Marketing presentation on

Uninor

Introduction

• Join venture between Telenor(67.25%) and Unitech Group (32.75%)

• Started Mobile Services in India in December 2009 focusing on the GSM technology.

• India’s 8th nation-wide mobile operator operating in 8 out of 22 telecom circles in the country.

Area of operation

4 P’s of marketing• Product- Prepaid CDMA and GSM mobile services in 8 circles

out of 22 circles in India.• Price- Smart Tariff Plan

Talk longer@29p/min Callmore@29p/min

• Promotion- Slogan-‘Ab mera number hai’Brand Ambassador-Young, Energetic, Ambitiousyouth.

• Place- 8 circles of 22 Indian telecom circles- in cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore, Kochi, Noida, Greater Noida, Agra, Lucknow, Varanasi, Gurgaon and Ghaziabad.

Promotion

Product Promotion• Creative strategy- Informational with Positive appeal ‘Pride’• Slogan-‘Ab mera number hai’• Advertising in Hindi, Kannada, English and many more Indian

regional languages.• The series of televisions ads (by creative agency Leo Burnett)

show ‘young people in real-life situations’ rather than models or celebrities.

• Even the outdoor campaign show young, ambitious, real people looking for challenges, wanting to make things happen.

• The company has around 2 lakh retail points across the country, including rural areas, apart from 50 company-owned stories.

• Innovational promotion in small towns.

PromotionInstitutional Promotion• For brand empowerment, it is working an online initiative with

social media.• Brand Philosophy- Empower People. Media Mix• Print and Broadcast ads• Motion Pictures• Brochure and booklets• Posters• Billboards• POP displays• Logos

Targeting• The company is targeting for 8% market share in India by 2018.• The country will have over 1.2 billion customers by 2018 as

against 540 million now.• Thus Uninor is targeting for 80 million customers by 2018.• Break-even in 3 years.• Positive operating cash flow within 5 years in India.• Targeting youth as well as all the ambitious people.• Selective specialization targeting strategy• First priority is to roll out across the country; a credible market

share can be built only after that. They hope to launch across the entire country by the end of the year.

Value proposition

• Maximize the enabling effect of mobile telecommunications.

• Promote safer products and service.• Make responsible business practices part of

everything Uninor does.• Various value packs for ISD users- USA/CANADA,

Singapore/Malaysia, Gulf packs.• Simple tariff plans which are easily understandable• Quick responses through circle heads.

Strengths

• Join venture between world’s 6th largest telecom company and India’s 2nd largest real estate company.

• Least capital investment as various services are outsources.• Least number of employees.• Decentralized management structure.• Simple prepaid plan in which a local call is priced at 29 paisa a

minute.• The more you talk, the lower the price gets.• Different segmentation strategy as compared to competitors.• Use of real young people in promotion instead of any role

model.• Innovative promotional strategy.

Weakness

• It has still not launched postpaid schemes.• Late entrant in the market.• Too much outsourcing may go against the health of the

company.

Opportunities

• With rising individual saving rate with 9% growth rate, and expected increase in market size by 500 million in 2010(almost double), the company has great opportunities.

• Approximately 10-15 million mobile connections are being added every month. The national mobile tele-density is about 39 per hundred, Urban areas-75(in Mumbai), but Rural areas-13.

• Micro segmentation strategy in rural markets adopted by the company.

• Falling handset prices and tariff rates.• Increasing network distribution.

Opportunities

• Cell phone ownershipTotal- 51%Male- 56%Female- 44%Youth(16-19 years)- 64%

• Amount spent on mobile per month (average)-Boys- Rs. 125 (71% of pocket money)Girls- Rs. 106 (62% of pocket money)

• New mantra of youth – Kapda Ipod and Cellphone

Threats• Competitors like Airtel, Reliance, BSNL,

Vodafone• Extensive Government regulations through

TRAI as regards introduction of new services.• Bloodbath in the market due to price war.

BCG Analysis Relative market share

Ansoff matrix

Porter’s Five Forces Model