Description
The objective of presentation is about marketing and branding strategies of BSNL.
Bharat Sanchar Nigal Limited
Objectives of BSNL
Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country
Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;
MARKETING PROCESS
Discovering what product, service or idea customers want Producing a product with the appropriate features and quality
Pricing the product correctly Promoting the product; spreading the word about why customers should buy it
Selling and delivering the product into the hands of the customer
Problem with BSNL
Trap of the Dying Consumer
Problems with BSNL
Value for money is only the qualifying criteria
Trap of the Dying Consumer
• BSNL has a very strong loyalty amongst a certain consumer base • These customers are aging and the younger groups are not taking a shine to the product
Value for money is only the qualifying criteria
Influencing factors • The changing income patterns • The changing manner in which cultural norms are set.
Brand Equity of BSNL
Product and Price differentiation.
• Continuous innovation in product and delivery of services with the appropriate pricing
Differentiation on the basis of quality, customer care and timely availability
• Quality depends on tangibles parameters, Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, and Communications with customer, Understanding etc.
USP of BSNL
A government company which gives service better than private could be a deadly combination, which no competitor can copy.
.
Business Development
Growth targets Competitor spend
Acquisition cost
Life time value
Life Time Value
• Acquisition cost is usually said to be 5-8 times the retention cost. • BSNL Offers life time card to the customers to acquire new customers. • By this the cost to acquire new customers decreases • The future flow of revenue from the customer increases.
ARPU
Service Provider IDEA Vodafone Airtel BSNL ARPU (in Rs.) 182 192 231 188
Source: www.topnews.in/bsnl-targets-22-million-subscriber-additions-20112254217
Negative word of mouth mktg
Expected service
Wrong perception of customer expectatio n
customer gap
In perception anything government owned sucks.
Poor advertisingno emphasis on service part
Perceived service
Focus on transaction rather than relationship
Customer expectation
No efforts to retain customers
gap 1
Too many layers b/w contact personnel and top management
Company perception of customer expectation
Lack of encouragem ent to listen to customer complaints
Failure to develop tangibles in line with customer expectation —no online billing
Customer driven service design and standards
Gap 2
Poor service design-no proper internal communication
Management perception of customer expectation
Improper physical evidence-bad quality wires and instruments
Poor employee technology job fit
Customer driven service design and standards
Inappropriate evaluation of employee performance
Gap 3
Customers lack of knowledgevillage people Demand and supply mismatchservice complaints
Service delivery
Weak internal mktg program
Service delivery
Absence of interactive marketing in communicatio n
Gap 4
Lack of awareness of latest schemes to customers
External communication to customers
overpromising
changes in ZOT
Desired Service
Personal Service Philosophy Zone of Tolerance Desired Service Zone of Tolerance Adequate Service
Adequate Service
Haryana wireline May to august 2008
Haryana Cellular May to august 2008
Punjab wireline May to august 2008
Punjab cellular May to august 2008
Kerala Wireline oct to feb 2009
Kerala cellular
SWOT Analysis of BSNL
Strength :1. It has a competitive pricing policy. 2. BSNL provides continuous training, career advancement opportunities and a self motivated work environment to its employees. 3. BSNL has a corporate culture of mutual respect and is an excellent service provider. 4. BSNL maintains solid partnerships with its customers.
Weakness:1. Although it is investing too much in R&D but its marketing skills are below average. 2. Although it is growing very fast but at the same time it is losing its customers as well because the competitors are chasing close behind.
SWOT Analysis of BSNL
Threat: 1. External factors like political instability and economic instability 2. Market saturation in term of business opportunities available in the conventional telecom business.
Opportunities: 1.Improve the marketing skills. 2. Establish a world-wide knowledge-broadcast system via internet. 3. Strengthen and expedite research & development to deliver products of top international standards.
Cheque deposit machines have been installed Access round the clock help through toll free numbers
Customer Service Centers (CSCs) now remain open on all seven days from 8.00 AM to 8.00 PM without any break for all activities.
Shifting charges for local as well as all India shifting of fixed telephone (bfone) has been abolished.
More than one Bfone connections can be applied on a single application form Majority of the local network is built up on jelly filled and OFC for trouble free service.
Payments by cheque/Demand Draft to BSNL franchisees
Dedicated site for handling customer grievances Internal Distribution Points (DPs) being provided in the customer premises to eliminate the faults arising out of overhead wires.
Steps to augment the quality of customer care to international standards.
Establishing call centers across the nation to provide single window solutions and convenience to customers.
Countrywide Network Management & Surveillance System (NMSS) to ensure uninterrupted and efficient flow of telecom traffic.
Inconvenience (Wait for service, wait for appointment)
Pricing (High price, unfair pricing, deceptive pricing)
Ethical problem (Cheating, Unsafe) Service encounter failure (Uncaring, impolite, unresponsive behaviour) Response to service failure (Negative response, no response, reluctant response)
Involuntary switching (customer moved, provider closed)
Core service failure (Service mistakes, Billing errors)
Reason for customer switching
Competition (Found better service)
RATER MODEL
Reliability
Assurance
Responsiveness
tangibles
empathy
Analysis on Rater model
Reliability
• Do not deliver what they promise
• staff not respectful to customer and in many cases staff does not have the right skill to deliver service
Assurance
Tangible
• instruments not attractive
Empathy
Responsiveness
• no individualized attention to customer, poor communication with customer • not able to solve problem satisfactorily
Strategies for Customer Retention
Complaint Manageme nt System
Complaint Management System
Visibility Accessibility Responsiveness Accountability Continuous improvement Customer focused approach
• Customer should know where to complain
• Customer should know how to complain • Formal system of lodging complaints
• Complaints need to be dealt quickly • The quicker the complaints are dealt with, the higher the customer satisfaction • Responsibility should be taken actively for handling complaints • looking at the root causes and fixing them • Taking Feedback to improve • Indicates commitment of resolving complaints by its words and actions in all fairness
Managing customer waiting
Should analyse its operational processes to identify and remove inefficiencies Reservation system can be used Keep customer occupied by installing distractions to entertain them, eg: TV sets, magazines Provide ‘waiting duration information
Explanation should be given in case of unexpected delays
Reduce pre-service waiting time by transferring some of the pre-service waiting to the service encounter phase. An enthusiastic staff should handle the waiting customers
BSNL follows Umbrella Branding
DataOne VSAT Broadband CellOne Excel bfone Sancharnet Tarang CDMA
BSNL Broadband BSNL VSAT BSNL Mobile Postpaid BSNL Mobile Prepaid BSNL Landline BSNL Internet BSNL WLL
Why Umbrella branding?
• Easier for brand recall among consumer minds • Create a uniform identity. • Would help BSNL to promote only a single brand and hence create a single marketing strategy • Shift the focus from non famous brands such as Excel and DataOne • Similar move done by telecom brands such as Airtel and Tata Indicom.
BSNL Future plan
• Plans to add 30 million customers BSNL’s Expansion with Nokia • To increase its network coverage and capacity in the states. • gives BSNL the chance to introduce the benefits of mobility to 2 million new Indian subscribers • Nokia also plans to open a Global Networks operation Center in India by the end of the year.
BSNL Future plan
PROJECT VIJAY • Expand reach • Ensure availability of BSNL products at more than 95% of telecom retail outlets • Capture significant share (25-30%) of retailer's counter sales. • Build distinctive channel management capabilities • Nurture and build strong and viable channel partner network
Conclusion
• Entry of BSNL In telecom sector has brought services at affordable cost to the common man • All services of BSNL object to provide better communication to million across India
doc_617587267.pptx
The objective of presentation is about marketing and branding strategies of BSNL.
Bharat Sanchar Nigal Limited
Objectives of BSNL
Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country
Transform in a time bound manner, the telecommunications sector to a greater competitive environment in both urban and rural areas providing equal opportunities and level playing field for all players;
MARKETING PROCESS
Discovering what product, service or idea customers want Producing a product with the appropriate features and quality
Pricing the product correctly Promoting the product; spreading the word about why customers should buy it
Selling and delivering the product into the hands of the customer
Problem with BSNL
Trap of the Dying Consumer
Problems with BSNL
Value for money is only the qualifying criteria
Trap of the Dying Consumer
• BSNL has a very strong loyalty amongst a certain consumer base • These customers are aging and the younger groups are not taking a shine to the product
Value for money is only the qualifying criteria
Influencing factors • The changing income patterns • The changing manner in which cultural norms are set.
Brand Equity of BSNL
Product and Price differentiation.
• Continuous innovation in product and delivery of services with the appropriate pricing
Differentiation on the basis of quality, customer care and timely availability
• Quality depends on tangibles parameters, Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, and Communications with customer, Understanding etc.
USP of BSNL
A government company which gives service better than private could be a deadly combination, which no competitor can copy.
.
Business Development
Growth targets Competitor spend
Acquisition cost
Life time value
Life Time Value
• Acquisition cost is usually said to be 5-8 times the retention cost. • BSNL Offers life time card to the customers to acquire new customers. • By this the cost to acquire new customers decreases • The future flow of revenue from the customer increases.
ARPU
Service Provider IDEA Vodafone Airtel BSNL ARPU (in Rs.) 182 192 231 188
Source: www.topnews.in/bsnl-targets-22-million-subscriber-additions-20112254217
Negative word of mouth mktg
Expected service
Wrong perception of customer expectatio n
customer gap
In perception anything government owned sucks.
Poor advertisingno emphasis on service part
Perceived service
Focus on transaction rather than relationship
Customer expectation
No efforts to retain customers
gap 1
Too many layers b/w contact personnel and top management
Company perception of customer expectation
Lack of encouragem ent to listen to customer complaints
Failure to develop tangibles in line with customer expectation —no online billing
Customer driven service design and standards
Gap 2
Poor service design-no proper internal communication
Management perception of customer expectation
Improper physical evidence-bad quality wires and instruments
Poor employee technology job fit
Customer driven service design and standards
Inappropriate evaluation of employee performance
Gap 3
Customers lack of knowledgevillage people Demand and supply mismatchservice complaints
Service delivery
Weak internal mktg program
Service delivery
Absence of interactive marketing in communicatio n
Gap 4
Lack of awareness of latest schemes to customers
External communication to customers
overpromising
changes in ZOT
Desired Service
Personal Service Philosophy Zone of Tolerance Desired Service Zone of Tolerance Adequate Service
Adequate Service
Haryana wireline May to august 2008
Haryana Cellular May to august 2008
Punjab wireline May to august 2008
Punjab cellular May to august 2008
Kerala Wireline oct to feb 2009
Kerala cellular
SWOT Analysis of BSNL
Strength :1. It has a competitive pricing policy. 2. BSNL provides continuous training, career advancement opportunities and a self motivated work environment to its employees. 3. BSNL has a corporate culture of mutual respect and is an excellent service provider. 4. BSNL maintains solid partnerships with its customers.
Weakness:1. Although it is investing too much in R&D but its marketing skills are below average. 2. Although it is growing very fast but at the same time it is losing its customers as well because the competitors are chasing close behind.
SWOT Analysis of BSNL
Threat: 1. External factors like political instability and economic instability 2. Market saturation in term of business opportunities available in the conventional telecom business.
Opportunities: 1.Improve the marketing skills. 2. Establish a world-wide knowledge-broadcast system via internet. 3. Strengthen and expedite research & development to deliver products of top international standards.
Cheque deposit machines have been installed Access round the clock help through toll free numbers
Customer Service Centers (CSCs) now remain open on all seven days from 8.00 AM to 8.00 PM without any break for all activities.
Shifting charges for local as well as all India shifting of fixed telephone (bfone) has been abolished.
More than one Bfone connections can be applied on a single application form Majority of the local network is built up on jelly filled and OFC for trouble free service.
Payments by cheque/Demand Draft to BSNL franchisees
Dedicated site for handling customer grievances Internal Distribution Points (DPs) being provided in the customer premises to eliminate the faults arising out of overhead wires.
Steps to augment the quality of customer care to international standards.
Establishing call centers across the nation to provide single window solutions and convenience to customers.
Countrywide Network Management & Surveillance System (NMSS) to ensure uninterrupted and efficient flow of telecom traffic.
Inconvenience (Wait for service, wait for appointment)
Pricing (High price, unfair pricing, deceptive pricing)
Ethical problem (Cheating, Unsafe) Service encounter failure (Uncaring, impolite, unresponsive behaviour) Response to service failure (Negative response, no response, reluctant response)
Involuntary switching (customer moved, provider closed)
Core service failure (Service mistakes, Billing errors)
Reason for customer switching
Competition (Found better service)
RATER MODEL
Reliability
Assurance
Responsiveness
tangibles
empathy
Analysis on Rater model
Reliability
• Do not deliver what they promise
• staff not respectful to customer and in many cases staff does not have the right skill to deliver service
Assurance
Tangible
• instruments not attractive
Empathy
Responsiveness
• no individualized attention to customer, poor communication with customer • not able to solve problem satisfactorily
Strategies for Customer Retention
Complaint Manageme nt System
Complaint Management System
Visibility Accessibility Responsiveness Accountability Continuous improvement Customer focused approach
• Customer should know where to complain
• Customer should know how to complain • Formal system of lodging complaints
• Complaints need to be dealt quickly • The quicker the complaints are dealt with, the higher the customer satisfaction • Responsibility should be taken actively for handling complaints • looking at the root causes and fixing them • Taking Feedback to improve • Indicates commitment of resolving complaints by its words and actions in all fairness
Managing customer waiting
Should analyse its operational processes to identify and remove inefficiencies Reservation system can be used Keep customer occupied by installing distractions to entertain them, eg: TV sets, magazines Provide ‘waiting duration information
Explanation should be given in case of unexpected delays
Reduce pre-service waiting time by transferring some of the pre-service waiting to the service encounter phase. An enthusiastic staff should handle the waiting customers
BSNL follows Umbrella Branding
DataOne VSAT Broadband CellOne Excel bfone Sancharnet Tarang CDMA
BSNL Broadband BSNL VSAT BSNL Mobile Postpaid BSNL Mobile Prepaid BSNL Landline BSNL Internet BSNL WLL
Why Umbrella branding?
• Easier for brand recall among consumer minds • Create a uniform identity. • Would help BSNL to promote only a single brand and hence create a single marketing strategy • Shift the focus from non famous brands such as Excel and DataOne • Similar move done by telecom brands such as Airtel and Tata Indicom.
BSNL Future plan
• Plans to add 30 million customers BSNL’s Expansion with Nokia • To increase its network coverage and capacity in the states. • gives BSNL the chance to introduce the benefits of mobility to 2 million new Indian subscribers • Nokia also plans to open a Global Networks operation Center in India by the end of the year.
BSNL Future plan
PROJECT VIJAY • Expand reach • Ensure availability of BSNL products at more than 95% of telecom retail outlets • Capture significant share (25-30%) of retailer's counter sales. • Build distinctive channel management capabilities • Nurture and build strong and viable channel partner network
Conclusion
• Entry of BSNL In telecom sector has brought services at affordable cost to the common man • All services of BSNL object to provide better communication to million across India
doc_617587267.pptx