airtel reliance final
TRANSCRIPT
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Evolution of Telecom In India
Go-ahead to the CDMA technology
IND
IA
Private players were allowed in Value Added Services
National Telecom Policy (NTP) was formulated
1992
1994
1997
Independent regulator, TRAI, was established
NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime
1999
2000
2002
BSNL was established by DoT
ILD services was opened to competition
Internet telephony initiated
Reduction of licence fees
2003
Calling Party Pays (CPP) was implemented
Unified Access Licensing (UASL) regime was introduced
Reference Interconnect order was issued
2004
Intra-circle merger guidelines were established
Broadband policy 2004 was formulated—targeting 20 million subscribers by 2010
2005
FDI limit was increased from 49 to 74 percent
Attempted to boost Rural telephony
2006
Number portability was proposed (pending)
Decision on 3G services (awaited)
2007
Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.
ILD – International Long Distance
Number portability approved
2009
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Demand for VAS & Broadband services Among Youth
28 % Urban Population
Rapid Urbanization
Rising Income level
Changing Demographics
Source: Mckinsey Report
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CDMA – Already there are big players in this segment Reliance , Tata
3G – Value added services potential still to be tapped fully
2G/3G – GSM Currently commands 70% of mobile subscribers in India
Technologies
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• Pradeep (09020242026)• Govindrajan (09020242049)
• Pritam Bhattacharya (09020242050)
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Vision 2010
• By 2010 Airtel will be the most admired brand in India:– Loved by more customers– Targeted by top talent–Benchmarked by more businesses
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Vision 2020
• To build India's finest business conglomerate by 2020
• Supporting education of underprivileged children through Bharti Foundation
• Strategic Intent:– To create a conglomerate of the future by bringing
about “Big Transformations through Brave Actions.”
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Mission
• “ We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”
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VISION
“We will leverage our strengths to execute complex global-scale
projects to facilitate leading-edge information and communication
services affordable to all individual consumers and businesses in
India.
We will offer unparalleled value to create customer delight and
enhance business productivity.
We will also generate value for our capabilities beyond Indian
borders and enable millions of India's knowledge workers to deliver
their services globally.”
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MISSION
To attain global best practices and become a world-class communication service provider-guided by its purpose to move towards greater degree of sophistication and maturity.
To consistently achieve high growth with the highest levels of productivity.
To be a technology driven, efficient and financially sound organisation.
To contribute towards community development and nation building.
To encourage ideas, talents and value systems.
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Core Values of AirTel
• Performance
• Dynamism
• Leadership
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Core Values of Reliance
• Customer first
• Operate with honesty and integrity
• Treat every individual with dignity and respect
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TARGETING
• Elite• Up market professionals• Entrepreneur with business plans• Low income mass category• Youth• Women and senior citizens by post paid
connection
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TARGETING
• Lower-middle, Middle & Upper class• Rural areas• Entrepreneur with business plans• Low income mass category• Women and senior citizens by post paid connection
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POSITIONING
• “Power to keep in touch”• “Touch tomorrow”• “Live every moment”• “Express yourself”
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TIME LINE
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“Power to keep in touch”
• Positioned in premium category aimed at elite class of
society
• Convey power of instant communication
• Perception of aspirational and lifestyle brand
• Airtel decided that the brand should always connote
leadership–be it in network, innovations, offerings,
services
• Sponsored games like Golf
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“Touch tomorrow”• New campaign launched to facilitate entry into new markets
• Started to capture mass market
• A new logo for Airtel- Red , black and white colors with ‘Airtel’
enwrapped in an eclipse.
• Logo indicated core value of the brand: leadership,
performance and dynamism
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“Live every moment”
• Launched to capture the imagination of the customer
• Projects a persons desire to spontaneously communicate through words, emotions, sights, sounds, thoughts and actions over boundaries, distances and geographies
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“Express Yourself”
• In 2003, Airtel repositioned its brand with “Express yourself” campaign
• Changed its logo to give more energetic and younger look
• Highlight capability of Airtel’s performance and network coverage
• Launched in regional language
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TIME LINE
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First Mover Advantage
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First Mover Advantage
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RURAL STRATEGIES
• Airtel follows “Match-box strategy”• The firm expands regularly in Bihar,
piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards
• Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2009
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RURAL STRATEGIES
• Reliance follows “Post-card strategy”• Covers over 4,50,000 villages and
hopes to expand to other 1,00,000 by 2015
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AIRTEL ADVERTISEMENT
• Airtel basically uses two appeal to connect to the users– Emotional– Humorous
• Total advertising budget of Airtel is Rs. 150
crore
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RELIANCE ADVERTISEMENT
• Reliance basically uses two appeal to connect to the users― Patriotism― Emotions
• Total advertising budget of Reliance is Rs.
130 crore
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The Ad diagnostics score helps to understand how far the Ad has been able to break the clutter
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INTERNET ADVERTISING
• Massive advertising through– Google AdSense– BidVertisers
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INTERNET ADVERTISING
•Massive advertising through―Google AdSense―Microsoft adCenter
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PUBLICITY AND EVENTS
Sponsored events• Delhi half marathon• Delhi golf tournamentSponsored TV shows• Big Boss• KBC• Indian Idol
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PUBLICITY AND EVENTS
•Sponsored events
― IPL
― World Cup Cricket
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OUTCOME OF THE CAMPAIGN
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SWOT
Strengths• Largest Telecom Player in India -
~80Mn, 22.6%
• Market Leader
• Strong Leadership – Sunil Bharti
Mittal
• Recognized Globally
• Pan India Presence
• Strong Financials
• Strong Brand Image – Marketing
Team
Weakness• Outsourcing of Core Systems
• Network Coverage (earlier)
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SWOT
Opportunities
• Bharti Infratel – Cutting Down cost
in Rural area
• Match Box Strategy – Scale of
Penetration
• Current Tele-Density – 30.6 is still
low among developing countries
• Low Broadband Penetration, Rural
Telephoney
Threats
• India centric – Major revenues
from India
• Falling ARPU & AMOU
• Intense Competition & Shortage
of Bandwidth
• New Players coming in India
• Uncertain Economic conditions
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SWOT
Strength
Low Entry Cost
Commission Structure
Fast Activation
Process
Network
Connectivity
Data GPRS
Weakness
Branding Image
Distribution problem
Limited product
portfolio- Only Mobile
Lack of Competitive
Strength
Limited Budget
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SWOT
Opportunity
Preference of GSM over
CDMA
New Specialist application
Rural Telephony
New Market, Vertical,
Horizontal
Competitors`
Vulnerabilities
Threat
Political destabilization.
New Entrants
IT Development
Market Demand
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AIRTEL STRATEGY
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Airtel – Strategy
MANTRA : Focus on Core Competencies and Outsource the rest!
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Strategy
• Partner with leading players in telecommunication across the globe.
• Managed to work with the best of domain specialists globally and emerge as a world class entity.
• Operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.
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Outsourcing deals in 2004
• Ericsson was given the mandate to provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles.
• IBM was given the mandate to handle the back office requirements of Airtel’s presence in India
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RELIANCE STRATEGY
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Reliance – Strategy
MANTRA : To reduce the cost to the consumer, thus focusing on a market driven by volume!
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Strategy
•Customer Generation - Tapping in to Internal
Resources
•Dhirubhai Ambani Entrepreneurship Programme – A
New Way to Market
•Advertising – Educating Masses and Evoking
Passions
•RWorld – Reliance Way of Putting the World in Your
Hands
•Product Innovations - Connecting with Every
Section of Society
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FUTURE STRATEGIES
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Future Strategies
• Translate its expertise in Indian markets to other emerging economies.
• This could call for acquisitions globally.• Technology leadership is a must – Airtel must
ensure that its reliance on GSM technology does not render it obsolete.
• Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.
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FUTURE STRATEGIES
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Future Strategy
•An enterprise Netway revolution will bring the
possibility to provide broadbandexperience to every
desktop
• A convergence revolution will provide high-speed
networks to millions of homes
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Road Map – Growth Path
VPN & VoIP
WiMAX
3G
2G/2.5G