavnagar was commissioned in September 2000. The Company also set up a pure water plant to manufacture 2.80 lacs TPA Vacuum-salt in October 2000.Debottlenecking process which was made during 2001-02 by the
  13. 13. company resulted in expansion of installed capacity of Soda Ash at Village Kalatalav, from 420000 TPA to 650000 TPA. The total cost of the project is approximately Rs.110 cores. This project is expected to be completed in September, 2002. The company issued Secured NCD aggregating Rs.360 cores in order to augment its working capital and also to bring-in cost affiance in funding cost In detergents market Nirma and Hindustan Lever are close competitors with 38% market share each. Nirma leads the popular segment, while HLL leads the premium detergent powder segment. P&G and Henkel Spic are the other key competitors in the detergent market. In toilet soaps, HLL has a dominating 63% market share. Nirma has also garnered a significant 22% market share in a short time. Other major players in the segment are Godrej Soaps and P&G. Bathing Soaps Nirma Bath Soap (Carbolic): Toilet soap market was dominated by few MNC's who could monopolistically drive the prices. The growth of toilet soap market was tremendous in 90's and was expected to increase further. Nirma's brand equity in detergent market was very strong and was unanimously associated with value for money products. We saw no reason why cannot this be extended to the personal care market. Nirma ventured into this market with Nirma Bath a carbolic soap to counter the largest selling soap from a MNC stable. The carbolic soap segment though a declining market saw a sudden burst of activity. Nirma Bath started gaining substantial volumes at the cost of he competitor's and India's largest selling brand. The pricing of the product was penetrative at a quality (TFM - 60%) which the competitor's could not match. The product is available in 75 grams and 150 grams pack sizes. Nirma Beauty Soap: After targeting the largest selling toilet soap with Nirma Bath, now was the time to target the second largest selling toilet soap. Nirma after successful launch of Nirma Bath launched, Nirma Beauty. Nirma Beauty was a popular category soap which targeted the middle and lower middle class population of the country. The product had high TFM content of 70%, an excellent aroma and an advertisement with a touch of aspiration. The product became an instant success, and in no time became India's third largest selling toilet soap brand. The volumes came from the category shift as well as brand switching. The product is available in 100 grams and 150 grams pack sizes and three different perfume variants. Recently company has changed its packaging and made it more contemporary by printing the wrappers on six color Cerruti machine from Italy thereby differentiating it from the me too look alike'. The brand today is growing very fast and is firmly moving towards the second position. Competitors tried to copy the concept and the commercial but were not able to match the success of the brand. As it is said you cannot fool consumers when it comes to quality Nirma Premium Soap: For the first time in the history of FMCG there was an attempt to extend the value for money proposition to the premium segment. The concept was innovated by none other than Nirma. Nirma launched Nirma Premium Soap during 1996 in the premium soap category with 80% TFM, mild fragrance, three variants and a touch of class in its advertising. The brand targeted to match the changing Nirma consumer's profile in terms of aspiration, quality consciousness and image perception. The brand has started picking up volumes in the premium soap market which is characterized by large number of brands and cut throat
  14. 14. competition. Nirma Premium has been able to differentiate itself in this cluttered market its unique packaging and exclusive advertisement. Nirma Lime Fresh was launched in 1997 with absolutely no advertising support. The lime segment of the toilet soap market was growing at a sedate rate, prior to the launch of Nirma Lime Fresh. Launch of Nirma Lime Fresh saw the volumes of the segment grow at more than 10%. During the first year of the launch Nirma Lime Fresh over took the largest selling brand in the lime segment. The product is priced competitively with 80% TFM content and strong tingling lime fragrance. The commercial was aired during the later part of the year which saw the volume grow rapidly. The commercial shot at Maldives and Switzerland with a new and young face was equally liked by consumers. The successful launch was termed as the seventh best launch of the year 1997-98 by Business Standard. There in no looking back and today Nirma Lime Fresh is the undisputed market leader in the lime segment and is giving shivers to the competition. The product is available in 75 grams and 150 grams. Nima Rose: The remarkable and phenomenal market response received by Nima Rose soap within just two months of its launch has once again proved the merits of Nirma's commitment towards its consumers. Nima Rose soap has got an exceptionally fine perfume of rose that lingers around your body for a long time even after you bath. Due to high TFM (Totally Fatty Matter) content, it provides one of the nicest baths. This brand has already carved niche in its particular segment by achieving leadership position just within tow months of its launch. Nima Lime, the first product in the Nima range of products has a very high TFM content and was introduced in Q2 - ' 98 when the astounding success of Nirma Lime Fresh Soap prompted competition to launch lime variants in the same price segments. Nirma is committed to the concept of umbrella branding. We have reaped benefits of this strategy right from our inception till date. In the past, we have faced umpteen numbers of situations where the competition introduces special campaigns to draw away the consumer's attention from our core brands like Nirma Detergent Powder, Super Nirma Detergent Cake, Nirma Beauty Soap, Nirma Lime Fresh Soap, etc. The purpose was to lure away consumer attention from Nirma Lime Fresh Soap by temporarily modifying the product. We, at this point of time introduced a 'fighter brand' called Nima Lime to provide at shield to our core brand - in this case 'Nirma Lime Fresh Soap'. The success of Nima Lime has been the cornerstone in Nima brand growing into a full fledged business Nima Sandal: This soap was launched in Q2 - '99. Over a period of time, the Indian toilet soap market has fragmented and has seen the emergence of prominent segments such as Sandal, Rose, Jasmine, Body moisturizing soaps, Herbal etc. Nima Sandal is Nirma's offering in the ethnic sandal segment. With a rich and exotic perfume and 80% TFM content, this toilet soap is available in a 100 gram packing. Nima Sandal is promoted by a TV commercial shot at exotic locales depicting the form of 21st Century Indian woman. Early market indication promises this brand to be the future no.1 in this segment. OTHER PRODUCTS: 1. Hair care a. Nirma Beauty Shampoo b. Nirma Shikakai
  15. 15. 2. Toothpaste a. Nirma Toothpaste 3. Iodized Nirma Free Flow Salt Thus it is a well known fact that Nirma’s best Unique Selling Proposition is Price The result of there cost effective product offering is that though the industry has been growing at the rate of 15 per cent annually, Nirma’s growth has been at least 30-35 per cent a year for the last few years. Nirma has been successful in keeping its prices at such affordable levels primarily due to their strategy of backward integration projects. These projects had been undertaken with a strategy to become the lowest cost detergent manufacturer in the world. Self sufficiency in key raw materials will give protection against commodity cycles besides yielding substantial savings in raw material cost. The company estimates a total cost saving of 25% in material and handling costs due to the backward integration projects. The LAB plant has yielded about 12% cost savings and the company expects a similar cost saving of about 12-15% once the soda ash plant stabilizes. Overall the backward integration has yielded a cost saving of Rs0.8-1bn last year. Post completion of backward integration the company now plans to focus on building large volumes and gain from economies of scale. Till 1985 the Nirma ingredients were simply mixed by hand thus requiring neither machinery nor capital investment. Due to the scale of his product and the simple non- mechanized production process, Nirma gained a number of tax and excise benefits for not using electricity. Since Nirma was a small-scale local venture, they did not have to pay excise duties that were levied on multinationals. Another area where Nirma saved millions was in labor costs. Being a cottage industry Nirma was not compelled to abide by minimum wage rules. To maintain low costs Karsanbhai used contract workers who were paid Rs. 85 per ton (In 1985 $1 U.S = Indian Rupee 12.368)1 for mixing raw materials and then bagging them into 1000 bags of 1 kg each. Payment was made according to work done and since labor was not permanent no additional overhead for benefits etc. needed to be paid. It was not until the mid 80’s that Nirma started to mechanize their production process, however by then they were an already well-established name. In 1989 Nirma’s labor costs for 8000 workers was estimated to be between Rs 15-20 per person day in comparison to HLL who paid their semi-skilled workers approximately Rs 30-40 per person day. (In 1989 $1 U.S = Indian Rupee 16.225)2 SUPPLY CHAIN OF NIRMA: Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the umbrella brands “NIRMA” and “NIMA” along with extensions. The distribution strength of Nirma is based on mutually rewarding and satisfying relationship.
  16. 16. Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. The NIRMA brand is marketed through the first network, which consists of about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country. Principal Channel [Nirma Products]:  Lowest Cost system in India  Speed in distribution  Flexibility The NIMA range of products is marketed through a parallel marketing network that comprises of more than 2000 distributors. Chanel partner- Nirma Limited markets its products through its fully owned subsidiary Nirma Consumer Care Limited (NCCL), which was incepted in 1985. NCCL in turn resells these products in the market under the umbrella brands “NIRMA” and “NIMA” along with extensions. The distribution strength of Nirma is based on mutually rewarding and satisfying relationship. Nirma pioneered the concept of flat distribution network. Nirma Consumer Care Limited operates with two parallel distribution networks. The NIRMA brand is marketed through the first network, which consists of about 450 exclusive distributors. It is one of the lowest cost FMCG distribution channels of the country. NIRMA is best detergent company in India. Its product quality is also very good. But compare to other company nirma’s marketing is lower then other. If Nirma improve his marketing quality. So he improves his sale in Indian market. Because “jo dikta hai wo bikta hai”.  Doing market survey. And justify the costumer.  Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.  Should put in more efforts to promote the Nirma product.  Improve the marketing strategy.
  17. 17. History of McDonald’s corporation. Since its incorporation in 1955,McDonald’s corporation has not only become the world largest quick-service restaurant organization, but has literally changed American’s eating habits and increasingly the habits if non-Americans as well. On an average day, more than 46 million people eat at one of the company’s more than 31,000 restaurant,which are located in 119 countries on six continents. About 9,000 of the restaurant are company owned and operated;the remainder is run either by franchisees or through joint venture with local business people. Early History In 1954 Ray Kroc, a seller of Multimixer milkshake machines, learned that brothers Richard and Maurice (Dick and Mac of was piqued his high tech Multimixers)McDonald’s were using Bernardino, California eight in their San and he went to San to take a look at the McDonald’s restaurant. McDonald’s INDIA SUPPLY CHAIN These strategies determine what is to be made and what is to be McDonalds follow these strategies and have just –in –time inventory system. Which means that the orders are placed as the raw material comes to near finished. McDonalds maintain no inventory level for published goods. They Are:-  Dynamic Dairy Industries(Supplier of cheese & butter)  Trikaya Agriculture (Supplier of iceberg lettuce)  Vista Processed Food pvt. Ltd (Supplier of chicken and vegetable range of product including Fruits pies)  Radhakrishna Foodland (Distribution center’s for Delhi Ad Mumbai)  Amrit Food (Supplier of long life UHT Milk Product for Frozen Desserts’)
  18. 18. We are making a delivery schedule in a daily basis, and following some the circumstances. They Are:-  Deliver Steps.  Storage  Fried product  Cooking  Primary holding Secondary holding  Wastage  Refrozen product Marketing Strategy In the field of marketing, once a business is finally able to adequately profile its customers and competitors, along with its competitiveness in a particular industry, marketing managers can design marketing strategies that are important in capitalizing on company profits and resources. Important strategic decisions in marketing are grounded on specific objectives such as that of maximizing revenue, market share, and level of profitability. Types of Marketing The concept of marketing encompasses a wide coverage and may even be associated with sales. In fact, sales and marketing are two different concepts although both are closely coordinated. Marketing is the presentation of the products and services and making them available to the customers with the goal of generating profits Offline Marketing The advent of modern marketing has been very helpful for most business, but traditional marketing is still as effective and powerful as it used to be. Not to be overlooked in this age of computers and internet technology, offline marketing is still widely used by many businesses. Online Marketing Online marketing is equally powerful and effective as offline marketing. In fact, companies save a lot on their marketing campaigns which are done through the internet. Small-scale businesses can benefit greatly from online advertising if marketing budget is an issue. Word of Mouth Advertisement Word-of-mouth marketing is probably the best form of advertisement a company can ever invest in. Not a single penny is spent by the company with this kind of advertising; only excellent customer satisfaction is needed to make this campaign effective. Always keep a proactive approach in dealing with customers and go the extra mile. Building good relationships with customers keeps them in the business. The good
  19. 19. news is they will tell their friends and people they know about Yhr Company and the kind of customer service they have. With an effortless process, the customers gradually increase in number which in turn increases company profit. McDonalds Marketing Mix 5Ps Strategy After analyzing the market, finding the key factor, target segment and understanding the market demand, every company needs to come up with offers or such type of plan, that speed up the growth of the company. For which McDonalds uses 5Ps of marketing which are as follows: 1. Product 2. Place 3. Price 4. Promotion 5. People PRODUCT Product includes, that how the company should design, manufacture the product so that it enhance the customer experience? Product is the physical product or services offered by the company to its customers. McDonalds include certain aspects of its product such as packaging, desirability, looks etc. This consists of both tangible and non-tangible aspects of the product and services. McDonalds has purposely kept its product depth and product width limited. McDonalds had first studied the behavior of Indian customer and provided a totally different menu offered in international market. It removed pork, beef and mutton burgers from the menu. Even the sauces and cheese used in India are 100% vegetarian as most consumers in India are primarily vegetarians. McDonalds continuously innovates the product according to the changing preferences and taste of the customers and also care is taken not to adversely affect the sales of one choice by introducing a new choice. The recent introduction is the Mc African piri-piri French fries, McEgg etc. McDonalds bring best product of quality and of best features as per the preference and demand of the target market. PLACE Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer at the right place, right time and in the right quantity. McDonald’s outlets are very evenly spread throughout the cities making them very accessible. It offers proper hygienic atmosphere, good ambience and better services. Drive in and drive through options make McDonald’s products further convenient to the consumers.
  20. 20. PRICE Pricing strategy is most important aspect of market mix. The customer’s perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity. In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). McDonalds came up with a very grasping punch line “Aapkezamanemein, baapkezamanekedaam”. This pricing strategy was founded to attract middle and lower class people and the effect can be clearly seen in the consumer base that McDonalds has now. McDonalds has certain value pricing and bundling strategy such as happy meal, combo meal, family meal, happy price menu etc to increase overall sales of the product. PROMOTION The promotional activities adopted by the McDonald helps to communicate efficiently with the target customers. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. Some of the most famous marketing campaigns of McDonalds are: “You deserve a break today so get up and get away-to McDonalds” “Foods, folks and fun” “I’m loving it” At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. McDonalds corporate used advertising, personal selling, sales promotion, public relation, and direct marketing and became world’s largest leading Burger Empire. These five promotion tools are used by McDonalds to integrate marketing communication program which allows McDonalds to access the communication channel clearly, consistently and easily transfer messages and product to target audiences. PEOPLE McDonalds understand the importance of both its employees and customers. It understands the fact that a happy employee can serve well and result in a happy customer. McDonald continuously does internal marketing because if it is effective it will automatically lead to in the success of external marketing.
  21. 21. Strength: Strong brand Product innovation Supplier integration Excellent supply chain management Weakness: Low depth and width of product High employee turnover rate MARKET PENETRATION STRATEGY Market penetration occurs when a company enters /penetrates a market with current products. The best way to achieve this is by gaining competitors customers. Other ways include attracting non-user of your product and convincing current clients to use more of your product/service. Market penetration occurs when the product and market already exist in the market. McDonalds is one most popular brand in fast food in entire world. MARKET DEVELOPMENT STRATEGY The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments. McDonalds is currently following above mentioned strategy, to focus on market segments. For serving synonymously to the existing customers they are coming up with different menus as per change in taste and preference of their customer e.g.: happy price menu, beverages including milk shakes and cold coffees etc. Also, by keeping in mind their rivals they are introducing products to compete them e.g. to answer the KFC they came up with Chicken McNugget’s. They are adopting pricing policies for non-buying customer and as well as new segments. PRODUCT DEVELOPMENT STRATEGY In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detai2l engineering; the other involves market research and marketing analysis.
  22. 22. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share.McDonald's is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be crucial business development strategy for firms to stay competitive. McDonalds are always enhancing their existing product along with it; they also try to introduce new products so that they can easily survive in market. For e.g. McEgg, Fish-o-tella. the marketing mix plays a key role in business, and is often the determining factor in the extent to which a given organization succeeds or fails. An organization can only exist if it has customers, and the marketing dimension of business develops that customer relationship. As a result, all organizations should focus on developing an effective marketing mix that distinguishes the organization’s services from other competitors, and attracts customers. Considering the changing needs of society, an effective marketing mix that includes mechanisms of feedback, evaluation, updating and constant improvement, such as that developed by McDonald’s, will benefit both the organization and society.