Aitel Has Four Major Steps in Designing a Customer

8/13/2019 Aitel Has Four Major Steps in Designing a Customer

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Marketing Activiti es of Airtel Telecom.

Principles of Marketing Page 1

EXECUTIVE SUMMERY

The topic of this report was An Analysis on Marketing Activities of Airtel

Telecom.This report is partial requirement of BBA program, faculty of business &

Economics of Daffodil International University.To prepare this report as an

apprentice we have taken necessary assistance from Mohammed Masum Iqbal during

report writing.

The report is conducted with the purpose of introduction the financial operation and

providing the chance to analyze and make assignment accordingly.


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Origin of the Report

First of all we would like to thank to our respectable teacher Mohammed Masum

Iqbal to give us the opportunity to do this assignment under her guidance. She is so

much an inspiration and guidance to us. We are short of words in expression our

gratitude.

Then we would like to thank to officials of Airtel Telecom for their excellent support

to produce the data and relevant information. We want to convey our special thank to

Mr. Zahirul Islam, company secretary of Airtel Telecom who apart from his very busy

office work, has spared time to discuss the ins and outs of the assignment and guide

us by giving suggestions. We worked there under his direct supervision.

We would like to thank for entire honorable person whose are cooperating with me,

without whose we cannot touch our destination.

Methodology:

The study is based on secondary data methodology of this final report is given below:

Data regarding the organization profile collected in the following ways:

From the organizations Annual report. Online information. By interviewing the organizations officials. Observational method will also be used in this study.


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Limitation of the study:

Any assignment paper needs high degree of involvement regarding collection of

information, creation of database, literature review and analysis of data. In this study,

we have tried our level best to collect the related information within the time

constraint.

Company Profile

Type Private

Industry Telecommunication

Founded 2005

HeadquartersHouse 34, Road 19/A,Banani,Dhaka

1213,Bangladesh

Key people

Sheikh Nahayan Mabarak Al Nahayan,

Chairman

Mr. Muneer Farooqui, CEO

Products Telephony,EDGE,GPRS,GSM

ParentBharti Airtel 70% andWarid Telecom

30%

Website www.waridtel.com.bd
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Private_Companyhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Bananihttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Sheikh_Nahayan_Mabarak_Al_Nahayanhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/Enhanced_Data_Rates_for_GSM_Evolutionhttp://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Warid_Telecomhttp://en.wikipedia.org/wiki/Websitehttp://www.waridtel.com.bd/http://www.waridtel.com.bd/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Warid_Telecomhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/Enhanced_Data_Rates_for_GSM_Evolutionhttp://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Sheikh_Nahayan_Mabarak_Al_Nahayanhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bananihttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Private_Companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


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WARIDs MISSION and PURPOSE:

Our aim is to be perceived not only as a telecommunication operator of voiceservices, but also as a universal provider of comprehensive communications servicesfor both residential and business customers. Airtels corporate identity seeks to reflectthe changes in telecom sector in relation to helping customers keep pace with rapidlychanging technology in the field of communication, through maximum networkcoverage and clear connectivity that we have committed to provide

Objective:

A study in company operation of Airtel Telecom. to find out its activities and

performance in terms of anticipated customers requirements and provide them with

the service, which meet their market, quality and service need.

To give a brief about the history and information of this company.

To inform about the company mission and vision market performance AirtelTelecom.

Setting a general idea about operation procedures and functions of AirtelTelecom.

To explain about the services that the company are offering to its customers. To have an idea about the different techniques of companys various

operation.

Bibliography

www.banglapeadia.com.

Annual report.

By interviewing the organizations officials.

www. aritel.com.bd
http://www.banglapeadia.com/http://www.banglapeadia.com/http://www.banglapeadia.com/


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MARKETING STRATEGY

Aitelhas four major steps in designing a customer-driven market strategy: MarketSegmentation, market targeting, differentiation, and positioning.

Segmentation: Divide the total market into smaller segments.

Targeting: Select the segment of segments to enter.

Differentiation: Differentiate the marker offering to create superior customer value.

Positioning:Position the market offering in the minds of target customers.

MARKET SEGMENTATION OF AIRTEL:

Airtel Telecom has divided its segmentation and strategy division into five segmentson the basis of their characteristics. Markets consist of buyers and buyers differ in oneor more ways. They may differ in their wants, resources, locations, buying attitudesand buying practices. The core concept behind companies using marketingsegmentation concept is to divide large homogeneous markets into smaller segmentsthat can be reached effectively and efficiently with products and services that satisfyneeds, wants, desires and trends of certain segment. Characteristics that governsegmentation and strategy development in Telecom industry specifically mobileservices according to a certain segment are

Age

Educational background

Gender

Income

National, regional or other geographical areas of origin

Social class

Religion

Culture

Behaviors

Population

Tele density in area to be segmented

So according to these above mentioned factors Airtel divide its marketing strategyinto five segments which are:

Postpaid Segment

Masses Segment

Female Segment

Youth Segment

Corporate Segment


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Postpaid Segment:

Postpaid Segment is the one which includes individuals with good income and usagemore than that of prepaid customers. Postpaid customers:

Pay bill at the end of month depending on the service used. Pay specific amount in line rent every month, no matter they use service or not. Enjoy better range of value added services than prepaid customers.

Postpaid Segmentation Section designs marketing activities to better satisfy the needsof Postpaid consumers.

Masses Segment

Masses Segment is the biggest segments involving most no of people. Massessegmentation section develops marketing ideas and activities to perform, so that

masses customers enjoy maximum benefits. Consumers from masses segments userelatively less. Masses customers

Pay before using the service.

Enjoy basic and VAS services

Have less brand loyalty in most cases.

Ready to switch to other mobile services in case of cheaper services

Female Segment

Importance of role of females cannot be overlooked in this modern era. Thats why

Airtel Telecom has also developed females segment as a separate segment. The roleof Female segmentation section is to develop ideas that would entertain female

population in Bangladesh.

Youth Segment

Youth drives a nation; similarly, youth is taken by cellular companies as a segmentwhich can drive other segments as well and affect trends of customers of othersegments too. If the youth is targeted in better way, lot of customers can be gained.

Corporate Segment

Corporate segment is niche segment which can be source of great revenue fororganization. Corporate Segmentation section develops idea that can providemaximum support and facilities to their most profitable segment. Corporate segmentsare provided with

Best possible VAS

Better rates

Security and Network Solutions

Corporate Series for employee


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TARGET MARKET OF AIRTEL:

According to one of the representatives of Airtel that Airtel has divided its targetmarket in categories of A+, A-, B+, B-, C, D, E and F

CATEGORIES: CHARACTERISTICS:

A+ & A- Age group of 28 to 32, 40+ and of upper-income level (Urban)B+ & B- Age group of 22 to 27 and of lower-upper-income level (Urban)C Age group of 18 to 21 young stars (CORE TARGET) (Urban)D Age group of 13 to 17 and low lower income level all Ages(Urban)E & Users of Semi-urban areas (Has planned to launch)

F Users of Rural Areas (Has planned to launch)

Consumer or Industrial

Airtel is providing their packages at both levels. Consumer level is provided in thisreport, while, industrial level has variable domain, settled according to no. ofconnections and on the nature of packages according to line rents e.t.c.

Buying Characteristics

Airtel is very much selective and stresses on value added purchases.

Market Potential

Currently market is on SATURATION POINT as for Urban areas concern and as foras Rural Areas concern there is great POTENTIAL. Airtel is going to launch its

products in Semi-Urban and Rural Areas

Product Positioning

As Airtel is new in the market of Bangladesh trying to make its position in the mindof customer better than existing big giant Grameen Phone.Although Airtel is new in market but it has acquired a good position as for as Zeroline rent post-paid connections and low rate pre-paid connections.In my point of view, as Airtel launched its products in Bangladesh with a MARKETPUSHER STRATEGY, while providing low rates, not only it has made its position

better but also made other networks to reduce their prices.


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Distribution Channels of Airtel;

There are three types of distribution channel used by AIRTEL TELCOM which arefollowings

Distributors Channel Corporate Channel Direct Channel Franchise Selling

Distributors ChannelDistributors are also working for selling Airtel telecom product. Distributor sellAirtel products to the retail stores Airtel telecom wants to cover 3000 to 4000shops and retail stores in Bangladesh. Because time is money Airtel telecom wantthat their customers get product at the door step. These distributors are working on

behalf of Airtel telecom. They provide Airtel products at different retail stores andshops. Airtel telecom feels it is important to provide products with utmost toconvenience to the customers. Because Airtel telecom is on introduction stage,they are using intensive distribution network. In near future Airtel telecom

products are widely available in all retail stores.

Corporate Channel

In corporate selling Airtel telecom conduct meetings and presentations I thebusiness places where there are more than 50 connections or persons Airteltelecom conduct presentations at business places and create awareness of their

products the corporate selling staff sale connections at the spot. The corporateselling staff includes company executives. In this particulars area Airtel telecomhas to work hard. Because in this sector the people who have already some otherconnections do not like to change their connection. In order to remove this short

come Airtel telecom is providing the same no. which you have earlier instead ofAirtel telecom code 016 Airtel telecom is making progress I this sector and try toreach its goals.

Direct SellingAs Airtel telecom is on introduction stage it uses direct selling also. In this channelcompany has large no. of sales of officers who meet persons and tell them aboutAirtel telecom products. This sale force is totally committed towards their work. Theyknow how to sell the products to the customers. In future Airtel telecom is planning tostart door to door selling of their products. In the introduction stage of its operations

Airtel telecom wants to provide all the things to its customers at their door step. Thedirect selling staff is highly trained and motivated. They use their personal references,


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retailers, friends for selling products.As Airtel telecom is on introduction stage it usesdirect selling also. In this channel company has large no. of sales of officers who meet

persons and tell them about Airtel telecom products. This sale force is totallycommitted towards their work. They know how to sell the products to the customers.In future Airtel telecom is planning to start door to door selling of their products. In

the introduction stage of its operations Airtel telecom wants to provide all the thingsto its customers at their door step. The direct selling staff is highly trained andmotivated. They use their personal references, retailers, friends for selling products.

Franchise SellingAirtel telecom is providing their brands to ultimate consumers through franchises. Ithas a strong network of franchises all over the Bangladesh. In Dhaka there are 5franchises of Airtel telecom they want to establish 7 franchises. In franchises Airteltelecom brands are sold and commission is giver to franchisee. The franchisee workaccording to the requirements of Airtel telecom. In order to provide best services to

their customers Airtel telecom monitor the working of franchisees time to time.Franchisees sell Airtel brands directly to the ultimate consumer or they can appointtheir own dealers in order to save the product. Airtel telecom provides technicaltraining to the staff of franchisees. Airtel telecom franchisees are in all the importantareas of Dhaka. So for a Airtel customer it is easy to get connection at any time fromeverywhere. Airtel telecom establishes franchisees in the important areas of everycity. Airtel telecom is working in 28 cities of Bangladesh and it has large no. offranchisees according to the need and demand of specific areas.

Critical Success Factors:

There are a lot of factors exist in the success of a company that may be the corecompetences of that particular company. There are following success factors forAirtel Telecom.

The NetworkAirtel telecom is partners with some of the leading vendors in the telecomindustry, who help them in providing the best and latest network solutions for

business. Airtel has pioneered in key technologies, which include the following:

Custom-made network for Bangladeshi. Congestion-free connectivity in all coverage areas. Roll out plan for complete national populated coverage by 2009. Fully redundant network. Robust design catering to future needs. Future professional network (EDGE compatible and 3G upgraded with soft

switch and media gateway architecture).

DIFFRENTATION OF AIRTEL:

Differentiation by Airtel implemented by showing cultural integration as it is ownedby UAE group so people are more valuing it as Muslims. Airtel is offering specialdiscounts offers on calls of Arab states. This aspect differentiates Airtel from other


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companies. It has provided billing updating system which is not given by any othercompany.

Segmentation:

Market Segmentation (Focused) by Airtel by catering needs of people. Hay createdimage by tag line we care for everybody they will provide best quality service. TheAirtel Prepaid category is divided into four segments:

Basic (startup) My Favorites Day Talker Super Saver

The Airtel Postpaid category is divided into two segments:

Basic super benefit

PRODUCT POSITIONING OF AIRTEL :

Airtel positioned itself around simplicity and subtlety, and attracted subscribers morethrough word of mouth about its service quality than with advertising. Unfortunately,Airtel wasnt able to capitalize on its great start, and hasnt been able to position itselfasa premium brand in the industry; rather, its attempt to characterize itself as a service

provider that offers the best rates has led Airtel to be associated with cheapaffordability.

Pricing Strategy :

When Airtel starts it offering more value and quality rather than reducing the pricingof its products and its uses both demand-pull and demand-push strategies for

penetrating the market. Its innovative strategies like 1 second pulse and FNFpackage are the strategies to capture the large share of market. Now Airtel focus onreducing the prices of its products to increase the market share of telecom industry.

As now there is always good mouth for Airtel thus Airtel can increase its market byreducing the prices of its products.


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MARKETING MIX OF AIRTEL:

The marketing mix principles (also known as the 4 ps.) are used by business as toolsto assist them in pursuing their objectives. The marketing mix principles arecontrollable variables, which have to be carefully managed and must meet the needs

of the defined target group. The marketing mix is a part of the organizations planningprocess and consists of analyzing the defined:


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PRODUCT :

Airtel provides both post-paid and pre-paid connection plans. The post-paid plan isbranded and marketed across the country under the name Airtel Postpaid, whichmeans leader or royalty. The pre-paid segment is branded and marketed as Airtel

Prepaid.

The AirtelPrepaid category is divided into Three segments:

AddaGolphaKatha

The AirtelPostpaid category is divided into two segments:

Basic super benefitsPre-Paid:

Our prepaid is a unique offering that understands how people are different and thusprovides customized solutions for those different needs. Our offering comes with abasic package at the time of purchase. From this basic package, you can choose fromthree different options, each designed to suit a particular lifestyle.

Katha

If you are someone who makes mostly short duration calls or dont call that manypeople on a daily basis then the basic package is perfect for you. Here you will enjoya simple tariff with per second billing that will help you to reduce your monthlycommunication expenditure.


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Adda

You are the kind of person who likes to keep in touch with a close group of friends.You like to browse the net when bored and make the most of your time on your

phone. Adda will give you all that at fantastic rates.

Golpha

You are always busy on the phone during the day, be it in the office or whilemanaging your home. Get updated on the latest scores and breaking news or even

some quick beauty tips and some sweet and sour recipes at unbelievable rates withGolpha.

Postpaid:

Our postpaid is designed to cater both your professional and personal communicationneeds. We are offering one basic product with an attractive tariff plan, large closecalling circle and maximum flexibility in service. In addition to the basic product wealso have an option for heavy users which will help them to explore a wide range ofservices and keep their overall cost to a reasonable limit.


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PRICE:

When Airtel starts it offering more value and quality rather than reducing the pricingof its products and its uses both demand-pull and demand-push strategies for

penetrating the market. Its innovative strategies like 1 second pulse and FNF

package are the strategies to capture the large share of market. Now Airtel focus onreducing the prices of its products to increase the market share of telecom industry.As now there is always good mouth for Airtel thus Airtel can increase its market byreducing the prices of its products.

PLACE:

Airtel Telecomsales andcustomer services and their Head Quarters at Tajwar CenterinBanani,Dhaka. In December 2005, Airtel Telecom International LLC paid US$ 50million to obtain aGSM license from theBTRC and became the sixth mobile phoneoperator in Bangladesh. In a press conference on August 17, 2006, Airtel announced

that its network would be activated two months ahead of schedule, in October, 2006.Again in October, 2006 Airtel Telecom put off the launch of its cellphone services inBangladesh until April, 2007 after its major supplier Nokia walked out on anagreement over a payment dispute.Airtel had a soft launch at the end of January 2007.It gave away complimentary subscriptions among a selected group of individuals,whose job was to make 'test calls' and the operator adjusted its network's quality basedon their comments.On May 9, 2007, Airtel in an advertisement in some dailynewspaper stated that it would be launching publicly on May 10, 2007. However, nocall rate nor any package details were revealed. The advertisement included anannouncement for the people interested to buy Airtel connections to bring thedocuments like ID Card, etc, to the designated franchise and customer care centres.OnOctober 1, 2007, Airtel Telecom has expanded its network to five more districtsraising total number of districts under Airtel coverage to 56, says a press release.Mymensingh, Jamalpur, Sherpur, Rajbari and Narail towns are now under Airtelnetwork.On November 10, 2007, 61 districts under Airtel network coverage.On June10, 2008, Airtel Telecom has expanded its network to 3 more districts Bandarban,Khagrachhari and Rangamati. Now all 64 districts of Bangladesh are under Airtelnetwork coverage meaning Airtel Telecom now has nationwide coverage.

PROMOTION:

The most controversial and dynamic factor in todays market is promotion. Todaywithout promotion you cannot sell your product. Customers also must be remindedabout a products availability and its potential to satisfy. Sellers bombard the marketplace with thousands of messages everyday in hopes of attracting newcustomers and established market for new products. The promotional activities aredifferent in each stage of product life cycle. Given the intensive competition forconsumers attention, even an established firm must constantly remind people aboutits brands to retain a place in the market & in the mind of consumer. Airtel telecomhas enough budgets for promotional activities. In the introduction stage Airtel telecom

wants to get share in the mind of consumer and in market. Airtel telecom isperforming all promotional activities like:
http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Bananihttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Bangladesh_Telecommunication_Regulatory_Commissionhttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Bangladesh_Telecommunication_Regulatory_Commissionhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Bananihttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Sales


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Advertising

Sales promotion

Personal selling

Publicity

Advertising:

Advertising is a non-personal communication paid for clearly identified sponsorspromoting ideas, organization or products. Airtel telecom is advertising its products &corporation on both print media and digital media. The main purpose of Airteltelecom is to establish corporation name in the mind of customers. They are doingcorporate advertising now. They are in introduction stage so they want to tell, Wearehere . Now

Airtel telecom is not focusing its product at all. They want to gain recognition in themarket first. In media advertising they have collaboration with BTV their ads arecoming on NTV,ATN,Channel- I and other channels.. The ad tells that Airtel telecomis for everyone it is so convenient that every person young, old, child, rich and poorcan get it. In future Airtel telecom is going to launch an effective advertisingcampaign in all over the Bangladesh. Airtel telecom is also advertising itself on printmedia as well. Their ads are in all the leading newspapers of Bangladesh theadvertising strategy is to tell the customers that Airtel telecom is present. Airteltelecom believes on long-term profitability. They think that after establishing a strongimage in the mind customers through advertising they will be able to get huge profit

and market share in the country.

Sales Promotion

Sales promotion is sponsored funding, demand stimulating activity design tosupplement advertising and facilitate personal selling. It frequently consists oftemporary incentives to encourage a sale or purchase. As Airtel telecom is inintroduction stage and there is intensive competition in the market so sales promotionis effective tool for Airtel telecom. This offer has proved very much effective. Airteltelecom increases its sales through bundle offer. Airtel telecom has introduced a

package of family & friends for both prepaid and post paid customers. In prepaidconnection the maximum limit is 6 members and in post paid connection themaximum limit is 15 members. The customers of family & friends package providespecial discount offer to each member. This strategy has also proved effective forAirtel telecom. In future Airtel telecom wants to introduce more such packages, whichattracts customers.


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Personal Selling

Personal selling is the direct presentation of a product to a prospecti8ve customer by arepresentative of the organization selling it. Personal selling is more expensive

method from any other method. Airtel telecom is doing personal selling both orcustomer basis and on corporate level. Airtel telecom is doing personal sellingthrough their sales executives and sales officers. Sales officers meet ultimateconsumers. Sales executives meet corporate bodies, conduct presentations in order tocreate awareness about their brands. Airtel telecom focus is customers and their mainobjective is to get a handsome share in the market. Airtel telecom wants to continuethis practice in future.

Publicity

Publicity is an important part of promotional mix. Airtel telecom is also doingpublicity through sign boards, tack; shows, sponsoring some concerts etc. Airteltelecom has got 56 places in Dhaka for their signboards. Airtel telecom is arrangingtrade shows in various cities. Airtel telecom has conduct a trade show in Chittagonggoing to conduct another in Barisal in purpose of these trade shows is not justintroducing products but also to entertain people. So that they can remember the nameof Airtel telecom. Airtel telecom provide a fantasy atmosphere for all age people likeyoung, old, children, male, female etc. You can dance in their trade show, Eat Bar B.Q. listen your favorite music or anything else of your own choice. Airtel telecom is

planning to arrange some concerts in different cities of Bangladesh.

Recommendation & Conclusion

After thorough research, we come to the conclusion that the marketing strategy ofairtel is working for them and the product is gaining popularity among youth day by

day. After completing our project we have concluded some recommendation for theAirtel Telecom,which are Airtel Telecom should try to emphasis more on providingtheir infrastructure in the market to facilitate their customers.Marketing team shouldtry to increase the popularity.They should also focus the all classes of people.

Documents

Aitel Has Four Major Steps in Designing a Customer