1. QUESTION -3
Do you think Bharti has not been giving enough time
for one positioning plank to prove effective before
moving on to the next? What are the merits and
demerits of frequently changing a brand’s positioning?
2. POSITIONING STRATEGY ANALYSIS
Rationale
In telecom industry people live a brand 24X7 so the possibilities
of being tired by a continuous campaign is very high
Brand restructuring helps the company to broaden its customer
base by reaching more people and offering new services
Success
Airtel is the most recognizable brand in Indian operator space,
with 30.8% of respondents able to identify it as a mobile brand
unaided
A member of Forbes ‘Asian Fabulous 50’
Of 10 million new subscriber sign up every month one in every 4
sign up with Airtel, not only to make calls but also to access the
Web, download cricket scores and send billions of
4. QUESTION-4
In the light of intensifying competition in the Indian
cellular telephony market and the fact that almost all
players have began focusing on the marketing front,
what should Bharti do to ensure that it retains its
market leadership position.
5. Recommendations
Strategic
In 2003 ,Airtel changed its tagline once again and the new
tagline is ‘Express Yourself’. This dynamism should be
maintained in future to build a more comprehensive and
stronger brand.
More focus on emotional angle to differentiate the brand
Airtel was the first cellular service provider to start
customer centers ( Airtel connects), thus setting a trend of
effective and responsive CRM system & it should be
maintained.
Innovative and low priced schemes for attracting mass
6. CONT….
Low-priced and Youth oriented schemes (e.g. Campus
pack, Student pack) are to be implemented more
effectively.
Keeping the competition low by strategic alliances and
acquisitions.
Aggressive rural market penetration using
infrastructure and by implementing innovative &
focused schemes.
Promotion in regional languages to tap rural market.
7. Cont….
Technical
Widening of the network coverage area
Increasing quality of service & interconnectivity
Innovative VAS such as e-recharge, recharge using SMS
Advanced technology introduction such as 3G,Mcommerce
(e.g. m-check, ATM recharge)
Promotion of Blackberry and other business customer
oriented services
Better use of internet and transforming it into a direct
communication channel
8. QUESTION-1
Examine the circumstances in which Bharti launched
Airtel and trace the brands initial days in the backdrop
of emerging cellular market in India. In the light of
‘Leadership’ campaign, analyze why Airtel & other cell
phone brands were seen as premium end offerings.
9. INITIAL DAYS
Sunil Bharti Mittal laid the foundations of the New Delhi
based Bharti group in 1970s with a small bicycle part
business.
1985 Bharti group entered the telecom business by
establishing Bharti Telecom Ltd. and entered into technical
collaboration with Siemens AG Germany for
manufacturing electronic pushbutton telephones.
Launched cellular service in Delhi in 1992, started offering
post-paid service from Nov,1995.
Started offering VAS such as Smart mail, Fax, Call hold,
Call waiting etc. and e-commerce portals to facilitate
consumers.
10. Premium end offerings and
‘LEADERSHIP CAMPAIGN’
In the initial days due to high tariff rates cellular players had to
impose high call charges on their customers and the handsets
were costly.
Naturally, they targeted the elite, up market professionals and
entrepreneurs as customers . Airtel was positioned as an
aspirational and lifestyle brand .
It was pitched not merely as a mobile service, but as something
that gave consumer a badge value. The Brand was developed to
connote leadership in network, innovations, offerings and
services.
The taglines like "Airtel celebrates the spirit of leadership" and
"The first choice of the corporate leaders" emphasized that
stance.
The ‘Leadership’ campaign was reportedly successful and
resulted in a marginal improvement in Airtel performance.