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Rahul, Priyanka, Zardar, Rashmi Indian Institute of Planning & Management Ahmedabad
“…Telecoms are rolling out like never before. And that 100-million mark doesn't look too far away. The mobile subscriber base crossed 65 million in September 2005, an over-30 per cent increase over the previous year…”
• Indian Cellular Industry will touch $24 billion by the end of 2006. • Airtel (22 per cent market share, over 15 million mobile subscribers, source: Cellular Operators Association of India) witnessed its highest-ever net addition of 1.8 million mobile customers in a single quarter.
Project Introduction Cont‟d…
• Hutch, with over 10 million subscribers (15 per cent market share) may be No. 4 (behind Reliance and BSNL) at present, but it has the highest average revenue per user.
Root Cause Analysis" .AirTel Marketing Strategy Business Process Management Process Innovations and Continuous Improvement through People Involvement Problem Investigation by "Fact Based .
AirTel have webbed many business processes on the following concepts: Delivery time Turn around time Lead-time Time to market Other performance indicators .Cont‟d… Customer-Defined Business Processes Based on Customer Specifications.
. The targeted results are then arrived at through identification of the following: The next-customer and end-customer expectations.AirTel Marketing Strategy Cont’d… Result Oriented Approach Each process has been designed by first planning the desired result. Past experience of "What went wrong and can go wrong". Quantifiable purpose of the process and key result areas.
chief marketing officer (mobility) and director.“ – recalls Hemant Sachdev.AirTel Marketing Strategy Cont’d… Naturally. "We positioned AirTel as an aspirational and lifestyle brand. It was pitched not merely as a mobile service. in a way that trivialized the price in the mind of the consumer. . up market professionals and entrepreneurs. Bharti Tele-Ventures. but as something that gave him a badge value. the target customer was clearly defined: elite.
cellular service operators could drop their prices and target new customer segments. replacing licence fees with a revenue-sharing scheme and extending the licence period from 10 to 20 years. the rules of the game changed. The New Telecom Policy came into effect. • Now. . As SEC B became part of the catchment area. Airtel's communication changed from "power" to "touch tomorrow".AirTel Marketing Strategy Cont’d… • In 1999.
perhaps. the most downloaded ringtone in India. . But that was just part of the ongoing communication.AirTel Marketing Strategy Cont’d… • In 2002. Airtel signed on music composer A R Rahman and changed its tune to "Live every moment": Rahman's signature tune for Airtel is.
– 30th Oct 2006 . Source: IE Market Research Corp. • While this is lower than many of its competitors.14 Pages ID: IEMR1370648 . with 30.8% of our respondents able to identify it as a mobile brand unaided.AirTel Brand Review • AirTel has the most recognizable brand in the Indian operator space. examination of the various brand strength indicators shows AirTel has a much stronger brand than its competitors do.
and 22% with “technically advanced”. Between 2004 and 2005. it has increased its market share from 20. 27. Source: IE Market Research Corp.4% identified AirTel with “cool”. – 30th Oct 2006 .6% of respondents identified AirTel with “cheap”.14 Pages ID: IEMR1370648 • .5% of the market. Only 8.5% to 21. 26% with “creative”.AirTel Brand Review cont’d… • Of respondents.
AirTel Ad Campaigns .
Again. the future's orange'…” . the brand's slogan was 'The future's bright. the colour orange was a seminal attribute.Hutch Marketing Strategy “…A big success factor was how aspirational overtones in brand imagery stayed. even though price wars had started.
When Hutch launched the Abby-winning "Wherever you go our network will follow'" ad. viewers believed that was Hutch's new slogan.Hutch Marketing Strategy Cont’d… “…The new brand name also heralded the arrival of a new mascot. but it was just one brand attribute …” . the "Hutch" pug.
Hutch Alive (non-stop.have formed as critical a part of Hutch's marketing efforts as its advertising. streaming action) Hutch4Help. a unique dial-in 'convenience' service. . all emphasize the premium attributes of the service. which will also help mobilize small spenders. • • • • Hutch World (GPRS service). Chhota Recharge.Hutch Marketing Strategy Cont‟d… Value-added services • "Privileges" (discount coupon booklets). cricket scores and stock market information . small value recharge cards (starting at Rs 10).
Hutch Mobile Shop .A great initiative .
Hutch Ad Campaigns .
Marketing Research Analysis Which card is used. 21% 0% 50% 29% HUTCH AIRTEL BSNL TATA INDICOM IDEA .
Marketing Research Analysis Cont’d… Service provided by the customer care 4% 4% yes. can't say 92% . I m satisfied. no. not satisfied.
can't say . I m satisfied. no.Marketing Research Analysis Cont’d… network connectivity yes. not satisfied.
Marketing Research Analysis Cont’d… Quality provided by Service Provider 0% 39% 61% can't say yes. no. . not satisfied. I m satisfied.
I m satisfied. can't say . not satisfied.Marketing Research Analysis Cont’d… Billing System 21% yes. 49% 30% no.
Marketing Research Analysis Cont’d… Card do you prefer 48% 52% prepaid postpaid .
33% 57% no. I m satisfied.Marketing Research Analysis Cont’d… Cost satisfaction 10% yes. not satisfied. can't say .
and Berry (hereafter.SERVQUAL model The Measurement and Evaluation of Service Quality . The measurement was developed by Parasuraman. PZB) in 1985. Zeithaml.SERVQUAL model: Service Quality = (Performance – Expectation) The word „SERVQUAL‟ is an abbreviated form of service quality. .
P 1999 Marketing Management. Dependably and accurately . personnel and communication materials. Millennium Edition Prentice Hall) Dimensions Tangibles Descriptions The appearance of Physical facilities. The provision of caring individualized attention to customers Empathy . Assurance The knowledge & courtesy of employees and their ability to convey their trust and confidence.Five Dimensions of SERVQUAL Model (Revised from Kotler. equipment. The ability to perform the promised service. Reliability Responsiveness The willingness to help customer & provide prompt service.
representing perceived service quality was found by subtracting the expectation score from the corresponding performance (or perception) score (Q = P – E) .SERVQUAL Model Methodology • The raw data used in computing coefficient alpha were in the form of difference scores. • A difference score for each item Q.
customers seem satisfied with the 'ability to make and receive calls in any part of the city'.Research Findings • GSM service providers (cellular). in basements or in lifts. . the service providers have fallen short in meeting customers expectations when it comes to coverage within buildings. however.
.Research Findings Cont’d… • The corporate image of the service provider continues to be an important aspect in driving retention and most service providers have been successful in building a positive and favorable image among the subscribers.
being promptly delivered is something that the customers seem to be taking for granted and have little impact on retention. On the contrary. .Research Findings Cont‟d… • The study also revealed that 'Error free' and 'accurate' bills. non-delivery on these could cause a lot of disgruntlement and unhappiness with the service provider.
Research Findings Cont‟d… • Another revelation was that customers seemed very peeved with the amounts they had to pay for local and STD calls. .
their 'ability to resolve complaints/ queries in the first instance' . These include 'time taken before someone attends to you'.Research Findings Negative Outcomes The cellular industry has performed below average in various aspects related to • 'customer care / helpline'.
..Research Findings Negative Outcomes Cont‟d. • 'overall time taken to resolve complaints'. call center personnel's ability to take decisions. • • 'knowledge of customer care personnel about tariff plans and schemes' and 'the promptness in taking action on complaints'.
while Hutch has veered towards warmth and emotions…” . but there are differences in approach. Overall. schemes and so on. AirTel is focused on functionality and efficiency. Alchemist Brand Consulting “.Samit Sinha.There isn't a great deal of differentiation in terms of pricing.. services. Managing Partner.
However. then AirTel would rank reasonably high…” .Meenakshi Madhvani. if you consider adoption of the service by consumers as an indicator of brand strength. Managing Partner. Spatial Access • “… it would not be right to conclusively say that Brand A is stronger than Brand B.
What matters is what the customers want.Mittal.." . CEO Bharti Teleservices .•“..
Other Indian Cellular Service Providers .
Thank You .