Presents

EVOLVERE
Context The telecom industry is one of the most highly competitive sectors in India today. The huge growth potential of the industry has continued to attract new players over the years, thus maintaining a high amount of competition. This in turn induced tariff reductions, which acted as a further catalyst in the growth of subscribers. With rural India also joining the mobile revolution, there was a strong focus to acquire subscribers by operators, which led to aggressive pricing and a roll out of innovative strategies. The competition became so intense that all telecommunication companies, including strong players like Airtel, Aircel and Vodafone found themselves in the midst of a price war as a way to increase their subscriber base. Predatory pricing, which has weighed on the profitability of Indian telecom companies, continues to haunt the sector. Aircel is facing a lot of pressure on their top line due to increased competition in VAS and other services which have led to price based competition. Simultaneously, regulatory, marketing and operational costs are on the rise putting pressure on their bottom line as well. Focus has shifted on EBIDTA over PAT over the years as well. Thus predatory pricing of their services coupled with increased costs and similar service offerings are turning out to be a huge challenge for Aircel.

Problem Statement 1. A lot of potential lies in the pricing of voice services. Which pricing techniques can be used to extract maximum revenues and improve Aircels bottomline? 2. Utilize relevant models to calculate the WTP (Willingness To Pay) for the voice services and the price sensitivity of the customer. This would have to be a comprehensive model based on primary research which would incorporate the prices of competitors as well. Models like monadic price testing, price laddering etc. may be used. Usage of more robust techniques than the two mentioned would be a criterion for evaluation. This should be a solution which is implementable in the current industry scenario. 3. Suggest an innovative product and pricing strategy (possibly coupons or vouchers) which can be used to exploit customer price sensitivity (from Point 2) to increase revenues? 4. Understand the cost of producing one minute and disaggregation of cost structure (For example operational, marketing, regulatory). reduce such costs (fixed vs flexible)? 5. How can this be linked with the problem of pressure on PAT faced by Aircel? Is that an industry characteristic? Should Aircel try to expand and penetrate? Or should they play it safe and try to work towards their margins first? Participants would be expected to undertake thorough primary research for the 2 nd & 3rd point which would be the most important deliverables. A deep understanding of the Telecom Industry should also be shown in the Point 4 & 5. A presentation would be the form of submission with maximum 10 slides. All entries must be mailed to ensemble.maxi@gmail.com. Case submission file name & mail subject: Evolvere_CollegeName_TeamName How do we

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