Advertising Strategy of Airtel
Advertising Strategy of Airtel
Advertising Strategy of Airtel
AIRTEL "
To know how the company has been successful in encountering the aggressive marketing strategies of competitors
Target geographic area. Sample size of 50 was taken To these 50 people a questionnaire was given, the questionnaire was a combination of both open ended and closed ended questions.
The date during which questionnaires were filled. Some dealers were also interviewed to know their prospective. Interviews with the managers of GSM service providers were also Conducted.
Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given.
DEFINITIONS ________________________________________________________________________
Definition of Advertising Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc. Definition of Promotion Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. Definition of Marketing Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. Thus, a marketing plan for one product might be very different than that for another product. Marketing activities include "inbound marketing," such as market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc. Inbound marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), and pricing your products and services. "Outbound marketing" includes promoting a product through continued advertising, promotions, public relations and sales. Marketing strategy Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.
Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement Basic theory: 1. Target Audience 2. Proposition/Key Element 3. Implementation
Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:
Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension ofFocus-broad or narrow.
Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:
1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of these roadblocks / current position is tabulated below:
ROADBLOCKS CURRENT POSITION High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees. Inadequately funded businesses / weak and fragmented promoters Businesses that have since been adequately funded growing at over 60% per annum, while businesses with weak promoters are continuing to languish - spate of acquisitions / mergers, with 4/5major groups emerging in the last one/two years. Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Deptt of Telecommunications(DOT) restructured, with operations and policy making roles vested in different bodies. Issues relating to unfavorable interconnect terms for private operators, pass through income, intra circle long distance, spectrum availability and allocation and the like remained unresolved for long periods. Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared with vacation of frequencies for usage by GSM operators. Problems in Financial closures due to: Licensing tenure of 10 years Large up front cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial Institutions.
Licensing tenure increased from 10 to 20 years. Large up front cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial institutions
Telecom (mid-2000)and Fascel (September 2000). Through a partnership with local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel and Usha Martin Telecom, thus circumventing the49 percent limit on foreign ownership in Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into one entity. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea cellular with one each. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made any headway. BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002.This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid October. Once BSNL rolls out its service, most telecom circles will have four cellular operators. There will be tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected, which will drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial public offering (IPO) in January 2002.Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular services. As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question.
Building visibility and awareness Deviating from competing on the price platform, cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility. Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food and beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops. Enterprise mobile applications promising revenue stream All along, customer acquisition and the top line have been the focus. Few operators have concentrated on offering differentiated services for businesses. However, as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now seriously looking at the enterprise segment for provisioning superior services. Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and instant alerts are being offered. A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can be barred, limiting access to select numbers and diverting calls to one single number. Broadcasting services are also quite popular, especially among fast-food centers that have a central number. Group SMS is quite popular, especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward transactional alerts to their customers.
1.3 FUTURE TRENDS AND DEVELOPMENT There will be more competition, forcing operators to constantly focus on differentiations to maintain their lead. The implementation of enhanced networks like 3G will enable operators to offer data services. This is an opportunity to customize and differentiate better. The entry of state-run operators like BSNL and BHARTI means that prices will no longer be controlled, thus there is less chance of a cartel being formed. Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. The bigger the service provider's national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous. Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.
Company Profile
________________________________________________________________________ Bharti Tele-Ventures
Bharti Tele-Ventures is one of India's leading private sector providers of telecommunications services based on an aggregate of 28,692627 customers as on September 30, 2006, consisting of 27,061,349 GSM mobile and 1,631,278 broadband & telephone customers. The businesses at Bharti Tele-Ventures have been structured into three individual strategic units (SBUs) 1) mobile services 2)broadband and telephone services (B&T) 3) enterprise services The Mobile services group provides GSM mobile services across India in 23 telecom circles, while B&T business group provides broadband & telephone services in 94 cities. The Enterprise Services group has two sub-units carriers (long distance services) and services top corporate. All these services are provided under the Airtel brand. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 16 states covering all four metros. It has over 12 million satisfied customers. Bharti Enterprises has successfully focused its strategy on telecom while straddling diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to becoming the largest manufacturer and exporter of world class telecom terminals under its' Beetel' brand, Bharti has created a significant position for itself in the global telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of India's finest companies, and its flagship brand 'Airtel', has over 12 million customers across the length and breadth of India. While a joint venture with TeleTech Inc., USA marked Bhartis successful foray into the Customer Management Services business, Bharti Enterprises dynamic diversification has continued with the company venturing into telecom software development. Recently, Bharti has successfully launched an international venture with EL
Rothschild Group owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and USA.
AIRTEL
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. A consortium ofgiants in the telecommunication business. In it's six years of pursuit of greater customer satisfaction, AirTel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care.
Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 12 million satisfied customers.
Cellular telephony was introduced in India during the early 1990s. At that time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only postpaid services. Initially, the cellular services market registered limited growth.
Moreover, these services were mostly restricted to the metros. Other factors such as lack of awareness among people, lack of infrastructural facilities, low standard of living, and government regulations were also responsible for the slow growth of cellular phone services in India.
Although the cellular services market in India grew during the late 1990s (as the number of players increased and tariffs and handset prices came down significantly) the growth was rather marginal. This was because the cellular service providers offered only post-paid cellular services, which were still perceived to be very costly as compared to landline communications.
Following this realization, the major cellular service providers in India, launched pre-paid cellular services in the late 1990s. The main purpose of these services was to target customers from all sections of society (unlike post-paid services, which were targeted only at the premium segment). BHARTI TELE-VENTURES IS THE BEST INDIAN CARRIER AT THE TELECOM ASIA AWARDS 2006.
AirTel: Appropriating the value of 'expression' Over the last couple of years, the market has grown considerably, with deeper penetration and wider usage of voice and data services, accompanied by much higher competitive intensity," Atul Bindal, chief marketing officer, Bharti TeleVentures, expands on this. "In this context, differentiating merely on network, coverage and SMS is just not enough. You need to go beyond all the rational identifiers which are prerequisites in any case - and connect at a deeper level. We needed a strong differentiator in an increasingly commoditized and crowded market. We found this differentiator in a core human truth that defines our category - which is that there are moments when you need to make your point, when you need to be heard. Expressing and communicating are perhaps two of the most basic emotions. Air Tel enables you to make your point in the most expressive way, anytime, anywhere. The campaign is towards owning this through 'Express yourself.' We believe 'Express yourself' allows us to connect at a deeper level and create a long-term platform for the brand." For AirTel, the challenge also lay in presenting a unified 'face' to the consumer. This assumes significance when viewed in the light of the company's pre- and post-paid communication, which, in the past, had been treated very differently. Brand image, as a result, was being driven in two different dimensions. "Brand AirTel is a category leader straddling completely different market segments such as consumer, business and corporate, as well as different voice, data and payment platforms," says Bindal. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers." One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought. "The moment you have as broad a canvas as 'Express yourself', it becomes easy for anyone working on the brand to come up with new ideas and executions. That's what makes a good campaign idea," observes Rediff's Prashant Godbole, who, along with creative partner Zarvan Patel, conceived the campaign. This is just the proverbial tip of the iceberg, Patel adds. "We will be taking the idea forward in many different ways in the forthcoming work," he informs. Patel also credits his creative team for "fleshing out the idea". In October 2002, Magic led the market, with 30% of the market share. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. However, given the increasing competitive pressure, doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future.
RESEARCT METHODOLOGY
____________________________________________________________________________________ MARKETING RESEARCH Definition of marketing research is approved by the board of the American Marketing Association (AMA) is: Marketing research is the functions which links the customer and public to marketer through information used to identity and define marketing opportunities and problems; generate define and evaluate, marketing actions, monitor marketing performance, and improve understanding of Marketing as a process.
Simply, marketing research is the systematic design, collection, analysis and reporting of the data findings relevant to a specific marketing situation facing the company. Careful planning through all stages of the research is a necessity.
Objectivity in research is all- important. The heart of the scientific method is the objective gathering and analysis of the information. The function of marketing research within a company is to provide the information and analytical inputs necessary for effective.
Planning of future marketing activity. Control of marketing operations in the present. Evaluation of marketing results.
A research may undertake any of three types of research investigations depending upon the problem. These three types of research included. Basic research Applied research Designated fact gathering
BASIC RESEARCH It is also known as the pure fundamental research which refers to those studies, sole purpose of which is the discovery of new information. It is conducted to extend the horizon in given area of knowledge with no immediate application to existing problem.
APPLIED RESEARCH It is an attempt to apply the various marketing techniques, which have been developed as research, first and later on they become applied research techniques. It is an attempt to apply the basic principles and existing knowledge for the purpose of solving the operational problems.
DESIGNATED FACT GATHERING It refers to a research where the investigator attempts nearly to gather some predetermined data.
DEFINE THE PROBLEM AND RESEARCH OBJECTIVES In a very sense, this is the heart of the research process. This is the first step, which calls for the marketing manage and marketing research.
RESEARCH PLAN DEVELOPMENT The second calls for developing the most efficient plan for gathering the needed information. Not to forget the cost or values of research the Marketing manager must estimate process its approval, Research plan calls for decision on. a) Data source i.Primary data to be collected for a specific purpose. ii.Secondary data collected for another purpose and already existing some where.
1.Research Approaches: Primary data can be collected in four ways: 1. Observational research 2.Focus group research 3. Survey research 4. Experimental research 2.Research Instruments: Marketing researchers can use questionnairesin collecting of primary data, because of its flexibility, questionnairesis by for the most common instrument used to collect primary data. 3.Sampling Plan: This plan calls for the three aspects:a)Define the sampling unit. b)Decide the sample size. c)Decide the sampling procedure whether to use probability or non-probability sampling methods. 4.Contract method: once the sampling plan has been determined, thishas to decide how the subject should be contacted. The choices aremail, telephone or research interviews.
COLLECTION OF INFORMATION Data collection phase is generally the most expensive and the most phase toerror. Carry out the field work, collect data using the instruments, adjust theProblem of not at homes, replaced, refusal to cooperate, biased or dishonestanswers.
ANALYSIS AND INTERPRETATIONS The next to last step is to extract pertinent findings from the collected data. The researcher edits, code, tabulate the collected data.
PRESENTATION OF FINDINGS As the last step in marketing research the researchers present the findings. The researchers have to arrange the researched result according to an approved reporting format, get the report typed and bound, present the copies of the report to the concerned authorities.
RESEARCH METHODOLOGY/ DESIGN The methodology adopted for eliciting the data required for the study was survey method. It is the overall pattern or framework of the project that will dictate as to what information is to be collected, from which sources and by what procedures.
RESEARCH METHOD Research methodology must be classified on the basis of the major purpose of the investigation. In this problem, description studies have been under- taken, as the objective of the project is to conduct the market share study to determine the share of the market received by both the company and its competitors.
DATA COLLECTION The information needed to further proceed in the project had been collected through primary data and secondary data.
PRIMARY DATA Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the retail outlets sellers using different brands and their competitors were contacted. Survey research is the approach best suited gathering description.
SECONDARY DATA The secondary data consists of information that already exist somewhere, Having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc. RESEARCH METHODOLOGY The respondents are the mobile postpaid connection holder with Airtels toppings facilities. The survey was carried in twin cities of Hyderabad andSecunderabad with the sample size of 300. The survey was carried out withthe help of a structured questionnaire, which helps in accomplishing the research objectives. The respondents by means of personal interview administer this structured ended questionnaire.