Overview : The case examines the emergence of BSNL as the leading company in the Indian telecom industry in early 21st century. It explores in detail the changes taking place in the industry through the early 1990s - primarily the entry of private players and the emergence of cellular telephony. It focuses on the various products and strategies adopted by BSNL for its growth and the future course of action.
Analysis : We will look at the case through the 4C framework: Context, Company, Consumers and the Competition. The critical issues in each of these aspects and the future course of action
Context( Background): There was tremendous growth in the telecom sector. The key stakeholders involved are the Operators and the customers. The market was divided into postpaid and prepaid users. The key issues here were • High growth in prepaid users
• ARPU declining at the rate of more than 5%
• High Churn rate
• Less usage of Value Added service in the prepaid segment
Company: Bharat Sanchar Nigam Limited (BSNL) was formed on October 1, 2000. It is the largest telecom service provider of India offering the full range of communication services. It intends to make available affordable and effective communication for citizens. The Value proposition is as follows • Availability of affordable communication to all citizens • Improve the quality of telecom services
Firstly let us look at the position in Value Network and the Segmentation of the Customers
Key takeaway is that BSNL needs to have the right kind of infrastructure. In this aspect we will look at the 7Ps framework and analyze it from that point of view.
Product( Services): Basic Telephony, mobile ( CDMA, GSM) technologies, Dedicated leased circuits, Voice over IP, Internet services) . Scope in Intelligent Network Services
Price : The pricing was based on usage as per the tariff, apart from the installation. The revenues were collected prior( for the prepaid users) or post usage.
Place: The place
The BSNL – Bharat Sanchar Nigam Ltd., is the largest telecom service provider of India offering the full range of communication services – basic land line, wireless mobile(CDMA), Leased line circuits, Internet telephony, etc. catering to various segments SOHO ( Small office Home office), Corporate, Individuals, Business groups. In terms of the revenue yield it is found that 15% of the subscriber yields more than 85% of the revenue and this group when distilled further who result in a 5 % of the customer population yielding 50 – 60% of the billing. In a competitive environment it is this group of customers who are most vulnerable to be lured away by the private operators (competitors). The following information has made an attempts to define the various relationship markets present in the segment.
DEFINING THE MARKETING MIX - 7 Ps
The product is provision of communication service( Basic Telephony, mobile ( CDMA, GSM) technologies, Dedicated leased circuits, Voice over IP, Internet services)
The price is based on the usage charges as per tariff apart from the installation cost. Discounts are offered to heavy callers.
The place of delivery is the customer premises/location.
The promotion very limited till recently. However now logos, brands names for different services, slogans (Connecting India) etc have been coined. Very recently advertisement in the print media as well as television commercials has been released. (www.bsnl.co.in)
The people have a key role to play since it is a service sector. However this is the weakest link in the marketing mix since the monopoly attitudes have hardly changed at the ground level.
The process is another one of the neglected Ps. A lot of corrective processes have being provided for after the complaints by line up of escalations, meeting the senior officials etc. Yet the preventive/ proactive...
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