2. We build it because you want it-
Sunil Bharti Mittal.
(Founder, Chairman and Group CEO
of Bharti Enterprises)
Mukesh Dhirubhai Ambani.
(Chairman, Managing Director
and largest shareholder of
Reliance Industries Limited)
3. Airtel- Our Mission
-To be globally admired for
telecom services that delight
customers-bench marked by
more business-first private
telecommunication company to
launch long distance services.
4. • Bharti Airtel is the largest mobile telephony operator in
the GSM space with 19.8% share of the Indian wireless
market (as at the end of FY12). The company, apart
from being the largest player in the mobile segment
with subscribers in all the 22-telecom circles of the
country, also provides varied services like fixed line,
broadband and retail internet access. During the period
FY07 to FY12, the company grew its sales and profits at
average annual rates of 31% and 1% respectively.
• Reliance Communication Ltd. (RCL) is the second
largest private sector mobile telephone operator in
India with a wireless (CDMA and GSM) subscriber base
of nearly 50 m.
Airtel Vs Reliance-
Revenue
5. • Airtel has been successfully segmenting its market.
1. Geographic-
Airtel is now acting as a global player and has set its network all around
the world. It operates in 20 countries across South Asia, Africa, and
the Channel Islands. It has its network in Germany, Bangladesh, Burkina
Faso, Ghana, Tanzania, Kenya, Uganda, Nigeria, Republic of the Congo, Sri
Lanka, Zambia and many more countries.
Airtel- Segmentation Strategy
6. 2. Demographic-
Airtel has majorly segmented people of every age group i.e. young, old.
Gender-Male, female.
Income- And it’s target has always been people of upper middle class and
rich people.
Occupation- Student and professional workers.
Education- Literate.
Religion- Every religion
Nationality- Being global.
3. Psychographic-
Social class- Upper lower, Working Class, Upper Middle Class,
Lifestyle- Achievers
Personality- Gregarious, Authoritarian, Ambitious.
4. Behavioral
Benefits
Loyal- It has always focused more and more towards people who are loyal
customers and their loyalty begins from speed and ends at service.
7. • Reliance- Being more focused towards CDMA in India and GSM in 8 circles
outside India. Reliance has not been able to set its network in major regions
whereas Airtel has GSM network and has built a strong network.
• In demographic variables, Reliance has majorly focused on young people
and that too mainly on college students who don’t have much paying
capacity and at this age when they need more talk time, they need that
kind of network. Reliance is popular among students and hence it has been
abandoned by working class people. Hence high revenue is not expected.
• Reliance is popular among lower class people and upper lower class people
and hence it has failed to capture posh areas.
• Reliance has no specific plans for different occasions and it has not been
able to capture eyes of people during and occasions whereas Airtel, Idea,
Vodafone keep on bringing new plans on every occasions.
8. • Airtel has been targeting posh areas and customers who value
speed and wants good service and as Airtel is mostly known for its
services, they has been able to serve in the best manner. Airtel is
doing majorly Differentiated marketing, Niche marketing whereas
Reliance is doing mass marketing and micromarketing (local and
individual marketing).
Airtel Vs Reliance-
Targeting Strategy
9. • Reliance- Consumer define calling charges i.e.
free or very cheap rates on r2r as an
important attributes of reliance.
• Airtel- Consumer define internet broadband
connections, WiFi, internet charges, services
as important attributes of airtel.
• Reliance is positioned as for calling purpose
and Airtel is positioned as best for internet
usage.
Airtel Vs Reliance-
Positioning Strategy
10. • In terms of service Airtel has defeated every
other company. People are highly satisfied
with their service and main reason why
people are switching on to Airtel is because of
their fast service. Question is how?
• Reliance- Works-
Airtel Vs Reliance-
Service
BCG Matrix
11. • Airtel earns revenue majorly from broadband
sector and it there will be any loop-hole,
company will suffer a lot and thus it keeps eyes
and ears open and if it finds any problem faced
by customers, quick services are provided to
those customers. But in case of Reliance,
though the company is very big and investing
huge amount in broadband sector, people
complaint mainly for its poor services. During
our survey when we were asking their
installation engineers that what is the problem
Reliance is facing in terms of services, they said
that instead of focusing more towards service, if
company finds any kind of loss from this sector,
they try to recover it from the earnings of other
sector. No proper incentives is provided to
installation engineers, services provider etc.
12. • Product- Both companies offer broadband connections and are also
in telecom field.
• Price- In Broadband connection, Airtel is considered costlier than
reliance and Reliance and its plans for internet usage and calling
are cheaper than Airtel. Where internet monthly plans are of Rs.
499, Rs. 1099, reliance costs Rs. 299, etc.
• Place- Airtel targets posh areas, urban markets, upper- societies,
hostels, institutes, hotels apartments etc. Reliance targets
individuals mainly students, lower class people.
• Promotion- Airtel promotes its product more than Reliance and its
on very occasion it brings some or the other plan and promotes it.
And as Reliance earns its huge revenue from oil segment and other
industries also, it promotes its telecom related products on lower
scale in comparison with Airtel.
Airtel Vs Reliance- 4Ps
14. • Now here comes the biggest
competition. Reliance Jio entering,
the competition again hots up.
• Reliance- disclosed plans for 4G.
• Investment of $14 billion has been
done.
• This move of Reliance has shaken
up rivals like Bharti Airtel, Vodafone
etc.
Airtel Vs Reliance
15. March 31, 2013 Data-
EPS- Earnings per share
Reliance- Rs3.3
Airtel- Rs 6.0
Net Sales-
Reliance- Rs (m)205,610
Airtel- Rs (m)803,590
Profit after tax-
Reliance- Rs (m)6,720
Airtel- Rs (m) 22,757
Return on equity (%)
Reliance- 2.0
Airtel- 4.5
Return on capital (%)
Reliance- 5.2
Airtel-8.9
Airtel Vs Reliance-
Performance Measurement
16. “Miles have we come, miles to go”
Service
Plans
Speed
Network
Reliability Standard