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Airtel vs Vodafone Marketing Strategy

1723 words (7 pages) Essay in Marketing

12/06/17 Marketing Reference this

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AIRTEL is a service from Bharti Cellular Limited – a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti Airtel provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced Direct To Home(DTH) services. Bharti manufactures as well as exports telephone terminals and wireless phones. Other than being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the US. Bharti is the leader in cellular services, with its hold in 22 states including all four metros and more than 8 million satisfied customers.

VISION

To be admired around the world for telecom services that delight customers.

MISSION

To meet global standards for telecom services that satisfies customers through:

  • Customer Service Focus
  • Empowered Employees
  • Innovative Services
  • Cost Efficiency

The strategic objective is to consolidate its leadership position among mobile service providers in India. Through its subsidiaries, Bharti has licences to provide GSM services in 15 of the 22 telecom circles in the country. It now proposes to consolidate all these subsidiaries under Bharti Cellular.

QUALITY STATEMENT

We will deliver error-free services to our customers by doing our jobs right the first time, every time – this is your quality statement.

CORPORATE ASSET FOCUS

The Chairman and Group Managing Director of Bharti Televentures, Mr Sunil Mittal, has sold his entire personal stock, accounting for about 0.15 per cent stake in the company, or a consideration of over Rs 60 crore on New Delhi, March 11.

Share Holding

Indian Promoters : 46.6%

Foreign collaborators : 0.0% Indian inst/Mut Fund : 2.7%

FIIs/GDR : 9.2%

Free float : 41.5%

Shareholders : 40,315

ABOUT BHARTI

Bharti Tele-Ventures Limited was incorporated on 7th July 1995 for promoting investments in telecommunication sector. Its subsidiaries operate telecom services allover India. Bharti Airtel is India’s leading private sector provider of telecommunication services based on a strong customer base consisting of approximately 11.50 million total customers which constitute, approximately 10.66 million mobile and approximately 836,000 fixed line customers, as of February 28, 2005.

The company at present covers mobile services in 21 out of 23 circles in India. The company also provides fixed line services and Internet access in 6 circles. The company complements

its mobile services with both national and international long distance services. The company even has a submarine cable landing station at Chennai, which helps in connecting the submarine cable which connects Chennai and Singapore. The company gives very reliable end-to-end data and enterprise services to the corporate customers through its nationwide fiber-optic backbone, last mile connectivity in fixed line and mobile circles, VSAT, ISP and international bandwidth access through the gateways and landing stations.

In September 2002, Bharti leveraged its pan-India footprint to offer some never before benefits to our customers. These succeeded in re-defining customer expectations and are fuelling growth of the mobile category in the Western region. The benefits included a 30-second pulse, free roaming on AirTel networks across the country, incoming calls free from any AirTel to AirTel mobile and free airtime on one international, one national and one local number without any monthly charges. Bharti Cellular has invested Rs 1500 crores in the Western region. This investment is to be raised further as the roll out gathers more momentum.

SELECTING AND MEASURING THE RIGHT COMPONENTS FOR A SUCCESSFUL CRM STRATEGY

  • Examine the role of Data mining to create differentiators
  • Determine how CRM is applied in a prepaid business
  • Using Call Center technologies for one to one relationships
  • The role of the Front line in CRM success
  • Measuring the Return on Investment of CRM after its implementation

BEST PRACTICES FOR ANALYTICAL APPLICATIONS IN THE TELECOM INDUSTRY

Designing your analytical applications to facilitate:

  • Useful segmentation methodology and techniques
  • Effective churn analysis and prediction
  • Successful cross and up-selling
  • Targeted acquisition
  • Accurate price plan analysis

STRATEGIES ADOPTED

Focus on maximizing revenues and margins;

  • Capture maximum telecom revenue potential with minimum physical coverage;
  • Offer multiple telecommunications services to customers by giving a “one-stop shop” solution to all problems;
  • Position themselves to tap data transmission opportunities and give advanced mobile data services;
  • Focus should be on satisfying and retaining customers by ensuring high level customer service;
  • Utilise the strengths of its strategic and financial partners; and
  • Emphasize on human resource development to attain operational efficiency.

ABOUT VODAFONE:

Vodafone is one of the leader of telecom industry in india after they aquire Hutch for entering in the Indian market. Vodafone founded in 1980 by Sir Earnest Harrision. He was the chairman of Recal Electronics. Vodafone is one of the strong competitor of Airtel. It has own customer as it uses the old customer base of Hutch. Vodafone has also very strong hold in technical field as they have very efficient staff. Vodafone has a very strong connection point by which they attract people to take their connection as compare than other telecom giants like Bsnl, Aircel etc. Vodafone has their headquater in Newbury,United kingdom. It is a worlds leargest telecom company by revenues and worlds second leargest by subscriber.

MARKET SHARE OF VODAFONE:

Vodafone has 17.5% of market share as compare to Airtel which has 24.7% and Reliance has almost 18.4% of market share.

Vodafone vs. Airtel: The NAKED BATTLE

The battle for this huge Indian telecom sector has just geared up. In fact it now it has moved into the next stage. The fight is to enter the market, build a good customer base and merely generate revenue through sales is no longer the only business model. The two big players in the Indian telecom service industry namely Airtel and Vodafone have established themselves in a long while. It is now time to hold their position and also grow their sales figures. The battle is no longer restricted to providing a telecom service on a cheap and affordable handset but It is now about making more money through the network service.

The other players in the sector like Idea , Indicom and Aircel, Airtel still about generating revenues by simply getting people to use their connection. In other word they are trying to make money by getting people to sign up for their prepaid or postpaid plans.

For the big fishes of the telecom industry– Airtel, Vodafone and BSNL who already have an established consumer base ,it is about enter in to areas in the country that have poor telecom access like the rural places. They have their own funds.

But more important that while the latter is a simultaneous process the immediate objective is to make more money by providing extra service on their network. That way there’s a chance of generating more revenue in addition to the prepaid and postpaid tariffs they anyway rely on to make money.

In this area both Airtel and Vodafone are relying on. More importantly it’s for the first time in the Indian mobile services market that a company has emerged as the major competitor to Airtel.

Since Vodafone entered the Indian market through its buying of Hutch in India has impact a threat to Airtel but it after a while it not working at all for companies benefit. BUT definitely it helped them that Hutch had a good customer base.

Moreover presently the battle has intensified onto the network services. Both Airtel and Vodafone have been trying to get people to use their network for almost everything from cricket commentary to horoscope or news alerts. From Prayer songs to dating advice is now easily available at a cheap monthly rental which is how both companies are making money.

The motive reflected by both the companies has been pretty clear. Clearly both realize that it’s a great opportunity for them.

CONCLUSION

Airtel have faced some challenges in the INDIAN market by another big telecom sector Vodafone to be in the leadership position. We can easily say that Vodafone and Airtel, the two big Telecom sectors are fighting with each other to increase their consumer in the telecom market in INDIA. They even started their network for cricket commentary, horoscope, dating advices, holy prayer songs and many others new things to satisfy their customer. On the other hand we can easily say that they are trying to make more money in the INDIAN market.

The main similarities of the two giant telecom sectors are they have same pricing strategies and the same market segmentation.

The biggest positive point of Airtel is their network connectivity and their GPRS service, in this factor Vodafone stands behind the Airtel.

The differences between Airtel and Vodafone are the target customer of Airtel is up market class of people but the target customer of Vodafone is middle class people. So that Airtel creates its image as lifestyle brand whereas Vodafone positions itself as common man’s brand.

Industry experts say that the key future growth lay in making the Airtel brand attractive in the INDIAN telecom market it should acquire the urban people as well as the rural masses where the bulk of future growth is expected.

Now a day’s Airtel trying to take some new schemes to promote themselves on the mind of middleclass people. They adopt the strategy by providing a new connection with the NOKIA, which is the leading mobile handset company. By which many users buy Nokia handset get a free connection of Airtel. Airtel get success a big market share by taking Celebrity Endorsement strategy.

It can said that since both the parties are the good in telecom sector and the they keep on launching different valuable schemes so it can be said that whatever the case may be ,the user is always has the best of both of the optons.

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