Marketing Strategy Airtel

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Marketing Strategy Comparison AirTel & Hutch
Rahul, Priyanka, Zardar, Rashmi Indian Institute of Planning & Management Ahmedabad

Project Introduction

“…Telecoms are rolling out like never before. And that 100-million mark doesn't look too far away. The mobile subscriber base crossed 65 million in September 2005, an over-30 per cent increase over the previous year…”

Project Introduction Cont’d…
• Indian Cellular Industry will touch $24 billion by the end of 2006. • Airtel (22 per cent market share, over 15 million mobile subscribers, source: Cellular Operators Association of India) witnessed its highest-ever net addition of 1.8 million mobile customers in a single quarter.

Project Introduction Cont’d…

• Hutch, with over 10 million subscribers (15 per cent market share) may be No. 4 (behind Reliance and BSNL) at present, but it has the highest average revenue per user.

AirTel Marketing Strategy

Business Process Management

Process Innovations and Continuous Improvement through People Involvement Problem Investigation by "Fact Based - Root Cause Analysis"

Customer-Defined Business Processes
Based on Customer Specifications, AirTel have webbed many business processes on the following concepts: Delivery time Turn around time Lead-time Time to market Other performance indicators

AirTel Marketing Strategy Cont’d…
Result Oriented Approach
Each process has been designed by first planning the desired result. The targeted results are then arrived at through identification of the following: The next-customer and end-customer expectations. Quantifiable purpose of the process and key result areas. Past experience of "What went wrong and can go wrong".

AirTel Marketing Strategy Cont’d…
Naturally, the target customer was clearly defined: elite, up market professionals and entrepreneurs. "We positioned AirTel as an aspirational and lifestyle brand, in a way that trivialized the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave him a badge value,“ – recalls Hemant Sachdev, chief marketing officer (mobility) and director, Bharti Tele-Ventures.

AirTel Marketing Strategy Cont’d…
• In 1999, the rules of the game changed. The New Telecom Policy came into effect, replacing licence fees with a revenue-sharing scheme and extending the licence period from 10 to 20 years. • Now, cellular service operators could drop their prices and target new customer segments. As SEC B became part of the catchment area, Airtel's communication changed from "power" to "touch tomorrow".

AirTel Marketing Strategy Cont’d…
• In 2002, Airtel signed on music composer A R Rahman and changed its tune to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the most downloaded ringtone in India. But that was just part of the ongoing communication.

AirTel Brand Review
• AirTel has the most recognizable brand in the Indian operator space, with 30.8% of our respondents able to identify it as a mobile brand unaided. • While this is lower than many of its competitors, examination of the various brand strength indicators shows AirTel has a much stronger brand than its competitors do. Source: IE Market Research Corp. – 30th Oct 2006 - 14 Pages ID: IEMR1370648

AirTel Brand Review cont’d…
• Of respondents, 27.4% identified AirTel with “cool”, 26% with “creative”, and 22% with “technically advanced”. Only 8.6% of respondents identified AirTel with “cheap”. Between 2004 and 2005, it has increased its market share from 20.5% to 21.5% of the market. Source: IE Market Research Corp. – 30th Oct 2006 - 14 Pages ID: IEMR1370648

AirTel Ad Campaigns

Hutch Marketing Strategy
“…A big success factor was how aspirational overtones in brand imagery stayed, even though price wars had started. Again, the colour orange was a seminal attribute; the brand's slogan was 'The future's bright, the future's orange'…”

Hutch Marketing Strategy...
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