assessment of advertising message in indian telecom market

8/4/2019 Assessment of Advertising Message in Indian Telecom Market

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Assessment of Telecom

TVCsIndian Telecom Market Prabhat Kumar



K ey Areas to Explore

Competitive Marketplace

Framework of Advertisement Analysis

Advertisement Campaigns of key Companies

Analysis of Advertisement Campaign

Comparative Assessment of Advertisementcampaigns.

Recommendations for Individual Companies



Competition Analysis

Industry Overview (Market size, Gr owth rate,

Forecast)

Key competitors (Market share-National&regional)

User base analysis



Indian Telecom Industry

The telecom industry had a

market size of Rs 105,287 cr ore in

2006.

The Indian telecom industry is

expected to reach a size of Rs

344,921 cr ore by 2012 at a gr owth

rate of over 26 per cent.

In FY08 Indian telecom market,

witnessed a 46% YoY increase in

its subscriber base to 300 m.

Number of telecom subscribers is

expected to reach 500 million by

2010 and 650 million by 2012.



Segregation of Telecom Sector



Market Segment

Indian Telecom services

market can be categorized into

following segment on the basis

of services pr ovided.

1. Wire line Services2. Wireless Services

3. Internet services

Subscriber Base bysegments

Wireless

Services,286.87,

85%

Internet

Services,11.66,

3%

WirelineServices,

38.92,

12%

Figures are in millions subscribers

Subsegment of

I ¡ eless services

GSM,

¢ £ ¢ .

¤

£ ,

¥ 4¦

CDMA,¥ 4.

§

̈ ,

¢ ¨ ¦

Wireless services is f urther

catego

rized into fo

llowing subsegments

1. CDMA

2. GSM



Market Competition

M©

NL

10%

Other

11%

Sh

am

0%

HFCL

0%

H

he

2%

Relian

e

2%

Bharti

6%

BSNL

80%

Wire line Services Market Share(Subscriber Base)

Bharti

24%

Relian

e

18%

o

o

one17%

BSNL

15%

©

ata

9%

I

ea

10%

Air

el4%

Spi

e

2%

M©

NL

1%

BPL

0%

HFCL0%

Sh

am

0%

Other

8%

Wireless Services Market Share(Subscriber Base)

� BSNL and MTNL are govt. enterprises hold

about 90% of market share.

� Among private players Bharti, Reliance and

Tata are top 3 competitors.

� Big Players in wireless services market are

Bharti, Reliance, Vodafone, BSNL, Tata

and Idea.

� These six competitors together represent

more than 90% of market share.



Market CompetitionMarket Share of GSM service providers

June 2008

� Top player in GSM service pr ovider are

Bharti,Vodafone,BSNL,Idea

� These four player together makes more

than 85% contribution in the market

� Tata, Reliance & BSNL are the major player

in CDMA service.

� Near about 99% of the market is being

captured by these three.

Market Share of CDMA service providers

June 2008



Competitor Summary (IdentifyCompetitors)

Wire line Wireless W1(GSM) W2(CDMA)

Bharti 23.93732 69.38 Y N

Reliance 0.951615 50.79 Y Y

Vodafone N 49.20 Y N

BSNL 308.66077 41.96 Y Y

IdeaN

27.19 Y N

Tata 0.772202 26.33 Y Y

All the f igures are in Million



Subscriber ase Spread

Urban Vs Rural (for key competitors)

Rural Urban

Tata

Idea

BSNL

Vodafone

Reliance

Bharti

6.46%

23.54%

34.41%

30.10%

19.63%

27.76%

93.54%

76.46%

65.59%

69.90%

80.37%

72.24%

26.33

27.19

41.96

49.20

50.79

69.38

Total Subscribers

Millions



0

10

20

30

40

50

60

70

80

Jun 07 Sep 07 De 07 March 08 June 08

Idea Bharti Vodo one Reliance Tata BSNL



Idea

9

Bha ti

!

" dofone

17

# eliance

17

$

ata

9

BS% &

17

Ma ket sha e change

Idea

9 '

Bha( ti

) 0 '

1

odofone

17 '

2 eliance

18%

Tata

9%

BS3 4

15%

Market Share of Wireless June 2007 Market Share of Wireless June 2008

BSNL lost market share and Bharti, Vodafone and Idea gained.

Within top six competitor (accounting for 92% market share) change in market

share is given as below

Others9% Others

7%



Market trend of rural area In rural area BSNL leads the market having 34.14 % of market share.

BSNL having presence in both wire line as well as wireless.

BSNL dominates wire line service area by holding more than 99% market

share.

Companies like Bharti, Vodafone, Idea, Reliance are gr owing very f ast

might be because

Estimated population of 1.136 billion and about 72% living in rural areas makes it

a potential market for f uture gr owth.

As spreading of wire network is tough as well as costly so going wireless is good.

Wireless subscriptio

n is easy to

take People are switching f r om wire line to wireless because they are money

conscious (Prepaid option).

Advantage of mobility



Framework of Advertisement

Campaign analysis1. Who is the target audience?

2. Does the add have stopping

power?

3. Identif y the pr oduct benef it-

What's in it for the customer?4. Identif y the reason to believe-

How do we know the brand will

deliver the benef it?

5. Other consideration -Like

picture of pr oduct, memorabletagline

6. Overall evaluation



K ey Statistics TVCs in Telecom

TV advertising of Telecom sector saw a rise of 99 per cent during

January - August 2008 compared to January - August 2007.

'Telecommunication Services' garnered a high share of Telecom sector

advertising on TV during January - August 2008.

TV advertising of 'Telecommunication Equipments' saw a gr owth of 45

per cent and that of 'Telecommunication Services' grew by 127 per cent

during January - August 2008.

µNokia Corporation' leads in advertising of 'Telecommunication

Equipments' and ' Vodafone Essar Ltd' was number one advertisers for

'Telecommunication Services' on TV during January - August 2008.

'R Madhavan' had the maximum ad volumes of Celebrity Endorsement

of Telecom sector on TV during January - August 2008.



K ey Facts about TV advertisementsTVCs on National Channel Vs Regional

Channels

Advertisement Breakdown

National Channels cover about 71% of all TVCs. Most of the TVCs are for

Telecom services



Advertisement Campaigns of K ey

Companies arti Group

Television advertisements have increased sharply (99%) in past one year.

Vodafone leads TV advertisers with 25% of all telecom TVCs. This is followed

by Bharti, Reliance and Tata. BSNL advertises the least among big players.



Subscriber Growt ate

0

10

20

30

40

50

60

70

80

un 07 Sept 07 e 07 rch 08 une 08

5 6 e 7 8 h 7 rti V 9 d 9

@

9 ne RelianA e Tata BSN B

68.57% 62.48%% 60.00% 59.32%% 52.02%% 30.92%%



Idea

9%

Bha C ti

D D %

Vodofone

17%Reliance

17%

Tata

9%

BSE F

17%

Ma ket sha e change

Idea

9%

BhaG ti

H 5%

Vodofone

17%

Reliance

18%

Tata

9%

BSI P

15%

Market Share of Wireless June 2007 Market Share of Wireless June 2008

BSNL lost market share and Bharti, Vodafone and Idea gained.

Within top six competitor (accounting for 92% market share) change in market

share is given as below

Others9% Others

7%



Summary of TVC campaign

arti Airtel




eliance Reliance is third (preceded by Vodafone and Bharti) in race for TVC

share with 15% of total TV commercial.

Reliance is leader in CDMA market (57.44% share) but has little

(3.80%) presence in GSM market.

Marginally gained market share (Wireless) (f r om 17% June 07 to 18%June 08) in the last one year.

19.63% of its subscriber base resides in Rural Areas.

Ads do not diff erentiate rural and urban.

Ad talks about easy to use, low price, f eatures and integration with R

world, c

onnectivity.

Tag line ³

Butt

onD

abao´

(Push the button). Ads talksless about experience and emotion.

Umbrella ads talks about connectivity in remote areas and emphasizesnetwork as critical element of lif e.

Has ads targeted at diff erent segments like college going students,common man (lower middle class) working class.




Vodafone Highest advertiser on TV ± 25% of total telecom TVCs. Undergonebrand name change f r om Hutch to Vodafone.

Gained market share in the last one year.

Has been increasing subscriber base consistently by 60% f r om Jun07to June 08.

30% of its subscriber base resides in Rural Areas.

Separate and appealing ad for its customer care ± ³happy to help´.

Ads do not diff erentiate target population by rural and urban.

Ads focus on emotions of relationship and positions its services asadding to those relationships.

Key elements ± connectivity, Less focus on detailed f eature.

Ads seems to be targeted at ± educated audience who enjoy enrichingexperience/emotion than just f eature.



Summary of TVC campaignSNL

BSNL lost its market share in last one year. (f r om 17% in June 07 to 15 % inJune 08)

Lowest advertiser on TV behind other players like Bharti, Vodafone Reliance,Idea, Tata. (11% of total telecom TVCs).

Among BSNL subscribers 34.14% are in rural areas. This is highest pr oportion

among key players.

Gr owth rate in number of subscribers has been the lowest among key players.

Earlier TVC (One India) focused on low tariff rates. Later ads started focussingthemes like connecting India, specif ic f eatures, a f amily necessity (landline).

BSNL banks on its near monopoly in landlines acr oss India and communicatesas largest telecommunication network in India.

Tag lines ± Connecting India, BSNL Best Hai Mere Liye, Apno ko Apno se Jode,

BSNL has higher market share in Rural areas as compared to its market sharein Urban areas.

BSNL ads do not diff erentiate by rural and urban population (at least in NationalChannels)




Tata Tata (Mainly Tata Indicom) has high market share in CDMA market (35.41%). Ithas launched its GSM services under virgin mobile brand name.

Lowest advertiser on TV behind other players like Bharti, Vodafone Reliance,(14% of total telecom TVCs).

Among Tata subscribers 6.46% are in rural areas. This is lowest pr oportion

among key players.

Gr owth rate in number of subscribers has been the lower among key players.

Latest TVC campaign has Tagline ± Suno DIl ki Awaz. Tata Indicom is trying to position its services to be the one for successf ul people. Asociation sith success.

Prior campaign had tagline ± Switch to Tata Indicom and Experience thediff erence´. Main basis was pr o jected to be better connectivity. Doesn't seems to

be a real diff erentiator

BSNL ads do not diff erentiate by rural and urban population (at least in NationalChannels)




TATA Indicom XXXXXXX




Companies eliance1 2 3 4 5 6 7

1 2 3 4 5 6 7

1 2 3 4 5 6 7

1 2 3 4 5 6 7

1 2 3 4 5

1 2 3 4 5




Companies Vodafone




Companies Vodafone3




Companies Vodafone4




Companies Company 3 XXXXXXX



Comparative Assessment of

Advertisement Campaigns XXXXXXXX

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Recommendations Company 1

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Recommendations Company

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assessment of advertising message in indian telecom market

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