Name:-Fairyann. A. Vincent - STD:-MMS - 1 Year - Roll Number: - 11 - SUBJECT: - Marketing - Topic: - Airetel Marketing Plan
Name:-Fairyann. A. Vincent - STD:-MMS - 1 Year - Roll Number: - 11 - SUBJECT: - Marketing - Topic: - Airetel Marketing Plan
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Bharti Airtel
Largest Private Integrated Telecom Company in India 3rd Largest Wireless Operator in the World Largest & Fastest Growing Wireless Operator in India Largest Telecom Company listed on Indian Stock Exchange
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Enterprise Services
Carrier Corporate
Telemedia Services
Fixed Line Broadband DTH
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Financials Snapshot
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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
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.
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
Core Values
Empowering People - to do their best Being Flexible - to adapt to the changing environment and evolving customer needs Making it Happen - by striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit Openness and transparency - with an innate desire to do good Creating Positive Impact with a desire to create a meaningful difference in society.
Objectives/Goals
To undertake transformational projects that have a positive impact on the society and contribute to the nation building process. To Diversify into new businesses in agriculture, financial services and retail business with world-class partners To lay the foundation for building a conglomerate of future
23 Circles - 4 Categories ( Metro, A, B & C) Bharti Airtel Largest player with presence in 23 Circles
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Telecom Advantage
2. 22
2. 2 22 2 2 2 2 2 2 2 2
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40.4% CAGR
2 2
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INDIA
2002
2007 2006
1992
NTP-99 led to migration from high-cost fixed license fee to lowcost revenue sharing regime
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Telecom Ecosystem
Indian Telecom Industry Framework
Indian Government Bodies
Independent Bodies
They formulate various policies and pass laws to regulate the telecom industry in India.
Wireless Planning and Coordination (WPC) Department of Telecommunica tions
They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India. Telecom Regulatory Authority of India (TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Independent regulatory body
Telecom Commissi on
Group on Telecom and IT (GoT-IT)
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Regulatory Framework
74% FDI Investment Lack of Transparency in Spectrum & License Allocation 3G Policy & MNP still Pending
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Economic Factors
GDP growth rate - Averaged around 7.9 % from 20022008 Rising Tele-density Target of 45% by 2010 Growing per capita income/disposable Income Rs 12000 in 2002 to Rs 33000 in 2008) Falling Handset Prices Moderate inflation levels which were prevalent during the past 7 years around 5-6%
Changing Demographics
Demand for VAS & Broadband services Among Youth 28 % Urban Population Rapid Urbanization Rising Income level
Source: Mckinsey Report
Technology
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
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Porters 5 Forces
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HIGH
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Competitor Analysis
OP Margin Net Margin Sep-07 Sep-08 SepSep072 083 43.00% 38.00% 26.40% 19.30% 37.90% 31.60% 23.90% 13.20% 32.80% 26.60% 14.10% 6.50% 23.70% 22.90% 7.00% 6.80%
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India China
22 2
Russia
2 2
Despite a low teledensity of approximately 19 percent, India has the second highest minutes of usage per month. This offers huge growth opportunity to telecom companies.
The declining ARPU implies that India Inc. is tapping a large market at the bottom of the pyramid by reducing tariffs; thereby, enhancing affordability.
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Market Scenario
Postpaid Vs Prepaid Customers & Market Share
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LOW
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4. Threat of Substitutes
Landline CDMA Video Conferencing VOIP - Skype, Gtalk, Yahoo Messenger e-Mail & Social Networking Websites
BROADBAND SERVICES
DIMINISHING MARKET HIGH
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SWOT
Strengths Largest Telecom Player in India - ~80Mn, 22.6% Strategic Alliance with other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia and Sing Tel Pan India Presence Strong Financials Weakness Outsourcing of Core Systems Lack of emerging market investment opportunity
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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
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LOW
HIGH
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LOW
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GE Matrix Classification
Business Strength
Medium Strong High Weak
5.00
Market Attractiveness
Medium
3.67
2.33
Low
5.00
3.67
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2.33
1.0033
Business Strength
Current market share Brand image Brand equity Production capacity Corporate image Profit margins relative to competitors R & D performance Managerial personal Promotional effectiveness
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Resource availability Overall market size Annual Market growth rate Profitability Competitive intensity Technological requirements
Total
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Market share New product development Brand Image Sales force Pricing Distribution capacity Product quality R&D Performance
Total
Airtels GE Matrix
High High
Business Strengths
Airtel Enterpri se
Low 5.00
Attractive
Mobile
Market Attractiveness
3.67 TeleMed ia
Moderate Attractive
2.33
Unattractive
3.67
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Low 5.00
2.33
1.00
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Airtel Strategy
MANTRA : Focus on Core Competencies and Outsource the rest!
Strategy
Airtel partnered with leading players in telecommunication players across the globe. It has managed to work with the best of domain specialists globally and emerge as a world class entity. Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.
Warburg Pincus a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages. Vodafone was a strategic investor in Airtel. Temasek the Singapore based investor holds a considerable stake in it.
Operational Strategies.
Higher emphasis on ARPU/min stark contrast with other operators who concentrate on ARPU only. Aim to be become a one stop shop for all telecommunication services under the Bharti umbrella. Exploring opportunities in international markets. Hived off tower infrastructure into a separate entity.
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.
Growth Factors
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WiMAX
3G
2G/2.5G
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Airtel - Strategy
References
Bharti Airtel, Annual Report -2008 Investors presentation, Bharti Airtel Limited, November 2008 Telecommunication Services, Indian Industry: A Monthly Review, CMIE November 2008 Analyst Report Bharti Airtel, Asit C. Mehta Invesment Intermediates Ltd. Telecommunication Sector Report March 2008, CRISIL Capitaline Database http://capitaline.com Indian Telecommunication Sector - August 2007, IBEF Report Next Big Spenders Indian Middle Class, Businessweek
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THANK YOU !!
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