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BSNL was established in the year 2000 as a successor to DOT and since its inception; it has
been delivering telecommunication services to the nation.
BSNL is one of the largest telecom service providers in India which provides a quality
network across India, especially in rural areas. Its focus has always been on reaching out to a
wider audience especially in rural areas which are still not connected with the urban areas.
BSNL, with its improving infrastructure, supports 20 million mobile and computer
telecommunications customers across rural areas. With its current focus on enhancing
internet penetration, it has garnered great customer satisfaction. It also has a unique feature of
no roaming service throughout the country.
Marketing Mix
BSNL, being the leading telecom company, has strong backing from the Government of
India. It provides its customers with a range of telecommunication and internet services.
Some of the products are:
• GSM Mobile Services including 3G, 4G & Value added Services (VAS)
• Internet and Broadband services including Fibre to the Home (FTTH)
• Wi-Fi services
• Data Centre Services
• Enterprise Data Services such as Leased circuits, MPLS VPN etc.
• National Long Distance Services
• International Long Distance Services
• Wire Line services
BSNL is focusing on enhancing its internet service by increasing its range and giving its
users greater bandwidth. This will help BSNL with its premium offerings to ensure customer
loyalty. It aims to keep up with the growing technology to sustain itself in the market and
satisfy the needs of its customers.
The key goal of the BSNL product strategy is to keep up with the increasing hardware
technology that is continually evolving with innovation to retain and fulfil the needs of its
customers. BSNL needs to continue improving its services.
Price
BSNL, being state-owned, ensures if every section of the society could avail its telecom
system. So, the prices of BSNL are low and quite reasonable. The usage charges to tariff and
cost incurred during installation are some important factors to ponder upon while making the
pricing policy. Some highlights for the same are,
Usage ranges are set up to decide the rate to be charged
The price of the BSNL service differs with client use
Users with a higher usage range, are offered discounts or special deals to lure them and
reduce their cost. Special timings are allotted to them when the calls cost less
Consumers are offered lifetime cards which helps them maintain their future revenue flows
‘Value for Pricing’ can help BSNL fix its pricing policy. It will help in the penetration of the
market, increases brand value, promotes brand loyalty, and also increases focus on customer
services.
Place
BSNL has the distinct benefit of being the principal supplier of telecommunications services
in the country and the oldest. It has established networks in all parts of the country and
upgrading them time and again to bridge the communication gap between the remote rural
areas and urban areas. Highlights of its place and distribution strategies are:
The massive and complex network spread throughout the country
Built a channel management team to increase the service capacity and network coverage
In remote locations, it has been able to establish telecommunication services and facilities
Also formed partnerships with only a few networks and IT companies to boost its network –
Cisco, Ericson, Compaq, and HP
Established nationwide call centres for providing solutions to the consumers
Promotions
BSNL primarily uses the old-school techniques of marketing. Having loyal consumers on
board, their promotion is quite bounded. With an increase in competition in the telecom
industry, they tried to revamp their company by taking various steps. Some of them are:
Came up with their slogan for brand visibility, “Connecting India, Faster”
Advertising: BSNL uses various forms of advertising to promote its products and
services. It uses print, television, and digital media to reach its target audience. The
company also uses outdoor advertising like billboards and hoardings to grab the
attention of potential customers.
Discounts and Offers: BSNL frequently introduces special offers and discounts to
attract customers. These may include free data or talk time, reduced call rates, and
discounted broadband plans.
Events and Sponsorships: BSNL participates in various events and sponsors different
programs to promote its products and services. It also collaborates with other
companies to offer bundled packages to customers.
Social Media: BSNL uses social media platforms like Facebook, Twitter, and
Instagram to engage with customers and promote its products and services. The
company also uses these platforms to address customer grievances and queries.
Customer Referral Programs: BSNL offers referral programs to its customers,
encouraging them to refer their friends and family to the company's services. This
helps the company increase its customer base and retain existing customers.
New promos on social media
New schemes were adopted. Some of them are,
Machines for depositing cheques
Easy payment services
All-time available service centres
Actors and Sportsperson like Mary Kom, Priety Zinta, and Deepika Padukone are associated
with BSNL as brand ambassadors
BSNL has to work more on its promotional strategy and develop as per the trends to sustain
in the market.
After understanding the marketing mix of BSNL, having a decent amount of knowledge
about your competitors is a must!
While BSNL may have lost a lot of ground, with newer technology coming in, it still has the
chance to bounce back. In 5G, for example, it will play a major role in providing connected
services for not only individuals but also computers.
BSNL has the distinct benefit of being the principal supplier of telecommunications services
in the country and the oldest. Therefore, BSNL has the highest market share of fixed-line
operators.
With nearly three million users, the Internet has become one of the most significant
communication platforms.
Let’s see where BSNL stands when compared to other telecommunication giants in “Fastest
Broadband Internet Speed Analysis- 2019”
According to the image above, Jio Fibre provides the fastest broadband. Whereas, BSNL is in
the 14th reposition of this chart, being trailed by only one other service provider, TATA
Communications.
BSNL needs to take some urgent effective measures to drag itself up the leaderboard. It needs
to analyze its internal factors to get back up on the leaderboard. Let’s take a deeper dive into
the company with a SWOT analysis.
Understanding the internal factors of the company will help you influence your ability to take
advantage of an opportunity. Let’s dive into it.
Strengths
Backed by government
Extensive infrastructure in remote areas
PAN India reach
Vast experience
Strategic alliances with IT and hardware companies
More than 65% market share in rural India market
Excellent network coverage across India
More than 90 million people are subscribed to BSNL
Huge optical-fibre infrastructure
Weakness
Decreasing market share
Unable to retain customers
Poor service image and innovation
Unproductive rural assets
Not able to optimize network capabilities
Poor working culture of government institutions
Limited brand visibility and low brand loyalty
Threats
Massive and tough competition
Government regulatory framework
Mobile number portability
Expensive network roll-out
Low-income subscribers
Lack of electricity in rural areas
Opportunities
Privatization of BSNL
Strategic partnership with smartphone companies
Partnering with other telecoms
Customer retention
Improving upon intangible capabilities (skill, motivation, knowledge & ageing workforce)
BSNL suffers from the uncompetitiveness of its business model. Backed by the government,
the organisation tends to make socially driven business decisions rather than profit motive
driven solutions. According to our SWOT analysis, the organisation needs to heavily
restructure itself and cut down its massive workforce and invest in better technology to keep
up with the pace of the competition.
Another aspect of a business is its marketing strategy. Let us take a deeper look into BSNl’s
marketing efforts.
BSNL uses different outlets for ads, such as TV, print, online, hoardings, etc. BSNL
promotes in a very limited way, with plenty of loyal customers. But it has recently begun
promotion with the emergence of so many rivals in the telecom industry by coming up with
new logos, catchy slogans such as connecting India, new and distinct brand names for
BSNL’s various services.
With the upcoming digital age, a few promotions have also begun on various social media
platforms. It promotes its innovative programs, schemes, and discount deals, both on social
media platforms and through conventional banner offers at various retail outlets, newspapers,
etc.
On Instagram and Facebook,
Promotes their services which are provided in their plans such as eros now subscriptions
Interaction through festive posts
Tips and tricks provided to avoid internet threats
Contests following the Meet & Greet are held
Posts are in Hindi also, to target a larger consumer base.
Engagement with their followers is nearly equal to zero as there are no such activities or
campaigns carried out on either of their social media platforms.
BSNL has been on Twitter for a long time now. The interaction they produce is not even near
to the mark.
@BSNLCorporate: This account is managed by a small Digital Media Consulting company,
Golden Phoenix which came into existence in 2010
Golden Phoenix themselves don’t tweet. Their Twitter handle includes automatic updates
from their Facebook wall and has barely 8 followers
They retweet the news articles which are about them
Their tweets are the same as the posts on Instagram and Facebook
The world is moving rapidly. Having a powerful digital presence will help BSNL to put itself
out to the general masses and thereby, build trust.
Pain Points
After understanding BSNL and it’s marketing efforts from multiple angles, let us now look at
a summary of all the issues faced by the organisation, according to our research. Focusing on
these pointers could help the firm, switch gears and drive on the right track.
Besides an assured job, there are no rewards and recognition for the workforce which is not
motivating people to work at their maximum capability
Lacks the new, young, and energetic workforce
The monopoly attitude of BSNL is not changing even with such a high level of competition
BSNL lacks in the physical processes which need to be very easy and accessible from any
region where services are available
They should focus on Value Added Services, building a strong distribution chain
Differential treatment to premium/corporate customers
Unsatisfactory marketing strategies
Lousy Digital Presence
Inadequate investments
It is losing customers and quality
Declining market share