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A Consumer, Competitor and Product Strategy Analysis
Sangeeth Elka B022 Soham Kadam B033 Saurabh Kala B034 Prashanth K B038 Sumeet Mishra B043 Abhiram PVK B047 AIRTEL A Consumer, Competitor and Product Strategy Analysis
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Introduction Airtel, is an Indian telecom MNC based in New Delhi, India. Operates in 20 countries across South Asia, Africa, and the Channel Islands Found on 7 July 1995 by Sunil Bharti Mittal Largest in India, 4th largest in the world Also provides fixed-line, broadband, digital TV, mCommerce 2nd Most valuable $8.2 billion
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The Growing Wireless Telecom Market
Total monthly growth rate 0.52% Urban monthly growth rate 0.68% Rural monthly growth rate 0.30% For every 100 living individuals within an area 73.55 wireless connections Urban – Rural 2.25 wireline connections Urban – 5.80 Rural – 0.68
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Market Share
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Competitive Strategy Comparison
Parameters Airtel Vodafone/ Hutch Targets Urban, semi-urban and rural Urban Catchy Tunes Airtel Signature tune, Har ek friend Zaroori hota hai, Jo tera hai who mera hai You and I in this beautiful world Major Campaigns Express Yourself, Smartphone Network You and I, ZooZoo Appeal Emotional and Cultural aspects Contemporary trends Market Share 22.48% 18.16% Associations Satyamev Jayate Airtel Indian Grand Prix 2012 Airtel Rising Star soccer talent hunt • Vodafone IBL 2013 • Vodafone Cycling Marathon
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PESTEL analysis Political Technology
Good policies and responsibility for providing secure network. Political First wireless operator to supply roaming and long distance call services. Optical fibre line of kms. Technology Strict legal obligations regarding 3G auctions would favour Airtel Legal Trying to cater to all age groups with new initiatives like the ‘My Plan’ offer Social
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SWOT Analysis Strengths Weaknesses Opportunities Threats
- Largest operator in India - 4th largest operator in the world - First to launch 4G in India - Well-established nationwide infrastructure - High brand equity - Connects with Indian culture Weaknesses - Debt and finances - Africa acquisitions and operations - Late adoption of 3G and advanced wireless technologies - Untapped voice market - 3G and data revenue - Mergers and Acquisitions - Tapping 4G LTE for handsets - High competition in the telecom market - Unfriendly regulatory environment; expected to discontinue given the intentions of the new government - - Mobile Number Portability: More choices for the customer Opportunities Threats
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Analysis of the Respondent Data (Personal)
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Analysis of the Respondent Data (Questionnaire)
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Key Insights For Airtel
Only 5% of the people who own an Airtel SIM cite availability of recharge coupons as a major issue. Key Improvement Areas: I. Data Service: 31.57% (Mixed) II. Quality of Network: 26.31% (West & Southwest India) III. Customer Service: 23.68% (South India) 53.4% are brand loyal (for Airtel) when the new handset being bought is a low-budget handset while the same figure is 83.4% if the handset is high end (> Rs. 20,000). Working professionals are more brand loyal than students as far as Airtel is concerned. Corporate-specific CUG plans should be worked upon.
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Segmentation and Targeting
Segmentation and Targeting based on : - Geographical Regions The different geographic regions are handled independently and different campaigns are run according to the tastes and preferences of people in each region - Demographics (Age and Income) Targets younger population by providing them cheap call/message rates at night and cheap internet plans in 2G Targets elder population by providing plans for calls at reasonable rates and Internet plans for 3G Targets lower income groups by offering them cheap and affordable lifetime validity prepaid cards Targets higher income groups by offering them premium services like VAS(value added services), GPRS plans and 3G technology
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Positioning Re-positioned as a service for the youth especially college going students Introduced internet data sharing pack 1998 to 2002 2002 to 2006 2006 to 2008 2008 to 2013 2013 to Present The Smartphone Network Re-positioned as a service for people across diverse cultures, age groups and professionals Airtel’s signature tune by A.R. Rahman and ad featuring people from different nationalities and age groups Re-positioned itself as an omnipresent service that can be leveraged for daily activities Positioned as a service for the Urban Elite and Professionals Mobile phone was an expensive gadget for business people
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Campaigns Smartphone network Unlimited Calling and Internet all night
Boss is the wife Advertisements everywhere regarding 3G network expansion by 42% Videos on website to educate the consumers about 3G and Airtel Unlimited Calling and Internet all night Pre-Marriage setting Airtel Live and Internet One rupee videos and songs Airtel Money Multiple Language launch Apni boli ka apna mazaa Youth oriented “Har ek friend zaroori hota hai” and “Jo tera hai, woh mera hai” Internet pack sharing Airtel Music “My Song, My Story”
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Marketing Mix Product: Prepaid and Postpaid, Data services and Value-added services Place: Matchbox Strategy Promotion: Constant advertisements throughout the year focusing on different aspects of the product Price: At par with all the competitors. Re. 1 video on Airtel Live! Customized plans for Prepaid and Postpaid consumers
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Conclusion
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