Professional Documents
Culture Documents
TELECOM SECTOR
TANVI THAREJA(37)
DAPHNE JOAN
PIERCE(41)
SWADHA AGARWAL(42)
EVOLUTION OF TELECOM
INDUSTRY IN INDIA
YEARS
1999 NTP-99 led to migration from high-cost fixed license fee to low-
cost revenue sharing regime
2000 BSNL was established by DoT
Shahrukh Khan is the brand ambassador of the mobile company and Kareena
Kapoor and Saif Ali Khan are the brand ambassadors of the DTH company.
MARKET SHARE OF BHARTI
AIRTEL
Idea
cellular, 12.10 vodafone, 20.7
% 0%
RELIANCE
COM, 11.50%
BSNL, 10.20%
Bharti
airtel, 33.38%
MARKET SEGMENTATION
DEMOGRAPHIC SEGMENTATION: Airtel has divided its market on the basis of
following variables
Age: 18 to 40 years
Gender: Male and Female
Income: More than 60000 per annum
GEOGRAPHIC SEGMENTATION:
Country: India
State: Delhi, Maharshtra, Gujarat, Andhra Pradesh, Tamil Nadu, Punjab,etc
District: Mumbai, Kolkata, Delhi, Ahmedebad, Chennai, etc.
BEHAVIORAL SEGMENTATION:
Occasions: Birthday, Marriage, Anniversary, etc.
Festivals: Rakshabandhan, Diwali, Christmas, etc.
PSYCOLOGICAL SEGMENTATION
Lifestyle: Based on people‘s way of living.
Values: According to the values of an individual.
MARKET TARGETING
121.63 million subscriber by 2010 elite class up market
professionals women & senior citizen by postpaid connection
PAN-INDIA targeting
High corporate clients
Low income group people
Youth with youth club
POSITIONING
OPPORTUNITIES THREATS
In the next phase the campaign associated Airtel with Cellular only
thereafter was the Bharti Cellular connection brought up.
Vans with Airtel logos roamed the city, handing out brochures about the
company and its services to all consumers. About 50,000 direct callers
were sent out.
In the first four months alone Airtel's advertisement spend exceeded Rs.
4 crores.
As of today the awareness level Is 60% unaided.
This implies that if potential or knowledgeable
consumers are asked to name a Cellular phone
service provider that is on the top of his/her mind
60% of them would name Airtel. As for aided it -is
100% (by giving clues and hints etc.).
Airtel 's campaign strategy is designed keeping in
mind its marketing strategy. It tries to portray the
image of being a "first mover every time" and that of
a "market leader".
The population which has just realised the
importance of cellular phones has to be roped in. It
is for this reason that the service provider offers a
plethora of incentives and discounts. Concerts like
the "Freedom concert" are being organised by Airtel
Connecting with the youth
Recent strategies
Besides this, other promotional strategies that Airtel has adopted are:
(i) People who have booked Airtel services have been treated to
exclusive premiers of blockbuster movies. Airtel has tied up with
Lufthansa to offer customer bonus miles on the German airlines
frequent flier's programs.
Two separate trends are evident for pricing which are in terms
of the kind of usage by the subscriber.
1) Local or STD phone calls
2) Calls to a phone on same network or to a different network
Combining these two trends, four different usage patterns
emerge according to which a user can select the pricing plans:
1) Local calls to same network cell phone
2) Local calls to different network/landline
3) STD calls to same network
4) STD calls to different network/landline
A research by IIM-B Professors and students reveal the following.
1) For local calls to Airtel phones, the pricing is close and intertwined and there is
little difference across the plans. Similarly, for local calls to other subscribers, the
plans are quite close to each other. Certain plans have lower per minute rates but
they also turn out to be costlier throughout due to high rental. The current pricing
strategy of Airtel is thus misleading as far as mixed local usage is concerned. The
customer has an advantage if a major portion of his calls are to cell phones on the
same network but this advantage is also constrained by the specific caveats of the
plans.
When there is a mixed STD-Local usage, different plans turn up to be cheaper for
different duration of usage, but this is a difficult analysis for an average user and
could possibly be a pricing technique of the company to exploit information
asymmetry.
However, it is inferred that Airtel uses its pricing plans strategically to increase its
market share by giving customers incentives to talk to other Airtel users as it costs
less. Such a pricing strategy has a network effect, as more and more people will and
are adopting Airtel as the user base increases.
2) Docomo- The plans offered by Docomo are non-overlapping and distinct in terms
of the fixed rentals when looked at upfront. The bill that a customer has to pay
under different plans is different in each scenario, and follows the expected trend.
However, for the high rental plans, which should become cheaper for higher
usage, do not become cheap even much beyond 2000 minutes of usage. This
implies that it probably is a way for the company to charge more while giving the
perception of lesser bills per month.
PLACE
It refers to how the product gets to the customer i.e. the channel
by which a product or services is sold(e.g. online vs.
retail), which geographic region or industry, to which segment
(young adults, families, business people), etc.
PROMOTION
Use of Print Advertisement Material
Innovative TV Advertisement
Brand Ambassadors
Sponsorships
PEOPLE
The Board of Directors
The Employees
The Target Customers- Airtel has poitioned itself as an aspirational
and lifestyle brand, in a way that trivialises the price in the mind of
the consumer. It pitches not merely as a mobile service provider, but
as something that would give a customer certain badge value.
PHYSICAL EVIDENCE
The physical environment plays an important role in shaping the
service experience and delivering the customer satisfaction.
PROCESS
Process innovations and continuous improvement through people
involvement.
KEY FACTORS:
• Inadequate marketing research orientation
• Lack of upward communication
• Insufficient relationship focus
• Inadequate service recovery
Service Standards Gap – Not having right standard and
design:
The Company's failure to translate accurately customers'
service
expectations into specifications or guidelines for employees.
Key Factors –
Poor service design
Absence of customer-defined standards
Inappropriate physical evidence and Servicescape
Service Performance Gap—Delivery lag: Lack of
appropriate
internal support systems
(e.g., recruitment, training, technology,
compensation) that enable employees to deliver to services
standards.
KEY FACTORS—
• Deficiencies in HR policies
• No matching Supply & Demand capacity
• Customers failed to meet their roles
• Intermediaries problem
Internal Communication Gap – Promises don‘t match:
Inconsistencies between what customers are told the service
will
be like and the actual service performance.
KEY FACTORS–
Lack of Integrated services marketing communication
Ineffective management of Customer expectation
Over promising
Inadequate horizontal communication
BHARTI AIRTEL: GAPS &
EXPLAINATIONS
1. Consumer Perceptions – Perception is the process of
selecting, organizing and interpreting information inputs
to produce meaning. Information inputs are the sensations
received through sight, taste, hearing, smell and touch.
The Call Plan should consider this with high importance, some
mobile operators are considering this factor, but there is no still
Customer analysis or segmentation done. Group dynamics
consideration should be taken care in closing Gap 3.
5. Customer Service Quality analysis— Extensive qualitative and
empirical research-spanning multiple phases, covering a variety
of sectors, and involving a number of companies-suggests the
following general insights about how customers assess service
quality.
Employee Management