airtel_ report 14

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BHARTI AIRTEL

SUBMITTED BY :

Krishna Madhavi

Rini VargheseWajid Ali

Dinkar Mishra

SUBMITTED TO :

Prof. Marya Wani



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TABLE OF CONTENTS

Abstract««««««««««««««««««««««««««««.2

O bjective««««««««««««««««««««««««««««2

History, Development& Growth««««««««««««««««««..2

SWOT Analysis«««««««««««««««««««««««««.4

Analysis of External environment

y Porter¶s Five Forces Model««««««««««««««««....5

Strategy Analysis««««««««««««««««««««««««...7

Structure & Control Systems Analysis««««««««««««««««..8

RelevantConcepts««««««««««««««««««««««««..9

y 7 P¶S«««««««««««««««««««««««««9

y STP«««««««««««««««««««««««««.11

y Brand Personality«««««««««««««««««««...12

y Share of Mind«««««««««««««««««««««.12

y Pioneer Advantage«««««««««««««««««««.12

y Viral Marketing««««««««««««««««««««..12

y Repositioning«««««««««««««««««««««..12

y Brand Reinforcement& Revitalization««««««««««««12

y Brand image««««««««««««««««««««««13

y Pricing Policy«««««««««««««««««««««..13

y Major issues«««««««««««««««««««««««««««.13

y Recommendations«««««««««««««««««««..



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ABSTRACT

This document is a report on the analysis of the case titled ³Airtel- From Touch

Tomorrow to Live Every Moment´.

Bharti Airtel is one of India¶s leading private sector providers of Telecommunication

services. This report deals with the indepth analysis of the given case study on Bharati

televentures . It is prepared by looking into the gist of the article and anlyzing the issues

and the relevant marketing concepts. The five porters model gives an indepth insight as

to how things should be dealt with.

OBJECTIVE

The aim of this analysis is to study the growth of Bharati Airtel , strategies implimented

by it to sustain and capture the market share.

History, Development & Growth

Sunil Bharthi Mittal founded Bharthi Enterprises in 1976 which started as a unit

for manufacturing bicycle components later diversified into the manufacturing of stainless steel, brass and plastic products, import of gensets etc.

The year 1985 demarcated the turning point in the history of the company after it

entered into the manufacturing of push button telephones after entering into a

technical tie-up with Seimens AG.

In 1989, Bharthi in collaboration with Takacom corporation became the first

Indian company to manufacture telephone answering machines.

In 1992, Bharthi formed a consortium with certain prominent players in the

industry like SFR-France, Emtel-Mauritius and MSI-UK, to bid for mobile

service provider licenses in Indian metros.

In 1994 Bharthi obtained the GSM mobile service provider licence for Delhi NCR and in 1995 the service was launched.

In 1996, it became the first private telco to launch mobile services in Himachal

Pradesh.

In 1997 it became the first Indian mobile service provider to cross the 100,000

customers mark.



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In 1998 BhartiBT Internet, a joint venture of Bharti Telecom and British Telecom

was formed for providing ISP services, which launched ISP services in Delhi,

Mumbai and Bangalore under the `Mantra online' brand in 1999.

It could establish footprints in Andhra Pradesh and Karnataka also by acquiring

JT Mobile. Singtel, Asia's leading telco, formed a strategic partnership with

Bharthi in 2000 and Bharti acquired majority stake in SkyCell to establish its

presence in the Chennai circle. By 2001, Bharthi could win mobile service

provide licenses in eight circles and in 2002, it got listed on NSE, BSE and DSE.

Bharti Enterprises has successfully focused its strategy on telecomwhile

straddling diverse fields of business. From thecreation of 'Airtel',one of India's

finest brands, to becoming thelargest manufacturer and exporter of world class

telecom terminals under its'Beetel' brand, Bharti has created a significant position

for itself in the global telecommunications sector.

SWOT Analysis

Strengths

y Bharthi Airtel is the largest cellular provider in India by making its presence

known in various fields like cellular telephony, internet services etc.

y It could form many strategic alliances with several leading companies like

Siemens AG, SFR- France, MSI- UK, Singtel etc which provided it with the

necessary technical expertise to carry on with its market expansiony It could cover the entire India with its network and increase the market shares by

employing geographical expansion strategies

y The pioneer advantage Bharthi had helped it in increasing the market shares.

Bharthi employed both the market-penetration strategies and new-market segment

strategy to increase its customer base.

Weaknesses

y When the company was started by Sunil Mittal, he had little knowledge and

experience about the industry which took him more time to establish in the industry.

y For the same reason, initially the business had to outsource to experts in the field.

Opportunities

y Latest Technology and low cost advantage

y Huge untapped Rural market



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Threats

y Intense competition and shortage of bandwidth

y New players coming to India

y Saturation point in basic telephony services

y ANALYSIS OF EXTERNAL ENVIRONMENT

y Porter¶s Five Forces Models



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Internal Rivalry:

All these players compete to capture the market share.

Threat Of New Entrants:

New entrants like Uninor , Etilsat, S-tel

Rapidly changing Technology

Customer Bargaining Power

Cut throat competition Low switching cost

Less differentiation among service providers

High bargaining power of customers can be depicted

y Supplier Bargaining Power

Otsourcing dealers

Network outsourcing and maintenance by Ericcson and Nokia systems

Information technology by IBM

Call centre outsourcing by Nortel, Aegis BPO, Emphasis, HindujaTMT.

However threat of suppliers bargaining power is less for Bharti Airtel.

y SUBSTITUTES

Landline

CDMA

Video Conferencing

VOIP- Skype, gtalk, Yahoo messenger



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Email and saocial networking websites

y MARKETING STRATEGY ANALYSIS

VISION

To be globally admired for telecom services that delight customers

MISSION

y Cost

y Innovative services

y Empowered employees

y Customer service focus efficiency

Core Value Of Airtel ±

Performance

Dynamism

Leadership

Targeting

Elite class of people

Up market professionals

Entrepreneurs with business plans

Low income mass category

Youth with low tariff plans and less night call charges

Women and senior citizens by post paid connection

Advertisement

Airtel basically uses two appeals to connect to the users

Emotional

Humorous

y Provision of value added services

y Intensive distribution

y Relation ship with customer



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y Increasing brand awareness

STRUCTURE & CONTROL

The businesses at Bharti Airtel have always been structured into three individual strategic business units . (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The

mobile business provides mobile & fixed wireless services using GSM technology across 23telecom circles while the Airtel Telemedia Services business offers broadband & telephone

services.



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RELEVANTCONCEP

TS

7P¶S

y Product:

MOBILE SERVICES

Prepaid

Postpaid

Blackberry

Smart phones

Calling cards

Telemedia services

Broadband & fixed line

Enterprise services

Place:

Distribution channels

Shop in shop points at various departmental stores and life style establishments.

Price:

Airtel has customer based pricing strategies.

Flexible pricing

Promotion:

Large scale print and video advertising.

Mobile

services

Airtel

Telemedia Services

Enterprice

services



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Country: India

State: Delhi, Maharshtra, Gujarat, Andhra Pradesh, Tamil Nadu, Punjab,etc

District: Mumbai, Kolkata, Delhi, Ahmedebad, Chennai, etc.

3) BEHAVIORAL SEGMENTATIO N:

Occasions: Birthday, Marriage, Anniversary, etc.

Festivals: Rakshabandhan, Diwali, Christmas, etc.

4) PSYCOLOGICAL SEGMENTATIO N

Lifestyle: Based on people¶s way of living.

Values: According to the values of an individual.

MARKET TARGETING

y 121.63 million subscriber by 2010 elite class up market professionals women &

senior citizen by postpaid connection

y PAN-INDIA targeting

y High corporate clients

y Low income group people

y Youth with new tariffs ± youtopia campaign

POSITIONING

TAGLINE: Live every moment

Airtel has positioned itself as a leader, a premium brand and a product for premium sector. New positioning was aimed at developing a strong relationship with the customers. Airtel took

measures to add warmth and humanized touch to the brand.

Brand Personality:

Airtel has endorsed A.R Rahman as brand ambassador to impart Uniqueness, Innovation, and

soulfulness to the brand.



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Share of Mind:

It is the largest telecom company in the country and has top-of- mind recall amongst cellular

phone users and enjoyed leadership position in market. It can be primarily attributed to it¶s

strong brand building and positioning strategies

Pioneer advantage

Airtel broke new ground in telecom industry as it entered the industry first and set benchmark. It

filled the hole in customer¶s mind and was triumphant in becoming market leader.

Viral marketing :

Bharti employs Word of Mouth and Word of Mouse to create publicity and to convey new

relevant brand related information.

Repositioning:

Airtel intended to transform its image to capture a good deal of market share and to battle the

augumenting competition . It endeavored to add innovation, energy and friendliness besides its

existing image of leadership, performance and dynamism.

It started new µLive Every Moment campaign¶ and altered it¶s logo color, introduced new tariff

plans.

Brand Reinforcement and Revitalization:

Bharti focused on giving a contemporary look to Airtel connect centers with e-kiosks, facades,

collaterals, signage¶s and merchandising material. It introduced new value added services such as

SMS, smart mail, call waiting and information services.

Brand Image

Airtel has paid much attention on the following areas as part of it¶s brand image building.

Functionality Efficiency

Aggressive market expansion



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Physical presence

People¶s emotions

Pricing policy

y Value addition to customer y . Multiple pricing Points.

y Dynamic Pricingy Freedom of choice.

MAJOR ISSUES

Bharthi Airtel Cellular Services had the pioneer advantage which helped it in gaining a

considerable µshare of mind¶. But market research revealed that the µshare of heart¶ was

very less and it arrived into a conclusion that the brand was perceived as µcold and

efficient¶.

In an industry where customer relationships were of paramount importance to build up

the customer base, lacking of an emotional and humanized touch was the major weakness

for Bharthi Airtel in the initial stages of its growth.

When most of the new subscribers bought a cellular phone based on the suggestions of

their kith and kin, lack of strong customer relationships had a deep negative impact in

terms of the viral marketing strategies.

Airtel cellular services initially targeted the premium category of society who could

afford the high rates. But once the saturation point is reached, and unless the market is

expanded a brand cannot survive for long. This was another major issue Bharthi Airtel

faced which it could overcome by repositioning the brand, by featuring youth and

families in advertisements which highlighted the relationship angle and made the brand

softer and more sensitive.

For Bharthi Airtel, the distribution strategy was another grey area as far as the increase of

customer base was concerned. In a situation where the call rates are high, to reach out to

every prospective customer, creating brand awareness and communicating the value of the product was also necessary. Changing the customer perception and creating a need

and demand of the product was the need of the hour which Bharthi Airtel could

accomplish by opening one stop cellular stores, e-commerce portals etc.

At one point of time when Government has increased the tariff rates, Bharti felt the price

charged did not match the value delivered. So it had focussed only on the premium sector



who could afford the rates instead of concentrating upon customer awareness to expand

the number of customers.

RECOMMENDATIONS

Airtel has to focus on the emerging markets of Asia and Africa as these markets willcontinue to be the growth engines of the telecom world.

Along with catering to the needs of premium sectors, it also has to focus on middle class

society and once the maturity stage is reached it can even consider the bottom of the pyramid .

It can tap the rural markets as there are plethora of opportunities awaiting telecomesector.

To attain good technical expertise it may consider forming collaborations with major

foreign players. To trim down the competition BhartiAirtel can take mergers and acquisitions with weak

players in to account. With the everchanging trends Bharti also has to make timely changes in its brand value

As a market leader considering the oligopoly, Airtel miust be vigilant enough and

innovative to sustain it¶s top most position and enhance it¶s market share.

BIBILOGRAPHY

1. http://www.bhartiairtel.in

2. http://capitaline.com

3. www.moneycontrol.com

airtel_ report 14

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