group b airtel
TRANSCRIPT
-
8/4/2019 Group b Airtel
1/29
Presented By
Group B
AJAY KUMAR JHA (7003)
ROHAN KELSHIKAR (7023)NAVA KEERTHI SAGAR (7031)
M PRIYADHARSHINI (7036)
SALIM HAQUE(7041)
-
8/4/2019 Group b Airtel
2/29
TELECOM INDUSTRY
' Indian Telecom Industry' is the third largest and fastestgrowing in the world with nearly 200 million connections.
Subscriber growth rate is 45%
The wireless technologies currently in use in ' Indian Telecom
Industry ' Global System for Mobile Communications (GSM)
Code Division Multiple Access (CDMA).
There are primarily 11 GSM and 4 CDMA operators providing
mobile services in 19 telecommunication circles and 4 metrocities, covering more than 2000 towns across the country.
-
8/4/2019 Group b Airtel
3/29
Telecom Industry in India ' is regulated by 'TelecomRegulatory Authority of India' (TRAI).
Three types of players exist in ' Indian Telecom Industry ' :
State owned companies like - BSNL and MTNL.
Private Indian owned companies like - Reliance Infocommand Tata Teleservices.
Foreign invested companies likeVodafone-Essar , Bharti
Tele-Ventures, Escotel, Idea Cellular, Spice Communications
etc.
-
8/4/2019 Group b Airtel
4/29
MARKET SHARE
Group Compay wise Market Share as
on 30-6-2007
17.69%15.68%
16.96%
9.56%
8.89%
3.74%
1.75%1.44% 0.60%
23.55%
0.08%0.05%
MTNL (GSM)
BPL (GSM)
HFCL (CDMA)
SHYAM (CDMA)
AIRTEL (GSM)
RELIANCE(CDMA +GSM)BSNL (GSM)
VODAFONE - ESSAR(GSM)TATA (CDMA)
IDEA (GSM )
AIRCEL (GSM)
-
8/4/2019 Group b Airtel
5/29
BHARTI ENTERPRISES
BHARTI ENTERPRISES
Bharati
Teletech
Ltd.
Telecom
Seychelles
Ltd.
Bharti
Telecom
Ltd.
Jersey
Airtel
Ltd.
Bharti AXA
Insurance
Co. Ltd
Bharti
Telesoft
Ltd.
Field
Fresh
Foods Pvt.
Ltd.
Bharti
Retail Pvt.
Ltd.
Teletech Services
(India) Ltd. Bharti Airtel
Ltd
-
8/4/2019 Group b Airtel
6/29
BHARTI AIRTEL LIMITED
Established in June 07, 1995 as a Public Limited Company. Largest Cellular Operator in India.
Listed on Bombay Stock Exchange (BSE) & National Stock
Exchange of India Limited (NSE)
Operational Network: Provides GSM mobile services in all the 23 telecom circles in
India, and was the first private operator to have an all India
presence.
Provides broadband (DSL) and telephone services (fixed line)in 94 cities in India
-
8/4/2019 Group b Airtel
7/29
Bharti Airtel added the highest ever net addition of 53 lakh
customers in a single quarter (Q4-FY0607) and also the highestever net addition of 1.8 crore total subscribers in 2006-07
The company will invest up to $3.5 billion this fiscal (07-08) innetwork expansion.
It has an installed base of 40,000 cellsites and 59% population
coverage After the proposed network expansion, an additional 30,000
towers will result in the company achieving 70% populationcoverage
It has set a target of 125 million subscribers by 2010
Has completed 100% verification of its subscribers and in theprocess disconnected three lakh subscribers
-
8/4/2019 Group b Airtel
8/29
Mobile Services:
This unit constitutes the largest portion of the companysbusiness in terms of total revenues and customers.
The companys mobile customer base accounts for 23.5% of
the overall wireless (GSM+CDMA) market.
Broadband and Telephone Services This unit provides fixed line and broadband services over
the same copper lines.
Plans to introduce IPTV (Internet Protocol Television)
Enterprise Services :Two sub-units are Carriers : It handles long distance national & international
mobile, broadband and telephone services.
Corporates: It provides customised integrated voice and data
communications solutions to corporate customers.
STRATEGIC BUSINESS UNIT
-
8/4/2019 Group b Airtel
9/29
PERFORMANCE AT A GLANCE
Particulars Units Financial Year Ended March 31
2003 2004 2005 2006 2007
Total Customer Base (In 1000) 3,443 7,141 11,842 20,926 39,013
Mobile Services (In 1000) 3,071 6,504 10,984 19,579 37,141
Broadband and TelephoneServices (In 1000) 372 637 857 1,347 1,871
Revenue Rs. Mn 30,554 50,369 81,558 116,641 184,202
Profit After Tax Rs. Mn (2,051) 5,837 12,116 20,279 40,621
Return on Capital employed % 0.9 9.9 15.7 21.5 31.6
-
8/4/2019 Group b Airtel
10/29
ANSOFFS MODEL
MARKET PENETRATION STRATEGY(Increase Market Share)
Attract users of competitors products: Full Talktime
Convert nonusers into users:Lifetime plans to attract low
income groups Increase product usage : Easy Recharges
Increase the frequency of purchase: Recharge through ATM
; Internet based recharging through leading banks ; Products
available on Indiatimes shopping and Rediff shopping Find new applications for current users : Collaboration with
banks to facilitate fund transfer through mobile; Global Money
Transfer.
-
8/4/2019 Group b Airtel
11/29
NEW PRODUCT DEVELOPMENT
Product quality improvement strategy : Good mobilecoverage.
Product feature additions strategy :Wap Services ; EDGE
Service; Airtel Live ( Cricket news, downloads, astrology, traveletc.) ;
New product development strategy:Blackberry service.
-
8/4/2019 Group b Airtel
12/29
MARKET DEVELOPMENT
(Intensive)
Expand geographically :Entering new markets in the west
(U.K) ; Launching mobile services in Sri Lanka ; GSM license in
Bhutan
Target new segments : CallHome service for NRIs living in
USA to be in touch with their loved ones.
-
8/4/2019 Group b Airtel
13/29
DIVERSIFICATION
Broadband Services.
Telephone Services - Touchtel.
Consultancy services to industry verticals like Banking,
Financial services and Insurance, ITES, etc. to meettheir telecom needs.
-
8/4/2019 Group b Airtel
14/29
FOUR Ps
-
8/4/2019 Group b Airtel
15/29
FIVE PRODUCT LEVELS
Core Product: Communication;
Basic Product: Mobile telephony
Expected Product: Strong network coverage
Augmented Product: Caller tunes, Wallpaper, Ring tones, WAP,SMS alerts, Voice SMS
Potential Product: 3G & 4G technologies.
-
8/4/2019 Group b Airtel
16/29
PRODUCT
Product Variety:
Prepaid
Postpaid
Calling card
Value added services
Blackberry services
Business solutions
-
8/4/2019 Group b Airtel
17/29
PRICE
Easy payment options. Anytime Anywhere
Easy billing
Flexible Credit limit
Happy recharge ( full talktime everytime)
-
8/4/2019 Group b Airtel
18/29
PLACE
Operating in 23 circles in India
Strong distribution network with approximately
160,000 family of retailers
Over 500 exclusive outlets
Operation in foreign countries
-
8/4/2019 Group b Airtel
19/29
PROMOTION
Setting up of exclusive stalls in public places to attractcustomers, promote existing and new products.
Lowering of tariffs
Loyalty rewards
Special season( festivals) offers Talk time schemes with attractive offers
Celebrity endorsements
Innovative advertisement campaigns
Mass promotion campaigns
Corporate Social Responsibility: Satya Bharti Schoolproviding primary education for underprivileged
children in rural areas.
-
8/4/2019 Group b Airtel
20/29
-
8/4/2019 Group b Airtel
21/29
SEGMENTATION
Geographic Segmentation : 23 telecom circles (different tariff
for different circles)
Demographic Segmentation :
Age : Senior citizen.
Gender : Women.
Occupation : Students ( Youth Plan) , Corporate .
Income: All income groups ( Different plans for various
income groups)
-
8/4/2019 Group b Airtel
22/29
Airtel is positioned as a mass brand which even a chaiwala can
own (as highlighted in one of their communications). Airtel positions itself in the market as a very reliable, effective
and consumer savvy brand Positioning as a brand which people can trust in terms of quality
and performances
Plans to position itself as complete telecom service provider with
a strong presence in global network
POSITIONING
-
8/4/2019 Group b Airtel
23/29
Suppliers(supplier power)
EricssonGSM
Network
Management
Service Provider
Industry
CompetitorsHutch,BSNL, Idea, MTNL,
Tata Indicom, Reliance
Substitutes
CDMA technology,
Internet messengers,
Net-to-Phone
Potential entrants
-Entry of Global Telecom
providers
Buyers
Loyalty shift.
FIVE FORCE ANALYSIS
-
8/4/2019 Group b Airtel
24/29
COMPETITORHUTCH
Hutch is the second largest cellular operator in India in terms ofrevenue.
Operates in 16 telecom circles.
Subscriber base : 26.73 Million.
Market share : 16.96% of the GSM market.
Highest average revenue per user in industry.
With tagline wherever you go, out network follows you., it
positions itself as a brand with high quality network and value-
added services.
Vodafone has acquired a 67% of holding in Hutch-Essar for
US$11.1 billion
-
8/4/2019 Group b Airtel
25/29
Prepaid
Postpaid
Calling Cards
HandyPhone Hutch PCO
Hutch World (GPRS service)
Hutch services on mobile
PlanetHutch services Mobile E-mail solutions
SERVICE PORTFOLIO
-
8/4/2019 Group b Airtel
26/29
AIRTEL vs HUTCH
(Revenue Comparison)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
FY - 2005-06 FY 2006-07
Year
Revenue(in
Crore)
Airtel Hutch
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
FY - 2005-06 FY 2006-07
Year
Revenue(inC
rore)
Airtel Hutch
11291
17888
6837
10565
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
FY - 2005-06 FY 2006-07
Year
Revenue(in
Crore)
Airtel Hutch
-
8/4/2019 Group b Airtel
27/29
RECOMMENDATIONS
Prepaid Customers account for 88.5% of the total customers. So,
Airtel should try to convert prepaid customers to postpaid.
Non-Voice revenue (SMS, voice mail, call management, hello
tunes and Airtel Live) constitute only 10% of total revenues. So,efforts should be made to increase the revenue from non-voice
sources.
Airtel should consider acquisition of domestic and local GSM
service providers, thereby increasing its market share. E.g. ,acquisition of Spice.
Airtel should also consider acquisition of local CDMA service
providers to get in the CDMA technology and build its
competency. Eg. Shyam, HFCL.
-
8/4/2019 Group b Airtel
28/29
It has to be quick to adapt to and bring new emergingtechnologies like 3G and 4G in India at affordable cost.
It should start Mobile Bill Payment Van services.
It should expand its rural network coverage to widen its
customer base. It should put more focus on entering into new countries and
establishing itself as a global brand.
-
8/4/2019 Group b Airtel
29/29
THANK YOU