Objective

By 2010, Airtel will be most admired brand in India

“Loved by more customers

Targeted by top talent

Benchmarked by more businesses”

“Targeting of 125 million subscribers with $10bn revenue”

- Sunil Bharti Mittal

SUNIL BHARTI MITTAL

CMD Bharti Group (since 2001)

General Information

• AIRTEL 1995 (estd.) ,under BHARTI CELLULAR LIMITED

• Chairman & M.D. Sunil Bharti Mittal since 2001

• Market capitalization US $ 40 billion ( in Feb.2008)

• Employees 30000

• Headquartered New Delhi, INDIA

• India’s largest telecom service provider

• In 2001, entered into a joint venture with Singapore Telecom

Singtel Largest stake in Airtel i.e. 45.36%

• First that crossed 2 million mobile subscribers in INDIA• Earned profit of 27% in year 2008-09 when most of the companies were hit

due to recession

Contd….

• Company was named as the best telecom service provider in ASIA-

PACIFIC in 2005 by the Telecom & Consultance firm “Frost & Sullivan”• Forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with

Wal-Mart in November 2006

• Second time merger acquisitions with the African Telecom Giant

‘MTN’ worth US $29 billion acquisition which failed

• 10th place globally as the number of subscribers are concerned

• In Dec. 2008 ,Airtel launched its services in Sri Lanka

Reality of Today

Subscriber Base

Acc. to TRAI as in February 2009,

Chennai 2,133,677 Delhi 4,671,177 Mumbai 2,791,963 Kolkata 2,456,896 Madhya Pradesh 7,690,609 Gujarat 3,981,660 Andhra Pradesh 8,892,353

Karnataka 9,820,812 Tamil Nadu 6,003,040 Kerala 2,169,633 Punjab 3,754,405 Maharashtra 6,248,906 Uttar Pradesh (West) 2,256,862 (East) 5,722,386

Contd….Rajasthan 6,704,274 West Bengal & Andaman and Nicobar 3,501,560 Himachal Pradesh 951,121 Bihar 7,152,245 Orissa 2,811,453 Assam 1,448,389 Other North Eastern States 890,054 Jammu & Kashmir 1,590,935

• Total is 101,114,971 or 24.2% of the total 375,742,592 (GSM + CDMA)

mobile connections in India

• Number 1 operator in India.

• In May,2009 Airtel signed a major deal with Manchester United Football Club

Addition in Subscriber Base

AIRTEL 41%

Reliance Comm.32.7%

BSNL22.6%

AIRTELReliance Comm.BSNL

2009,Trak.in

Wireless carrier used by Executives

AIRTEL; 47%

Vodafone; 38%

Idea; 6%

Tata Indicom; 3%

MTNL; 3% Others; 3%

2009 ,Cell Strot

Partnership

Successfully in partnership with various leading companies of the world

Singapore Telecom

Warburg Pincus

British Telecom

and many more

Public Opinion

AIRTEL>VODAFONE>RELIANCE

AIRTELSBU’s

Mobile Services

Provides mobile & fixed wireless services using GSM technology across 23 telecom circles

Airtel Telemedia Services

Offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service, i.e. Airtel digital TV

Enterprise Services

Provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers

Marketing Strategies

Profitability

Works upon 80:20 rule

20% customers in any market yield 80% of the profits

20 % of the customers get 80% of the business

Only 20 % of the market is addressed efficiently

Contd….Aim to ….

• Attain new customers and increase the number of relationships

• Increase the profitability of those relationships

• Increase the duration of profitable relationships

“Know your customer….to capture and retain

them !”

Beliefs• Exposure to global business environment-Competition is not just domestic but global

• Acquisition costs on the rise- Increasing need to penetrate and have efficient distribution

•Buying power of customer-Open markets

-Global customers

-Multiple substitutes

“…Customer is KING”

AIRTEL - 3G• Plans to launch 3G services in India in the next 6 months.

• Airtel's 3G speed is rumoured to be around 400Kb/s.The main reason to roll out 3G is the competition from BSNL

rolling out 3G in India.

The other main reason being to promote the iPhone which, otherwise, has not yet seen success in India.

Positioning

• Various Brand Ambassador( SRK, Sachin, A R Rahman, Saif Ali Kahn, Kareena Kapoor and many more )

• Largest advertiser in India

• Global player

• Network Coverage

• Penetration in each market

• Largest subscriber base

•Majorly used

• Convenient to access

• Always be No.1 profitably

Video Campaigns

Corporate Social

Responsibility

CSRBharti’s commitment to CSR is embedded in the ‘Corporate Values’. These Values are,

• To be responsive to the needs of our customers

• To trust and respect our employees

• To continuously improve our services – innovatively and expeditiously

• To be transparent and sensitive in our dealings with all stakeholders

Contd….We encourage our employees to take decisions and design business processes, keeping in mind the following:

• Ethics, fairness and being correct

• Meeting and going beyond compliances and legal requirements

• Showing respect and sensitivity towards stakeholders and communities

• Nurturing the environment

Contd….“We feel that it is important that each employee should understand the importance of environmental, social and economical aspects while taking business decisions”.

-Bharti Group

Acquisition War

AIRTEL – MTN Deal

TATA – Japan NTT Docomo

AIRTEL v/s VODAFONE

• Vodafone’s entry in Indian telecom market posed 1st real threat to BAL’s supremacy

• Vodafone planned to invest $ 2 billion to establish and introduce new 3G technologies

• Vodafone’s allocation of spectrum to expand from 16 to 23 telecom circles

• Vodafone entry increased competition and better services to customer

AIRTEL v/s TATA & RELIANCE

• GoI’s approval to companies to provide both GSM & CDMA (BSNL, Reliance, Tata )

• New player expected to break oligopoly in market.

• Due to competition slashing down of tariff rates which were already lowest in world.

• BAL did not have plans to start CDMA.

• GoI plan to allow more players to enter to reduce rates.

Promotional Strategies

NEW ADVERTISING STRATEGY.

-‘Kuch Bandhan atoot hote hain’

-‘Barriers break when people talk’

Price WarsBecause of hyper competitive market,• First to start the Rs. 999 pack

• First to start Re.1/min call

• First to start Campus pack ( Rs.250 )

• AIRTEL also launched ‘Freedom Plan’Airtel customers will be charged 1 paisa per second for all

Local to Airtel numbers and 1.20 paise per second for local and STD calls to other network as well as on Airtel network

---------And many more

S.W.O.T.Analysis

Strengths•Very focused on telecom

•Leadership in fast growing telecom market

•Only Indian operator that has an International submarine cable

Weakness•High price of services like VAS

•Limited tariffs and packs with cheaper price

Opportunities

•Fast expansion of International Market

•Latest Technology at low cost

•Targeting all segments

• Tapping the Rural Market

Threats•Competition from other players

•Market maturity in cellular segment

Current Scenario

BAL wants to make its foothold in the overseas market,

-After the calling off the AIRTEL – MTN Deal ,

-He is trying to have a merger with one of the,

Egypt’s (Orascomm Tele)

Kuwait’s (Zain Telecom)

Abu Dhabi’s (Warid Telecom)

and has taken a major stake of 70% for US $300 mn in

WARID Telecom

Bibliography

• www.airtel.in

• www.trak.in

• www.wikipedia.org

• www.ibn7.com (Khabar Live)

• Cell Strot

• The Times of India

• Business World

• Economic Times

• BBC News

• CNBC-TV18

THANK YOU