Abstract

The case gives an insight into the various promotional strategies implemented by the major cellular service providers in the Indian cellular market. The GoI’s decision to liberalize the telecom sector in 1994 transformed the entire telecom industry, with many private companies foraying into the sector. With the consequent grant of licenses for providing cellular services, there was a surge in the number of cellular services providers which continued till the late 1990’s. By the year 2000, stiff competition between players in the cellular market prompted each player to formulate more novel strategies in order to retain their market share. Most of the promotional strategies revolved around capturing the younger generation who formed a major part of the target market. Celebrity endorsements, special season offers, festival discounts, and innovative advertisement campaigns were used by the cellular service providers as tools to push back the competition and increase their market share.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The evolution of the Indian telecom industry
• The factors that played a major role in the establishment of the cellular services market in India
• Compare the various promotional strategies implemented by the major players in the cellular services market.

Keywords

Indian Telecom Sector, Bharti Tele-Ventures Limited, Bharat Sanchar Nigam Limited, Hutchinson-Essar limited, Idea Cellular limited, Reliance India Mobile, Global System for Mobile Technology, Code Division Multiple Access, Celebrity Endorsements, Department of Telecommunications, National Telecom Policy, R-World, “RIM Celebrations”, MTNL, Telecom Regulatory Authority of India.