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Positioning (And Repositioning) of…..

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Project designed by Subhayu Das(IILM BS)KOL

Bharti - Towards the Future

ContentsContents

Company profile & Indian Cellular Telephony Industry

Brand endorsement in AIRTEL

Post-Paid & Pre-Paid Cellular Brands in India

STP Analysis & repositioning of Airtel

History of Cellular Telephony in India

1992 Telecommunication sector in India liberalized to bridge the gap through government spending

1993 The telecom industry gets an annual foreign investment Rs 20.6 million

1994 License for providing cellular mobile services granted by the government of India for the Metropolitan cites of Delhi, Mumbai, Kolkata & Chennai. Cellular mobile service to be duopoly

1995 19 more telecom circles get mobile licenses

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

1999 National Telecom Policy is announced, Tariff rebalancing exercise gets initiated, FDI inflow into telecom sector falls by almost 90% to Rs. 2126.7 million

2000 Amendment of TRAI Act. &FDI inflow drops further down to Rs 918 million coming

45%

20%10%

25%

A tree is known by its fruit….

Market Share Distribution

VODAFONEVODAFONE

OTHER(IDEA,TATA DOCOMO,AIRCEL etc)OTHER(IDEA,TATA DOCOMO,AIRCEL etc)

RELIANCERELIANCE

AIRTELAIRTEL

Company profile

1

2

n The flagship services of the Bharti group included Airtel (cellular), Mantra (Internet Services) and Beetel (telephone instruments)3

In 1985,he entered the telecom business by establishing Bharti Telecom Lmtd that manufactured telephonic equipment.

Starting work with Siemens AG (Germany) & Takacom Corporation (Japan) .

Bharti invested heavily in the acquisitions and alliances , As a part of this, Bharti acquired JT Mobile (Andhra Pradesh and Karnataka), SkyCell (Chennai) and Spice Cell (Kolkata).

5

4It is the largest cellular telecom company in the country reaching over 600 mln people in 16 (out of 29) states of India. Company posted revenues of Rs 8.48 billion & a net loss of Rs 1 billion in the financial year 2000-01

Bharti Airtel Bussiness

Analysis…

Segmentation of AIRTEL

•On the basis of Geography

•Subdivided States into category A, B and C

Stepwise segmentation

Divided Indian

market in telecom circles.

A good beginning is half of the battle……..

Middle ageMiddle age

CorporateCorporate

Home-makerHome-maker

Young generationYoung generation

Earlier elite class above age group of 25 years.

Targeted women and senior citizens by introducing post paid

plans.

•Corporate people and business men. •Again targeted youth by introducing YOUTOPIA plan.

TERGETTERGET

YOUTOPIA plan

School School StudentsStudents

College College StudentsStudents

Young generation

Trough Trough BrandBrand Trough

Trough

AddAdd

Targeted youth by introducing YOUTOPIA plan because Targeted youth by introducing YOUTOPIA plan because cash in hand is lucid & EMOTIONAL BIASED BUYERcash in hand is lucid & EMOTIONAL BIASED BUYER

YOUTOPIA plan

Strategy of Targeting(example)

ContentsIf we closely watch, the grandfather’s residence will have a village set up which shows the network extension of Airtel to even villages. It also suits the Indian culture and current trends of Indian families where the modernization and lifestyle has lengthened the road of emotions but a parents mind always forgives child for his/her mistakes

“Ogilvy On Advertising” written by

David Ogilvy perfect portfolio of psychology

emotions

product benefit

“power to keep in touch”

Always maintain leadership - be it in network, innovations, offerings or services

Always maintain leadership - be it in network, innovations, offerings or services

Positioned in premium category aimed at elite class of societyPositioned in premium category aimed at elite class of society

Positioning

Perception of aspirational and lifestyle brand.Perception of aspirational and lifestyle brand.

Repositioning

Positioned in Positioned in premium category premium category aimed at elite class aimed at elite class

of society.of society.

Positioned in Positioned in premium category premium category aimed at elite class aimed at elite class

of society.of society.

TaglineTagline

FocusFocusStarted to Started to capturing mass capturing mass marketmarket

BeforeBefore AfterAfter

““Touch Touch tomorrow”.tomorrow”.

““Touch Touch tomorrow”.tomorrow”.

““Live Every Live Every Moment”Moment”

Reason for repositioning…

Why repositioning

Emotional love

customers to derive all benefits of

cellular telephony

customers to derive all benefits of

cellular telephony

'kept close to the heart.'

'kept close to the heart.'

Airtel also shifted its focus from SEC A audiences to SEC B

audiences

Airtel also shifted its focus from SEC A audiences to SEC B

audiences

convey a warm and informal style

convey a warm and informal style

Brand endorsement

Brand essence of

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Prepaid & post-paid competitors

Text in here

Pre-paidPre-paid Post-paidPost-paid

PEST PEST analysisanalysis

T

S

E P

DOT was established to grow telecom industry.Earlier Tariff rates were high due to high taxes. Now it become lowest in the world.

Great economic growth & continued development of India’s economy registered a growth of 21%.

Perception “ as a brand of the successful people.”“Word of mouth advertising.”

First cellular service to provide roaming services and other value added services.E-commerce portal. Introduced and involves in broadband services, long distance services, and internet services.

POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL

Looking forward….

What next?What next?

Airtel was named the 'Best Cellular Service' in the country

1.won the 'Techies' award4 for four consecutive years (1997-2000) 2.'Tango' in 2001..

??

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SUBHAYU DAS