36793899-Vodafone-vs-Airtel

8/7/2019 36793899-Vodafone-vs-Airtel

http://slidepdf.com/reader/full/36793899-vodafone-vs-airtel 1/20

An

Assignment

On

Comparison between any two Competitive Companies

Submitted in partial fulfilment of the

requirement For the Award

Master of Management Studies

Under the Guidance of

Prof. Mona Sinha

Submitted by:-

Vailankanni D’souza

MMS SEM I

Roll no. 12



INTRODUCTION

Why Airtel v/s Vodafone

The dominant players in India are Airtel, Reliance Infocomm, Vodafone, Idea cellular

and BSNL/MTNL but Vodafone drew my attention with its marketing strategy and Airtel

with its Innovations and product development. To me both are striving hard to sustain the

market pressure, playing their cards well & very good competition for each other.

Industry Profile

A midst all the talk of slowdown in the Global world, telecom is one sector that has

had a fairly good year in terms of subscriber additions and revenue growth in 2009.However, even as this gives some reason to cheer for the telecom incumbents, there

are a few trends in key metrics of the companies that suggest increasing pressure on

margins. After the telecommunication policies were revised to allow private

operators, companies such as Bharti Telecom, Tata Indicom, Reliance MTNL,

Idea, Vodafone and BPL have entered the space as Major Operators in India.

COMPANY PROFILE

http://en.wikipedia.org/wiki/Airtel

http://en.wikipedia.org/wiki/Bharti_Telecom


http://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limited

http://en.wikipedia.org/wiki/BPL_group

http://en.wikipedia.org/wiki/Category:Telecommunication_companies_of_India



http://en.wikipedia.org/wiki/Mahanagar_Telephone_Nigam_Limited

http://en.wikipedia.org/wiki/BPL_group

http://en.wikipedia.org/wiki/Category:Telecommunication_companies_of_India

http://en.wikipedia.org/wiki/Airtel



Airtel comes from Bharti Airtel Limited, one of Asia’s leading integrated telecom services

providers with operations in India and Sri Lanka. Bharti Airtel since its inception has been

at the forefront of technology and has pioneered several innovations in the telecom sector.

0· The largest wireless service provider in the country, based on the number of customers as of September 30, 2009.

0· Offers an integrated suite of telecom solutions to our enterprise customers, in

addition to providing long distance connectivity both nationally and

internationally. We also offer DTH and IPTV Services.

0· The company also deploys, owns and manages passive infrastructure

pertaining to telecom operations under its subsidiary Bharti Infratel Limited.

Bharti Infratel owns 42% of Indus Towers Limited. Bharti Infratel and Indus

Towers are the two top providers of passive infrastructure services in India.

0· With effect from April 24, 2006, the name of the Company has been changed

from Bharti Tele-Ventures Limited (‘BTVL’) to Bharti Airtel Limited.

Fact sheet

Name Bharti Airtel Limited.

Business DescriptionProvides GSM mobile services in all the 22

telecom circles in India, and was the first private

operator to have an all India presence. Provides

Telemedia services (fixed line and broadband

services through DSL) in 95 cities in India.

Established July 07, 1995, as a Public Limited Company

Revenue:Rs. 369,615 million (year ended March 31,2009-Audited)

EBITDA: Rs. 151,678 million (year ended March 31, 2009

- Audited)

Shares in issue: 3,796,842,330 as at Sept 30, 2009

Listings: The StockExchange,

Mumbai (BSE)

The National Stock Exchange of India

Limited

(NSE)

Market capitalisation: Approximately Rs 1,236 billion as on 30th Dec



2009

Customer base: 110,511,416 GSM mobile and 2,928,254

.Telemedia Customers (status as onSept

30,



MARKETING STRATEGY

AIRTEL:

Market

Airtel has targeted the bottom of the pyramid - C K Prahalad Concept

Market segmentation:

ﾷ Geographical segmentation – metropolitan & cities

India ﾷDemographic segmentation - low & middle

income group ﾷPeople age group of 20 to 28

Target market:

0· People living in cities and towns

0· Poor and middle income groups

0· Youngsters in big cities

0· Businessmen

Positioning

0· Creating brands

0· Ads and promotion

Marketing mix

0· Price-low price strategy

0· Place-maximum outlets and service centers

0· Product -varieties available for various group

0· Promotion -various schemes for prepaid and postpaid

Marketing Strategy

Airtel strategy is to be leader in:-

ﾷ Innovations

ﾷ Network

ﾷ Offers and Services

Strategy of making customers educated about the services like: -



1. “ What is roaming?”

2. “ What is coverage area?”

3. “How to make international calls?”

Airtel adopted the product driven communication to make their productssuccessful in the market and also emotional communication to target younger

people.

Strategies Introduction Growth MaturityMarketingobjectives Create product Maximise market

Maximise profits whole

awareness and

trial share

defending market

share

Product Offer a basic Offer value added Increase in number of

product/ service. services value added services.

Price Charge cost- plus Price to penetrate Price to match or best

market competitors

Distribution Build selective Build Intensive Build more intensivedistribution distribution. distribution.

Advertising Build productBuild awarenessand Stress brand differences

awareness among interest in the mass and benefits.early adopters and market

dealers.

Sales Promotion Use heavy salesIncrease to buildand Increase to encourage

promotion toentice

maintainrelationships brand-switching.

people tosubscribe. with customers.

Brand Ambassadors:

ﾷ Famous celebrities: Shah Rukh Khan, Sachin Tendulkar , A R Rehman,

Kareena Kapoor, Saif Ali khan.



VODAFONE:

Market

Vodafone has targeted the bottom of the pyramid - C K Prahalad

Concept Market segmentation: Vodafone is adopting a multi-segment

approach. Geographical segmentation – metropolitan & cities India

0· Vodafone wants to expand into the Asian markets.

0· India has 2nd largest market for mobile. It is growing at the rate of 6 million

subscribers per month.

Demographic segmentation: low & middle income group

Target market:

0· Market from urban areas from middle and upper middle class families

0· Youngsters in big cities

0· Businessmen

Positioning: -

0· “Where you go the network follows you” by Hutch, now Vodafone

0· Ads and promotion

Marketing mix:

0· Price-low price strategy

0· Place-maximum outlets and service centers

0· Product -varieties available for various group

0· Promotion -various schemes for prepaid and postpaid

Marketing Objectives

Vodafone says that they want to be the top mobile service provider of

India by the end of the year 2010



Marketing Strategy

ﾷ Our strategic objective is Innovate and delivers on our customers’ total

communications needs.0· Vodafone, too, needed to educate consumers about cellular telephony: -

0- Can I call STD?

0- Can I use my phone in a lift?

0- What is airtime?

0· Vodafone also communicates regularly with its customers to keep

them well informed of the benefits of all Vodafone products.

Focus on free cash flow generation and Progress

execution

Drive operational– Valueenhancement

– Launched new products in a number of markets,

performancewhich offer customers more value in return for

– Cost reduction increased commitment– Accelerated £1 billion cost reduction programme;

expect to achieve 65% in 2010

Pursue growth – Mobile data– Expanded range of data devices with the

opportunities in – Enterprise BlackBerry Storm, iPhone and netbooks with built-total in broadbandcommunications – Broadband – Revenue growth of 9% in Vodafone Global

Enterprise– 1 million new fixed broadband customers; closing

base of 4.6 million

Execute inemerging – Delivery inexisting – Nationwide footprint in Indiamarkets markets – Commenced operations in Qatar since year end

– Acquired Gateway in Africa to strengthen total– Selective communications portfolioexpansion/ cautiousapproach

Strengthen capital– Shareholder returns

– Returned over 87% of free cash flow before

discipline license and spectrum payments to shareholders in

– Clear priorities for the 2009 financial year

surplus capital– In-market consolidation through merger of



Vodafone Australia with Hutchison 3G Australia



Brand ambassadors:

0· Hutch, as a brand, always tried to connect with consumers in a simple,

honest and real manner,

0· The “The Hutch pug.” and the actor Irfan Khan were retained for the

brand promotions.

While Vodafone - a younger and fun brand. Zoozoo enters market

0· ZooZoo, small pseudo-animated character with big egg-shaped head,

round belly but extremely thin arms and legs, the new brand ambassador

of Vodafone, has created a furor in the advertising industry. Zoozoos have

been successful in giving Vodafone a makeover and establishing

maximum brand presence.

Comparing the two rivals,

Competitive Analysis (positioning strategy)

Vodafone has veered towardsAirtel is focused on functionality

and

warmth and emotions efficiency.

Vodafone used the powerful visualAirtel chose to use music, which is

imagery of a dog. not nearly as effectively

Vodafone introduces Zoozoo, aAirtel still uses the Celebritiesand

character making place inpeople’s

Music comparatively nowhere next

to

heart Zoozoo



HUMAN RESOURCE POLICIES

AIRTEL:

Human resource:

Airtel values its human resources and its HR policies are aimed at targeting and

retaining best talent in the industry.

The key functions of the HR Committee include the followings:

0· Employees Development Strategies.

0· Compensation (including salaries and salary adjustments,

incentives/benefits bonuses, stock options) and performance targets for

the Chairman and Managing Director (CMD) and Joint Managing Directors

(JMDs) Executive Directors.

0· All Human Resources related issues

0· Attraction and Retention strategies for employees.

0· Other key issues / matters as may be referred by the Board or as may be

necessary in view of Clause 49 of the Listing Agreement or any statutory

provisions.

Some Hr policies and practices include:

ﾷ A family-day at office, half day leave for birthdays, gifts for anniversaries,

compulsory 10 days off, festival celebration with family, no official meetings on

weekends, five day weeks, concierge services, call center engagement programs

etc. These “care” policies and practices are applied across the organizational

levels without any discrimination

At Bharti Airtel, the ‘Mantra’ for employee delight focuses on 5 Ps – People, Pride,

Passion, Processes and Performance.

ﾷ From self-management workshops to aerobics sessions, yoga classes to provision of

relaxation/meditation rooms, the company ensures that every employee keeps a check on



his/her fitness. Tie-ups with leading health service organizations enable the employees to

undertake periodical health check-ups depending upon their age. This facility is also



extended to employee family members at discounted rates. The company provides

Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses,

accidents and hospital coverage for serious ailments. Apart from these specific

engagements, they regularly organize health check up camps, eye check-up campsand stress management sessions. At many of the locations, the company has hired

psychologists who undertake personal counseling sessions for employees.

0· Bharti Airtel offers a flexible compensation structure to its employees wherein the

employees have the flexibility to structure their fixed component of their

compensation according to their requirements within the ambit of legislation.

0· Performance Linked Incentive (PLI) schemes are linked with the variable

component of our compensation structure. This component is linked to both the

individual performance against his/ her set KRAs (Key Result Areas) and the

overall performance of the business entity that an employee belongs to.

0· The mechanisms like Performance Management System (PMS) and Talent

Management Process (TMP) are the key sources of identifying the training needs

of the employees and check to competency levels for promotion.

Steps Undertaken BenefitsYoung team policy-Average 26years Has helped the HR department to mould the young entrants

to the company.Invite criticism from the employees With better interaction with the senior managers, the

Employees have began to play a more pro-active role in

team-building effortsEmployees decide their training needs Improve Skills and efficiency of the employeesSeeks to certify every employee on To train, develop and re-certify the employees on a

quality and IT. continuous basis

Set up a state-of-the-art learning centre To encourage learning within the organisationHR steering committee (HRSC) The committee meets once a week to discuss various

initiatives and the plan of action on the same.Constant monitoring of employees- Performance indicators

given individual targets

Conducts an internal employeeThe inputs of which go into the company's annual strategy.

satisfaction survey (PACE)

Formal job description documents Helped in communicating to each of the employees about

issuedour expectations from them, and established role clarity



‘open house' conducted Departments and HR takes up individual grievancesFamily group meetings Where in issues other than those related to work are

discussed.



HR interface Every member of the HR department has been assigned two

departments each to discuss and sort out all HR, personnel

and administration issues.HR Intranet Provides information on HR policies, organisational

structure, training calendar and the house journal.

VODAFONE:

Human resource:

Employee Rights Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures

with an interest of 50% or more..

The Policy

0· It is the policy of the Board of Vodafone Group Plc that the human resources teams will

develop and maintain effective terms and conditions of employment and ensure that they

are applied equitably and consistently and communicated effectively.

0· It is each Local Company Chief Executive Officer responsibility to implement

procedures to enable employees who believe they have suffered unfair treatmentat work, to have their concerns investigated promptly and objectively.

0· It is the responsibility of each local HR director to put measures and procedures in place

and communicate them appropriately to ensure the above objectives are met.

Recruitment and Managing our People Policy

This policy applies to All Employees in Vodafone subsidiaries and Joint Ventures

with an interest of 50% or more.

The Policy

ﾷIt is the policy of the Board of Vodafone Group Plc to ensure that all recruitment

activities are fair and non-discriminatory and both identify and address individual

development needs, potential and opportunities. Recruitment should also recognize

the opportunities, initiatives and changing skill profiles throughout the Group.



ﾷEach company will implement programmes to ensure employees will receive

continuous training in respect of induction, leadership, professional and personal

development on any existing or new role.

ﾷ It is the responsibility of the Local Company Chief Executive Officer to put in

place policies and procedures and communicate them appropriately to ensure the

above objectives are met.

People

As a global organisation, Vodafone employed an average of around 79,000 people

worldwide during the 2009 financial year. The Group aims to attract, develop and

retain the best people by providing a stimulating and safe working environment,offering attractive performance based incentives and rewarding career opportunities.

Organisation changes

Vodafone changed the shape and size of its organisation during the 2009 financial

year to accommodate growth within the business as well as to create a leaner, more

agile structure with clearer reporting lines and accountabilities across the Group.

0· As a consequent of these changes, approximately 1,900 jobs were eliminated.

0· Despite these reductions, the overall number of people working for

Vodafone grew by 9%, due to growth in emerging markets and business

acquisitions.

0· People whose jobs were affected by the organizational changes were treated

in line with Vodafone policy and good practice on employee relations and

consultation.

Steps Benefits

People engagement -Targets and actions Employee engagement increased by four

have been identified to build upon and percentage points to 75%

sustain the high level of engagementachieved.

Performance management-each

individual’s ﾷ 96% of employees completedperformance to be reviewed with his or performance review.



her manager and career development goals to

be 95% of employees agreed goals.set through a performance dialogue. ﾷ



Training and development- In the 2009 financial year, Vodafone providedan aggregate of 230,000 days of training, an

average of three days per employee.

Launched Inspire, a development Inspire has a total of 70 delegates from across

programme for the leaders of tomorrow17 countries on the programme, with a further

intake planned in the 2009 calendar year.

Equal opportunities and diversity - offers ﾷ

13% of senior employees andthree

equal opportunities for all aspects of operating company CEOs are female.

employment and advancement regardless of ﾷ

23 nationalities are represented in top

race, nationality, sex, age, maritalstatus, management bands.

disability or religious or political belief.

People with disabilities are assured of full Modifications to workplaces are made to

and fair consideration for all vacancies provide access and therefore Job opportunities

for the disabled.

Every effort is made to continue theVia job design and the provision of additional

employment of people who become disabled facilities and appropriate training.

Reward and recognition ﾷ Extension of reward differentiation

based on individual performance.

ﾷ A variety of share plans are offered to

incentivise and retain employees.

Health, safety and wellbeing ﾷ Introduction of group wide product

safety and assurance policy.

ﾷ Increasing importance placed onintegration into operating companies

indeveloping markets.

ﾷ

Improvement in employeewellbeing

initiatives.

Employment policies ﾷ Policies are developed to reflect local

legal, cultural and employment

requirements.

ﾷ Vodafone aims to be recognised as an

employer of choice.



Comparison of the two rivals Hr policies,



Both Vodafone and Airtel are giving their best towards the Employee Development but Airtel

excels with the steps undertaken and even won “Company with the Most Innovative HR

Practices in the Asia Pacific Region” at the Asia Pacific HRD conclave held in Mumbai.

CONCLUSION

0· Bharti Airtel speedy activity is one of its best attributes that has made

it gain an international status across the world. It is always updated

with the latest data and is highly competent. Quality remains the

prime concern and is maintained strictly by the team.

0· Vodafone sets a perfect example of a well-laid out marketing strategy,

Zoozoo captured attention of nearly two billion people during the IPL.

People eagerly waited for breaks between matches to see more stories

about Zoozoo.

0· Bharti Airtel concentrates more on Innovation and Product

Development e.g. IPTV Services where as Vodafone is known for its

Customer Service.

36793899-Vodafone-vs-Airtel

Documents

Transcript of 36793899-Vodafone-vs-Airtel