Description
Information technology affects marketing in many ways. Some of
these save labor and provide service. Others create entirely new
products and new organizational forms. Still others enhance marketing
operations in ways that can change their character. An example of the
latter is now taking place behind the scenes in the consumer packaged
goods industry, where a new generation of data is producing a
discontinuity in the information available to marketers. In this case the
combination of data and technology is brining increased marketing
effectiveness, organization change, and shifts in power within channels
of distribution.
1
IMPACT OF INFORMATION TECHNOLOGY ON
MARKETING: A CASE STUDY OF AIRTEL COMPANY
(Abstract)
Information technology affects marketing in many ways. Some of
these save labor and provide service. Others create entirely new
products and new organizational forms. Still others enhance marketing
operations in ways that can change their character. An example of the
latter is now taking place behind the scenes in the consumer packaged
goods industry, where a new generation of data is producing a
discontinuity in the information available to marketers. In this case the
combination of data and technology is brining increased marketing
effectiveness, organization change, and shifts in power within channels
of distribution.
More general, information technology blurs traditional strategic
and functional boundaries by enabling an organization to deliver a large
number of differentiated products to a large number of differentiated
markets. For this to be successful, marketing must be closely interwoven
with operations, R&D, and sales.
Researchers on information technology have not provided a clear
definition of the term Information Technology (IT), many papers on IT
either assumed that there is a common understanding of the concept,
that the meaning of the term is implicitly understood, or define it in
such a way as to serve a specific purpose.
2
For the purpose of the present study, Information Technology (IT)
refers to the collection of products and services that turn data into
useful, meaningful, accessible information. IT encompasses all forms of
technology used to create, store, exchange, and use of information in its
various forms (business data, voice conversations, images, motion
pictures, multimedia presentations, and other forms, including those not
yet conceived). It includes modern technologies, such as,
telecommunications and microelectronics.
India’s telecom sector has been doing exceptionally well in the
past decades. Its structural and institutional reforms have provided
tremendous growth opportunity to this sector. India has more than 600
millions subscribers making it the third largest network in the world
after China and the USA. With a growth rate of 45%, Indian telecom
industry has the highest growth rate in the world. The first reform in
Indian telecommunications sector began in 1980s when the private
sector was allowed in telecommunications equipment manufacturing. In
1985, Department of Telecommunications (DoT) was established.
The study mainly purports at assessing the impact of IT on
marketing strategies of AirTel. It focuses mainly on the strategies as
regards products i.e. various products offered by AirTel as a telecom
operator. The strategies pertaining to promotion, pricing and
distribution have also been focused. The study also examines
assessment of Consumers and Retailers as regards level of satisfaction
with product strategies, promotion strategies, pricing strategies and
distribution strategies of AirTel.
3
The study on impact of IT on marketing strategy, in fact, is
confined to select two cities of U.P., i.e. Aligarh and Bulandshahr. For
the purpose of the study, two sets of questionnaire have been prepared
by the Researcher and were furnished to the respondents in Aligarh and
Bulandshahr cities respectively. Two types of respondents have been
taken for the purpose; the consumers and the retailers of AirTel. For the
both, separate questionnaire has been prepared. The questionnaires are
purported to know the degree of satisfaction level in terms of product
strategies, promotion strategies, pricing strategies and distribution
strategies of AirTel.
The data thus collected and culled up from respondents have
been organized in tabular form and suitable statistical tools have been
made proper use of to arrive at the findings of the study. And based
thereon appropriate pragmatic suggestions and recommendations have
been proffered for the planners and Telecom operators to make
marketing strategies to the users’ improved and competitive which is
need of the hour in global knowledge economy.
The following objectives have been pursued for the purpose of
the study on Impact of information technology on marketing of
AirTel:-
1. To analyse present status of telecom market in India.
2. To assess current status of GSM and CDMA telecom operators in
India.
3. To study the application of Information Technology (IT) in
marketing strategies of AirTel in providing services to customers.
4
4. To examine and study the application of Information Technology
(IT) in marketing strategies of AirTel in providing services to the
retailers.
5. To study and analyze the services provided by the AirTel and
level of customers’ satisfaction about the same. .
6. To examine the services provided by the AirTel and level of
Retailers satisfaction about the same.
7. To make a comparative analysis of the product strategies,
promotion strategies, pricing strategies and distribution strategies
of AirTel in the two cities under study.
In pursuance of above-mentioned objectives the following
hypotheses have been postulated and tested:
1. Ho the null hypothesis (H0) of the study assumes that according
to the retailers of AirTel there is no impact of use of Information
Technology (IT) on product strategies. Whereas alternative
hypothesis (H1) presumes that according to the retailers of AirTel
there is impact of use of Information Technology (IT) on product
strategies.
2. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on pricing strategies
of AirTel in view of the retailers. Whereas the alternative
hypothesis (H1) presumes that there is impact of use of
Information Technology (IT) on pricing strategies of AirTel in
view of the retailers.
5
3. The Null hypothesis (H0) of the study assumes that there is no
impact of application of Information Technology (IT) on
promotion strategies of AirTel in view of the retailers. Whereas
the alternative hypothesis (H1) presumes that there is clear impact
of application of Information Technology (IT) on promotion
strategies of AirTel in view of the retailers.
4. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on distribution
strategies of AirTel in view of the retailers. Whereas the
alternative hypothesis (H1) presumes that there is clear impact of
use of Information Technology (IT) on distribution strategies of
AirTel in view of the retailers.
5. Ho the Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on product
strategies of AirTel in view of the customer. Whereas the
alternative hypothesis (H1) presumes that there is impact of use of
Information Technology (IT) on product strategies of AirTel in
view of the customers.
6. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on pricing strategies
of AirTel in view of the customers. Whereas the alternative
hypothesis (H1) presumes that there is impact of use of
Information technology (IT) on pricing strategies of AirTel in view
of the customers.
6
7. The Null hypothesis (H0) of the study assumes that there is no
impact of application of Information Technology (IT) on
promotion strategies of AirTel in view of the customers. Whereas
the alternative hypothesis (H1) presumes that there is clear impact
of application of Information Technology (IT) on promotion
strategies of AirTel in view of the customers.
8. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on satisfaction level
of the customers as regards distribution strategies of AirTel.
Whereas the alternative hypothesis (H1) presumes that there is
clear impact of use of Information Technology (IT) on satisfaction
level of the customers as regards distribution strategies of AirTel.
with the rapid development of information technology and the
digital revolution, network effects and technological standards have an
increasingly important effect on the success of many new
products/services, including computers, electronic video games,
wireless communication, home networking, video/audio electronics,
banking services, and online music. Network effects and standards
competition impose unique challenges in both firms and consumers.
Indian telecommunications today benefits from among the most
enlightened regulation in the region, and also in the world. This sector,
sometimes considered the “poster-boy for economic reforms,” has been
among the chief beneficiaries of the post-1991 liberalization. Unlike
electricity, for example, where reforms have been stalled,
telecommunication has generally been seen as removed from “mass
7
concerns,” and thus less subject to electoral calculations. Market
oriented reforms have also been facilitated by lobbying from India’s
booming technology sector, whose continued success of course depends
on the quality of communications infrastructure.
Bharti AirTel Limited was incorporated on July 7, 1995 for
promoting investments in telecommunications services. Its subsidiaries
operate telecom services across India. Bharti AirTel is India's leading
private sector provider of telecommunications services based on a
strong customer base consisting of 50 million total customers, which
constitute, 44.6 million mobile and 5.4 million fixed line customers, as of
March 31, 2007. AirTel comes from Bharti AirTel Limited-a part of the
biggest private integrated telecom conglomerate, Bharti Enterprises.
Bharti provides a range of telecom services, which include Cellular,
Basic, Internet and National Long Distance. Bharti also manufactures
and exports telephone terminals and cordless phones. Apart from being
the largest manufacturer of telephone instruments in India, it is also the
first company to export its products to the USA. Bharti has also put its
footsteps into Insurance and Retail segment in collaboration with Multi-
National giants. Bharti is the leading cellular service provider, with a
footprint in 23 states covering all four metros.
The Bharti Mobile promoted AirTel cellular service repositions of
its brand image. The new brand ethos is portrayed in two distinct
fashions - the tag line "Touch Tomorrow", which underscores the
leading theme for the new brand vision, followed by "The Good Life",
which underscores a more caring, more customer centric organization.
8
Aimed at re-engineering its image as just simply a cellular service
provider to an all out information communications services provider,
Touch Tomorrow is meant to embrace the new generation of mobile
communication services and the changing scope of customer needs and
aspirations that come along with it. The new communication is about a
new dimension in the cellular category that goes beyond the Internet,
SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless
digital broadband services that constitutes tomorrows cellular services.
The new campaign is in two phases - the first of which communicates
overall brand philosophy and the second products and services. Airtel is
adopting a new brand- platform - Touch Tomorrow - not only to reflect
AirTel’s corporate ethos but also business strategy". The new identity
bears logo in Red, Black and White colors along with lower case
typography to convey warmth. AirTel incorporates the latest branding
in all of its communication and will soon be going in for an enhanced
promotional drive to establish the brand's presence.
AirTel launched its services before many other operators and
skimmed the market picking up the bulk of the high usage premium
clients. This is a very competitive industry with the all companies
differentiating either on value-added services or price. AirTel is
perceived as the high quality provider and has a premium image. To
promote themselves, all the players have been dependent on tactical
advertising However, they have restrained from using comparative
advertising. Hoardings have been a very popular medium for carrying
the advertisements. AirTel has also been advertising on television.
9
The following paragraphs present the findings of the study:
From the analysis, it peters out that in majority of the cases the
retailers of Airtel in both the distracts i.e. Aligarh and Bulandshahr feel
that IT has made a good deal of impact on the marketing and marketing
strategy of Airtel. Majority of the retailers respondents feel that India is
potentially good enough in terms of providing mobile services in many
ways in the world. So far as the two districts under survey are
concerned the majority retailers are agreeing to the fact that India is fast
emerging as potential mobile services in the global item means.
However, they also feel that mobile operators are facing some
difficulties due to diversity of the coverage regions and facilitate 3G
services in India the majority respondents are satisfied. They are also in
favour of implementation of number portability services and value
added services. However, the respondents from Aligarh and
Bulandshahr districts are disagreed with the fact that GPRS as an IT
product of Airtel is matching consumer’s requirements. The
respondents are also in agreement with the fact that reduction in call
and SMS rates are possible on an increase in IT in a service providing
techniques. The promotional policy of Airtel has also found support
from the respondents that they are getting timely information about
new plans or tariffs of Airtel on account of use of IT. The distribution
policy is also positively affected because of increasing use of IT. The
policy with regard to abolition of the concept of STD calls majority of
the respondents under reference support the view that with the
10
adoption of this policy there may be the possibility of while market
penetrish.
AirTel customers are largely satisfied with services based
on IT and its impact on marketing found to be tremendously
good deal of. The AirTel pricing policy, promotional policy,
marketing strategies and distribution policy are competitive
giving credence to the soaring marketing penetration in the
mobile markets of UP in and India in general. Airtel no doubts
rove to be globally competitive in the arena of mobile service
provides.
The researcher has come out with the following suggestions
and recommendations
Bharti AirTel is India's largest private sector telecom operator and
India's sixth-largest company by market capitalization. Bharti AirTel is
also the only operator to offer its services (mobile, fixed line and Internet
access) in each of India’s 23 “circles,” or operating areas. While this wide
service footprint made Bharti AirTel especially well-positioned to
capitalize on India's telecom boom, it also presented the company with
significant challenges and risks in addressing this demand. In order to
keep pace with the high level of customer services, all the processes
from order management and service activation to run smooth and in
sync with each other.
The business of the company is approaching to enter this a new
phase and in this phase high expectations of customers will play a
strategic role for Bharti AirTel. Company requires to take a
11
fundamentally new look at the ways and means through which it can
create and manage the customers demand and processes to service the
customers.
Bharti AirTel’s other big challenge is the need to make the major
investments in IT infrastructure so that it can serve it rapidly growing
base of subscribers. Undoubtedly, capital expenditure and be redeemed
by the future inflows from service revenues. However, in addition to the
inherent risks of a large fixed investment, Bharti AirTel is facing an
added financial risk due to gradual decline in India's average revenue
per user (ARPU) for mobile telecom services. This decline is mainly
attributed to the government-mandated pricing changes that created–at
roughly eight dollars a month which is one of the lowest ARPUs of the
region. However, it is absolutely essential to invest to support the future
growth furthermore some factors unique to the Indian market
substantially increased the risks of making these capital investments.
Bharti AirTel requires to establish deeper and more personalized
relationships with its customers, as well as to provide a consistent, high-
quality customer experience. It is also necessary for the company from
an IT perspective that it should integrate its diverse systems and
processes.
In line with its vision, Bharti AirTel’s advanced integration
capabilities have enabled the company to transform key aspects of the
customer experience; account activation is just one example. With Bharti
AirTel signing up an average of 1.5 million customers per month, the
12
ability to activate new accounts with maximum efficiency is essential in
future.
By integrating the account activation process with such key
backend systems as billing, provisioning and order management, Bharti
AirTel should make and endeavor to cut further the time required to
activate new mobile accounts by 90%.
Bharti AirTel’s integration framework should enable the company
to develop intelligence capabilities, which must in turn enable the
company to maximize the value of its customer relationships through
cross selling and market segmentation.
? There is a focus on maximising revenues and margins.
? offering better quality of services to its customers to maximise revenues;
? To implement a modular roll-out of cellular and fixed-line networks
with an initial focus on potential high revenue generating areas;
? negotiating centrally with all its vendors to take advantage of scale and
volumes;
? improving operational efficiencies through economies of scale and
deployment of advanced information technology tools and solutions;
and
? offering innovative solutions to the customers such as regional roaming
services to the pre-paid customers
? Capture maximum telecommunications revenue potential with
minimum geographical coverage
? Bharti Airtel should Offer multiple telecommunications services to
provide customers with a “one-stop shop” solution.
13
? Bharti AirTel can meet the total telecommunications requirements of the
customers by providing end-to-end connectivity;
? Company can also achieve synergies and derive cost advantages in
brand building, equipment sourcing and operations due to economies of
scale, reduced dependence on third parties to carry it is traffic and
deployment of best practices and processes company’s network.
? Bharti AirTel should protect itself against changes in regulation that
may result in a transfer of value across types of service providers, such
as changes in interconnect regulations that transfer value from fixed-line
providers to national long distance operators, or vice versa.
? Bharti AirTel should Position itself to tap data transmission
opportunities
? Company should build quality networks that deploy state-of the art
technology and offer the latest features, thereby providing it is
customers with service that should be equivalent or superior to the
service provided by competing operators;
? Bharti AirTel should considerable investments in state-of-the-art
information technology tools and software and deploying them across it
is networks.
? There is a need to implementing a common billing system exclusively
for the existing and proposed fixed-line networks.
Bharti AirTel need to Communicating frequently with, and seek
feedback from, the customers to continually improve in service
offerings.
14
The study offers the following recommendations:
? Lowering the tariff plans of service providers will increase more
competition.
? In order to allow technological up gradation, segment policies should be
technology-neutral, and not specifically prescriptive.
? Resolve spectrum allocation and create need-based licensing of
spectrum bandwidth to facilitate the policy of unlimited new entrants in
basic services.
? Pass rules on number portability (service migration) to allow free
market conditions for fixed line consumers, without taxing new entrants
or consumers for moving away from a monopoly service provider.
? Bringing more up gradation in VAS for the betterment of the users.
? Improvement of network infrastructure in both the urban and the rural
areas.
? Reducing the STD and ISD charges for the users.
? More FDI inflows can be enhanced.
? More Direct To Home (DTH) services will give benefits to the
customers.
? CDMA technology providers i.e. Tata and Reliance are slowly coping up
with the competition with GSM operators which gives a good benefit to
the end users. These operators should also indulge into providing
various services.
? Mobile banking is a new concept which is recently adopted by Airtel
and it provides recharge from mobile phone by tie ups with banks. This
new concept will bring a new revolution in case of inventions.
15
? Broadband services can be more focused if the spectrum issues are
solved. Still there are many rural areas where broadband services are
not available. All rural areas should be gradually covered by the
broadband services. It will help the rural customers to us IT is
improving their life style.
? Companies can provide new and different schemes to their customers.
? Enhance data services on fixed and wire line services.
? Increase in internet speed on mobile can be the criteria for the operators.
After talking to customer care executives of telecom sector, the
following recommendations can be concluded as a part of their
strategies for acquiring or retaining new customers:
? The telecom operators should take less time for solving customer’s
queries.
? Majority of the operators focus on the special occasions to launch new
schemes but they can also launch schemes on weekly or monthly basis
to attract new customers.
? TV media is more effective for the operators as per the findings. But
they should also focus on radio and newspapers for more
effectiveness.
? Customer care executives should concentrate more on pre-paid
connections for the price sensitive customers and post-paid connections
for business class people or high class people. They should use their
media tools accordingly.
? Telecom operators should concentrate more on the attributes like talk-
time facility, network, voice clarity etc apart from SMS, VAS and
16
schemes.
? Company should focus more on VAS like GPRS faci l it ies,
games, astrology, and music for young people and business news for
business people.
? Company should also focus on new technologies like 3G.
? Company should also focus on pilot projects before launching a
product, especially in case of rural areas.
The study has investigated impact of IT on marketing strategies of
Airtel with special reference to product strategies, promotion strategies,
pricing strategies and distribution strategies based on the sample
collection from two cities of western U.P. i.e. Aligarh and Bulandshahr.
However the study has taken into consideration the micro level
survey of two prominent cities of U.P. to assess the impact of IT on the
marketing strategy of AirTel. This study can be extended to other larger
cities of the state districts including of course of the rental cities to
determine to arrive at more fruitful results. Similarly more extensive
study in future can be done by covering the other districts of U.P. and
comparative study may better reveal the impact of IT on the marketing
strategy. Inter states comparison can also be made pertaining to
measure the impact of IT on marketing strategy of AirTel The study can
also be extended to compare the different services provided by
telecommunication industry in India including the leading telecom
companies such as; AirTel, BSNL, etisalat, Idea, LOOP, MTNL, MTS,
ReLIANCE, TATA, uninor, VIDEOCON, Vodafone; etc. operating in
different states of this country.
doc_523851645.pdf
Information technology affects marketing in many ways. Some of
these save labor and provide service. Others create entirely new
products and new organizational forms. Still others enhance marketing
operations in ways that can change their character. An example of the
latter is now taking place behind the scenes in the consumer packaged
goods industry, where a new generation of data is producing a
discontinuity in the information available to marketers. In this case the
combination of data and technology is brining increased marketing
effectiveness, organization change, and shifts in power within channels
of distribution.
1
IMPACT OF INFORMATION TECHNOLOGY ON
MARKETING: A CASE STUDY OF AIRTEL COMPANY
(Abstract)
Information technology affects marketing in many ways. Some of
these save labor and provide service. Others create entirely new
products and new organizational forms. Still others enhance marketing
operations in ways that can change their character. An example of the
latter is now taking place behind the scenes in the consumer packaged
goods industry, where a new generation of data is producing a
discontinuity in the information available to marketers. In this case the
combination of data and technology is brining increased marketing
effectiveness, organization change, and shifts in power within channels
of distribution.
More general, information technology blurs traditional strategic
and functional boundaries by enabling an organization to deliver a large
number of differentiated products to a large number of differentiated
markets. For this to be successful, marketing must be closely interwoven
with operations, R&D, and sales.
Researchers on information technology have not provided a clear
definition of the term Information Technology (IT), many papers on IT
either assumed that there is a common understanding of the concept,
that the meaning of the term is implicitly understood, or define it in
such a way as to serve a specific purpose.
2
For the purpose of the present study, Information Technology (IT)
refers to the collection of products and services that turn data into
useful, meaningful, accessible information. IT encompasses all forms of
technology used to create, store, exchange, and use of information in its
various forms (business data, voice conversations, images, motion
pictures, multimedia presentations, and other forms, including those not
yet conceived). It includes modern technologies, such as,
telecommunications and microelectronics.
India’s telecom sector has been doing exceptionally well in the
past decades. Its structural and institutional reforms have provided
tremendous growth opportunity to this sector. India has more than 600
millions subscribers making it the third largest network in the world
after China and the USA. With a growth rate of 45%, Indian telecom
industry has the highest growth rate in the world. The first reform in
Indian telecommunications sector began in 1980s when the private
sector was allowed in telecommunications equipment manufacturing. In
1985, Department of Telecommunications (DoT) was established.
The study mainly purports at assessing the impact of IT on
marketing strategies of AirTel. It focuses mainly on the strategies as
regards products i.e. various products offered by AirTel as a telecom
operator. The strategies pertaining to promotion, pricing and
distribution have also been focused. The study also examines
assessment of Consumers and Retailers as regards level of satisfaction
with product strategies, promotion strategies, pricing strategies and
distribution strategies of AirTel.
3
The study on impact of IT on marketing strategy, in fact, is
confined to select two cities of U.P., i.e. Aligarh and Bulandshahr. For
the purpose of the study, two sets of questionnaire have been prepared
by the Researcher and were furnished to the respondents in Aligarh and
Bulandshahr cities respectively. Two types of respondents have been
taken for the purpose; the consumers and the retailers of AirTel. For the
both, separate questionnaire has been prepared. The questionnaires are
purported to know the degree of satisfaction level in terms of product
strategies, promotion strategies, pricing strategies and distribution
strategies of AirTel.
The data thus collected and culled up from respondents have
been organized in tabular form and suitable statistical tools have been
made proper use of to arrive at the findings of the study. And based
thereon appropriate pragmatic suggestions and recommendations have
been proffered for the planners and Telecom operators to make
marketing strategies to the users’ improved and competitive which is
need of the hour in global knowledge economy.
The following objectives have been pursued for the purpose of
the study on Impact of information technology on marketing of
AirTel:-
1. To analyse present status of telecom market in India.
2. To assess current status of GSM and CDMA telecom operators in
India.
3. To study the application of Information Technology (IT) in
marketing strategies of AirTel in providing services to customers.
4
4. To examine and study the application of Information Technology
(IT) in marketing strategies of AirTel in providing services to the
retailers.
5. To study and analyze the services provided by the AirTel and
level of customers’ satisfaction about the same. .
6. To examine the services provided by the AirTel and level of
Retailers satisfaction about the same.
7. To make a comparative analysis of the product strategies,
promotion strategies, pricing strategies and distribution strategies
of AirTel in the two cities under study.
In pursuance of above-mentioned objectives the following
hypotheses have been postulated and tested:
1. Ho the null hypothesis (H0) of the study assumes that according
to the retailers of AirTel there is no impact of use of Information
Technology (IT) on product strategies. Whereas alternative
hypothesis (H1) presumes that according to the retailers of AirTel
there is impact of use of Information Technology (IT) on product
strategies.
2. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on pricing strategies
of AirTel in view of the retailers. Whereas the alternative
hypothesis (H1) presumes that there is impact of use of
Information Technology (IT) on pricing strategies of AirTel in
view of the retailers.
5
3. The Null hypothesis (H0) of the study assumes that there is no
impact of application of Information Technology (IT) on
promotion strategies of AirTel in view of the retailers. Whereas
the alternative hypothesis (H1) presumes that there is clear impact
of application of Information Technology (IT) on promotion
strategies of AirTel in view of the retailers.
4. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on distribution
strategies of AirTel in view of the retailers. Whereas the
alternative hypothesis (H1) presumes that there is clear impact of
use of Information Technology (IT) on distribution strategies of
AirTel in view of the retailers.
5. Ho the Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on product
strategies of AirTel in view of the customer. Whereas the
alternative hypothesis (H1) presumes that there is impact of use of
Information Technology (IT) on product strategies of AirTel in
view of the customers.
6. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on pricing strategies
of AirTel in view of the customers. Whereas the alternative
hypothesis (H1) presumes that there is impact of use of
Information technology (IT) on pricing strategies of AirTel in view
of the customers.
6
7. The Null hypothesis (H0) of the study assumes that there is no
impact of application of Information Technology (IT) on
promotion strategies of AirTel in view of the customers. Whereas
the alternative hypothesis (H1) presumes that there is clear impact
of application of Information Technology (IT) on promotion
strategies of AirTel in view of the customers.
8. The Null hypothesis (H0) of the study assumes that there is no
impact of use of Information Technology (IT) on satisfaction level
of the customers as regards distribution strategies of AirTel.
Whereas the alternative hypothesis (H1) presumes that there is
clear impact of use of Information Technology (IT) on satisfaction
level of the customers as regards distribution strategies of AirTel.
with the rapid development of information technology and the
digital revolution, network effects and technological standards have an
increasingly important effect on the success of many new
products/services, including computers, electronic video games,
wireless communication, home networking, video/audio electronics,
banking services, and online music. Network effects and standards
competition impose unique challenges in both firms and consumers.
Indian telecommunications today benefits from among the most
enlightened regulation in the region, and also in the world. This sector,
sometimes considered the “poster-boy for economic reforms,” has been
among the chief beneficiaries of the post-1991 liberalization. Unlike
electricity, for example, where reforms have been stalled,
telecommunication has generally been seen as removed from “mass
7
concerns,” and thus less subject to electoral calculations. Market
oriented reforms have also been facilitated by lobbying from India’s
booming technology sector, whose continued success of course depends
on the quality of communications infrastructure.
Bharti AirTel Limited was incorporated on July 7, 1995 for
promoting investments in telecommunications services. Its subsidiaries
operate telecom services across India. Bharti AirTel is India's leading
private sector provider of telecommunications services based on a
strong customer base consisting of 50 million total customers, which
constitute, 44.6 million mobile and 5.4 million fixed line customers, as of
March 31, 2007. AirTel comes from Bharti AirTel Limited-a part of the
biggest private integrated telecom conglomerate, Bharti Enterprises.
Bharti provides a range of telecom services, which include Cellular,
Basic, Internet and National Long Distance. Bharti also manufactures
and exports telephone terminals and cordless phones. Apart from being
the largest manufacturer of telephone instruments in India, it is also the
first company to export its products to the USA. Bharti has also put its
footsteps into Insurance and Retail segment in collaboration with Multi-
National giants. Bharti is the leading cellular service provider, with a
footprint in 23 states covering all four metros.
The Bharti Mobile promoted AirTel cellular service repositions of
its brand image. The new brand ethos is portrayed in two distinct
fashions - the tag line "Touch Tomorrow", which underscores the
leading theme for the new brand vision, followed by "The Good Life",
which underscores a more caring, more customer centric organization.
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Aimed at re-engineering its image as just simply a cellular service
provider to an all out information communications services provider,
Touch Tomorrow is meant to embrace the new generation of mobile
communication services and the changing scope of customer needs and
aspirations that come along with it. The new communication is about a
new dimension in the cellular category that goes beyond the Internet,
SMS, roaming, IVRS, etc but which engulfs the whole gamut of wireless
digital broadband services that constitutes tomorrows cellular services.
The new campaign is in two phases - the first of which communicates
overall brand philosophy and the second products and services. Airtel is
adopting a new brand- platform - Touch Tomorrow - not only to reflect
AirTel’s corporate ethos but also business strategy". The new identity
bears logo in Red, Black and White colors along with lower case
typography to convey warmth. AirTel incorporates the latest branding
in all of its communication and will soon be going in for an enhanced
promotional drive to establish the brand's presence.
AirTel launched its services before many other operators and
skimmed the market picking up the bulk of the high usage premium
clients. This is a very competitive industry with the all companies
differentiating either on value-added services or price. AirTel is
perceived as the high quality provider and has a premium image. To
promote themselves, all the players have been dependent on tactical
advertising However, they have restrained from using comparative
advertising. Hoardings have been a very popular medium for carrying
the advertisements. AirTel has also been advertising on television.
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The following paragraphs present the findings of the study:
From the analysis, it peters out that in majority of the cases the
retailers of Airtel in both the distracts i.e. Aligarh and Bulandshahr feel
that IT has made a good deal of impact on the marketing and marketing
strategy of Airtel. Majority of the retailers respondents feel that India is
potentially good enough in terms of providing mobile services in many
ways in the world. So far as the two districts under survey are
concerned the majority retailers are agreeing to the fact that India is fast
emerging as potential mobile services in the global item means.
However, they also feel that mobile operators are facing some
difficulties due to diversity of the coverage regions and facilitate 3G
services in India the majority respondents are satisfied. They are also in
favour of implementation of number portability services and value
added services. However, the respondents from Aligarh and
Bulandshahr districts are disagreed with the fact that GPRS as an IT
product of Airtel is matching consumer’s requirements. The
respondents are also in agreement with the fact that reduction in call
and SMS rates are possible on an increase in IT in a service providing
techniques. The promotional policy of Airtel has also found support
from the respondents that they are getting timely information about
new plans or tariffs of Airtel on account of use of IT. The distribution
policy is also positively affected because of increasing use of IT. The
policy with regard to abolition of the concept of STD calls majority of
the respondents under reference support the view that with the
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adoption of this policy there may be the possibility of while market
penetrish.
AirTel customers are largely satisfied with services based
on IT and its impact on marketing found to be tremendously
good deal of. The AirTel pricing policy, promotional policy,
marketing strategies and distribution policy are competitive
giving credence to the soaring marketing penetration in the
mobile markets of UP in and India in general. Airtel no doubts
rove to be globally competitive in the arena of mobile service
provides.
The researcher has come out with the following suggestions
and recommendations
Bharti AirTel is India's largest private sector telecom operator and
India's sixth-largest company by market capitalization. Bharti AirTel is
also the only operator to offer its services (mobile, fixed line and Internet
access) in each of India’s 23 “circles,” or operating areas. While this wide
service footprint made Bharti AirTel especially well-positioned to
capitalize on India's telecom boom, it also presented the company with
significant challenges and risks in addressing this demand. In order to
keep pace with the high level of customer services, all the processes
from order management and service activation to run smooth and in
sync with each other.
The business of the company is approaching to enter this a new
phase and in this phase high expectations of customers will play a
strategic role for Bharti AirTel. Company requires to take a
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fundamentally new look at the ways and means through which it can
create and manage the customers demand and processes to service the
customers.
Bharti AirTel’s other big challenge is the need to make the major
investments in IT infrastructure so that it can serve it rapidly growing
base of subscribers. Undoubtedly, capital expenditure and be redeemed
by the future inflows from service revenues. However, in addition to the
inherent risks of a large fixed investment, Bharti AirTel is facing an
added financial risk due to gradual decline in India's average revenue
per user (ARPU) for mobile telecom services. This decline is mainly
attributed to the government-mandated pricing changes that created–at
roughly eight dollars a month which is one of the lowest ARPUs of the
region. However, it is absolutely essential to invest to support the future
growth furthermore some factors unique to the Indian market
substantially increased the risks of making these capital investments.
Bharti AirTel requires to establish deeper and more personalized
relationships with its customers, as well as to provide a consistent, high-
quality customer experience. It is also necessary for the company from
an IT perspective that it should integrate its diverse systems and
processes.
In line with its vision, Bharti AirTel’s advanced integration
capabilities have enabled the company to transform key aspects of the
customer experience; account activation is just one example. With Bharti
AirTel signing up an average of 1.5 million customers per month, the
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ability to activate new accounts with maximum efficiency is essential in
future.
By integrating the account activation process with such key
backend systems as billing, provisioning and order management, Bharti
AirTel should make and endeavor to cut further the time required to
activate new mobile accounts by 90%.
Bharti AirTel’s integration framework should enable the company
to develop intelligence capabilities, which must in turn enable the
company to maximize the value of its customer relationships through
cross selling and market segmentation.
? There is a focus on maximising revenues and margins.
? offering better quality of services to its customers to maximise revenues;
? To implement a modular roll-out of cellular and fixed-line networks
with an initial focus on potential high revenue generating areas;
? negotiating centrally with all its vendors to take advantage of scale and
volumes;
? improving operational efficiencies through economies of scale and
deployment of advanced information technology tools and solutions;
and
? offering innovative solutions to the customers such as regional roaming
services to the pre-paid customers
? Capture maximum telecommunications revenue potential with
minimum geographical coverage
? Bharti Airtel should Offer multiple telecommunications services to
provide customers with a “one-stop shop” solution.
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? Bharti AirTel can meet the total telecommunications requirements of the
customers by providing end-to-end connectivity;
? Company can also achieve synergies and derive cost advantages in
brand building, equipment sourcing and operations due to economies of
scale, reduced dependence on third parties to carry it is traffic and
deployment of best practices and processes company’s network.
? Bharti AirTel should protect itself against changes in regulation that
may result in a transfer of value across types of service providers, such
as changes in interconnect regulations that transfer value from fixed-line
providers to national long distance operators, or vice versa.
? Bharti AirTel should Position itself to tap data transmission
opportunities
? Company should build quality networks that deploy state-of the art
technology and offer the latest features, thereby providing it is
customers with service that should be equivalent or superior to the
service provided by competing operators;
? Bharti AirTel should considerable investments in state-of-the-art
information technology tools and software and deploying them across it
is networks.
? There is a need to implementing a common billing system exclusively
for the existing and proposed fixed-line networks.
Bharti AirTel need to Communicating frequently with, and seek
feedback from, the customers to continually improve in service
offerings.
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The study offers the following recommendations:
? Lowering the tariff plans of service providers will increase more
competition.
? In order to allow technological up gradation, segment policies should be
technology-neutral, and not specifically prescriptive.
? Resolve spectrum allocation and create need-based licensing of
spectrum bandwidth to facilitate the policy of unlimited new entrants in
basic services.
? Pass rules on number portability (service migration) to allow free
market conditions for fixed line consumers, without taxing new entrants
or consumers for moving away from a monopoly service provider.
? Bringing more up gradation in VAS for the betterment of the users.
? Improvement of network infrastructure in both the urban and the rural
areas.
? Reducing the STD and ISD charges for the users.
? More FDI inflows can be enhanced.
? More Direct To Home (DTH) services will give benefits to the
customers.
? CDMA technology providers i.e. Tata and Reliance are slowly coping up
with the competition with GSM operators which gives a good benefit to
the end users. These operators should also indulge into providing
various services.
? Mobile banking is a new concept which is recently adopted by Airtel
and it provides recharge from mobile phone by tie ups with banks. This
new concept will bring a new revolution in case of inventions.
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? Broadband services can be more focused if the spectrum issues are
solved. Still there are many rural areas where broadband services are
not available. All rural areas should be gradually covered by the
broadband services. It will help the rural customers to us IT is
improving their life style.
? Companies can provide new and different schemes to their customers.
? Enhance data services on fixed and wire line services.
? Increase in internet speed on mobile can be the criteria for the operators.
After talking to customer care executives of telecom sector, the
following recommendations can be concluded as a part of their
strategies for acquiring or retaining new customers:
? The telecom operators should take less time for solving customer’s
queries.
? Majority of the operators focus on the special occasions to launch new
schemes but they can also launch schemes on weekly or monthly basis
to attract new customers.
? TV media is more effective for the operators as per the findings. But
they should also focus on radio and newspapers for more
effectiveness.
? Customer care executives should concentrate more on pre-paid
connections for the price sensitive customers and post-paid connections
for business class people or high class people. They should use their
media tools accordingly.
? Telecom operators should concentrate more on the attributes like talk-
time facility, network, voice clarity etc apart from SMS, VAS and
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schemes.
? Company should focus more on VAS like GPRS faci l it ies,
games, astrology, and music for young people and business news for
business people.
? Company should also focus on new technologies like 3G.
? Company should also focus on pilot projects before launching a
product, especially in case of rural areas.
The study has investigated impact of IT on marketing strategies of
Airtel with special reference to product strategies, promotion strategies,
pricing strategies and distribution strategies based on the sample
collection from two cities of western U.P. i.e. Aligarh and Bulandshahr.
However the study has taken into consideration the micro level
survey of two prominent cities of U.P. to assess the impact of IT on the
marketing strategy of AirTel. This study can be extended to other larger
cities of the state districts including of course of the rental cities to
determine to arrive at more fruitful results. Similarly more extensive
study in future can be done by covering the other districts of U.P. and
comparative study may better reveal the impact of IT on the marketing
strategy. Inter states comparison can also be made pertaining to
measure the impact of IT on marketing strategy of AirTel The study can
also be extended to compare the different services provided by
telecommunication industry in India including the leading telecom
companies such as; AirTel, BSNL, etisalat, Idea, LOOP, MTNL, MTS,
ReLIANCE, TATA, uninor, VIDEOCON, Vodafone; etc. operating in
different states of this country.
doc_523851645.pdf