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1)Examine the circumstances in which Bharti launched
Airtel and trace the brand’s initial days in the backdrop of
the emerging cellular telephony market in India. In the
light of the ‘leadership’ campaign, analyze why Airtel and
other cell phone brands were seen as premium-end
offerings.

Sunil Bharti Mitlal was a New Delhi based Business man


who started small bicycle-parts business in 1970’s first he
entered the telecom business by establishing Bharti
Telecom Limited (BTL) that manufactured Telephonic
equipment. Over the years it entered into other business
related to telecom industry. The main services of the
bharti group included Airtel (cellular), Mantra (Internet
Services) and beetel (telephone instruments).In
1992,Bharti entered the cellular market launching services
in Delhi.Airtel was launched when 80% of the people
didn’t even heard the term “cellular Services”. That was
only confined to the premium class people. In the early
2000’s bharti invested heavily in the acquisitions and the
alliances to expand its cellular market in India. As a part
of this, Bharti acquired IT Mobile (AP & Karnataka),
skycell (Chennai) and Spice Cell (Kokata).It also
collaborated with BPL to gain seamless access in
Mumbai, Maharastra, Chennai, Delhi, Kerala, Tamil Nadu
,AP and Karnataka. Bharti launched Airtel as a postpaid
cellular service in Delhi in November 1995. The company
redefined the way cellular service were being marketed in
the country. Airtel was the first cellular operator to set up
cellular showrooms. It opened its first showroom “Airtel
Connect” in Delhi, in late 1995. Bhartiwas also the first
cellular company to install a second mobile switching
center. The company was first to provide roaming cellular
services and other value added services such as smart
mail, fax, call hold, cal waiting and information services.
It was also the first company to launch an online e-
commerce portal that enabled customers to make online
payments.
The tariff rates charged by the
government were quite high. Air time charges were as
high as Rs16 per minute as against Rs.1.20 for land line
communication.
Thus, all players targeted the premium sector, which
could afford the rates. Airtel was also positioned for the
elite class. Airtel launched the ‘Leadership Services’
campaign which featured successful men and women with
their deluxe cars, carrying laptops and using cell phones.
So people started thinking that Airtel was an aspirational
brand, which was meant for leaders and celebrities.
People began associating three core benefits with the
Airtel brand –leadership, performance and dynamism.
Other supportive values associated with the brand
included courtsy, politness and efficiency. So Airtel and
other brands were treated as premium-class brands.

2)Explain the reasons behind the ‘leadership’ campaign


being replaced by the ‘Touch Tomorrow’ campaign. Also
critically comment on the campaigns decision to replace
‘Touch Tomorrow’ with ‘live every moment’.

Though the ‘Leadership’ services campaign


was successful and resettled in a marginal improvement in
Airtel performance, it failed to attract more customers as
it failed to add an emotional dimension to the brand.
Analysis perceived the brand to be distant, effective and
cold. The surveys also revealed that the concept of
leadership was itself undergoing a transformation. The
public perceived the campaign as leaders are people who
worked with a team to achieve common objectives rather
than those who dictated terms to their subordinates. The
surveys also indicated that 50% of the new subscribers
adopted a cellular service from the advice of their close
one’s. So Airtel realized the fact that customer-
relationship was of great importance and lacking an
emotional or humanized touch was a major weakness. So
in August 2000, bharti launched its new ‘Touch
Tomorrow’ which aimed at strengthening its relationship
with customers. The new campaign and the positioning
was designed to highlight the relationship angle and make
the brand softer and more sensitive previously Airtel was
perceived as a premium brand ,now the new positioning is
intended to add warmth to these attributes. The new
commercial developed for this campaign reflected human,
aspirational, family –centric and software brand values
while promising easy reach. The campaign look’s into the
needs of the tomorrow customer. The new branding
initiative takes into cognizance the findings that
consumers consider Airtel as a brand of the successful
people and a preferred address. In early 2002, Airtel
changed its logo and tagline from ‘Touch Tomorrow” to
“live every moment” to give Airtel a younger look. The
new logo symbolized innovation, energy and friendliness.
The company reportedly allocated Rs.1 billion for media
coverage and other brand building activities.Airtels brand
identity and campaign will now have a new younger and
international look and feel that builded on the earlier
positioning of “Touch Tomorrow”, injected with renewed
energy and heightened optimism. The shif to “live every
moment” from touch tomorrow had nevertheless, proved
that Bharti is consistently on the lookout for best
marketing strategies for Airtel.

3) Do u think Bharti has not been giving enough time for


one positioning plank to prove effective before moving on
the next? What are the merits and demerits of frequently
changing a brands positioning?

Bharti has been giving enough time for


one positioning before shifting to the other one. Now the
technology is growing so fast that the needs and behavior
of people is changing so rapidly. What people think today
is not what they thought yesterday. Their views and
opinions keep changing quite frequently. Today, anything
is reaching the consumers very fastly. So the time lapse
between two different positioning of Airtel is quite
enough for a positioning to prove effective. That time is
enough for that positioning to show impact on the people
before they get bored. The advantages are quite high
compared to the disadvantages.
MERITS:
1. Gives a new look to the brand.
2. Changes the impact that is created.
3. Changes the way that it is perceived.
4. If the old campaign has no good response, then the
new logo may get good response.
5. This helps in rectifying the mistakes that were done
for the old campaign.
6. Can be changed according to changing trends and
needs.
7. Different campaigns may reach different segments
of people thus reaching all the people.

DEMERITS:
1. Frequent changing may cause negative impact on
people. People may not associate themselves with
any single campaign.
2. Frequent changing may create an impact of
instability.
3. Sum times the new campaign may get introduced
before the old one reaches the people.

COFFEE PARLOURS IN INDIA-


HOTTING UP

1) Differentiation and the cost leadership are the


two generic strategies that a company can adopt
to create a competitive advantage in a market.
What are the strategies that Barista, CCD and
Qwiky’s have adopted? Which strategy do you
think is suitable for the Indian market? Give to
justify your answer.

Strategies adopted by Barista:-


Barista established in 2000 in New Delhi was the
largest and fastest growing coffee chain in India.
Barista positioned itself as a lifestyle brand with Italian
neighborhood. Barista was the leader in espresso
coffees. Barista was made with top grand Arabica beans
and brew masters from Italy were invited to create
blends. Alliance with Tata coffee would supply food
items like baguettes, croissants, cookies, sandwiches,
pastries and desserts. Every month it introduced and
focused on a particular type of coffee. The idea was to
change customer’s occasional indulgence and make it a
habit and educate them about the original coffees. It
also developed store-in-store concept by focusing on
themes that
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