Positioning (And Repositioning)

PRESENTED BY – ABHAYA PGFB0901 DEEPSHIKHA PGFB0915 GARIMA PGFB0917 PRAGYA PGFB0929 ANUPAM PGFB0954

OF

QUIZ TIME!!!!!!!!

QUES1-In which year did Sunil Bharti Mittal entered in Telecom business?

ANS- 1985

QUES 2-What was the name of the tarrif plan introduced to attract youth?

ANS-YOUTOPIA

QUES 3-For how many years did Bharti won the “Techis Award”?

ANS-FOUR CONSECUTIVE YEARS

QUES 4-Who was the nearest competitor of Airtel?

ANS-ESSAR

QUES 5: Where did the company opened its first showroom?

ANS-DELHI

LOGO OF “AIRTEL”

The History of Cellular Industry

• Concept of cellular phones originated in 1947 in the US

• Mainly two types of services offered-post-paid and prepaid

• Concept introduced in India in 1992

• Late 1990s many national and international companies entered cellular industry

• In 1999 prepaid cards were also launched

• In 2000 all leading players focused on their marketing and positioning strategy to expand their reach.

Sunil Bharti Mittal (Chairman & MD, BhARTI MITTAL)

Airtel’s Background :

• Foundation laid by Sunil Bharti Mittal in New Delhi in the 1970s which dealt with business of small bicycle parts

• Entered telecom business by establishing Bharti Telecom Ltd. (BTL) in 1985 that manufactured telephonic equipment

• Collaboration with Siemens AG (Germany) for manufacture of Electronic Push Button Telephones and with Takacom Corporation (Japan) for manufacture of Answering Machines.

• BTL entered the telecom industry during early 1990s

• Operations of Bharti Tele-Ventures run by four subsidiaries:

- Bharti Cellular Ltd. (Cellular)

- Bharti Telenet Ltd. (Access)

- Bharti Telesonic Ltd. (Long Distance)

- Bharti Broadband Networks Ltd. (Broadband solutions)

• Invested heavily in the acquisitions and alliances in order to expand cellular market in India in the early 2000s.

Airtel’s Background (cont…)

Airtel’s Background (cont…)

• Acquired JT Mobile, Sky Cell & Spice Cell.

• Collaboration with BPL

• The Birth of Airtel-a post paid cellular service in New Delhi

( Nov 1995)

• Refined services possible due to

Innovative marketing strategies

Technological up gradation

Value added service offering

Efficient Customer service

Airtel as a “INITIATOR”

• First cellular operator to set up cellular showrooms-

“Airtel Connect- One stop cellular shop ” in Delhi in late-1995

• First to install a second mobile switching center in 1997

• First to provide roaming cellular services.

• First to choose one of country’s most successful music composers as promoter.

• First to launch an online e-commerce.

• Provided information about features of handsets of various companies with their prices.

•As a result of such initiatives, Airtel was named the “BEST CELLULAR SERVICE” in India in 1990s.

•Won the “Techies” award from 1997 to 2000 continuously.

PRODUCT INNOVATIONS….

•A. R. Rahman

•Introduced as a brand ambassador in 2002

•Composed the signature Airtel tune

• Customers increased from 2 million to 90 million

• First time agreed to do a television commercial

• Was paid 10 million for the Airtel campaign

BRAND AMBASSADER OF AIRTEL

Obstacles:

• High Tariff Rates charged by Government

• Rates were high as Rs.16 per minute against 1.20 for landline communication.

• Only Premium Sector could afford the rates.

• Aimed at elite class of the society, thus limiting its market.

• International players ‘Orange’ as well as domestic players entered into segment , rising competition.

• Focus on the value proposition .

• Essar, nearest competitor offered tariff plans same as Airtel

Positioning Airtel

• Launching of a campaign “Leadership Series” aiming to position Airtel as an aspirational brand.

• Tagline “Power to keep in touch”

• Positioned in premium category aimed at elite class of society

• Airtel decided that the brand should always connote leadership ,be it in network, innovations or services

•Because of the successful campaign, Airtel became the leading cellular player with a subscriber base of 0.38 million by 1999 in Delhi.•In early 2000s, Airtel conducted many brand tracking exercises.•Brand had become like Lufthansa- “cold and efficient” and as Singapore Airlines- “efficient but also human”

Positioning as Aspirational Brand :

Leadership Series 3 CORE BENEFITS PEOPLE ASSOCIATED WITH IT

Leadership

Performance

Dynamism

Other values : Courtesy, politeness, efficiency etc.

Repositioning begins……….

• Bharti created a new logo for AIRTEL brand having red, white and black colors with ‘AIRTEL’ enwrapped in an eclipse.

Continued…….

•Realised Customer Relationship and decided to humanize the Airtel Brand.•Bharti launched its new “Touch Tomorrow” aiming at strengthening its relationship with customers•Spent high amount in advertisement approx 450 million•New campaign highlighted relationship angle more softer and more sensitive.•Added a new dimension of features like roaming, sms, net, communication beyond voice to data and video.

•ADVERTISEMENTS SHOWED CELLULAR PHONE USERS SURROUNDED USERS SURROUNDED BY CARING FAMILY MEMBERS.

•RELATIONSHIP ANGEL HIGHLIGHTED BY MAKING BRAND AIRTEL-SOFTER & SENSITIVE(AN EXAMPLE OF PSHYCOGRAPHIC SEGMENTATION)

ITS GREAT NETWORKING

Efforts made after the launching the new logo

Campaign first rolled

Karnataka, Madhya Pradesh, Himachal Pradesh and Chennai

Shift of audiences From SEC to SEC B

Touch point network

Increased shop in Shop points at Departmental Stores and life styles Establishments

Continued…….•Bharti revamped the entire Airtel network including Airtel centres.

• Changed the color schemes to give soothing, soft and classy look.

• Changed the dress code of the outlets.

Men White shirt, black trousers and Airtel logo with a red tie

Women Red tops, black trousers with ivory and schiffon scarves

• Announced a major brand restructuring exercises at corporate level.

•Facilitated its entry into telecom centres and established itself as a global telecom brand.

Bharti’s Three Tier Architecture

• First Tier Second Tier Third Tier

•Airtel (Mother Brand)

•Airtel Basic Telephone Services

•Airtel National Long Distance Services

•Airtel Broadband Services

•Airtel Mobile Services

•Airtel Free net

•Airtel Long Distance

•Airtel Tango (Internet Mobile)

Brand ideology

• Services brought under Touchtel Brand and the National long Distance Telephony under “IndiaOne” Brand .

• Created new brands inspite of high cost example- “Bharti brand and Magic( the prepaid cellular brand)”

• Internet interface services offered to cellular users brought under brand name ‘Tango’, not successful due to limited facility and inefficiency of WAP services.

• Introduced YOUTOPIA-a tariffs plan for attracting youth, offered lower rates at night (at Re. 0.25 for 30 seconds)-DEMOGRAPHIC SEGMENTATION• Announced other services such as music download facilities and short messaging services (sms) at affordable prices.• Strategies paid back well and became leading player across the country.

REPOSITIONING “AIRTEL” ONCE AGAIN

• “The Airtel and Touch Tomorrow campaign” became very popular so to Surprise the market Bharti took the decision to withdraw its campaign in 2002

• To give Airtel a younger look ,a new logo was introduced- symbolizing innovation,energy and friendship.

CONTD…….

• Replaced three-tier with two tier architecture under two heads –Wired and Wireless

• Wireless product included Tango,Freenet and Magic

• Objective to establish Bharti as a “Global Telecom Company”

• As said by Bharti –Airtel’s brand identity and campaign will have a new younger and international look.

• According to Cellular Operator Association Of India(COAI) report, the Cellular market in india was one of the fastest growing market.

TIME PERIOD SUBSCRIBERS

EARLIER 8.17 MILLION

2003 12 MILLION

2008 120 MILLION

CONTD…….

• Focused on positioning, advertising and promotional efforts and on building strategic partnership

• Made efforts to retain its position in the market.

• The shift to “Live Every Moment” from “Touch Tomorrow” proved that Bharti is consistently on the lookout for best marketing strategies for Airtel.

Creating Brand Recognition~

Bharti associated celebrities

with its brand Airtel.

Aim was to retain its position as the Market Leader.

Result- A Loyal Customer Base!!!

CELEBS CONNECTED WITH AIRTEL………..

LAUNCH OF DIGITAL TV

Type Bharti Airtel Subsidiary

Founded 2008

Headquarters India, Mumbai, India

Area served All over india

Key people Sunil Mittal

Industry DTH Pay TV

Products Direct Broadcast Satellite

Parent Bharti Airtel

Subsidiaries Bharti Telemedia Ltd

PARTICIPATION IN EVENTS…….

First mover advantage/ product innovations

Services provided :

Few recent recognitions

LAUNCH OF i-PHONE

The i-PHONE

The most sought after Multi-utility device : a combo of mobile telephony, internet browser, play station, and lotsMore : launched in India by Airtel & Vodafone! Apple’s i-phone is the latest craze in the country and has become a hit with teenagers & youth!

COMPETITORS OF AIRTEL

BSNL

Industries Where Bharat Sanchar Nigam (BSNL) Competes

Telecommunications Services •Fixed-line Voice Services Providers (primary) •Data Services•Teleconferencing Services Providers•Telemetry & Telematics Services Providers•Wireless Communications Services

Chaiman and Managing Director Kuldeep Goyal

IDEA

Industries Where Aditya Birla Management Competes

•Metals & Mining •Aluminum Production

•Chemicals•Computer Services•Construction•Consumer Products Manufacturers

Chairman Kumar Mangalam Birla

TATA

Industries Where Tata Communications Competes

Telecommunications Services • Fixed-line Voice Services Providers

Long-distance Carriers (primary) • Data Services

Internet & Online Services Providers Managed Network Services

RECENT FACTS AND FIGURES

•Bharti Airtel added the highest ever net addition of 5.3 million customers in a single quarter (Q4-FY0607) and also the highest ever net addition of 18 million total subscribers in 2006-07 •The company will invest up to $3.5 billion this fiscal (07-08) in network expansion. •It has an installed base of 40,000 cellsites and 59% population coverage •It has set a target of 125 million subscribers by 2010 •Prepaid customers account for 88.5% of Bharti’s total subscriber base, an increase from 82.7% a year ago

VISION :

Most admired brand in India

by 2010

Loved by more customers

Targeted by Top Talent

Benchmarked by more

businesses

Horizon : 2010

PUBLIC OPINION…………

Ques1: If given any option, which one of these would you like to go for?

Ques2: Which of the Airtel Service you use the most?

Ques3: Would you suggest your friend to go for Airtel?

Ques4: What makes it different from its competitors?

Ques5: Are you satisfied with the service provided by Airtel?

Question 1:

•Examine the circumstances in which Bharti launched Airtel and trace the brand’s initial days in the backdrop of the emerging cellular telephony market in India. In the light of the ‘ Leadership Campaign ‘, analyze why Airtel and other cellphone brands were seen as premium end offerings.

Answer 1:

•When Bharti launched Airtel in the Indian telephony market in the year 1995, the cellular market was just emerging. The circumstances in which the launch was made were-

• lack of domestic competition

• lack of competition from foreign players

• high tariff rates set by the government

• lack of awareness among customers regarding mobile phone usage

Answer (contd).

• In the light of the ‘Leadership Campaign’ , Airtel and other brands were regarded as premium end offerings because :

On one hand where landline rate was Rs 1.20, the airtime rate for Airtel was Rs 16 ( due to the prevalent high tariff rates charged by the govt.). This led to the automatic positioning of Airtel as a PREMIUM brand.

Moreover, the Leadership Campaign ( which was initiated to strengthen its customer base ), which featured successful men & women with their deluxe cars, carrying laptops & using cell phones , further strengthened Airtel’s existing Position as a premium end offering.

Question 2:

•Explain the reasons behind the ‘Leadership Campaign’ being replaced by the ‘Touch Tomorrow’ Campaign. Also critically comment on the company’s decision to replace ‘Touch Tomorrow’ with ‘Live Every Moment’.

Answer 2 :

• ‘Leadership Campaign’ ‘Touch Tomorrow’ Campaign

REASONS:

1.Customers didn’t get emotionally connected to the brand as the brand was perceived as distant & cold.

2. Leaders were now perceived as those who worked in a team & not those who dictated terms to their subordinates.

3. In the face of competition from other cellular operators, government reduced tariff rates , which further lead Bharti to bring in innovative strategies to pull in more customers.

Answer ( contd ).

• ‘Touch Tomorrow’ ‘Live Every Moment’

REASONS :

1. Bharti wanted to give its brand Airtel a younger look and simultaneously created a new logo which symbolized innovation, energy, & friendliness.

2. Bharti wanted to make foray in the international telecom market as a global telecom company , therefore underwent a complete change in its brand architecture, i.e. from a 3 tier architecture to a 2 tier architecture of wired & wireless telephony.

Answer ( contd ).

•Thus, Bharti’s motive behind the repositionings were to make its brand Airtel more user- friendly, and give more services to customers at reasonable rates.

• And the result of customer-satisfaction would mean maintaining its position in the cellular industry as the market leader.

Question 3:

•Do you think Bharti has not been giving enough time for one positioning plan to be effective before moving on to the next? What are the merits and demerits of frequently changing a brand’s positioning?

Answer 3 :• Leadership Campaign Touch Tomorrow

(AUG,2000)

• Touch Tomorrow Live Every Moment ( 2002 )

Bharti has taken ample time before moving on to a new positioning plan :

a.It has analyzed the consumer psyche.

b. Market competition was taken into consideration.

c. Re-positioning also enabled Bharti to enter the international market.

d. To cope with the technological changes, repositioning was essential.

Answer (contd).

• When a brand’s positioning is frequently changed:

MERITS:

It creates consumer awareness regarding the usage of the brand.

It gives the brand a competitive edge over its competitors as it tries to retain old and attract new customers with its new positioning.

DEMERITS:

The customer gets confused regarding what the brand actually wants to convey!

Market may perceive the brand as unstable.

Question 4:

• In the light of the intensifying competition in the Indian cellular telephony market, and the fact that almost all players have begun focussing strongly on the marketing front, what should Bharti do to ensure that it retains its market leadership position?

Answer 4 :

• To retain its numero uno position in the cellular market, Bharti may follow the following steps:

Build better network all over the country.

Reduce tariff rates (esp. for STD calls).

Provide some special packages for ISD calls.

Improve Internet services (esp. Internet speed).

Stop unwanted promotional calls.

Ensure immediate feedback to customer problems & queries (i.e. improving its Customer Care service).

Thus, by consistently working out on the best marketing strategies for Airtel, Bharti can fearlessly enjoy its position as the Market Leader!