MARKETING PLAN1) Executive summary2) The challenge - A brief description of the product & associated goals such as sales figures & strategic goals3) Situation analysis:4) Company analysis5) Competitor analysis6) Collaborators7) PEST analysis8) SWOT analysis9) Market segmentation10) Selected marketing strategy – 4Ps11) Short & Long term projections12) Conclusion13) Exhibits
1. Executive summaryThe 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 andconclusion. 2. ChallengesAbout ProductThe company is a part of Bharti Enterprises, and is Indias leading provider of telecommunicationsservices. The businesses at Bharti Airtel have been structured into three individual strategic businessunits (SBU’s) - mobile services, broadband & telephone services (B&T) & enterprise services.Themobile services group provides GSM mobile services across India in 23telecom circles, while theB&T business group provides broadband &telephone services in 90 cities. The Enterprise servicesgroup has two sub-units - carriers (long distance services) and services to corporates. Alltheseservices are provided under the Airtel brand. Our Services: Voice Services Mobile Services Satellite Services Managed Data and Internet Services Managed e-Data ServicesGoalsAirtel would strive to conduct its business in a manner that reflects its vision and brand essence. Asthe sourcing base expands, airtel will only do business with partners who are committed to a longterm relationship focusing on mutual growth and trust. All Partners are responsible for making surethat airtels vision and brand essence is adhered to when subcontracting any portion of theirobligations. Partners are individually responsible for ensuring that their employees understandairtels vision and brand essence.Sales figures Mar11 Mar10 Mar09 Mar08 Mar07 12 Months 12 Months 12 Months 12 Months 12 MonthsINCOME:Sales Turnover 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61Excise Duty 0.00 0.00 0.00 0.00 0.00NET SALES 38,015.80 35,609.54 34,048.32 25,761.11 17,851.61
3. Situation analysisThe 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. Atthis point of time, the market was at an ascent stage, awareness level was low and bothoperators independently tried to spread awareness and educate the people. Once thenetworks were commercially launched, it became a number game with a multitude ofschemes being offered to woo customers Initially the cell phone was perceived as a statussymbol and utility took a back seat The target segment in Delhi were corporate and the highincome group. The average capacity installed was for 1.5 lakh subscribers. This coupled withthe steep license fee paid to DOT put pressure on the operators to break-even by rapidlyexpanding their markets. In the first two years, this led to a number of schemes beingoffered and prices crashing 4. Company analysisAirtel was started by Mr.Sunil Bharti Mittal, a graduate from Ludhiana (PUNJAB).earlier hewas owner of local telecom company Beetle. Afterwards he planned to expand his companyat national level and theconsequence is Airtel, what we see today. Bharti Airtel is India’slargest telecommunications company bysubscriber base, which stood at 85.7 million inDecember 2008, and total revenues, which were Rs.270 billion in 2007/08.Airtel is one ofAsia’s leading providers of telecommunication services with presence in all the 22 licensedjurisdictions (also known as Telecom Circles) in India, and in Srilanka. It served an aggregateof 96,649,487customers as of March 31, 2009; of whom 93,923,248 subscribe to GSMservices and 2,726,239 useTelemedia Services either for voice and/or broadband accessdelivered through DSL. It is the largest wirelessservice provider in the country, based on thenumber of subscribers as of March 31, 2009. It also offered anintegrated suite of telecomsolutions to our enterprise customers, in addition to providing long distanceconnectivityboth nationally and internationally. It had recently forayed into media by launching our DTHandIPTV Services. All these services are rendered under a unified brand Airtel. The Companyalso deploys, owns and manages passive infrastructure pertaining to telecom operationsunder its subsidiary Bharti Infracted Limited. Bharti Infratel owns 42% of Indus TowersLimited. Bharti ingrate and Indus Towers are the two top providers of passive infrastructureservices in India. Sunil Bharti Mittal, the founder – chairman of Bharti Enterprises (who ownsAirtel), is today, the most famousface of the telecom sector in India. He symbolizes theadage 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 businessopportunities. In the early years, Bharti established itself as a supplier of basic telecomequipment. His true calling came in the mid-1990s when thegovernment opened up thesector and allowed private players to provide telecom services. Telecom giant Bharti Airtel isthe flagship company of Bharti Enterprises. The Bharti Group has a diverse businessportfolio and has created global brands in the telecommunication sector. Bharti has recentlyfor 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 RothschildGroup to export fresh agri productsexclusively to markets in Europe and USA and haslaunched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, worldleader in financial protection and wealth management
5. Competitor analysisAirtel launched its services before Essar and skimmed the market picking up the bulk of thehigh usage premium clients. This is a very competitive industry with the two companiesdifferentiating either on value-added services or price. Airtel is perceived as the high-qualityprovider and has a premium image. Essar, on the other hand, is perceived as the lower endservice provider. Airtel positions itself as the market leader on the basis of the number ofsubscribers. Essar is trying to counter this by emphasising on the reach of its network andthe quality of its service. However, Essar is somewhat not been very successful largely dueto the inconsistency in advertising. To promote themselves, both the players have beendependent on tactical advertising However, they have restrained from using comparativeadvertising Hoardings have been a very popular medium for carrying the advertisementsAirtel has also been advertising on television using the Bharti Telecom name. 6. CollaboratorsBharti Airtel has embarked on a restructuring exercise that will merge three separatebusinesses, triggering a large-scale job cull for the first time in the services sector since the2008 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 companysrevenues and the vast majority of its workforce, into a single entity. 7. PESTPolitical Regulation Political opposition to particular by the private players Government support to promote FDI in telecom sector Banning of phone use in certain circumstanceTechnology Equipped with new technology Rapid industrial growth rate induced by emerging technologies. Strong fibre optic network Utilization of E-commerce facilities Efficient customer care serviceEconomic 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.
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 zeal2. WEAKNESSES To prove credibility Price pressures Need for Government support Awareness Sales and Marketing3. OPPORTUNITIES To sustain passion and commitment Attain higher value services Vertical repeatable solutions Low penetration level in rural markets Collaborative business needs to be explored4. THREATS Foreign Investments Global trending moving from GPS to WLL Lack of global parity in telecom tariff Other competition 9. MARKET SEGMENTATIONSegmentation 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 oftarget buyer and the resultant ease in designing a proper designing marketing mix strategy In thiscase segmentation is on the bade of income.TARGET MARKET SEGMENTAirtel has targeted the premium and upper middle class. The rationale behind it is that only thosesegments should be targeted who value time and have the paying capacity. It Is also planning totarget the business tourists during their stay in the capital. About 60% of the clientele are topexecutives of corporate houses. About15% is foreign organisations and the rest are professionalsand small businessmen. During the introduction stage there was intense pressure to get consumersacross to hook up with their brand, because getting them to Switch brand loyalty later would be
hard. So far Airtel marketers have been concentrating totally on the business executive class butnow that the basic viable volumes has beer) built upend prices have declined to a certain extent theyare planning to venture further field.POSITIONINGThe product is sought to be positioned as a business efficiency tool. a lifestyle revolution and astatus symbol The emphasis is to remove misconception that the cell phone is an expensive meansof 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.
Claim settlement should be solved within the committed time. Conflict between the channel members should be taken care by the company. 4. PriceCustomer based pricing strategies.Flexible pricing mechanismControlled by TRAI.GPRS Tariff for BSNLOption-I Option-I Portal accessPrepaidServices Cell one portal.WAP sites.Browsingoninternet.Cellone portal.WAP sites.Browsing on internet.Cellone portal.Cellone portal.WAPsites.Browsing on internet. Activation charges50/-(Initially free for 3 months)50/-(Initially free for3months)NilMonthly Rental199/-349/-NilUsage charges10paisa/KBNilNil (Only content is charged if downloaded)10paisa/KBFreeunits5MBUnlimited WAPbrowsingMMS Charges3/- per MMS3/- per MMS150 MMS free for 525plan.100 MMS free for 325plan.rest 3/-per MMS.5/- per MMSGPRS Tariff for IDEAWAPMWA-250MWA-500PrepaidServicesIdea fresh WAPportal, All WAP sites, Internetconnectivitytocomputer. Idea fresh WAP portal, All WAP site side fresh WAP portal, All WAP sites, Internetconnectivity to computer. Idea fresh WAPportal, All WAP sites, Internet connectivity to computer.Activation charges Nil Monthly RentalNil99/-250/-500/-Usage charges20paisa/KBNilAfter freeunits,10paisa/KBNilFree unitsNilUnlimited WAPbrowsing25MB freeUnlimited WAP andDATABrowsingMMS Charges5/- per MMS5/- per MMS5/- per MMS5/- per MMSGPRS Tariff for AirtelPrepaid Post-paid ServicesWAP sites.Browsing on internet.WAP sites.Browsing on internet.Activation chargesNilMonthly Rentals 5/- per dayRs 150/- per monthUsage chargesUnlimitedbrowsingUnlimited browsingGame download50,60,150,200 depending on complexity ofgame. MMS Charges5/- per MMS5/- per MMSMMS (Download)Charger mentioned on screenbeforedownloadingCharger 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
Unified Messaging Solutions Innovative products and services Error- free service delivery 12. CONCLUSIONFrom above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also goodno. 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 moreservices like the door to door services which is you dial the Airtel customer care and would like tosend someone flowers the Airtel Company delivers those flowers to the person concerned. AlsoAirtel is providing free text messaging service and free voice mail service. Call conferencing is alsoanother feature Airtel provides. 13. ExhibitBy virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing thehighest market share in India, but there are still somerecommendations from my studypoint of view is that AIRTEL needs tomake its network service more stronger than otherservice providers todominate the market in future too. AIRTEL should introduce cheaperrecharge cards than theother because its competitor HUTCH had introduced it.AIRTEL should sign more celebrities from cricket and Bollywood.