Dil jo chahe pass laye

Presented By:
1

INTRODUCTION
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.
It is one of Indias leading private sector providers of telecommunications services with more than 110 million customers. The businesses at Bharti Airtel have been structured into three individual strategic

business units (SBUs) - Mobile Services, Airtel Telemedia Services & Enterprise Services.

Core values
Empowering People - to do their best Being Flexible - to adapt to the changing environment and evolving customer needs Making it Happen - by striving to change the status quo, innovate & energize new ideas with a strong passion & entrepreneurial spirit,

Openness and transparency - with an innate desire to do good

Creating Positive Impact with a desire to create a meaningful difference in society.

Integrated Telecom Company

Mobile / Wireless Services 2G / 3G Rural Market Enterprise Services Carrier Corporate

Telemedia Services Fixed Line Broadband DTH

Passive Infrastructure Bharti Infratel Indus Tower

'Power to keep in Touch (1995)

'Touch tomorrow (1999)

'Live Every Moment' (2002)

'Express yourself (2003)

Dil jo chahe pass laye

Old New

PEST ANALYSIS- EXTERNAL ANALYSIS

Political
Regulations Political Opposition to participation by the private players Govt support to promote FDI in Telecom sector Banning of Phone Use in Certain Circumstances

Technology
Equipped with New Technology Rapid Industrial growth rate induced by emerging technologies. Strong Fibre Optic Network Utiilization of E- Commerce facilities Efficient Customer Care Services

Economic
Cost of calls Being Driven Down Worldwide Recession- Both Boon & Bane Middle class consumer base growing due to accelerated economic growth Untapped markets in emerging Economies New Opportunity

Socio-Cultural
High End Phones becoming status symbol Due to Intimate family bonding in Indian Culture, there is need to remain connected Tech Savvy Generation

SUBSCRIBERS ANALYSIS
Total wireless subscribers (in million)
Subscribers (in million)
900 800 700 600 500 400 300 200 100 0
CDMA GSM TOTAL

2005 11.15 41.07 52.22

2006 20.95 68.19 89.14

2007 44.61 120.47 165.08

2008 68.37 192.7 261.07

2009 94.5 291.26 385.76

2010 105.67 478.68 584.35

01/Jan/11 206.94 564.24 771.18

SUBSCRIBERS ANALYSIS
Bharti Airtel GSM Subscribers (in millions)
Subscribers (in million)

600 500 400 300 200 100 0

TOTAL
AIRTEL 2007-08 192.7 2008-09 291.26 2009-10 478.68 Dec-10 526.65 Jan-11 564.24

61.98

93.92

127.62

152.49

155.79

Contd..
Bharti Airtel Rural Wireless Subcribers (in millions)
140
120
Subscribers (in millions)

100
80 60 40 20 0

Mar/09 93.92 29.53

Mar/10 127.62 48.09

TOTAL Rural

Contd..
Overall Bharti Airtel Subscriber Base
4% 7 Million

21% 43 Million

India

Africa
Srilanka &Bangladesh
75% 150 million

10

SWOT ANALYSIS
Strengths:
Excellent Marketing.

Good Plans and Services

Wide customer base. Successful introduction of 3G.

Tie ups with foreign companies to improve operations & to

go global. Good brand equity.

Good distribution network.

11

Contd..
Weakness:
Improper customer service. Customer complaint rates are high according to TRAI. Improper implementation of Re-branding strategy.
Customer Complaints
2000 1800 1600 1400

1200
1000 800 600 400 200 0

2008-09 773

2009-10 1736

Dec-10 1062
12

Customer Complaints

Contd..
Opportunities:
Bharti Infratel Cutting Down cost in Rural area Match Box Strategy Scale of Penetration Current Tele-Density 30.6 is still low among developing countries Low Broadband Penetration, Rural Telephoney

13

Contd..
Threat:
Introduction of Mobile number portability (MNP). Price competition from Vodafone and Idea. India centric Major revenues from India
Bharti Airtel

14%

Subscriber In

50% 36%

Subscriber Out

Net Addition

14

BCG MATRIX
Stars
Mobile Services

?
DTH & IPTV Broad Band 3 G Services

Cows

Dogs
Fixed Line Services

LOW

HIGH

LOW

ANSOFF MATRIX

16

Strategic Group Analysis

Airtel 25%

Broad

Reliance 18%

PRODUCT RANGE

BSNL, MTNL 15.00 %

Vodafone 17%

10 %
Other 5%

IDEA 9.6%

TATA 9.3%

Narrow

VIRGIN -0.5%

NATIONAL

GLOBAL

GEOGRAPHICAL SCOPE

GE MATRIX
Business Strength
Strong High Medium Weak
5.00

Market Attractiveness

3.67

Medium

2.33

Low
5.00

3.67

2.33

1.00

18

Factors Underlying Market GE MATRIX Attractiveness

Factors Weight Rating (1 5)
3.5 4 4 4 4 4.5

Value = (Weight * Rating)

0.7 0.6 0.8 0.6 0.4 0.9

Resource availability Overall market size Annual Market growth rate Profitability Competitive intensity Technological requirements
Total

0.20 0.15 0.20 0.15 0.10 0.20

1.0
GROUP 7

4.0
19

Factors Underlying Market/Biz GE MATRIX Strength

Factors Market share New product development Brand Image Sales force Pricing Distribution capacity Product quality R&D Performance
Total

Weight
0.15 0.10 0.10 0.15 0.15 0.10 0.10 0.15 1.0

Rating (1 5)
5 3.5 4 3 3 4.5 4.5 3

Value = (Weight * Rating)

0.75 0.35 0.40 0.45 0.45 0.45 0.45 0.45 3.75
20

Airtels GE Matrix GE MATRIX

High High

Business Strengths
Airtel Enterprise

Low 5.00

Attractive
Mobile

Market Attractiveness

3.67 TeleMedia

Moderate Attractive
2.33

Unattractive
3.67 2.33 1.00
21

Low 5.00

REBRANDING ANALYSIS

Reasons of Re-Branding:
To go Global. Strong consumer base over 200 million worldwide. Operating in 19 countries

22

REBRANDING ANALYSIS

23

MARKET SHARE ANALYSIS

Bharti Airtel GSM Market Share (in %)
29.5
Market Share (in %)

29 28.5 28 27.5

27
26.5
2009-10 Jan-11

Market Share

29.29

27.61

24

Contd
Bharti Airtel Market Share in Rural Wireless (in %)
27

Market Share (in %)

26.5 26 25.5 25 24.5

2009 March 26.46

2010 March 25.19

Market Share

25

26

Sincerity Honest Cheerful Excitement Spirited Imaginative Competence Intelligent Successful Sophistication Upper-class Charming

27

Brand Satisfaction
Brand Satisfaction is established only by the experiences that customers have, across each of the brands touch-points, over the course of time. A minority in the Excellent category and a one-third majority in the Not

Satisfactory category lead us to conclude that more of Airtels customer

base is disgruntled with it than delighted.

Excellent

Good

Satisfactory 7%

Not Satisfactory

36%

27%

30%

28

Brand Personality
It is a comprehensive concept, which includes all the tangible and intangible traits of a brand, say beliefs, values, prejudices, features, interests, and heritage. A brand personality makes it unique.

Brand personality is seen as a valuable factor in increasing brand

engagement and brand attachment, in much the same way as people relate and bind to other people.

Strong Network

27%

40%

Customer Service

23%

10%

Innovative Schemes
Value Added Services
29

JAIDEEP

30

A static brand can quickly become irrelevant. But brand innovation also has its risks. Brand innovation can take place internally through research & development or it could occur externally by understanding the opportunities that are being created due to increased competition and an informed consumer. A brand has to continually scout for opportunities to better itself and its perception among the consumers of its product.

Brand opportunity can be gauged by understanding consumer behavior. One needs to understand what is pulling a consumer away from your brand and what feature about your brand is underperforming to have the same effect pulling the consumer away from your brand.

10%

23%

40%

Value for Money Coverage and Quality Switching costs

7% 20%

Schemes and Benefits

Others

The reasons why people are with their current telecom service providers

Coverage & Voice Clarity Pricing

Others 7%

Customer Service Quality Schemes

13%

10%

17% 53%

Shows which features of Airtel brand promise are underperforming to create a negative perception of the brand.

Brand Loyalty
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such

as word of mouth advocacy.

With a majority 63% of respondents saying they will not recommend Airtel to anyone else, it is a very worrying statistic

Yes

No 37%

63%

35

CONCLUSION
Factors in favour:
Bharti Airtel has maintained its market share in telecom industry both in the rural as well as in urban and semi-urban

areas and still they are No.1 in the telecom industry.

Bharti Airtel has successfully introduced 3G through its wide distribution network, and they are trying to retain back their

customers through its products at the attractive prices.

36

Contd..
Factors in against:
Bharti Airtels rebranding strategy was not as effective as it has to be, as customers are not getting familiar with the logo. Maximum customer complaints has resulted loss of 3.2lakh customers after introduction of MNP (Mobile Number Portability).

37

AirtelDil jo chahe pass laye

38