this is the project on airtel.....which is done by the students of alliance university bangalore.......its really nice and go through this and have a good day....its simple and awesome

3.  Telecommunications services were introduced in the 1990’s
 Only post paid services were available
 The two major players in the industry were Bharti and Essar (Monopoly)
 The rates were high at about Rs. 16 per minute
 Indians were used to paying lesser amounts for landline phones (Rs. 1.20 for 3
minutes)
 The cellular services market has limited growth because of many factors such as ...
High Tariff rates
Only found in the Metros
Low standard of living
 Because of the high tariff rate’s, mobiles and post paid services were only targeted
to the high class society
BACKGROUND INFORMATION

4. THE PRE-PAID LAUNCH
• PRE-PAID SIMS LAUNCHED IN THE LATE 1990’S
• IT GAINED POPULARITY FAST
• THE MAIN AIM OF THIS LAUNCH WAS SO THAT
COMPANIES CAN TARGET ALL SECTIONS OF
SOCIETY AND NOT JUST THE UPPER CLASS
• THE TARIFF RATES DECREASED BY 75% BETWEEN
LATE 1990’S AND EARLY 2000’S
• BY OCTOBER 2002 THERE WERE 8.5 MILLION CELL
PHONE USERS AND 65 % OF THAT BELONGED TO
PRE-PAID USERS

5. AIRTEL MAGIC WAS
BORN

6. AIRTEL MAGIC
Bharati launched its own
prepaid cellular service
under magic brand in Jan
1999
Magic targeted the
infrequent mobile users
First launched in Delhi and
later in other circles in India
Made more accessible with magic
made available at Departmental
stores, gifts shop, telephone booths,
Kirana stores etc
So getting a Magic connection was
easy

7. 
 Because of the pre-paid cards, there has been huge growth in
the cellular market
 The base increased from 3.5 million in 2001 to 6.4 million in
2002
 Telecom circles projected an estimated growth rate of
Rajastan 179%
Harayana 151%
Kerala 151%
Analysts estimated that the number of subscribers in 2004
would reach 25 million as compared to 4.5 million in 2002
The cellular market

8. Power of Suppliers
• Low power
• Airtel can change
suppliers
Power of customers
• High bargain power
because of high
competition
• Low switching costs
• Low differentiation
among providers
Competitive Rivalry
• Intense competition
• Many service
providers with more
or less same schemes
• Hutch, BSNL, Spice
etc…
Threat of subtitutes
• Fixed line telephone
- BSNL
• Internet
• CDMA providers
Threat of new entrants
• High because
barriers of entry are
low
• Low specialist
knowledge required
• Increased
attractiveness of
market

9. 
 Now that the cellular market was targeted at all
sections of society, it had huge potential for growth
and innovation.
 The huge growth of this market for pre-paid SIM’s
has attracted many new entrants
 Therefore AIRTEL thought it would be best to
revamp their marketing strategy
Huge Potential

10. How did Airtel revamp?
It changed
to
It changed the logo hoping that the new
logo would look more energetic and friendlier
for the target audience

11.  The new strategy was aimed at attracting even non-interested customers by
appealing to their needs and requirements
 Magic was positioned as a friendly, mass-market brand.
 Magic targeted the youth and stood for simplicity and attitude that said, 'anything is
possible.‘ (Target customers)
 Bharti then focused on extending its distribution base in all the circles in which it
operated and therefore, ensured the availability of Magic cards in the remotest parts
of its operating circles. By late 2002, the states of Kerala and A.P. had 2000 and
4,500 stores respectively.
Continued…

12. 
 AIRTEL MAGIC introduced some new features such as :
Door step delivery
Tie-up with ICICI Bank
Launched regional roaming networks in Aisa
Balance on screen
Balance on demand
 Flexible pricing – the tariff rates at night
were cheaper than the ones during the
day.
Continued…

13. 
Celebrity
Endorsements

14. 
“Magic is a youth brand, and all these celebrities
depict exuberance and confidence to succeed,
which are in synergy with the core values of the
product.” PH RAO, MD
Saurav Ganguly and
movie stars Madhavan
and Kareena Kapoor were
signed as the endorsers of
Airtel Magic
Objective was to cash upon the two biggest
passions of Indian masses-Movies &
Cricket

15. 
 Since many new entrants come into the industry
after the launch of the prepaid Airtel Magic tried to
promote the brand and retain its customers by
conducting many contests for its subscribers through
SMS.
 Magic was reportedly very popular with customers
(especially the youth) who appreciated the (ease of
operation, affordability and ready availability) brand
offered.
Competition

16. 
 To gain success from their marketing revamp they
brought magic under their umbrella brand
“AIRTEL”.
 This created positive images in the mind of the
customers, as AIRTEL was one of the first players in
the industry and has a customer following.
 Airtel Magic also changed its tag lines many times to
try and emotionally connect with its target audience.
Success Factor

17. PEST ANALYSIS
Political factors
• The Indian political scenario and regulations from TRAI are the most
significant aspects which would affect airtel
• Mobile number portability implementation would enable subscribers to move
to different service providers which have better coverage, retaining there
original number
• In India legal obligations are defined regarding 3G auction and bidding,
which proves to be in favour of airtel as this auction is not available to new
entrants

18. ECONOMIC
• Airtel enjoys a very large consumer base in India and Africa, expanding
more into rural market will provide airtel with more such opportunities to
increase revenue and market share
• The telecom sector is one of the major sector which provide direct
employment which indirectly helps in economic growth of India.
• This sector accounts for 1% of India's GDP, approximately 30% of the
service tax revenue is contributed by telecom sector

19. SOCIAL FACTORS
• Airtel has been very successful in branding it self
“A brand for successful people ”
• It has constantly come up with advertising campaigns which
emotionally affect the Indian consumers
Example-the “express yourself” and “har ek friend zaroori h0ta hai”
• Cost factor is also a major concern to customers for example calling
rate, roaming facility, tec.

20. TECHNOLOGICAL FACTOR
• Airtel is the first telephone company to outsource everything except
marketing, sales and financial operation. airtel outsourced their IT processes
to IBM, entire network operations to Ericesson and Siemens along with
Alcatel Lucent recently and the transmission tower to another company
• Airtel has high-speed optic fibre network. This network presently spans
126,357 kms all over India. It’s international network infrastructure include
ownership of the i2i submarine cable system and consortium ownership in
five global undersea cable system
• It is also the first to introduce 4g speed in India

21. OUR RECOMMENDATIONS
• INCREASE IN VISIBILITY AND COVERAGE
• NEW TARIFF PLANS
• IMPROVED AND INNOVATIVE SERVICE PACKAGES
• FOCUS MORE ON COST REDUCTION (AGGRESSIVE
ADVERTISING)
• COME UP WITH BETTER MORE INNOVATIVE TVC THAT CAN
RUN FOR A LONG TIME
• WIDENING THE NETWORK COVERING AREA

22. THANK YOU