Airtel Finn Cial Analysis Marketing Strategy

8/11/2019 Airtel Finn Cial Analysis Marketing Strategy

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GRAND PROJECT REPORT

ON

BHARTI AIRTEL LIMITED

SUBMITTED BY;-

Piyush Gaur

CONTENTS


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Executive Summary 3

Intr!uctin "#$

HistoryChange in Brand Logo &

TaglinesO%&ective' (

Mission

Company Overview

Subsidiary Company )*

Or+ani'atin Structure )*

Strate+ic Bu'ine'' ,nit )-

Mar.et S/are 0 Airte1

)-#

)"

Subscriber Trend & Growth

Competitors

Bu'ine'' Partner' 2 Partner' R1e )"

Mar.etin+ Mix )

4a1ue C/ain Strate+y )(

5inancia1 Ana1y'i'-*#-6

Company's Revenue

Company's or!ing Capital"nalysisCompany's "dvertisement#$penditureRevenue %rom alue "ddedservices

Mar.etin+ Ana1y'i'-6#-(

orters generic Strategy

BCG (atri$)*+orce (odel

S,T "nalysis

A7ar!' 2 Rec+nitin' 3*

Research Methodology 3*


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E8EC,TI4E S,MMAR9

This report on Bharti "irtel is done to -nd out certain ob.ective

regarding the strategic approach adopted by "irtel to stand

strongly in the competitive Telecom mar!et/ "irtel mar!etingstrategy analysis is done using various models li!e orters generic

Strategy0 BCG (atri$0 )*+orce (odel & S,T "nalysis o% "irtel

etc/

"lso the detailed study o% +inancial osition o% Company is done to

-nd out its position in (ar!et/ The study includes Revenue

"nalysis0 or!ing Capital "nalysis0 "sset turnover ratio o% "irtel0 &

its e$penditure on "dvertisement as a percentage o% Sales in

recent period/

The report gives in%ormation about how "irtel ad.usted itsel% in

changing mar!et conditions0 what are the various strategies it

ta!es to become 1ndia2s 3stcompany by Subscriber & Revenue/


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INTROD,CTION

Bharti "irtel Limited %ormerly !nown as Bharti Tele*entures LT4

5BTL6 is an 1ndian company o7ering telecommunication services

in 38 countries/ 1t is the largest cellular service provider in 1ndia0

with more than 393 million subscriptions as o% "ugust :;3;/

Bharti "irtel is the world's third largest0 single*country mobile

operator and -%th largest telecom operator in the world with asubscriber base o% over 3


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HISTOR9 O5 AIRTEL

Bharti Cellular launched cellular services '"1RT#L> in 4elhi in

388)0Himachal radesh in 388?0 @arnata!a and "ndhra radesh circles

in 3888

1n 388


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"irtel provides S(S %acilities to hearing impaired in Chennai5:;;F6

1n :;;F0 "irtel Subscribers e$ceed F million mar!/

1n :;;90 Bharti Cellular entered into license agreements to provide

cellular services in = new circles including Ittar radesh 5#ast60 estBengal & "ndaman icobar0 ,rissa0 Bihar and Jammu & @ashmir/

Same year "irtel launches GRS services %or pre*paid customers/


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+ollowing are the reasons %or change in Tagline o% "irtel

:P7er t .ee; in Tuc/

** This was the -rst time " R Rehman had agreed to wor! %or any

brand0 anywhere in the world/ The music %rom the commercial

became the most downloaded ring tone in the history o%

telecommunications/

** Tagline denotes that each and every person in 1ndia live every

moment 5emotions0 %eelings etc/6 o% the li%e with "irtel/

REASONS 5OR CHANGE=

** Redi7ussion 4D&R0 which is the ad agency that too! charge o%

revamping "irtel's brand image again changed the tagline to give

better tagline to "irtel which catches some emotional appeal/

:Ex;re'' yur'e10

** >#$press yoursel%' was success%ully launched ta!ing the

ownership o% the entire space o% communication and

strengthening the emotional bond "irtel en.oys with its customers

** The masterminds behind the '#$press Doursel%' campaign are

the .oint vice*presidents (r/ rashant Godbole and arwan atel/


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** "irtel is a mar!et leader in the cellular networ! and they wanted

a very %resh and contemporary idea to build a brand image which

their customers could identi%yM/

4i'in* By end o% :;3; to be loved by more customers &

Benchmar! by more businesses/

Mi''in*To provides #rror %ree & cost e7ective service deliverywith 1nnovative products & Services to the customers/

4a1ue'# e will always put our customers -rst/ e will alwaystrust and respect each other/ e will respect our associates as we

respect each other/ e will wor! together through a process o%

continuous improvement/

COMPAN9 O4ER4IE

Globally0 Bharti "irtel is the Frd largest in*country mobile

operator by subscriber base0 behind China (obile and China

Inicom/

1n 1ndia "irtel is o/ 3 by subscriber base and revenue/

Bharti "irtel %ormerly !nown as Bharti Tele*ventures Limited

5BTL6 is a J between Singtel and Bharti Telecom/


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1ndia2s +irst Telecom Company that provides telecom

services in all the circles/

The company also has a submarine cable landing station at

Chennai0 which connects the submarine cable connectingChennai and Singapore/

S,BSIDIAR9 COMPANIES

Bharti He$acom

Bharti Comtel

Bharti "Euanet

Bharti Broadband

Bharti 1n%ratel

Bharti Telemedia

Bharti "irtel 5I@0 IS"0 Canada0 Hong!ong0 IS"0 Lan!a6

,RG"1S"T1, STRICTIR#
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singapore


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CMD' 5un!er Pr1eF#

Suni1 B/arti Mitta1

He started his career at a young age o% 3< a%ter graduating

%rom un.ab Iniversity in 1ndia and then he %ounded Bharti/

Chairman & (anaging 4irector

since ,ctober :;;3

"ge 98 years


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Today0 at 980 he heads a success%ul enterprise0 amongst the

top ) in 1ndia0 with a mar!et capitaliNation o% over ISO 9;

billion and employing over F;0;;; people/

He is an alumnus o% Harvard Business School0 IS"/ He has been con%erred one o% the highest civilian award P

adma Bhushan/

He has been con%erred the degree o% 4octor o% Science by

the G B ant Iniversity o% "griculture & Technology/

5IG,RES 2 5ACTS Total ireless subscribers in 1ndia 1n June ;8 & July ;8 are

)*-3$$)&

) *6)36 respectively/

Total ire line subscribers in 1ndia 1n June ;8 & July ;8 are

-$-$$- & -$)$--respectively/

STRATEGIC B,SINESS ,NIT O5 AIRTEL


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MARET SHARE


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S,BSCRIBER GROTH

PREPAID 2 POSTPAID ,SERS


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COMPETITORS

ational Long 4istance

BSL0 R#L1"C#0 SL0 ,4"H,#0 T"T"0 14#"

1nternational Long 4istance

SL0 R#L1"C# 0 BSL

B,SINESS PARTNERS

Out'urcin+ Dea1' 4en!r'Partner' 5eature'A!vanta

+e'

etwor! outsourcing

& maintenance

#ricssion

o!ia siemens

networ!

#ase in networ!

planning

ayments Lin!ed to

*Isage & etwor!

Euality

* Service levelagreement

1n%ormational

technology

1B( ricing & payment

as a A o% Revenue

assive

in%rastructure

Bharti 1n%ratel

1ndus Towers

Reduced cape$

spend

1ncrease %ocus on

sharing passive1n%rastructure

Call center

outsourcing

1B( 4a!sh

(phasis

#nhanced &

Consistent customer

e$perience


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Hindu.a T(T

"egis B,

ortel

Common plat%orm

across the group

Partner' R1e

Service Partner'4en!r' R1e

(obile services #ricission & o!ia

1B( 4a!sh

(phasis

Hindu.a T(T

Tele tech

etwor! #Euipments

partners

Call center

operations

Telemedia &

#nterprise services

Siemens

ortel

#Euipments

suppliers

1T reEuirements 1B(

ortel

Group wide

technology

reEuirements

Call center

technology

reEuirements

,TH#R "LL1"C#

1n :;;?0 Bharti "irtel has entered into %ollowing ma.or agreements

and alliances


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ith (icroso%tto7er so%tware and services %or the Small

and (edium Business 5S(B6 mar!et in 1ndia/

"s part o% the agreement0 "irtel will bring Google search to

the "irtel Live mobile " portal/ Google will alsoincorporate advertising through its (obile "ds product on

the "irtel Live mobile portalQ

" three*year contract with N.ia at an estimated value

o% ISO 9;; mn to e$pand its managed GS( GRS#4G#

networ!s in eight "irtel circles and deploy a pan 1ndia "

solution across its networ!sQ

The company has a strategic alliance with SingTel/ The

investment made by SingTel is one o% the largest

investments made in the world outside Singapore0 in the

company/

MARETING MI8

PROD,CTS

"irtel Connections ostpaid

"irtel Connections repaid

"irtel 4ata Cards

"irtel Blac!berry phones

* On 19 October 2004 Airtel announced the launch of a

Blackberry Wireless Solution in India. he launch is a result of a

tie!u" bet#een Bharti ele! $entures %i&ited and 'esearch In

(otion )'I(.


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"irtel 1 hones

* As of 22 Au+ust 200,- the A""le ihone / is aailable in

India on Airtel and $odafone.

"irtel 4igital T

* On 9 October 200,- Airtel oined the 3 band#a+on in India

#ith Airtel 3i+ital $- a 3irect!to!o&e eleision serice

S,BSCRIBER BASE

The "irtel subscriber base according to TR"1 * Telecom

Regulatory "uthority o% 1ndia as o% +ebruary :;;8 was

4elhi * 90=?303??

(umbai * :0?8308=F

(adhya radesh * ?0=8;0=;8

Gu.arat * F08


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PLACE

1t has wide and e$tensive presence even in the remotest

areas

"irtel Customer Care Touch oints

4istributors li!e

#/g/ aan shops0 grocery stores0 chemists0 outlet etc/

PROMOTION

Large scale print and video advertising/

Big celebrities li!e SR@ and Sachin are roped in to endorsethe product because it /

1n :;;: "irtel got its Signature tune %rom "/R/ Rehman0 this

signature tune is the most downloaded tune in 1ndia/

rovides innovations such as Bollywood movie premiers0

music services such as ring bac! tones & many more/

PH9SICAL EN4IRONMENT


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INNO4ATION


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4AL,E CHAIN PROCESS

Te1ecm ;rce'' Detai1

Cu'tmer Im;rtance* +irst they -nd the customerreEuirements/

Tec/n1+y* Latest change in telecom technology/

Cm;etitive ;'itin* Conduct S,T "nalysis o%competitors

Ca;a%1e Su;;1ier'* Suppliers capable o% component design

Start* 4ecide which service we are going to provide usingwhich technology0 who is our customers0 endors & partners/

CORPORATE C,STOMERS

Hathway P 1nternet gateway/ ational Long distance services/

#+4 Corporation *

Raymond

Ba.a. "llianN

(phasis

ipro

1B( 4a!sh

Large Stoc! Bro!ing Company


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5INANCIAL ANAL9SIS

ireless Customer mar!et share leadership at :9/? A/

Total minutes on networ! carried in F P 39F billion/

Total employee strength P :)0))F/

Balance sheet strength

"ssets * O 3: billion

et 4ebt * O =?? million

et 4ebt to #B1T4" P ;/:3 times


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Economies of scale and ecient working capital

management helped boost prot margin

Companys policy of retaining entire prots helps in

keeping the D/E low despite surging loan book


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Better controls helped check bad debt losses

Economies of scale help reduce the percentage cost of

advertisement ependiture


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"1RT#L R##I# T#L#C,( S#CT,R :;;?*;


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("R@#T1G ""LDS1S

TARGET C,STOMERS

Ip mar!et pro%essionals

#ntrepreneur with business plans

Low income mass category

Douth

omen and senior citiNens by post paid connection

PORTER GENERIC STRATEG9

NARRO

MARET

#/g/ #RG1 (,B1L#

BROAD MARET #/g/ ,4"+,# #/g/ "1RT#L

,NIK,ENESS

COMPETENC9

LO COST

COMPETENC9

BCG Matrix 0 B/arti AIRTEL

MARET GROTH

HIGH

STAR* 4TH & 1T0

BR,"4B"4

* R#T"1L

1SIR"C#


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MARET GROTH

LO

CO* (,B1L#

S#R1C#S

DOGS* +1#4 L1#

S#R1C#S

MARET SHARE

HIGH

MARET SHARE

LO

)*+,RC# (,4#L


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Bi%1i+ra;/y

www/trai/gov/in

www/airtel/in

www/wi!ipedia/comairtel

www/airtel*broadband/com

www/google/com
http://www.trai.gov.in/http://www.airtel.in/http://www.airtel-broadband.com/http://www.trai.gov.in/http://www.airtel.in/http://www.airtel-broadband.com/

Airtel Finn Cial Analysis Marketing Strategy

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