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Marketing Strategies of Airtel &
Its impact on Customers
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Index
Introduction to Indian Telecom Industry
Introduction to Bharti Airtel
Marketing Strategies Porters 5 forces analysis
SWOT Analysis
Research & Findings Conclusion & Recommendations
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INTRODUCTION
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Evolution of Telecom In India
Go-ahead tothe CDMA
technology
INDIA
Private playerswere allowed inValue AddedServices
NationalTelecom Policy(NTP) wasformulated
1992
1994
1997
Independentregulator, TRAI,was established
NTP-99 led tomigration from high-cost fixed licensefee to low-costrevenue sharing
regime
1999
2000
2002
BSNL wasestablishedby DoT
ILDservices wasopened tocompetition
Internettelephonyinitiated
Reduction oflicence fees
2003
Calling Party Pays(CPP) wasimplemented
Unified AccessLicensing(UASL) regimewas introduced
ReferenceInterconnectorder wasissued
2004
Intra-circle mergerguidelines wereestablished
Broadbandpolicy 2004wasformulatedtargeting 20millionsubscribers by2010
2005
FDI limit wasincreased from49 to 74 percent
Attempted toboost Ruraltelephony
2006
Number portabilitywas proposed(pending)
Decision on 3G
services (awaited)
2007
Department of Telecommunication (DoT) is the main body formulating lawsand various regulations for the Indian telecom industry.
ILD International Long Distance
Numberportabilityapproved
2009
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CDMA Already there are big
players in this segment
Reliance , Tata
3G Value added servicespotential still to be tapped
fully
2G/3G GSM Currently
commands 70% of mobilesubscribers in India
Technology
2G/3G
CDMA
WIMAX
VoIP
Technologies
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Bharti Airtel
Initially as Bharti Tele-Ventures in 1995 Later changed to Bharti Airtel limited in 2006
Bharti Airtel has nearly 230.8 million total
customers (171.8 million in India)
Broadband & telephone services in 20 countries .
Bharti Airtel third largest player in the world
Has presence in all 23 circles of India
Headed by Mr. Sunil Bharti Mittal
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PORTERS 5 FORCES
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Porters Generic Strategy
Differential Strategy Cost Leadership
NarrowMarketScope
BroadMarketScope
UniquenessCompetency
Low CostCompetency
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Porters 5 forces
Threat fromCompetition
CustomerBargaining
Power
Threat ofSubstitutes
SupplierBargaining
Power
Threat ofNew
Entrants
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1. Threat from Competition
Wireless Market Top 4 garnering 75% market share
HIGH
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2. Customer Bargaining Power
Lack of differentiation among Service
Providers
Cut throat Competition
Low Switching Costs
Attractive Schemes for new connection
Availability of all operators everywhere
Difficulty to differentiate Brand Number Portability will haveVe Impact
Businesses & Consumers
HIGH
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3. Suppliers Bargaining Power
LOW
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4. Threat of Substitutes
Landline
CDMA
World Phone
Video Conferencing
VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites
BROADBAND
SERVICES
DIMINISHING MARKET HIGH
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5. Threat of New Entrants
Low Because
Huge License Fees to be paid upfront & High
gestation period
Entry of MVNOs & WiMAX operators Spectrum Availability & Regulatory Issues
Infrastructure Setup Cost - High
Rapidly changing technology
Previously Low,
Now High
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5. Threat of New Entrants
High Because
Entry through 3G
New Entrants are ready to enter with Huge Capital
Considering the attractiveness of the market Increase Of FDI to 76% bringing competiton from
Foreign players
New Entrants from Non telecom companies with
the ease of Outsourcing
Previously Low,
Now High
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MARKETING
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TARGETING
Elite
Up market professionals
Entrepreneur with business plans Low income mass category
Youth
Women and senior citizens by post paidconnection
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POSITIONING
Power to keep in touch Touch tomorrow
Live every moment
Express yourself
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THE FIRST MOVER ADVANTAGE
Electronic recharge
Hello tunes
Airtel Live!
Portfolio manager
Song catcher
Easy music
Black berry handsets
M-check
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First Mover Advantage
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RURAL STRATEGIES
Airtel follows Match-box strategy
The firm expands regularly in Bihar,
piggybacking on 300 distributors and more
than 50,000 retail outlets selling Airtel prepaid
cards
Covers over 4,00,000 villages and hopes to
expand to other 1,00,000 by 2012
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Marketing TOOLS
Advertisements
Sales promotion
Publicity and events
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The Ad diagnostics
score helps to
understand how farthe Ad has been able
to break the clutter
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SWOT
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SWOT
Strengths
Largest Telecom Player in India -~80Mn, 22.6%
Market Leader
Strong Leadership
Sunil BhartiMittal
Recognized Globally
Pan India Presence
Strong Financials
Focus on Core Activities
Outsource the rest Strong Brand Image Marketing
Team
Innovative
Weakness
Outsourcing of Core Systems
Less Product Clarity
High Call Rates
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SWOT
Opportunities
Bharti Infratel CuttingDown cost in Rural area
Match Box Strategy Scaleof Penetration
Current Tele-Density46.7% is still low amongdeveloping countries
Low BroadbandPenetration, RuralTelephoney
Threats
India centric Major
revenues from India
Falling ARPU & AMOU
Intense Competition &
Shortage of Bandwidth
New Players coming in India
Uncertain Economicconditions
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RESEARCH & FINDINGS
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Research Objective
Study the brand positioning and perception of Airtel. Comparative analysis with other company. Strategies adopted for it.
Factors influencing the customer to stick with theirnetwork. Features needed every customer. Efficiency in providing after sales services. Factors in increasing sales.
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Analysis & Interpretation
32%
24%
14%
12%
16%2%
AIRTEL VODAFONE IDEA
TATA RELIANCE OTHERS
CONNECTIONS USED BY PEOPLE
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Analysis & Interpretation
BASIS FOR CHOOSING OPERATOR
15%10%
4%
70%
1%
ECONOMICAL PROMOTIONAL
VALIDITY OPTIONS NETWORK COVERAGE
OTHERS
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Analysis & Interpretation
0
5
10
15
20
25
30
35
40
NO. OF
PEOPLE
YES NO CAN'T
SAY
Series1
Do you give preference to advertisement forchoosing your operator?
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Analysis & Interpretation
65%
25%
7%3%
excellent good average poor
What do you think about the Airtelsadvertisements?
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Analysis & Interpretation
55
20
10
5
10
0
0 20 40 60AIRTEL
VODAFONE
IDEA
TATAR
ELIANCEO
THER
S
OPERATORS
NO. OF PEOPLE
Series1
Which operator would you prefer
(except yours)?
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Findings
Airtel enjoys high market share
Expensive and confusing plans of 3G
Network Connectivity
Attractive Advertisements
Major competition with Vodafone
Good market image 36IIPM
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Conclusion
AirTel has the most recognizable brand in the Indian
operator space, with 30.8% of our respondents .
Of respondents, 27.4% identified AirTel with cool,26% with creative, and 22% with technically
advanced. Only 8.6% of respondents identified
AirTel with cheap.
It has increased its market share from 20.5% to33.5% of the market.
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Recommendations
Improve 3G Plans
Pay attention over Quick resolution
Reduction in Tariff Prices
Focus on Customer satisfaction
Availability of vouchers
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References
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Books:-Marketing Management Philip KotlerMethods of Social Survey & Research S R Bajpai
Journals:-The Times Of India
Economic TimesBusiness Standard
Websites:-www.airtel.inindiatelecomnews.com
www.telecomindiaonline.comwww.moneycontrol.com
Individual:-Mr. Avinash Dwivedi
Assistant Manager
Airtel
http://www.airtel.in/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.airtel.in/ -
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Thank You!!!!!!!
Prepared By:-
Avinash Pandey
Alok TripathiAlok Dwivedi
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