Marketing strategy of Airtel Airtel marketing strategy

By Hitesh Bhasin July 8, 2016

Airtel is the worlds 3rd largest mobile telecommunication Indian MNC

operating in 20 countries across Asia & Africa. Airtel has presence in
22 telecom circles across India & is Indias largest integrated
telecom service provider.
Segmentation, targeting, positioning in the Marketing strategy of
Airtel
Airtel uses mix of segmentation strategies to segment its offerings
like basic Call /SMS plans, prepaid / Post-paid plans, VAS Data,
caller tunes etc. Apart from geographically segmenting the market
in East, West, North, South & central, the market is also segmented
in each region on the basis of demographic variables like age,
Income, Social groups.
Different geographic regions are handled independently and
different campaigns are run according to the preferences of people
in each region. Airtel has targeted the generation Z of 15-25 ages,
generation X & baby Boomers by using different campaigns over the
period of time i.e. campaign like Har Ek friend Jaruri hota hai/ Jo
tera hai wo mera hai to target Gen Z and recently launched
campaign of one touch internet targeting Gen X & baby boomers.
Airtel has been successful in top-of-the-mind recall amongst cellular
phone users and is enjoying a leadership position in most markets.
After changing its logo it has repositioned itself as Young, Energetic
& International brand. It has evolved itself as a torch bearer of the
telecom industry in India.
Mission Hunger to win customers for life.
Vision- Our vision is to enrich the lives of our customers. Our
obsession is to win customers for life through an exceptional
experience.

Tagline The smartphone Network.

Competitive advantage in the Marketing strategy of Airtel With the
formation of Indus tower & partnering with Idea & Vodafone for
Indian Operations, Airtel has extended its infrastructure in the
extreme parts of the country for nationwide penetration, creating
competitive edge over other players in terms of low operational
cost, better network connectivity, coverage, low call drops & better
customer service.
Airtel developed a sustainable advantage through its excellent
network of telecom towers. In many locations, newer entrants found
it cheaper to rent Airtels existing infrastructure rather than setup
new towers.Also spending extensively on advertising & promotions
helped it to become a market leader. Word of mouth is one of the
strongest forms of promotions & Airtel has completely leveraged
that. Airtel is always known for its innovation and some of its
products were thelifetime prepaid, Airtel live, Hello tunes, My Plans,
M-check are pioneer strategies & the list is never ending.
BCG Matrix in the Marketing strategy of Airtel- Airtel have 4 SBUs
(Strategic business unit) which occupies different places in BCG
matrix namely
Mobile services are stars, as it is operating in 22-telecom circles of
India and is the largest mobile service provider in the country, based
on the number of customers & (22.7 %) market share.
Tele-media services fixed-line services are dogs since there is a
phenomenal decrease in the services in the industry as a whole.
High-speed broadband which is question mark since it has best in
class network with 126,357Rkm of fibre laid down but still they have
presence in only 87 metros & tier-1 city further investment can
increase their market share & will help it to move to stars.
Airtel business to large enterprise is question mark, although it
provides a broad portfolio of services to large Enterprise,
Government, Small & Medium businesses and carrier customersbut

the services offered by Airtel are expensive as compared to other

players.
Digital TV services are stars, Airtel have 18% market share in the
DTH services second to only Dish TV & have head on competition
with TATA sky.
Distribution strategy in the Marketing strategy of Airtel It has wide
spread simple and effective channel structure. Company uses 2-Tier
& 3-tier distribution network system.
Under 2-tier distribution network, company appoints UD (urban
distributors) & RS (Rural Suplliers). UD distribute the items to
retailers according to the demand & transfer easy balance to retailer
through FOS (Field officer Sales) SIM who work under UDs.
Under 3-tier distribution RS (rural supers) distributes the items to RD
(Rural Distributors) & transfer easy balance into RDs SIM, who then
distribute it to Retailers.
Apart from all these company also uses Airtel Relationship centres
under franchised model & company officials for corporate sales.
Brand equity in the Marketing strategy of Airtel High TOMA (Top of
mind awareness), ARPU (average revenue per user), and extensive
distribution system & as high as 300+ million subscribers has
helped Airtel in crafting market leader position for itself over the
years. Also Airtel has shifted from a technological brand to a
communication brand through its continuous evolving branding &
marketing efforts. It has rechristened its logo to make it more of
international, young & Energetic brand.
Competitive analysis in the Marketing strategy of Airtel Being the
torchbearer of the telecom industry in India it has reshaped the
telecom industry over the years. From tele-density of just 18.3 % in
FY07 to 75.2 FY14 (DOT data), industry has seen a high growth
momentum. Reliance which initially targeted the B & C customer
segments, lost its market share to new & existing players like Idea,
Vodafone, Tata-Docomo, and BSNL etc. due to Network & customer

service issue. In wireless data services players like MTS, TATA

Indicom have high market share in the selected circles whereas
Airtel is still figuring out to establish itself due to High data charges.
Market analysis in the Marketing strategy of Airtel In the highly
competitive telecom market where each company is trying hard to
retain their customers & increase ARPU (Average return per user),
Airtel is facing stiff competition from small & local players like
Uninor, Aircelwho are present in few circles. Also players like
Vodafone who are fighting head on to emerge as a market leader
possess a serious threat to the company.
Connectivity, data services & VAS(Value added services) will be the
driving force of the telecom industry.
Customer analysis in the Marketing strategy of Airtel Customers
group consist of all 3 segments A, B & C with their distinctive needs
but majorly it is targeting B segment which is Middle class with
aspirational needs & is the fastest growing segment. To cater the
corporates clients & A-class they have dedicated workforce. Airtel
deals in both B2C & B2B customers.

Marketing mix of Airtel

By Hitesh Bhasin July 7, 2016

Bharti Airtel Limited (Bharti Airtel) is one of Indias most popular
providers of integrated telecommunication services and is based in
India and headquartered in New Delhi. Basically, the company is
tasked with the work of operating telecommunication services in the
larger Indian subcontinent. The companys business services include
mobile services, enterprise services and Telemedia services. The
mobile services comprise of fixed wireless services and mobile

services which use GSM network technology across major

telecommunication circles in the country.

With a Pan-India presence, Airtel an established player in providing

3G services is now planning aggressively to roll out its 4G services in
a phased manner. These services are now available in metros and
big cities like Bangalore and Mumbai. The company also provides
world class landline telephone and broadband services and the
enterprise unit across 95 cities in India. Some of Bharti Airtel
competitors include the following:
Idea
Tata Docomo.
Reliance Communications Limited
Bharat Sanchar Nigam Ltd.
Vodafone (strongest competitor)
Products in the marketing mix of Airtel
The company provides a wide array of products and services. In
order to retain the maximum number of customers, Airtel has tried
to provide as many products and services as possible in order to
keep the customers. The following is a list of its products:
Airtel Pre-paid services
Blackberry Wireless Handheld
Airtel Post-paid services
Value added services like instant balance inquiry, caller line
identification, 24 hour recharge facility, multimedia messaging
service, call wait & call Hold, Caller divert, Airtel Live portal
SMS based information services

Voice mail services

Hello tunes, Ring tones,
Ringtones and hello tunes offers
Easy post-pay bill payment solutions
Enterprise Solutions
Place in the marketing mix of Airtel
Airtels penetration in India is quite impressive because the services
and networks can be found even in Indias remotest regions.
Currently, gross subscriber base has pass the 200 million mark while
the total wireless subscriber base for CDMA, GSM and WLL is about
162 million. Clearly, the customer base of Airtel is strong in India. It
is also worth mentioning that millions of the networks lines are
added per year.
Airtel enjoys a well distributed network of distributors including even
businesses like groceries and chemist outlets. One of the things that
have made Bharti Airtel a force to reckon in telecommunication
industry in India and Africa is that it has the strategy of making the
first moves and emerging as a winner. It has managed to buy
Kuwaits Zain and Tata steel in the past, making it a top 5 wireless
carrier in the world by subscription.
Wider distribution network as compared to competitors
Network is widespread bringing many customers daily to Airtel
Fourth largest mobile operator in the world with presence in 20
countries
Promotion in the Marketing mix of Airtel
Airtel engages in aggressive marketing strategy ranging from
traditional print media to social network marketing. However, the
companys recent rebranding efforts bombed in the market and
were not received positively. The company also engages in large

scale TV and print advertising. The company frequently uses big

celebrities who endorse the services. The company also managed to
create its signature tune from Oscar winning musician A.R.Rahman
which has become one of the most downloaded tunes in India.
It is also interesting to note that even such seemingly redundant
activities like providing wallpapers and screensavers to computer
users has proved a very effective marketing strategy. The company
also offers special discounts and offers to its subscribers.
Apart from that Airtel has been hiring several figures from Bollywood
right from the legendary Amitabh Bachhan to Vidya Balan as
their brand ambassadors. The God of cricket, Sachin Tendulkar too
has been a part of their advertisement campaigns too. The
advantage of Airtel is that I goes regional with its advertisement
efforts.
Some salient points about the promotions of Airtel are
Uses ATL and BTL activities
Makes an effort to go regional
Recent rebranding effort has failed in the market
Has good word of mouth and a good brand image second only to
Vodafone.
Price in the marketing mix of Airtel
The company uses competitive pricing strategy just like any other
network providers because of the competition which is present in
this sector. However, Airtel also provides flexible pricing mechanism
depending on the prevailing market conditions. For instance, when
the company relaxes taxation, it also reduces its prices across all
affected products. The make my plan introduced by Airtel was a
smart strategy as customers could now modify their plan as they
see fit.

Airtel SWOT analysis SWOT analysis of Airtel

By Hitesh Bhasin April 12, 2015

One of the top telecommunication companies in India, Airtel has

spread across far and wide in the last 2 decades of its existence. The
company is known for its availability and its smart range of value
added services. Here we present you the SWOT analysis of Airtel to
understand the strengths, weaknesses, opportunities and threats for
the company.
Strengths in the SWOT analysis of Airtel

Renowned Telecom company: With its 19+ years of rich experience in

telecom industry this MNC had travelled far to become worlds
3rd largest telecom operator overseas with operations in nearly 20
countries.
High Brand Equity: It is one of the pioneer brands in
telecommunication having a high brand recall and with a whopping
subscriber base.
Extensive infrastructure: With the formation of Indus tower & due to its
partnership with Idea & Vodafone, the infrastructure of Airtel has
extended in all parts of the country resulting into nationwide
penetration.
Strategic Alliances: The company has top notch stakeholders, namely
Sony Ericsson, Nokia and singtel, and the recent one being Apple.
Such strategic alliances boost the brand equity and the bottom line
of the company.
Torchbearer of the telecom Industry: With its number 1 spot due to its
excellent services in developing economies, Airtel has
interconnected the life of people in an highly efficient way. Thus,
where Vodafone is an external entrant, Airtel is a leading nationwide
player in India and the torchbearer of the telecom industry in India.

Weaknesses in the SWOT analysis of Airtel

Outsourced Operations: Outsourcing operations helped Airtel in

lowering its cost. But on the other hand, they are running the risk of
being dependent on some other companies which may affect its
operations.
Venturing into African operations: Although its been 4 years that Airtel
has acquired Zains Africa business, but Airtel is still struggling to
turn around the unit which was bought at a whoppy 9 billion dollars.
High Debt: With its acquisitions turning out to bad investment, and
credit being high and margins being low, Airtel group is under high
debt. Airtel does not have as deep pockets as Vodafone.
Opportunities in the SWOT analysis of Airtel

Strategic Partnership: Partnering with smart phone companies is going

to be a smart strategy as far as MNP (mobile number portability in
India) is concerned. This will ensure fixed cash flows in the future
and a higher customer base.
Market Development: With fierce competition in the telecom industry &
shrinking margins, venturing out in new markets/developing
economies will prove fruitful for the company.
VAS: VAS (Value Added services) is going to future of the
telecommunication industry & by specializing itself in this vertical
Airtel can differentiate itself in highly competitive market. With
introduction of unique services, Airtel can avail higher margins.
Untapped geography of the current market: Although it is currently
providing 3G & 4G services, but these services are limited to specific
geographical locations. Expansion of these services to most of its
regions will help the company get more margins and customers.
LTE: The whole wireless world is moving towards LTE (long term
evolution or 4G). LTE for mobile broadband can be a good solution
for India where fixed broadband penetration is otherwise low. Airtel
has taken the lead with this version of LTE in 4 cities, but

deployment needs to catch up pace. Despite a weak LTE ecosystem

in India, Airtel should portray itself as the embracer of that
technology. The company lacks nationwide 3G license with spectrum
in 13 out of 22 telecom service areas. Airtels LTE network for mobile
broadband is still confined to only 4 cities in India.
Threats in the SWOT analysis of Airtel

Government Regulatory Framework: With the auction of spectrum &

change in the government policies on a regular basis, it is a
potential threat to the stability & existence of this industry thereby
affecting the players.
Competition: Price war in the home market and declining margins due
to this is adversely affecting the overall business of the group.
MNP (Mobile number portability): MNP gives the customer
independence to change the service provider while retaining the
number and as Airtel charges are premium over other service
providers, it can see slump in subscriber base in the next fiscal year
with PAN India MNP applicable from May 3rd 2015.

Chapter 5

Generic Strategies of AIRTEL

Indian Telecom Industry - Airtel is one of the fastest growing markets in the world in
terms of subscribed additions - 19.35 mlln in 3 mnths. Further it is expected to reach
upto total subscribe about 500 mlln by 2010, the annual growth rate of the telecom
customer are - 47 % (2007-08) ,it is the fastest Growing Sector - 22 percent (200207),2nd Largest Market, it charges Lowest tariff of the world.
Wireless customer - 315.3 Mn

Wireline customer - 38.4 Mn

Tele -density - 30.6
Bharti- Airtel -it is the largest player with a current presence of 23 Circles
PORTER'S GENERIC COMPETITIVE STRATEGIES
Cost Leadership Strategy - Airtel gains this generic strategy in an industry when its
cost of operation is lower than its competitors. It has gain leadership by managing its
processes and resources efficiently and effectively. By bringing cutting down its
operational costs, It has offer its products and services to its customers at lowest
prices. It has also earn high profits either through the profit margins are greater or
the number of sales has been increased.
Differentiation Strategy- Airtel implemented this strategy mainly in order to possess
sufficient skills and abilities to create uniqueness in the product as compare to that
of its competitors based on few attributes which allows the customer to obtain or to
accept the product as different from that of its competitors. Firms adopting the
differentiation strategy has successfully are able to access to the advanced and
modern scientific research, and a high labour force, effectively by or through
customer communication strategy, etc.
The telecome company Airtel is offering free EPABX with free leased lines which
means ,no connectivity charges .So the Airtel is providing the latest EPABX to its
customers which is costing to them approxly Rs 50,000. Further company is
providing the services like- Best customer care service provider, well managed call
centers service especially in local or native and different languages,most important it
is providing good services even in the remote areas, its emphasis based on "barriers
breaks when people speaks", and later new initiatives like engine search on Airtel
live and downloads etc
Focus Strategy- A firm which is pursuing this strategy tends to serve a particular
segment instead of serving it to the entire market. This type of segment may be for
the special group of customers, specific geographic area or a particular product or a
service line. The customers will also be loyal to the company and therefore the entry

of a new competitor into that area becomes quiet difficult. Airtel is mainly focusing on
the customers who is having more than Rs10000 monthly landline billing.
The Company's strategy for Telecom business is to mainly focuses on the cities with
high revenue potential. The services offering in this segment includes supply and
implementing of fixed-line telephones providing local, national and international long
distance connectivity and broadband Internets access with the help of DSL. (report
on airtel and its strategies n.d.)

CONCLUSION
The generic strategies proposed by Michael Porter as those are contextualized in
the Competitive Strategy are not useful to describe a company's strategy due to new
challenges that this process brought to the economy, the markets and the
companies, such as the importance of the internal management in a company far
from economies of scale in the production area, which is not included in the Porter's
scheme as a key to a sustainable strategy.
Companies have designed more complex abilities to lead markets as local
resources allow local performance. Networks are designed to potentiate individual
competencies, to support customers worldwide.
The advance made on the analysis of Michael Porter's generic strategies in the
current business environment are a critic new point of view that consider this ideas
not valid in the short term in globalization.

Ansoff matrix