Idea Cellular aims to become the market leader in the Indian telecom industry. It analyzes opportunities in the growing Indian market and competitive landscape. Idea's strategy focuses on expanding in rural areas through diverse tariff plans, experiential marketing, and outsourcing. It plans to convert 70% of its network to 3G and will evaluate 4G after 2016. In rural areas, Idea treats India as heterogeneous and uses a "sons of the soil" hiring strategy to employ local people to effectively cover villages.

1. STRATEGY FOR BECOMING MARKET LEADER
PRESENTED BY:
Rahul Tandel
Abhishek Jha
Shyamanta K
Faheem
Ashutosh Mishra

2. Indian Telecom Market

3. Indian Market Segments

4. India – Key Enablers

5. Competitive Landscape

6. Opportunities moving forward

7. Opportunities moving forward

8. Idea Company Overview

9. The Growth Story

10. Growth Drivers moving forward

11. Idea Capabilities and Strength

12. Idea – Capabilities and Strength

13. Porter’s Five Force Industry Analysis

14. Idea PORTER 5 Forces Model Analysis

15. External factors – Opportunities
Opportunity Weights Rating Weighted
Score
Comments
India’s GDP 0.02 3 0.06 More number of people will opt for
mobile services if income increases.
Imports 0.1 2 0.2 Increase in number of Mobile phones will
lead to increase in subscribers.
Technological
Effort
0.17 4 0.68 Idea has nine 3G circles and still has to
enter the 4G market.
New Products 0.08 3 0.24 Idea fairly relies on 3G data card and their
mobile handsets.
Internet
Availability
0.07 4 0.32 Idea is only present in Data cards but not
in broadband.
Lifestyle Changes 0.08 3 0.24 Idea follows the same concept of
campaign “What an Idea Sirji”
Growth Rate of
Population
0.08 3 0.24 Idea has grown in the recent years,
expanding its market share to 14%.

16. External Factor analysis of Threats
Threats Weights
Rating Weighted
Score
Comments
FDI 0.05 2 0.1 Idea will have to compete with foreign
companies on pricing point of view.
Price War 0.1 4 0.4 Market players would determine the
price.
Interest Rates 0.06 2 0.12 Idea will have least effect with less
aggressive expansion plans.
Consumer
Protection Law
0.02 1 0.02 Not so important as company practices
fair trade practices.
2G Scam 0.17 4 0.68 Idea’s license were recently cancelled by
the Supreme Court in 2G scam of 2008

17. Strategies implemented
Marketing Strategies
• Zero Balance, No Tension: Use Uninterrupted Mobile Internet, Courtesy Idea
Cellular
• IDEA’s Special International Roaming Packs – ‘iRoam’
• Idea Cellular Introduces New 3G Android Smartphone Aurus for Rs.7190
MARKETING MIX
Product
• Prepaid
• Postpaid
• VAS
• Roaming
• Business Offering
Place
• All States

18. PRICE
• Differs for different service plans
PROMOTION
• Focused on managing Brand
PEOPLE
• Employees 6,481 (2010)
• The Group has been adjudged 'The Best Employer in India and among the Top 20 in
Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.
PROCESS
• Providing the easy accessibility for the end consumer to communicate to one
another via telephonic media.
• They also provide the service of data browsing with help of 2G and 3G networks.
• They also have the process of customer care service, where the end consumers call
directly talk to the CRM- Customer Relation Manager and get their problem solved.
Strategies implemented

19. Present Business Strategy of Idea
Cellular
• MNP: As TRAI has passed the regulations of Mobile Number portability, the
followers in the industry were likely to make the best utilization of it hence IDEA
developed the strategy of providing better tariff plans compared to other
telecom players which resulted in maximum number of subscribers opting for
Idea Cellular.
• Diverse Tariff Plans: A Product line with Vertical as well as Horizontal Spread in
tariff plans catering to the needs of every consumer.
• Experiential Marketing: Reaching consumers through shops, college event
campaigns and influencing customers to adapt its services indirectly.
• With holding the position in present circles: Development in their established
market, They have up with strategy of over investing in existing circles for the
development of better network coverage and tapping better rural market. 67% of
net subscribers are addition for Idea which comes from rural market.
• Outsourcing: Outsourcing its key IT requirements to companies like IBM.

20. Strategies being implemented
• proposing to convert 70% of the network to 3G services. Huge
market where people are not accessing 2G data
• Idea's stance on 4G services that peers are launching or
planning: 3G will continue to be the dominant technology.
IDEA will evaluate 4G only after 2016.
• The business focus for Idea lie in the near future: Uttar
Pradesh and Bihar, Andhra Pradesh, Madhya Pradesh, Bengal,
Orissa still have a lot of underpenetrated areas. A third of the
world's addition in voice consumption increase is coming
from India. We will continue to focus on our granular
approach to reach the rural market, where customers still
have an appetite for voice products.

21. Strategy implemented in Rural areas
• Idea treated India as heterogeneous as Europe, and therefore needed a
granularity of business. As part of a study of our customer we went to a
distributor in a northern region. He pointed us to a young man, who was
going to be responsible to sell Idea SIMs in the region.
• We went along with him, and to experience life as it was for him,
accompanied him rather than taking him along with us. So we found that
even though he worked an honest 9am to 6pm day, between waiting for
buses and actual travel time, he effectively had only three hours to service
his area. That included 17 towers. Now rural areas are thinly populated,
so the distance he had to cover, using the traditional FMCG model wasn't
feasible.
• So we created the 'sons of the soil' hiring strategy. The idea was to hire
someone less qualified on paper, but located at the heart of the region he
was covering and with some social standing. We created a 500-member
team for capability building, to train these sons of soil in our services.
Today we cover 99% of villages with over 4,000 such people.