Airtel Branding Case Study

Airtel is the world’s 3rd largest mobile telecommunication Indian MNC operating in 20 countries across Asia & Africa. Airtel has presence in 22 telecom circles across India & is India’s largest integrated telecom service provider.

Segmentation, targeting, positioning in the Marketing strategy of Airtel

Airtel uses mix of segmentation strategies to segment its offerings like basic Call /SMS plans, prepaid / Post-paid plans, VAS – Data, caller tunes etc. Apart from geographically segmenting the market in East, West, North, South & central, the market is also segmented in each region on the basis of demographic variables like age, Income, Social groups.

Different geographic regions are handled independently and different campaigns are run according to the preferences of people in each region. Airtel has targeted the generation Z of 15-25 ages, generation X & baby Boomers by using different campaigns over the period of time i.e. campaign like “Har Ek friend Jaruri hota hai”/ “Jo tera hai wo mera hai ” to target Gen Z and recently launched campaign of “one touch internet” targeting Gen X & baby boomers.

Airtel has been successful in top-of-the-mind recall amongst cellular phone users and is enjoying a leadership position in most markets. After changing its logo it has repositioned itself as Young, Energetic & Internationalbrand. It has evolved itself as a torch bearer of the telecom industry in India.

Marketing mix – Click here for Marketing mix of Airtel

SWOT analysis – Click here for SWOT analysis of Airtel

Mission –“Hunger to win customers for life.”

Vision- “Our vision is to enrich the lives of our customers. Our obsession is to win customers for life through an exceptional experience.”

Tagline – “The smartphone Network”.

Competitive advantage in the Marketing strategy of Airtel

With the formation of Indus tower & partnering with Idea & Vodafone for Indian Operations, Airtel has extended its infrastructure in the extreme parts of the country for nationwide penetration, creating  competitive edge over other players in terms of low operational cost, better network connectivity, coverage, low call drops & better customer service.

Airtel developed a sustainable advantage through its excellent network of telecom towers. In many locations, newer entrants found it cheaper to rent Airtel’s existing infrastructure rather than setup new towers.Also spending extensively on advertising & promotions helped it to become a market leader. Word of mouth is one of the strongest forms of promotions & Airtel has completely leveraged that. Airtel is always known for its innovation and some of its products were thelifetime prepaid, Airtel live, Hello tunes, My Plans, M-check are pioneer strategies & the list is never ending.

BCG Matrix in the Marketing strategy of Airtel-

Airtel have 4 SBU’s (Strategic business unit) which occupies different places in BCG matrix namely

Mobile services are stars, as it is operating in 22-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers & (22.7 %) market share.

Tele-media services – fixed-line services are dogs since there is a phenomenal decrease in the services in the industry as a whole.

High-speed broadband which is question mark since it has best in class network with 126,357Rkm of fibre laid down but still they have presence in only 87 metros & tier-1 city further investment can increase their market share & will help it to move to stars.

Airtel business to large enterprise is question mark, although it provides a broad portfolio of services to large Enterprise, Government, Small & Medium businesses and carrier customersbut the services offered by Airtel are expensive as compared to other players.

Digital TV services are stars, Airtel have 18% market share in the DTH services second to only Dish TV & have head on competition with TATA sky.

Distribution strategy in the Marketing strategy of Airtel –

It has wide spread simple and effective channel structure. Company uses 2-Tier & 3-tier distribution network system.

Under 2-tier distribution network, company appoints UD (urban distributors) & RS (Rural Suplliers). UD distribute the items to retailers according to the demand & transfer easy balance to retailer through FOS (Field officer Sales) SIM who work under UD’s.

Under 3-tier distribution RS (rural supers) distributes the items to RD (Rural Distributors) & transfer easy balance into RD’s SIM, who then distribute it to Retailers.

Apart from all these company also uses Airtel Relationship centres under franchised model & company officials for corporate sales.

Brand equity in the Marketing strategy of Airtel –

High TOMA (Top of mind awareness), ARPU (average revenue per user), and extensive distribution system & as high as 300+ million subscribers has helped Airtel in crafting market leader position for itself over the years. Also Airtel has shifted from a technological brand to a communication brand through its continuous evolving branding & marketing efforts. It has rechristened its logo to make it more of international, young & Energetic brand.

Competitive analysis in the Marketing strategy of Airtel

Being the torchbearer of the telecom industry in India it has reshaped the telecom industry over the years. From tele-density of just 18.3 % in FY’07 to 75.2 FY’14 (DOT data), industry has seen a high growth momentum. Reliance which initially targeted the B & C customer segments, lost its market share to new & existing players like Idea, Vodafone, Tata-Docomo, and BSNL etc. due to Network & customer service issue. In wireless data services players like MTS, TATA Indicom have high market share in the selected circles whereas Airtel is still figuring out to establish itself due to High data charges.

Market analysis in the Marketing strategy of Airtel –

In the highly competitive telecom market where each company is trying hard to retain their customers & increase ARPU (Average return per user), Airtel is facing stiff competition from small & local players like Uninor, Aircelwho are present in few circles. Also players like Vodafone who are fighting head on to emerge as a market leader possess a serious threat to the company.

Connectivity, data services & VAS(Value added services) will be the driving force of the telecom industry.

Customer analysis in the Marketing strategy of Airtel –

Customers group consist of all 3 segments A, B & C with their distinctive needs but majorly it is targeting B segment which is Middle class with aspirational needs & is the fastest growing segment. To cater the corporates clients & A-class they have dedicated workforce. Airtel deals in both B2C & B2B customers.

 

INTEGRATED LIVE PROJECT ON BHARTI AIRTEL

“STUDY ON BRAND POSITIONING OF AIRTEL”

DONE BY

PRASAD PHAL

 

ACKNWOLEDGEMENT

 

The project comes directly from my heart with sincere dedication, devotion and efforts. I would also like to express my deepest gratitude towards those whose help and contribution cannot be appraised.

 

I also take the opportunity to thank Mr. Mithun Bhonsle, Area Manager, BHARTI AIRTEL, Goa unit, without whose help and guidance I would not have been able to complete my project.

 

I would also like to express my sincere gratitude to our faculty guide who helped me in solving the problems and difficulties and in completing the project.

 

I would also like thank all the Managers, Executives, Supervisors, and Workers of the company who provided me relevant information in spite of their busy work schedule.

 

 

 

 

 

 

 

DECLARATION

 

 

 

 

 

 

I hereby declare that this integrated live project entitled “BHARTI AIRTEL” is my work, carried out under the guidance of my faculty and my company guide Mr.Anoop Das. This live project report neither full nor in part has ever been submitted for award of any degree of either this college or any other college.

                                                                                                

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                          

CERTIFICATE

 

 

“Certified that this project report is a record of work done by the candidate himself during the period of study under faculty Guidance and that to the best of my knowledge it has not previously formed the basis of the award of any degree or Diploma in ICFAI University or elsewhere.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                 

 

__________________                                                     

 

                                                                                              (Faculty guide)
INDEX

 

1

INDUSTRY PROFILE

6

2

COMPANY PROFILE

 

7

3

OBJECTIVE

 

9

4

LIMITATION

 

10

5

CHP-1) CASH MANAGEMENT

 

11

6

CHP-2) PERFORMANCE APPRAISAL

 

16

7

CHP-3) PRICING POLICY

 

23

8

CHP-4) LEGAL ENVIRONMENT

 

26

9

CHP-5) BRANDING AND PRODUCT RANGE

29

10

CHP-6) FINDINGS AND ANALYSIS

 

40

11

CONCLUSION

 

49

12

BIBLOGRAPHY

51

13

ANNEXURE

 

52

14

ABBRIVIATION

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDUSTRY PROFILE

Telecommunications industry in India

 

The telecommunications industry is growing at a very rapid pace in India. Also India is one of the fastest growing telecom markets in Asia. India is the 4th largest telecom market in Asia. The telecom Market consists of mobile phones, cellular service providers, and broadband network.

 

The telecommunications industry has undergone a lot of change in the last 2   decades. From deregulation to privatization to telecom services, to liberalization of Indian telecom policies, increase in competition, introduction of new technologies like black berry phones, and internet and convergence of technologies. Since the telecom industry is growing at a rapid pace, Bharti School of telecom has been dedicated to the country.

 

This telecom revolution has contributed enormously to increased efficiency in the economy. It has reduced transaction costs. It has increased connectivity across the length and breadth of our vast subcontinent. It has brought Indians closer to each other. The telecom sector is driving today the growth of both incomes and employment. Indeed, this growth is creating new business and new employment opportunities. India has emerged as a major base for the telecom industry worldwide and we intend to facilitate the further growth of this vital industry.

 

Also new players like Vodafone, one of the leading telecom companies in the world have entered the Indian telecom market.

 

 

COMPANY PROFILE

BHARTI AIRTEL LTD– An Overview

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. 

Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services.

Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 57,341,120 customers as on December 31, 2007, consisting of 55,162,944 GSM mobile and 2,178,176 broadband & telephone customers. Bharti Airtel crosses the 60 million customer mark .

The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - mobile services, telemedia services (ATS) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the ATS business group provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units - carriers (long distance services) and services to corporates. All these services are provided under the Airtel brand.

 

The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company.

The company's mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis. Bharti Airtel is the only Indian company in the top 10 list. Bharti Airtel has ranked ahead of companies like Motorola (Rank 11), Google  (Rank 13), Microsoft (Rank 37), Hewlett Packard (Rank 44) and Oracle (Rank 51)

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers broadband & telephone services in 94 cities.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management The company's mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

 

OBJECTIVE

 

 

 

To study concept  cash management in the company. 

 

To study performance appraisal system in the company.

 

To study the concept pricing policy of the company.

 

To study the concept of political and

 

           To study the concept of branding and product range.

 

            Findings and analyzing on the survey coducted .

 

 

LIMITATIONS

 

·        A major limitation of this study is that it is very difficult to contact the concerned person as it was difficult to fix appointments with them due to their busy schedules due to which the true information cannot be revealed.

 

·        Retailers were not ready to respond to the questionnaire as they had tie ups or contracts with other service providers and thus refused to entertain.

 

·        Survey was restricted to customers in Goa region only.

 

CASH MANAGEMENT

 

Objective: To study the Cash management of Bharti Airtel

                                                                                                           

Cash, the most liquid asset and also referred to as the life blood of a business enterprise is of vital importance to the daily operation of business firms. Its efficient management is crucial to the solvency of business because cash is the focal point of the fund flows in a business.

There are two ways of viewing the term ‘cash'. It includes actual cash in the form of notes and coins and bank drafts held by a firm and the deposits withdraw able on demand. It also includes marketable securities which can be easily sold or converted into cash.

 

Need for Cash Management

 

Cash in hand or at bank is the most liquid of all the current assets. Thus larger cash and bank balances indicate high liquidity position of a company. Why do companies hold cash? This is an important question to deal with. Different reason for holding cash are given as

 

Transaction Motive: Airtel has post paid and prepaid connection. If the customers uses post paid connection then sum amount is charged as service charges to the customer by the company but when the bill is given to the customer then there is always a chances that the customer don't pay the bill which some time incurs loss to the company,  entering into transactions with other entities. Transaction means either buying or selling of different products. While some of these transactions may not result in immediate inflow/outflow of cash (example credit purchases and sales), while other transactions cause immediate cash inflow and outflows. Therefore this company always keeps a certain amount as cash to deal with routine transactions where immediate payment is required.

 

Precautionary Motive: Contingencies may crop up when they are least expected to occur. A sudden fire may break out, accidents may happen, creditors may present bills earlier than expected or debtors may make payments later than warranted. For all such surprises Bharati Airtel co is always prepared so as to minimize losses. And therefore this company maintains certain amount in the form of cash.

 

Speculative Motive: companies also maintain cash balances in order to take advantages of opportunities that do not take place in the course of routine business activities. Say suppose there may be sudden decrease the rental charges of postpaid connection which is not expected to last long. These are the transactions which are speculative in nature and for which the company needs cash.

 

 

Objectives of Cash Management

The objective of cash management can be regarded as one of making of short term forecasts of cash position, finding avenues for financing during periods when cash deficits are anticipated and arranging for repayments during periods when cash surpluses are anticipated with a view to minimizing idle cash as far as possible. Some of the objectives of cash management are as follows

 

Cash Forecasting and Budget: it is very important for Bharati Airtel to carry out proper forecasting for future cash requirements which may be because of different costs associated with the business proceedings, The stocks are required to meet the customer requirements as when demanded. Short-term forecasting is prepared under the receipt and payment method, showing the time and magnitude of expected cash payments and receipts.

Preparing Cash Reports

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