MARKETING ON AIRTEL

Presented to: Prof Mehta

PRESENTED BY• Abdul Kadir Chechatwala 05• Abdul Kadir Kazi 09• Khuzema.S.Kamri 12• Shubhangi Khatavkar 13• Khyati Mistry 20• Sharmeen Shaikh 34

ROADMAP• Introduction of telecom industry• Market size• Introduction of Bharti Airtel• Vision• Mission• Core Values• Objective Goals• Competitive Environment• SWOT Analysis• Porters Five Force Model• PESTEL• Product Development Strategy

• Marketing Strategy • Marketing mix • Pricing Strategy• Current Activities• Future Activities • Welfare Activities• Segmentation• Targeting• Positioning• Branding • Airtel Advertising • IMC Tools• About the Logo

INTRODUCTION OF TELECOM INDUSTRY

INDUSTRYOVERVIEWBACKGROUND

The Indian Telecommunications network is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth.

This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices

MARKET SIZE• Over 20.2 million new subscribers were added in the month of February, thereby

raising the total mobile phone subscription in the country to 791.38 million.

• Moreover, the statistics for February state that the rate of growth (2.82 per cent) in the number of rural mobile phone subscribers surpassed than those of the urban areas (2.52 per cent) across the country. The broadband subscription in February, 2011 was 11.47 million as compared to 11.21 million in January, 2011.

• The Indian telecom sector is largely dominated by private operators that control a share of 87.9 per cent share of the entire sector. Among the top players in the telecom sector, Bharti Airtel owns the largest share at 20.09 per cent, followed by Reliance (16.7 per cent), Vodafone (16.54 per cent), state-owned BSNL (11.41 per cent), Tata (11.08 per cent) and Idea (10.97 per cent). Vodafone has recorded the fastest growth rate in the month of February, at 17.61 per cent in its subscription base. Reliance (16.36 per cent), Bharti (15.85 per cent), Idea (12.43 per cent), Aircel (8.26 per cent) and Tata (7.93 per cent) have also recorded decent growth rate figures for the month of February, 2011, according to Telecom Regulatory Authority of India (TRAI) database.

INTRODUCTION INTRODUCTION Owner- Sunil Bharti Mittal. Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL). India’s largest cellular service provider. Known for its service. First cellular operator to set up cellular showrooms ‘Airtel Connect’. First cellular company to install a second mobile switching centre. HISTORY 1985- entered in telecom business. 1985-Technical collaboration with Siemens, Takacom corporation. 1990- entered in telecommunication industry. 1992- launching services in Delhi. 1995- opened its first cellular showroom. 2000- invested in acquisitions and alliances to expand its business. Won ‘Techies Award’ for four consecutive years (1997-2000).

VISION

Vision 2010 By 2010 Airtel will be the most admired brand in India:

Loved by more customers Targeted by top talent Benchmarked by more businesses

Vision 2020 To build India's finest business conglomerate by 2020 Supporting education of underprivileged children through

Bharti Foundation Strategic Intent:

To create a conglomerate of the future by bringing about “Big Transformations through Brave Actions.”

MISSION

“  We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”

CORE VALUES

Core Values Empowering People - to do their best Being Flexible - to adapt to the changing environment and

evolving customer needs Making it Happen - by striving to change the status quo,

innovate and energize new ideas with a strong passion and entrepreneurial spirit

Openness and transparency - with an innate desire to do good Creating Positive Impact – with a desire to create a meaningful

difference in society.

OBJECTIVES/GOALS

To undertake transformational projects that have a positive impact on the society and contribute to the nation building process.

To Diversify into new businesses in agriculture, financial services and retail business with world-class partners

To lay the foundation for building a “conglomerate” of future

SWOT ANALYSIS Strength1. Largest cellular service provider in India, with over 164.61 million subscribers at

the end of April 2011

2. Largest Telecom operator in the world with 207.8 million subscribers across 19 countries at the end of 2010

3. Only Indian operator, with VSNL, that has an international submarine cable

4. High brand visibility

5. Strong advertising with celebrity brand ambassadors

Weakness

1. Price competition from BSNL and MTNL2. Service centre issues3. Untapped Rural Market4. Price Higher than BSNL and MTNL

CONT…….

Opportunity

1.Fast expanding cellular market

2.Latest and low cost technology

3.Untapped rural market

Threats

1.New entrant's low price offering

2.Saturation point in Basic telephony service

3.Mobile Number Portability

PORTER’S FIVE FORCES MODEL

THREATS FROM NEW ENTRANTS

Demand side benefitsCustomer swtiching costsProposed number portabilityCapital requirementEstablish brand imageNetwork reliabilityRestrictive Government Policies

POWER OF THE BUYER

Lack of Differentiation among the service providers

Cut throat competitionCustomer is Price sensitiveLow switching costsNumber portability has negative effect

SUPPLIER BARGAINING POWER

Large number of suppliers

Shared Tower infrastructure

Limited number of skilled manpower

RIVALRY AMONG EXISTING COMPETITORS

High exit barriersHigh fixed cost6-7 players in each regionVery less time to gain advantage by an

innovationPrice wars

THREAT OF SUBSTITUTES

Some substitutes:VOIP(skype,messenger)Price performance trade off very high.Issues of mobility and penetration with the

substitutes.

PESTEL

POLICIES OF GOVERNMENT

Telecom Regulatory Authority of India(TRAI)

Telecom Dispute Settlement and Appellate Tribunal (TDSAT)

Unified Licensing Policy(ULP)

ECONOMICAL FACTORS

GDP trends

Interest Rates

Inflation Rates

SOCIOCULTURAL FACTORS

Lifestyle Changes

Career expectation

Growth rate of population

Regional shift in population

TECHNOLOGICAL FACTORS Focus of Technological Efforts convergence of voice and data received from multiple sources, both

web based and real time video streams, in mobile handheld devices.

Global satellite systems, mobile handsets and calling cards have made virtual presence possible almost everywhere and anywhere overcoming the barriers of distance, topography and remoteness.

Mobile number portability

2G,CDMA,3G SERVICES

PRODUCT DEVELOPMENT STRATEGY

Airtel brings the highly anticipated blackberry

Smart phone 8800 to india.

Launch of Iphone in 2008

Tie up with sing tel in 2001

MARKETING STRATEGY

Hello tunes

Airtel live

Voice sms

24hour customer service.

MARKETING MIX

PRODUCT Airtel Pre-paid Airtel Post-paid Blackberry Wireless Handheld Value Added Services (VAS) The different value added services provided by Airtel are-

Instant Balance Enquiry 24Hr recharge Facility

Caller line identification

Call divert, Call wait & Call Hold

Multimedia messaging service (MMS)

CONT…..

Airtel 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 Business Solutions

CONT.….

PRICE Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI.

PLACE It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points Distributors like E.g. Paan shops, grocery stores, chemists, outlet etc.

CONT…..

PROMOTION

Large scale print and video advertising. Big celebrities like SRK and Sachin are roped in to endorse the product

because it . In 2002 Airtel got its Signature tune from A.R. Rehman, this signature

tune is the most. Downloaded tune in India. Provides innovations such as Bollywood movie premiers, music services

such as ring. Back tones & many more.

PRICING STRATEGIES

• Customer based pricing strategies

• Flexible pricing mechanism

• Controlled by trai

CURRENT ACTIVITIES

Bharti Airtel announces its second quarter ended September 30, 2011 on November 4, 2011

Airtel digital TV now has 11 True HD channels, Expands total channel count to

262

Now enjoy high speed browsing when you need it most with Airtel Smartbytes Experience the magic of High Definition this festive season with Airtel digital

TV and Sony India! Bharti Airtel to Observe Silent period from September 30, 2011

Airtel digital TV brings the celebrated TV series "Johnny Test" to India

FUTURE ACTIVITIES

Bharti airtel and other global Telco's launch EIG for Commercial use

Bharti airtel partners with Savvies for enhancing Managed Service offerings

Bharti airtel launches high capacity direct terrestrial link between India and China

Bharti Airtel rated as India's Best Enterprise Connectivity Provider

Bharti airtel launches Global Data Services in Thailand & Malaysia

WELFARE ACTIVITIES

AirTel’s innovative yet powerful relations with customers went into next level with itsextension of the campaign “Atoot Network Atoot Bandhan” to “‘Mera Airtel, Mera Vishwas’” which will enable Farmers of Vidharba to earn alternate revenue.

As a part of this campaign, Airtel will offer 100 PCO boxes to the

farmers spread across 20villages in Vidharba for FREE. Each PCO box is of worth Rs.2, 500 and also has a FREE initial talktime of worth Rs.2, 800.

With this, farmers of Vidarbha would be given an opportunity to earn alternate revenue by presenting 100 farmers with PCO boxes.

SEGMENTATION

On the basis of Geography

Divided Indian market in telecom circles.

Subdivided States into category A, B and C

TARGETING

Earlier elite class above age group of 25 years.

Corporate people and business men.

Again targeted youth by introducing YOUTOPIA plan.

Targeted women and senior citizens by introducing post paid plans.

POSITIONING

Tagline- “power to keep in touch”.

Positioned in premium category aimed at elite class of society.

Perception of aspirational and lifestyle brand.

Airtel decided that the brand should always connote leadership - be it in network,

innovations, offerings or services

Sponsored games like Golf.

BRANDING

Easily recognized The brand elements of Airtel are memorable. It has no

complexity in their brand elements. At leastpeople can easily recognize and recall the parent brand Airtel Bharati. Though its sub-brands are little bittough to recognize and recall. So we can say parent brand are highly memorable.

Descriptive Brand elements may take on all kinds of meaning, with either

descriptive or persuasive content. Thebrand elements of Airtel have descriptive meaning and suggest something about the product category.

Fun and interesting

Rich visual and verbal imagery

Aesthetically Pleasing Airtel uses its parent brand name in different font and style as their logo

and symbol of parent brand. Different brands of Airtel Bharti use different brand elements. Brand elements of Airtel are so much likable. It is likable especially to the educated or to the brand loyal people

Transferability: Transferability means how useful is the brand elements for line or

category extension. In general the less specific the name, the more easily it can be transferred across categories. In that sense Airtel Bharti is successful in terms of transferability. Because it already introduced other products that have been accepted by the customers.

BRAND AMBASSADORS

AIRTEL ADVERTISING

Airtel basically uses two appeal to connect with their target audiences-

Emotional Appeal Humorous Appeal Their Total Advertising Budget is around Rs

150 Crores annually.

IMC TOOLS

Advertisements Sales Promotions Direct Marketing Public Relations Publicity Events

ABOUT THE LOGO

Our unique symbol is an interpretation of the 'a' in Airtel. The curved shape & the gentle highlights on the red color make it warm & inviting, almost as if it were a living object. It represents a dynamic force of unparalleled energy that brings us and our customers closer.

Our specially designed logo type is modern, vibrant & friendly. It signals our resolve to be accessible, while the use of all lowercase is our recognition for the need for humanity.

Red is part of our heritage. It is the color of energy & passion that expresses the dynamism that has made Airtel the success it is today, in India, and now on the global stage.

CONCLUSION