Airtel Marketing

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TELECOM INDUSTRY 

 



' Indian Telecom Industry' is the third largest and fastest growing in the world with nearly 200 million connections. Subscriber growth rate is 45% The wireless technologies currently in use ' Indian Telecom Industry '  Global System for Mobile Communications (GSM)  Code Division Multiple Access (CDMA). There are primarily 11 GSM and 4 CDMA operators providing mobile services in 19 telecommunication circles and 4 metro cities, covering more than 2000 towns across the country.





Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). Three types of players exist in ' Indian Telecom Industry ' :  State owned companies like - BSNL and MTNL.  Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.  Foreign invested companies like – HutchisonEssar , Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc.

  

MARKET SHARE

BHARTI ENTERPRISES BHARTI ENTERPRISES

Bharati Telecom Bharti Teletech Seychelles Telecom Ltd. Ltd. Ltd.

eletech Services (India) Ltd.

Field Jersey Bharti AXA Bharti Bharti Airtel Insurance Telesoft Fresh Retail Pvt Ltd. Co. Ltd Ltd. Foods Pvt. Ltd. Ltd.

Bharti Airtel Ltd

BHARTI AIRTEL LIMITED   



Established in June 07, 1995 as a Public Limited Company. Largest Cellular Operator in India. Listed on Bombay Stock Exchange (BSE) & National Stock Exchange of India Limited (NSE) Operational Network:  Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence.  Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India

STRATEGIC BUSINESS UNIT Mobile Services:



This unit constitutes the largest portion of the company’s business in terms of total revenues and customers.  The company’s mobile customer base accounts for 22.9% of the overall wireless (GSM+CDMA) market. Broadband and Telephone Services  This unit provides fixed line and broadband services over the same copper lines.  Plans to introduce IPTV (Internet Protocol Television) Enterprise Services : Two sub-units are –  Carriers : It handles long distance national & international mobile, broadband and telephone services.  Corporates: It provides customised integrated voice and data communications solutions to corporate customers. 





PERFORMANCE AT A GLANCE Particulars

Units

Full Year Ended March 31 2003

2004

2005

2006

2007

Total Customer Base

(In 1000)

3,443

7,141

11,842

20,926

39,013

Mobile Services

(In 1000)

3,071

6,504

10,984

19,579

37,141

Broadband and Telephone Services (In 1000)

372

637

857

1,347

1,871

 

 

 

 

 

 

Revenue

Rs. Mn

30,554

50,369

81,558

116,641

184,202

Profit After Tax

Rs. Mn

(2,051)

5,837

12,116

20,279

40,621

Return on Capital employed

%

0.9

9.9

15.7

21.5

31.6

ANSOFF’S MODEL MARKET PENETRATION STRATEGY (Increase Market Share)  

 



Attract users of competitors products : Full Talktime Convert nonusers into users :Lifetime plans to attract low income groups Increase product usage : Easy Recharges Increase the frequency of purchase : Recharge through ATM ; Internet based recharging through leading banks ; Products available on Indiatimes shopping and Rediff shopping Find new applications for current users : Collaboration with banks to facilitate fund transfer through mobile; Global Money Transfer.

NEW PRODUCT DEVELOPMENT 

Product quality improvement strategy : Good mobile coverage.



Product feature additions strategy : Wap Services ; EDGE Service; Airtel Live ( Cricket news, downloads, astrology, travel etc.) ;



New product development strategy : Blackberry

MARKET DEVELOPMENT (Intensive) 

 Expand geographically : Entering new markets in the west (U.K) ; Launching mobile services in Sri Lanka ; GSM license in Bhutan



Target new segments : CallHome service for NRIs living in USA to be in touch with their loved ones.

DIVERSIFICATION   

Broadband Services. Telephone Services - Touchtel. Consultancy services to industry verticals like Banking, Financial services and Insurance, ITES, etc. to meet their telecom needs.

FOUR Ps

FIVE PRODUCT LEVELS Core Product: Communication;  Basic Product: Mobile telephony  Expected Product: Strong network coverage  Augmented Product: Caller tunes, Wallpaper, Ring tones, WAP, SMS alerts, Voice SMS  Potential Product: 

PRODUCT Product Variety:

     

Prepaid Postpaid Value added services Blackberry Business solutions

PRICE    

Easy payment options. Anytime Anywhere Easy billing Flexible Credit limit Happy recharge ( full talktime everytime)

PLACE  

 

Operating in 23 circles in India Strong distribution network with approximately 160,000 family of retailers Over 500 exclusive outlets Operation in foreign countries

PROMOTION



        

Celebrity endorsements ( Sachin Tendulkar, Amitabh Bachhan, Shahrukh Khan, AR Rehman, Madhavan,Kareena Kapoor) Loyalty rewards Lower tariffs Discount coupons Talk time schemes Special season offers Innovative advertisement campaigns Mass promotion campaigns Setting up of exclusive stalls to promote existing and new products. Corporate Social Responsibility: “Satya Bharti School” providing primary education for underprivileged children in rural areas.

SEGMENTATION 



Geographic Segmentation : 23 telecom circles (different tariff for different circles) Demographic Segmentation :    

Age : Senior citizen. Gender : Women. Occupation : Students ( Youth Plan) , Corporate . Income: All income groups ( Different plans for various income groups)

POSITIONING  AirTel positions itself in the market as a very 



reliable, effective and consumer savvy brand Positioning as a brand which people can trust in terms of quality and performances Plans to position itself as complete telecom service provider with a strong presence in global network

FIVE FORCE ANALYSIS Potential entrants -Entry

of Global Telecom providers

Suppliers (supplier power) Ericsson – GSM Network Management Service Provider

Industry Competitors

Hutch, BSNL, Idea, MTNL, Tata Indicom, Reliance

Substitutes CDMA technology, Internet messengers, Netto-Phone

Buyers Loyalty shift.

COMPETITOR – HUTCH 

    

Hutch is the second largest cellular operator in India in terms of revenue. Operates in 16 telecom circles. Subscriber base : 26.73 Million. Market share : 20% of the GSM market. Highest average revenue per user in industry. Vodafone has acquired a 67% of holding in Hutch-Essar for US$11.1 billion

SERVICE PORTFOLIO       

 

Prepaid Postpaid Calling Cards HandyPhone Hutch PCO Hutch World (GPRS service) Hutch services on mobile

PlanetHutch services Mobile E-mail solutions

00000 00000 00000 00000 00000 00000 0000 0000 0000 0000 0

17888

Revenue (( in in Crore) Crore) Revenue

Revenue ( in Crore)

AIRTEL vs HUTCH (Revenue Comparison) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

11291

10565

6837

FY --00 FY -- 0000 0000 00

FY - 0000 -00

FY --00 FY 0000 0000 00 Year Year

FY 0000 -00

Airtel Hutch Airtel Year Hutch

Airtel

Hutch

RECOMMENDATIONS 



 



Airtel should consider acquisition of domestic and local GSM service providers, thereby increasing its market share. E.g. , acquisition of Spice. It has to be quick to adapt to and bring new emerging technologies like 3G and 4G in India at affordable cost. It should start Mobile Bill Payment Van services. It should put more focus on entering into new countries and establishing itself as a global brand. It should expand its rural network coverage to widen its customer base.

THANK YOU

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