24-AIRTEL+PROJECT - 1)Examine the circumstances in which...

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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
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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. Bharti was 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
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and efficiency. So Airtel and other brands were treated as premium-class brands. 2)Explain
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This note was uploaded on 06/09/2010 for the course MARKETING mkt-505 taught by Professor Asadawan during the Spring '10 term at University of Management and Technology.

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24-AIRTEL+PROJECT - 1)Examine the circumstances in which...

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