WILL AIRTEL BE ABLE TO RETAIN ITS WILL AIRTEL BE ABLE TO RETAIN ITS
MARKET SHARE??? MARKET SHARE???
Market Share of Airtel and Essar Airtel 56% Essar 44% International Management Institute
PROLOGUE Indian cell market has just recently crossed the 2 million mark.and there is more to happen. With new technological upgradations occurring nearly everyday and the ever-increasing demand for easier quicker connectivity, the cell market is epected to race ahead. In !elhi, the two cellular service providers, "ir#el and $ssar, have %een competing aggressively for their market shares. With &#'( and a )ourth player entering into the foray, this tussle will only %ecome more tough. "nd the one who will %e a%le to capture the largest part of the pie, will emerge as the leader. #ill now, *harti "ir#el had enjoyed the lead over its only other competitor in the region, $ssar. With these new entrants and fierce competition from $ssar, will "ir#el %e a%le to retain its market lead+ #his is the question we aim to answer in this project.. International Management Institute
THE CURRENT CELL-MARKET SCENARIO India has a fast-growing cellular services market with ecellent potential for the future. With almost half a million su%scri%ers amassed in less than two years of operation, India,s growth tempo has far eceeded that of numerous other markets, such as -hina and #hailand, which have taken more than five years to reach the figures India currently holds. #he num%er of mo%ile phone su%scri%ers in the country would eceed ./ million %y 2//. and cross 0// million %y 2/1/, according to -ellular 2perators "ssociation of India 3-2"I4 "ccording to recent strategic research %y Frost & Sulliv!, Indian -ellular 5ervices &arket, such growth rates can %e greatly attri%uted to the drastically falling price of cellular handsets, with price playing a fundamental role in Indian su%scri%er requirements. 5u%scri%ers in certain regions can acquire the handset at almost no cost, thanks to the mass-market stage these technologies have reached internationally. #he Indian consumer can %uy a handset for 60// or less. #his should lead to increased su%scri%ership. *y 2//0, revenues are epected to reach 61.7 %illion. International Management Institute
0 500000 1000000 1500000 2000000 2500000 3000000
May Jun Jul Aug Sep Oct Months All India Cellular Subscribers All India Cellular Subscribers International Management Institute
NEW TELECOM POLIC" #$$$-%&&& C'llulr Mo(il' S'rvi)' Provi*'rs + #he -ellular &o%ile 5ervice 8roviders 3-&584 shall %e permitted to provide mo%ile telephony services including ,'r-issio! to )rr. its o/! lo!0 *ist!)' tr11i) /it2i! t2'ir s'rvi)' r' without seeking an additional licence. !irect interconnectivity %etween licenced -&589s and any other type of service provider 3including another -&584 in their area of operation including s2ri!0 o1 i!1rstru)tur' with any other type of service provider shall %e permitted. Interconnectivity %etween service providers in different service areas shall %e reviewed in consultation with #:"I and the same would %e announced %y "ugust 1., 1;;; as a part of the structure for opening up national long distance. #he -&58 shall %e allowed to directly interconnect with the <5'( after opening of national long distance from =anuary 1, 2///. #he -&58 shall %e free to provide, in its service area of operation, all types of mo%ile services including voi)' !* !o!- voi)' -'ss0's3 *t s'rvi)'s !* PCO4s utili>ing any type International Management Institute
of network equipment, including circuit and?or packet switches, that meet the relevant International #elecommunication @nion 3I#@4 ? #elecommunication $ngineering -enter 3#$-4 standards.-&58 would %e granted separate licence, for each service area. (icences would %e awarded for an initial period of twenty years and would %e etendi%le %y additional periods of ten years thereafter. )or this purpose, service areas would %e categori>ed into the four metro circles and #elecom circles as per the eisting policy. -&58 would %e eligi%le to o%tain licences for any num%er of service areas. "vaila%ility of adequate frequency spectrum is essential not only for providing optimal %andwidth to every operator %ut also for entry of additional operators. *ased on the immediately availa%le frequency spectrum %and, apart from the two private operators already licenced, 5OT 6 MTNL /oul* (' li)'!)'* to (' t2' t2ir* o,'rtor i! ')2 s'rvi)' r' in case they want to enter, in a time %ound manner. In order to ensure level playing field %etween different service providers in similar situations, licence fee would %e paya%le %y !o# also. Aowever, as !o# is the national service provider having immense rural and social o%ligations, International Management Institute
the Bovernment will reim%urse full licence fee to the !o#. It is proposed to review the spectrum utilisation from time to time keeping in view the emerging scenario of spectrum availa%ility, optimal use of spectrum, requirements of market, competition and other interest of pu%lic. #he entry of more operators in a service area shall %e %ased on the recommendation of the #:"I who will review this as required and no later than every two years. -&58 operators would %e required to pay a one-time entry fee. #he %asis for determining the entry fee and the %asis for selection of additional operators would %e recommended %y the #:"I. "part from the one time entry fee, -&58 operators would also %e required to pay licence fee %ased on a revenue share. It is proposed that the appropriate level of entry fee and percentage of revenue share arrangement for different service areas would %e recommended %y #:"I in a time-%ound manner, keeping in view the o%jectives of the 'ew #elecom 8olicy. International Management Institute
THE SCENE IN 5ELHI UPTO NOW78 'ew !elhi, as an upcoming commercial metropolitan city is witnessing at present a tug-of-war for market share in the cellular market, which is currently hovering near the C.. lac figure mark. #his market is growing at an etremely fast pace and so is the competition %etween the two main cellular service providers - AirT'l !* Essr. "ir#el, %eing the first to enter the market in !elhi has %een the leader %ut the present trend in the growth rate shows that $ssar might give it a run for its share of the precious pie.
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May Jun Jul Aug Sep Oct Airtel Essar Total el!i Months Subscriber Break Up E!t'r77 t2' t2ir* ,l.'r #:"I has, in its recent eposition, allowed the entry of the third player in the Indian cell-circuit. In !elhi, MTNL will %e the third one and it has announced that it is coming up with its cellular services in =anuary net year. #his will change the market scenario where the players enjoyed a duopoly market. $ntry of &#'( will %ring in fresh competition from a company, which has the advantage of the network of it own, and the tariff rate it enjoys from !2#. #he ecitement of consumers a%out the &#'( product could %e seen when it had to close its %ooking for su%scription within three days %ecause of oversu%criptionD #his will make eisting players to rethink there strategies and %e International Management Institute
ready for some twist in market share distri%ution in the coming months. W2o /ill (' t2' lu)9. 1ourt2?? With the Bovernment policy of li%erali>ing the telecom sector, it has moved a step forward with letting a fourth player in the cellular circles. With this there will %e one more private player in each circle and the player will %e even allowed, as the previous players for foreign joint ventures. With %ig players like $vergrowth #elecom (td., )ascel (imited, Aeacom India (imited, Autchison &a #elecom (imited, = # &o%ile 8hone 5ervice (imited entering the race for new licenses ,cellular market in India is going to see some drastic changes in the near future. In !elhi also things will not %e the same and the eisting players will have to %e proactive for facing competition from these players who are %ig, have prior eperience and full of moneyD International Management Institute
Co-,!. Pro1il' o1 "ir#el comes to you from B2rti C'llulr Lt*8 " consortium of giants in the telecommunication %usiness - Si!0t'l3 Si!0,or'3 T'l')o- Itli3 Itl.3 !* B2rti E!t'r,ris's I!*i8 *ritish #elecom, @E had %een one of the key partners in "ir#el with CCF stake %ut has recently %acked out of all its "sian operations, leading to the recent =< %etween 5ingtel and *harti #elecom. "ir#el launched it,s services in !elhi on 'ovem%er 1C,1;;.. It has at present over two lac twenty thousand su%scri%ers. In it,s five years of pursuit of greater customer satisfaction, "ir#el has redefined the %usiness through marketing innovations, continuous technological upgradation of the network, introduction of new generation value added services and the highest standard of customer care. AirT'l 2s )o!sist'!tl. s't t2' ('!)2-r9s 1or t2' I!*i! )'llulr i!*ustr. to 1ollo/8 International Management Institute
AirT'l 2s t9'! t2' l'* o! -!. o))sio!s8 It 2s (''! t2' 1irst #o launch -ellular service in !elhi on 'ovem%er 1;;.. 2perator to revolutionali>e the concept of retailing with the inauguration of AirT'l Co!!')t 3eclusive showrooms4 in 1;;.. #oday "ir#el has 17 -ustomer -are #ouch 8oints and over 0// dealers in !elhi and '-: towns. #o epand it,s network with the installation for second mo%ile switching center in "pril, 1;;7 and the first in !elhi to introduce the Intelligent 'etwork 8latform )irst to provide :oaming to its su%scri%ers %y forming an association called World 1 'etwork. )irst to provide roaming facility in @5". "ir#el has the largest automatic roaming service :SMART ROAM:- 'ational in 0./ cities in India and G5&":# :2"&G - International in over H/ countries and ;. networks all over the world. International Management Institute
"ir#el has consistently strived hard to, not only deliver as per customer epectation, %ut also go %eyond that. "ccording to its those at "ir#el, their vision, mission and values are as follows. ;ISION #o make mo%ile communications a way of life and %e the customers, first choice MISSION We will meet the mo%ile communication needs of our customers throughI $rror-free service delivery Innovative products and services -ost efficiency ;ALUES We will always put our customers first. We will always trust and respect each other. We will respect our associates as we respect International Management Institute
each other. We will work together through a process of continuous improvement Cov'r0' o1 AirT'l "ir#el cellular service covers whole of !elhi and the adjoining satellite cities as shown in the map. It %oost that the coverage is uninterrupted and covers the widest area. $ssar which more or less covers the same area will give "ir#el a toss in the future when its partner Autchison which is planning to consolidate all its Indian operation and give its customers a wider reach in term of autoroam. 8layer who provides a %etter service in this respect will have a edge in the future as we can see the way people and %usiness is moving out of !elhi. International Management Institute
PRO5UCTS 825# 8"I! -":! 8:$ 8"I! -"5A -":! Post Pi* Cr* Business Lifestyle Plan AirTel Standard Leisure Plan AirTel Easy International Management Institute
Ho/ -u)2 *o's it )ost 5ecurity !eposit 3:efunda%le4 :s. 2/// "ctivation -harges :s. 12H/ #otal :s. 02H/ 'oteI #he a%ove are one time entry cost. #he deposit is completely refunda%le. International Management Institute
Airti-' Rt's Busi!'ss Li1'st.l' Pl! &onthly :ental :s. H2. per month 2utgoing :ates3applica%le 2C hours4 :s. J per minute Incoming :ates3applica%le 2C hours4 :s. 1 per minute #he rates are valid 2C hours a day? 7 days a week AirT'l St!*r* Pl! &onthly :ental :s. C7. per month 5tandard Aours31/ am to ; pm4 :s. C per minute32utgoing and Incoming4 -oncession Ars-I3J am to 1/ am K ; pm to 12 midnight4 :s. 0.;/ per minute32utgoing and Incoming4 -oncession Ars-II312 midnight to J am4 :s. 2.;/ per minute32utgoing and Incoming4 *illing pulse is of 0/ seconds. 2n 5undays and 'ational Aolidays 31.th "ug, 2Hth =an K 2nd 2ct4 the tariff rates International Management Institute
are of :s. 2.;/ per minute 3midnight to J am4 K :s. 0.;/ per minute 3J am to midnight4. AirT'l L'isur' Pl! &onthly :ental :s. .2. per month Incoming K 2utgoing :ates J pm to J am 3Weekdays4 ./ paisa per 0/ seconds J am to J pm 3Weekdays4 :s. 0 per 0/ seconds 5undays K 'ational Aolidays 3all 2C hours4 ./ paisa per 0/ seconds Weekdays are &onday to 5aturday. 'ational Aolidays are 1.th "ug, 2Hth =an K 2nd 2ct. #he %illing pulse is 0/ seconds on all days. AirT'l Es. &onthly :ental :s. .2. per month Out0oi!0 I!)o-i!0 8eak :ate :s. H.// per minute :s. 2.// per minute International Management Institute
5tandard :ate :s. H.// per minute :s. 2.// per minute 2ff 8eak :ate :s. H.// per minute :s. 2.// per minute Pr' Pi* Cs2 Cr* M0i) Pr' Pi* Co!!')tio! W2t is M0i)? &agic :eady -ellular -ard is your ready-to-use, no- hassle cellular connection. It comes pre-activated with 5#!?I5! calling facility. *acked %y "ir#el, the leading cellular operator in India, it gives you crystal clear communication in entire !elhi, Bha>ia%ad, '2I!", Burgaon, )arida%ad and *alla%hgarh. Hi02li02ts International Management Institute
MAGIC888 t2' si-,l'st /. to 0o )'llulr Wi*' Avil(ilit. &agic :eady -ellular -ard and &agic :echarge -ards are availa%le widely all over the city at over 1J// outlets. No ,,l.i!0 &agic is availa%le across the counter. Lou do not need to apply in advance or go through complicated formalities to get connected. I!st!t Co!!')tivit. &agic :eady -ellular -ard can %e used as soon as it,s %ought. Lour connection is pre-activated with a host of other services. Co-,ti(l' /it2 ll H!*s'ts With only &agic, you are assured that it would work with all models of B5& cellular handsets. International Management Institute
No Bills 'o more keeping track of %ills every month. With &agic, you pay when you want and as much as you need. Totl Cost Co!trol &agic gives you complete control over your cellular epenses every month. #he friendly I<: service tells you your %alance, free of cost, whenever you desire. International Management Institute
Co!v'!i'!t R')2r0i!0 :echarging your &agic card is very simple. Whenever your %alance is running low, just %uy a recharge card of value most suita%le or recharge on-line. Fr'' Ho-' 5'liv'r. =ust call G!ial-a-&agic, at 000 3toll free4 from your &agic to place the order, and get the card delivered at your preferred address at no etra cost. -urrently this service is availa%le in !elhi and Burgaon only. Ho/ *o's it /or9? When you %uy a &agic :eady -ellular -ard pack you get a 5I& card and a recharge card in the pack. Lour &agic 5I& card is already activated and just needs to %e loaded with calling value, which you can do %y using the &agic :echarge -ard. International Management Institute
#his calling value is valid for a pre-defined period called the validity period. Lou can make and receive calls only during this validity period. "s and when you make or receive calls the calling value %alance on your &agic -ard account keeps reducing as per the applica%le airtime rates. Lou must get your &agic -ard recharged %efore the calling value is over or the validity period ends. &agic :echarge -ards are widely availa%le at over 2C// outlets spread across the city in convenient denominations of :s..//, :s.1///, :s.2/// and :s.0///. $very time you recharge your &agic -ard you get a credit of calling value which has a new validity period attached to it. #he validity period is followed %y a grace period of 1. days during which no calls can %e made or received, %ut the &agic -ard "ccount can %e recharged. !uring the grace period you can also order for a &agic :echarge -ard to %e delivered at your doorstep, a%solutely free of cost, (. si-,l. *ili!0 <<< 1ro- .our M0i)8 MAGIC 888 t2' -ost 11or*(l' )'llulr 'o :entals International Management Institute
'o 5ecurity !eposits 8re-activated 5#!?I5! )ree -(I -ost 8ackage sadasdasd M0i) :R'0ulr: ,)9 MRP :s. 1.2. Inclusive of I Clli!0 ;lu' :s. 7J..71 A)tivtio! F'' :s. .// Pro)'ssi!0 F'' :s. 1HH.H7 S'rvi)' T= :s. 72.H2 International Management Institute
R')2r0i!0 M0i) Cr* 2ne can either recharge &agic online or purchase a recharge card from any of our outlets spread across the city. :echarge cards are availa%le in four convenient denominations of :s..//, :s. 1///, :s. 2/// and :s 0///. ;lu' **'* s'rvi)'s <alue added services can play a major role in determining the market leader of the future. #he following are the value added services and special services provided %y "ir#el. ;lu' A**'* S'rvi)'s 1ro- "ir#el offers you a host of value added services. #hese are availa%le on request. #hey include I S-rt Mil International Management Institute
5mart &ail lets you receive messages even when your handset is switched off or when you are outside the coverage area. Lou can then retrieve these messages at your own convenience. AirT'l>s F= !* 5t S'rvi)' If you can connect to "ir#el,s )a and !ata service , you can take your office wherever you go. Lou can send and receive data?fa documents, access the internet, email accounts and corporate data%ases whenever you are on the move. AirT'l>s F= S'rvi)' If you connect to "ir#el,s )a service , you can take your office wherever you go. Lou can send and receive fa documents whenever you are on the move. S-rt Ro- "ir#el,s 5mart :oam service allows you to use your mo%ile phone to make or receive calls from almost International Management Institute
anywhere in India and a%road 3.; countries4 at '2 etra cost 5mart :oam gives you two great optionsI S-rt Ro- Ntio!l $njoy roaming in India across 2. partner networks and over 0./ cities. S-rt Ro- I!t'r!tio!l :oam across international destinations, in .; countries including @5", -anada, @E etc. with ;. partner networks 3where B5& phase II networks eist4. It'-i?'* Bill #his is a comprehensive statement of all details on the outgoing calls made %y you and the incoming calls received %y you for the %illing period. International Management Institute
It'-i?'* Clls #he call %reakdown shows date of calls, the destination of calls, the length of calls and the relevant cost. Cll Co!1'r'!)' It help,s you hold a tele-conference with H different people simultaneously. Infact you can set up a conference, even if the other five are using the 85#' line. Cll Li!' I*'!ti1i)tio! Pr's'!ttio! -(I8 gives you the power to know the phone num%er of the calling party even %efore you answer the call. #hus giving you the choice to either reject or take the call. H!*s't I!sur!)' S'rvi)' "ir#el and 'ew India Insurance present the eclusive Aandset Insurance service. #he Aandset Insurance service is an eclusive privilege for "ir#el customers like you. International Management Institute
Cll Li!' I*'!ti1i)tio! R'stri)tio! If you don,t want others to know your num%er, you can use the -(I: service, so that your cellular num%er is not displayed on the phone screen of the person you call. Cll Wit #his service is availa%le to all "ir #el customers. If you are on a call and some%ody else calls your num%er, your -all Waiting feature alerts you with a special audi%le tone. Lou then have the option to eitherI 1. 8ut the call-in-progress on hold, and answer the new call, or 2. :eject the incoming call Cll Hol* #his service allows you to put an on-going conversation on hold, and call someone or receive a call from another person. Lou may switch %etween the two calls any time. International Management Institute
Cll 5iv'rt -all !ivert allows you to divert incoming calls to another num%er. International Management Institute
S1' Custo*. When you travel out of town for a short time "ir#el can keep your connection in 5afe -ustody where the connection is kept inactive for a short period, without actually canceling it. Lou need not pay the monthly rentals during this period. S-rt A))'ss 5mart "ccess - the Interactive <oice :esponse 3I<:4 service for accessing information related to your cellular phone. "ll you have to do is dial our toll-free num%er 7C7 from your "ir#el cellular or ;J1/1-7C7// from a landline any time of the day or night. Mo(il' Hu!ti!0 " group of mo%ile connections is given one virtual mo%ile num%er, which is known as the 8ilot or Aunting num%er and other mo%ile num%ers remain the same, allowing you to make and receive calls. International Management Institute
ST56IS5 #he 5#!? I5! facility allows you to make long distance calls in India and 2verseas from your cellular phone. #his service is applica%le to %oth "ir#el and &agic customers. ST56IS5 5.!-i) Lo)9i!0 !* U!lo)9i!0 #his is a new service availa%le to "ir#el customers to lock and unlock 5#! ?15! facility from his handset 3from specific handsets only4 and avoid misuse S,')il S'rvi)'s AirT'l>s --B!9i!0 S'rvi)'s m-%anking provides you with access to %anking and credit card services directly from your cellular phone. With m-%anking you can now conduct %anking and credit card transactions from your "ir#el without making a call from anywhere in India and over CH countries International Management Institute
-urrently, you can access A!)- *ank accounts, I-I-I %ank and credit card accounts. Lou need to have accounts with either of the %anks to %e a%le to use m- %anking. Cr H'l,li!' *il $<& Introducing -ar Aelp (ine, from "ir#el. It is designed to provide you help when your car %reaks down on the road. "ll you have to do is dial ;0/ from your "ir#el and help will reach you within thirty minutes. H'rt H'l,li!' *il @&@ "ir#el provides you a unique service called Aeart Aelpline. " panel of heart specialists at the $scorts Aeart Institute and :esearch -enter are only a call away to answer queries and guide you through an emergency. "ll you have to do is to dial 7/7 from your "ir#el cellular. International Management Institute
GAeart AelplineG is a round the clock service which shall provide answers to almost all heart related pro%lems arising out of chest pain, palpitations, shortness of %reath, a%dominal discomfort, weakness etc. Essr )'llulr 2s lso ,rovi*'s lot o1 vlu' **'* s'rvi)'s to *'!. AirT'l !. )l'r *v!t0' i! /i!!i!0 )usto-'rs o/i!0 to t2is 1)tor8 ;lu' A**'* S'rvi)'s 1ro- $ssar -ellphone offers a wide range of <alue "dded 5ervices. "utoroam -ell mail. )a and data transfer. -aller identification. Itemi>ed %illing . International Management Institute
-onferencing. &o%ile %anking. <oice mail. Co-,riso! o1 AirT'l !* Essr T')2!olo0.+ In no other service or %usiness is technology such a major factor. 5ales and marketing are futile without a sound technological %ase. Aence we analy>e %oth $ssar and "ir#el on the %asis of this parameter. #echnological facets in cellular services are eplained and the level of epertise of %oth players stated. Cll s't u, ti-'+ #his is the time that it takes a user to get connected after the completion of the dialing process. 8resently J-0/ seconds is considered normal set-up time. AirTels call set up time is generally within this range but Essar often takes longer. International Management Institute
C,)it. Cll )o!0'stio!+ #his is the quality of getting calls through even in high user density areas. AirTel scores over Essar here and hence provides better customer satisfaction. This will enable them to increase their customer base leading to increased revenues in the future. ;oi)' Aulit. !* Cov'r0' It is the clarity of transmission. In city centers this quality is not difficult to maintain. Aowever it %ecomes very important when the transmission is %eing directed to or from under ground locations, from %ehind tall %uilding and structures, narrow and congested city interiors. AirTel provides better quality in the above mentioned. Essar on the other hand has not been able to maintain similar standards. The reason for this is the better infrastructure and technology. Cll 5ro, Rt'+ International Management Institute
-all drop rate is the disruption of a call due to a loss of frequency, transmission from one cell >one to another. AirTels superior maintenance methods ensure lower call drop rate Mo(il' to l!* li!' )o!!')tivit.+ #his is due to maintenance of high quality switching interface with the &#'( 3!2#4 networks. Essar has lagged in providing high quality interface while AirTel has managed to keep its nose ahead in this department. All i! ll o! t2' routi!' t')2-s'rvi)' 1ro!t AirT'l is 2'* (ut !''*s to i!)r's' t2is 0,8 Co-,ri!0 t2' tri11 stru)tur' Basis AIRE! ESSAR AirT'l St!*r* Pl! Essr St!*r* Pri)' Pl! International Management Institute
s')urit. *',osit %C Mo!t2l. r'!tl :s. .2..// :s. .2..// <C Tri116 ,uls' Incoming 2utgoing :s. 2?min :s. H?min :s. 2?min :s. H?min Custo-'r )r' In one of the market researches, consumers descri%ed &2*I($ #$($8A2'L as the 5il K Ris2t8 "nd always taking notice were t2' % 0i!ts D AIRTEL !* ESSAR. "s the passage of time has added importance to the a%ove concept, %oth these organi>ations have tried getting the upper hand at providing their clientele with customer care and services that wireless technology can %ring to them 2ur foray into deciding the leader in this quest has left us with etremely close results. We looked at this competition at 2 different stagesI International Management Institute
Customer care at the point of making the sale+- )or %oth these concerns, this translated into providing smoothness of transaction for the customer "I:#$( had %een esta%lished to posses 0 core valuesM.(eadership, 8erformance and !ynamism. In its quest for customer care, it em%arked upon a campaign intended to add NwarmthO to these core values. It was felt that the creative should reflect humane yet aspirational, family-centric yet reacha%le and softer %rand values. After-sales service: - #he aspect of comfort should continue even after a customer has made an initial purchase, and %oth corporations have made it a locus point of their strategies. "I:#$( and $55": %oth have in their arsenal an impressive num%er of after sales service stations. "I:#$( is planning to %uild a network of over a do>en AIRTEL CUSTOMER CENTRES from the present num%er of 2. $55": too has an etremely strong sense of reassurance emanating from itPs after sales %ack-up. AIRTEL TOUCH POINTS D -reated to serve as lifestyle style esta%lishments, their num%er is epected to go up to a%out ./ in !elhi itself. International Management Institute
-ommensurately, %oth concerns have adeptly esta%lished e- kiosks, which help the customer and visitors alike know a%out the other peripheral services like !I"(-I', &$55"BI'B, $- -2&&$:-$ etc. Aere we9d like to mention that despite our %est efforts, no clear winner emerges as far as this aspect of the study is concerned. "greed that customer-relations emerges %y far strongly accentuated as concerns %oth organisations, the fight to woo and retain customers through understanding their sentiments and needs is far from won. Co-,riso! o1 ;lu' **'* S'rvi)'s <alue added 5ervices that are provided %y $ssar %ut not %y "ir#el )ight status check. -ell surf. 8aging. International Management Institute
T2'r' r' lso !u-('r o1 *il i! s'rvi)'s /2i)2 AirT'l *o's !ot ,rovi*'+ #arot line. 2rder a pi>>a. !ial M a - ca%. '!#< news headlines. Infoline. )lower delivery. :eminders . "strology. $ssar thus has a clear cut advantage as far as providing additional services is concerned. "ir#el thus would have to introduce more value added and special services to counter the advantage $ssar may %e deriving from this. International Management Institute
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SWOT ANAL"SIS STRENGTH+ T')2!olo0. *oth the facets of technology i.e %ack%one as well as value added services have already %een mentioned earlier. "ir#el is performing up to the mark in %oth areas and hence it is strength %ut in the future it shall have to upgrade at even faster as more players especially multinationals enter the fray. Custo-'r )r' "ir#el prides itself on %eing really close to it9s customers, it is as eplained earlier investing heavily in this area. Mr9't s2r' 5ince "ir#el was a first cellular provider it has always had the highest market share as far as customer %ase is concerned. Br!* & ,ro-otio!s "ir#el as a %rand in more prevalent in the customers mind than that of $ssar. Its promotion has always %een of connectivity and International Management Institute
a good live than promoting cellphones. It has a strong %rand image and always uses promotional strategies that are used to communicate to a mass of people, one %eing hoardings at the %us stops. WEAKNESS Losi!0 l'* o! t')2!i)l '=,'rtis' #hough "ir#el has managed to keep its nose ahead on %asic technical aspects of telecommunication, $ssar %acked %y Autchison K &#'( are %ridging the gap. Sus)',ti(l' to ,ri)' /r " price war is a distinct possi%ility since 2range may choose this as a strategy to @pstage "ir#el. &#'( is also likely to make a strong %id to fight on the price front. *harti can ill-afford to wage a price war as it has already investment heavily on the telecommunication infrastructure front. International Management Institute
Out'r 5'l2i r!0' i!*'Eut' 2n and around the outskirts of !elhi the voice and signal quality of "ir#el9s services tends to deteriorate. #his is a source of irritation and hence customer dissatisfaction. International Management Institute
OPPORTUNITIES C2!0' i! )usto-'r ,ro1il' It has %een o%served that the customer profile has shifted from rich %usinessmen to youngsters, traders, eecutives, working women etc. #his is a segment, which is yet to %e tapped. #he lower middle class is yet another segment to %e targeted as first time users T')2!i)l -!,o/'r *'rt2 t ESSAR "n eodus of lower level technical staff has weakened $55":9s maintenance and technical support %ase. #his could lead to a fall in quality of their systems. It is a good time for "ir#el to score over $55": on this front. Gro/t2 o1 )'ll us'rs #he past couple of years has seen a nearly eponential growth in cell su%scri%ers. #his is %ecause of the drop in handset prices and tariff rates. #hese two prices are likely to go down further in the future due to technological %reakthroughs and Bovernment policies. Aence a huge customer %ase is to open up. International Management Institute
THREATS+ Essr is 0i!i!0 t')2!olo0i)ll. $ssar has now acquired outsourcing for all its new projects. &otorola is the company, which provides this outsourcing. #his though epensive has greatly increased the efficiency and speed of $ssars projects. It is a %ig challenge for "ir#elQ as its technological superiority could %e challenged which would seriously affect its status as market leader of cellular services. Essr+ *'','r ,o)9'tsFF Autchison, the cellular giant has started giving $ssar technological and financial support. "s a result it has made it possi%le for $ssar to epand and improve all its operations %e it on the services, promotion, advertising or marketing fronts. #his is a cause of worry for "ir#el as $ssar would %e a greater force to reckon with, given the advantages cited. T2ir* !* Fourt2 ,l.'rs &#'( is to %e the third player in the !elhi circle. It has already got most of the Infrastructure in place for commencement of operations. #hey have put the infrastructure in place %y International Management Institute
acquiring the epertise from (@-$'# #echnologies. &#'( also has control of the landline systems, which eist. "nother advantage is the government %acking that &#'( will always enjoy. Strt'0i's 1or Futur' to r'ti! its -r9't s2r' Tr0't -r9'ts Lo/'r -i**l' )lss #his segment has not yet %een tapped %y any of the cellular service providers. 5ince these would %e first time users in the lower income group the price will %e a major factor. "ir#el will have to model its price structure to accommodate this segment of customers. 8repaid 5I& card may thus %e a good strategy to start off with. "out2 "lready "ir#el9s magic %rand is synonymous with youth. "ir#el will have to lay greater emphasis on this a segment of consumers %ecause with greater disposa%le income youngsters can contri%ute greatly to the revenues. International Management Institute
Wor9i!0 /o-'! #his segment has not yet %een tapped. "ir#el can thus concentrate on this segment %y introducing schemes aimed at women. #his can %e done %y providing them specific value added services. O,,o!'!t>s s2r'+ *y aggressively marketing their products and taking advantage of the fact that as mentioned %efore $ssar is facing pro%lems with its technical manpower at the services level. 5ooner or later this is %ound to result in dissatisfaction of their clients. "ir#el can a%sor% these users I!)r's'* )o-,'titio! 1ro- t2' t2ir* !* 1ourt2 ,l.'r &#'( will enter the cellular services market in a %ig way. "ir#el will have to pay off their attack %y 'ew tariff plans. &ore value added services. *etter network quality. International Management Institute
Intensification of marketing and advertising effort aimed at highlighting the strengths of the %rand and their continuous a%ility to provide good quality service. International Management Institute
MIN5ING OWN TURF I!)r's' i! visi(ilit. !* )ov'r0' "ir#el will have to go in for further image enhancement of the "ir#el %rand with a care and family message and the magic %rand with emphasis on targeting the youth. "lso, their retail outlets and franchises will have to %e increased further %y ./F. #his is infact a strategy that "ir#el is implementing and the results will show soon. 5uch reach and visi%ility once attained will have to %e complemented with ecellent peoples services that "ir#el is known for. 2nce achieved this level of services will %e hard new or esta%lished player to match. In the long run this could %e the vital factor, which keeps "ir#el 'o. 1 in the industry. T2' 1irst )o-' *v!t0' <alue added services are the norm of the day. #he service providers can gain a long term advantage %y consistently introducing new incentives in value added services or tariff structures. $very time a new scheme is launched it provides temporary edge to the service provider over its counterpart. International Management Institute
#his temporary advantage is in terms of the new clients it acquires who have %een attracted %y the offer. Aowever after some time this advantage is neutrali>ed %y the other player offering something similar. #hus it important to innovate %efore the competition time and again so that one can make the short term advantage cumulatively long term and help increase Nmind shareO as well as market share. Cor,ort' )li'!t'l' 5ince this a target market %y itself its marketing methodology itself would %e different. &ost organi>ations prefer to take services for their employees in groups. Aence, this order %ecomes very %ig for the service provider. 8ersonalised selling would %e the order of the day for these users. #he presence in the various %usiness and corporate circles would also enhance "ir#els9 %rand image. 5pecial incentives can %e given to these employees for maintaining their loyalty to the "ir#el %rand. T2' AirT'l - AirT'l *v!t0' "ir#el could lure more customers %y introducing schemes in which calls from one "ir#el user to another would %e possi%le at a reduced tariff. #his would encourage a group of users who International Management Institute
need to communicate frequently to opt for this service only. "lso it would help in promoting %ondage %etween the users and thus further promote loyalty. N'/ i!!ovtiv' ,)90's "ir#el has to come up with new innovative packages like the -"(( A2&$ scheme offered %y $ssar. 5uch schemes launched at regular intervals will help in maintaining customer loyalty and also attract new customers. Coll(ortiv' s)2'-'s /it2 ot2'r )o-,!i's "ir#el can colla%orate with companies like 'okia or any other hardware provider and launch schemes like providing free airtime with every hardware instrument %ought. $posing the customer to the %rand increases the chances of the customer %eing hooked on to the %rand. #he companies can ensure this %y offering the option of renewal of the account at the epiry of the free airtime. 5is)ou!t'* ,ro*u)ts #he company has to offer more discount schemes like reducing the activation charges or reducing the security fees. #his will International Management Institute
provide the company a competitive edge. Aowever this may lead to a price war. Aence the trade offs of indulging in this eercise must %e considered. R'0ulr 1r''(''s "ir#el can offer at regular intervals and specially at festivals schemes like free airtime to its users, free coupons for shopping, free entry to shows etc. this would keep the customers interested in the %rand and ensure that they remain loyal to the %rand. #he other competitor will also %e indulging in the same hence the effectiveness of these would depend on the timing of these offers. S,')il o11'rs "ir#el may offer special incentives and rewards to the frequent and regular users %y offering them free maintenance checks. )ree or minimal cost upgradation to a category of users who use the service over a specified limit of airtime. Mor' o1 t2' '-1)tor International Management Institute
#he future %elongs to the net. #he players who will %e a%le to integrate the net in their operations will lead the market. #his would mean advertising over the net, allowing an interface of the net with the cellular service. "ir#el is already on the right track as far as this is concerned. #hey have introduced the concept of %eing a%le to send messages to the user like a pager message. #his can %e done from the "ir#el site. Co!soli*t' WAP "ir#el has the advantage of having introduced the W"8 %efore its competitor $ssar has. #hey can use this as platform for taking a lead when this technology %ecomes widespread. #ill then it will act as %ait for status conscious users who want the latest innovations irrespective of its present application. International Management Institute
Fi!ll.3 to )'ll /'ll78 788!* r'-i! i! ,ositio!788 7777NUMERO UNO #o retain its position of the 'o. 1 player in the market *harti9s "ir#el has to not only implement the strategies mentioned %ut also time their moves perfectly. 2nly high level :K! complemented with sound technical services can provide the %ack%one for the aggressive marketing that we have suggested for "ir#el. International Management Institute
CONTENTS To,i)s P0' No8 8rologue 2 #he -urrent -ell &arket 5cenario 0 'ew #elecom 8olicy C-. #he 5cene in !elhi upto now H #he #hird and )ourth 8layer 7 -ompany 8rofile J-1/ -overage of "ir#el 11 8roducts and 8rices 12-1H <alue "dded 5ervice 17-2/ 5pecial 5ervices 21 <alue "dded 5ervice from $ssar 22 -omparision of "ir#el K $ssar 20-2; 5W2# "nalysis 0/-00 5trategies for the )uture 0C-0J -onclusion 0; International Management Institute
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Su(-itt'* to+ Pro18 S8N''l-'02- Su(-itt'* (.+ A(2is2'9 G2i!0! International Management Institute