The pdf is brief analysis on Strategies used by Airtel.
Contains PESTLE Analysis, SWOT Analysis, VRIO Analysis of Airtel. A brief about Telecom Industry and Corporate structure of Airtel.
The pdf is brief analysis on Strategies used by Airtel.
Contains PESTLE Analysis, SWOT Analysis, VRIO Analysis of Airtel. A brief about Telecom Industry and Corporate structure of Airtel.
Company Report of Airtel. This report consist of Marketing strategies of Airtel, Organizational structure, HR management strategies at Airtel, corporate governance at airtel, SWOT analysis of Airtel.
Company Report of Airtel. This report consist of Marketing strategies of Airtel, Organizational structure, HR management strategies at Airtel, corporate governance at airtel, SWOT analysis of Airtel.
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this is the analysis done by me on telecom sector. in this there is the objective of survey, its introduction and to make it more clear i have taken the example of airtel company and with this example i have explained everything.
this assignment is generally prepared to analyse the strategic analysis on telecom industries and in this the example has been taken for Airtel Telecom Sector and its analysis has been done.
This INTEGRATED MARKETING COMMUNICATION report contain befit analysis of Advertisement and promotion activity of airtel last three years.
If you like my report please sent me feed back on
Email: gondaliya.mehul101@gmail.com
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Marketing plan on airtel
1. MARKETING PLAN
1) Executive summary
2) The challenge - A brief description of the
product & associated goals such as sales figures
& strategic goals
3) Situation analysis:
4) Company analysis
5) Competitor analysis
6) Collaborators
7) PEST analysis
8) SWOT analysis
9) Market segmentation
10) Selected marketing strategy – 4Ps
11) Short & Long term projections
12) Conclusion
13) Exhibits
2. 1. Executive summary
The main objective of the study was to know how the marketing plan by Airtel
.what is the position among the competitors in the market, strategies, mission,
vision, swot analysis, PEST analysis, market segment, challenges and
conclusion.
2. Challenges
About Product
The company is a part of Bharti Enterprises, and is India's leading provider of telecommunications
services. The businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services.
Themobile services group provides GSM mobile services across India in 23telecom circles, while the
B&T business group provides broadband &telephone services in 90 cities. The Enterprise services
group has two sub-units - carriers (long distance services) and services to corporates. All
theseservices are provided under the Airtel brand. Our Services:
Voice Services
Mobile Services
Satellite Services
Managed Data and Internet Services
Managed e-Data Services
Goals
Airtel would strive to conduct its business in a manner that reflects its vision and brand essence. As
the sourcing base expands, airtel will only do business with partners who are committed to a long
term relationship focusing on mutual growth and trust. All Partners are responsible for making sure
that airtel's vision and brand essence is adhered to when subcontracting any portion of their
obligations. Partners are individually responsible for ensuring that their employees understand
airtel's vision and brand essence.
Sales figures
Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
12 Months 12 Months 12 Months 12 Months 12 Months
INCOME:
Sales Turnover 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61
Excise Duty 0.00 0.00 0.00 0.00 0.00
NET SALES 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61
3. 3. Situation analysis
The first mover in the market was Airtel which launched its services in Delhi in Aug 1995
(Informal launch). Essar Cell phone followed by launching its services informally in Oct 95. At
this point of time, the market was at an ascent stage, awareness level was low and both
operators independently tried to spread awareness and educate the people. Once the
networks were commercially launched, it became a number game with a multitude of
schemes being offered to woo customers Initially the cell phone was perceived as a status
symbol and utility took a back seat The target segment in Delhi were corporate and the high
income group. The average capacity installed was for 1.5 lakh subscribers. This coupled with
the steep license fee paid to DOT put pressure on the operators to break-even by rapidly
expanding their markets. In the first two years, this led to a number of schemes being
offered and prices crashing
4. Company analysis
Airtel was started by Mr.Sunil Bharti Mittal, a graduate from Ludhiana (PUNJAB).earlier he
was owner of local telecom company Beetle. Afterwards he planned to expand his company
at national level and theconsequence is Airtel, what we see today. Bharti Airtel is India’s
largest telecommunications company bysubscriber base, which stood at 85.7 million in
December 2008, and total revenues, which were Rs.270 billion in 2007/08.Airtel is one of
Asia’s leading providers of telecommunication services with presence in all the 22 licensed
jurisdictions (also known as Telecom Circles) in India, and in Srilanka. It served an aggregate
of 96,649,487customers as of March 31, 2009; of whom 93,923,248 subscribe to GSM
services and 2,726,239 useTelemedia Services either for voice and/or broadband access
delivered through DSL. It is the largest wirelessservice provider in the country, based on the
number of subscribers as of March 31, 2009. It also offered anintegrated suite of telecom
solutions to our enterprise customers, in addition to providing long distanceconnectivity
both nationally and internationally. It had recently forayed into media by launching our DTH
andIPTV Services. All these services are rendered under a unified brand Airtel. The Company
also deploys, owns and manages passive infrastructure pertaining to telecom operations
under its subsidiary Bharti Infracted Limited. Bharti Infratel owns 42% of Indus Towers
Limited. Bharti ingrate and Indus Towers are the two top providers of passive infrastructure
services in India. Sunil Bharti Mittal, the founder – chairman of Bharti Enterprises (who owns
Airtel), is today, the most famousface of the telecom sector in India. He symbolizes the
adage that success comes to those who dream big andthen worked assiduously to deliver it.
His strong entrepreneurial instincts gave him a unique flair for sensingnew business
opportunities. In the early years, Bharti established itself as a supplier of basic telecom
equipment. His true calling came in the mid-1990s when thegovernment opened up the
sector and allowed private players to provide telecom services. Telecom giant Bharti Airtel is
the flagship company of Bharti Enterprises. The Bharti Group has a diverse business
portfolio and has created global brands in the telecommunication sector. Bharti has recently
for aye into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash
& carry business. It hassuccessfully launched an international venture with EL Rothschild
Group to export fresh agri productsexclusively to markets in Europe and USA and has
launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management
4. 5. Competitor analysis
Airtel launched its services before Essar and skimmed the market picking up the bulk of the
high usage premium clients. This is a very competitive industry with the two companies
differentiating either on value-added services or price. Airtel is perceived as the high-quality
provider and has a premium image. Essar, on the other hand, is perceived as the lower end
service provider. Airtel positions itself as the market leader on the basis of the number of
subscribers. Essar is trying to counter this by emphasising on the reach of its network and
the quality of its service. However, Essar is somewhat not been very successful largely due
to the inconsistency in advertising. To promote themselves, both the players have been
dependent on tactical advertising However, they have restrained from using comparative
advertising Hoardings have been a very popular medium for carrying the advertisements
Airtel has also been advertising on television using the Bharti Telecom name.
6. Collaborators
Bharti Airtel has embarked on a restructuring exercise that will merge three separate
businesses, triggering a large-scale job cull for the first time in the services sector since the
2008 economic slowdown.
Under this exercise, Bharti Airtel plans to merge its mobile, satellite TV (DTH), and fixed-line
& broadband telemedia business, which jointly account for about 90% of the company's
revenues and the vast majority of its workforce, into a single entity.
7. PEST
Political
Regulation
Political opposition to particular by the private players
Government support to promote FDI in telecom sector
Banning of phone use in certain circumstance
Technology
Equipped with new technology
Rapid industrial growth rate induced by emerging technologies.
Strong fibre optic network
Utilization of E-commerce facilities
Efficient customer care service
Economic
Cost of calls being driven down
Worldwide recession both boon & bane
Middle class consumer base growing due to accelerated economic growth
Untapped market is emerging economy new opportunity.
5. Social-culture
High end phones becoming status symbol.
Due to intimate family bonding in Indian culture there is need to remain connected.
Tech savvy generation.
8. SWOT ANALYSIS
1. STRENGTHS
Cost Advantage
Current leaders in quality service
Largest distribution network
Ability to constantly innovate
Highly skilled workforce
Entrepreneurial zeal
2. WEAKNESSES
To prove credibility
Price pressures
Need for Government support
Awareness
Sales and Marketing
3. OPPORTUNITIES
To sustain passion and commitment
Attain higher value services
Vertical repeatable solutions
Low penetration level in rural markets
Collaborative business needs to be explored
4. THREATS
Foreign Investments
Global trending moving from GPS to WLL
Lack of global parity in telecom tariff
Other competition
9. MARKET SEGMENTATION
Segmentation 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 of
target buyer and the resultant ease in designing a proper designing marketing mix strategy In this
case segmentation is on the bade of income.
TARGET MARKET SEGMENT
Airtel has targeted the premium and upper middle class. The rationale behind it is that only those
segments should be targeted who value time and have the paying capacity. It Is also planning to
target the business tourists during their stay in the capital. About 60% of the clientele are top
executives of corporate houses. About15% is foreign organisations and the rest are professionals
and small businessmen. During the introduction stage there was intense pressure to get consumers
across to hook up with their brand, because getting them to Switch brand loyalty later would be
6. hard. So far Airtel marketers have been concentrating totally on the business executive class but
now that the basic viable volumes has beer) built upend prices have declined to a certain extent they
are planning to venture further field.
POSITIONING
The product is sought to be positioned as a business efficiency tool. a lifestyle revolution and a
status symbol The emphasis is to remove misconception that the cell phone is an expensive means
of communication and drive home the point that the cell phone is actually a day-to-day utility.
10. Marketing strategies 4p’s
1. Product
Handheld Value-Added Services
Instant Balance Enquiry
24Hr recharge Facility
Caller line identification
Call divert, Call wait &Call Hold
Multimedia Messaging Service
Live Portal
SMS based Information Service
Hello Tunes & Ring Tones
Voice Mail Service
Easy Post-paid bill collection
Gifting of Ring Tones &Hello Tunes
GPRS
2. PROMOTIONS
Large scale print and video advertising
Big celebrities like SRK and Sachin are roped in to endorse the product.
In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is
perhaps the most downloaded tune in India
Provides innovations such as Bollywood movie premiers, music services suchas ring
back tones & many more
3. Place
Strategic Issues in Distribution
Flow of information in channel members.
Availability of products on required time frame.
Control over the channel.
Availability of promotional items to the channel.
7. Claim settlement should be solved within the committed time.
Conflict between the channel members should be taken care by the company.
4. Price
Customer based pricing strategies.
Flexible pricing mechanism
Controlled by TRAI.
GPRS Tariff for BSNL
Option-I Option-I Portal accessPrepaidServices Cell one portal.WAP sites.Browsing
oninternet.Cellone portal.WAP sites.Browsing on internet.Cellone portal.Cellone portal.WAP
sites.Browsing on internet. Activation charges50/-(Initially free for 3 months)50/-(Initially free for
3months)
NilMonthly Rental199/-349/-Nil
Usage charges10paisa/KBNilNil (Only content is charged if downloaded)10paisa/KBFree
units5MBUnlimited WAPbrowsing
MMS Charges3/- per MMS3/- per MMS150 MMS free for 525plan.100 MMS free for 325plan.rest 3/-
per MMS.5/- per MMS
GPRS Tariff for IDEA
WAPMWA-250MWA-500PrepaidServicesIdea fresh WAPportal, All WAP sites, Internetconnectivity
tocomputer. Idea fresh WAP portal, All WAP site side fresh WAP portal, All WAP sites, Internet
connectivity to computer. Idea fresh WAPportal, All WAP sites, Internet connectivity to computer.
Activation charges Nil Monthly RentalNil99/-250/-500/-Usage charges20paisa/KBNilAfter free
units,10paisa/KBNilFree unitsNilUnlimited WAPbrowsing25MB freeUnlimited WAP andDATA
BrowsingMMS Charges5/- per MMS5/- per MMS5/- per MMS5/- per MMS
GPRS Tariff for Airtel
Prepaid Post-paid ServicesWAP sites.Browsing on internet.WAP sites.Browsing on internet.
Activation chargesNilMonthly Rentals 5/- per dayRs 150/- per monthUsage chargesUnlimited
browsingUnlimited browsingGame download50,60,150,200 depending on complexity of
game. MMS Charges5/- per MMS5/- per MMSMMS (Download)Charger mentioned on screen
beforedownloadingCharger mentioned on screen beforedownloadingRingtones / WallpaperRs 10/-
per download (depends)Rs 10/- per download (depends)
11. Short term & long term projection
Loved by more customers
Targeted by top talent
Benchmarked by more business
Customer Service Focus
Empowered Employees
Cost Efficiency
8. Unified Messaging Solutions
Innovative products and services
Error- free service delivery
12. CONCLUSION
From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also good
no. of users who were willing to switch from their respective subscribers showed interest in Airtel.
Hence, the statistics imply a bright future for the company. Also the company is now providing more
services like the door to door services which is you dial the Airtel customer care and would like to
send someone flowers the Airtel Company delivers those flowers to the person concerned. Also
Airtel is providing free text messaging service and free voice mail service. Call conferencing is also
another feature Airtel provides.
13. Exhibit
By virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing the
highest market share in India, but there are still somerecommendations from my study
point of view is that AIRTEL needs tomake its network service more stronger than other
service providers todominate the market in future too. AIRTEL should introduce cheaper
recharge cards than theother because its competitor HUTCH had introduced it.
AIRTEL should sign more celebrities from cricket and Bollywood.