Slide 1: Marketing Strategy Comparison AirTel & Hutch Rahul, Priyanka, Zardar, Rashmi Indian Institute o Planning &

Management Ahmeda!ad Slide 2: Pro"ect Introduction #$Telecoms are rolling out like ne%er !e ore& And that '(()million mark doesn*t look too ar a+ay& The mo!ile su!scri!er !ase crossed ,million in Septem!er .((-, an o%er)/( per cent increase o%er the pre%ious year$0 Slide 3: Pro"ect Introduction Cont1d$ 2 Indian Cellular Industry +ill touch 3.4 !illion !y the end o .((,& 2 Airtel 5.. per cent market share, o%er '- million mo!ile su!scri!ers, source6 Cellular 7perators Association o India8 +itnessed its highest)e%er net addition o '&9 million mo!ile customers in a single :uarter& Slide 4: Pro"ect Introduction Cont1d$ 2 Hutch, +ith o%er '( million su!scri!ers 5'- per cent market share8 may !e ;o& 4 5!ehind Reliance and <S;=8 at present, !ut it has the highest a%erage re%enue per user& Slide 5: AirTel Marketing Strategy <usiness Process Management Process Inno%ations and Continuous Impro%ement through People In%ol%ement Pro!lem In%estigation !y >?act <ased ) Root Cause Analysis> Slide 6: Cont1d$ Customer)@e ined <usiness Processes <ased on Customer Speci ications, AirTel ha%e +e!!ed many !usiness processes on the ollo+ing concepts6 @eli%ery time Turn around time =ead)time Time to market 7ther per ormance indicators Slide 7: AirTel Marketing Strategy Cont1d$ Result 7riented Approach Aach process has !een designed !y irst planning the desired result& The targeted results are then arri%ed at through identi ication o the ollo+ing6 The neBt)customer and end)customer eBpectations& Cuanti ia!le purpose o the process and key result areas& Past eBperience o >Dhat +ent +rong and can go +rong>& Slide 8: AirTel Marketing Strategy Cont1d$ ;aturally, the target customer +as clearly de ined6 elite, up market pro essionals and entrepreneurs& >De positioned AirTel as an aspirational and li estyle !rand, in a +ay that tri%ialiEed the price in the mind o the consumer& It +as pitched not merely as a mo!ile ser%ice, !ut as something that ga%e him a !adge %alue,# F recalls Hemant Sachde%, chie marketing o icer 5mo!ility8 and director, <harti Tele)Gentures& Slide 9: AirTel Marketing Strategy Cont1d$ 2 In 'HHH, the rules o the game changed& The ;e+ Telecom Policy came into e ect, replacing licence ees +ith a re%enue)sharing scheme and eBtending the licence period rom '( to .( years& 2 ;o+, cellular ser%ice operators could drop their prices and target ne+ customer segments& As SAC < !ecame part o the catchment area, Airtel*s communication changed rom >po+er> to >touch tomorro+>& Slide 10: AirTel Marketing Strategy Cont1d$ 2 In .((., Airtel signed on music composer A R Rahman and changed its tune to >=i%e e%ery moment>6 Rahman*s

signature tune or Airtel is, perhaps, the most do+nloaded ringtone in India& <ut that +as "ust part o the ongoing communication& Slide 11: AirTel <rand Re%ie+ 2 AirTel has the most recogniEa!le !rand in the Indian operator space, +ith /(&9I o our respondents a!le to identi y it as a mo!ile !rand unaided& 2 Dhile this is lo+er than many o its competitors, eBamination o the %arious !rand strength indicators sho+s AirTel has a much stronger !rand than its competitors do& Source6 IA Market Research Corp& F /(th 7ct .((, ) '4 Pages ) I@6 IAMR'/J(,49 Slide 12: AirTel <rand Re%ie+ cont1d$ 2 7 respondents, .J&4I identi ied AirTel +ith #cool0, .,I +ith #creati%e0, and ..I +ith #technically ad%anced0& 7nly 9&,I o respondents identi ied AirTel +ith #cheap0& 2 <et+een .((4 and .((-, it has increased its market share rom .(&-I to .'&-I o the market& Source6 IA Market Research Corp& F /(th 7ct .((, ) '4 Pages ) I@6 IAMR'/J(,49 Slide 13: AirTel Ad Campaigns Slide 17: Hutch Marketing Strategy #$A !ig success actor +as ho+ aspirational o%ertones in !rand imagery stayed, e%en though price +ars had started& Again, the colour orange +as a seminal attri!uteK the !rand*s slogan +as *The uture*s !right, the uture*s orange*$0 Slide 18: Hutch Marketing Strategy Cont1d$ #$The ne+ !rand name also heralded the arri%al o a ne+ mascot, the >Hutch> pug& Dhen Hutch launched the A!!y)+inning >Dhere%er you go our net+ork +ill ollo+*> ad, %ie+ers !elie%ed that +as Hutch*s ne+ slogan, !ut it +as "ust one !rand attri!ute $0 Slide 19: Hutch Marketing Strategy Cont1d$ Galue)added ser%ices 2 >Pri%ileges> 5discount coupon !ooklets8, cricket scores and stock market in ormation ) ha%e ormed as critical a part o Hutch*s marketing e orts as its ad%ertising& 2 Hutch Dorld 5LPRS ser%ice8, 2 Hutch Ali%e 5non)stop, streaming action8 2 Hutch4Help, a uni:ue dial)in *con%enience* ser%ice, all emphasiEe the premium attri!utes o the ser%ice& 2 Chhota Recharge, small %alue recharge cards 5starting at Rs '(8, +hich +ill also help mo!iliEe small spenders& Slide 20: Hutch Mo!ile Shop ) A great initiati%e Slide 21: Hutch Ad Campaigns Slide 24: Marketing Research Analysis Dhich card is used& HMTCH .'I AIRTA= (I <S;= -(I TATA I;@IC7M .HI I@AA Slide 25: Marketing Research Analysis Cont1d$ Ser%ice pro%ided !y the customer care 4I 4I yes, I m satis ied& no, not satis ied& can*t say H.I

Slide 26: Marketing Research Analysis Cont1d$ net+ork connecti%ity yes, I m satis ied& no, not satis ied& can*t say Slide 27: Marketing Research Analysis Cont1d$ Cuality pro%ided !y Ser%ice Pro%ider (I yes, I m satis ied& /HI no, not satis ied& ,'I can*t say Slide 28: Marketing Research Analysis Cont1d$ <illing System .'I yes, I m satis ied& 4HI no, not satis ied& can*t say /(I Slide 29: Marketing Research Analysis Cont1d$ Card do you pre er 49I prepaid postpaid -.I Slide 30: Marketing Research Analysis Cont1d$ Cost satis action '(I yes, I m satis ied& no, not satis ied& //I -JI can*t say Slide 31: SARGCMA= model The Measurement and A%aluation o Ser%ice Cuality ) SARGCMA= model6 Ser%ice Cuality N 5Per ormance F ABpectation8 The +ord OSARGCMA=1 is an a!!re%iated orm o ser%ice :uality& The measurement +as de%eloped !y Parasuraman, Zeithaml, and <erry 5herea ter, PZ<8 in 'H9-& Slide 32: ?i%e @imensions o SARGCMA= Model 5Re%ised rom Potler, P 'HHH Marketing Management, Millennium Adition Prentice Hall8 @imensions @escriptions Tangi!les The appearance o Physical acilities, e:uipment, personnel and communication materials& Relia!ility The a!ility to per orm the promised ser%ice& @ependa!ly and accurately & Responsi%eness The +illingness to help customer & pro%ide prompt ser%ice& Assurance The kno+ledge & courtesy o employees and their a!ility to con%ey their trust and con idence& Ampathy The pro%ision o caring indi%idualiEed attention to customers Slide 33: SARGCMA= Model Methodology 2 The ra+ data used in computing coe icient alpha +ere in the orm o di erence scores& 2 A di erence score or each item C, representing percei%ed ser%ice :uality +as ound !y su!tracting the eBpectation score rom the corresponding per ormance 5or perception8 score 5C N P F A8 Slide 34: Research ?indings 2 LSM ser%ice pro%iders 5cellular8, customers seem satis ied +ith the *a!ility to make and recei%e calls in any part o the city*, ho+e%er, the ser%ice pro%iders ha%e allen short in meeting customers eBpectations +hen it comes to co%erage +ithin !uildings, in !asements or in li ts& Slide 35: Research ?indings Cont1d$ 2 The corporate image o the ser%ice pro%ider continues to !e an important aspect in dri%ing retention and most ser%ice pro%iders ha%e !een success ul in !uilding a positi%e and a%ora!le image among the su!scri!ers& Slide 36: Research ?indings Cont1d$ 2 The study also re%ealed that *Arror ree* and *accurate* !ills, !eing promptly deli%ered is something that the customers seem to !e

taking or granted and ha%e little impact on retention& 7n the contrary, non)deli%ery on these could cause a lot o disgruntlement and unhappiness +ith the ser%ice pro%ider& Slide 37: Research ?indings Cont1d$ 2 Another re%elation +as that customers seemed %ery pee%ed +ith the amounts they had to pay or local and ST@ calls& Slide 38: Research ?indings ;egati%e 7utcomes The cellular industry has per ormed !elo+ a%erage in %arious aspects related to 2 *customer care Q helpline*& These include *time taken !e ore someone attends to you*, their *a!ility to resol%e complaintsQ :ueries in the irst instance* Slide 39: Research ?indings ;egati%e 7utcomes Cont1d&& 2 *o%erall time taken to resol%e complaints*, call center personnel*s a!ility to take decisions& 2 *kno+ledge o customer care personnel a!out tari plans and schemes* and 2 *the promptness in taking action on complaints*& Slide 40: Samit Sinha, Managing Partner, Alchemist <rand Consulting #&&There isn*t a great deal o di erentiation in terms o pricing, ser%ices, schemes and so on, !ut there are di erences in approach& 7%erall, AirTel is ocused on unctionality and e iciency, +hile Hutch has %eered to+ards +armth and emotions$0 Slide 41: Meenakshi Madh%ani, Managing Partner, Spatial Access 2 #$ it +ould not !e right to conclusi%ely say that <rand A is stronger than <rand <& Ho+e%er, i you consider adoption o the ser%ice !y consumers as an indicator o !rand strength, then AirTel +ould rank reasona!ly high$0 Slide 42: 2#&&Dhat matters is +hat the customers +ant&&> ) Mittal, CA7 <harti Teleser%ices Slide 43: 7ther Indian Cellular Ser%ice Pro%iders Slide 44: Thank Rou