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Marketing
Management: case 6

Mohammed Yaseen Qureshi

PES1202202920
MBA ‘C’ Section
December 23, 2022
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1.
The telecom industry in India has always been very competitive. When we talk about the 2
decades earlier, until 1994, telecom industry in India had not made any much developments
and was running into the old traditional way of telecommunications like providing a basic
telephone in few areas and that’s it. It was after the establishment of national
telecommunications policy in 1994, which created independent regulations and made
possible the entry of private service providers. BSNL was the first private telecom company
established in 2000. Huge FDI were taking place in India where many overseas companies
like one plus, xiaomi etc had been planning to set up their manufacturing plants in India. This
happened when India recorded FDI flow of $18.3 billion by January 2015 from April 2000.
Looking at the competitive and profitable telecom market in India, government launched
make in India program, which interested ad attracted the foreign investors in investing into
the market. This government initiative promoted the local smartphone manufactures of
smartphones and a 23% year on year growth was recorded by the end of third quarter of
2016. Any new entrant into the Indian telecom market needs to know that what seems
profitable to their vision also has the darkest risky side. The existing telecom industry in India
is solely occupied by reliance jio, airtel and Vodafone-idea with 88% of market share. Trying
to penetrate into this market is very risky because there is a very good foundation of these
networks and its nearly impossible to get compete with them. Investing or merging with these
networks in some subdivision is more advisable to the new entrant in order to stand strong
and make good base in the market.

2.
Indian telecom industry has been into price war from a few years since the launch of reliance
Jio. Every individual telecom company has been trying its best to defend itself and push itself
on the top. The Indian telecom companies try different plans and strategies to compete with
their competitors.
Bharti airtel:
Bharti airtel introduced airtel app which combines all their digital assets into 1 application.
Users can recharge and pay their own bills or their family bills from the same application.
They can also select and personalise their ringtones, caller tunes, data limits and much more
with this application. Bharti airtel has a very long existence in the country and have gained
the trust of people quite well in India. Pricing of airtel subscription plans is very similar to
that of its competitors. But airtel offers more than just talk time and data. All the airtel users
get to enjoy the music application named Wynk free of cost. They can also use it to set their
favourite caller tune. Without any charges. Airtel has a wide target audience. Airtel has few
subscriptions known as family subscriptions where the numbers of the airtel users in family
members club their post-paid bills into one bill which offers them many offers and discounts
and many benefits. Airtel aims to provide the best quality of network to its users and is
investing every now and then for a better technology to ease the connectivity.
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Vodafone and Idea:

Vodafone and idea have merged together to perform well and regain its lost customers
because of the lack of good service to its customers. Vodafone and idea merger is named as
VI. VI has also developed an application of itself like the airtel app. It offers the option to
recharge their subscriptions anywhere anytime and much more. VI is striving hard to gain
their market back and has also developed in a positive direction.

Jio:
Reliance Jio was the telecom company which brought the price of the data subscriptions
down to the bottom by introducing its offer into the market. 1/3rd of the pricing of what
existing competitors were selling for. Jio appointed famous celebrities and personalities to
promote their brand and advertise. Jio launched an ecommerce fashion application named
AJIO as an expansion of their brand. Jio in their initial days started delivering SIM cards to
the homes of its consumers to gain trust and gain market share. Jio introduced a smartphone
which was of a good and decent quality featuring 4G when existing mobile phone companies
were selling their 4g model mobile phones at 4x of Jio’s introduced smartphone LYF. Jio
bundled all its services into one application and attracted itself to the eyes of the users. Users
also got 1 year of free data and talk time with the purchase of each LYF smartphone.