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Company Background - Idea Cellular

DEA Cellular Limited, a part of the Aditya Birla Group and an India's leading Global System for

(GSM) Mobile Services operator was began its journey in the year 1995 as in the name of Birla Co

providing GSM-based services in the Gujarat and Maharashtra Circles. Later the company has liceService Areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa,

Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajas

customer base of over 24 million, IDEA Cellular's footprint currently covers approximately 60% opopulation. The company's operational 11 Service Areas are broken up into Established and New

established service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala, MPradesh (West) and the New Service Areas are Uttar Pradesh (East), Rajasthan and Himachal Prad

Changed its name to Birla AT&T Communications Limited followed by joint venture between Gr

Corporation in the year 1996. After a year, in 1997, commenced its operations in the Gujarat and Mrevenues share license fee regime under New Telecommunications Policy ('NTP') Circles in the y

2000, the company merged with Tata Cellular Limited, thereby acquired original license for the A

IDEA acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (inclu

the year 2001, and in the same year changed its name from Birla AT&T Communications LimitedLimited. Obtained license for providing GSM-based services in the Delhi Circle. Again in year lat

altered its name to Idea Cellular Limited and launched 'Idea' brand name and commenced its comm

Circle. During the year, the company reached one million subscriber mark consecutively in the yemillion subscriber mark.

During the year 2004, the company acquired Escotel Mobile Communications Limited (subsequenCommunications Limited), reached the four million subscriber mark and the first operator in India

EDGE services 2005. Reached the five million subscriber mark in the year 2005 and IDEA won a

service at GSM Association Awards in Barcelona, Spain. The Company became a part of the Adit

2006, subsequent to the TATA Group transferred its entire shareholding in the Company to the Adsame year 2006, IDEA acquired Escorts Telecommunications Limited (subsequently renamed as I

Limited). The Company reached the 10 million subscriber mark and also launched New Circles fo

customers. IDEA has extended its reach to 500 towns in Andhra Pradesh in August of the year 20Intent from the DoT for a new UAS License for both Mumbai and Bihar Circles. ABNL, the paren

Limited, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Compan

Rs. 100 million. In 2007, the company won an award for the 'CARE' service in the 'Best Billing orthe GSM Association Awards in Barcelona, Spain.

The Initial Public Offering aggregating to Rs. 28,187 million and the company listed in both BombNational Stock Exchange during the year 2007. IDEA merged seven of its subsidiaries and reache

subscriber mark in the same year 2007. As on February 2008, IDEA Cellular Ltd tied up with Sou

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to bio-diesel for operating IDEA's gensets at all towers in the Andhra Pradesh region. The Compainnovator in communication, collaboration and entertainment applications on mobile and Internet

the launch of 'Idea Radio', a truly differentiated mobile music service for IDEA customers in the s

Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their m

the operator to launch General Packet Radio Service (GPRS) and EDGE in the country. IDEA has

since its inception, the company's footprint idea is to first achieve critical mass, then drill deep inshowever, does not increasing geographic footprint only, it also drills deep and successfully attemp

network coverage in all its circles of operations.

The Marketing Mix

(The 4 P's of Marketing)

The major marketing management decisions can be classified in one of thefollowing four categories:

Product Price Place (distribution) Promotion

These variables are known as the marketing mix or the 4 P's of marketing.They are the variables that marketing managers can control in order to bestsatisfy customers in the target market. The marketing mix is portrayed in thefollowing diagram:

The Marketing Mix

Product Place

Target

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Market

Price Promotion

The firm attempts to generate a positive response in the target market byblending these four marketing mix variables in an optimal manner.

Product

The product is the physical product or service offered to the consumer. In thecase of physical products, it also refers to any services or conveniences that arepart of the offering.

Product decisions include aspects such as function, appearance, packaging,service, warranty, etc.

Price

Pricing decisions should take into account profit margins and the probable pricingresponse of competitors. Pricing includes not only the list price, but alsodiscounts, financing, and other options such as leasing.

Place

Place (or placement) decisions are those associated with channels of distributionthat serve as the means for getting the product to the target customers. Thedistribution system performs transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection,logistics, and levels of service.

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Promotion

Promotion decisions are those related to communicating and selling to potentialconsumers. Since these costs can be large in proportion to the product price, abreak-even analysis should be performed when making promotion decisions. It is

useful to know the value of a customer in order to determine whether additionalcustomers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.

A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list ofsome of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/Support

List price

Discounts

Allowances

Financing

Leasing options

Channel members

Channel motivation

Market coverage

Locations

Logistics

Service levels

Advertising

Personal selling

Public relations

Message

Media

Budget

Recommended Reading

This book is a crash course covering most of the marketing topics taught in MBA programs,including the marketing concept, the 4 P's of marketing, marketing research, marketing strategy,and segmentation, targeting, and positioning.