AIRTEL MAGIC “PROMOTIONAL STRATEGIES” ISHA MEHRA NITIN AGARWAL ANKIT CHANANI AMIT MANDOWARA SHOBHIT SHRIVASTAVA BHARTI’S HISTORY Manufacturing Business Supplier of Basic Telecomm Equipment. Launched Airtel in 1995. BACKGROUND NOTE •Introduced in India during early 1990’s. •Two major private players : »Airtel »Essar •Offered only post paid. •Regarded as luxury, targeted mostly elite segment PREPAID EMERGENCE • Late 1990’s growth was normal. • Providers launched prepaid services to target customers of all sections. • Between late 90’s and early 2000’s,tariffs declined by 75%. • Bharti launched its prepaid service under the MAGIC brand in January 99 OBJECTIVE FOR PROMOTION TRAI’s mission is to create and nurture conditions for the growth of telecommunications including broadcasting and cable services in the country in a manner and at a pace which will enable India to play a leading role in the emerging global information society. Promotional Strategies used by companies… 1. Tag Line 2. Graphics 3. More talk time 4. Discount coupons 5. Celebrity endorsement 6. Loyalty rewards 7. Targeting major events & occasions ALL SET TO CREATE MAGIC • Early 2002 ,Magic decided to revamp its marketing strategies. • Renamed as • Attracted non interested customers by appealing to their needs. • Plans to launch in new areas & bring about changes in pricing. REVAMPING EXERCISE •Focused on extending its distribution base. •Strategic tie-up with ICICI in 2002. •Charged different rates depending upon the time of call & Recharge at different denominations BHARTI’S FOCUS •Targeted infrequent users of mobile. •Focused on its distribution strategies »Easy availability. »Instant connectivity. »Pre-activated STD/ISD. •Made available in various denominations. •Magic became the market leader with presence in 16 states. BHARTI’S EFFORTS TO EXPAND • Introduced special offers to MAGIC subscribers: - Free caller line identification. - Balance on screen. - Balance on demand. - Door step delivery of Magic cards. • Launched regional roaming in 2002. • Revised many taglines to take the brand closer to masses. • Endorsed celebrities with young and youthful image. THE BRAND AMBASSADORS KABHI BHI, KAHI BHI INDUSTRY STRIKES • HUTCH & BPL: - Free incoming, reduced roaming charges,32K SIM card. • IDEA : - 630 million on adv’s . SMS in 9 languages, games, gold coins and watches. • SPICE : - Free national roaming, gave useful information like train timings, cricket updates, astrology etc. • RPG Group: - Chennai based operator launched Tamil SMS and Audio times. COUNTER STRIKE FROM BHARTI • Free talk time on every fourth recharge. • Designed different marketing strategies for different circles. • Started SMS based value added services in regional languages. • By various proactive/reactive schemes Bharti retained its LEADERSHIP position. THE FUTURE-FAR FROM MAGICAL •Biggest challenge came from CellOne. •Analysts doubted profitability of this segment in long run. •This problem can be over come by building up vast customer base. •Bharti might seem to have an advantage now. But it is a long-term game. MARKET SHARE OF MOBILE OPERATORS RECOMMENDATIONS Schemes like senior citizen cards. Special cards for Corporates & Colleges. Free holiday package offer. SOME INTERESTING FACTS • Every 5th mobile user in India talks on Airtel. • About 91% of mobile owners in India reside in Airtel's circles. • At 150,000, Airtel has the largest family of retailers. • Airtel also has the largest network of exclusive outlets over 400 - and the largest share of 'prepaid' subscribers. • Airtel monitors 300 customer touch points through a continuous customer satisfaction research process.