comparative analysis of marketing strategies of airtel & vodafone (1) (copy).doc
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A
RESEARCH PROJECT REPORT
ON
“COMPARATIVE ANALYSIS OF MARKETING
STRATEGIES OF AIRTEL & VODAFONE IN DELHI
& NCR REGION”
Submitted !" t#e $%"ti% uime't
O
M%(te" ! )u(i'e(( Admi'i(t"%ti!'
Aii%ted t!
*TTAR PRADESH TECHNICAL *NIVERSITY L*CKNO+
,Se((i!'- ./01-./023
RY BH TT COLLEGE OF M N GEMENT ND
TECHNOLOGY D UL , B GHP T
VIKASH K*MAR
M)A-IVt# SEM
ROLL NO4015/26/005
1
Submitted to : Internal Supervision of :
U.P.T.U., Lucknow Mr. Sanjeev Singh(H.O.D, MBA Deptt.
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DECLARATION
I, VIKASH K*MAR being a student of MBA – IV Sem of ACMT7
MEER*T4 Hereby declares that the project report under title
“C!m$%"%ti8e A'%9(i( ! M%":eti'; St"%te;ie( ! V!d%!'e & Ai"te!
"opics #uidance M(4 G%"im% S#%"m% ,F%
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ACKNO+LEDGEMENT=
I Vi%ash (umar, sincerely than%ful to all those people $ho ha&e been
gi&ing me any %ind of assistance in the ma%ing of this project report
I e)press my gratitude to M(4 G%"im% S#%"m%7 ,F%
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CONTENT
04 A
Ai"te B
V!d%!'e @
)%
024 ue(ti!''%i"e B6
.
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NEED OF THE ST*DY
1 "o identify the difference bet$een mar%et performance of Airtel industry and
Vodafone
' "o study the mar%et of Airtel Industry and Vodafone on big scale
telecommunication sector
- "o compare &arious parameters of mar%eting strategies, manufacturing
process, technology adopted production policy, ad&ertising, collaboration,
e)port scenario, future prospect for the t$o companies and go&ernment
policies
. "o study the le&el of customer satisfaction in Airtel Vodafone
/ "o study customer buying beha&ior and factors $hich influence the purchase
decision process
0 "o study consumer preferences
"o study the consumer trend in telecommunication sector
2 "o study competiti&e mar%eting strategies adopted by Airtel and Vodafone
/
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SYNOPSIS
Tee
"eledensity has increased to '-0-; in >anuary '=1' as compared to '1'=; in August
'==
+i"ee(( Se"8ian -1 '=1'
+i"e i'e Sub(
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I'
facilitates achie&ement of the objecti&es of e$ "echnology Colicy 8"C: 1@@@
"AI has endea&ored to encourage greater corporation in the telecom sector together $ith
better Duality and affordable prices
2
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AI"3+
Ai"te is a brand of telecommunication ser&ices in India operated by Bharti Airtel
Airtel is the largest cellular ser&ice pro&ider in India in terms of number of
subscribers Bharti Airtel o$ns the Airtel brand and pro&ides the follo$ing ser&ices
under the brand name Airtel6 Mobile Ser&ices 8using #SM "echnology:, Broadband
"elephone Ser&ices 85i)ed line, Internet *onnecti&ity8?S+: and +eased +ine:, +ong
?istance Ser&ices and 3nterprise Ser&ices 8"elecommunications *onsulting for
corporates: It has presence in all '- circles of the country and co&ers 1; of the
current population 8as of 5E=:
+eading international telecommunication companies such as Vodafone and Sing"el held
partial sta%es in Bharti Airtel
@
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Landlinehttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/SingTelhttp://en.wikipedia.org/wiki/SingTelhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/wiki/Landlinehttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/SingTel
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VODAFONE ESSAR
V!d%!'e E((%", pre&iously Hut
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I't"!du
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)ACKGRO*ND
"he project is an e)tensi&e report on ho$ the Airtel *ompany mar%ets its strategies and
ho$ the company has been able in tac%ling the present tough competition and ho$ it is
scooping up by the allegations of the Duality of its products "he report begins $ith the
history of the products and the introduction of the Airtel *ompany "his report also
contains the basic mar%eting strategies that are used by the Airtel *ompany of
manufacturing process, technology, production policy, ad&ertising, collaboration, e)port
scenario, future prospect and go&ernment policies "he report includes some of the %ey
salient features of mar%et trend issues
In todayFs $orld of cutthroat fierce competition, it is &ery essential to not only e)ist but
also to e)cel in the mar%et "odayFs mar%et is enormously more comple) Hence forth,
to sur&i&e in the mar%et, the company not only needs to ma)imi4e its profit but also
needs to satisfy its customers and should try to build upon from there
1'
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COMPANY PROFILE
OF
AIRTEL
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Vision
GAs $e spread $ings to e)pand our capabilities and e)plore ne$ hori4ons, the fundamental focus
remains unchanged6 see% out the best technology in the $orld and put it at the ser&ice of our
ultimate user6 our customerG
"hese are the premise on $hich Bharti 3nterprises has based its entire plan of action
Bharti 3nterprises has been at the forefront of technology and has re&olutioni4ed
telecommunications $ith its $orld7class products and ser&ices
3stablished in 1@2/, Bharti has been a pioneering force in the telecom sector 9ith many firsts and
inno&ations to its credit, ranging from being the first mobile ser&ice in ?elhi, first pri&ate basic
telephone ser&ice pro&ider in the country, first Indian company to pro&ide comprehensi&e telecom
ser&ices outside India in Seychelles and first pri&ate sector ser&ice pro&ider to launch ational
+ong ?istance Ser&ices in India Bharti had appro)imately -'1 million total customers – nearly
'22 million mobile and --.,=== fi)ed line customers
Its ser&ices sector businesses include mobile operations in Andhra Cradesh, *hennai, ?elhi,
#ujarat, Haryana, Himachal Cradesh, (arnata%a, (erala, (ol%ata, Madhya Cradesh circle,
Maharashtra circle, MuC#?M7Mi, Cunjab, "amil adu and ttar Cradesh 89est: circle Inaddition, it also has fi)ed7line operations in the states of Madhya Cradesh and *hhattisgarh,
Haryana, ?elhi, (arnata%a and "amil adu and nation$ide broadband and long distance net$or%s
Bharti has recently launched national long distance ser&ices by offering data transmission ser&ices
and &oice transmission ser&ices for calls originating and terminating on most of India
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1 "he *ompany has de&eloped the follo$ing strategies to achie&e its strategic objecti&e6
' 5ocus on ma)imi4ing re&enues and marginsJ
- *apture ma)imum telecommunications re&enue potential $ith minimum geographical
co&erageJ
. Kffer multiple telecommunications ser&ices to pro&ide customers $ith a Gone7stop
shopG solutionJ
/ Cosition itself to tap data transmission opportunities and offer ad&anced mobile data
ser&icesJ
0 5ocus on satisfying and retaining customers by ensuring high le&el of customer
satisfactionJ
+e&erage strengths of its strategic and financial partnersJ and
2 3mphasi4e on human resource de&elopment to achie&e operational efficiencies
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)u(i'e((e(
Bharti "ele7Ventures current businesses include 7
• Mobile ser&ices
• 5i)ed7line
• ational and international long distance ser&ices
• VSA", Internet ser&ices and net$or% solutions
• Broadband ser&ices $ith ?S+ and 9i75i net$or%
C!m$etiti8e St"e';t#(
1 Bharti "ele7Ventures belie&es that the follo$ing elements $ill contribute to the *ompany
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)"%'d A"
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"hough the costs of creating ne$ brands are hea&y but the group $ants to
create “distinct independent brands to address different customers and
profiles”.
rand Strategy :
"o understand the brand strategy, letFs first loo% at the brand building e)ercise associated $ith
Airtel a brand that had to be repositioned recently to address ne$ needs in the mar%et
9hen the brand $as launched se&en years ago, cellular telephony $asnFt a mass mar%et by any
means 5or the a&erage consumer, o$ning a cellular phone $as e)pensi&e as tariff rates 8at s 2 a
minute: as $ell as instrument prices $ere steep sometimes as much as buying a second7hand
car
Bharti could ha&e addressed the customer by rationally e)plaining to him the economic ad&antage
of using a mobile phone But Sachde& says that such a strategy $ould not ha&e $or%ed for the
simple reason that the &alue from using the phone at the time $as not commensurate $ith the cost
Instead of the &alue7proposition model, $e decided to address the sensory benefit it ga&e to the
customer as the main selling tac% "he idea $as to become a badge &alue brand,! he e)plains
So the Airtel leadership series! campaign $as launched sho$ing successful men $ith their
laptops and in their delu)e cars using the mobile phone In simple terms, it meant Airtel $as
positioned as an inspirational brand that $as meant for leaders, for customers $ho stood out in a
cro$d
?id it $or%N epeated sur&eys follo$ing the launch sho$ed that there $ere three core benefits that
$ere clearly associated $ith the brand leadership, dynamism and performance
"hese $ere &aluable Dualities, but they only too% Airtel far enough to establish its presence in the
mar%et As tariffs started dropping, it became necessary for Airtel to appeal to a $ider audience
And the &arious brand7trac%ing e)ercises sho$ed that despite all these good things, there $as no
emotional dimension to the brand it $as percei&ed as cold, distant and efficient
Sachde& and his team reali4ed that in a business in $hich customer relationships $ere the core this
could be a major $ea%ness "he reason $ith tariffs identical to competitor Vodafone telecomm and
roughly the same le&el of ser&ice and schemes, it had no$ become important for Bharti to
humani4e! Airtel and use that relationship as a major differentiation
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"he brand had become something li%e +ufthansa cold and efficient 9hat they needed $as to
become Singapore Airlines, efficient but also human A change in tac% $as important because this
$as a time $hen the cellular mar%et $as changing
"he leadership series $as o%ay $hen you $ere $ooing the crOme de la crOme of society Knce you
reached them you had to e)pand the mar%et so there $as need to address to ne$ customers
By that time, Bharti $as already the leading cellular subscriber in ?elhi $ith a base of - la%h 8it
no$ has 12 million customers: And $ith tariffs becoming more affordable as cell companies
started cutting prices it $as time to e)pand the mar%et
Ho$ could Bharti le&erage this leadership position do$n the &alue chainN Sur&eys sho$ed that the
concept of leadership in the customerFs minds $as also changing +eadership did not mean
directing subordinates to e)ecute orders but to $or% along $ith a team to achie&e common
objecti&es it $as, again, a relationship game that needed to be reflected in the Airtel brand
Also, a sur&ey sho$ed that /= per cent of the ne$ customers choose a mobile phone brand mostly
through $ord7of7mouth endorsements from friends, family or colleagues "hus, e)isting customers
$ere an important tool for mar%et e)pansion and Bharti no$ focused on building closer
relationships $ith them
"hat is precisely $hat the brand tried to achie&e through its ne$ positioning under the Airtel
“Touch Tomorro!” brand campaign "his set of campaigns portrayed mobile users surrounded by
caring family members Says Sachde&6 "he ne$ campaign and positioning $as designed to
highlight the relationship angle and ma%e the brand softer and more sensiti&e!
As it loo%s to e)pand its cellular ser&ices nation$ide to eight ne$ circles apart from the se&en in
$hich it already operates Bharti is no$ reali4ing that there are ne$ compulsions to re$or% the
Airtel brand, and a ne$ e)ercise is being launched to this effect ight no$, the company is
un$illing to discuss the ne$ positioning in detail But broadly, the focus is on positioning Airtel as
a po$er brand $ith numerous regional sub7brands reflecting customer needs in &arious parts of the
country
If Airtel is becoming more humane and more sensiti&e as a brand, Bharti has also understood that
one common brand for all cellular operations might not al$ays $or% in urban mar%ets that are no$
getting increasingly saturated
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"o bring in ne$ customers, the company decided that it needed to segment the mar%et Kne such
e)periment, launched last year, is Eoutopia, a brand aimed at the youth in the 1. to 1@ age brac%et
and for those $ho are young at heart! 9ith its earlier positioning, Airtel $as percei&ed as a brand
for the $ell7heeled older customerJ there $as nothing for younger people 9ith Eoutopia, Airtel
hoped to re&erse that
In order to deli&er the concept, Airtel offered roc% bottom tariff rates 8'/ paise for -= seconds: at
night to Eoutopia customers a time $hen they ma%e the ma)imum number of calls It also set
up merchandising e)ercises around the scheme li%e a special portal for young people to buy
things or bid for goods
"he company is no$ loo%ing at offering other ser&ices at affordable prices to this segment $hich
include music do$nloads on the mobile and bundling SMS rates $ith normal calls to ma%e it
cheaper for young people to use
"he other e)periment that Bharti has $or%ed on is to go in for product segmentation through the
"ango brand name "he brand $as created to offer mobile users Internet7interface ser&ices or $hat
is %no$n as 9AC 89ireless Application Crotocol:
"he idea $as to bring Internet and mobile in perfect harmony "he name $as chosen from the
popular mo&ie title It Ta"es T!o to Tango6 basically, you need the t$o ser&ices to tango to offer
customers a ne$ choice!, says Sachde&
"his, ho$e&er, had less to do $ith the branding e)ercise as $ith inefficiency of ser&ice 8accusingly
slo$ do$nload speeds: and the limited utility of 9AC ser&ices
SubseDuently, the ads $ere $ithdra$n, but the company re7iterated that the branding e)ercise
could be re&i&ed because "ango $ill be the brand to offer #CS ser&ices or permanent Internet
connecti&ity on the mobile phone $hich Airtel is e)pected to launch soon
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T#e M%;i<
Cerhaps the more ambitious e)periment has been $ith #agic the pre7paid card "he idea $as to
ma%e the brand affordable, accessible and, most importantly, feasible as a means of e)panding the
mar%et e&en faster
$%AS& I '
Magic $as aimed at bringing in infreDuent users of a mobile phone into the mar%et and assure him
that he $ould ha&e to pay only if he made a call Such a customer used the phone sparingly
mostly for emergencies and $as not $illing to pic% up a normal mobile connection $ith its
relati&ely high rentals 8pre7paid cards do not include rental charges:
"o achie&e its objecti&es Bharti did three things
• Kne, the product $as made a&ailable at prices ranging from s -== to s -,=== $ith no strings
attached and $as simple to operate
• "$o, the product $as made accessible and distributed through small stores, telephone booths and
e&en %irana shops so that the offering $as $ell $ithin arms reach
• "hird, to ma%e the product more approachable! to the customer, the company came $ith
&ernacular ad campaigns
+i%e “#agic (aalo Say %ello” $hich appealed to local sensibilities
"his apart, the company roped in (arisma (apoor and Shah u%h (han for a major ad campaign
all across ?elhi, a ruse that sa$ the number of subscribers go up from /. la%h to 1' million
today, o&erta%ing 3ssarFs branded pre7paid card Speed , $hich $as launched much ahead of Magic
"he company is no$ re7$or%ing its Magic strategy e&en further
3arlier, the branding strategy $as aimed at roping in only interested customers that is,
customers $ho $ere already inclined to opt for mobile ser&ices But no$, $ith basic ser&ice
pro&iders ha&ing been allo$ed limited mobility at far cheaper rates, mobile ser&ice pro&iders could
find themsel&es under threat again
"hat is $hy the ne$ e)ercise is aimed at co7opting non7adopters 9hile the e)act strategy is under
$raps, insiders say the ne$ branding strategy $ould be aimed at offering them &alue $hich they
had not percei&ed $ould be a&ailable from using a pre7paid card
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PHASE II -
1 Bharti used Airtel Magic to build a strong &alue proposition and accelerate mar%et
e)pansion through IndiaFs first national pre7paid card "V brand campaign
' 5irst time e&er in India 7 any pre7paid card brand goes on "V
- A combination of the film genre e)posed through the "V medium designed to connect $ith
the masses of India
. Eouth based 7 romance dri&en strategy platform ma%es the &alue proposition of Airtel
Magic 7 PMum%in HaiF come ali&e
/ All elements 7 user imagery, conte)t, tone language created to connect the category to
the li&es of the S3* B S3* * segment – the middle class non7mobile user
0 Airtel Magic positions itself on the platform of being e)cellent for emergency situations 7
increasing producti&ity as a part of e&eryday life
Sharu%h (han ma%es Pe&erything in life possibleF $hile romancing pretty (areena (apoor
$ith Airtel Magic, IndiaFs leading pre7paid mobile card
2 Airtel today un&eiled its strategy for mar%et e)pansion $ith the launch of its ne$ Airtel
Magic pre7paid card brand campaign – PMagic hai to Mum%in haiF "he strategy is
targeted at the non7user
segment defined as young adults, 1/7-= years of ageJ in the Sec B * segment is aimed at
accelerating mar%et e)pansion "he &alue proposition is centered around a personFs desire to ma%e
all his Q her dreams, ambitions aspirations instantly possible "he ne$ campaign for Airtel
Magic is all about empo$ering millions of Indians to be on top of their li&es
"he brand is positioned to be rele&ant to the mass7mar%et $ho $ant to ma%e all their dreams,hopes desires come ali&eR instantly 8At just s-==Q7 per month Airtel Magic is so easy to
buy: Impro&ing producti&ity, letting you befriend the $orld and opening up ne$ hori4ons It
gi&es you the freedom to control your life in a $ay ne&er possible before Indeed, anything that
you thin% is possible is possible $ith Airtel Magic "he ne$ brand slogan PMagic hai to Mum%in
haiF has been specially created to capture this effecti&ely
"his strategy is designed to help us tal% to this segment directly in the tone, manner language of
the masses "he Mum%in hai! &alue proposition $ill help us e)pand the mar%et and gain a higher percentage of mar%et shares in the process
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"he brand aC#?M7Mssadors Shahru%h (han and (areena (apoor embody this Pcan doF or
Mum%in Hai! spirit 8infact that is the reason they $ere selected as brand aC#?M7Mssadors:
Sharu%h rose from a "V actor to become IndiaFs top film star and national heartthrob (areenaFs
success is due to her PattitudeF, talent, hard $or% and the sheer ability to ma%e a mar% in such a
short time Both these stars ha&e said PMum%in haiF and made it happen for themsel&es
"he genre of this ne$ strategy campaign is Hindi cinema led "his genre connects millions
across India "he spirit of romance, dancingR the Indian cinema, $ell %no$n to most as
Bolly$ood, holds millions of Indians together as one
"he ne$ "V campaign of Airtel Magic crafted in the Hindi film idiom, magnifies the empo$ering
optimism of Mum%in Hai!, in the endearing situation of a boy7girl romance 9here Sharu%h
(han, sets his eyes on (areena (apoor and $ins her lo&e $ith the help of Airtel Magic
8Coignantly con&eying that special feeling $e all get $hen a dream is made possible and a &ictory
of the heart is $on:
"he strategy ne$ brand campaign is targeted at the large untapped base of intending mobile
customers from Sec A, B * "he estimated addressable mar%et of such customers in the ne)t
t$o years is around '/ million in AirtelFs 10 states "he ne$ strategy aims at correcting the
perception that the mobile category is useful mainly for PbusinessF or P$or%F related scenarios
"he ne$ strategy, brand positioning brand slogan is an outcome of an e)tensi&e nation$ide
research and is an integral part of Airtel MagicFs ne$ multi7media campaign "he campaign has
been created by Cercept Ad&ertising
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PHASE III -
Bharti used Airtel Magic to build a strong &alue proposition and accelerate mar%et e)pansion
through IndiaFs first national pre7paid card "V brand campaign
• 5irst time e&er in India 7 any pre7paid card brand gi&es such freedom to recharge any &alue
• A combination of the film genre e)posed through the "V medium designed to connect $ith the
masses of India
• Eouth based 7 romance dri&en strategy platform ma%es the &alue proposition of Airtel Magic 7
PAisi a4aadi aur %ahanN! come ali&e
• Sharu%h (han Ma%es Pe&erything in life possibleF Airtel today un&eiled its strategy for mar%et
e)pansion $ith the launch of its ne$ Airtel Magic pre7paid card brand campaign – PMagic Hai to
Mum%in HaiF "he &alue proposition is centered on a personFs desire to ma%e all his Q her
dreams, ambitions aspirations instantly possible "he ne$ campaign for Airtel Magic is all
about empo$ering millions of Indians to be on top of their li&es
"he brand is positioned to be rele&ant to the mass7mar%et $ho $ant to ma%e all their dreams,
hopes desires come ali&eR instantly At a amount of your choice you can recharge your
account $ith a&ailable &alidity time Impro&ing producti&ity, letting you befriend the $orld and
opening up ne$ hori4ons It gi&es you the freedom to control your life in a $ay ne&er possible
before Indeed, anything that you thin% is possible is possible $ith Airtel Magic "he ne$ brand
slogan PAisi a4adi aur %ahanF has been specially created to capture this effecti&ely
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Other rand uilding Initiatives:-
"he main idea is to stay ahead of competition for at least si) months 9or%ing on the abo&e game plan Bharti is constantly coming up $ith ne$er product offerings for the customers
"he focus, of course, is to offer better Duality of ser&ice
• "o ma%e the ser&ice simpler for customers using roaming facilities, Airtel has de&ised common
numbers for subscribers across the country for ser&ices li%e customer care, food ser&ices and
cinema amongst others
• It $ill also launch a unified billing system across circles so, customers mo&ing from one place to
another do not ha&e to close and then again open ne$ accounts at another place
• "o assist customer care personnel to deal $ith subscriber Dueries, a storehouse of .=,===
freDuently as%ed Duestions and their ans$ers ha&e been stored on the computers
• Bharti e)pects that most of its ne$ customers 8one estimate is that it $ould be 0= to = per cent of
the total ne$ subscriber base: $ould come from the pre7paid card segment So, they must be gi&en
&alue7added products and ser&ices $hich competitors donFt pro&ide
• Bharti, for the first time for a cellular operator, has decided to offer roaming ser&ices e&en to its
pre7paid customers, but the facility $ould be limited to the region in $hich they buy the card "o
ensure that customers donFt migrate to other competing ser&ices 8$hich is %no$n as churn and
ranges from 1= to 1/ per cent of the customer base e&ery month:, the company is also $or%ing on
a loyalty program "his $ill offer subscribers tangible cash benefits depending upon their usage of
the phone
• "he loyalty program $ill not be only for a Pbadge &alueF, it $ill pro&ide real benefits to customers
"he idea is to create an Airtel community
• Another %ey area $hich Bharti is concentrating its attention upon is a ne$ roaming ser&ice
launched in ?elhi under $hich calls of a roaming subscriber $ho is &isiting the city $ill be routed
directly to his mobile instead of tra&eling &ia his home net$or%
• "he company also offers multi7media messaging systems under $hich customers ha&ing a
speciali4ed phone $ith a in7built camera can ta%e pictures and e7mail it to friends or store it in the
phone "he cost per picture is bet$een s / to s
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• Bharti is also a$are that it has to ma%e o$ning a ready7to7use cellular ser&ice much easier than it is
today A %ey area is to increase the number of acti&ation centers 3arlier Bharti had '/= Airtel
*onnect stores $hich $ere e)clusi&e outlets 8for its ser&ices: and about '/= Airtel Coints $hich
$ere %ios%s in larger shops o$ acti&ation can be done by all of them, and not only by *onnect
outlets, all $ithin 1/ to '= minutes In comparison, the competition ta%es t$o to four hours
• Cre7 paid cards are really catching up $ith the mobile phone users and it is actually helping the
mar%et to increase 5irst, they are easier to obtain and con&enient to use nli%e post7paid, one
need not pay security deposits for pic%ing up a pre7paid card It is often a&ailable e&en $ith
paan$alas As befits a fast7mo&ing consumer ser&ice, the game is no$ mo&ing beyond price to
e)panding distribution reach and ser&icing a $ell7spread7out clientele $ith technology and
strategic alliances Bharti is focusing on t$o factors to ma%e pre7paid cards more attracti&e(eeping the entry cost lo$ for consumers and ma%ing recharging more con&enience
• Bharti is in the process of launching a ne$ system in alliance $ith MuC#?M7Mi7based *ompany
Venture Info"ech $hich $ill enable a pre7paid card user to rene$ his subscription by just s$iping
a card "he system $ill not only sa&e users the hassle of going out and buying a card e&ery time it
e)pires but also enable mobile companies to reduce the cost of printing and distributing cards
• Bharti "ele&entures has tied up $ith
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• Airtel presented #T) Inbo*+ the first Pon7airF SMS based interacti&e music dedication sho$
e)clusi&ely for Airtel and Airtel Magic customers Highly interacti&e V> based sho$ $ith real7time
feedbac% mechanism Both brands joined hands to target the high gro$th youth segment
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harti,s )ie! on its randing strategy:-
5irst, brand building efforts in todayFs conte)t ha&e to be seen in a more holistic manner
?eli&ering &alue on a sustained basis is perhaps the most potent %ey to build a brand that lasts
nflinching orientation to customer needs is the second %ey success factor *ustomers 8be it for
industrial products or consumer goods and ser&ices: across the $orld are more informed and, at the
same time, becoming more indi&idualistic in their needs and far more demanding $ith the passage
of time
Cro7acti&e trac%ing of shifts in consumer beha&ior, anticipating redefined or emerging customer
needs, and then reacting in real7time! are essential to attract and retain customer loyalty a %ey
element of creating brand eDuity in the present situation
*ustomi4ing the product 8and communication of its benefit: to meet the specific needs of &arious
consumerQcustomer sub7segments is the third element in creating brand appreciation
As far as allocation of time and financial resources are concerned, too many companies mista%enly
allocate a disproportionate amount on mere ad&ertising and promotion "his is not to say that
ad&ertising and promotion are less rele&ant Kn the contrary, $ith more choices and higher media
clutter, businesses need to budget for an increasingly higher spend on their brand promotion but
this has to be underta%en in tandem $ith enterprise7$ide reengineering! of the business
philosophy and core design, production, and deli&ery operations for the product itself
"he positi&e spin to this argument is that by first addressing the fundamentals, the enterprise itself
becomes more competiti&e "his can be the beginning of a &irtuous cycle $herein brand eDuity
continues to increase as the enterprise sustains deli&ery of an appropriate product or ser&ice at an
e&er increasing &alue
It is, ho$e&er, crucial to note that in the years to come, not only $ill the cost of building a regional
or a national 8or an international: brand $ill continue to rise but also the time ta%en to do so $ill be
longer and $ill need sustained and focused efforts
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C!m$%"i(!' ! m%":eti'; (t"%te;ie(
bet>ee'
)#%"ti Ai"te %'d V!d%!'e4
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Pu"$!(e !
Bharti Airtel and its ri&al Vodafone
"he comparison sho$s ho$ both of the companies ha&e been challenging each other to
gain mar%et shares
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9ith a different technology Vodafone creates its o$n mar%et
Vodafone odafone "oday deals in e&ery business of communication sector
Vodafone ma%ing and changing the strategies to capture the mar%et shares
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)"%'d $!(iti!'i'; b9 )#%"ti Ai"te
#ar"et segmentation
#eographical segment 8metropolitans cities India:
?emographic segment 7 middle income groups
Ceople age group of '= to '2 year
Target mar"eting
Ceople $ho li&ing in cities and to$ns
Coor or middle income group people
Eoungsters in big cities
Businessmen
$ositioning
*reating brands 8Sharu%h %han Sachin "endul%er:
Ads and promotions
Cromotion for study of poor childrens
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#ar"eting mi*
Crice6 lo$ price strategy
Clace6 ma)imum outlets and ser&ice centers
Croduct6 &erities a&ailable for &arious groups
Cromotion6 &arious schemes for pre7paid and post7paid
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MARKETING STRATEGIES
OF
VODAFONE 4
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V!d%!'e t%";et t#e "u"% I'di%
"he main targeted customers of Vodafone are from rural India
By offering cheap and light mobile sets Vodafone attracts most of the customers of small &illages
and to$ns
Oe"i';
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)RAND POSITIONING
)Y
VODAFONE
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#ar"et segmentation
#eographical segment 8rural India:
?emographic segment 7 middle income groups
Target mar"eting
Ceople li&ing in small to$ns and &illages
Coor and middle income groups
Eoungsters in big cities
Businessmen
$ositioning
*reating brands
Ads and promotions
#ar"eting mi*
Crice 6 lo$ price strategy
Clace 6 ma)imum outlets and ser&ice centers
Croduct 6 &erities a&ailable for &arious groups
Cromotion6 &arious schemes for pre7paid and post7paid
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Services provided by harti Airtel
• Mobile ser&ices $ith #SM technology
• 5i)ed7line connections
• ational and international long distance ser&ices
• VSA", Internet ser&ices and net$or% solutions
• Broadband ser&ices
Services provided by )odafone .
1 mobile ser&ices $ith #SM technology
' fi)ed7line telephone ser&ices
- ni&ersal Internet$or%ing
. VoIC 8Voice o&er Internet Crotocol:
/ Interacti&e "ele&ision
0 Visual *ommunication
Broadband Cortal
2 "elecommuting
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RESEARCH METHODOLOGY
Achie&ing accuracy in any research reDuires a deep study regarding the subject "he prime
objecti&e of the project is to compare Airtel $ith the e)isting competitor 8Vodafone: in the mar%et
and the impact of 9++ on Airtel
"he research methodology adopted is basically based on primary data &ia $hich the most recent
and accurate piece of first hand information could be collected Secondary data has been used to
support primary data $here&er needed
$rimary data !as collected using the follo!ing techniues
Luestionnaire Method
?irect Inter&ie$ Method and
Kbser&ation Method
"he main tool used $as, the Duestionnaire method 5urther direct inter&ie$ method, $here a face7
to7face formal inter&ie$ $as ta%en +astly obser&ation method has been continuous $ith the
Duestionnaire method, as one continuously obser&es the surrounding en&ironment he $or%s in
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T9$e ! Re(e%"
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DATA COLLECTIONDATA COLLECTION METHODMETHOD
"H33 "9K "EC3 K5 M3"HK? K5 ?A"A *K++3*"IK"H33 "9K "EC3 K5 M3"HK? K5 ?A"A *K++3*"IK
•• CIMAE ?A"ACIMAE ?A"A
•• S3*K?AE ?A"AS3*K?AE ?A"A
$rimary data !as collected using the follo!ing techniues
Luestionnaire Method
?irect Inter&ie$ Method and
Kbser&ation Method
"he main tool used $as, the Duestionnaire method 5urther direct inter&ie$ method, $here a face7
to7face formal inter&ie$ $as ta%en +astly obser&ation method has been continuous $ith the
Duestionnaire method, as one continuously obser&es the surrounding en&ironment he $or%s in
?A"A S3? 5K "H3 3S3A*H 9K( 9AS CIMAE I A"3?A"A S3? 5K "H3 3S3A*H 9K( 9AS CIMAE I A"3 PRIMARY DATAPRIMARY DATA
CIMAE ?A"A IS "HA" 9HI*H IS "H3 *K++3*"3? 5K "H3 5IS" "IM3CIMAE ?A"A IS "HA" 9HI*H IS "H3 *K++3*"3? 5K "H3 5IS" "IM3
A? "HS HACC3 "K B3 KI#IA"3? I *HAA*"3A? "HS HACC3 "K B3 KI#IA"3? I *HAA*"3
*ESTIONNAIRE S*RVEY*ESTIONNAIRE S*RVEY 66
I "H3 S"?I3S A L3S"IKAI3 IS C3CA3? "H3 L3S"IKAI3I "H3 S"?I3S A L3S"IKAI3 IS C3CA3? "H3 L3S"IKAI3
*KSIS"S K5 1/ L3S"IKS*KSIS"S K5 1/ L3S"IKS
SECONDARY DATASECONDARY DATA66
S3*K?AE ?A"A 353 "K "H3 ?A"A "HA" HAS B33 A+3A?ES3*K?AE ?A"A 353 "K "H3 ?A"A "HA" HAS B33 A+3A?E
*K++3*"3? "H3 S3*K?AE ?A"A, 9HI*H HAS B33 S3? "K *AE K" "HIS*K++3*"3? "H3 S3*K?AE ?A"A, 9HI*H HAS B33 S3? "K *AE K" "HIS
S"?E, A3 AS 5K++K96S"?E, A3 AS 5K++K96
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•• BKK(S, >KA+S, MA#AUI3S, 39SCAC3SBKK(S, >KA+S, MA#AUI3S, 39SCAC3S
•• I?S"E 3CK"SI?S"E 3CK"S
•• *KMCAEFS I"33" SI"3*KMCAEFS I"33" SI"3
•• SKM3K"H3 3+3VA" S"?E MA"3IA+ A? 93BSI"3SSKM3K"H3 3+3VA" S"?E MA"3IA+ A? 93BSI"3S
SAMPLE *NITSAMPLE *NIT6 7 ?3+HI *6 7 ?3+HI *
"H3 3S3A*H CK*3SS 9AS ?K3 BE I"3A*"I# 9I"H MB3 K5"H3 3S3A*H CK*3SS 9AS ?K3 BE I"3A*"I# 9I"H MB3 K5
*S"KM3S ?I# "H3 A*"IVI"I3S C35KM3?, 9HI*H I*+?3?, MA(3"S,*S"KM3S ?I# "H3 A*"IVI"I3S C35KM3?, 9HI*H I*+?3?, MA(3"S,
*K+? *A++I#, *AKCI3S, 3"* SAMC+3 ?3SI# *KSIS"S K5 A?KM*K+? *A++I#, *AKCI3S, 3"* SAMC+3 ?3SI# *KSIS"S K5 A?KM
SAMC+I#SAMC+I#
SAMPLE SIESAMPLE SIE6 7 /= C3KC+36 7 /= C3KC+3
.'
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METHOD OF COLLECTIONMETHOD OF COLLECTION6 76 7
5I3+? CK*3?3 5K #A"H3I# CIMAE ?A"A I*+?3? KBS3VA"IK A?5I3+? CK*3?3 5K #A"H3I# CIMAE ?A"A I*+?3? KBS3VA"IK A?
I"3VI39 S*H3?+3 I 9HI*H "H3 L3S"IKAI3S 933 5I+3? BE "H3I"3VI39 S*H3?+3 I 9HI*H "H3 L3S"IKAI3S 933 5I+3? BE "H3
I"3VI393I"3VI393
C3SKA+ I"3VI39S "HK#H S3+5 A?MIIS"33? SV3E 9AS ?K3 "KC3SKA+ I"3VI39S "HK#H S3+5 A?MIIS"33? SV3E 9AS ?K3 "K
*K++3*" "H3 ?A"A, MA(3" 3S3A*H 9AS ?3"A(3, "HA" 9AS*K++3*" "H3 ?A"A, MA(3" 3S3A*H 9AS ?3"A(3, "HA" 9AS
A**KMC+ISH3? BE C35KMI# VAIKS A*"IVI"I3S ?3SI#3?A**KMC+ISH3? BE C35KMI# VAIKS A*"IVI"I3S ?3SI#3?
3S3A*H IS"M3"3S3A*H IS"M3"66
L3S"IKAI3L3S"IKAI3
THE *ESTIONNAIRE +AS FORM*LATED )Y KEEP IN MIND THE FOLLO+INGTHE *ESTIONNAIRE +AS FORM*LATED )Y KEEP IN MIND THE FOLLO+ING
POINTSPOINTS6 76 7
•• #IVI# "H3 3SCK?3"S *+3A *KMC3H3SIK K5 "H3 L3S"IK#IVI# "H3 3SCK?3"S *+3A *KMC3H3SIK K5 "H3 L3S"IK
•• I?*I# "H3 3SCK?3"S "K *K7KC3A"3I?*I# "H3 3SCK?3"S "K *K7KC3A"3
•• #IVI# IS"*"IKS AS "K 9HA" IS 33?3?#IVI# IS"*"IKS AS "K 9HA" IS 33?3?
•• I?3"I5EI# "H3 33?S "K B3 (K9I?3"I5EI# "H3 33?S "K B3 (K9
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A b"ie #i(t!"9 ! Tee (e
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I(IA /&0010A2 #A23&T - &A20I&2 2OA(0O/3S A( T%&I2 2&SO01TIO
Indian *ellular mar%et immediately after the first round of licensing in '=1-7@0 $as beset by
se&eral problems for - 7 . years till the e$ "elecom Colicy of 1@@@ $as announced Some of
these roadbloc%s Q current position is tabulated belo$6
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ROAD)LOCKS
C*RRENT POSITION
High license fees
Migration to re&enue sharing mode in 1@@@ mitigates high initial fund reDuirements for payment of
license fees
InadeDuately funded businesses Q $ea% and fragmented promoters
Businesses that ha&e since been adeDuately funded gro$ing at o&er 0=; per annum, $hile
businesses $ith $ea% promoters continuing to languish 7 spate of acDuisitions Q mergers, $ith .Q/
major groups emerging in the last oneQt$o years
Regulatory authority not in place
"elecom egulatory Authority of India 8"AI: firmly in place, and its role being accepted by all
operatorsJ ?eptt of "elecommunications 8?K": restructured, $ith operations and policy ma%ing
roles &ested in different bodies
Issues relating to unfa&orable interconnect terms for pri&ate operators, pass through income, intra
circle long distance, spectrum a&ailability and allocation and the li%e remained unresol&ed for long
periods
Interconnect terms since rationali4ed, ris%s on pass through income to ?K" Q BHA"I
8Mahanagar "elecom igam +td: resol&ed to the satisfaction of all parties $ith changes in
methodology Q re&enue sharing, intra circle long distance allo$ed, spectrum a&ailability cleared
$ith &acation of freDuencies for usage by #SM operators
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$roblems in 4inancial closures due to:
+icensing tenure of 1= years
+arge upfront cash reDuirements from promoters due to hea&y license fee burden in initial
stages of deployment Asset based financing approach by Indian 5inancial Institutions
+icensing tenure increased from 1= to '= years
+arge upfront cash reDuirements for license fee payments mitigated $ith migration to
re&enue sharing mode allo$ing promoters to deploy more capital for capital e)penditureJ project
financing being considered by most financial institutions
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4oreign o!nership 5 change of partner limitations
5oreign o$nership norms clarified, and change of partners allo$ed as a matter of routine allo$ing
ease of entry Q e)it 7 pa&es the $ay for full control of businesses by foreign companies
InadeDuate gro$th of mar%et Q subscribers
oadbloc%s spelt out earlier resulted in lo$ mar%et Q subscriber gro$th, but $ith correcti&e
measures ta%en, mar%et Q subscriber base e)pected to 4oom
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6.6 (&)&0O$#&TS I T%& /&0010A2 I(1ST27
"he interconnection regime bet$een cellular operators and fi)ed7line operators is still biased
against the former
?espite the recent gains of the cellular industry, not e&erything is rosy "he cellular penetration
rate is still &ery lo$ at =2 percent in a nation of o&er one billion people
In recent years, many foreign companies had pulled out from their cellular joint &entures in India
due to the difficult operating en&ironment and bureaucracy In 1@@@ alone, S$isscom pulled out
from Sterling *ellular, "elstra from Modi "elstra and both the "elecom Krgani4ation of "hailand
and >asmine International from >" Mobile In '===, "elecom Malaysia sold its sta%e in sha
Martin "elecom, and both Shina$atra of "hailand and Be4eD e)ited from 5ascel In >une '==1,
British "elecom e)ited from Bharti *ellular Bell South International has also indicated its
intention to pull out from S%ycell *ommunications, and Hong (ong7based ?istacom is see%ing to
sell its sta%e in Spice *ommunications 5irst Cacific" "elecom, $hich $as later renamed Bharti Mobile 8?ecember 1@@@:, and S%ycell
*ommunications renamed Bharti Mobinet 8August '===: Bharti also acDuired the Cunjab license
of 3ssar and started operations, gi&ing competition to the lone operator there, Spice
*ommunications #oing for$ard, Bharti is li%ely to merge all its cellular companies into one
entity
5i&e companies together bid s10- billion to bag the licenses for the fourth operator slots in four
metros and 1- circles Bharti emerged as the o 1 bidder $ith eight ne$ licenses, follo$ed by
3scotel $ith four, Hutchison $ith three, and Vodafone and Idea cellular $ith one each Bharti and
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Hutchison ha&e already commenced operations in all the circles $hile Idea is set to launch in
?elhi 3scotel and Vodafone ha&e not made any head$ay
BHA"I, the third cellular operator for ?elhi and MuC#?M7Mi, started ser&ices in March '==1
BS+, as the third nation$ide cellular operator, launched ser&ices in (ol%atta and Bihar in
>anuary '==' "his $as follo$ed by "amil adu in >uly '==' A nation$ide launch $as scheduled
for ' Kctober '==' Ho$e&er, this has been postponed until after mid Kctober Knce BS+ rolls
out its ser&ice, most telecom circles $ill ha&e four cellular operators "here $ill be tremendous
competiti&e pressure, $hich $ill result in lo$er tariffs 5uture rate cuts are e)pected, $hich $ill
dri&e demand, together $ith falling handset prices and the introduction of prepaid ser&ices
In the midst of declining interest in technology stoc%s, Bharti came out $ith its long7a$aited initial
public offering 8ICK: in >anuary '==' +e&eraging on the success of its cellular ser&ice, the
company got a &ery good response from the primary mar%et "he total si4e of the ICK $as 12/
million shares at a floor price of s1= "he issue $as o&ersubscribed by more than '/ times,
netting s2- billion "his $ill be used to fuel its in&estment in long7distance, basic and cellular
ser&ices
As of Kctober '==', only BC+ Mobile has launched commercial general pac%et radio ser&ice
8#CS: in MuC#?M7Mi Ho$e&er, large7scale upta%e remains elusi&e 9hile both Bharti and
Idea ha&e #CS7enabled net$or%s, there is caution on their part to launch the ser&ice 9ith hardly
any applications, the success of #CS remains a Duestion
In '==/ Hutchison 3ssar an Indian and hong%ong telecommunication alliance $as ta%en o&er by
the nited (ingdom based telecommunication company name Vodafone telecomm ser&ices and
comes $ith the name of Vodafone essar
Virgin mobile comes in Indian "erritory $ith the alliance of "A"A telecommunication Maharashtra
in '=1'
Mitsubishi a >apanese telecomm ser&ices 8M"S: company comes in India in '==@ and ta%e o&er
first rainbo$ in ajasthan $ith *?MA net$or% criteria
/=
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&nterprise mobile applications 8 promising revenue stream
All along, customer acDuisition and the top line ha&e been the focus 5e$ operators ha&e
concentrated on offering differentiated ser&ices for businesses Ho$e&er, as operators reali4e that
offering basic &oice and Short Message Ser&ice 8SMS: $ill get them the numbers but not the
margins, some are no$ seriously loo%ing at the enterprise segment for pro&isioning superior
ser&ices
*ost7centered solutions li%e closed user group 8*#:, &alue7adds li%e unified messaging and
instant alerts are being offered
A &ariety of mobile applications are finding ta%ers among the enterprise segment Bharti is in the
process of introducing a facility to fleet management companies so that they can impro&e theefficiency of truc%s or buses by trac%ing mo&ement and ensuring higher7use, accurate route
planning Cremium automa%ers are also installing a global system for mobile communications
inside a &ehicle to help trace lost &ehicles and trac% do$n stolen cars
*orporations can choose enhanced ser&ices li%e user7defined call routing to pre&ent misuse *alls
can be barred, limiting access to select numbers and di&erting calls to one single number
Broadcasting ser&ices are also Duite popular, especially among fast food centers that ha&e a central
number #roup SMS is Duite popular, especially among enterprises both in the ser&ice as $ell as
the fast7mo&ing consumer goods 85M*#: segment that ha&e a large field force and need to
pro&ide regular updates on in&entory status, discount schemes and mo&ement of goods from
$arehouse to the retail outlet Ban%s too find bul% SMS ser&ice &ery useful to for$ard
transactional alerts to their customers
6.9 41T12& T2&(S A( (&)&0O$#&T
"here $ill be more competition, forcing operators to constantly focus on differentiations to
maintain their lead
• "he implementation of enhanced net$or%s li%e '/# $ill enable operators to offer data ser&ices
"his is an opportunity to customi4e and differentiate better
• "he entry of state7run operators li%e BS+ and BHA"I means that prices $ill no longer be
controlled, thus there is less chance of a cartel being formed
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• et$or% co&erage in terms of geographic spread and Duality of co&erage is crucial especially for
the business subscriber
• "he bigger the ser&ice pro&ider
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6. 2&;10ATO27 ISS1&S
"he operations of this sector are determined as under the Indian "elegraph Act of 122/ A
document buried in the sands of time "he ne)t major policy document, $hich $as produced, $as
the ational "elecom Colicy of '=1-, a conseDuence of the on going process of liberali4ation
Eear 3&ent
12/1 5irst telephones in India
[email protected] ationali4ation of telephone companies
1@2/ ?K" $as created
1@20 *reation of BHA"I and VS+
1@@1 "elecom eDuipment liberali4ed
'=1- +icenses for paging
'=1- "elecom policy announced
September '=1- #uidelines for pri&ate sector participation in basic ser&ices
o&ember '=1- *ellular licenses issued for metros
?ecember '=1- "enders for cellular licenses in 1@ cities apart from . metros
>anuary 1@@/ "enders for 'nd operator in basic ser&ices apart from ?K" on
circle basis
August 1@@/ VS+ launches Internet ser&ices
>anuary 1@@0 "AI formed
o&ember 1@@2 Internet policy announced
"he ational "elecom Colicy of '=1- document, $hich laid out broad policy guidelines rather than
a series of action points +i%e other policies, it sought to achie&e the impossible in finite time li%e
impro&e Duality of ser&ice and its a&ailability, $ide co&erage 8a phone in e&ery &illage:, at
reasonable rates, etc "he targets in Duantifiable terms $ere installation of @/mn additional lines,
telephone on demand by 1@@, and a C*K pop of /== "he 3ighth Clan had also allo$ed pri&ate
operators in &alue added ser&ices "o facilitate licensing, the nation $as di&ided into '= circles
8a%in to a state: for basic and '1 circles for cellular telephony MuC#?M7Mi falls in Maharashtra
circle and ?elhi in itself a circle
/.
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"he basic premise on $hich competition has been introduced is that e&ery circle $ill ha&e one
pri&ate operator apart from ?o"Q BHA"I for basic and t$o operators for cellular ?o"Q BHA"I
ha&e the option to become the third cellular operator in future
#o&ernment did not achie&e most of its stated targets "he basic theme, $hich $as broadening the
reach of telephony in India, has not been met 3&en liberali4ation policies $ere not implemented
properly "he regulator "AI $as set up after delays and confusion and e&en after its creation,
?o" continued to fight $ith it in courts It $as also affected by the resource crunch, and financing
options li%e BK", BKK" and BK+" $as not used at all "he major policy direction it sho$ed $as
to allo$ pri&ate sector entry in both basic and &alue added ser&ices "he intention, though noble
failed to achie&e its goals because of improper implementation, the economic costs are still borne
by the end user
"he telecom sector has $itnessed some fundamental structural and institutional reforms in the past
decade "elecom eDuipment manufacturing $as completely deregulated in 1@@1 Value7added
ser&ices 8including cellular ser&ices: $ere thro$n open to pri&ate sector participation in 1@@'
Basic ser&ices $ere opened to pri&ate participation in '=1- by di&iding the country into '1
telecom *ircles and allo$ing one pri&ate operator per *ircle to compete $ith ?K" An
independent telecom regulatory Authority of India $as set up in 1@@ A ne$ Colicy for Internet
Ser&ice Colicy Cro&iders 8ISCs: $as announced in 1@@2 allo$ing independent ser&ice pro&iders to
enter the sector ending the earlier monopoly of VS+ eorgani4ation of ?K", separating
policyma%ing function and ser&ice pro&ision and corporati4ation of ?K"
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Scope of the study
1 "o conduct this research the target population $as the mobile users, 9ho are using #SM
technology
' "argeted geographic area of ?elhiQ * Sample si4e of /= persons $as ta%en
- "o these /= people a Duestionnaire $as gi&en, the Duestionnaire $as a combination of both
open ended and closed ended Duestions
. "he date during $hich Duestionnaires $ere filled
/ Some dealers $ere also inter&ie$ed to %no$ their prospecti&e Inter&ie$s $ith the
managers of #SM ser&ice pro&iders $ere also conducted
0 5inally the collected data and information $as analy4ed and compiled to arri&e at the
conclusion and recommendations gi&en
Sources of secondary data
sed to obtain information on, BhartiFs history, current issues, policies, procedures etc, $here&er
reDuired
1 Internet
' Maga4ines
- e$s papers
. >ournals
/ Bharti *irculars Store
0 Bharti e$s +etters
Vodafone Store
2 Vodafone Ministore
/0
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D%t% %'%9(i(
A'd
I'te"$"et%ti!'
/
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Subscriber numbers in 8mn: held by Vodafone and Airtel
Ju'e-/B Se$-/@ De
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MARKET PLAYERS IN TELE COMM*NICATION
/@
O$e"%t!" M%":et (#%"e
Au;/B
M%":et (#%"e
Au;0.
Bharti Airtel 1@=0 ''.@
Vodafone '121 10@0
Vodafonecomm 1=- 10=1
Idea *ellular 1=./ 2.@
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FINDINGS AND ANALYSIS
A;e G"!u$ G"%$#
As $e can see from the abo&e graph, the people $ho are in the age group of '17'2 years are the
ones $ho are the ma)imum users of mobile phones "his segment is the one $hich gi&es
ma)imum business to the mobile operators "his segment constitutes the young e)ecuti&es and
other office going people "hey are 0/; of the total people $ho $ere inter&ie$ed "he ne)t age
group are the
people $ho are '27-/ years old "hey are '=; of the total "hey are those $ho are at home or
ha&e small business units etc And the ne)t age group is the youngest generation $ho are 1/7'1
years old "hey are school and college going students and carry mobile phones to flaunt "hey are
1/; of the total inter&ie$ed people
0=
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O
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Se"8i
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Cu(t!me" Se"8i
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T9$e O C%"d G"%$#
*ash cards seemed Duite popular among the people inter&ie$ed 2/; of the total mobile users
$ere ha&ing cash card connections "his means that the cash cards should be easily and readily
a&ailable in the local mar%ets Airtel should ma%e sure that Magic is a&ailable in each and e&ery
noo% and corner of the mar%et 1/; of the people $ere ha&ing sim connections $hich is the
regular bill
0.
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M!'t#9 e$e'(e ;"%$#
Ceople on an a&erage spend S /== per month as their mobile phone e)pense 0.; people spend
this amount '.; people spend S -== per month as their monthly mobile e)pense And theremaining 1'; had an e)pense more than S 1===, they could the ones ha&ing sim connections or
ha&ing cash cards and ha&ing a lot of business calls on their mobiles
0/
Monthly Ex!n"!
12%
#$%
2$%
R" #00
R" $50R" 200
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A>%"e'e(( Ab!ut +LL G"%$#
9++ seemed to be a ne$ $ord for many of the people ./; of the people $ere not at all a$are of
such a technology So, in order to get the ans$er for this Duestion they $ere first e)plained the
concept Knly, //; people %ne$ $hat 9++ is all about
00
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A!areness of
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*ustomer esponse to$ards
Luestionnaire
0@
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9hich Brand you, prefer mostN
Airtel
Vodafone
eliance
"A"A
Idea
=
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Ho$ long you ha&e been using this CroductN
=7' Eears
'7/ Eears
/71= Eears
More than 1= years
*onsumers response sho$n in chart for usage
1
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Are you using other product $ith AirtelN
Ees
o
Here are the customer responses about the use of the Airtel product and other
product rather than Airtel
in this segment of sur&ey 0 ; of customer are aspire $ith Airtel and -- ; sho$n
interest in other telecom products in urban areas
'
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?o you collect any information search before ma%ing
purchaseN
-
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S+OT ANALYSIS
St"e';t#(
1 Being one of the largest companies in India the company has achie&ed a degree of
focus in its core business of its products
' It has a strong brand name, superior Duality products and an en&iable distribution
net$or%
- It has a clear and $ell7defined organi4ation structure and limits of financialauthority
. Increase in ad&ertisement spends affect the companyFs margins
/ "he companyPs bottom line falls &ictim to the bloated and highly paid $or%force,
$hich affects its margins
+e%:'e((
• +ittle efforts o&er the Ad&ertising of products
• ?istribution channel is not accurately categori4ed
• Cremium priced products, hence canFt compete in lo$ price segment
• o separate strategy for rural mar%et
O$$!"tu'itie(
• "he company
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T#"e%t(
• "he slo$do$n in the economy has restricted topline gro$th of most 5M*# majors and
for Airtel also it $ill be difficult to maintain historical gro$th rates in such a depressed
scenario
• *ompanyFs major ra$ materials are influenced by go&ernment policies Q controls as
$ell as &agaries of the monsoons 5luctuations in the prices of ra$ materials $ould
ha&e significant impact on costs and margins of the company
Moreo&er, inordinate hi%e in Broad Band Internet products $ould also increases
companyFs production and distribution cost
/
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LIMITATIONS
o project is $ithout limitations and it becomes essential to figure out the &arious constraints that
$e under$ent during the study "he follo$ing points in this direction $ould add to our total
deliberations67
1 ?uring the study, on many occasions the respondent groups ga&e us a cold shoulder
' "he respondents from $hom primary data $as gathered any times displayed complete
ignorance about the complete branded range, $hich $as being studied
- +ac% of time is the basic limitation in the project
. Some retailersQ$hole sellers refuse to cooperate $ith the Dueries
/ Some retailersQ$holesalers ga&e biased or incomplete information regarding the study
0 Money played a &ital factor in the $hole project duration
+ac% of proper information and e)perience due to short period of time
2 Some retailers did not ans$er all the Duestions or do not ha&e time to ans$er
0
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S*GGESTIONS
5ollo$ing are the fe$ suggestions to AIRTEL for impro&ing the mar%et share and image of the
products concerned
04 PROD*CT
XModification must be brought about in AI"3+, in terms of Duality Its demand should be
increased
.4 PLACE
X "he brands must be made a&ailable easily in, C*K general stores
14 PROMOTION
X*ompany must underta%e e)tensi&e promotional acti&ities li%e ad&ertisements must be released
in different Medias to create brand a$areness
X5ree samples should be distributed among the prospects Sales promotion tools li%e gifts, contestsand coupons must be gi&en to retailers as $ell as customers and prospects
X *atalogues should be distributed among customers
54 PRICE
X Crice should be as competiti&e as other company maintains
X ?istribution of ne$ connection should be in reach of customer poc%et
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CONCL*SION
After analy4ing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer ser&ice and a&ailability is concerned "he ma)imum no of people
$ho use the mobile is in the age group of '= to '2 *ash cards are the most popular type of
mobile connections, as they are consumer friendly and recharging the connection is not a problem
Ma)imum no of people spends S /== on their connections As Airtel is the only company ha&ing
the ma)imum no of mobile connections so it must seriously loo% into the loop holes of the e)isting
customer ser&ice department
As $e %no$ that no$ Airtel has already launched its product $ith logo F Aisi a4aadi aur %ahan!F
has already became popular in mar%et So $e can say that in spite of so many competitors in the
mar%et Airtel is ha&ing a good position just because e&ery time, it tries its best to understand the
need of its important customers
5rom the comparison and deep analysis of e&ery aspect of business of both the companies $e can
conclude that bharti Airtel has to more $or% in e&ery field of communication business
It is the time not only to sur&i&e but to sustain in the mar%et for a long time
5or this Airtel has to $or% on its all mar%eting strategies, mar%eting, promotion, brand imageetc
Airtel has to ta%e Vodafone Very seriously and update its o$n strategies from time to time and
$hen the need arises
9ith aggressi&e mar%eting strategies Airtel has to target rural India as =; of population of India
li&es in these areas
"he other segment may be costumers of all age groups
2
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RECOMMENDATIONS
I ha&e made follo$ing recommendation to the company after doing the summer training there6
• "he company should modify its credit policy as they only target the cash paying customers
$ho are not easy to trace
• "he company should emphasis more on the Duality of Charmaceuticals Croducts it $as
mostly claimed by the e)porters that their receipts from company doesnFt matches $ith the
sampleFs Duality sho$n before gi&ing orders
• "he company should ma%e its mar%eting strategy fle)ible enough in order to face
competition
• "he company should %eep an eye on the proper deli&ery of the goods to e)porter on time,
as it has been recommended by e)porters to ma%e the deli&ery on time
• "he company rate policy must be fle)ible enough to catch ne$ customers because if
company offers lo$er price to a ne$ customer then he may continue buy the goods and can be a
permanent customer for the company
• "he company should offers such rate in the mar%et so that it may able to catch a bigger
mar%et share and it should be able to compete $ith the local traders and commission agents $hile
ha&ing a brand name
"he company should ta%e the opinion of e)porters from time to time to %no$ $hat problems they
are facing from the companyFs side And if any change they reDuire in present supplying
conditionN
@
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)I)LIOGRAPHY
In this project report, $hile finali4ing and for analy4ing Duality problem in details the follo$ing
Boo%s, Maga4inesQ>ournals and 9eb Sites ha&e been referred All the material detailed belo$
pro&ides effecti&e help and a guiding layout $hile designing this te)t report
)!!:(
Crinciples of Mar%eting –Chilip (otler (e&in %eller edi 1'
Mar%et esearch – ?? Sharma
esearch Methodology – * (othari
+eb(ite(
$$$Airtel$orldcom
$$$googlecom
$$$indiacom
$$$Vodafonein
http6QQ$$$blonnetcomQ'==.Q=0Q'0QstoriesQ'==.=0'0='12===htm, MuC#?M7Mi, >une '/,
'=1-
comQcompaniesQcompaniesYrQVodafoneYinfocomQ'==-11=.Ystop7roaminghtm, . o&ember '==-
?omain, Missed *all, at http6QQ$$$domainb
M%;%i'e(
Airtel 8' >uly to 1= >uly '=1-:
Airtel India page of H" paper 8"hursday 1?ecember '==.:
*o$ards India 8'0 ?ecember to . >an '==.:
2=
http://www.airtelworld.com/http://www.google.com/http://www.india.com/http://www.domainb/http://www.airtelworld.com/http://www.google.com/http://www.india.com/http://www.domainb/
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*ESTIONNAIRE
?ear SirQMadam,
I BI>3SH (MA, student of MBA of (ISHA IS"I""3 K5
I5KMA"IK "3*HK+K#E, M33" I am doing my project on C!m$%"%ti8e
%'%9(i( ! m%":eti'; (t"%te;9 ! V!d%!'e %'d Ai"te” Clease gi&e your precious time for
filling these details
L1 ame those companies $hich pro&ide telecom ser&ices no$ a daysN
• Airtel
• Vodafone
• eliance
• "A"A
• Idea
L' $hich mobile company ser&ices you are using no$ a daysN
• Airtel
• Vodafone
• eliance
• "A"A
• Idea
L - Among them, $hich Brand you, prefer mostN
•Airtel
• Vodafone
• eliance
• "A"A
• Idea
21
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L' Ho$ long you ha&e been using this CroductN
•
=7' Eears• '7/ Eears
• /71= Eears
• More than 1= years
L- Are you using other product instead of AirtelN
• Ees
• o
L/ ho$ $ould you rate the e)perience $ith BrandN
• Airtel
• Vodafone
• eliance
2'
3)cellent #ood A&erage Belo$ A&erage
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L0 ?o you collect any information search before ma%ing purchaseN
•
Ees• o
L If yes, $hich sources are usedN
•
Maga4ines
• ?ealers
• Sales 3)ecuti&es
• Kperators reference
• Camphlets and catalogue
• eference from friends and relati&es
• Any other
L2 9hat are the features you loo% for in a product before ma%ing purchase decisionN #i&e
preferences 817Highest, 07 least:
• Brand credibility
• Crice and ?iscount
• After sales ser&ices and parts, net$or%
• Value for money
• Vehicle performance
• Add on features or ergonomics of design
2-
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L@ 9hich of these mar%eting Q sales schemes attracts you $hile purchasing any connectionN
• #ood et$or%
• ?iscount scheme
• Ser&ice pac%age
• Any other
L1= If you ha&e to purchase a ne$ connection or product in near future, $hich Brand $ill you
go for and $hyN
• YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
• YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
• YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
L11 Are you a$are of &arious promotional acti&ities being run by Airtel, if yes then ho$N
Are you satisfied $ith these promotional acti&itiesN
• *ustomer *are
• By Ad 5ilms
• By *amp
• '. hrs call center ser&ices
2.
Very
Satisfied
Satisfied Some$hat
Satisfied
ot
satisfied
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L1' Ho$ $ould you rate Airtel performance as your e)pectation on / points scale 8/
HighestN:
1 ' - . /
• After Sale ser&ice
• Maintenance
• Croduct as per e)pectation
L1- 9hat are you suggestions for impro&ing the product Duality, ser&ice a&ailability and parts a&ailabilityN
• YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY