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STAKEHOLDER MARKETING

INTERNATIONAL MARKETING ASSIGNMENNT JUNE 2010

Task one: 5 pages (pg6 to pg10)

Task two: 4100 words excluding appendices & references (pg12 to pg33)

Reference & Appendix: 5 pages including confirmation statement

(Pg34 to pg38)

Student no: 13497311

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2. The index

1. The index 2
2. The
#
introduction
2.1. Aim of assignment.......................................................................................................... 3
2.2. Assignment structure...................................................................................................... 3

3. What is international marketing? ........................................................................................... 4

TASK ONE
4. Justification of choice
4.1. Country identification..................................................................................................... 6
4.2. Product identification....................................................................................................
. 6
4.3. Maldives broadband market......................................................................................... 7
5. Internal & external stakeholders and their impact on international marketing decisions...... 7
6. Current extended marketing mix............................................................................................ 10

TASK TWO
7. Summary of audit findings
7.1. Stakeholders audit........................................................................................................ 12
7.2. Suitability of marketing mix........................................................................................ 15

8. Justify the product and international market entry................................................................. 18

9. What is the relationship marketing? What are the benefits of relationship marketing? ..... 20
9.1. Challenges of international stakeholder communication............................................. 20
10. Communication approach to dealing with different type of stakeholders........................... 21
11. What is standardization? And what is adaptation? ............................................................. 22
12. What is competitive advantage? ........................................................................................ 22
13. Extended marketing mix of major competitors.................................................................. 23
14. Extended marketing mix to beat competitive advantage................................................... 29
15. Recommend of appropriate budget..................................................................................... 31
16. Recommend for measure of the marketing mix.................................................................. 32
17. References ........... 34
18. Appendix
18.1. Company background ............. 35
18.2. about airtel broadband ............. 36
18.3. Target consumers of broadband packages .............. 36
18.4. Stakeholders of airtel in international market and their involvement
areas .............. 37
18.5. Confirmation statement .............. 38
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2. The introduction

#2.1. The aim of the assignment

The aim of assignment is to present proposal to the marketing manager to take one of our
products to international market. My suggestion is to take wireless broadband to Maldives.
The set of recommendation are listed below.
#
2.2. The Assignment structure.

# In order to structure the assignment in an applicable frame work the term international
marketing will be defined to get a first in sight.

Firstly in task 1,the suitable product of my choice and the country will be briefly described
with reference to other. Furthermore the internal and external stakeholders would be
identified with their impacts on our international marketing decision and in addition the
suitability of the current extended marketing mix of our product to meet the needs of
customers in that particular country is assessed

In the second task, the contents of task 1 will be elaborated and at the same time, concept of
our relationship marketing our communication approach towards the stakeholders would be
described moreover, our expanding marketing mix will be shown to beat competitive
advantage in international market, next for expanding international marketing an appropriate
budget will be clearly shown.

Finally, we would evaluate the success of our implemented extended marketing mix
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3. What is international marketing?

# Most of the companies trying to offer their products to international market because they are
looking to extend the life cycle of the products/service/brand and increase revenues &
profitability.

International marketing can be defined “at its simplest level, international marketing involve
the firm in making one or more marketing mix decisions across the national boundaries at its
most complex level , it involves the firm in establishing manufacturing facilities overseas and
coordinating marketing strategies across the world.” Doole and lowe (2001). According to
cateora & ghauri (1999), international marketing is the performance of the business activities
that direct the flow of a company goods and service to consumer in more than one nation.

A company which has planned to enter the international market should follow these
processes:

1. Country identification
2. Preliminary screening
3. In depth screening
4. Final selection
5. Direct experience.

(SOURCE: www.marketingteachers.com)
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TASK ONE
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4. Justification of choice

#4.1. COUNTRY IDENTIFICATION

Bharti airtel is an Indian basis company. It would like to step on to the global market. The
best choice is to choose any SAARC region countries, as they have strong relationship as
well as show similarities in their economic growth level and culture. More over we also have
to identify the country which would be suitable to launch our brand, some facts are as
follows:

FACTS NEPAL MALDIVES BHUTAN

Market attractiveness 5.5 6.0 6.0
Competitors 5.0 7.5 6.5
Relationship between 8.0 9.0 6.0
India
Regulation 6.5 7.0 6.0
Taxation policy 6.0 6.0 6.0
Political stability 5.0 8.0 7.0
Resource availability 7.0 8.0 7.0
AVERAGE 6.14 7.3 6.3

(SOURCE: TKF LECTURER MR FAILAN SALEEM)

4.2. PRODUCT JUSTIFICATION

Airtel provide number of product with the brand name, mobile connection, mobile broadband
and digital cable TV, so I have to suggest the suitable product to the Maldives market.

In case of Maldives if we offer mobile connection, through that we should offer calls, SMS,
MMS, video calls, IDD and mobile GPRS, so we can’t offer all these services to only
approximately 400,000 subscribers, which is small amount of penetration compared to India,
Srilanka and Bangladesh.

More over there are 2 players competing head to head in the mobile market, so I believe that
we can’t achieve great success in Maldives through this service.

If we take airtel digital cable TV, airtel has only provide that service in India as it is large
country with the lot of channels so we are achieving success in that service but in case of
Maldives it is a small country with limited number of channels and also Maldivian people
prefer mostly to listen radio than watch TV

If we move our concern to Maldivian broadband market 3 players are competing, due to their
poor services only limited amount of penetration to the internet, furthermore Maldives has
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advance internet technology, so we hope to provide good services through broadband by

yielding many subscribers.

4.3. MALDIVES BROADBAND MARKET

Airtel originated from bharti airtel limited. Airtel is one of the largest mobile and broadband
service provider in india .they have already started their journey in srilanka & Bangladesh
and now they have planned to launch in Maldives too. Maldives is more developed than the
other countries in the SAARC region. The Maldives economy depends on tourism & fishing.
Airtel would like to offer broadband service in Maldives. Diraagu, Wataniya and rajjeonline
are the three major players competing in the broadband market in Maldives.

Category 2009 2010 (e)

Internet:
Total number of subscribers 19,800 22,500
Annual growth 11% 14%
Internet subscriber penetration (population) 6% 7%

(SOURCE: Buddecomm)

5. Internal & external stakeholders and their impacts on international marketing

decision

SUPPLIERS
#No firm can supply all of its own needs, so is in the case of airtel. Modems, radio wireless
system and packaging materials. Services are necessary inputs. Suppliers are critical link with
the environment, a source of cost but also of possible partnerships.

Impacts on airtel

 Availability, delivery times and quality of the product are the key determinants
 Cost of materials are an important factor in the total cost of many products
 The quality of the supplier relationship is a crucial parameter in marketing
effectiveness
 If partnerships fail to deliver marketing benefits, backward integration mat be
considered.
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CUSTOMERS

All businesses have customers has the final link in the input/output chain, whether these
customers are organisations or individuals. The population in Maldives is 300000 but only
6% are using internet, our main objectives is increase the subscribers from 6% to 10%.

Impact on airtel

 Customers are the only source of income.

 An unsatisfied customer tells many more of the experience than does a satisfied one.
 Customer preferences can change very quickly but can be influenced by the marketer
airtel comes up with attractive broadband packages to keep the customers.

INTERMEDIARIES & DISTRIBUTERS

These must also be considered as an organisation does not always sell directly to the
consumer, intermediaries & distributers are important elements of the marketing channel that
makes the product available to the user. Airtel is hoping to have intermediaries such as
communication shop to make the modem in the areas where airtel outlets are not established.

Impacts on airtel

 Distributers who are in effective in delivering the product to the customer will have a
negative impact on a company
 They have mutual interest that form the basis of joint ventures and partnerships

SHAREHOLDERS & CREDITORS

Airtel is a private company which does not sell its shares to the public if we are in need of
money we can obtain from creditors such as bank & other financial institution that provide
short & medium funds.

EMPLOYEES & UNIONS

Most organisation have employee who contribute their time and skills for monetary another
rewards. They form part of wider society and reflect its values and beliefs.

Impacts on airtel

 The image of the company directly depends on the quality of employees.

 The more the company motivates its employees will lead to the more the company
gains benefit from them.

COMPETITORS
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They are exception in the stakeholders whereas they threaten, rather than contribute to the
survival of the business. There are three major player competing in the broadband market in
Maldives namely wataniya, dhiraagu, rajjeonline.
Impacts on airtel
 Company can’t make decisions without reference to its competitive environment.
 Pricing must account for what the market will bear and the reaction of competitors

MALDIVIAN GOVERNMENT
Impacts on airtel

 Government policy of global market and global brands.

 Maldives broadband tariffs & tax policy.
 The relationship with international government may encourage our market stability.

TELECOMMUNICATION AUTHORITY OF MALDIVES

The communications authority of Maldives has the mandate of regulating the
communications sector, creating an environment conductive for promoting competition in
services and developing these services according with the national telecom policy and
Maldives telecommunication relegulation.

MINISTRY OF COMMUNICATION SCIENCE & TECHNOLOGY

The new telecom policy was introduce by the ministry of communication which is also
responsible for ICT policy formulation, ICT management, strategic ICT planning,
formulating ICT standards and it also improves the public sector service.

MINISTRY OF ECONOMY DEVELOPMENT

This ministry is formed with authorisation to supervise all trade & business related activities
which include the registration of intellectual property, investments and companies. This
ministry is also responsible for developing and implementing trade policy and laws according
to local & international laws

MINISTRY OF EMPLOYMENT & LABOURS

This ministry responsible for the formulation of employment act which determines
fundamental principles relating to employment in Maldives and also provides all the other
maters associated with employment like the rights and obligation of employers and
employees.
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6. Current extended marketing mix

#
PRODUCT: our product is mobile broadband; we hope to launch three kinds of packages in
Maldivian market, HOME PACKAGE, STUDENT PACKAGE and BUSINESS CLASS
PACKAGE.
PRICE: penetration pricing strategy for home and student package, market skimming
pricing strategy for business class package.
PLACE: outlets, branches, teleshops and sub dealers
PROMOTION: awareness programmes, TV and radio commercials and hoardings
PEOPLE: well trained staffs, technical officers and experienced management team.
PROCESS: full equipped call centre, proactive response to customers and doorstep
awareness programmes in educational institutes
PHYSICAL EVIDENCE: standards design for all outlets and red and white colour logo
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TASK TWO
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7. Summary of audit finding

7.1 IDEANTIFICATION OF STAKEHOLDERS

STAKEHOLDERS LEVEL OF IMPACT ON

INFLUENCE AIRTEL

Internal
H M L

No firm can supply The quality of

all of its own needs, supplier’s
Suppliers so is in the case of relationship is the
airtel. Modems crucial parameter
radio wireless in marketing
system and  effectiveness.
packaging materials.
If partnership fails
to deliver
marketing benefits,
backward
integration may be
considered.

All business have Customers are only

customers has the source of income.
Customers final link in the
input/output chain, A satisfied
 customer tells
whether these are
organisation or many more of the
individuals. experience than
does a satisfied
one.

Intermediaries & Airtel is hoping to Ineffective

distributers have a distributers
such as
communication
shops to market the
modem in the areas
where airtel outlets
are not establish.
distribution will
have a negative
 impact on airtel.
They have mutual
interest that forms
the basis of joint
venture and
partnership.

Shareholders & Share holders
creditors provide the longer
term capital while
creditors such as  lead to selling,
banks & other
financial institution
provide short term
funds.
Employees Employees are more
powerful
stakeholders in
internal  quality of
environment, who
contribute their time
& skill for monetary
and other rewards.
External
Competitors There are three major
player competing in the
broadband market in
Maldives namely
waraniya, dhiraagu and
rajjeonline.
Maldivian
government
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Adverse
shareholder
perception may
which drives down
the market
valuation of the
company relative
to its net asset
value.
Maldivian Bank
interest rates may
affect our financial
division.
The image of the
company directly
depends on the
employees.
The more
motivation we give
to the employees it
culminates in more
benefits.
Pricing is accountable
for what the market
will bear and the
 reaction of the
competitors.
For deciding
broadband tariff we
have to take in
consideration
competitors pricing
strategy.
Government policy of
global market and
global brand.
Maldives broadband
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tariffs and tax policy.

 The relationship with

international
government may our
market stability.

Telecommunication TAM has the Overall planning and

authorisation developing of
Authority of determining the communication sector.
Maldives.(TAM) communication sector
and creates and Providing licence for
environment conductive  all telecom providers.
for encouraging Regulation of tariff.
competition among
services.

Ministry of This ministry is Airtel must act upon

communication responsible for making the policies made by
telecommunication  this ministry.
policies(2006-2010)

Ministry of This ministry supervise Before launching our

economy all trade and business company in Maldives
development. related affairs. we have to register our
 business and submit
some of our main
documents to this
ministry.

We have to consider
the trade policies and
laws during the presses
of our business.

Ministry of labours. The ministry of labours We have to enforce the

is responsible for employment act (age
developing employment  limitation of labours,
act. basic salary, rights of
employees)
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7.2 SUITABLITY OF MARKETING MIX

PLACE PRODUCT
PRICE
 OUTLETS AIRTEL MOBILE/WIRELESS
 COMPETITOR PARITY
BROADBAND
 SUB DEALERS PRICING STRETAGY FOR
 HOME PACKAGE HOME PACKAGE &
 TELESHOPS
STUDENT PACKAGE
 STUDENT PACKAGE
 BRANCHES
 MARKETB SKIMMING
 BUSINESS CLASS PACKAGE PRICING STRETAGY FOR
BUSINESS CLASS
PACKAGE

PROMOTION
MOBILE BROADBAND
PEOPLE
 PRODUCT
AWARENESS  WELL TRAINED
PROGRAMMES EMPLOYEES
PHYSICAL EVIDENCE
 HOARDINGS  TECHNICAL OFFICERS
 RED & WHITE
 TV AND RADIO  EXPERIENCE
COLOUR LOGO
COMMERCIALS EMPLOYIES IN
 STANDARD TELECOMMUNICATIO
 AWARENESS
DESIGN FOR NON FIELD
PROGRAMME IN
ALL OUT LETS
HIGHER STUDIES
INSTITUTION

PROCESS

 FULL EQUIPPED CUSTOMER SERVICE CENTER

 PROACTIVE RESPONSE TO CUSTOMERS
 DOOR STEP AWARENESS PROGRAMMES BY
SALES FORCE
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When stepping into foreign market we have to take into consideration consumer’s cultural
background, buying habits, levels of personal disposable income etc in order to deliver a
tailored marketing mix programme to suit their needs & want.

Product

We are hoping to launch wireless broad band connection with slim USB modem to Maldives
broadband market. If we take Maldives internet subscribers, they only amount to 6%. So our
plan is to introduce three packages for each of the three different groups.

Price

Before deciding tariff of broadband services we have to get approval from telecom authority
of Maldives (TAM) , more over we have to look into the personal disposable income of
Maldivian citizen , two competitors current price rate, exchange rate as well as current
inflation rate of Maldives (5.8%).

We are hoping to offer reasonable price for the home package and student package, as our
aim is to motivate the non internet subscribers. On the other hand for the business class
package we are hoping to charge higher price than competitors who are offering specific
package.

Place

Male is one of the important well developed cities in Maldives as its capital. Adding to this it
is also well populated. So would like to setup our head office in male and also some of our
outlets.

In addition we have to select some important cities where we can launch our outlets, rest of
the cities we hope to substitute intermediaries like communication shops to provide USB
modem to the people living in that particular areas.

Promotion

Regarding advertisements Maldivian language Dhivehi should be used as most number of

people aware of it. Furthermore in Islamic cultural countries it is not acceptable to show
naked legs in adverts. So we have to take this point into concern as Maldives is also like that
sort of country.

We hope to setup hoardings in main cities as well as remote areas. Considering the Medias
for our propaganda we hope to use T.V, radio, press, internet as our communication tools. We
would also sponsor sporting events
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People

As for the employees, our company should recruit some well trained and highly qualified,
people from the competitor side by promising higher salary. And the others we hope to
provide training for about six months.

By doing this we can develop competitive advantage in Maldives broadband market.

Process

As we all know Maldives is a small island with fairly populated. We hope we can cover 95%
of the Maldives by providing them connection facilities within one year. We also believe that
we can put up satellites in cities as well as rural areas to provide signal through radio waves

Physical evidence

We hope to put up hoardings with very famous celebrities images and also launch attractive
outlets in most of the areas. Our logo as usual is with red and white colours.
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8. Justify the product and international market entry

MARKET ATTRACTIVENESS
Market penetration is 6% in Maldives. Only approximately 40000 people are using internet,
through the three internet providers. These three providers handle advance technology, the
use of these advance technology is an extravagance as in Maldives only limited number of
people use internet service and adding to this the subscribers feel anxious to penetrate these
type of service, these are the main reason why the internet market in Maldives is still at its
base.

Airtel broad band’s key message to Maldivian market is “simple plan to speed life” the aim
of this product is to increase the subscribers penetrating to the internet service consumption.
More over the annual growth of Maldives internet penetration is increasing by percentage
every year (2009- 11%, 2010- 14% approximately) this will boost the airtel first entrance to
an international market.

CUSTOMER DEMAND

Even though the customers demand in Maldives is low, its shows the rapid increase by
percentage every year. Our competitors who play major role in internet market in Maldives
conducts most awareness programmes in the capital “male” so the people outside the capital
is less aware of their internet facilities, So airtel has planned to conduct our awareness in all
places not distinguishing capital and remote areas, therefore we will be able to cover the
whole of Maldives within a year.

POLITICAL STABLITY

Maldives is well known tourist paradise, this due to its political stability, that’s why most
tourist visit this place often, adding to this there are no major inter political conflicts or
between other outside countries which is most common in the south Asian region like
Pakistan, Nepal and etc.

In this stability airtel can invest money in that country without any fear.

COMPETITORS

There are three major internet providers competing in Maldivian internet market. Dhiraagu
was the only one company which provided internet service to Maldives till rajjeonline made
its entry in January 2004 with an investment 0f rufiyaa 10 million. In 2009 wataniya also got
permission to provide internet service from telecom authority of Maldives. Rajjeonline
approximately got around 45% plus market share in Maldives internet market, it is the market
leader.
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TELECOMMUNICATION & RESOURSE AVAILABLITY

The Maldives is proud on having developed one of the most advance telecommunication
systems in SAARC region. Dhiraagu has played an important role in setting up the country’s
telecom infrastructure. Maldives has opportunity to provide undersea connection between
main atolls, in order to considerably strengthen the domestic connection. Our competitors are
also providing internet connection through Wi-Fi, wimax, ADSL and mobile broadband.

Some countries are also providing telecommunication resources such as optic fibre cable
system, wireless radio system and non-line wireless systems to Maldives. These resources are
being provided by the countries like Singapore, Malaysia, India and also USA.
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9. What is relationship marketing? & what are the benefits?

Customer is referred to a condition where the overall process of building and maintaining
profitable customer relationship by delivering, superior customer value and satisfaction.

(KOTLER.P)

1. The cost acquisition occurs only at the beginning of the relationship, so longer the
relationship, lower the amortized cost.

2. Long term customer tend to be less inclined to switch and also tend to be less price
sensitive.

3. Long term customers may initiate free word of mouth, promotion and referrals. .

4. The method is an integrated approach to marketing, service and quality.

5. Happier customer may lead happier employees.

9.1. CHALLENGES OF INTERNATIONAL STAKEHOLDER COMMUNICATION

1. Language barriers : in case of Maldives airtel should have provide training to their
employees to increase the communication skills and also airtel’s all communication activities
should be conducted in Dhivehi language.

2. Cultural differences: such as religious value, time value business norms and customs,
negotiating decision making styles gender roles, status differences and team working.

3. Infrastructure differences in Maldives such as technology, time zone, media and transport
infrastructure

(SOURCE: TKF CLASS NOTES)

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10. Communication approach to deal with different stakeholders

#
The relationship marketing concept plays a major role international market. We hope to
maintain good relationship with each and every stakeholder in international market.

SUPPLIERS

Airtel cannot supply all of its essential materials such as radio wireless system and modem
raw materials, so suppliers play a major role in the success of our company. Our relationship
with suppliers is an essential parameter in marketing in marketing effectiveness. Therefore
we have to maintain effective relationship our suppliers, in if they fail to deliver our materials
on time it would only result in having our company negative aspect by our customers

CUSTOMERS

Customers are only source of income of our company; we have to maintain good relationship
with our customers through effective communication and promotion activities

In our advertisements we would like to use Dhivehi language, we also conduct awareness
programmes in higher studies institution, universities and also the remote villages to make
them aware of our product thereby increase our rate of customers. By developing customer
data base we can access easily and also share information with them. Through maintaining
this type of effective relationship we can ensure our sustainability in Maldives market.

EMPLOYEES

Our relationship with our staff will mainly influence their efficiency towards work; thereby it
will restrict our company from achieving its goal. Furthermore we also have to motivate them
not only through financially but also providing them a comfortable working environment to
work on, transport facilities, etc. The delay on their salary will too affect their efficiency.

GOVERNMENTS

Good relationship with government essential part of our business, if not, we will face lot of
problems such as government squeeze our necks making us pay higher tax, thereby we have
to obey governments laws and legislation, to be successful in international market. We hope
to sponsor government’s events (e.g. SAARC) to maintain good relationship with Maldives
governments.
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PRESSURE GROUPS

Pressure groups also our stakeholders in international market. We have to engage these
groups to ensure our organisation’s sustainability. Such as country like Maldives cultural
pressure groups are more powerful than others. In Maldives it is not preferable to show naked
legs women celebrities in our advertisements to maintain good relationship with them.

11. What is standardization and what is adaptation

Products often need to be modified when going out to the international market.
Standardization means providing essentially the same products in the international market
which is provided in the local market. Offering the same product can be undesirable in the
international environment, so we have change our marketing mix strategy which
In order to airtel we would like to offer internet service through Dhivehitel brand name
because Dhivehi is the very familiar name for the Maldivians so we can easy to access
customers.

12. What is competitive advantage?

A competitive advantage is an advantage over competitors gained by offering consumer greater

value either by means of lower prices or by providing greater benefits and service that justifies
higher prices

(SOURCE: www.tutor2u.net)
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A MODEL OF COMPETITIVE ADVANTAGE

(SOURCE: www.quikmba.com)

13. Extended marketing mix of major competitors

#
DHIRAAGU

PRODUCT

 Broadband (ADSL)
 Wimax
 Dial up

PRODUCT
BROADBAND HOME

Speed (download/upload) - 10m /512kbs

Monthly -Rf 690 / 20GB

BROADBAND BUSINESS

Speed (download/ upload) - 10M / 512kbs

Monthly - Rf 2100/ 30GB
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WIMAX
*Validity (Applicable to prepaid
Package Price Allowance Keyword
only)
WiMAX
Home 2G Rf. 250 2 GB
2G
WiMAX
Home 4G Rf.449 4GB 30 Days from initial Login
4G
Business
Rf.1,900 Unlimited WiMAX U
Unlimited

DIAL UP

Charging according to their usage per hour

 4hours monthly Rf 100

 15 hours monthly Rf 330

PLACE

ADSL – almost covered 70% of Maldives

Wimax – available at 28 islands in Maldives
Dial up - almost covered 85% of Maldives

 Teleshops
 Atolls
 Main dealers
 sub dealers

PROMOTION

 Multi educational package for schools, provide 75% 0f discount for this package and
also 10% discount fir monthly rental.
 Solve technical problem by free of charge
 TV and radio commercials, putting hoardings in main cities
 Free game downloads

PEOPLE
 Well experienced management
 Well trained employees
 Technical officers
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PROCESS
 Full equipped call centre
 Wi-Fi zone
 Online payment system
 Proactive response to customers

PHYSICAL EVIDENCE
 Standard design for all teleshops and customer service points
 Standard design uniforms for all staffs

Dhiraagu teleshop of male city (source: Wikipedia)

ROL (RAJJEONLINE)
PRODUCT

Broadband
 Home user
 Small and medium package
 Large corporate package

PRICE

 Biz Broadband 1M
Rf 2200 per month

 Biz Broadband 4M
Rf 7520 per month
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 ROL Value Pack 256k (HOME)

Rf 299per month

 Mega Speed 4M (HOME)

Rf 420

 Corporate Access 1MB

Rf 12900per month

 Corporate Access 5MB

Rf 27200per month

 Corporate Access 10MB

Rf 36900 per month

 Corporate Access 2MB

Rf 17500 per month

PLACE

 Teleshops
 Branch office
 Main dealers
 outlets

PROMOTION
 Live radio and TV streaming service
 Sponsoring school events
 Sponsoring educational event such as exhibitions
 Sponsoring tourist programmes such as beach parties and entertainment shows

PEOPLE
 High emphasis of training, development and customer service
 Technical officers

PROCESS
 Wi-Fi zones for remote areas
 Largest integrated service centres
 24 hours troubleshoot service
 Online billing system
 Customer complaints and feedback pages on website
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PHYSICAL EVIDENCE

 Standard design for all out lets and teleshops

 Logo with blue colour

WATAANIYA

PRODUCT
Mobile broadband
 Broadband explore
 Broadband extreme

PRICE

PLACE

 Teleshops
 Dealers
 Atolls

PROMOTION

 Offering free 10 movie tickets per month for premium customers

 Use famous celebrities in their advertisements
 Sponsoring entertainments shows

PEOPLE
 Well trained employees
 Well trained sales people
 Experienced management teams
 Staff motivation programmes
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PROCESS
 Full equipped call centres
 Large integrated service centres

PHYSICAL EVIDENCE
 Standards designs for all outlets
 Standard uniforms for all staffs
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14. Extended marketing mix of Airtel

#
PRODUCT

In present situation the internet connection is the most essential thing in every home and most
users are children. In home most parents are unaware of the danger of surfing internet. So
airtel would like to provide child safe internet environment by filtering out pornography and
other unsuitable content for children. Through this strategy airtel would also touch corporate
social responsible concept in international market.

Airtel don’t want to trouble subscribers with so many packages which the competitors are
doing (e.g.: ROL has 3 packages with 15 sub packages and dhiraagu providing 3 packages
with 10 sub packages.
We would like to provide our services through Dhivehitel brand name.

PRICE

Price contributes to the airtel’s business and finance objectives and also price can operate as a
competitive tool. Competing by reducing price can lead to retaliation by competitors and a
price war will always favour the firm with the most cash resources. In this case airtel would
like to use penetration pricing strategy for home and student packages so that we can retain
our customers and also recruit new ones, for business package we hope to use loss leader
pricing strategy, sell the mobile broadband for less price and charge higher rate per month.

PLACE

Male is the capital of Maldives and also the well developed city in the country so all our
competitors are more concerned on it rather than the remote areas.
Airtel would like cover all islands in Maldives through airtel offices, atolls and outlets; we
will also give permission to sub dealers such as communication shops cyber cafes to provide
our mobile broad bands.

PROMOTION

ADVERTISING EXPOSURE

AWARENESS

KNOWLEDGE

LIKING ATTITUDE

PREFERENCE

TRIAL (SOURCE : www.marketingteachers.com)

REPEAT PURCHASE
 page 30

Airtel hope to use most well known local celebrities for the advertisements, conduct doorstep
awareness programmes in all schools and educational institutes because we identified that
most of the students are the ones whom should the awareness be created.

Normally Maldivians are crazy with football so we are hoping to give sponsor to either
games or jersey of players and Maldives economy depends on tourism so airtel would like to
sponsor tourist events. Airtel should provide very high speed connection better than
competitors
(E.g.: 2mbs for home package, 5mbs for student package and 10mbs/15mbs for the business
packages.)

PEOPLE

As for the employees, our company should recruit some well trained and highly qualified
people from the competitor side by promising higher salary. This strategy has already been
carried out by airtel in srilankan mobile market, through this strategy airtel can easily trace
competitors strategies. We should recruit local people and should also train them by
providing seminars and workshops to boost the existing employee’s knowledge.

PROCESS

Our existing competitors are only concerned on the well developed islands, most remote
village people aren’t aware of the internet so airtel hope to provide signals for maximum
number of islands through mega radio wireless systems and Wi-Fi zones.
Mobile broadband is not familiar to Maldivians; most of the people are using ADSL
connections so airtel would conduct programmes to aware the people about mobile
broadband and its benefits, and airtel may use paperless payment methods, so customers can
pay the bill through online, this strategy shows environment friendliness of airtel.
The key message of the airtel in the international market is simple plan for speed life.

PHYSICAL EVIDENSE

To get competitive advantage on physical evidence airtel will provide standard designed
uniforms to all staffs, the airtel should make a standard design to all its furniture in their
branches and airtel would like to use environmental friendly packaging to cover the modem.
 page 31

15. Recommend of the appropriate budget

WHAT IS BUDGETING?
A budget is usually a list of all planed expenses and revenue it is a plan for saving and
spending. A budget is an important concept in microeconomics, which uses a budget line to
illustrate the tradeoffs between two or more goods in other terms, a budget is an
organisational plan stated in monitory terms.

PURPOSES OF BUDGETING

 Implement strategy by allocating resource in line with strategy goals

 Coordinate activities and assist in communication between different parts of the
organisation
 Motivate managers to achieve targets
 Provide a means to control activities.
 Managerial performance.

METHODS OF BUDGETING
 Incremental
 Priority based
 Zero based
 Activity based

airtel have to prepare incremental and activity budget, so airtel do not need zero based
budget because airtel is already running successfully in srilankan market.

INCREMENTAL BUDGET
In incremental budgeting is based on the previous year budget as a base where you add or
subtract a percentage to this year budget. The assumption is that there is some meaningful
justification in the last year budget. As our project has been accomplished in srilankan
market, we hope to use that as a base for our new project, to do this we have to be concerned
on exchange and interest rates.

ACTIVITY BASED BUDGET

Also known as ABC budget where the key cost are identified and budget is allocated
according to the resource required. In case of airtel it marketing mix modifications are listed
as a activity budget
PRODUCT: product features and quality maintaining and packaging cost

PRICE: airtel hope to use penetration pricing stretagy for their products this strategy has
chances to earn lose in initial stage of the airtel, so airtel have to mention this on its budget.

PLACE: building cost of office branches, teleshops and outlets and distribution cost
 page 32

PROMOTION: cost of conducting awareness programmes in schools and education

institutions, TV, radio commercials, payments of celebrities and cost of hoarding and
billboards

PEOPLE: providing training programmes to staffs, seminars and workshop programmes.

PROCESS: airtel would have to give large number of money to the suppliers who are
providing radio wireless systems and mobile broadband materials, cost of launching Wi-Fi
zones

PHYSICAL EVIDENCE
Airtel would like obtain their monthly charges by customers through online so airtel have to
pay large amount of money for this method. Cost of providing standard uniforms for all
outlets and make standard design of all outlets and teleshops.

16. Evaluation of methods to measure the success of extended marketing mix

#
airtel want to evaluate their extended marketing mix. The company needs to find whether this
extended marketing mix is a successful one, what people think about this marketing mix, the
pros and cons of the extended marketing mix.
These measurements could be done in following ways

SALES: Based on company sales we can evaluate the success of marketing mix elements if
airtel’s sales increase after the implementation of marketing mix so we ensure that the
company is in a strong position to provide aggressive packages, flexible pricing strategies,
effective distribution & proactive response to corporate customers.

TRACKING STUDIES: this technique is used to monitor responses over an extended

period of time. It monitors the variables before and after the marketing activity. Airtel can
implement this method by using specific consumer panel researchers and consumer surveys

FINANCIAL ANALYSIS: this is where airtel can monitor the marketing expenditure
against budget profitability analysis; with this analysis we can measure the success of pricing
strategy which airtel used in Maldives market

STAKEHOLDER SATISFACTION: stakeholders satisfaction ensure our sustainability in

Maldivian market, so airtel can use stake holder monitoring as a method where survey
questionnaire and depth interviews also airtel has a web page through this page customers can
type their complaints and feedbacks.

ENQUIRIES: airtel can make enquiries to find out the success of extended marketing mix.
Airtel can do a research on calls to their customers and enquiry about product quality and
features.

MEDIA EVALUATION: it is also can be used as a method where airtel needs to monitor
the medias and wants to gather information about airte’s marketing mix.
 page 33

INCREASED BRAND AWARENESS: this is usually measured by formal market research,

and is one measure in promotion. It does not necessarily translate into sales revenue an
outcome, however being aware of the brand is not the same as intending to buy it. Obviously
increased awareness of the brand will probably increase the number of people who will be
interested in buying but in some cases people are aware of a brand in a negative way, in case
of airtel as mentioned before in promotion concept in marketing mix to conduct awareness
programmes in Maldives, through increased brand awareness we can measure how far it has
worked out among Maldives people.
 page 34

17. References

Books
TKF class notes
TKF red books

The internet
www.aitel.in
www.wataniya.mv
www.dhiraagu.mv
www.rol.mv
www.tutor2u.net
www.marketingteachers.com
www.quickmba.com

18. Appendix

#
18.1. COMPANY BACKROUND
Airtel which is the largest telecommunications service provider in india in terms of number of
subscribers, is the brand of telecommunication services in india, srilanka and Bangladesh
owned & operated by Bharti Airtel. Airtel, which is being third largest cellular service
provider in the world, is a subsidiary of Bharti Airtel limited. As one of asia’s leading
integrated telecom services providers with an approximately 50 million broadband customers
in south asian region

The company is structured into four strategic business units - Mobile, Telemedia, Enterprise
and Digital TV. The Telemedia business provides broadband, IPTV and telephone services
in 94 Indian cities but in srilanka their only providing broadband & mobile

COMPANY VISION

 Loved by more customers

 Targeted by top talent
 Benchmarked by more business

18.2. ABOUT AIRTEL BROADBAND

Wireless broadband high speed internet via wireless technology. The advantage of
introducing wireless broadband is that computer receiving internet signal need not to be
attached by net work cable to the broadband modem. The wireless broadband modem
receives the service and transmits by means of radio waves to the nearby surroundings.
 page 35

To use the airtel broadband, simply you need an airtel broadband sim card and smart and slim
USB modem. The airtel wireless broadband user merely has to insert the slim modem into the
PC or the laptop which he is using after user is the done with surfing he has to unplug the
modem which is portable and it could be plug back in whenever the user wants to go online.
Airtel broadband is the simple method of browsing and a fantastic way to speed up our
subscribers’ online experience. We hope to introduce airtel a different form by changing its
original name to dhivehitel in order to tally with their country.

18.3. TARGET CONSUMERS OF BROADBAND PACKAGES

Broadband packages Target consumers

Home package for people who rarely use internet at home

Student package School student and university student who

are browsing internet very often for their
studies

Business class package Business people who are working in upper

hierarchy are using very often using internet
for business purposes
 page 36

18.3. STAKEHODERS AND THEIR INVOLMENT AREAS

Suppliers

Distributors &
intermediaries

Customers

INTERNAL
Stakeholders
STAKEHOLDERS

Employees

AIRTEL

Competitors Indian government

Labour ministry Telecommunication

ministry
EXTERNAL Maldivian
TAM (TRC OF
MALDIVES) government
STAKEHOLDERS
Creditors & financial Economic
institutes development ministry
 page 37

Stake Strategic Finance Service Market Legal PR Organisation Other

Holders Direct Quality share legislation media change regulation
Customers Yes Yes Yes

Share holders Yes Yes Yes

Government Yes Yes Yes

TRC Yes Yes

Competitors Yes Yes Yes Yes

Employees Yes

Intermediaries Yes

Suppliers Yes Yes Yes

Telecommuni Yes Yes

Cation, labour
& economic
development
Ministries
 page 38

18.4. CONFIRMATION STATEMENT

I confirm that in following this assessment for making, I understand and have applied the
CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is
the result of my own independent work/investigation except where otherwise stated. Other
sources are acknowledged in the body of the text and/or a bibliography is appended. The
work that I have submitted has not previously been accepted in substance for any other award
and is not concurrently submitted in candidate for any other award.

STUDENT NO: 13497311