QUESTION -3 Do you think Bharti has not been giving enough time for one positioning plank to prove effective before moving on to the next? What are the merits and demerits of frequently changing a brand’s positioning?
POSITIONING STRATEGY ANALYSIS Rationale In telecom industry people live a brand 24X7 so the possibilities of being tired by a continuous campaign is very high Brand restructuring helps the company to broaden its customer base by reaching more people and offering new servicesSuccess Airtel is the most recognizable brand in Indian operator space, with 30.8% of respondents able to identify it as a mobile brand unaided A member of Forbes ‘Asian Fabulous 50’ Of 10 million new subscriber sign up every month one in every 4 sign up with Airtel, not only to make calls but also to access the Web, download cricket scores and send billions of
Cont….During 2004-2005 its increased itsmarket share from 20.5% to21.5%
QUESTION-4 In the light of intensifying competition in the Indian cellular telephony market and the fact that almost all players have began focusing on the marketing front, what should Bharti do to ensure that it retains its market leadership position.
RecommendationsStrategic In 2003 ,Airtel changed its tagline once again and the new tagline is ‘Express Yourself’. This dynamism should be maintained in future to build a more comprehensive and stronger brand. More focus on emotional angle to differentiate the brand Airtel was the first cellular service provider to start customer centers ( Airtel connects), thus setting a trend of effective and responsive CRM system & it should be maintained. Innovative and low priced schemes for attracting mass
CONT…. Low-priced and Youth oriented schemes (e.g. Campus pack, Student pack) are to be implemented more effectively. Keeping the competition low by strategic alliances and acquisitions. Aggressive rural market penetration using infrastructure and by implementing innovative & focused schemes. Promotion in regional languages to tap rural market.
Cont….Technical Widening of the network coverage area Increasing quality of service & interconnectivity Innovative VAS such as e-recharge, recharge using SMS Advanced technology introduction such as 3G,Mcommerce (e.g. m-check, ATM recharge) Promotion of Blackberry and other business customer oriented services Better use of internet and transforming it into a direct communication channel
QUESTION-1 Examine the circumstances in which Bharti launched Airtel and trace the brands initial days in the backdrop of emerging cellular market in India. In the light of ‘Leadership’ campaign, analyze why Airtel & other cell phone brands were seen as premium end offerings.
INITIAL DAYS Sunil Bharti Mittal laid the foundations of the New Delhi based Bharti group in 1970s with a small bicycle part business. 1985 Bharti group entered the telecom business by establishing Bharti Telecom Ltd. and entered into technical collaboration with Siemens AG Germany for manufacturing electronic pushbutton telephones. Launched cellular service in Delhi in 1992, started offering post-paid service from Nov,1995. Started offering VAS such as Smart mail, Fax, Call hold, Call waiting etc. and e-commerce portals to facilitate consumers.
Premium end offerings and‘LEADERSHIP CAMPAIGN’ In the initial days due to high tariff rates cellular players had to impose high call charges on their customers and the handsets were costly. Naturally, they targeted the elite, up market professionals and entrepreneurs as customers . Airtel was positioned as an aspirational and lifestyle brand . It was pitched not merely as a mobile service, but as something that gave consumer a badge value. The Brand was developed to connote leadership in network, innovations, offerings and services. The taglines like "Airtel celebrates the spirit of leadership" and "The first choice of the corporate leaders" emphasized that stance. The ‘Leadership’ campaign was reportedly successful and resulted in a marginal improvement in Airtel performance.