airtel finn cial analysis marketing strategy
TRANSCRIPT
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GRAND PROJECT REPORT
ON
BHARTI AIRTEL LIMITED
SUBMITTED BY;-
Piyush Gaur
CONTENTS
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Executive Summary 3
Intr!uctin "#$
HistoryChange in Brand Logo &
TaglinesO%&ective' (
Mission
Company Overview
Subsidiary Company )*
Or+ani'atin Structure )*
Strate+ic Bu'ine'' ,nit )-
Mar.et S/are 0 Airte1
)-#
)"
Subscriber Trend & Growth
Competitors
Bu'ine'' Partner' 2 Partner' R1e )"
Mar.etin+ Mix )
4a1ue C/ain Strate+y )(
5inancia1 Ana1y'i'-*#-6
Company's Revenue
Company's or!ing Capital"nalysisCompany's "dvertisement#$penditureRevenue %rom alue "ddedservices
Mar.etin+ Ana1y'i'-6#-(
orters generic Strategy
BCG (atri$)*+orce (odel
S,T "nalysis
A7ar!' 2 Rec+nitin' 3*
Research Methodology 3*
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E8EC,TI4E S,MMAR9
This report on Bharti "irtel is done to -nd out certain ob.ective
regarding the strategic approach adopted by "irtel to stand
strongly in the competitive Telecom mar!et/ "irtel mar!etingstrategy analysis is done using various models li!e orters generic
Strategy0 BCG (atri$0 )*+orce (odel & S,T "nalysis o% "irtel
etc/
"lso the detailed study o% +inancial osition o% Company is done to
-nd out its position in (ar!et/ The study includes Revenue
"nalysis0 or!ing Capital "nalysis0 "sset turnover ratio o% "irtel0 &
its e$penditure on "dvertisement as a percentage o% Sales in
recent period/
The report gives in%ormation about how "irtel ad.usted itsel% in
changing mar!et conditions0 what are the various strategies it
ta!es to become 1ndia2s 3stcompany by Subscriber & Revenue/
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INTROD,CTION
Bharti "irtel Limited %ormerly !nown as Bharti Tele*entures LT4
5BTL6 is an 1ndian company o7ering telecommunication services
in 38 countries/ 1t is the largest cellular service provider in 1ndia0
with more than 393 million subscriptions as o% "ugust :;3;/
Bharti "irtel is the world's third largest0 single*country mobile
operator and -%th largest telecom operator in the world with asubscriber base o% over 3
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HISTOR9 O5 AIRTEL
Bharti Cellular launched cellular services '"1RT#L> in 4elhi in
388)0Himachal radesh in 388?0 @arnata!a and "ndhra radesh circles
in 3888
1n 388
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"irtel provides S(S %acilities to hearing impaired in Chennai5:;;F6
1n :;;F0 "irtel Subscribers e$ceed F million mar!/
1n :;;90 Bharti Cellular entered into license agreements to provide
cellular services in = new circles including Ittar radesh 5#ast60 estBengal & "ndaman icobar0 ,rissa0 Bihar and Jammu & @ashmir/
Same year "irtel launches GRS services %or pre*paid customers/
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+ollowing are the reasons %or change in Tagline o% "irtel
:P7er t .ee; in Tuc/
** This was the -rst time " R Rehman had agreed to wor! %or any
brand0 anywhere in the world/ The music %rom the commercial
became the most downloaded ring tone in the history o%
telecommunications/
** Tagline denotes that each and every person in 1ndia live every
moment 5emotions0 %eelings etc/6 o% the li%e with "irtel/
REASONS 5OR CHANGE=
** Redi7ussion 4D&R0 which is the ad agency that too! charge o%
revamping "irtel's brand image again changed the tagline to give
better tagline to "irtel which catches some emotional appeal/
:Ex;re'' yur'e10
** >#$press yoursel%' was success%ully launched ta!ing the
ownership o% the entire space o% communication and
strengthening the emotional bond "irtel en.oys with its customers
** The masterminds behind the '#$press Doursel%' campaign are
the .oint vice*presidents (r/ rashant Godbole and arwan atel/
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** "irtel is a mar!et leader in the cellular networ! and they wanted
a very %resh and contemporary idea to build a brand image which
their customers could identi%yM/
4i'in* By end o% :;3; to be loved by more customers &
Benchmar! by more businesses/
Mi''in*To provides #rror %ree & cost e7ective service deliverywith 1nnovative products & Services to the customers/
4a1ue'# e will always put our customers -rst/ e will alwaystrust and respect each other/ e will respect our associates as we
respect each other/ e will wor! together through a process o%
continuous improvement/
COMPAN9 O4ER4IE
Globally0 Bharti "irtel is the Frd largest in*country mobile
operator by subscriber base0 behind China (obile and China
Inicom/
1n 1ndia "irtel is o/ 3 by subscriber base and revenue/
Bharti "irtel %ormerly !nown as Bharti Tele*ventures Limited
5BTL6 is a J between Singtel and Bharti Telecom/
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1ndia2s +irst Telecom Company that provides telecom
services in all the circles/
The company also has a submarine cable landing station at
Chennai0 which connects the submarine cable connectingChennai and Singapore/
S,BSIDIAR9 COMPANIES
Bharti He$acom
Bharti Comtel
Bharti "Euanet
Bharti Broadband
Bharti 1n%ratel
Bharti Telemedia
Bharti "irtel 5I@0 IS"0 Canada0 Hong!ong0 IS"0 Lan!a6
,RG"1S"T1, STRICTIR#
http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Singapore -
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CMD' 5un!er Pr1eF#
Suni1 B/arti Mitta1
He started his career at a young age o% 3< a%ter graduating
%rom un.ab Iniversity in 1ndia and then he %ounded Bharti/
Chairman & (anaging 4irector
since ,ctober :;;3
"ge 98 years
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Today0 at 980 he heads a success%ul enterprise0 amongst the
top ) in 1ndia0 with a mar!et capitaliNation o% over ISO 9;
billion and employing over F;0;;; people/
He is an alumnus o% Harvard Business School0 IS"/ He has been con%erred one o% the highest civilian award P
adma Bhushan/
He has been con%erred the degree o% 4octor o% Science by
the G B ant Iniversity o% "griculture & Technology/
5IG,RES 2 5ACTS Total ireless subscribers in 1ndia 1n June ;8 & July ;8 are
)*-3$$)&
) *6)36 respectively/
Total ire line subscribers in 1ndia 1n June ;8 & July ;8 are
-$-$$- & -$)$--respectively/
STRATEGIC B,SINESS ,NIT O5 AIRTEL
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MARET SHARE
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S,BSCRIBER GROTH
PREPAID 2 POSTPAID ,SERS
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COMPETITORS
ational Long 4istance
BSL0 R#L1"C#0 SL0 ,4"H,#0 T"T"0 14#"
1nternational Long 4istance
SL0 R#L1"C# 0 BSL
B,SINESS PARTNERS
Out'urcin+ Dea1' 4en!r'Partner' 5eature'A!vanta
+e'
etwor! outsourcing
& maintenance
#ricssion
o!ia siemens
networ!
#ase in networ!
planning
ayments Lin!ed to
*Isage & etwor!
Euality
* Service levelagreement
1n%ormational
technology
1B( ricing & payment
as a A o% Revenue
assive
in%rastructure
Bharti 1n%ratel
1ndus Towers
Reduced cape$
spend
1ncrease %ocus on
sharing passive1n%rastructure
Call center
outsourcing
1B( 4a!sh
(phasis
#nhanced &
Consistent customer
e$perience
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Hindu.a T(T
"egis B,
ortel
Common plat%orm
across the group
Partner' R1e
Service Partner'4en!r' R1e
(obile services #ricission & o!ia
1B( 4a!sh
(phasis
Hindu.a T(T
Tele tech
etwor! #Euipments
partners
Call center
operations
Telemedia &
#nterprise services
Siemens
ortel
#Euipments
suppliers
1T reEuirements 1B(
ortel
Group wide
technology
reEuirements
Call center
technology
reEuirements
,TH#R "LL1"C#
1n :;;?0 Bharti "irtel has entered into %ollowing ma.or agreements
and alliances
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ith (icroso%tto7er so%tware and services %or the Small
and (edium Business 5S(B6 mar!et in 1ndia/
"s part o% the agreement0 "irtel will bring Google search to
the "irtel Live mobile " portal/ Google will alsoincorporate advertising through its (obile "ds product on
the "irtel Live mobile portalQ
" three*year contract with N.ia at an estimated value
o% ISO 9;; mn to e$pand its managed GS( GRS#4G#
networ!s in eight "irtel circles and deploy a pan 1ndia "
solution across its networ!sQ
The company has a strategic alliance with SingTel/ The
investment made by SingTel is one o% the largest
investments made in the world outside Singapore0 in the
company/
MARETING MI8
PROD,CTS
"irtel Connections ostpaid
"irtel Connections repaid
"irtel 4ata Cards
"irtel Blac!berry phones
* On 19 October 2004 Airtel announced the launch of a
Blackberry Wireless Solution in India. he launch is a result of a
tie!u" bet#een Bharti ele! $entures %i&ited and 'esearch In
(otion )'I(.
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"irtel 1 hones
* As of 22 Au+ust 200,- the A""le ihone / is aailable in
India on Airtel and $odafone.
"irtel 4igital T
* On 9 October 200,- Airtel oined the 3 band#a+on in India
#ith Airtel 3i+ital $- a 3irect!to!o&e eleision serice
S,BSCRIBER BASE
The "irtel subscriber base according to TR"1 * Telecom
Regulatory "uthority o% 1ndia as o% +ebruary :;;8 was
4elhi * 90=?303??
(umbai * :0?8308=F
(adhya radesh * ?0=8;0=;8
Gu.arat * F08
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PLACE
1t has wide and e$tensive presence even in the remotest
areas
"irtel Customer Care Touch oints
4istributors li!e
#/g/ aan shops0 grocery stores0 chemists0 outlet etc/
PROMOTION
Large scale print and video advertising/
Big celebrities li!e SR@ and Sachin are roped in to endorsethe product because it /
1n :;;: "irtel got its Signature tune %rom "/R/ Rehman0 this
signature tune is the most downloaded tune in 1ndia/
rovides innovations such as Bollywood movie premiers0
music services such as ring bac! tones & many more/
PH9SICAL EN4IRONMENT
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INNO4ATION
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4AL,E CHAIN PROCESS
Te1ecm ;rce'' Detai1
Cu'tmer Im;rtance* +irst they -nd the customerreEuirements/
Tec/n1+y* Latest change in telecom technology/
Cm;etitive ;'itin* Conduct S,T "nalysis o%competitors
Ca;a%1e Su;;1ier'* Suppliers capable o% component design
Start* 4ecide which service we are going to provide usingwhich technology0 who is our customers0 endors & partners/
CORPORATE C,STOMERS
Hathway P 1nternet gateway/ ational Long distance services/
#+4 Corporation *
Raymond
Ba.a. "llianN
(phasis
ipro
1B( 4a!sh
Large Stoc! Bro!ing Company
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5INANCIAL ANAL9SIS
ireless Customer mar!et share leadership at :9/? A/
Total minutes on networ! carried in F P 39F billion/
Total employee strength P :)0))F/
Balance sheet strength
"ssets * O 3: billion
et 4ebt * O =?? million
et 4ebt to #B1T4" P ;/:3 times
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Economies of scale and ecient working capital
management helped boost prot margin
Companys policy of retaining entire prots helps in
keeping the D/E low despite surging loan book
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Better controls helped check bad debt losses
Economies of scale help reduce the percentage cost of
advertisement ependiture
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"1RT#L R##I# T#L#C,( S#CT,R :;;?*;
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("R@#T1G ""LDS1S
TARGET C,STOMERS
Ip mar!et pro%essionals
#ntrepreneur with business plans
Low income mass category
Douth
omen and senior citiNens by post paid connection
PORTER GENERIC STRATEG9
NARRO
MARET
#/g/ #RG1 (,B1L#
BROAD MARET #/g/ ,4"+,# #/g/ "1RT#L
,NIK,ENESS
COMPETENC9
LO COST
COMPETENC9
BCG Matrix 0 B/arti AIRTEL
MARET GROTH
HIGH
STAR* 4TH & 1T0
BR,"4B"4
* R#T"1L
1SIR"C#
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MARET GROTH
LO
CO* (,B1L#
S#R1C#S
DOGS* +1#4 L1#
S#R1C#S
MARET SHARE
HIGH
MARET SHARE
LO
)*+,RC# (,4#L
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Bi%1i+ra;/y
www/trai/gov/in
www/airtel/in
www/wi!ipedia/comairtel
www/airtel*broadband/com
www/google/com
http://www.trai.gov.in/http://www.airtel.in/http://www.airtel-broadband.com/http://www.trai.gov.in/http://www.airtel.in/http://www.airtel-broadband.com/