Airtel Lanka Is A Part Of Bharti Airtel Marketing Essay

Airtel Lanka Is A Part Of Bharti Airtel commercialiseing EssayAirtel Lanka is a part of Bharti Airtel, Indias confidential information telecommunication company which currently operates in 20 countries across Asia and Africa. They brag to be the world 5th monolithicst mobile service provider with their customer base. Airtel Lanka currently has 1.7 million customers from an approximately 21 million customer base as of Quarter 3 in 2012.This assignment was constructed to analyze Airtel Lankas current market scheme in Sri Lanka based on Airtels prepaid and post paid verbalise plans.A valid rivalry analysis through with(predicate) Porters five forces and a lucubrate internal and external analysis has been mannered in this report, highlighting the impressions Airtel had faced since its launch in cc9. Airtel has secured 4th place in the market with 5 players currently acting a toughgame in the mobile telecommunication.A detailed fruit analysis has been undertaken, while lookin g into the market share and growth through a contextualized BCG matrix. The Ansoff matrix touches on the challenges faced and the ideal strategy to improvise on the mismatch of Airtel products in the market.T equal of Contents1.0 -Key areas of research and sources..1,22.0- Analysis of Airtel in the Sri Lankan Market.2,3,4,52.1 Airtel ingrained Analysis 22.2 Airtel international Analysis..32.3 Analysis of Airtel Competitors.32.4 Putting into practice the Value proposition Builder.42.5 BCG MATRIX.42.6 The Ansoff Matrix.53.0- Key Conclusions Findings ..5,63.1 Internal Check up- cram53.2 Knowing your external environment.53.3 Creating a Value Proposition.53.4 Fierce Competition.63.5 BCG matrix Analysis of Airtels voice plans portfolio. 63.6 The Ansoff Matrix- developing a strategy..64.0 Critical Observations..7,84.1- Product suppuration. 74.2- Market Development74.3 Airtels Lifecycle extensions....85.0 Learning outcomes from Group work ..8,96.0 Executive summary -Working as one po lice squad..97.0 Action points..98.0 Appendices. 10,11,12,13,14List of figures2.1 Internal analysis (SWOT) Pg 22.2 External Environmental analysis (PESTEL). ..Pg 32.3 Analysis of Airtel CompetitorsPg 32.4 Putting into practice the Value proposition Builder Pg42.5 BCG MatrixPg 42.6 Ansoff MatrixPg53.4 Competitive Market Share of Sri Lankan Telecommunication players Pg 64.3 Airtels Lifecycle extensions ....Pg8Key areas of researchPrimary ResearchWe have conducted a survey to judge the market awareness on Airtel voice plans available in the market. We have each identified five segments (Youth, Senior Citizen, Corporate professional, professional entrepreneur, Family subdivision) and interviewed five candidates. The sample size was total of 35 candidates, we salt away the fol smalling responsesAirtel plans confuse meThe coverage is poorRating Airtel in the somewhat categoryOurConclusion- Most of the market was not aware of Airtel products.Secondary ResearchA detailed research has bee n conducted with the use of academic journals, abstracts, trade publications, media reports, case studies, Interviews through the sources of Ebesco host, Harvard business review and many marketing management related text books and websites and statistical websites like the Central bank of Sri Lanka and the Telecommunication regulatory Commission.Internal AnalysisThe research on internal analysis of a company has explained the vitality of nab ups giving a classic example of our own health check- ups every year and the importance of conducting a Swot check up internally overly with the ever-so changing environment.External AnalysisPESTEL analysis has been used. Media articles have demonstrated the external environmental challenges that Airtel is facing. Website journals have shown me the importance of analysing the external environment in front planning for a raw(a) strategy.Competitor AnalysisA detailed competitive analysis has been done using the Porters five forces. Research ha s highlighted a unique observation, that competition, today looks onward of profits and should be strategizing to compete for survival.Value PropositionMany journal articles and marketing websites have been referenced. The research has shed light onto the importance of having a appliance of a strong hold dear proposition with a customer focus with the impact of being viewed as credible. A great example of this was Celtels success of come in the poorest continent. (24)BCG MatrixI have referenced journals, text books and trade publications which has highlighted product lifecycle decisions and some of the positives and negatives aspects of the BCG such as the lack of consideration in the competitive expectations and the insecurity factor.The Ansoff MatrixResearch into journals and websites have demonstrated on how to develop a strategy through managing new applied science innovations with the Ansoff matrix strategies along with a new concept of reverse innovation conducted by Air tel in India.(47)Analysis of Airtel in the Sri Lankan MarketAirtels Internal analysisThreatsCompetition high lavishly start up costFree Internet callingImposed Floor pricing for mobile providers.StrengthsRecognized brandCapital investment from India5th largest mobile hooker in the worldStrategic Partners around the worldCEO well known business personalityWeaknessesLack of local knowledge ExperienceNo coverage in rural areasPoor quality congestion and dropped callsOpportunitiesVery lucrative marketUntapped SegmentsLegal Airtel set flow rates in Sri Lanka 2.2 Airtel External AnalysisPESTELPolitical Stability after the civil warEcological Effects of their towers on the community health.CSR projects.Economic- Sri Lankan Rupees fluctuation Fuel price, Inflation kindlyBuying behaviorsTechnological- Adaptation from consumers2.3 Analysis of Airtels CompetitorsThreat of New EntrantsThe set flow rate that is imposed from the government on calling rates makes it difficult to bring down and compete.The Porters 5 forcesLow Bargaining power of suppliersThere are many mobile handset providers. Eg.Nokia Motorola, Sony EricssonHigh Rivalry amongst existing playersCustomers have many choicesHigh Bargaining power of BuyersThere are 5 key out mobile provides in Sri Lanka, Dialog Axiata, Mobitel, Etisalat, Airtel chanty.Cost of switching is not high.Threat of SubstitutesFixed recall lines, Internet calling..2.4 Putting into practice the Value proposition Builder3.OfferingsCorporate plans, Family packages, Special tourist plans.Value for money2 .Value ExperienceClear coverage, outperform rates with hold dear added run1.MarketFamilies, couples, Children, University students, Travelers Corporate businessesValue Proposition4. BenefitsGreat packages for target the market .Rs 200 package included with free 200 MB, 200 sms6. ProofSuccess stories to be highlighted through advertising to gain credibility.5. Alternatives DifferentiationGreat Coverage, Unique plans.Adapted from Greener consulting Ltd T/A Future curve (2003-2001) The value proposition builder. Online. Available from http//www.ronholt.es/prensa/2011_Winning_Value_Propositions.pdf Accessed September 29th,2012Market ShareHighLowProblem ChildStars 2.5 BCG matrixPre paid post paidValue added servicesHighMarket GrowthCash CowsLowDogs2.6 Ansoff MatrixExisting Product New ProductAirtelExisting MarketProduct DevelopmentMarket PenetrationDiversificationMarket DevelopmentNew Markets3.0 Key Conclusions Findings3.1 Internal Check ups-SWOTJust as we conduct check- ups on for health, A SWOT is required with the changing market trends. The strong financial backing can be used to increase its investments and expand rural coverage. Their strategic partners can aid in improving credibility local market knowledge.3.2 Knowing your external environmentThe government imposed flow rate makes it harder for Airtel to compete. Mr Mittal explained that this could be played with in India which makes competition ea sier. (39)3.3Creating a value propositionCreating a value proposition is essential for a company trying to reach its target market. A value proposition is not about listing all Airtels benefits alone selecting the core benefits. Sunil Mittal chairman of Bharti Enterprises, had introduced a concept of reverse innovation success where he outsourced key IT functions and left concentration on core strengths of understanding customers and building brand in India. (47)http//www.airtel.in/wps/wcm/connect/7f2d9c004622c34386769613a14a5b1e/bharti-mittal.jpg?MOD=AJPERES3.4 Fierce CompetitionPorters Five forces acts as a helpful tool in devising a strategy based on competition. I have identified that rivalry is high with 5 large players in a market of 21,699,591 mobile subscribers in Q3 2012.Competitive Market share of Sri Lanka Telecommunication player(Author 2012)3.5 BCG matrix Analysis of Airtels voice plans portfolioThere is a growing telecommunication market share of approximately 95 % a s mobile users. Airtel removes to adapt is product lifecycle to uplift its matured products and implement right-hand(a) segmentation to gain market share.3.6 The Ansoff Matrix- developing a strategyAirtel is adopting a low cost mass market strategy. (Market penetration) Airtel postulate to rejuvenate their product and conduct proper segmentation to develop its market and look into a strategy of Market Development and Product development.4.0 Critical observations4.1 Product DevelopmentBalanced portfolioWe need to understand that using BCG to analyse its market share and growth and cash flow could be ineffectively measuring performance. Airtel needs to differentiate and localise their product portfolio and ensure customers are knowledgeable about the differentiated value offered. Eg Rs 100 package, Rs 300 package.Wider Network Coverage ClarityAirtel pleas from the Sri Lankan government to allow tower share which will trend overall cost, improve quality and minimise environmental concerns. The usage of Satellites will improve tie-up quality.Value proposition develops the productAirtel needs to uplift its image in mobile technology sector with its Indian expertise. Retail partnerships can be used such as banks and food retailers to reorient credibility. Adding value for money and reducing cost..4.2 Market DevelopmentMove from Mass market Low cost strategy and establish value for moneyAirtel is ominous rates and using a penetration strategy. Mittal explained that Tariffs could be played with in India which makes competition easier. So Airtel should adopt packages with value added services as opposed to low cost which will be valued by its markets. (39)Develop untapped marketsKiddies Plan Parents will see this as a security to be able to contact their children and have restrictions on internet and calling features in place.Welcome to Sri Lanka- Tailored to the tourism in Sri Lanka. With application forms on the tourism website and they have a connection re ady when arrive at the airport.Corporate packagesOffering great bundle packages with Internet, corporate mobiles services, Dialog is treating its high spenders with a key client birth club offering receptions and freebies and points system. Airtel should adopt a similar strategy to attract the top spenders and sustain their loyalty.4.3 Airtels Lifecycle extensionsMarketing Mix adjustment-Add value rather than reduce priceAfter sales service-BetterCommunication to publicProduct adjustmentsBetter coverage with towers and satellitesImprovement with more value added servicesIncrease employ of Airtel bu current customers-Develop great packagesIncrease Number of Airtel UsersConvert non users in new Segments-Grab Competitors Customer.Kotler,P. And Keller,K ( 2009) (19)5.0 Learning outcomes from class workMaster Market penetration onwards moving onThe group identified that Airtels current strategy undertaken is market penetration. Airtel is not currently performing in their markets or their products. They need to perfect this before moving on. A differentiated market penetration strategy is what the group has decided. It was identified that Airtel has already many registered segmented products with the Telecommunication regulatory commission, the underlying issue is the clutter in advertising of Airtel packages that it is not marketed properly.Trail offersThis was a new idea brought up by one of our team members to offer 1 month trial offers and let customers experience Airtels product. This will help to capture market share from competitors.We have identified Product P from the marketing mix and that for thriving implementation it requires a synchronization of the other 3 PsEvolving TechnologyDiscussion went that Airtel should always keep a high priority on evolving technology despite its penetration strategy to stay in existing markets and existing products.Retail PartnershipsMy assignment identified for retails partnerships to enhance the value of the overa ll product but our team has looked at it as an opportunity to meet target markets and to establish credibility in their markets.6.0 Executive summary -Working as one teamThe team got along well there was active contribution from all business backgrounds by each team member. We worked well to stick to our time plan. We got a trusty competitor insight from a team member who worked for the competitor, Dialog Axiata and another who had foreign exposure had brought forward technologies like tower sharing.On the flip side our group was very opinionated but we always battled out the contradictions and came to an agreeable solution. Individually I learnt a lot about the industry insights and the facts and figures brought by team member has enhanced my knowledge in the telecommunication industry.Action pointsThe group started early to choose a company and Individual research was conducted on Product from the marketing mix.An active email group was set up where we had online discussions as w ell.Second Meet up was to discuss ideas so far and our progressOnce we unblemished our individual assignment we discussed our findings along with the survey results (see appendix) and battled out the best points to put in our power point presentation.We finalized the slides with layout and discussed out talking pointsWe are now practicing our presentation.8.0 adjunctQUESTIONNAIREThis survey is about the Airtel and their product offering. Please spend some valuable time of you on this survey and information which collected through this survey would be kept confidentially.MaleFemale1. Gender ()2. Age () 20 25 26 35 36 45 45 50 51-Above3. Rate the quest mobile phone suppliers according to your preference.Very goodGoodAverageSome whatDislike12345Airtel12345Hutch12345Dialog12345Mobitel12345Etisalat123454. Have you ever used an Airtel connection? ()Yes No 5. If the answer is yes for the above question why did you switch to another connection? ()Airtel Product range confused mePric e levels are didnt meet up my requirementCoverage is not sufficientMarketing campaigns makes me complexValue added services are not sufficient6. You use your device mostly on ()VoiceSMSData7. Whose product range fulfil your mobile connection requirement ()AirtelHutchDialogMobitelEtisalat8. Your most favourite marketing campaign is from ()AirtelHutchDialogMobitelEtisalatThank you