Positioning (And Repositioning)

OF

PRESENTED BY –
ABHAYA PGFB0901
DEEPSHIKHA PGFB0915
GARIMA PGFB0917
PRAGYA PGFB0929
ANUPAM PGFB0954
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.
Airtel’s Background (cont…)

• 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…)
• 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….
 BRAND AMBASSADER OF AIRTEL

•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
 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 •Airtel Free net

Services
•Airtel Long Distance
•Airtel National Long
Distance Services •Airtel Tango (Internet
Mobile)
•Airtel Broadband
Services

•Airtel Mobile Services

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…….
TIME PERIOD SUBSCRIBERS
• Replaced three-tier with two tier
architecture under two heads –Wired and
Wireless
• Wireless product included Tango,Freenet
and Magic EARLIER 8.17 MILLION
• Objective to establish Bharti as a “Global
Telecom Company”
• As said by Bharti –Airtel’s brand identity
and campaign will have a new younger 2003 12 MILLION
and international look.
• According to Cellular Operator
Association Of India(COAI) report, the
Cellular market in india was one of the
fastest growing market. 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 lots
More : 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
Horizon : 2010

VISION :

 Most admired brand in India

by 2010
 Loved by more customers
 Targeted by Top Talent
 Benchmarked by more
businesses
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!