(I) AB as the Brand Ambassador-Though the company was a bit late in appointing Abhishek Bacchan as the brand ambassador of the company(In October 2007). The company’s focus on its ads also shifted from highlighting it’s tariff plans and network coverage to use of mobile telephony to resolve social issues. It also tied up with the IPL, Mumbai Indians, and players like Sachin Tendulkar and Zaheer Khan promoted the brand.
(II) Focus on the Existing Costumer Base-Idea claims that it never chased the costumers at the cost of profitability like many other telecom players did in the country. So while the others were busy n putting their money in newer markets. Idea focused on circles it already had a strong presence, Such as Gujarat, Andhra Pradesh, Kerela, and gradually stepped into newer markets. “We wanted to make investments only in the markets where we were confident of getting reasonable return on investment.” Said MD Himanshu Kapania. Today Idea has covered all 22 circles of telecom sectfirm Indus Towers. It also has a 16 percent stake Gurgaon based telecom infrastructure.
(III) Highest share of Rural Costumer Base- Idea has the highest share of rural sub Comapscribers as percentage of total subscribers among GSM players. Not surprisingly, It’s avg revenue per user is lower than the competition.. During Oct-Nov 2010, Idea’s ARPU was Rs. 126.9 compared to Airtel(150.37) and Vodafone(127.7). But with profits growing at a compounded annual growth rate of more than 70 pc, it would be hardly worried. [continues]
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