BHARTI AIRTEL LTD.

1.1 INTRODUCTION

Bharti Airtel Limited is a leading global telecommunications company with operations in

20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks

amongst the top 4 mobile service providers globally in terms of subscribers. Airtel is a

name that connects with millions of people in India. Today, this telecom giant is amongst the

most trusted telecommunication brands in the world.

From the humble beginnings in the Indian telecom industry in 1986; Airtel had its roots in

Bharti Telecom Limited. Founded in 1986 by Sunil Bharti Mittal, the company was the

first in India to offer push button telephones.

The company then went on to launch various telecom technologies to the Indian market and

had innovation at its heart. Going on to acquire license to build a cellular network in Delhi,

Bharti Telecom Limited laid the ground work for the mobile operations of the company in

the year 1992. It began operations in Delhi in the year 1995 as Bharti Tele-Ventures. The

service was extended to various other states by various acquisitions and partnerships.

In India, the company's product offerings include 2G, 3G and 4G wireless services,

mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH,

enterprise services including national & international long distance services to carriers.

In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Airtel

globally rebranded itself in 2010 and it now follows the ‘One Network’ strategy across all

Airtel operating countries

1.2 PRODUCT OFFERINGS

The various product offerings of Airtel are given below:

1.3 MARKET SEGMENTATION

Due to diminishing marginal returns on its voice revenues, Airtel was forced to abandon its one size fits all demographic segmentation. It came up with a strategy where it classified users into different segments.Segmentation can be defined as the process of dividing the market into customers with similar interests into one segment

There are basically 4 levels of segmentation and Airtel segmented its market as:

i. Segment marketing : Here the target market is divided into different segments on the basis of homogenous needs. Airtel has broadly divided the whole market into 2 categories –prepaid and postpaid.

ii. Niche Marketing : It can be defined as the marketer’s effort to position their product or service in smaller markets that have similar attributes and have been neglected by other marketers. Airtel launched its product blackberry in this category which particularly focused on the upper business class who have to be in touch with the world every time.

AIRTEL

Phone

Post-paid Mobile

Prepaid Mobile

Landline Telephony

TV

IPTV

Digital TV

Airtel Movies

Internet

Broadband Internet

GPRS

3G

4G LTE

Airtel Shop

Airtel Gifts

Airtel Money.

Mobiles

Laptops

TVLandline phones

mobile accessories

computer accessories

Airtel Live

Music

Cricket

Games

Astrology

Antivirus

Hello tunes

News

Alerts

iii. Local marketing : In this segment companies have to focus on the requirements of the local markets to be successful. Airtel is focusing on local marketing by their low tariff plans in rural and even urban cities.

iv. Individual Marketing : In this segmentation, companies focus on individual customers and try to be in touch with them by phone calls, email etc. Airtel regularly calls its every customer and tells them about its new features and schemes.

Figure 1 Market Segmentation

Airtel segmented its consumer market on the basis of:-

1. Geographical segmentation: Airtel segments the market on the basis of states, as they have different plans for different states. The different geographic regions are handled independently and different campaigns are run according to the tastes and preferences of people in each region.

2. Demographic segmentation: The market is divided into groups based on demographic attributes like age, gender, income, occupation, religion, family life cycle etc

i. Age and lifecycle: Recognizing that senior citizens have the need to keep in touch with their children and relatives who may be located far away, Airtel came up with a senior plan which offered a discount on one STD number and one local number. Besides, subscribers of this plan would get special discounts for health check-ups and would have a facility to club bills with that of their children.

ii. Gender: The Company has also launched special packages to target the women. Airtel had started the Ladies Special plan targeted at women and allowed subscriber to receive

special beauty and lifestyle tips, apart from subscriptions to cosmopolitan and housekeeping magazines. The plan also offers women the option to club the monthly bills with that of their spouses.eg: Inspiring women concert , Women of substance, etc.

Figure 2 Inspiring Women Concert

Figure 3 Women of Substance

iii. Income: Airtel also segmented the market on the basis of income through their corporate plans as well as through the launching of Green SIM Cards for farmers. They had started the corporate scheme on the basis of the higher usage rate and higher income persons.

Figure 4 Green SIM Cards

Figure 5 Airtel for Corporates

iv. Generation: Airtel had started ‘Friendz’ pre-paid connection, SMS plans and VAS like hello tunes, which was targeted towards the 15-25 year age. This includes phone-to-phone (P2P) recharge facility, enabling the consumer to transfer talk time and validity to any Airtel prepaid subscriber. In addition comes the introduction of ‘Hot Spot’ tariffs where Airtel Friendz customers can enjoy tariff discounts at pre-designated places within the city.

Figure 6 Friendz’ pre-paid

3. Psychographic segmentation: In this segmentation, marketers segment the market on the basis of motivation, values, belief, lifestyle, personality etc

i. Lifestyle: Airtel focused its attention on two groups in particular.

a. The first group was known as "funsters" -- consumers aged between 18-35 years old, who share a common trait -- a high adoption of VAS. Airtel believes that with some

targeted marketing, spending from this group can increase quite significantly. The Telco has exclusive tie-ups with application providers like Google and has identified music-on-demand as a key value proposition.

Figure 7 Music on Demand

b. The other segment of focus is the "achievers", who are the top five percent of mobile users. While this segment isn't a high adopter of VAS, it contributes to revenues nearly 10 times that of Airtel's ARPU.To enhance customer experience for this segment, Airtel has separate priority relationship managers. It also partnered with HTC and Blackberry to offer highend handsets catering specifically for those customers who want to be in touch with their peers or their subordinates, colleagues etc.

ii. Personality: Airtel last year had also started life Time Validity scheme for the persons who are not financially strong and can’t afford the normal schemes.

4. Behavioral segmentation : Organisations also divide the market on the basis of behavior that the customer shows towards the usage of products. Various variables for segmenting market on the basis of purchase behaviour of customers are occasions, benefits, user status, user rate, loyalty etc.

i. Occasions: Airtel on the occasion of Independence day, introduced a recharge coupon of Rs 1947 with two years validity for its Delhi and NCR prepaid customersand many other offers in collaboration with Apple.

Figure 8 Airtel Independence Day Offers

ii. Benefits: Airtel also provides various tangible and intangible benefits for its customers. Like Airtel launched various tangible benefits like validity schemes for its customers and

intangible benefits like discounts on next bills, roaming, voice mail, fax mail, close user group etc.

Figure 9 Benefits: Discounts

iii. Usage rate: Airtel very often comes up with schemes like Get the talk time of 1111 on the recharge on 1000 i.e. getting more talk time value for which customers are paying, ab baatein hongi hazaar campaign is another example.

Figure 10 Usage Offers

1.4 MARKET TARGETING

Airtel was the first company to target specific customers and it came out with

advertising its group card labeled as ‘Friendz’. In fact, until now, the market was

treated as homogenous.

Airtel then announced Senior citizen cards targeted at those above 60. The “Friends

card” is for those who wish to restrict themselves to their group with low calling

rates and some free messages.

Airtel introduced its Airtel Live! The value added services were provided to

customers to generate more revenue. Hence, they introduced value added cards,

which would help to download ring tones and other fancy stuff.

Airtel ads were categorized by mostly as emotional ads. They had a differentiation

point from their competitors as well as innovative.

Moreover, Airtel has been targeting posh areas and customers who value speed and

want good service and as Airtel is mostly known for its good services, they have been

able to serve in best manner.

So, Airtel meticulously segments its market. Apart from the geographic segmentation, which

divides the Indian market into east, west, south, north and central regions, the market is also

segmented in each region on the basis of age and income. The different geographic regions are

handled independently and different campaigns are run according to the tastes and

preferences of people in each region. Under each region, age and income play an important

role in determining the extent of mobile usage.

Hence Airtel caters to two different categories each in age and income.

It targets younger population by providing them cheap call/msg rates at night and also

cheap SMS plans, while the elder population is targeted by plans for calls at reasonable

rates. In the income categories, the lower income people are targeted by offering them cheap

and affordable lifetime validity prepaid cards, that can be used for incoming calls; while the

higher income groups are targeted by offering them premium services like VAS(value added

services), GPRS plans and 3G technology.

Figure 11 Airtel Market Segmentation ,Targeting & Positioning

1.5 BRAND POSITIONING

Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value.

Figure 12 Brand Positioning Model

Initial Branding

Initially, the target group was elite professionals since tariff rates were high. Airtel has been positioned as an aspirational and lifestyle brand, in a way that has

trivialized the price in the mind of the consumer. It was pitched not merely as a mobile service, but as something that gave it a badge value.

The Brand was developed to connote leadership in network, innovations, offerings and services.

1.5.1Brand Positioning Strategies

Airtel positions itself as juvenile brand linkages to celebrities such as SRK and Sachin. Airtel is transforming itself fully into a service led brand.

1. “Power to keep in touch”- The Leadership Campaign

Airtel was on a power trip: the logo was black, uppercase bold lettering; and the baseline was "the power to keep in touch”.

The taglines emphasised that stance: "Airtel celebrates the spirit of leadership" and "The first choice of the corporate leaders".

2. “Leadership” to “Touch Tomorrow”

Bharti decided to ‘humanize’ the brand ‘Airtel’ in 2000. It started with Bharti launching its new ‘Touch Tomorrow’ campaign which aimed at strengthening its relationship with its customers and make the brand ‘softer’ to cater a wide variety of people across the society.

The advertising became two-pronged: a product-driven communication that showcased new offerings like the Magic prepaid card, and an emotional communication to connect with younger people.

3. “Touch Tomorrow” to “Live Every Moment”

Airtel came out with a new logo. The logo signified a strong, contemporary and confident symbol for a brand that was always ahead of the rest. It had two solid, red rectangular forms

whose counter forms create an open doorway. Capital “A” showed leadership and red dot on “i” showed innovation.

In 2002, Airtel signed on music composer A R Rahman and changed its tune to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the most downloaded ringtone in India.

4. “ Live every moment ” to “ Express Yourself ”

Later, Airtel adopted the "Express yourself" positioning, the emotional angle was predominant – it wanted to stand out in what was becoming a highly commoditized, crowded market.

5. “ Express Yourself ” to “ Har ek friend zaroori hota hai ”

• Airtel came up with a new logo. The new logo was supposed to give Airtel and the brand a more "youthful and international" look. The acquisition of ZAIN added about 40 million subscribers from African countries. The change in logo has been done keeping in mind its synchronization with the logo of Zain.

The logo is a modern representation of the letter 'a' on a bright red background.

The unique symbol is an interpretation of the ‘a’ in Airtel. The curved shape & the gentle highlights on the red colour make it warm &

inviting,almost as if it were a living object. The colour Red shows the heritage. It is the colour of energy & passion that expresses the

dynamism that has made Airtel the success it is today, in India, and now on the global stage.

The logo is called “The Wave”.

1.5.2 Co-Branding of Airtel

Airtel made partnership with brands, it formed an alliance to work together, creating marketing synergy.

1. Bharti Airtel has entered into an agreement with browser expert Opera to offer a

customised version of Opera Mini internet browser for its mobile customers in 20

countries across Asia and Africa. The mobile phone service provider claims that this move

will make the browser available to a total of 253 million of its customers.

2. Bharti Airtel and Nokia has launched a customized version of Nokia Xpress Browser

for the Airtel customers with Nokia Asha and select Series 40 devices.  The Nokia Xpress

browser usually comes pre-loaded on Asha phones, but the new co-branded version would

offer the Airtel subscribers and enhanced experience, by providing them with one-click

access to Airtel’s premium mobile internet services and easy discoverability of rich content

on-the-go.

3. Airtel will Launch Branded 4G Smart phones at Rs. 4,000 to Counter Reliance Jio. The

company is in discussions with Chinese vendors and even held talks with Taiwan

based Foxconn, which has set up its mobile manufacturing plant in India. Airtel has

started launching 4G service across the country in a phased manner.

The object for this is to combine the strength of two brands, in order to increase the premium

consumers are willing to pay, to combine the different perceived properties associated with these

brands with a single product. Ultimately, co-branding helps both the partners as each contributes

some aspect of its brand (expertise, distribution, status, etc.) to create an offering that neither

could develop as effectively on their own.

1.5.3 Airtel Ad Campaigns

i.) A.R.Rahman Campaign

16 states, 600 million people, one service provider.

One network that connects India, like A. R Rahman moves India with his music.

Target Group: People who need wireless network, people who want to connect on the go,

people who want to be the part of the revolution of wireless communication.

This music went on to become the “Airtel Signature Tune”.

Figure 13 Airtel - A.R. Rahaman

ii.) Join The Dots Campaign

“Few relation are very important, they can’t be avoided - When relations are based

on love and affections, distance is nothing and conversation is possible - keep

connected with Airtel”.

Target Group: special relations Son, Daughter, Wife, Husband, Mother, Father ( Every

Family member).

Figure 14 Airtel-Join The Dots Campaign

iii.)Breaking The Barriers - Communication Boundaries Campaign

‘Express Yourself’ platform making the breaking of communication barriers its one of the focal points. Communication Boundaries.

“Deewarein gir jaati hain, faasle mit jaate hain, jahan do baatein ho jaati hain (Barriers break when people talk).”

Connecting cultures, longing to communicate without any barriers the society places, making new friends, caring, unity, peace, free mindedness.

Target Group: long distance relationship Son/ daughter away from home, husband away from his wife for business assignment, friends separated because of careers.

Figure 15 Airtel- Breaking The Barriers Campaign

iv.) Endless Goodbye Campaign

“A man and his girl are never apart even after they say goodbye”

With Airtel 3G video calls, you always stay close to your loved ones, no matter how far

you are.

Love-Affection-Togetherness

Target Group: people who always want to see and talk with each other.

Figure 16 Airtel- Endless Goodbyes Campaign

v.) Street Performer Campaign

“Dil Jo Chahe Pass Laye” Wherever you go, carry your entertainment with you Entertainment anywhere any day! Target Group: On the GO entertainment lovers, Demanding.

Figure 17 Airtel-Street Performer Campaign

vi.) Together Good Things Happen Campaign

The growth of Airtel is related to Shahrukh khan from its “No one to someone to stardom”, which is connected to 110 million fans.

Unity, togetherness, networking, Aspiration, chasing the dreams, relationships, success. “Life is all about experience”

“You cannot be alone when 110 million people are connected with you” Target Group: Aspirating People, close friends, people who loves networking, people

who want to be together.

Figure 18 Airtel -Together good things happen campaign

vii.) Har Ek Friend Zaroori Hota Hai Campaign

Besides entertaining one and all with its catchy jingle, the ad served to position Airtel as a brand that stands for friendship, and helps one to stay in touch with all kinds of friends.

Target Group: The advertisement campaign of Airtel “Har Ek Friend Zaroori Hota Hai” caught the today’s youth sentiments and positioning amongst the brand Airtel in the most vibrant and happening target segment.

Figure 19 Airtel - Har ek friend zaroori hota hai Campaign

viii.) Jo Tera Hai Wo Mera Hai Campaign

“Friendship is all about sharing” Picturisation: vibrant, peppy, colourful and pretty much bursting with youth, and the

upbeat mood of the ad is complemented by an anthem that has started creating quite a buzz on the digital space.

Relation, happiness, Youngsters, Masti, Cool factor, Memorable moments in friends. Target Group: Teenagers, youngsters, Tech Savvy.

Figure 20 Airtel -Jo tera hai woh mera hai Campaign

ix.) Talk All Night Long   Campaign

Airtel takes a romantic route in its latest campaign to push its unlimited internet and night calling category and narrates the tale of a soon-to-be-married young couple.

The campaign aims to promote the 'Unlimited internet and calls at night' offer under Airtel's 'Night Store' .

Target Group: Youth, Couples.

Figure 21 Airtel- Talk all night long campaign

x.) Airtel 4G Campaign

Airtel has launched the 4G campaign to position itself as the “fastest” network for data uploads/downloads.

Airtel 4G is available to customers across a range of smart devices including mobile phones, dongles, 4G hotspots and Wi-Fi dongles.

The service is available in 14 circles and 296 towns. The company has also tied up with online marketplace Flipkart to provide an Airtel 4G

sim with a 4G phone purchase with mobile giant Samsung.

Figure 22 Airtel 4G Campaign

CONCLUSION

Airtel is to be found the best service provider of network service and customer care service as well. This is one company in the industry that can be found delivering as per their customer expectations. That’s why customers have rated it not as satisfactory but excellent.

Airtel has the highest brand recall value among all its competitors. Target Market of Airtel is mainly Youth (friends, Couples, etc. ) The Point Of Difference that exists for Airtel is that it is the only telecom service

provider offering 4G Services.