AIRTEL MAGIC – SELLING A PRE-PAID CELLPHONE SERVICE
BACKGROUND NOTE Contd..
Through Magic, Bharti targeted the infrequent users of
mobile phone. Acquiring Magic connection was very easy – all a customer
needed to do was walk into an outlet (selling Magic) with a handset. Here
the customer was provided with a pre-activated SIM card4
(which had to be loaded with the calling value) and a recharge card (which
was required for loading the calling value into the SIM card). These cards
were valid only for specific period (beyond which the services could not be
availed), depending on the value of the recharge card loaded. Whenever a
customer utilized his Magic card, a specific amount was deducted as per the
applicable tariff rates. Customers were required to recharge the card before
the expiry of the validity period to avail the services (further).
When the card was recharged, customers were provided with a new calling
value possessing a new validity period. The company provided a grace period
of 30-90 days based on the denomination of recharge card. However, no
incoming or outgoing calls were allowed during this period.
The attractively designed Magic cards could be activated/recharged by using
a 16-digit number. Bharti adopted the international ‘scratch system'for
Magic cards, that is, customers were required to scratch a marked area on
the card to acquire this service recharge or activation number.
To establish Magic as a brand and make it more accessible, Bharti focused on
its distribution strategies. Apart from company outlets, Magic was made
available at departmental stores, gift shops, retailing outlets, telephone
booths and even ‘Kirana'stores (small grocery shops). Besides the absence
of rental hassles and security deposits, Magic offered features such as
instant connectivity, pre-activated STD/ISD facility (customers did not have
to maintain a minimum balance in the pre-paid card for utilizing the STD/ISD
services), voice mail and short messaging service (SMS). To meet the
requirements of varying customer groups Magic was made available in various
denominations (ranging between Rs 300 to Rs 3,000). Due to its innovative
and customer-friendly features, Magic came to be credited by industry
observers for bringing about dynamic changes in the Indian cellular services
market and expanding the cellular user base.
Thus, providing affordable and easily accessible services to all sections of
the community and maintaining strong relationship with customers, Magic was
able to differentiate itself from other pre-paid cellular services. Magic
soon became the market leader and was the most visible pre-paid cellular
brand in the country – aided by Bharti's (and Airtel's) strong presence in
16 states of the country (reaching around 400 million customers). By 2002,
it became the largest selling pre-paid cellular card in India.
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[4] Subscriber Identification
Module (SIM) card is a smart card that allows cellphone users to make and
receive calls. The SIM card contains a microprocessor chip, which stores
unique information about the user account, including his phone number and
security numbers, thus helping the network to identify the user. |
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Contents...
Casting The Celebrity Magic
Background Note
All Set To Create Magic
The Industry Strikes Back
The Future – Far From Magical
Questions For Discussion
Exhibit I
Exhibit II
Exhibit III
Exhibit IV
Cellular Service Subscriber Base In India
Additional Readings & References
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