Corporate and brand strategy of Indian telecommunications organization

IDEA Cellular Limited entered to world of Indian Telecommunication in year 2002 after an extended series of businesses and collaborations with others and groups under Birla group of companies. Since that time, the business has kept its core focal point on maximizing the subscriber base and gain maximum share in the GSM mobile services market. The major brand identification happened after bollywood actor 'Abhishek Bachchan' became the brand ambassador with slogan- 'An Idea can change your life' with various ground-breaking adverstiments specially to attract rural people in country

For this assignment, information was gathered from various online sources and books. I first explained the corporate and brand technique for the firm and then analyzed the firm's strengths and weaknesses by conducting a SWOT analysis. The next phase was to design the online marketing strategy for the firm. I positioned the marketing goals and objectives and measure the 4 P's of the firm and then developed the 4 P's that the firm would utilize within the next year. The ultimate step was predicated on 7C's to analysis the business website which helped to developed online technique for Idea.

Industry Analysis:

Subscriber base Analysis:

As per telecom regulatory authority of India report by October 2010 total subscriber data reached 742. 12 million out of which wireless subscriber base reaches 706. 69 with overall increase of 2. 61% from last year.

As published latest performance indicator report for quarter April-June 2010 YOY growth is 48. 73%

In rural India teledensity for wireless telephone subscribers is 33. 0% while in urban areas teledensity is 67. 0%

Top players in wireless telephone subscribers are Bharti, Reliance, Vodafone, Tata and Idea

Idea is no. 5 player contributes 10. 76% to total Indian Telecom wireless industry.

Average earnings Per User (ARPU) has dropped by 7% during the last quarter

MOU for customers dropped to 2. 2% when compared with last quarter results.

Source: Telephone Regulatory Authority of India NEWS RELEASE from May 2010 to October 2010

Reasons for growth in telecom services:

Escalating telecom services with bettering infrastructure.

Introducing new and new service providers.

Declining tariffs due to increase in competition to attract lots of customers.

Reducing handset costs help in the growth of the industry.

Company Analysis:

Idea Cellular Limited (!DEA) is one of the leading mobile provider in India with number of subscribers 74. 2 million as on Sept, 2010. Idea is within 11 out of 22 service areas, covering ~80% of the national subscriber base. . It is the one of the most effective growing mobile service in India. Idea offers number of services as per customer needs with some unique feature like-'women's card' for special need of woman (always want to talks more), youth card for young generation of India. Recently idea is awarded with 3G range in 11 major areas out of 22 in India with cover major revenues of Idea.

Source: Telephone Regulatory Authority of India report as on 30. 10. 2010

Mission Statement:

"We will delight our customers while meeting their individual communication needs anytime anywhere. We survive because of our customers. "

Porter's 5 Force Model(book detail)work required from allessays-incompleted

Category

Impact

Cause

Threat of New Entrants

High

Rules are set by TRAI for new entrants in telecommunication sector. And competition is increasing as new and new entrants are emerging in the market that may become a major challenge for Idea.

Bargaining Power of Suppliers

Low

Cause of service based industry few suppliers are on the market and supplier lacks bargaining power is low. There is huge competition in the market for suppliers for hardware supplies (handsets) and software supplies (mobile software or operations) which makes the bargain power low for suppliers.

Bargaining Power of Buyers

High

Increase of customer awareness for new offers from different brands and volume of possibilities to them to choose the best for themselves, increase in competition make lots of options available to customers which improve the braining power of buyers.

Substitutes

Low

VOIP, Wireless and satellites services have negligible influence on mobile phone businesses as they provides the connectivity when on the move and subsequently act as substitute for mobile phones. This means threats from substitutes is low.

Rivalry

High

High Price Competition, High agitate Rate and Promotional offers from rivals are incredibly regular to attract the customers in this industry gives high rivalry rate.

SWOT Analysis:

Competitor Analysis

Mobile Industry is booming in India with new companies entering every year. The pattern follows by Indian Telecommunication is having metro with highest presence of most major telecommunication companies followed by Circle A and B with existence of only major players and lowest Circle mainly rural areas where only govt support like BSNL operates. With this heavy competition companies try their best to find appropriate positions of distinguish their products. There are a few pan-national players like Idea while some are concentrated to particular areas.

Idea main focus areas are voice and data traffic and unique VAS services that happen to be generally through prepaid talk time plans. The lack of brand loyalty among consumers letting competition more robust and stronger on the market. The major Competitors for Idea are:

Bharti Airtel

Reliance

Vodafone

Tata

BSNL

Segmentation:

Idea cellular provides GSM mobile services in different regions across various circles. The buyer market for mobile services is majorly segmented as:

Geography:

Indian telecom industry is divided into 22 main circles and Idea operates in every sector offering different and customised services according to circle. for eg for Punjab circle it provide customised services as Punjab are users and same for other circles as per their requirements. Even there is distinguished between rural and urban area users. Idea mainly penetrates towards rural areas

Demographic:

Customers are segmented according to their ages and Idea offers mobile services accordingly to age and gender. Young customer between age 15-25 years require less cost and high consumption where Idea offer young cards to these age group customers. Same for males and females segment they have got different attitudes to use of cell phones. Considering this Idea offer women cards where with low cost women can talk for very long time.

Behavioral:

On the foundation of user type customer can segmented corporate or individual. Idea offer special facilities for individuals participate in same organization

On basis of use rate customers can segmented as light (don't use mobile much), medium and heavy (use mobile very frequently) and Idea provide special benefits to such type of users.

On basis of user status customers are segmented as first time users and regular brand loyal customers. Idea offers several different cards and benefits for first time user so that they become brand loyal and better and new offers to regular customers to keep up their brand loyalty.

Benefits:

Customers mainly classified on basis of their level of customization and the kind of services they required. Few customers always opt to have hassle free and simple plans mainly the old group and few customers always prefer regular personalized plan accordingly to their requirements and consumption timing. For some customer network and connectivity is more important rather than any plans and offers.

Target Market:

Idea follows on multi segment approach focusing on the demands of different segment areas.

To target Youth or young people between your age 15 to 25 years, Idea started" My-Gang" Pre-Paid card which the neighborhood group calls rate 10 paisa each and every minute and message one paisa per minute.

To attract women Idea introduce Women card which provide offers like emergency calling, calling at the rate of 50/min from 2 p. m. to 4 p. m. ("kitty party rates").

Idea not only young and women customers but offers lots of customized products to provide to various different segmentation of men and women like lovers, people, old age people, low income people

Market Position and Branding:

Brand Strategy:

"Innovate. Stimulate. Liberate. "

The telecom industry keeps growing at a very rapid pace. As per the Ansoff Product (book details)- IDEA going along with the Market Development Strategy. Main focus of Idea is to target new markets for eg:rural area of India. Idea mobile provides affordable and reliable services with efficient and stable network in count to, impressive and customised products that set free customers from limitations of time

The different ad campaigns based on "A CONCEPT can change your daily life" (finally a ad series called "what an idea sirji") mainly focused towards creating new ideas, raise awareness and provide answers to social issues which brings the existence of Idea's network comprehensive everywhere across India. Yet to explain

Marketing Mix:

1. Product

Idea Cellular provides services like:

Voice and SMS service: Idea offers voice and SMS services at very competitive prices to its customers. Starting with services in Andhra Pradesh and Madhya Pradesh, it has now expanded its network to all or any major circles.

Value Added Services: To attain customer loyalty Idea offer Value Added Services (VAS) major targets women, business people, and young people. Major VAS services includes:

GPRS: Witht he increase in internet usage, Idea offer GPRS service to its customer where they use internet whenever they required on their mobile phones and even it provides customers to gain access to mail with real-time synchronization with mail server specially for business users.

Idea Radio: Idea in collaboration with Radio to provide its customer radio services on mobile.

Music Messaging: Cellular Jockey is service where you can send music SMS to your friends and loved one.

Other Value Added Services: Other services include live TV streaming, easy billing option, payment by mobile of utility bills, travel booking etc.

Wireless Internet: Idea provide wirless serives uder name of Idea net setter in form of "plug and play" which is merely a USB which require no extra installation to surf internet

Strategy for next year:

Following the traits, mobile market could reach maturity in next 5-6 years where then differentiation should base only on the assistance mobile companies provided. So for coming years Idea mobiles should concentrate more on urban market as well with new service offering as presently Idea is more concentrate to rural market. . The next could be some new features they should think about:

Idea will come up with new and attractive plans like couple of years back they introduced caller tunes which really attracted people but at extra costs now in coming time they have to provide these services as a part of basic packages.

Like other countries they should tie up with mobile manufacturing companies to provide handset along with sim cards and packages.

To invest more in rural market they have to provide basic information like weather upates, news cost free cause major of the rural India people depends after farming.

2. Price:

Pricing strategy and Implementation

One of the main impact of increased competition is the purchase price wars among companies which lead to lower their prices (1paise per second), to survive in the market. Idea also needs to follow the same pricing strategy to remain in the marketplace because customer who choose idea for low price will else move to other low price mobile providers which is further frustrated by soon with introduction of MNP (mobile number portability) where customer don't require to improve their number. However financial implications of pricing model will affect the overall profitability of company.

This ignore is mainly dependant on two factors: reduced tariff and customer is billed on per second rather than per minute because previously when a customer talked for 10 seconds he was charged for one minute however now if the client calls for only 10 second then he will charged for 10 second only. These low degrees of margins aren't sustainable in the long run, where over time they need to increase their prices to sustain in market. Although Idea can detect its profitability by reducing operating costs. Idea should make an effort to focus on its major rural market by reducing prices and keep loyal to brand

3. Place:

Objective:

Idea Cellular operates in all 22 service areas/circles parts where more than 76% revenue comes from areas like Delhi, AP, Gujarat, MP, UP, Haryana, Kerala

Source: The Telephone regulatory auhotirty of India Press release for subscriber base as on 30. 10. 2010

The medium of service distribution is really as follows:

My Idea and Idea Zone: The direct retail shops from Idea which provide all services from buying new connection to pay bills recharge topups, plan change, buying wirless services or idea products. These outlets are located within metropolis area to hide maximum users.

Local Retailers: The authorised distributors of Idea services located any place in the town. They only provide services like new connections and recharge top ups however, not deal in services special like lost SIM replacement, customer complaint handling etc. At a few of these shops, there are facilities for bill payment and cheque drop box.

Internet: The Company can also obtain all information from Idea website. Custmoers can also pay their bills, buy top ups.

Strategy for next year:

Setup more and more My Idea stores, and Idea Zones which help those to directly connect to the customers provide better solutions to theory requests.

Open kiosk at important places for bill payment and complaint registrations.

Because of India law for security norms, process for apllying new connection continues to be manual, Idea should make an effort to ease the process to raise the customer experience.

4. Promotion:

Objective

Most of the mobile companies are providing almost same kind of services with few modifications. In this case it is really important to position your brand as best as is possible and for this the best idea is to promote the brand with best multimedia campaign and market communication. The objective of campaigns is to communicate the customer various new plans, their features, and promotions.

Message and Creative strategy:

Idea has developed the complete marketing communication around social issues. The use of brand "Idea" in its tagline "A CONCEPT can change your daily life" is in a position.

It mainly follows two different strategies of fabricating brand awareness and creating and loyialty for brand purchase intention:

Transformational appeal: To create brand awareness, they emphasize to stir up emotions that will motivate purchase especially in rural areas. For instance: a 90-second advertisement, in which a girl is denied to become listed on the institution because of non availability, Abhishek Bachchan who's the main of the school comes up with idea of starting mobile classes. The students will gather around a mobile to learn the lessons and teachers communicate wirelessly. To make interest, they just showed only a 10 second teaser for first couple of days and after setting up a curiosity among the list of audience they aired full 90 second commercial.

Informational appeal: To generate and facilitate brand purchase intention, idea designs campaigns which elaborate product attributes or benefits. In such kind of campaign major attributes like call rates or other benefits such as free talk-time or value added services are highlighted. To fulfil this end each goes for product comparison ads (for example: to communicate the great things about women's calling card they developed a campaign which depicts women from different backgrounds having different lifestyle utilizing their Idea women's calling card to fulfil their different needs such as advice, security and beauty tips). To find the attention of the prospective audience, first half of the commercial is shot in a background of 1960s i. e. in retro environment.

Communication Channels:

Mass Media:

Television:

Idea follows a mass marketing strategy like all the brands because this medium has highest reach in the united states. To communicate through this channel:

Idea buys tv slots from 10 sec to 90 sec in famous TV shows. The idea of advertisement is created by agency Lowe Lintas, Idea choose Abhishek Bachan as their brand ambassador.

Idea also sponsors sports events such as that of IPL (became one of the sponsor of Mumbai Indians) which can be broadcasted on it and watched by millions.

Idea sponsors famous award functions and TV reality shows "Idea Khataron Ke Khiladi- Part 2", "Idea Bharat Ki Shaan on DD", "Idea IIFA awards", "Idea Filmfare Awards" etc. which assists with bettering brand image.

Print Media:

This is mainly used to highlight plans and offers. Whenever a new plan is launched, Idea give full page ads in the main newspapers and on regular bases Idea give advertisements about different tariffs and plans.

Billboards and Hoardings:

Idea places its billboards and hoardings at several places in metropolis such as over a roadside near a traffic light or on highways. The look is customised according to the region. This can help the company in connecting with the diverse market at an area level.

Tie up with IOC:

Idea also tangled up with Indian Oil Corporation to make use of their petrol pumps and gas agencies for branding and distribution of Idea sim cards and recharge vouchers.

Online advertisement:

Idea arises with different campaigns on internet sites from time to time to interact and connect with large online youth community.

Mobile advertisement:

Idea runs several campaigns and contests on mobile to engage existing customers and reward them through monetary prize, thus, reinforcing the relation of Idea with the customer.

7 C's of marketing: (book model in appendix)

The website of Idea Cellular services is http://www. ideacellular. com/. The website analysis based on 7 C's of marketing is as follows:

Contract:

Idea website is divided into nine sections including Home, Prepaid, Postpaid, VAS and Roaming, Business offerings, Customer care, Blackberry, Wireless internet, investors. Website is not too complex and easy to comprehend even for a person who have no idea much about using of websites so you can get information and can pay online bills indicates that Idea's believe in simplicity with regard to customers.

Content:

The content of website is quite useful and presents all the required information to customers as well as investors. It covers like company history, major events, pr announcements, company mission, values, products etc for everyone. From investors prospective it covers sharing holding pattern, Annual reports, presentations etc. Idea users can login for their personal account in website for check details, update them, paying bills etc. Overall it provides required the valuable information

Construction:

The website is user-friendly and simple to use. Connectivity to different tabs is accessible on website as well as individual tabs itself. All tabs/sections provide simple and direct meaning about their significance.

Community:

There are different types of communities which continue entering the market to let people connect. Idea enables you to to hook up to facebook as well now. Presently people can part of "Kaho what's your idea" community.

Customization:

Presently Idea website will not let any customization of any products or plans. If user want any change in their cellular phone plans they need to visit Idea retail outlets The only choice available is that individuals can register their themselves for new connections on available plans or edit their personal details.

Communication:

There is one common tab appear as a banner for those parts of website run five(presently) promotional advertisements which keep on changing about new plans, products, offers of the company. These advertisements are comparatively of short duration (few seconds). The web site is not loud to support the thought of simplicity.

Commerce:

The website provides current users to pay their bills, recharge their top ups and edit their personal details.

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