UninorMarketing Presentation

By

Ankit Khandelwal PGDM-09-019

Gyan Prakash PGDM-09-055

Harsh Nagar-PGDM-09-057

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Introduction

Joint 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.Testing of network in the circles of Kolkata and Rest of Bengal is going on and services will be launched by March 2010.Hub Head Offices at Delhi, Kochi, Chennai, Bangalore, Hyderabad, Kolkata, Patna, Mumbai, Lucknow, Guwahati, Chandigarh, Indore

Area of operation of Uninor

Parent Companies

Telenor• Founded in 1855, Telenor is the largest company in Norway, with

headquarters located at Fornebu, close to Oslo. • An International wireless carrier with operations in Scandinavia,

Eastern Europe and Asia.• The 6th largest mobile phone operator in the world, with more than

172 million subscribers.

Parent Companies

Unitech• Unitech Group is India’s second largest real estate investment

company, and has recently claimed to be the largest real estate builder in the country.

• Based in New Delhi and ranks 1484 in Forbes Global 2000 companies, 32nd in India.

• Its construction business includes highways, roads, powerhouses, transmission lines, and it has residential projects called Unitech Cities/Uni World, in cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore, Kochi, Noida , Greater Noida, Agra, Lucknow, Varanasi, Gurgaon and Ghaziabad.

• Formed by Ramesh Chandra and originally formed as United Technical Consultant Private Ltd in 1972 as a soil investigation company.

Infrastructure

• Tower Sharing-Wireless-TT Info Service Ltd, Quippo Telecom Infrastructure Ltd.

• Telecom, network and radio services- Alcatel, Lucent, Huawei Technologies India, Nokia Siemens Networks and Ericsson.

• IT services and Infrastructure- Wipro Technologies• Network management- Huawei, Ericsson and ZTE.• Charging solutions for prepaid and postpaid customers- Telcordia.

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

Talklonger@29p/min Callmore@29p/min

• Promotion- Slogan- ‘Ab mera number hai’

Brand Ambassador- Young, Energetic, Ambitious youth

• 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 television 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 stores.

• Innovational promotion in small towns.

Promotion

Institutional 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 services• 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

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

• Least capital investment as various services are outsourced.• 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

Statistics-• Cell phone ownership-

Total- 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.• Uninor is likely to be followed by Etisalat of United Arab Emirate’s

Pvt. Ltd, the Videocon group-promoted Datacom, and Bahrain’s Batelco co-owned STel.

BCG Analysis

StarsAirtel, Reliance,

BSNLQuestion Marks ? Local players, Uninor

Question Marks ? Local players, Uninor

Dogs

Virgin

Dogs

Virgin

Cash cows

Tata Teleservices(TTL)

Cash cows

Tata Teleservices(TTL)

Market growth rate

Relative Market Share

High Low

Ansoff matrix

Uninor

Porter’s Five Forces Model

Threat of Substitute Products-Internet

Threat of Substitute Products-Internet

Threat of New Entrants-Etisalat,

Datacom, STel

Threat of New Entrants-Etisalat,

Datacom, STel

Industry competitors-Airtel, Reliance, BSNL,

Vodafone, TTL, Idea

Industry competitors-Airtel, Reliance, BSNL,

Vodafone, TTL, Idea

Bargaining Power of Buyers

Bargaining Power of Buyers

Bargaining Power of

Suppliers-outsource companies

Bargaining Power of

Suppliers-outsource companies

Market opportunity Analysis

• Can the benefits involved in the opportunity be articulated convincingly to a defined target market?

Ans- The strategy of ‘micro-segmentation and targeting youth’ along with making common youth as brand ambassador of the company shows that Uninor has very well defined its target market. However it will have to watch its competitors’ moves as well.

• Can the target market be located and reached with cost-effective media and trade channels?

Ans- As Uninor has appointed over 1,000 distributors and is present in over 300,000 points of sale and outsourced infrastructural services, it can reach target market along with being cost-effective.

• Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Ans- As the company has recently lined up a Rs 5,000 cr bridge finance with the State Bank of India, which includes bank guarantees and a letter of credit that would help the company fund its 22 circle rollout.

• Can the company deliver the benefits better than any actual or potential competitors?

Ans- Uninor boasts of offering the cheapest call rate and all the regional heads are responsible for responding to the concerned customers, they may deliver better services to consumers, but Uninor will certainly have to keep giving better services at cheaper rate in order to gain its competitors’ market share as well as gaining potential buyers

• Will the financial rate of return meet or exceed the company’s required threshold for investment?

Ans- For this Uninor has sufficient loans from financial institutions and even its parent companies Telenor and Unitech are providing ample financial support. Moreover Uninor has set its target of getting Break-even in 3 years and Positive operating cash flow within 5 years in India, so the company is right now investing in market building for itself.

Market opportunity Analysis