Airtel - Positioning (And Repositioning)

Details

Themes : Positioning
Period : 1990-2003
Organization : Bharti Cellular Limited
Pub Date : 2003
Countries : India
Industry : Cellular

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Case Code : MKTG037
Case Length : 12 Pages
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Repositioning Airtel Contd...

These exercises revealed that though the Leadership campaign had been effective, it failed to attract more customers, as it had failed to add an emotional dimension to the brand. Analysts perceived the brand to be distant, efficient and cold. In words of Preet Bedi, Director, Lowe India, "The brand had become something like Lufthansa - cold and efficient. What they needed was to become Singapore Airlines, efficient but also human."

The surveys also revealed that the concept of leadership was itself undergoing a transformation. The public increasingly perceived leaders as people who worked with a team to achieve common objectives rather than those who dictated terms to their subordinates.

The surveys indicated that 50% of the new subscribers bought a cellular phone service brand on the basis of suggestions made by their friends, colleagues or family members. On account of this information, Bharti realized that its existing customer base could be used to promote the brand and expand its market (as these customers could endorse the brand) and thus focused on building a close relationship with them.

According to company sources, these brand-tracking exercises helped it realize the fact that in a business where customer relationships were of paramount importance, lacking an emotional or humanized touch was a major weakness. Hence, to gain a competitive advantage, Bharti decided to humanize the Airtel brand.

Commenting on the decision, a senior executive of Essar said, "The leadership series was okay when you were wooing the crème de la crème of society. Once you reached them you had to expand the market so there was need to address to new customers." In August 2000, Bharti launched its new 'Touch Tomorrow', which aimed at strengthening its relationship with its customers. Bharti's advertisement expenditure for the year amounted to Rs 450 million.

The advertisements spanning the print, electronic and outdoor media (for these campaign) featured cellular users surrounded by caring family members. Commenting on the rationale behind the new campaign, Sachdev said, "The new campaign and positioning was designed to highlight the relationship angle and make the brand softer and more sensitive."

According to company sources, the new positioning was aimed at developing a strong relationship with the customers. Sachdev said, "Mobile telephony is taken for granted - in one of our researches, consumers have described mobile telephony as being 'kept close to the heart.' What is adding a new dimension to the cellular category is the advent of new features like roaming, SMS, and the Net, which are taking communication beyond voice to data and video.

This has tossed a challenge: how to bond with consumers." Explaining the need for repositioning, Sachdev said, "Airtel was perceived as a premium brand. The new positioning is intended to add warmth to these attributes." In line with the company's objectives, the new TVCs and advertisements focused on highlighting Airtel as a brand that made it possible for customers to derive all benefits of cellular telephony.

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