We will discuss-

Market Leader Strategies Market Challenger Strategies Market Follower Strategies Market Niche Strategies

Agenda

Market Leader Strategy A market leader should generally adopt a

defense strategy Six commonly used defense strategies

◦ Position Defense◦ Mobile Defense◦ Flanking Defense◦ Contraction Defense◦ Pre-emptive Defense◦ Counter-Offensive Defense

Bharti Airtel limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa.

http://www.airtel.in/

Airtel’s Insight

The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH and national & international long distance services to carriers.

It operates a GSM network in all countries.

Airtel is the fifth largest telecom operator in the world with over 200 million subscribers as of October 2010. It is the largest cellular service provider in India, with over 143 million subscribers as of September 30, 2010. It has a 29.00% market share of the GSM mobile service in India.

http://en.wikipedia.org/wiki/Bharti_Airtel

Contd…

This involves the defense of a fortified position.

This tends to be a weak defense because you become a sitting duck. � �

It can lead to a siege situation in which time is on the side of the attacker, that is, as time goes by the defender gets weaker, while the attacker gets stronger.

Position defense

Airtel Enjoying tariff plans as they wish before Tata Docomo came with per paisa billing (06th August, 2009 )now Airtel also adopted the same plan.

Initially they use to charge high message charges according to different plans but when message packs started they also came with that.

EXAMPLE POSITION DEFENSIVE STRATEGY

Tata Docomo was the first operator to instigate ISD price war by a whopping reduction of 83 per cent, bringing ISD call equal to Local calls

Reverse CRBT - Idea Cellular was the first company

to launch (30th March 2010) the reverse ring back tone service, by the name PreTones. Tata Docomo launched the service next, and called it My Song.

Bharti Airtel was the third operator to roll out this VAS for its customers.

Contd…

This involves constantly shifting resources and developing new strategies and tactics.

A mobile defense is intended to create a moving target that is hard to successfully attack, while simultaneously, equipping the defender with a flexible response mechanism should an attack occur.

Mobile defense 

Radio streaming to mobiles - Bharti Airtel partnered with private FM station Radio Mirchi to launch Mirchi Mobile (April 26, 2010) initially in Delhi & Mumbai.

DTH recording via mobile - Airtel Digital TV, the DTH service from Bharti Airtel, is the first to launch a set top box which enables TV recording through a mobile phone, remotely (April 7, 2010)

EXAMPLE MOBILE DEFENSIVE STRATEGY

Mobile Applications SNAPTU- Connect with your friends on facebook, twitter and IM, no matter where you are.

Bharti Cellular EDGE service-The company was the first to conduct field trials in November with its equipment supplier Ericsson.

Contd…

Airtel has diversified into-

a) Airtel Broadband

b) Airtel Digital TV

Contd…

This involves the re-deployment of your resources to deter a flanking attack.

You protect against potential loss of market share in a segment, by strengthening your competitive position in this segment with new products and other tactics.

Flanking Defense

Untapped Rural market- Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector. Now Airtel is moving into rural areas as well.

0.facebook.com - Facebook had deals with Videocon and Reliance in the Indian market. The service is totally free except for access to photos and video content on the network which is charged.They have recently added Airtel to the group.

EXAMPLE of FLANKING DEFENSIVE STRATEGY

Withdraw from the most vulnerable segments and redirect resources to those that are more defendable

By planned contraction or strategic withdrawal

Contraction Defense

Airtel was also involved in establishment of own tower business but later it shifted its business to the “Indus Towers”.

Indus Towers Limited was incorporated in November 2007

Indus Towers = Vodafone (42%) + Bharti Airtel (42%) + IDEA (16%)

Source: http://www.industowers.com/about-us/shareholders

Airtel on 10 June 2009 signed a three-year pact with group company Comviva Technologies Ltd. for managed services (value-added services)

Source: www.comviva.com/media/Comviva_Airtel_deal_wsj.pdf

EXAMPLE CONTRACTION DEFENSIVE STRTEGY

In 2004, Bharti Airtel had struck a 10-year deal worth $750 million with IBM to outsource its Indian IT operations.

Source: http://www.business-standard.com/india/news/airtel-inks-dealibm-for-africa-operations/408435/

Contd…

Detect potential attacks and attack the enemies first

Let it be known how it will retaliate Product or brand proliferation is a form of pre-

emptive defense

Pre-emptive Defense

In Aug 2008 Vodafone was planning to declare the Apple iPhone 3G launch date but Airtel has officially declared the launch date of the device as 22nd August 2008.

Source: http://www.techdrunk.com/vodafone-loses-advantage-preemptive-launch-airtel-officially-confirms-launch-date-apple-iphone-3g-2/539/

EXAMPLE PRE-EMPTIVE DEFENSIVE STRTEGY

Responding to competitors’ head-on attack by identifying the attacker’s weakness and then launch a counter attack

Counter-Offensive Defense

On December 23, 2005 Airtel was the first to announce the lifetime validity for incoming calls scheme. The move is seen as a response to the Tata Teleservices's 'Non-Stop Mobile' scheme launched in October, 2005, which allows a customer to receive calls for two years

Source: http://www.rediff.com/money/2005/dec/24airtel.htm

http://www.rediff.com/money/2006/jan/16spec.htm

http://www.tata.com/company/releases/inside.aspx?artid=fucIdW8oYEA=

http://www.cdmaindia.com/forums/indicom_prepaid/tata_indicom_launches_39non_stop_mobile_life39_54.0.html

EXAMPLE COUNTER-OFFENSIVE DEFENSIVE

STRTEGY

Vodafone in Indian market

Market share of Vodafone is : 118,038,168 (as on 31st oct’10)

Presence in 23 telecom circles in 2G and 9 circles in 3G

Market Challenger

Types of Attack Strategies Frontal attack Flank attack Encirclement attack Bypass attack Guerrilla attack

Market Challenger Strategies

You clearly indicate that you’re taking the leader head-on in a high-risk but potentially high-payoff strategy. Here’s you match your opponent in all respects : product, advertising (spend & reach), pricing and distribution

Frontal attack

Where ever you go our network follows. Network challenging campaign

Blackberry pearl flip launch by airtel 2008 and vodafone’s blackberry storm launch in 2009

Vodafone’s Frontal Attack

Identify a shift in market segments that cause gaps to form, act swiftly to fill those gaps and develop them into strong segments that are loyal to you

Flank attack

Credit recharge 10 rs CRBT access and job portal service Blackberry launched as prepaid World calling card offers Night calling pack 11PM-6AM

Vodafone’s Flank Attacks

If you’re a big firm with lots of resources, you attack the leader on multiple fronts.

The objective is clear. Grab as much share as possible through a simultaneous attack on a couple of fronts.

Encirclement attacks

In 2005 as Hutch

Chotta Recharge Night minute calling plans 2000 SMS free per month

Vodafone’s Encirclement attacks

Vodafone’s Encirclment attacks

In 2009 as Vodafone

Vodafone launches 29 new services with their new avatar zoozoo

Vodafone Torch magic box,2 year replacement warranty with Lifelong validity just in 1199/-

Vodafone’s Encirclment attacks

Bypass attack is the attack on the areas which is not defended or negelected by the leader or the other competitors.There are three ways of doing bypass attack

1.Devlop new product 2.Diversify into unrelated product 3.expand in new geograpical area with

same product

Bypass Attack

Vodafone announced launch of its solar phone VF247 first solar mobile phone in india

Introduction of vodafone chota recharge card of Rs10

Tata docomo launch with per second billling plan

Examples of Bypass attack

Guerrila warfare consists of waging small,intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds.The guerrilla challenger uses both conventional and unconventional means of attack . These include selective price cuts and intense promotional blitzes.Guerrilla warfare is more a preparation for war than a war itself.Ultimately,it must be backed by a stronger attack if the challenger hopes to beat the opponent.

Guerrilla Attack

Vodafone tie up with the shopper’s stop for the manufacture of zoozoo faced shirt,mugs,bathroom accessories.

Launch of vodafone magic box at RS 1199 to attract the low end customers

launch of vodafone most economic RS 4 bonus card offer for its prepaid customer by which they can choose one benefits from the benefits like calls to local vodafone @of 10p, 400 local and national sms,8 local and std min and 40 night talk min to local vodafone between 11pm to 7 am.

Examples of Guerrilla Attack

The follower strategies are:

1. Counterfeiter

2. Cloner

3. Imitator

4. Adaptor

Market Follower Strategy

The counterfeiter duplicates the leader’s product and package and sells it on the black market or through disreputable dealers

A chunk of fake handsets come from China

Counterfeiter

Fake products Sold in Name of Nokia

The cloner emulates the leader’s products, name, and packaging, with slight variation.

Aircel when started its operation was supposed to be following Airtel which was the market leader and Aircel’s logo and colour was some what similar as compare to Airtel.

Cloner

The imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location

Airtel RC 98 Vs Uninor MyConnect 90

Night calling and Friends plan

Group calling

Super 5

Mobile App Store

Imitator

The adapter takes the leader’s products and adapts or improves them

Uninor adapted to Indian market by slashing the tariff and coming up with innovative plans.

Adapter

MARKET NICHER STRATEGIES

Richard Branson – ‘There is no point in Virgin doing anything, unless we can make a difference.’The branding and marketing style of Virgin comes with a difference.

Target customers aged between 15 and 30 years. Estimated population in India of people between

15 and 30 years - 600 million. Distinct mobile phone usage habits by the young

users present a huge advantage:◦ Early adopters.◦ They make more and longer out-bound voice

calls. ◦ Significant users of SMS, potentially large

customers for other value added services.◦ Shorter handset upgradation cycle - under

12 months

Why This Segment???

Get paid to receive calls (10ps/min) 50 paisa to any local network One Touch access to V-Bytes Unlimited access to V-Bytes for a simple

daily charge Easy Handset upgrades Personalised Care

Virgin Launches First

Virgin aired commercials where youngsters find ways to win approval in sticky situations. While Indian youngsters had a carefree spirit, there is a lurking desire for legitimacy in whatever they do. TV Commercials: Popular ads, use lambent wit.

Emphasis on the idea - Find a way around, rather than a way against.

Advertisements

TV Ads

Internet Ads

Free Virgin Mobile Minutes.

Virgin Mobile allows customers to earn free airtime by participation in online advertisements and media. For example, you could watch a short commercial and earn a minute of airtime.

Sales Promotion

Virgin invites students to be brand ambassadors and request them to sell Virgin merchandise such as T-shirts. In return, it invites groups of students for counselling sessions.

44 per cent of total Internet population in India lies within the age group of 19-24 years. Youth customers spend significant chunk of their time online.

Customers rewarded with additional talk time, extra messages and other freebies.

E.g.: Bak Bak offer provides online customers Rs. 100 worth of free talk time, 500 free SMSs, lifetime validity and a free prepaid connection on purchase of every handset.

Sales Promotion

Aircel is a joint venture between Maxis Communications of Malaysia and Apollo Hospital Enterprise Ltd of India.

UTSB has a 74% stake in Aircel and the remaining 26% is with Apollo Hospitals.

It is India’s fifth largest GSM mobile service provider with a subscriber base of over 46.51 million, as of September 30, 2010.

It has a market share of 9.65% among the GSM operators in the country

FLYPP an application developed by Infosys is been introduced into Aircel technology environment.

It is the first cellular service provider offering apps stores.

This application store would be the fourth to launch in the country – Nokia launched its Ovi Store in May last year and Blackberry brought its app store to India in November. Before them, Apple’s App Store for iPhone users was already in existence.

Aircel Pocket App Stores

AIRCEL - BLYK

Aircel- Blyk is also hip and happening youth mobile service brings exciting MMS and SMS on events and entertainment updates, exclusive offers, interactive trivia and opinion polls from the brands you like. Even better by simple receiving these messages you’ll get bonuses like talk time, data or SMS with every Blyk recharge.

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