Marketing Strategy of Airtel | Airtel Marketing Strategy
Airtel, one of the three world’s largest mobile-based telecommunication multinational Indian companies, is operating in almost 20 countries around Africa & Asia. With 22 telecom centers across India and Airtel Marketing Strategy, it has become the largest integrated service provider.
Targeting, Positioning, and Segmentation in Airtel’s Marketing Strategy:
Airtel uses a combination of segmentation tactics to segment its services like SMS plans/basic calls / postpaid/prepaid plans, cellular tunes and VAS data, etc. Segmentation on a geographical basis in the markets of East, North, West, South, and central areas along with segmentation based on demographic factors like income, social group, and age takes place. Different campaigns for different geographic regions are running independently. They are according to the preferences of the individuals of that region. Its different campaigns are targeting different generations over the time period by using specific campaign slogans for Gen Z based on 15-25 age group and currently launched baby boomers & Gen X.
Airtel has always been the top choice of mobile phone users for a long time and is benefiting from its leadership impact in most of the markets. It has changed its logo with a clear direction to reposition itself as an energetic, young, and internationally recognized brand. Its ever-growing evolution has made its torchbearer for other telecom industries in India.
Its mission is to win customers and keep them satisfied and well served for life.
Its vision is enriching the lives of its customers followed by its obsession to win customers through exceptional experience and keep them satisfied and bound for life.
Its tagline “Smart-phone Network” is short and summarized.
Marketing Strategy of Airtel | Airtel Marketing Strategy
The Benefit of Competitive Advantage of Airtel in its Marketing Strategy:
Airtel is outperforming its competitors with the help of many recent thoughtful steps like Indus tower formation, partnering with Vodafone & Idea for operation in India. Its infrastructure is extended in the country’s extreme parts with the purpose of nationwide penetration; provides better connection, less operational cost than other competitors, better connectivity, and better user service, and less signal drop.
Airtel has a competitive advantage due to its excellent telecom network towers. In most locations, entrants prefer to rent cheap costing- the existing infrastructure of Airtel rather than newly set up towers. Its variety of promotions and extensive spending on the advertisement has always been helping it to become the market leader. Story telling-based free form of advertisement is the best for promotion and Airtel is completely winning this. Airtel is best known for its creativity & innovation and other pioneer strategies like lifetime prepaid, My plans, Hello tunes, Airtel live, M check, and a never-ending list.
Use of BGG Matrix:
4 strategic business (SBU) units of Airtel occupying different locations of the BGG matrix are
Mobile services can be taken as a star, as it has 22 operating telecommunication circles in India making it the largest cellular services provider in India, based on customers and market shares (22.7%).
Services like telecommunication-media fixed-line are dogs ever since a phenomenal decrease is faced in overall services of the industry.
High-speed fiber-based broadband is questionable as 126,357Rkm fiber is laid down which should make it the best class network but presence is limited to tier-1 based city location and 87 metros only, further investment for improved market shares and moving to stars is needed. Business with large enterprises is also questionable as is it provides an opportunity of a wide portfolio of available services to large enterprises, small medium and large businesses, customer care, and Government but it offers services at a higher rate than other players. Digital services like TV are stars, as Airtel owns 18% market shares of DTH services. Which are only less than Dish TV shares, and has a tough competition with TATA.
It has a vast, effective, and simple channel structure. The company uses 3-tier and 2-tier network distribution system.
Under a network of 2-tier distribution, the company appoints urban distributors (UD) & Rural Suppliers (RS). UD supplies items to specific retailers depending on their demand and transfers easy method balance to retailers by using field officers sales (FOS) SIM that works under urban distributors.
Under a network of 3-tier distribution, rural suppliers (RS) supply items to rural distributors (RS) and a transfer of easy balance takes place into RDs SIM that then supplies this to retailers.
Apart from these, companies also make use of Relationship centers of Airtel working under franchises & officials of the company for corporation sales.
High TOMA, ARPU, and enhanced distribution system and high subscribers (300 million+) have helped Airtel to gain market leader position for years. It has also shifted from a great technological brand into a communication brand. They have achieved this with the help of their consistently evolving branding and marketing efforts. It has also rechristened its previous logo to make it a further young, energetic, and international brand.
As a torchbearer in Indian’s telecom industry, it has refigured the telecom industry in all these years. From 18.3% tale density in FY’07, it has increased to 75.2 FY’14 according to DOT data, the industry has been growing with high momentum. Reliance was initially targeting B and C customer-based segments. However, they lost their shares to already existing and new companies like Vodafone, Idea, BBSNL, and Tata-Docomo, etc. because of their customer and network issues. MTS, TATA Indicom like wireless data players have great market shares in specified circles. However, Airtel is still trying to find ways to be established due to more data charges.
There is high competition in the telecom market as every company tries to retain its users while also increasing ARPU. So, local and small players like Aircelwho and Uninor are giving stiff competition to Airtel. Aircel, present in limited circles, and other players like Vodafone, are fighting to emerge strongly as market leaders. It is causing serious competition to other companies. Data services, connectivity and VSA will be driving forces for the telecom industry.
Customer groups are divided into 3 segments A, B & C based on their distinctive needs while majorly B segment is targeted that is middle-class customers having inspirational needs, and also it is a fast-growing segment. To manage corporate and A-class clients dedicated workforce is available. Airtel gives priority to its both customers BCC and also B2B.
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