group b airtel

8/4/2019 Group b Airtel

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Presented By

Group B

AJAY KUMAR JHA (7003)

ROHAN KELSHIKAR (7023)NAVA KEERTHI SAGAR (7031)

M PRIYADHARSHINI (7036)

SALIM HAQUE(7041)


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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.


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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.


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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)


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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


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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


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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


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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


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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


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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.


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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.


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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.


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DIVERSIFICATION

Broadband Services.

Telephone Services - Touchtel.

Consultancy services to industry verticals like Banking,

Financial services and Insurance, ITES, etc. to meettheir telecom needs.


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FOUR Ps


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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.


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PRODUCT

Product Variety:

Prepaid

Postpaid

Calling card

Value added services

Blackberry services

Business solutions


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PRICE

Easy payment options. Anytime Anywhere

Easy billing

Flexible Credit limit

Happy recharge ( full talktime everytime)


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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


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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.


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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)


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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


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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


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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


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Prepaid

Postpaid

Calling Cards

HandyPhone Hutch PCO

Hutch World (GPRS service)

Hutch services on mobile

PlanetHutch services Mobile E-mail solutions

SERVICE PORTFOLIO


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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


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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.


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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.


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THANK YOU

group b airtel

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