Airtel - Positioning (And Repositioning)
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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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Background Note Contd...
However, it was not very easy for the company to build Airtel brand. The tariff rates charged by the government were quite high. Cellular players has little choice but to impose high call charges on their customers. Airtime rates were as high as Rs 16 per minute as against Rs 1.20 for landline communication. Thus, all players targeted the premium sector, which could afford the rates. Airtel was also positioned in the premium category, aimed at the elite class of the society.
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Though industry observers felt that this limited its market and that Bharti could have focused on increasing customer awareness (by explaining to them the various advantages of cellular phones), Bharti thought otherwise. As per a company source, the strategy might not have worked as the value delivered by cellular phones during that phase did not match the cost. During the late-1990s, many international players such as 'Orange' announced plans to enter the Indian market. The global telecom market was getting saturated and these companies were searching for countries with untapped potentials to increase their markets. |
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In the words of Hemant Sachdev (Sachdev), Director (Marketing), Bharti Group, "Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand."
Repositioning Airtel
The above realization led to the launch of the 'Leadership Series' campaign, which featured successful men and women with their deluxe cars, carrying laptops and using cell phones. A company source said that the campaign was aimed at positioning Airtel as an aspirational brand, which was meant for leaders and celebrities. The surveys conducted after the launch revealed that people began associating three core benefits with the Airtel brand - Leadership, Performance and Dynamism. Other supportive values associated with the brand-included courtesy, politeness and efficiency.
The campaign was reportedly successful and resulted in a marginal improvement in Airtel's performance. By 1999, Bharti had become the leading cellular player in Delhi (its major market) with a subscriber base of over 0.38 million. However, the growth was still much below the company's expectations. Meanwhile, as the competition in the sector intensified, the government also decided to reduce tariff rates.
As a result, the players made all efforts to extend their horizons to reach customers across all sections. Essar, the nearest competitor of Airtel, began offering tariff plans, schemes and services that were identical to that of Airtel. Much to Airtel's chagrin, Essar's subscriber base began nearing that of Airtel. In early-2000, in its attempt to understand the customer's psyche, Airtel conducted many brand tracking exercises.