Comparison Between Bsnl And Airtel Marketing Essay

Introduction of BSNL

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World’s 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new

telecom services with ICT applications in villages and wining customer’s confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OF Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. It is India’s largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India’s oldest and largest Communication Service Provider (CSP).

Currently has a customer base of 73 million as of June 2008. It has footprints Throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL.

To look for details and to collect data for my project I worked in B.S.N.L Office to gather full information about the system and working of whole region and found out the facts about various processes adopted by reliance to pay its advisors and the time period taken for this study are 2 months.

THE BSNL SERVICES

BSNL LANDLINE

PHONE PLUS SERVICE

€ NEW TELEPHONE CONNECTION

€ PERMANENT CONNECTION

€ CONCESSION IN RENTALS

€ SHIFT OF TELEPHONE

€ TRANSFER OF TELEPHONE

€ TELEPHONE TARIFF

BSNL MOBILE

·€ POSTPAID

·€ PREPAID

·€ GPRS/WAP/MMS

·€ TARIFF

·€ SMS & BULK SMS

BSNL WLL

INTERNET SERVICES

·€ NETWORK

·€ BROADBAND

·€ TYPES OF ACCESS

·€ WI-FI

·€ BSNL WEB HOSTING

·€ DIAL UP INTERNET

BSNL BROADBAND

·€ REGISTER ONLINE

·€ TARIFF

·€ CHECK USAGE

Marketing strategies of BSNL

Marketing vision of the BSNL has to be based on overall

mission and vision of the organization. The mission of BSNL is

i. To provide world class State-of-art technology telecom services on demand at affordable price.

ii. To provide world class telecom infrastructure to develop country’s economy.

And the vision of BSNL is

i. To become the largest telecom Service Provider in Southeast Asia.

In dynamic environment anything permanent is “CHANGE”.

So we must revise and review so that focus is never lost.

Marketing Objective

The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. ‘delighting’ the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with. Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organisation. Successful Marketing focuses on understanding the needs and desires of the customers and is achieved by placing these needs at the heart of business by integrating them with the organization strategy, people, technology and business processes. At its most basic, Marketing involves customers, organisations and relationships and the combination creates the need for the management. Marketing is about creating a competitive advantage by being the best at understanding, communicating, and delivering and developing existing customer relationships in addition to creating and keeping new customers. The concept of the product life cycle is giving way to customer life cycle, focusing on developing products that anticipate the future needs of existing customers and creating services that extend the existing customer relationship beyond the mere transaction. The customer life cycle will focus on lengthening the life span of the customer with the organisation rather than the endurance of a particular product. Customers have changing needs as their life styles alter- the development and provision of products and/or services that continuously seek to satisfy those needs is good Marketing. The Marketing will focus greater attention on how to deliver customer satisfaction and organisation will begin to structure itself around customer segments and not product lines. A good Marketing Strategy will take the business vision and apply it to the customer base.

“Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

Several Steps have been taken at BSNL to augment the

quality of customer care to international standards

Access round the clock help at following toll free

Numbers

Dataone Broadband ‘1600-424-1600’

PSTN Call Center ‘1500’ (in select states)

Sancharnet Help Desk ‘1957’

CellOne all India Help ‘9400024365’

All BSNL Customer Service Centers (CSCs) now remain open on all seven days from 8.00 AM to 8.00 PM without any break for all activities.

Cheque deposit machines have also been installed in many cities, so that customers can make payments 24X7 at their convenience.

Customers can also make payments by cheque/Demand Draft to BSNL franchisees all over the country.

With a view to simplify and offer customer friendly services, more than one connections can be applied on a single application form. Accordingly, a single demand note would be issued to the customer in respect of all the connections applied for.

Shifting charges for local as well as all India

shifting of fixed telephone has been abolished.

Pagers being given to outdoor staff in a phased

manner for speedy rectification of faults.

Majority of the local network is built up on jelly.

filled and OFC for trouble free service.

Internal Distribution Points (DPs) being provided

in the customer premises to eliminate the faults arising out of overhead wires.

Extensive use of digital loop carrier (DLC)/Wireless in Local Loop (WLL) system for improving reliability of external plant.

Remote Line Units (RLUs). Remote subscriber

Units (RSUs) being provided extensively to reduce the long lengths of copper cables.

Establishing call centers across the nation to

provide single window solutions and convenience to customers.

Countrywide Network Management & Surveillance System (NMSS) to ensure uninterrupted and efficient flow of telecom traffic.

Application Forms for new connections have

been made free of charge for all services.

Procedure for restoration of telephones disconnected due to non-payment simplified and powers delegated to Secondary Switching Area (SSA) heads.

Payment of telephone bills being received on

Saturday and Sunday through cheques in City Telecom Offices (CTOs).

More than one Public Call Office (PCO) permitted at the same premises.

Various application forms and procedures being simplified for new telephone connections, shifting and third party transfer.

SWOT ANALYSIS OF BSNL

STRENTHS

WEAKNESSES

Pan-India reach

Experienced telecom service provider

Total telecom service provider

Huge Resources (financial & technical pool)

Huge customer base

Most trusted telecom brand

Transparency in billing

Easy deployment of new services

Copper in last mile can be used for easy broadband deployment

Huge Optical Fibre network and associated bandwidth

Non-optimization of network capabilities

Poor marketing strategy

Bureaucratic organizational set up

Inflexibility in mindset (DOT period legacies)

Limited number of value added services

Poor franchisee network

Legacy of poor service image

Huge and aged manpower

Procedural delays

Lack of strategic alliances

Problems associated with incumbency like outdated technologies, unproductive rural assets, social obligations, political interference,

Poor IT penetration within organization

Poor knowledge Management

OPPORTUNITIES

THREATS

Tremendous market growing at 20 lac customers per month

Untapped broadband services

Untouched international market

Can capitalize on public sector image to grab government’s ICT initiatives

ITEB service markets

Diversification of business to turn-key projects

Leveraging the brand image to source funds

Almost un-invaded VSAT market

Fuller utilization of slack resources

Can make a kill through deep penetration and low cost advantage

Broaden market expected from convergence of broadcasting, telecom and entertainment industry

Competition from private operators

Keeping pace with fast technological changes

Market maturity in basic telephone segment

Manpower churning

Multinational eyeing Indian telecom market

Private operators demand for sharing last mile

Decreasing per line revenues due to competitive             pricing

Private operators demand to do away with ADC can seriously effect revenues

Populist policies of government like “OneIndia” rates

INTRODUCTION OF BHARTI AIRTEL

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Airtel is India’s leading private sector provider of telecommunications services based on a strong customer base consisting of 50 million total customers, which constitute, 44.6 million mobile and 5.4 million fixed line customers, as of March 31, 2007. Airtel comes to us from Bharti Airtel Limited – a part of the

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biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti has also put its footsteps into Insurance and Retail segment in collaboration with Multi- National giants. Bharti is the leading cellular service provider, with a footprint in 23 states covering all four metros

and more than 50 million satisfied customers.

SERVICES

Airtel Prepaid

Airtel Prepaid, the Ready Cellular Card from Airtel comes to you

from Bharti Enterprises, India’s leading integrated telecom service provider. Going mobile with Airtel Prepaid is a new way of life. With a host of great features, also simple to use, Airtel Prepaid makes everything that you dreamt and believed, possible.

Total Cost Control

You can control your Airtel Prepaid like never before. No more rentals or deposits – simply recharge as much as you need to from as low as Rs. 10, to as high as Rs. 10,000/-.

Pre activated STD/ISD without deposits or rentals

You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No more paying deposits or having a minimum balance in your account to make an STD/ISD call. Hassle-free calls are here to stay!

Strong Network Coverage

Enjoy complete clarity when calling with Airtel’s world-class technology and unbreakable network coverage that spans over 23 circles across the country.

Instant Balance and Validity Enquiry

Your account balance is updated on the screen of your handset at the end of each chargeable call. You can also call 123 from your mobile phone and listen to the voice announcement or simply dial *123#, press ‘OK’ or ‘YES’ button and your account balance will be displayed on the screen of your handset.

Recharge your Airtel Prepaid

Recharging is Easy. The calling value on your card keeps reducing as you make calls or use any other chargeable service. Choose the Airtel Prepaid Recharge Coupon that’s right for you, from a variety of tailor- made recharge coupons with different denominations, which are available at a number of outlets across your city. Simply follow the procedure mentioned below, to recharge your phone.

Prepaid Roaming

Airtel Prepaid comes preactivated with ‘National Roaming’, so you stay connected no matter wherever you are. You can also send or receive MMS, check your email and access other GPRS services while roaming in India as you would in your own city. While traveling abroad you can receive calls & send or receive SMS.

Other Services

Airtel brings you, a wide range of Services that will change the way you communicate. Try them and discover a whole new world of fun and excitement.

Call management Services

Call waiting, call hold, call divert and Caller Line Identification

Presentation – all with your Airtel prepaid connection.

Voice Mail

When your handset is switched off, or you’re too busy to answer the phone, Airtel Voicemail will answer your calls and record a message. The best part is that there’s no extra monthly cost for setting up Voicemail – you just pay for the phone call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily using text, if it’s too noisy to talk or you don’t have much time. It’s the way to share those interesting one-liners, important reminders and rib-tickling jokes, with anyone, anytime, anywhere in the world.

Subscription Alerts

Get regular alerts on news, jokes, business, health and films on

your Airtel mobile phone with Subscription Services. SMS _{NEWS> to 3333 for News, for Jokes, for}

Business News, _{for Sports Alerts &}

for Vaastu tips.

MMS (Multi-media Messaging Service):

Jazz up your messages with pictures, images and video clippings,

with MMS from Airtel! To activate MMS on your phone, SMS

‘MMS’ to 56465 and save service settings.

Airtel Live!

Make your mobile the most happening entertainment destination

with Airtel Live! Airtel brings you the latest in entertainment and

information services, right on your phone!

Airtel Live! WAP Services: Download the latest ring tones,

games, wallpapers, videos and much more. You can also get news clips, watch live TV and download full songs on you phone. To get Airtel Live! settings on your phone, SMS ‘Live’ to 56465 and save the settings that you receive as your preferred connection. Airtel Live! Portal can be accessed from you GPRS enabled phone, by sending a SMS ‘FUN’ to 56465.

Airtel Live! Voice Services: Just Dial 56465, and name the service. For e.g. say ring tones to download your favorite ring tones. You can also choose a variety of content options like Live Cricket Commentary, latest National / International News, Movie Reviews or Stock Market Updates.

Airtel Live! SIM Services: Access loads of fun content and exciting services like cricket, stocks, on your phone at the touch of a few buttons with Airtel Live! SIM based Services on your SIM card menu. To download new services on your Airtel SIM, choose the “What’s new” option under the “Airtel services” menu.

Airtel Live! SMS Services: You can enjoy a host of services by sending a keyword as an SMS to 56465! Choose Astrology /Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring tones. In case you need assistance SMS, Help to 56465

SWOT Analysis

STRENGTHS

Cost advantage

Current leaders in quality service

Largest distribution network

Ability to constantly innovate

Highly skilled workforce

Entrepreneurial zeal

Airtel’s increased equity and market cap.

WEAKNESSES

To prove credibility

Price pressures

Need for Government support

Awareness

Sales and Marketing

OPPORTUNITIES

To sustain passion and commitment

Airtel’s market share increasing at other service provider Expense. Thus opportunity to wipe it out.

Attain higher value services

Collaborative business needs to be explored

Vertical repeatable solutions.

Low penetration level in rural markets.

THREATS

€ € € € € € € € € € Foreign investment

Global trends moving from GPS to WLL.

Lack of global parity in telecom tariff

Other competition

STRATEGIES

Product

offer a basic product/ service

Offer value added service

Increase in no. of value added service

Price

Charge cost plus

Price to penetrate market

Price to match or best competitors

Distribution

Build selective distribution

Build intensive distribution

Build more intensive distribution

Advertising

Build product awreness among early

Build awareness & interest in the mass market

Stress brand difference & benefits

Sales

Use heavy sales

Increase to

Increase to

MARKETING STRATEGY ADOPTED BY BHARTI

Bharti has spent a considerable amount on advertising its mobile phone service, Airtel. Besides print advertising, the company had put up large no of hoardings and kiosks in and around Delhi. The objective behind designing a promotion campaign for the ‘Airtel’ services is to promote the brand awareness and to build brand preferences. It is trying to set up a thematic campaign to build a stronger brand equity for Airtel. Since the cellular phone category itself is too restricted, also the fact that a Cellular phone is a high involvement product, price doesn’t qualify as an effective differentiator. The image of the service provider counts a great

deal. Given the Cell phone category, it is the network efficiency and the quality of service that becomes important. What now the buyer is looking at is to get the optimum price-performance package. This also serves as an effective differentiator Brand awareness is spread through the’ campaigns and brand preference through brand stature. Airtel’s campaign in the capital began with a series of ‘teaser’ hoardings across the city,’ bearing just the company’s name and without explaining what

Airtel was. In the next phase the campaign associated Airtel with

Cellular only thereafter was the Bharti Cellular connection brought up. Vans with Airtel logos roamed the city, handing out brochures about the company and its services to all consumers.

About 50,000 direct callers were sent out. When the name was well entrenched in the Delhiites’s mind, the Airtel campaign began to focus on the utility of Cellphone. In the first four months alone Airtei’s advertisement spend exceeded Rs. 4 crores. As of today the awareness level Is 60% unaided. This implies that if potential or knowledgeable consumers are asked to name a Cellular phone service provider that is on the top of his/her mind 60% of them would name Airtel. As for aided it -is 100% (by giving clues and hints etc.).

Brand strength of a product or the health of a brand is measured by the percentage score of the brand on the above aided and the unaided tests. The figures show that Airtel is a healthy and a thriving brand. Every company has a goal, which might comprise a sales target and a game plan with due regard to Its competitor. Airtel ‘s campaign strategy is designed keeping in mind its marketing strategy. The tone, tenor and the stance of the visual ads are designed to convey the image of a market leader in terms of its market share. It tries to portray the image of being a “first mover every time” and that of a “market leader”. The status of the product in terms of its life cycle has just reached the maturity stage in India. It is still on the rising part of the product life cycle curve in the maturity stage. The diagram on the left hand side shows the percentage of the users classified into heavy, medium and low categories. The

right hand side shows the revenue share earned from the three types of users. Airtel, keeping in mind the importance of the customer retention,

values its heavy users the most and constantly indulges in service innovation. But, since heavy users comprise only 15 – 20% of the population the other segment cannot be neglected.

The population which has just realised the importance of cellular

phones has to be roped in. It is for this reason that the service provider offers a plethora of incentives and discounts. Concerts like the “Freedom concert” are being organised by Airtel in order to promote sales. The media channel is chosen with economy in mind. The target segment is not very concrete but, there is an attempt to focus on those who can afford. The print advertisements and hoarding are placed in those strategic areas which most likely to catch the attention of those who need a cellular phone. The product promise (which might cost different

1 higher) is an important variable in determining the target audience.

Besides this, other promotional strategies that Airtel has adopted

are .

(i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent flier’s programs.

(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements

and tactical advertisements.

CONCLUSION

From above the details I conclude that 70% Airtel users preferred to remain with Airtel. Also good no. of users who were willing to switch from their respective subscribers showed interest in Airtel. Hence, these statistics imply a bright future for the company. Also the company is now providing more services like the door to door services which is you dial the Airtel customer care and would like to send someone flowers the Airtel company delivers those flowers to the person concerned. Also

Airtel is providing free text messaging service and free voice mail service. Call conferencing is also another feature Airtel provides.

Hence, from this report it is clear that BSNL is the best service provider in Asia. BSNL provides world class State-of-art technology telecom services to its customers on demand at competitive prices world class telecom infrastructure in its area of operation and to contribute to the growth of the country’s economy.