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JK’s Strategies on Airtel

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Airtel Diversification – 01& 02
          -NEW ERA FOR BHARTI ENTERPRISES-




          Mr. J.K. Williams B.B.A in MKT(1          st   Class Honor)
                                             williams_jk@ymail.com
I sent two reports to Airtel’s Senior Management with two time intervals once they launched in Sri Lanka.
They were depending on just competitive base pricing strategy (2ruppes for any network); however, in order
to position my strategies and to check out my new concept (price-base product features with Value Offers)
in Telecommunication industry, I sent this reports to them.
I combine both those reports in this single report; hence, you can just clarify my strategies with practical
implication in the last section of this report.




                                      “Airtel Diversification”

                                                  --Introduction--



Nowadays I could perceive that, there are greater competitions among cellular network providers to
attract and keep the customers with them. Meanwhile, there are also some short of inter-linkage
with those providers in pricing and servicing.



In this confused environment, I decided to undertake a marketing research, which focuses solely on
network providers’ activity and customer perception. Because most of the providers introducing
several packages even day to day, but I have an doubt, whether are they focus on customers’
requirements or are they just focus solely on the competition.



Because, while Airtel launched its operation in Sri Lanka, Airtel just focused on competition rather
then customer requirements, as this result, Airtel set price for 2 rupees outgoing for any networks.
Whereas, this scheme was absolutely perfect than Airtel’s competitors, as no network providers
have such least pricing scheme. However, Airtel failed to impress whole Sri Lankan mind on
Airtel’s first encounter, because whole Sri Lankans’ have grater expectation on Airtel and its
services. Therefore, most of customers requirements’ were disappointed.

Therefore, I would like to summarize my report into six dimensions, which I got via my market
research. Those are Customer Expectation and Satisfactions, Coverage Area, Value Added
Services, Pricing Strategies, Promotional Strategies and Other Strategies.
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Airtel Diversification - New Era For Bharti Enterprises          J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                            Contents of Airtel Diversification - 01


                                                               AIRTEL DIVERSIFICATION – 01




Customer Expectation and Satisfactions by Product Features ......................................................................... 4

   Marketing Techniques by Product Feature and Product Differentiation ..................................................... 5

       Air – Air or other network free outgoing Packages................................................................................... 5

       Free SMS Facility ....................................................................................................................................... 6

       Market Segment & Targeted Market Attraction....................................................................................... 6

Coverage Area ................................................................................................................................................... 8

Value Added Services (VAS) ............................................................................................................................ 10

Pricing Strategy ............................................................................................................................................... 11

Promotional Strategy ...................................................................................................................................... 12

Other Strategies .............................................................................................................................................. 13

Why Sri Lankan Market Is Most Important to Airtel Flagship Company of Bharti Enterprises? ..................... 15

                                                                AIRTEL DIVERSIFICATION - 02

Airtel Diversification - 02................................................................................................................................. 16

Targetable people, features of the services and ways of delivering the services or packages to the targeted
people. ............................................................................................................................................................ 18

Marketing, Distribution and Selling Strategies ............................................................................................... 21

Implemented Strategies ................................................................................. ERROR! BOOKMARK NOT DEFINED.23
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Airtel Diversification - New Era For Bharti Enterprises                                          J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
    1. Customer Expectation and Satisfactions by Product Features

Customer satisfaction will generated on us, when we provide the service focus solely on customer
expectation rather than focus on competitors. A general philosophy of a business to enter into the
new market or country is to analysis the existing competition and their strategy in that marketplace,
because this philosophy assume that, competitors are well know about the customer requirements in
that market.

Airtel adopted the same philosophy while launched in Sri Lanka. As this result, Airtel fail to
consider the customer requirements.

As Airtel is an Indian company and has very good reputation not only in India also in Sri Lanka,
customer expect more least cost offering than existing companies, such as Dialog, Mobitel, Tigo
and Hutch. They expect Airtel to satisfy into two different aspects, which are free outgoing or
SMS between Air-Air and Satellite network. Whereas, Airtel failed to satisfy the customers with
Satellite coverage, however, Airtel had loosed the customers in its first encounter with Airtel
pricing strategy, which is a 2 rupees charge for any networks.

Even though, Airtel’s pricing strategy might be cheaper than its competitors, but customers expect
more free offering. Therefore, Airtel might be offer this offering at least cost or as free of charge
for one month as a promotional period, once Airtel launched in Sri Lanka.

Anyhow, now also Airtel can implement some of the following strategies, which I developed focus
solely on customer requirements, which can be known as Market Orientation.

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Airtel Diversification - New Era For Bharti Enterprises   J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
    Marketing Techniques by Product Feature and Product Differentiation



   1. Air – Air or other network free outgoing Packages.
            Nowadays, customers are expecting free offering from network providers, meanwhile some of
         network providers facilitating with 1000 minutes free offers as packages. E.g. Dialog and Mobitel.


        Therefore, Airtel also can adopt this strategy, because this is very cheaper offer in the customer
        aspects, but in the provider aspects, can be able to earn accurate monthly income with no cost
        within Airtel’s network, meanwhile, can be able to earn variable income to meet other network
        connection charges, when a customer interact with other networks.

        Suppose for example:


        If Airtel offer 1000 or 1500 minutes free outgoing facility just for 200/= rupees, or 900 minutes
         free between Air-Air and 100minitus free with other networks just for 250/= or 300/=, then Airtel
         can be able to earn certain monthly income.


        E.g.
        Presently the Dialog Telecom has around 6 million active customers (total customer would be more
        than this amount but active customers are 6 mil); assume that, 2 million out of this 6 million are
        1000 minutes package holders, and then their monthly accurate income would be
         (2mi × 300/=) 600 million, which postpaid profit is greater than the prepaid profit, which generate
        from 4 million prepaid holders, because assume that, if a prepaid holder going to contribute at least
        1/= in each day, then their monthly income would (4mi × 1/= × 30 days) just be 120 million rupees.

        Therefore, Airtel also adopt this 1000 minutes outgoing packages, this strategy is helped to attract
        more customers as attracting strategy in the customer relationship hierarchy, and which help to
        Satisfy , retain with Airtel and enhance the customer relationship.




                                                          Enchaining

                                                          Retaining

                                                          Satisfying

                                                   Getting / Attracting
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Airtel Diversification - New Era For Bharti Enterprises                J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
        This strategy can also add with prepaid service as 500 minutes Air-Air outgoing free
        100/= rupees or 150/= or you can offer bundle of benefits such as free out going, free sms,
        and free data service (wap & Internet), but this strategy has following considerations.

   1. As experiences of huge inflation in Sri Lanka, customers do not have much money
        to reload once they needed, they can only pay in their salaries.

   2. Airtel’s competitors can also follow this strategy, but if they introduced this strategy
        now, then Airtel’s current demand will be reduced.

   3. Most of the customers have to depend on different kinds of products for various
        service providers. Say for an instance, for 1000 minutes out going – Dialog and
        cheapest & limited Internet service – Mobitel

        Therefore, if you offer these combine product, definitely you will be the market
        leader within 2010.



   2. Free SMS Facility


   Meanwhile, customers are also expecting free SMS facility from Airtel, therefore, Airtel may
   better to provide

        Very cheapest SMS services for 25 cents or 30 cents as possible, because this strategy
         help to maintain customer relationship by satisfying and retaining strategies in above
         hierarchy.

         Or

           Can charge just 100/= rupees for free SMS between Air-Air for one month for unlimited
         SMS or 500 or 400 SMS.



   3. Market Segment & Targeted Market Attraction



Airtel can identify the market segment according to their similarities and different needs, and then
may better to develop appropriate packages, which should satisfy the needs of targeted people.

Since, a market segment has unique needs, Airtel may better to develop a total product focus solely
                                                                                                         6
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on the needs of that segment will be able to meet the segment’s desire better than Airtel’s current

Airtel Diversification - New Era For Bharti Enterprises     J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
mass marketing strategy, due to this, customers also feel that, Airtel is always care about them.
Because, I got a research conclusion in my second year studies that, people always seek
discrimination.
E.g.
I identify some of market segment and its risk on return, applicable price or charges per month,
tools of communication, and distribution method. However, Airtel have to think about the cost for
both communication and distribution method.


                              Populatio
                                                                                                   Risk on    Price or Charges        Tools of         Distribution
   Targeted People               n in
                                                                                                    Return       per Month        Communication          Method
                                “000”
                                                                                                                                  Advertising
                                                                                                                                  Sales forces /     Airtel Branch,
           Couples                                                                                 Very Low   150/= × 2 = 300/=
                                                                                                                                  Stimuli in Park    Any Retail Shop
                                                                                                                                  or Beach
                                                                                                                                    Advertising
                                  Can get this details from Central Bank Report or Market Survey




                                                                                                                                    Sales forces /
 Friends or University                                                                                         150/= × 5 or 8                         Airtel Branch,
                                                                                                     High                            Stimuli in
          Students                                                                                                  SIM                              Direct Marketing
                                                                                                                                   campus, school
                                                                                                                                       or road
       Private Sector                                                                                                               Advertising       Airtel Branch,
                                                                                                   Very Low        250/=
         Employees                                                                                                                  Sales forces     Direct Marketing
Public Sector
Employees                                                                                                                           Advertising
       1.Teachers                                                                                                                   Sales forces      Airtel Branch,
                                                                                                   Very Low        250/=
       2.Hospital Staff                                                                                                             Publicity and    Direct Marketing
       3.Bank Staff                                                                                                               Public Relation
       4.Municipal
                                                                                                                                    Advertising
 Public Organizations
                                                                                                                                    Sales forces
   (CDMA i.e. Land                                                                                 Very Low        250/=                             Direct Marketing
                                                                                                                                    Publicity and
           phone)
                                                                                                                                  Public Relation
                                                                                                                                    Advertising
       Security Forces                                                                             Very Low        250/=            Sales forces     Direct Marketing
                                                                                                                                      & events
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Airtel Diversification - New Era For Bharti Enterprises                                                               J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Then, Airtel will be in the position to satisfy the whole elements of the Ansoff matrix via market
segment and niche market rather than mass distributions as follows.


< Ansoff matrix>

                                        Market
                             Existing                   New
   Product / Service
          Existing




                           Market                Market Development/
                         Penetration                  Expansion


                       Product / Service            Diversification
            New




                         Development




                                                      2. Coverage Area

In Customer Selection:

Another most important factor, which customer focus on the network selection is the coverage area
or reachable area. Most of customers think that, can they in the position to use the same network
provider wherever in the island, if a network provider has wide range of network than narrow
coverage, then the customers selection will be move on him, who has the wide network facility
rather on narrower.

To increase the profit via divers distribution:

Likewise, if a certain provider has huge coverage area, than compare with narrow providers, who
will be in the position to earn more profit with least cost, because who is going to earn marginal
profit from divers area or entire the nation with fixed administrative and labor cost.

Ex:

Before, the Dialog expand their business and coverage in North and Eastern provinces they faced
high competition within small and traditional area with few network providers, I.e. Mobitel, Hutch
and Tigo. However, once they expand their coverage to North and Eastern provinces, they surprised
about their Profit and success. Due to this, they achieved competitive advantage quickly.
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Airtel Diversification - New Era For Bharti Enterprises                J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Therefore, Airtel also better to adopt some of following techniques.

   1. Satellite based connection in clear areas.
   2. Tower based connection in North and Eastern Province, but Airtel can link each tower with
        Satellite.




                                              Satellite




                                             Cell Phones
               Airtel Tower                                     Airtel Tower


Due to this technique, Airtel can blame the government regulation and can compete with large
network provider i.e. Dialog and Mobitel; via this, Airtel can be able to achieve the competitive
advantage within short period of time.

Benefits:

    If Airtel offer these opportunities to North and Eastern provinces people, definitely Airtel
        can achieve the competitive advantage.

        Because,

             The market captured only by Dialog and Mobitel.

             Dialog is a market leader than Mobitel in North and Eastern provinces

             Price or Chargers of Dialog greater than Airtel’s offering

             Therefore, whole of customers rationally switch to Airtel’s brand once Airtel
                 lunched. Another reason is the, most of the North and Eastern province people
                 interact with Central and Western provinces, so they definitely switch to Airtel’s
                 brand as Airtel already have coverage in that provinces.

    A rational marketer focuses on the market, where there are no competition or least
        competition rather than high competitive market. However, now Airtel is successful in high
        competitive market, so definitely Airtel can break Airtel’s competitors, if Airtel expand
        Airtel’s network in North and Eastern provinces.
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Airtel Diversification - New Era For Bharti Enterprises     J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                   3. Value Added Services (VAS)

Most of the retaining customers focus on the VAS too rather than on just calling facilities.


A good marketer should focus on retention of customers rather on attracting a new customers,
because, attracting a new customer is high cost than the retaining an existing customers with our
Airtel, this strategy is known as a relationship market strategy, which pointed in the customer
relationship hierarchy.


This philosophy is important for two different reasons, which are
        1. Loss of a customer (our) is gain of our competitors, so we need to have appropriate
            VAS to retain our customers than compare with our competitors. So we need to update
            our services frequently, which focus solely on customer requirements other than our
            perception.
        2. Gain of a customer (our) is a lost of our competitors, so we need to have appropriate
            attracting and retaining strategies, with frequent updates, which focus solely on
            customer requirements other than our perception.


Suppose for example:

Picture Message, RingBack Tones, Fun SMS and so on, and such services can provide as very
cheap. Airtel has several VAS than compare with Airtel’s competitors, however Airtel can also
think about following features.


The Dialog using 077 facilities to contact with customers each and every minute, and which
especially use for attracting and reminding customers by arranging quiz and competition, and tips.
However, most of the people don’t willing to play a quiz or get a tip for 5 rupees.
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Airtel Diversification - New Era For Bharti Enterprises    J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Therefore, Airtel can use this opportunity to display such manner (like live 077) with different
offer, which may have the option

       Airtel can offer free ringback tone for first three or six months from the date that the
   consumer purchased the Airtel SIM. Thereafter,
       To active the popular song as RingBack Tones for 5 rupees on weekly bases.

 Because, most of Airtel’s competitors charging high amount for this RingBack tone facility for
   one month, so Airtel can provide this offer as very cheap for 5 rupees for one week. So
   ultimately Airtel can charge 20/= per moth. However, Airtel have to advertise that, Airtel’s
   charges just 5 rupees for one Ring Back tone.

       To receive a wallpaper for 5/=, based on mobile phone specification.

       Airtel can display fun SMSs by Airtel’s live services, and then Airtel can give the option to
   the customers to send it to their friends from their phone, then Airtel may better to charge
   normal SMS charges and can send it to both customer’s and recommended friend’s phones.
       You can offer SMS news alerts like other networks, however, in addition to that you can
   offer other Jokes (to cover youths, as they will be spenders in future), beauty SMS (to cover
   majority of Sri Lankan i.e. women), Topjobs SMS (to cover whole unemployed, as their ratio is
   high), TV and Lottery SMS (as most of Tamils wish to watch TV and as most of singles wish to
   check out their lottery numbers), Health SMS, Ringback tone SMS(if any interesting tone added
   into your system, you can advertise via this free SMS service and can charge just 2 rupees for
   changing their tone)

Anyhow, Airtel is having incredible VAS with Airtel’s services, however, the way of promotion or
displaying and pricing strategy and pricing scheme should change. Hence, if you provide these
services as free of charge at least for two months or with your postpaid and free prepaid (combined)
package, definitely you can capture 100% market share among personal customers (consumers not
a business customers).


                                             4. Pricing Strategy

Another key factor in customer selection process is the pricing of network provider. If a network
provider has flexible pricing strategy and provide convenience to the customers, then the selection
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on him will be greater than the firm, which has fixed and higher price.
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Airtel Diversification - New Era For Bharti Enterprises   J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Likewise, if Airtel introduce 50 cents outgoing facility rather than depending on 2 rupees outgoing
for any network, most of the cell phone users shift to Airtel’s brand (but, you can charge 49 cents,
because the 9 series pricing style have incredible impact on customer perception).

At the same time, the following facts also need to consider, while designing the price for services,
rather than on Competitors’ price and cost of services.

   1. I recommend to adopt odd pricing or line pricing method as I noted above, because, which
        pricing method in more powerful than others.

   2. As Sri Lanka experiencing of bad financial position, customer do not have sufficient money
        to reload, once they need. So Airtel may better to provide 200 or 300 minutes outgoing free
        facility for just 100/= of reload in prepaid connection rather than 49 cents outgoing.


                                        5. Promotional Strategy
Promotional strategies help the Airtel to attract the targeted people easily and quickly, therefore
 1.     Simple and two line advertising is best (like Airtel handling now). However, some of
   customers will not satisfy with those type ads, because, Sri Lankan are not familiar with those
   type of ads, so Airtel may better to provide

Proper information should available at Airtel’s branches, outlets or even in stimuli.

(Because, the aim of Airtel’s simple & two line Ads is to motivate the people to search the
information. If sufficient information is not available, dissatisfaction on Airtel’s ads and their time
will be increased. At the time, the investment and cost for ad will be ineffective)

 2.     Direct Marketing is best practice in Sri Lanka, but this method is cost consuming,
   however, Airtel can hire the school levers and offer salary based on their commission. That is
   the reason, I mention in target market table to use the D-MKT method for some targeted people.
 3.     Comprehensive Ads will support to Airtel in Sri Lanka, because, Sri Lankan mentality
   familiar with comprehensive rather than on information search.

 4.     Finally, Airtel may better to use any word to remember Airtel’s brand. Similar to Airtel
   theme music.

            E.g. Dialog ~ The Future. Today
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Airtel Diversification - New Era For Bharti Enterprises     J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Airtel also can use

                  Feel Free, Airtel is Independent or Secret & More Talking

            Ex:




                                            Airtel is. Independent




And, Airtel can also think about following promotional tools to promote Airtel brand to attract
targeted people at right time.


                    Selling                                   Advertising
                    Sales Promotion                           Direct Marketing
                    Publicity and Public Relation             Sponsorship
                    Exhibition                                Packaging
                    Good Word – of- Mouth                     e-marketing




                                            6. Other Strategies

   1. Airtel may better to introduce CDMA phones, as most of customers and organization
        willing to purchase a land phone with least cost. Therefore, Airtel can better to focus such
        demand on target market.



   2. Airtel may better to Donate or Sponsor to any social events in Sri Lanka.

        Therefore, Airtel can donate to

                         Important Hospital in Sri Lanka

                         Medical Operation to Childers (and, can advertise it)

                         Child care centers
                                                                                                                  13




                         Refugees fund to S.L. Government, this help to increase Airtel reputation in
                                                                                                                  Page




                          Sri Lanka and Airtel’s home country i.e. India, and so on.
Airtel Diversification - New Era For Bharti Enterprises              J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
        Can sponsor to

                         Any cricket match at school levels, but not in National cricket, because
                          Airtel’s Indian market will be affect.

                         University Van or Faculties Vehicles donation or some other way



   3. If Airtel plan to expand Airtel’s business into Eastern provinces, then Airtel can distribute
        Airtel’s SIM, KIT and other tools via agent, but planting the branches will raise more
        reputation in respective districts.

   4. Airtel may better to introduce per second billing system for prepaid services and minutes
        system for post-paid holders. Because, this is the only one benefit, that Airtel’s competitors
        holding than Airtel.

   5. Airtel can introduce reloading facility for postpaid connection at any retail shop, because
        most of customers do not have time to search and go for that purpose.

   6. I have to appreciate Airtel’s pricing strategy,

        Hence I could know that, Airtel is focusing on attracting the customers via Airtel’s pricing
        strategy. Anyhow, please provide Super value service to Airtel’s targeted customers with
        least cost, and then only, customer satisfaction and retention will be increased.

Therefore, Airtel can add one or more this techniques or feature with existing Prepaid and
Postpaid connection, and can formulate some special packages and prepaid connection focusing
on targeted people, then can communicate with appropriate channel to boost Airtel’s sales than
competitors to achieve the Competitive Advantage very soon……….
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Airtel Diversification - New Era For Bharti Enterprises       J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
   Why Sri Lankan Market Is Most Important to Airtel Flagship Company of

                                            Bharti Enterprises?


I perceived that, Sri Lanka cellular market captured only by few international firms, i.e. oligopoly
market. As huge level of inflation is experienced in Sri Lanka, if Airtel breakdown their competitors
with tight financial condition in Sri Lanka, then Airtel will be in the position to expand Airtel’s
business internationally, i.e. NIC countries. Moreover, if Airtel kaput their competitors in Sri Lanka,
this affect those competing firm to charge high amount or increase pricing level at their home
countries, at the time Airtel suddenly expand their services to that countries, and can brake the
firms in their home counties too.


As these international Expansion reasons, Sri Lankan market, marketing strategy and market
Orientation activities are essential to Bharti Enterprises.




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Airtel Diversification - New Era For Bharti Enterprises       J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
              AIRTEL DIVERSIFICATION - 02
                                          -NEW ERA FOR BHARTI ENTERPRISES-



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Airtel Diversification - New Era For Bharti Enterprises            J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                   “Airtel Diversification - 02”

                                               --Introduction—


According my Airtel Diversification – 01 Report, I recommended that Airtel should have proper and clear
target market and appropriate marketing strategies to attract the each targeted people rather than
depending on mass attraction strategies.


This report contains the most profitable customers group and the Marketing, Distribution and Selling
Strategies to reach, attract and keep those segments.




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Airtel Diversification - New Era For Bharti Enterprises     J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                    Targetable people, features of the services or packages and ways of
                        delivering the services or packages to the targeted people.

                                              Ways of delivering
                     Targetable Customers       the services or        Name of the Package       Features of Packages
                                                  Description

                                                                                                Outgoing & SMS are
                                             Advertise in mass
                                                                                                 entirely free between
                                              communication
                                                                                                 those two numbers.
                                              media.
                                                                                                Outgoing for Airtel &
                                             Sales forces visit to
                                                                                                 other Networks is 2
                                              University& Colleges.
                                                                                                 rupees.
                                              Park & Beach & Ect.
                           Couples                                     I’m Thinking of Airtel  SMS for Airtel & other
                                             Stimuli in Park, Beach
                                                                                                 network is 1 rupee
                                              or Road.
                                                                                                SIM deposit is 1000/- per
                                             SIM can be available
                                                                                                 SIM and
                                              at Airtel’s district
                                                                                                Monthly rental is 250/-
                                              office & Approved
                                                                                                 per SIM
                                              Dealer

                                                                                                 Delivery of 3 SIM &
Mobile Connection




                                                                                                  above
                                                                                                 100 SMS & 100 minutes
                                                                                                  outgoing free between
                                                                                                  those numbers(this
                                                                                                  should not include in
                                                                                                  1000 minutes free)
                                                                                                 1000 minutes outgoing
                                                                                                  entirely free among
                           Friends                     -do -              We are Friends          Airtel
                                                                                                 SMS for Airtel & other
                                                                                                  network is 1 rupee
                                                                                                 Outgoing for Airtel &
                                                                                                  other Networks is 2
                                                                                                  rupees.
                                                                                                 SIM deposit is 750/- per
                                                                                                  SIM and
                                                                                                 Monthly rental is 250/-
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Airtel Diversification - New Era For Bharti Enterprises                    J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                    Advertise the
                                     testimony of drivers
                                     in mass
                                                                                 Initial Deposit is 1500/-
                                     communication
                                                                                 Monthly rental is 300/-
                                     media.
                                                                                 Outgoing Free
                                    Sales forces visit to
                                                                                Air to Air 900 min
                                     Parking Stands.
                                                                                Air to Other 100 min
                                    Stimuli in Parking
                Drivers                                      Call us Quickly     SMS charge is 1/-
                                     Stand & Road.
                                                                                 Existing number
                                    SIM can be available
                                                                                   replacement system
                                     at Airtel’s district
                                                                                   with Airtel
                                     office & Approved
                                                                                 Three-wheeler lottery
                                     Dealer
                                                                                   system
                                    Lottery for Three-
                                     Wheeler


                                                                                  Free Prepaid or
                                                                                   Postpaid connection
                                    Advertise the                                 for family members
                                     testimony of family                          100 minutes free
                                     members in mass                               outgoing & 50 SMS
                                     communication                                 free among each family
                                     media.                                        member monthly from
                                    Sales forces visit to                         CDMA
                                     Families in villages.                        500 minutes free
                                    Stimuli in Road.                              outgoing for Airtel
                                    Connection can be                            Connect the family
CDMA




               Families              available at Airtel’s   We are in Touch       members’ numbers
                                     district office &                             with CDMA and can
                                     Approved Dealer                               charge
                                     Sales people                                  1/- for outgoing

                                    Can issue one or more                         50cents for SMS

                                     CDMA phone at lest                           Existing CDMA

                                     cost for Airtel’s                             replacement system &

                                     existing most                                 price reduction

                                     profitable customers                        Existing number
                                     (Mobile) as gift.                             replacement system
                                                                                                              19




                                                                                   with Airtel
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Airtel Diversification - New Era For Bharti Enterprises        J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                    Advertise the
                                     testimony of the
                                     companies’ Managers                        Can provide free
                                     in mass                                     intercom connection
                                     communication                               facility to those who
                                     media.                                      purchase a connection
                                    Sales forces visit to                       for their organization
                                     Each business                               by Airtel’s technical
                                     organization.                               staff.

                                    Connection can be                          Can provide FAX facility
                                     available at Airtel’s                       also.
                                     district office &                          Connection fee my be
            Organizations            Approved Dealer &       We are Proud        2000/- & monthly
                                     Sales people                                rental may be 500/-
                                    Can issue free CDMA                        Free outgoing for
                                     phone for selected                          Airtel is 700 minutes &
                                     organization.                               300 for other network.
                                    Can collaborate with                       Can issue free prepaid
                                     top management of                           or Postpaid SIM for
                                     important firms by                          employees.
                                     Airtel’s top                               Can be given discount
                                     management to                               on their talking hours.
                                     purchase Airtel’s
                                     Airtel product.




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Airtel Diversification - New Era For Bharti Enterprises      J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                        Marketing, Distribution and Selling Strategies

To distribute Airtel’s existing and new services to the targeted people, Airtel can access any of following
strategies...


    1. Airtel can issue the Airtel TV or CDMA connection as free or with least charge to Airtel’s existing
        customers, those who are more profitable in Airtel mobile connection. As this purpose, Airtel can
        get these profitable details from Airtel’s CRM (Customer Relationship Management) system, and
        can find out their amount of average spending with Airtel in every month. Then, Airtel can
        determine the average amount of spending with Airtel for distributing the CDMA & Airtel TV (400/-
        or 500/- monthly), then Airtel can distribute the CDMA & TV to Airtel’s existing customers, those
        who are spend above the average.


    2. Airtel may better to launch a district office at each and every district, and can assign the following
        responsibilities to the managers of that district office.


                a. To collect the information about both
                         i. Villages in that district and
                         ii. Population in each village
                    (This information can obtain in the D.S offices in that district)


At the time, the top management of Airtel can introduce a scheme as “Airtel for Every Home”, and which
has to advertise on the Mass media.


                b. Based on the information collected by the district office, they have to determine the village
                    and people have to serve first by the scheme of “Airtel for Every Home”.


                c. Where as, district office has to advertise by announcing around the village to meet at one
                    or more specific days at any popular venue or school in the village.


                d. At the time, district office’s staff can sell Airtel’s


                         i. CDMA phone with free SIM (for family members)
                         ii. Airtel TV/Satellite TV
                                                                                                                    21
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Airtel Diversification - New Era For Bharti Enterprises                J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
Meanwhile, Airtel can introduce a “Replacement” scheme to replace their existing CDMA phone and Dialog
TV, and Airtel may better to provide discount for those customers.


    3. Airtel may better to distribute Airtel’s products via Bank of Ceylon (BoC) or People’s Bank other
        than distributing via Singer or other outlets.

        Because, BoC has huge amount of branches and extension offices and much wider network facility
        across the nation and they have large customer base too, even in rural areas.

         Moreover, if Airtel join with BoC, which also give Airtel a good reputation on Airtel’s business.

At the junction, Airtel may

       Advertise in mass media about Airtel’s distribution at BoC

       Donate a CDMA / FAX affiliated with CDMA phone to each and every BoC branch and Extension
        office.(Indirect promotion to Airtel, because they will give Airtel’s Airtel number to their
        customers)

       Give commission on selling.

       Sell Airtel’s products to BoC customers by deducting an amount from bank account directly.

                         Alternatively, can sell to loan customers by holding their amount by the bank staff
                          too.

    4. Airtel may better to arrange any music show or can sponsor to any exhibition or any event weekly
        or monthly and can sell Airtel products by Airtel’s representatives at the event.

    5. Airtel may better to provide or implement a scheme for BONUS TALKING HOURS and BONUS SMS.

                 Based on the average time, which customer spending with Airtel in each month or Week,
                 Airtel can provide bonus taking minutes at the end of the day at every week.

                 Because, if Airtel provide bonus speaking minutes at weekly bases, this definitely be an
                 attraction on Airtel than compare with Airtel’s competitors, and this will be less expenses
                 than compare with monthly bases.


Current Customer
                          Is the Tool
                                                     To Reach
                                                                                                                22




                                                                           More Customers
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Airtel Diversification - New Era For Bharti Enterprises         J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                   Implemented Strategies
     Airtel introduced 49 cents pricing strategy according to my proposal (page 13) , Airtel Introduced
        per second billing system (page 13), and Airtel adopt my 25 cents SMS strategy (Page 06)




                                      Unlimited Friends for a year
Now you can enjoy amazing rates with your Airtel friends for a year.
•Reload Rs. 39 or dial *222# to subscribe for the per second plan
•Reload Rs. 49 or dial *222# to subscribe for the per minute plan
•The reload value on the per second and per minute plan is valid for one year.

                                       Unlimited Friends for a year
                        Description                          Per minute plan               Per second plan
Annual Subscription                                       Rs. 49                   Rs. 39
Airtel to Airtel
                                    Local calls           49 cents                 1 cent
24 hours                            MMS                   Rs.2                     Rs.2
                                    GPRS                  1 cent/Kb                1 cent/Kb
6am to 11 pm                        SMS                   49 cents                 49 cents
11pm to 6am                         SMS                   25 cents                 25 cents
Airtel to Others
24 hours                            Local calls           Rs. 2                    4 cents
                                    SMS                   Rs.1                     Rs.1
                                    MMS                   Rs. 2                    Rs. 2
                                    GPRS                  1 cent/Kb                1 cent/Kb
                                                                                                               23
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Airtel Diversification - New Era For Bharti Enterprises           J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
     The superior adaptation is Airtel Youth Plan - Combine product (page 06)




                                                   Youth Plan
                      Youth-Prepaid                                           Monthly Plan
Reload Value                                              Rs. 99
Features
Free Talktime (Airtel to Airtel voice calls)              200 minutes

Free SMS (Airtel to Airtel)                               1000

Free Data (Mb)                                            400 Mb

Facebook browsing                                         Free

News/Jokes and Cricket Alerts                             Free

Welcome Tune                                              Free

Validity                                                  30 days



     Provide free out going minutes for new customers for three months - (page 4-
           6)
    I highlighted the customers’ expectations on Airtel in order to attract more switching customers
    (prepaid), therefore presently they are offering 300 minutes free outgoing for first three months (100
    minutes per months).
                                                                                                                 24
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Airtel Diversification - New Era For Bharti Enterprises             J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
         Postpaid reload availability even in retail shop (page 14)
Most of Airtel competitors have postpaid reload availability in Banks, their branches or reputed
distributes. But Airtel introduce their top-up (post-paid holders) services even in any retail shops
with issuing bills for customers’ payments.




         Airtel use agent base sales in most of districts (page 14)
Airtel expand their market width to North and East Sri Lanka, and they are distributing their SIM,
and reload card via Agents as I recommended in this report. Hence, they also launch their branches
in every district.

(Airtel adopt my both strategies)




                                                                                                       25
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Airtel Diversification - New Era For Bharti Enterprises   J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
         Geographical Expansion in North and East Sri Lanka- (page 8 and 9)




                                                                                                       26
                                                                                                       Page




Airtel Diversification - New Era For Bharti Enterprises   J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
          Airtel Introduced several postpaid package meet several targeted
              customers – (page 5, 7, and 18-20)
While Airtel were entering into Sri Lankan market, they just came with prepaid packages; however,
I recommended for introducing postpaid packages; however, I also recommended for introducing
those in some innovative manners compare to already existing mobile companies to meet different
kind of target groups’ needs.

According to that, they introduced
     Celebration Packages
     299 Package
     Youth Plan
     300 Per Second Package
     Airtel Five Package


Details of those packages are given below

                                     Celebration Suite of packages
              Description                       Celebration 300       Celebration 600        Celebration 1800
 Activation Fee (Rs)                        950                   950                    0
 Local Call Deposit                         0                     0                      0
 Annual Fee (Rs)                            0                     0                      1800
 Monthly Commitment (Rs)                    300                   600                    0
 Monthly Rental (Rs)                        0                     0                      0
 Monthly Discount ( Rs)                     300                   1200                   150
 Other Benefits                             -                     -                      -
 Outgoing Calls
                         Airtel to Airtel   49 cents              49 cents               49 cents
                    Airtel to Other(Rs.)    2                     2                      2
 SMS
 Airtel to Airtel       6 am to 11 pm       49 cents              49 cents               49 cents
                        11 pm to 6 am       25 cents              25 cents               25 cents


 Airtel to              24 hours            1                     1                      1
 Other(Rs.)

 International SMS(Rs.)                     5                     5                      5
 Incoming Calls                             Free                  Free                   Free
 MMS (Rs.)
                         Airtel to Airtel   2                     2                      2
                        Airtel to Other     5                     5                      5
 Rate
                                   Price    1cent per Kb
                                                                                                                     27
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Airtel Diversification - New Era For Bharti Enterprises                 J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                                    299 package
                       Description                                                       G299
Activation Fee (Rs)                                              950
Local Call Deposit                                               0
Annual Fee ( Rs)                                                 0
Monthly Commitment (Rs)                                          0
Monthly Rental (Rs)                                              299
Monthly Discount (Rs)                                            299
Other Benefits                                                   100 Video Minutes Free A2A
Outgoing calls
                                            Airtel to Airtel     49 cents
                                       Airtel to Other (Rs.)     2
SMS (Rs.)
Airtel to Airtel               6 am to 11 pm                     49 cents
                               11 pm to 6 am                     25 cents


Airtel to Other                6 am to 11 pm        (Rs.)        1
                               11 pm to 6 am        (Rs.)        1


International SMS                                 (Rs.)          5
Incoming Calls                                                   Free
MMS(Rs.)
                                            Airtel to Airtel     2
                                            Airtel to Other      5
Data
                                                   Speeds        3.6 Mbps
Rate
                                                      Price      1cent per Kb


                                                   Youth Plan
                      Description                                               Youth Package
 Local Call Deposit                                         1000
 Monthly Rental (Rs)                                        99
 Outgoing calls
                                         Airtel to Airtel   49 cents
                                    Airtel to Other (Rs.)   2
 Incoming Calls                                             Free
 SMS (Rs.)
 Airtel to Airtel             6 am to 11 pm                 49 cents
                              11 pm to 6 am                 25 cents


 Airtel to Other              6 am to 11 pm        (Rs.)    1
                              11 pm to 6 am        (Rs.)    1
 International SMS                                 (Rs.)    5
                                                                                                                     28




 MMS                                                        49 cents
 Data                                                       60 cents per 1 MB
                                                                                                                     Page




Airtel Diversification - New Era For Bharti Enterprises                 J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
                                           300 Per Second Plan
                       Description                                                     Tariff
Activation Fee                                                  N/A
Local Call Deposit(Rs.)                                         1000
Monthly Rental(Rs.)                                             300
Free Seconds to Airtel Numbers every month                      36,000
Outgoing calls
                                            Airtel to Airtel    1 cent
                                            Airtel to Other     4 cent
SMS
Airtel to Airtel                6 am to 11 pm                   49 cents
                                11 pm to 6 am                   25 cents


Airtel to Other                 24 hours                        1


International SMS(Rs.)                                          5
Incoming Calls                                                  Free
MMS (Rs.)
                                            Airtel to Airtel    2
                                            Airtel to Other     5
GPRS                                                            1cent per Kb


                                             Airtel Five Package
                          Description                                      Main Line             Supplementary
Monthly Rental(Rs.)                                                 99                      49
Activation Fee(Rs.)                                                 500                     200
Local Call Deposit(Rs.)                                             1000                    NA
Free minutes (within the group)                                     200                     100
Outgoing calls
                                           Within the group         49 cents                49 cents
                                             Airtel to Airtel       49 cents                49 cents
                                        Airtel to Other(Rs.)        2                       2
SMS
6am-11 pm
                                           Within the group         25 cents                25 cents
                                             Airtel to Airtel       49 cents                49 cents
                                             Airtel to Other        50 cents                50 cents
11pm-6am
                                           Within the group         25 cents                25 cents
                                             Airtel to Airtel       25 cents                25 cents
                                             Airtel to Other        50 cents                50 cents
International SMS(Rs.)                                              5                       5
Incoming Calls                                                      Free                    Free
MMS (Rs.)
                                             Airtel to Airtel       2                       2
                                             Airtel to Other        5                       5
                                                                                                                        29




GPRS                                                                0.10 per 10 Kb          0.10 per 10 Kb
                                                                                                                        Page




Airtel Diversification - New Era For Bharti Enterprises                    J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)
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Airtel Diversification - New Era For Bhart i Enterprises                   J.K.WILLIAMS B.B.A IN MKT(1ST CLASS HONOR)

				
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Description: JK’s Strategies on Airtel