Agenda

 We will discuss-

 Market Leader Strategies
 Market Challenger Strategies
 Market Follower Strategies
 Market Niche Strategies
Market Leader Strategy
 A market leader should generally adopt a
defense strategy
 Six commonly used defense strategies
◦ Position Defense
◦ Mobile Defense
◦ Flanking Defense
◦ Contraction Defense
◦ Pre-emptive Defense
◦ Counter-Offensive Defense
◦
 Airtel’s Insight
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
Ø
ØBharti Airtellimited is a leading global
 Contd…
 The company offers mobile voice & data
services, fixed line, high speed broadband,
IPTV, DTH and national & international long
distance services to carriers.

 It operates a GSM network in all countries.

 Airtel is the fifth largest telecom operator in the
world with over 200 million subscribers as of
October 2010. It is the largest cellular service
provider in India, with over 143 million
subscribers as of September 30, 2010. It has
a 29.00% market share of the GSM mobile
service in India.
 http://en.wikipedia.org/wiki/Bharti_Airtel
 Position defense

 This involves the defense of a fortified position.
Ø
 This tends to be a weak defense because you become
a “ sitting duck“ .

 It can lead to a siege situation in which time is on the
side of the attacker, that is, as time goes by the
defender gets weaker, while the attacker gets
stronger.

 EXAMPLE POSITION

DEFENSIVE STRATEGY

 Airtel Enjoying tariff plans as they wish before
Tata Docomo came with per paisa billing (06th
August, 2009 )now Airtel also adopted the
same plan.

 Initially they use to charge high message charges
according to different plans but when message
packs started they also came with that.
 Contd…


 Tata Docomo was the first operator to instigate

ISD price war by a whopping reduction of 83 per
cent, bringing ISD call equal to Local calls

 Reverse CRBT - Idea Cellular was the first
company
 to launch (30th March 2010) the reverse ring
back tone service, by the name PreTones. Tata
Docomo launched the service next, and called it
My Song.
 Bharti Airtel was the third operator to roll out this
VAS for its customers.

 Mobile defense 

 This involves constantly shifting resources and
developing new strategies and tactics.


 A mobile defense is intended to create a moving
target that is hard to successfully attack, while
simultaneously, equipping the defender with a
flexible response mechanism should an attack
occur.
 EXAMPLE MOBILE
 DEFENSIVE STRATEGY

 Radio streaming to mobiles - Bharti Airtel
partnered with private FM station Radio Mirchi to
launch Mirchi Mobile (April 26, 2010) initially in
Delhi & Mumbai.

 DTH recording via mobile - Airtel Digital TV, the
DTH service from Bharti Airtel, is the first to
launch a set top box which enables TV recording
through a mobile phone, remotely (April 7,
2010)

  Contd…

 Mobile Applications SNAPTU- Connect with
your friends on facebook, twitter and IM, no
matter where you are.



 Bharti Cellular EDGE service-The company was

the first to conduct field trials in November with
its equipment supplier Ericsson.




 Contd…
Airtel has diversified into-


a) Airtel Broadband


b) Airtel Digital TV



 Flanking Defense


 This involves the re-deployment of your

resources to deter a flanking attack.


 You protect against potential loss of market

share in a segment, by strengthening your
competitive position in this segment with new
products and other tactics.
 EXAMPLE of FLANKING
DEFENSIVE STRATEGY

 Untapped Rural market- Although Airtel have strong
Presence throughout the country but still they are far
away from the Indian rural part and generally this
part is covered by BSNL so indirectly Airtel is loosing
revenue from the rural sector. Now Airtel is moving
into rural areas as well.

 0.facebook.com - Facebook had deals with Videocon
and Reliance in the Indian market.
 The service is totally free except for access to
photos and video content on the network which is
charged.
 They have recently added Airtel to the group.

 Contraction Defense


 Withdraw from the most vulnerable segments and

redirect resources to those that are more
defendable


 By planned contraction or strategic withdrawal


 EXAMPLE CONTRACTION
 DEFENSIVE STRTEGY
 Airtel was also involved in establishment of own
tower business but later it shifted its business to
the “Indus Towers”.
 Indus Towers Limited was incorporated in November 2007
 Indus Towers = Vodafone (42%) + Bharti Airtel (42%) + IDEA (16%)
Source: http://www.industowers.com/about-us/shareholders


 Airtel on 10 June 2009 signed a three-year pact

with group company Comviva Technologies Ltd.
for managed services (value-added services)
Source: www.comviva.com/media/Comviva_Airtel_deal_wsj.pdf

  Contd…

 In 2004, Bharti Airtel had struck a 10-year deal
worth $750 million with IBM to outsource its
Indian IT operations.
Source:
http://www.business-standard.com/india/news/airtel-inks-dealibm-for-africa-operatio






 Pre-emptive Defense
 Detect potential attacks and attack the enemies
first
 Let it be known how it will retaliate
 Product or brand proliferation is a form of pre-
emptive defense

 EXAMPLE PRE-EMPTIVE
 DEFENSIVE STRTEGY
 In Aug 2008 Vodafone was planning to declare the
Apple iPhone 3G launch date but Airtel has
officially declared the launch date of the device
as 22nd August 2008.


Source:


http://www.techdrunk.com/vodafone-loses-advantage-preemptive-launch-airtel-offici
 Counter-Offensive Defense


 Responding to competitors’ head-on attack by

identifying the attacker’s weakness and then
launch a counter attack

 EXAMPLE COUNTER-
OFFENSIVE DEFENSIVE
STRTEGY



 On December 23, 2005 Airtel was the first to announce
the lifetime validity for incoming calls scheme. The
move is seen as a response to the Tata Teleservices's
'Non-Stop Mobile' scheme launched in October, 2005,
which allows a customer to receive calls for two years
 Source: http://www.rediff.com/money/2005/dec/24airtel.htm
http://www.rediff.com/money/2006/jan/16spec.htm

http://www.tata.com/company/releases/inside.aspx?artid=fucIdW8oYEA=

http


://www.cdmaindia.com/forums/indicom_prepaid/tata_indicom_launches_39non_stop_mobile_life3
Market Challenger
 Vodafone in Indian market


 Market share of Vodafone is : 118,038,168

(as on 31st oct’10)

 Presence in 23 telecom circles in 2G and 9
circles in 3G

Market Challenger
Strategies
Types of Attack Strategies


 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla attack

Frontal attack
 You clearly indicate that you’re taking the
leader head-on in a high-risk but
potentially high-payoff strategy. Here’s you
match your opponent in all respects :
product, advertising (spend & reach),
pricing and distribution
Vodafone’s Frontal Attack
 Where ever you go our network follows.
 Network challenging campaign


 Blackberry pearl flip launch by airtel 2008

and vodafone’s blackberry storm launch in
2009



Flank attack
 Identify a shift in market segments that
cause gaps to form, act swiftly to fill those
gaps and develop them into strong
segments that are loyal to you
Vodafone’s Flank Attacks
 Credit recharge 10 rs
 CRBT access and job portal service
 Blackberry launched as prepaid
 World calling card offers
 Night calling pack 11PM-6AM

Encirclement attacks
If you’re a big firm with lots of resources,
you attack the leader on multiple fronts.
 The objective is clear. Grab as much share as
possible through a simultaneous attack on a
couple of fronts.
Vodafone’s Encirclement
attacks
 In 2005 as Hutch


 Chotta Recharge
 Night minute calling plans
 2000 SMS free per month

Vodafone’s Encirclment
attacks
Vodafone’s Encirclment
attacks
 In 2009 as Vodafone

 Vodafone launches 29 new services with
their new avatar zoozoo


 Vodafone Torch magic box,2 year

replacement warranty with Lifelong validity
just in 1199/-
 Bypass Attack
 Bypass attack is the attack on the areas
which is not defended or negelected by the
leader or the other competitors.There are
three ways of doing bypass attack
 1.Devlop new product
 2.Diversify into unrelated product
 3.expand in new geograpicalarea with same
product
 Examples of Bypass attack

 Vodafone announced launch of its solar

phone VF247 first solar mobile phone in
india

 Introduction of vodafone chota recharge

card of Rs10

 Tata docomo launch with per second billling
plan
 Guerrilla Attack
 Guerrila warfare consists of waging
small,intermittent attacks to harass and
demoralize the opponent and eventually
secure permanent footholds.The guerrilla
challenger uses both conventional and
unconventional means of attack . These
include selective price cuts and intense
promotional blitzes.Guerrilla warfare is more a
preparation for war than a war
itself.Ultimately,it must be backed by a
stronger attack if the challenger hopes to beat
the opponent.

 Examples of Guerrilla
Attack
 Vodafone tie up with the shopper’s stop for the
manufacture of zoozoo faced shirt,mugs,bathroom
accessories.

 Launch of vodafone magic box at RS 1199 to attract
the low end customers

 launch of vodafone most economic RS 4 bonus card
offer for its prepaid customer by which they can
choose one benefits from the benefits like calls to
local vodafone @of 10p, 400 local and national sms,8
local and std min and 40 night talk min to local
vodafone between 11pm to 7 am.


 Market Follower Strategy
The follower strategies are:


 1. Counterfeiter

 2. Cloner

 3. Imitator

 4. Adaptor





 Counterfeiter

 The counterfeiter duplicates the leader’s
product and package and sells it on the
black market or through disreputable
dealers


 A chunk of fake handsets come from China

Fake products Sold in Name of
Nokia
Cloner
 The cloner emulates the leader’s products,
name, and packaging, with slight variation.

 Aircel when started its operation was
supposed to be following Airtel which was
the market leader and Aircel’s logo and
colour was some what similar as compare
to Airtel.

Imitator
 The imitator copies some things from the leader but
maintains differentiation in terms of packaging,
advertising, pricing, or location

 Airtel RC 98 Vs Uninor MyConnect 90

 Night calling and Friends plan

 Group calling

 Super 5

 Mobile App Store
Adapter
 The adapter takes the leader’s products and
adapts or improves them

 Uninor adapted to Indian market by slashing
the tariff and coming up with innovative
plans.




MARKET NICHER
STRATEGIES
Richard Branson – ‘There is no point in Virgin doing anything, unless we
can make a difference.’

The branding and marketing style of Virgin comes with a difference.

Why This Segment???

 Target customers aged between 15 and 30 years.

 Estimated population in India of people between

15 and 30 years - 600 million.
 Distinct mobile phone usage habits by the young

users present a huge advantage:
◦ Early adopters.
◦ They make more and longer out-bound voice

calls.
◦ Significant users of SMS, potentially large

customers for other value added services.
◦ Shorter handset upgradation cycle - under

12 months
Virgin Launches First
 Get paid to receive calls (10ps/min)
 50 paisa to any local network
 One Touch access to V-Bytes
 Unlimited access to V-Bytes for a simple daily
charge
 Easy Handset upgrades
 Personalised Care

Advertisements

 Virgin aired commercials where youngsters find

ways to win approval in sticky situations. While
Indian youngsters had a carefree spirit, there
is a lurking desire for legitimacy in whatever
they do. TV Commercials: Popular ads, use
lambent wit.
 Emphasis on the idea - Find a way around,
rather than a way against.
TV Ads
Internet Ads
Sales Promotion
 Free Virgin Mobile Minutes.


 Virgin Mobile allows customers to earn free

airtime by participation in online
advertisements and media. For example, you
could watch a short commercial and earn a
minute of airtime.



Sales Promotion

 Virgin invites students to be brand ambassadors and

request them to sell Virgin merchandise such as T-shirts.
In return, it invites groups of students for counselling
sessions.
 44 per cent of total Internet population in India lies within
the age group of 19-24 years. Youth customers spend
significant chunk of their time online.
 Customers rewarded with additional talk time, extra
messages and other freebies.
 E.g.: Bak Bak offer provides online customers Rs. 100 worth
of free talk time, 500 free SMSs, lifetime validity and a
free prepaid connection on purchase of every handset.


 Aircel is a joint venture between Maxis
Communications of Malaysia and Apollo Hospital
Enterprise Ltd of India.
 UTSB has a 74% stake in Aircel and the remaining
26% is with Apollo Hospitals.
 It is India’s fifth largest GSM mobile service
provider with a subscriber base of over 46.51
million, as of September 30, 2010.
 It has a market share of 9.65% among the GSM
operators in the country

 Aircel Pocket App Stores

 FLYPP an application developed by Infosys is been

introduced into Aircel technology environment.


 It is the first cellular service provider offering apps

stores.


 This application store would be the fourth to launch in

the country – Nokia launched its Ovi Store in May
last year and Blackberry brought its app store to
India in November. Before them, Apple’s App Store
for iPhone users was already in existence.

AIRCEL - BLYK
 Aircel- Blyk is also hip and happening youth
mobile service brings exciting MMS and
SMS on events and entertainment updates,
exclusive offers, interactive trivia and
opinion polls from the brands you like. Even
better by simple receiving these messages
you’ll get bonuses like talk time, data or SMS
with every Blyk recharge.

 

 THANK YOU