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Positioning (And Repositioning)

of…..
Project designed by Subhayu Das(IILM BS)KOL

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Contents

Company profile & Indian Cellular Telephony


Industry
Brand endorsement in AIRTEL

Post-Paid & Pre-Paid Cellular Brands in India

STP Analysis & repositioning of Airtel

Bharti - Towards the Future


History of Cellular
Telephony in India

1992 Telecommunication sector in India liberalized to bridge the gap


through government spending
1993  The telecom industry gets an annual foreign investment Rs 20.6
million
1994 License for providing cellular mobile services granted by the
government of India for the Metropolitan cites of Delhi, Mumbai,
Kolkata & Chennai. Cellular mobile service to be duopoly
1995 19 more telecom circles get mobile licenses

1997 Telecom Regulatory Authority of India is set up

1998 Annual foreign investment in telecom stands at Rs 17,756.4 million

1999 National Telecom Policy is announced, Tariff rebalancing exercise


gets initiated, FDI inflow into telecom sector falls by almost 90% to
Rs. 2126.7 million
2000 Amendment of TRAI Act. &FDI inflow drops further down to Rs 918
million coming
A tree is known by its fruit….

VODAFONE
RELIANCE

OTHER(IDEA,TATA
AIRTEL 20% DOCOMO,AIRCEL etc)

10%

25% 45%

Market Share Distribution


Company profile

In 1985,he entered the telecom business by establishing Bharti Telecom


1 Lmtd that manufactured telephonic equipment.

2 Starting work with Siemens AG (Germany) & Takacom


Corporation (Japan) .

3n The flagship services of the Bharti group included Airtel (cellular),


Mantra (Internet Services) and Beetel (telephone instruments)

It is the largest cellular telecom company in the country reaching over


4 600 mln people in 16 (out of 29) states of India. Company posted
revenues of Rs 8.48 billion & a net loss of Rs 1 billion in the financial
year 2000-01

Bharti invested heavily in the acquisitions and alliances ,


5 As a part of this, Bharti acquired JT Mobile (Andhra Pradesh
and Karnataka), SkyCell (Chennai) and Spice Cell (Kolkata).
Analysis…

Bharti Airtel Bussiness


Segmentation of AIRTEL

• Subdivided
States into
Divided category A, B
•On the basis Indian market and C
of in telecom
Geography
circles.
Stepwise segmentation
A good beginning is half of
the battle……..

Middle age Home-maker

Earlier elite class above age Targeted women and senior


group of 25 years. citizens by introducing post paid
plans.

TERGET
Corporate Young generation

•Corporate people and business men. •Again targeted youth by introducing


YOUTOPIA plan.
YOUTOPIA plan

Young generation

School Students College Students

Targeted youth by introducing YOUTOPIA plan because


cash in hand is lucid & EMOTIONAL BIASED BUYER

Trou
gh B
rand h A dd
g
YOUTOPIA plan Trou
Strategy of Targeting(example)

Contents
If we closely watch, the grandfather’s residence
will have a village set up which shows the
network extension of Airtel to even villages. It
also suits the Indian culture and current trends
of Indian families where the modernization and
lifestyle has lengthened the road of emotions
“Ogilvy On
but a parents mind always forgives child for
Advertising” his/her mistakes
written by
David Ogilvy
perfect portfolio of psychology
emotions
product benefit
Positioning

Perception of aspirational and lifestyle brand.

Always maintain leadership - be it in network, innovations, offerings or


services
Positioned in premium category aimed at elite class of society

“power to keep in touch”


Repositioning

Before After

“Touch “Live Every


Tagline tomorrow”. Moment”

Positioned
Positioned inin premium
premium Started to capturing
Focus category
category aimed
aimed at
at elite
elite mass market
class
class of
of society.
society.
Reason for repositioning…

Airtel also shifted customers to derive


its focus from SEC A all benefits of
audiences to SEC B cellular telephony
audiences Why repositioning

Emotional love
convey a warm 'kept close to the
and informal style heart.'
Brand endorsement

Brand essence of

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Prepaid & post-paid competitors

Pre-paid Post-paid

Text in
here
PEST analysis
First cellular service to provide roaming services and
other value added services.
E-commerce portal.
Introduced and involves in broadband services, long
distance services, and internet services.

Perception “ as a brand of the successful people.”


“Word of mouth advertising.”

T Great economic growth & continued


development of India’s economy
S registered a growth of 21%.
E DOT was established to grow telecom
P industry.
Earlier Tariff rates were high due to
high taxes. Now it become lowest in the
world.

POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL


Looking forward….

1.won the 'Techies'

??
Airtel was named award4 for four
the 'Best Cellular consecutive years
Service' in the (1997-2000)
country 2.'Tango' in 2001..

What next?
SUBHAYU DAS

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