1. Presented by
Group 2

2. Indian scenario since 1991 for telecom market
• Prior to 1880’s telecom sector was taken under
department of post and telegraph
• Many reforms supporting this industry have been
injected
• In 1984 Privatization of this sector was done
• C-Dot was developed
• In 1986 BSNL and VSNL were established
• For private companies regulation TRAI was
established
• NTP 94 and NTP 99 played a crucial role

3. Indian telecom – growing share in world telecom
-Total Telecom Base ~23 Crore 3rd largest in the world
-Tele-density ~20 % Lowest in the World
-Wireless Sub Base ~18 Crore 3rd largest in the world
-Wireless Penetration ~16 % One of the lowest
-ARPU <USD 9 One of the lowest
-Mou/Sub/Month ~490 minutes 2nd highest in the world
-Realized RPM ~2 US cents/min Lowest in the world
-Fixed line Sub Base ~5 Crore
-Broadband Sub Base ~20 Lakh Large potential market
Indian telecom –well placed in world telecom space
Source: Based on data in Global Wireless Matrix 1Q07- Merrill Lynch. COAI & AUSPI data June 30 , 2007

4. PESTLE Analysis
Source: An analysis of Factors Influencing the Telecommunication Industry Growth
A case study of China and India
School of Management: BLEKINGE INSTITUTE OF TECHNOLOGY

5. Political
• Govt. gave up policy of central planning and
control
• Govt. established national telecom policy
(NTP)
• Telecom Regulatory Authority of India was
established on 20 February 1997
• 11th 5 yr plan, emphasis was given on
improving services in rural region
• Huge license fees and gestation period for
new entrants

6. Economic
• Health, education, e-governance, rural
development by providing better and
quick communication.
• Bharti has over one fifth of overall
Indian market
• Reliance 16.71%, Vodafone16.52%,
Tata11.16%
• Multinational firms ---High end
consumer and high performance
market
• local Players --- low end consumer and
low performance market
• Liberalisation fuelled intense
competition : Low costs
• Growth in IT gave boost to telecom
industry

7. Social
• Rural Tele-density 28.4%,
urban Tele-density
137.3%
• Causes of travel are
replaced by
communication.
• Helps society to be in line
with Global activities
• Supporting Leukaemia
and Lymphoma Research:
CSR

8. Technology
• Technology reduced costs
• Increase in tele-density from 63% - 67.6% (TRAI
2010)
• Wireless subscriber base for telecom industry
509.3 MN (TRAI 2010).
• E-Payment, E-Commerce, E-Marketing, AV
media, Social Media

9. Ecological
• Devices and Towers emits
unhealthy radiations
• Hindering Infrastructure
development
• Airtel along with
Vodafone
Eco Active
Paper Sourcing
Energy Conservation
Sponsorship
Help us Being a Greener
Company
Join our E-bills Scheme

10. Legal
• Two legal aspect: Licensing and Tele-density
• Licensing: : Unified Access Services (UAS 2003)
• Tele-density: Universal Service Obligation Fund (USOF 2002)
USOF was estimated to hold around $ 3.6 bn at the end of FY10
• Auction & FCFS
• 3G roaming issue: HC issued a DoT order against airtel (mar, 13)

11. Porter’s Five Forces Model

12. THREAT of SUBSTITUTES
LOW

13. Threat of new entrants
BARRIERS:
• Investment Cost
• Optical Fibre Network
• Regulatory Charges
• Spectrum cost
• Deterrent and Hidden Cost
LOW

14. RIVALRY AMONG EXISTING PLAYERS

15. RIVALRY AMONG EXISTING PLAYERS
220
200
250
200
150
250
200
BSNL
IDEA
Airtel
Tata Docomo
Relaince
Vodafone
Aircel
Minimum Full Talktime offered by the Companies
Tariffs (Minimum Full Talktime)

16. RIVALRY AMONG EXISTING PLAYERS

17. RIVALRY AMONG EXISTING PLAYERS
High Low
HIGH

18. BARGAINING POWER OF SUPPLIERS
• Mobile Handset Supplier
• Optic Fiber Wire
• Software assistance
• Spectrum Cost LOW

19. BARGAINING POWER OF BUYERS
High Low
HIGH

20. Telecommunication Market in India

21. Active Subscribers
0
20
40
60
80
100
120
140
160
180
200
Airtel Vodafone Reliance Idea BSNL+MTNL Tata Aircel Unitech Others
Total Active Subscribers(mn)
Total Active Subscribers(mn)

22. Market Share
Airtel
25%
Vodafone
20%
Reliance
15%
Idea
16%
BSNL+MTNL
8%
Tata
7%
Aircel
7%
Unitech
3%
Others
2%
Market Share

23. Market Segmentation
• On the basis of geographical Variables.
• On the basis of Demographical Variables.
• On the basis of Income.
• On the basis of behavioural Variables.

24. Market Segmentation

25. Competitive Strengths of Airtel
• Diversified Businesses
• Nationwide Footprint
• Seeking new business opportunities
• High Quality Service
• Strong Bonding with big players

26. Few more Competitive Strengths
• Evaluation of Airtel Brand Elements, Memo
ability, easily recognized, Easily recalled.
• Meaningfulness, Descriptive, Persuasive.
• Likability, Fun and interesting, Rich visual and
verbal imagery, Aesthetically pleasing.
• Transferability, Transferability within and across
product category, Transferability across
geographic boundaries and cultures.
• Adaptability, Flexible, Updatable
• Protect ability, Legally, competitively

27. Brand elements of airtel
•The brand elements of Airtel are easily
recognized and recalled.
•The brand elements are interesting and funny
with verbal imagery.
•Adaptability ,flexible and updatable
•Protect ability

28. Brand Elements of Airtel

29. Marketing Strategies of Airtel
Airtel has adopted the strategy of direct communication
to target it’s rural customers-
•Use of local language in it’s marketing content.
•Vans used to educate about mobile services and it’s
usage.
•Developed share phone services(PCO’S) in rural regions
to increase awareness about the brand and it’s services.
•Bharti airtel service centres- Customer services
provided in local dialects

30. Marketing strategies in rural areas

31. Advertising strategies
Airtel has always backed on human relations and
emotions in their brand communication through
it’s advertisements focusing on the emotional
content. The brand promotion has come a long
way with it’s signature tune composed by A.R.
Rahman in 2002 to the latest ad campaigns
inspired by the theme of friendship.

32. TV Commercials
JOIN THE DOTS

33. Communication Boundaries

34. PRINT ADVERTISEMENTS

35. Airtel into Mobile Marketing
Through airtel’s mobile Advertising platform, advertisers will be
able to leverage multiple communications outlets and tools such
as-
•SMS
• Wireless application protocol(WAP)
•Audio visual content(MMS)