Promotional Strategies of Cellular Service Providers in India
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Case Details:
Case Code : MKTG106
Case Length : 11 Pages
Period : 2000-05
Pub Date : 2005
Teaching Note : Available
Organization : -
Industry : Cellular Industry
Countries : India
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"What other operators have achieved in one to two years, Bharti has done in just over a month. In July 2002, one out of every two people buying a mobile across India chose AirTel. We are truly proud to be spearheading the mobile revolution in the country."1
- Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures in 2002.
"It is the technology advantage and not the lower rates that is attracting more and more customers to Reliance India Mobile."2
- Kaushik Roy, Head of Marketing, Reliance India Mobile in 2003.
"Today's consumers do not want to hear the virtues of a brand, they are interested in specifics and that's what our campaigns always do."3
- Samuel Selvakumar, CEO, Hutch - South India in 2004.
Introduction
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After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). All the players except RIM offered services based on the Global System for Mobile (GSM)4 technology. RIM provided services based on Code Division Multiple Access (CDMA)5 technology as well as GSM. As competition in the telecom arena intensified, service providers took new initiatives to woo customers.
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Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. The most important consumer segments in the cellular industry were the youth segment and the business class segment.
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The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. (Refer Exhibit II).
Hutch implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. |
Promotional Strategies of Cellular Service Providers in India
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