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STAKEHOLDER MARKETING

INTERNATIONAL MARKETING ASSIGNMENNT JUNE 2010

Task one: 5 pages (pg6 to pg10)

Task two: 4100 words excluding appendices & references (pg12 to pg33)

Reference & Appendix: 5 pages including confirmation statement

(Pg34 to pg38)

Student no: 13497311

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1. The index 2

2. The

introduction2.1. Aim of assignment.......................................................................................................... 3

2.2. Assignment structure...................................................................................................... 3

3. What is international marketing? ........................................................................................... 4

TASK ONE

4. Justification of choice

4.1. Country identification..................................................................................................... 6

4.2. Product identification....................................................................................................

. 6

4.3. Maldives broadband market......................................................................................... 7

5. Internal & external stakeholders and their impact on international marketing decisions...... 7

6. Current extended marketing mix............................................................................................ 10

TASK TWO

7. Summary of audit findings

7.1. Stakeholders audit........................................................................................................ 12

7.2. Suitability of marketing mix........................................................................................ 15

8. Justify the product and international market entry................................................................. 18

9. What is the relationship marketing? What are the benefits of relationship marketing? ..... 20

9.1. Challenges of international stakeholder communication............................................. 20

10. Communication approach to dealing with different type of stakeholders........................... 21

11. What is standardization? And what is adaptation? ............................................................. 22

12. What is competitive advantage? ........................................................................................ 22

13. Extended marketing mix of major competitors.................................................................. 23

14. Extended marketing mix to beat competitive advantage................................................... 29

15. Recommend of appropriate budget..................................................................................... 31

16. Recommend for measure of the marketing mix.................................................................. 32

17. References ........... 34

18. Appendix

18.1. Company background ............. 35

18.2. about airtel broadband ............. 36

18.3. Target consumers of broadband packages .............. 36

18.4. Stakeholders of airtel in international market and their involvement

areas .............. 37

18.5. Confirmation statement .............. 38

2. The index

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The aim of assignment is to present proposal to the marketing manager to take one of our

products to international market. My suggestion is to take wireless broadband to Maldives.

The set of recommendation are listed below.

In order to structure the assignment in an applicable frame work the term international

marketing will be defined to get a first in sight.

Firstly in task 1,the suitable product of my choice and the country will be briefly described

with reference to other. Furthermore the internal and external stakeholders would be

identified with their impacts on our international marketing decision and in addition the

suitability of the current extended marketing mix of our product to meet the needs of

customers in that particular country is assessed

In the second task, the contents of task 1 will be elaborated and at the same time, concept of

our relationship marketing our communication approach towards the stakeholders would be

described moreover, our expanding marketing mix will be shown to beat competitive

advantage in international market, next for expanding international marketing an appropriate

budget will be clearly shown.

Finally, we would evaluate the success of our implemented extended marketing mix

2. The introduction

2.1. The aim of the assignment

2.2. The Assignment structure.

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Most of the companies trying to offer their products to international market because they are

looking to extend the life cycle of the products/service/brand and increase revenues &profitability.

International marketing can be defined at its simplest level, international marketing involve

the firm in making one or more marketing mix decisions across the national boundaries at its

most complex level , it involves the firm in establishing manufacturing facilities overseas and

coordinating marketing strategies across the world. Doole and lowe (2001). According to

cateora & ghauri (1999), international marketing is the performance of the business activities

that direct the flow of a company goods and service to consumer in more than one nation.

A company which has planned to enter the international market should follow theseprocesses:

1. Country identification2. Preliminary screening3. In depth screening4. Final selection5. Direct experience.

(SOURCE: www.marketingteachers.com)

3. What is international marketing?

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TASK ONE

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4.1. COUNTRY IDENTIFICATION

Bharti airtel is an Indian basis company. It would like to step on to the global market. The

best choice is to choose any SAARC region countries, as they have strong relationship as

well as show similarities in their economic growth level and culture. More over we also have

to identify the country which would be suitable to launch our brand, some facts are as

follows:

(SOURCE: TKF LECTURER MR FAILAN SALEEM)

4.2. PRODUCT JUSTIFICATION

Airtel provide number of product with the brand name, mobile connection, mobile broadband

and digital cable TV, so I have to suggest the suitable product to the Maldives market.

In case of Maldives if we offer mobile connection, through that we should offer calls, SMS,

MMS, video calls, IDD and mobile GPRS, so we cant offer all these services to only

approximately 400,000 subscribers, which is small amount of penetration compared to India,

Srilanka and Bangladesh.

More over there are 2 players competing head to head in the mobile market, so I believe that

we cant achieve great success in Maldives through this service.

If we take airtel digital cable TV, airtel has only provide that service in India as it is large

country with the lot of channels so we are achieving success in that service but in case of

Maldives it is a small country with limited number of channels and also Maldivian people

prefer mostly to listen radio than watch TV

If we move our concern to Maldivian broadband market 3 players are competing, due to their

poor services only limited amount of penetration to the internet, furthermore Maldives has

FACTS NEPAL MALDIVES BHUTAN

Market attractiveness 5.5 6.0 6.0

Competitors 5.0 7.5 6.5

Relationship betweenIndia

8.0 9.0 6.0

Regulation 6.5 7.0 6.0

Taxation policy 6.0 6.0 6.0

Political stability 5.0 8.0 7.0

Resource availability 7.0 8.0 7.0

AVERAGE 6.14 7.3 6.3

4. Justification of choice

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advance internet technology, so we hope to provide good services through broadband by

yielding many subscribers.

4.3. MALDIVES BROADBAND MARKET

Airtel originated from bharti airtel limited. Airtel is one of the largest mobile and broadband

service provider in india .they have already started their journey in srilanka & Bangladesh

and now they have planned to launch in Maldives too. Maldives is more developed than the

other countries in the SAARC region. The Maldives economy depends on tourism & fishing.

Airtel would like to offer broadband service in Maldives. Diraagu, Wataniya and rajjeonline

are the three major players competing in the broadband market in Maldives.

(SOURCE: Buddecomm)

SUPPLIERS

No firm can supply all of its own needs, so is in the case of airtel. Modems, radio wireless

system and packaging materials. Services are necessary inputs. Suppliers are critical link with

the environment, a source of cost but also of possible partnerships.

Impacts on airtel

Availability, delivery times and quality of the product are the key determinants Cost of materials are an important factor in the total cost of many products The quality of the supplier relationship is a crucial parameter in marketing

effectiveness

If partnerships fail to deliver marketing benefits, backward integration mat beconsidered.

Category 2009 2010 (e)

Internet:

Total number of subscribers 19,800 22,500

Annual growth 11% 14%

Internet subscriber penetration (population) 6% 7%

5. Internal & external stakeholders and their impacts on international marketing

decision

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CUSTOMERS

All businesses have customers has the final link in the input/output chain, whether these

customers are organisations or individuals. The population in Maldives is 300000 but only

6% are using internet, our main objectives is increase the subscribers from 6% to 10%.

Impact on airtel

Customers are the only source of income. An unsatisfied customer tells many more of the experience than does a satisfied one. Customer preferences can change very quickly but can be influenced by the marketer

airtel comes up with attractive broadband packages to keep the customers.

INTERMEDIARIES & DISTRIBUTERS

These must also be considered as an organisation does not always sell directly to the

consumer, intermediaries & distributers are important elements of the marketing channel that

makes the product available to the user. Airtel is hoping to have intermediaries such as

communication shop to make the modem in the areas where airtel outlets are not established.

Impacts on airtel

Distributers who are in effective in delivering the product to the customer will have anegative impact on a company

They have mutual interest that form the basis of joint ventures and partnershipsSHAREHOLDERS & CREDITORS

Airtel is a private company which does not sell its shares to the public if we are in need of

money we can obtain from creditors such as bank & other financial institution that provide

short & medium funds.

EMPLOYEES & UNIONS

Most organisation have employee who contribute their time and skills for monetary another

rewards. They form part of wider society and reflect its values and beliefs.

Impacts on airtel

The image of the company directly depends on the quality of employees. The more the company motivates its employees will lead to the more the company

gains benefit from them.

COMPETITORS

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They are exception in the stakeholders whereas they threaten, rather than contribute to the

survival of the business. There are three major player competing in the broadband market in

Maldives namely wataniya, dhiraagu, rajjeonline.

Impacts on airtel

Company cant make decisions without reference to its competitive environment. Pricing must account for what the market will bear and the reaction of competitors

MALDIVIAN GOVERNMENT

Impacts on airtel

Government policy of global market and global brands. Maldives broadband tariffs & tax policy.

The relationship with international government may encourage our market stability.

TELECOMMUNICATION AUTHORITY OF MALDIVES

The communications authority of Maldives has the mandate of regulating the

communications sector, creating an environment conductive for promoting competition in

services and developing these services according with the national telecom policy and

Maldives telecommunication relegulation.

MINISTRY OF COMMUNICATION SCIENCE & TECHNOLOGY

The new telecom policy was introduce by the ministry of communication which is also

responsible for ICT policy formulation, ICT management, strategic ICT planning,

formulating ICT standards and it also improves the public sector service.

MINISTRY OF ECONOMY DEVELOPMENT

This ministry is formed with authorisation to supervise all trade & business related activities

which include the registration of intellectual property, investments and companies. This

ministry is also responsible for developing and implementing trade policy and laws according

to local & international laws

MINISTRY OF EMPLOYMENT & LABOURS

This ministry responsible for the formulation of employment act which determines

fundamental principles relating to employment in Maldives and also provides all the other

maters associated with employment like the rights and obligation of employers and

employees.

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PRODUCT: our product is mobile broadband;we hope to launch three kinds of packages inMaldivian market, HOME PACKAGE, STUDENT PACKAGE and BUSINESS CLASS

PACKAGE.

PRICE: penetration pricing strategy for home and student package, market skimming

pricing strategy for business class package.

PLACE: outlets, branches, teleshops and sub dealers

PROMOTION: awareness programmes, TV and radio commercials and hoardings

PEOPLE: well trained staffs, technical officers and experienced management team.

PROCESS: full equipped call centre, proactive response to customers and doorstep

awareness programmes in educational institutes

PHYSICAL EVIDENCE: standards design for all outlets and red and white colour logo

6. Current extended marketing mix

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TASK TWO

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7.1 IDEANTIFICATION OF STAKEHOLDERS

STAKEHOLDERS LEVEL OF

INFLUENCE

IMPACT ON

AIRTEL

InternalH M L

Suppliers

No firm can supply

all of its own needs,

so is in the case of

airtel. Modems

radio wireless

system and

packaging materials.

The quality of

suppliers

relationship is the

crucial parameter

in marketing

effectiveness.

If partnership fails

to deliver

marketing benefits,

backward

integration may be

considered.

Customers

All business have

customers has the

final link in the

input/output chain,

whether these are

organisation or

individuals.

Customers are only

source of income.

A satisfied

customer tells

many more of the

experience than

does a satisfied

one.

Intermediaries &

distributers

Airtel is hoping to

have a distributers

such as

communication

shops to market the

modem in the areas

where airtel outlets

are not establish.

Ineffective

distribution will

have a negative

impact on airtel.

They have mutual

interest that forms

the basis of joint

venture and

partnership.

7. Summary of audit finding

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Shareholders &

creditors

Share holders

provide the longer

term capital while

creditors such as

banks & other

financial institution

provide short term

funds.

Adverse

shareholder

perception may

lead to selling,

which drives down

the market

valuation of the

company relative

to its net asset

value.

Maldivian Bank

interest rates may

affect our financial

division.

Employees Employees are more

powerful

stakeholders in

internal

environment, who

contribute their time

& skill for monetary

and other rewards.

The image of the

company directly

depends on the

quality of

employees.

The more

motivation we give

to the employees it

culminates in more

benefits.

External

Competitors There are three major

player competing in the

broadband market in

Maldives namely

waraniya, dhiraagu and

rajjeonline.

Pricing is accountable

for what the market

will bear and the

reaction of the

competitors.

For deciding

broadband tariff we

have to take in

consideration

competitors pricing

strategy.

Maldivian

government

Government policy of

global market and

global brand.

Maldives broadband

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tariffs and tax policy.

The relationship with

international

government may our

market stability.

Telecommunication

Authority of

Maldives.(TAM)

TAM has the

authorisation

determining the

communication sector

and creates and

environment conductive

for encouraging

competition among

services.

Overall planning and

developing of

communication sector.

Providing licence for

all telecom providers.

Regulation of tariff.

Ministry of

communication

This ministry is

responsible for making

telecommunication

policies(2006-2010)

Airtel must act upon

the policies made by

this ministry.

Ministry of

economy

development.

This ministry supervise

all trade and business

related affairs.

Before launching our

company in Maldives

we have to register our

business and submit

some of our main

documents to this

ministry.

We have to consider

the trade policies and

laws during the presses

of our business.

Ministry of labours. The ministry of laboursis responsible for

developing employment

act.

We have to enforce theemployment act (age

limitation of labours,

basic salary, rights of

employees)

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7.2 SUITABLITY OF MARKETING MIX

PLACE

OUTLETS SUB DEALERS TELESHOPS BRANCHES

PRODUCT

AIRTEL MOBILE/WIRELESS

BROADBAND

HOME PACKAGE STUDENT PACKAGE BUSINESS CLASS PACKAGE

PRICE

COMPETITOR PARITYPRICING STRETAGY FOR

HOME PACKAGE &

STUDENT PACKAGE

MARKETB SKIMMINGPRICING STRETAGY FOR

BUSINESS CLASS

PACKAGE

MOBILE BROADBAND

PROMOTION

PRODUCTAWARENESS

PROGRAMMES

HOARDINGS TV AND RADIO

COMMERCIALS

AWARENESSPROGRAMME IN

HIGHER STUDIES

INSTITUTION

PEOPLE

WELL TRAINEDEMPLOYEES

TECHNICAL OFFICERS EXPERIENCE

EMPLOYIES IN

TELECOMMUNICATIO

NON FIELD

PHYSICAL EVIDENCE

RED & WHITECOLOUR LOGO

STANDARDDESIGN FOR

ALL OUT LETS

PROCESS

FULL EQUIPPED CUSTOMER SERVICE CENTER PROACTIVE RESPONSE TO CUSTOMERS DOOR STEP AWARENESS PROGRAMMES BY

SALES FORCE

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When stepping into foreign market we have to take into consideration consumers cultural

background, buying habits, levels of personal disposable income etc in order to deliver a

tailored marketing mix programme to suit their needs & want.

Product

We are hoping to launch wireless broad band connection with slim USB modem to Maldives

broadband market. If we take Maldives internet subscribers, they only amount to 6%. So our

plan is to introduce three packages for each of the three different groups.

Price

Before deciding tariff of broadband services we have to get approval from telecom authorityof Maldives (TAM) , more over we have to look into the personal disposable income of

Maldivian citizen , two competitors current price rate, exchange rate as well as current

inflation rate of Maldives (5.8%).

We are hoping to offer reasonable price for the home package and student package, as our

aim is to motivate the non internet subscribers. On the other hand for the business class

package we are hoping to charge higher price than competitors who are offering specific

package.

Place

Male is one of the important well developed cities in Maldives as its capital. Adding to this it

is also well populated. So would like to setup our head office in male and also some of our

outlets.

In addition we have to select some important cities where we can launch our outlets, rest of

the cities we hope to substitute intermediaries like communication shops to provide USB

modem to the people living in that particular areas.

Promotion

Regarding advertisements Maldivian language Dhivehi should be used as most number of

people aware of it. Furthermore in Islamic cultural countries it is notacceptable to show

naked legs in adverts. So we have to take this point into concern as Maldives is also like that

sort of country.

We hope to setup hoardings in main cities as well as remote areas. Considering the Medias

for our propaganda we hope to use T.V, radio, press, internet as our communication tools. We

would also sponsor sporting events

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People

As for the employees, our company should recruit some well trained and highly qualified,

people from the competitor side by promising higher salary. And the others we hope to

provide training for about six months.

By doing this we can develop competitive advantage in Maldives broadband market.

Process

As we all know Maldives is a small island with fairly populated. We hope we can cover 95%

of the Maldives by providing them connection facilities within one year. We also believe that

we can put up satellites in cities as well as rural areas to provide signal through radio waves

Physical evidence

We hope to put up hoardings with very famous celebrities images and also launch attractive

outlets in most of the areas. Our logo as usual is with red and white colours.

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MARKET ATTRACTIVENESS

Market penetration is 6% in Maldives. Only approximately 40000 people are using internet,through the three internet providers. These three providers handle advance technology, the

use of these advance technology is an extravagance as in Maldives only limited number of

people use internet service and adding to this the subscribers feel anxious to penetrate these

type of service, these are the main reason why the internet market in Maldives is still at its

base.

Airtel broad bands key message to Maldivian market is simple plan to speed life the aim

of this product is to increase the subscribers penetrating to the internet service consumption.

More over the annual growth of Maldives internet penetration is increasing by percentage

every year (2009- 11%, 2010- 14% approximately) this will boost the airtel first entrance to

an international market.

CUSTOMER DEMAND

Even though the customers demand in Maldives is low, its shows the rapid increase by

percentage every year. Our competitors who play major role in internet market in Maldives

conducts most awareness programmes in the capital male so the people outside the capital

is less aware of their internet facilities, So airtel has planned to conduct our awareness in all

places not distinguishing capital and remote areas, therefore we will be able to cover the

whole of Maldives within a year.

POLITICAL STABLITY

Maldives is well known tourist paradise, this due to its political stability, thats why most

tourist visit this place often, adding to this there are no major inter political conflicts or

between other outside countries which is most common in the south Asian region like

Pakistan, Nepal and etc.

In this stability airtel can invest money in that country without any fear.

COMPETITORS

There are three major internet providers competing in Maldivian internet market. Dhiraagu

was the only one company which provided internet service to Maldives till rajjeonline made

its entry in January 2004 with an investment 0f rufiyaa 10 million. In 2009 wataniya also got

permission to provide internet service from telecom authority of Maldives. Rajjeonline

approximately got around 45% plus market share in Maldives internet market, it is the market

leader.

8. Justify the product and international market entry

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TELECOMMUNICATION & RESOURSE AVAILABLITY

The Maldives is proud on having developed one of the most advance telecommunication

systems in SAARC region. Dhiraagu has played an important role in setting up the countrys

telecom infrastructure. Maldives has opportunity to provide undersea connection between

main atolls, in order to considerably strengthen the domestic connection. Our competitors are

also providing internet connection through Wi-Fi, wimax, ADSL and mobile broadband.

Some countries are also providing telecommunication resources such as optic fibre cable

system, wireless radio system and non-line wireless systems to Maldives. These resources are

being provided by the countries like Singapore, Malaysia, India and also USA.

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1. The cost acquisition occurs only at the beginning of the relationship, so longer the

relationship, lower the amortized cost.

2. Long term customer tend to be less inclined to switch and also tend to be less price

sensitive.

3. Long term customers may initiate free word of mouth, promotion and referrals. .

4. The method is an integrated approach to marketing, service and quality.

5. Happier customer may lead happier employees.

9.1. CHALLENGES OF INTERNATIONAL STAKEHOLDER COMMUNICATION

1. Language barriers : in case of Maldives airtel should have provide training to their

employees to increase the communication skills and also airtels all communication activities

should be conducted in Dhivehi language.

2. Cultural differences: such as religious value, time value business norms and customs,

negotiating decision making styles gender roles, status differences and team working.

3. Infrastructure differences in Maldives such as technology, time zone, media and transport

infrastructure

(SOURCE: TKF CLASS NOTES)

Customer is referred to a condition where the overall process of building and maintaining

profitable customer relationship by delivering, superior customer value and satisfaction.

(KOTLER.P)

9. What is relationship marketing? & what are the benefits?

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The relationship marketing concept plays a major role international market. We hope to

maintain good relationship with each and every stakeholder in international market.

SUPPLIERS

Airtel cannot supply all of its essential materials such as radio wireless system and modem

raw materials, so suppliers play a major role in the success of our company. Our relationship

with suppliers is an essential parameter in marketing in marketing effectiveness. Therefore

we have to maintain effective relationship our suppliers, in if they fail to deliver our materials

on time it would only result in having our company negative aspect by our customers

CUSTOMERS

Customers are only source of income of our company; we have to maintain good relationship

with our customers through effective communication and promotion activities

In our advertisements we would like to use Dhivehi language, we also conduct awareness

programmes in higher studies institution, universities and also the remote villages to make

them aware of our product thereby increase our rate of customers. By developing customerdata base we can access easily and also share information with them. Through maintaining

this type of effective relationship we can ensure our sustainability in Maldives market.

EMPLOYEES

Our relationship with our staff will mainly influence their efficiency towards work; thereby it

will restrict our company from achieving its goal. Furthermore we also have to motivate them

not only through financially but also providing them a comfortable working environment to

work on, transport facilities, etc. The delay on their salary will too affect their efficiency.

GOVERNMENTS

Good relationship with government essential part of our business, if not, we will face lot of

problems such as government squeeze our necks making us pay higher tax, thereby we have

to obey governments laws and legislation, to be successful in international market. We hope

to sponsor governments events (e.g. SAARC) to maintain good relationship with Maldives

governments.

10. Communication approach to deal with different stakeholders

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PRESSURE GROUPS

Pressure groups also our stakeholders in international market. We have to engage these

groups to ensure our organisations sustainability. Such as country like Maldives cultural

pressure groups are more powerful than others. In Maldives it is not preferable to show naked

legs women celebrities in our advertisements to maintain good relationship with them.

Products often need to be modified when going out to the international market.

Standardization means providing essentially the same products in the international marketwhich is provided in the local market. Offering the same product can be undesirable in the

international environment, so we have change our marketing mix strategy which

In order to airtel we would like to offer internet service through Dhivehitel brand name

because Dhivehi is the very familiar name for the Maldivians so we can easy to access

customers.

(SOURCE: www.tutor2u.net)

A competitive advantage is an advantage over competitors gained by offering consumer greater

value either by means of lower prices or by providing greater benefits and service that justifies

higher prices

11. What is standardization and what is adaptation

12. What is competitive advantage?

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A MODEL OF COMPETITIVE ADVANTAGE

(SOURCE: www.quikmba.com)

DHIRAAGU

PRODUCT

Broadband (ADSL) Wimax Dial up

PRODUCT

BROADBAND HOME

Speed (download/upload) - 10m /512kbs

Monthly -Rf 690 / 20GB

BROADBAND BUSINESS

Speed (download/ upload) - 10M / 512kbs

Monthly - Rf 2100/ 30GB

13. Extended marketing mix of major competitors

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WIMAX

Package Price Allowance Keyword*Validity (Applicable to prepaid

only)

Home 2G Rf. 250 2 GBWiMAX

2G

30 Days from initial LoginHome 4G Rf.449 4GBWiMAX

4G

Business

UnlimitedRf.1,900 Unlimited WiMAX U

DIAL UP

Charging according to their usage per hour

4hours monthly Rf 100 15 hours monthly Rf 330

PLACE

ADSLalmost covered 70% of Maldives

Wimaxavailable at 28 islands in Maldives

Dial up - almost covered 85% of Maldives

Teleshops Atolls Main dealers sub dealers

PROMOTION

Multi educational package for schools, provide 75% 0f discount for this package andalso 10% discount fir monthly rental.

Solve technical problem by free of charge TV and radio commercials, putting hoardings in main cities Free game downloads

PEOPLE

Well experienced management Well trained employees Technical officers

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PROCESS

Full equipped call centre Wi-Fi zone Online payment system Proactive response to customers

PHYSICAL EVIDENCE

Standard design for all teleshops and customer service points Standard design uniforms for all staffs

Dhiraagu teleshop of male city (source: Wikipedia)

ROL (RAJJEONLINE)

PRODUCT

Broadband

Home user Small and medium package Large corporate package

PRICE

Biz Broadband 1MRf 2200 per month

Biz Broadband 4MRf 7520 per month

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ROL Value Pack 256k (HOME)Rf 299per month

Mega Speed 4M (HOME)Rf 420

Corporate Access 1MBRf 12900per month

Corporate Access 5MBRf 27200per month

Corporate Access 10MBRf 36900 per month

Corporate Access 2MBRf 17500 per month

PLACE

Teleshops

Branch office Main dealers outlets

PROMOTION

Live radio and TV streaming service Sponsoring school events Sponsoring educational event such as exhibitions Sponsoring tourist programmes such as beach parties and entertainment shows

PEOPLE

High emphasis of training, development and customer service Technical officers

PROCESS

Wi-Fi zones for remote areas Largest integrated service centres 24 hours troubleshoot service

Online billing system Customer complaints and feedback pages on website

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PHYSICAL EVIDENCE

Standard design for all out lets and teleshops Logo with blue colour

WATAANIYA

PRODUCT

Mobile broadband

Broadband explore Broadband extreme

PRICE

PLACE

Teleshops Dealers Atolls

PROMOTION

Offering free 10 movie tickets per month for premium customers Use famous celebrities in their advertisements Sponsoring entertainments shows

PEOPLE

Well trained employees Well trained sales people Experienced management teams Staff motivation programmes

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PROCESS

Full equipped call centres Large integrated service centres

PHYSICAL EVIDENCE

Standards designs for all outlets Standard uniforms for all staffs

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PRODUCT

In present situation the internet connection is the most essential thing in every home and most

users are children. In home most parents are unaware of the danger of surfing internet. Soairtel would like to provide child safe internet environment by filtering out pornography and

other unsuitable content for children. Through this strategy airtel would also touch corporate

social responsible concept in international market.

Airtel dont want to trouble subscribers with so many packages which the competitors are

doing (e.g.: ROL has 3 packages with 15 sub packages and dhiraagu providing 3 packages

with 10 sub packages.

We would like to provide our services through Dhivehitel brand name.

PRICE

Price contributes to the airtels business and finance objectives and also price can operate as a

competitive tool. Competing by reducing price can lead to retaliation by competitors and a

price war will always favour the firm with the most cash resources. In this case airtel would

like to use penetration pricing strategy for home and student packages so that we can retain

our customers and also recruit new ones, for business package we hope to use loss leader

pricing strategy, sell the mobile broadband for less price and charge higher rate per month.

PLACE

Male is the capital of Maldives and also the well developed city in the country so all ourcompetitors are more concerned on it rather than the remote areas.

Airtel would like cover all islands in Maldives through airtel offices, atolls and outlets; we

will also give permission to sub dealers such as communication shops cyber cafes to provide

our mobile broad bands.

PROMOTION

(SOURCE : www.marketingteachers.com)

14. Extended marketing mix of Airtel

ADVERTISING EXPOSURE

AWARENESS

KNOWLEDGE

LIKING ATTITUDE

PREFERENCE

TRIAL

REPEAT PURCHASE

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Airtel hope to use most well known local celebrities for the advertisements, conduct doorstep

awareness programmes in all schools and educational institutes because we identified that

most of the students are the ones whom should the awareness be created.

Normally Maldivians are crazy with football so we are hoping to give sponsor to eithergames or jersey of players and Maldives economy depends on tourism so airtel would like to

sponsor tourist events. Airtel should provide very high speed connection better than

competitors

(E.g.: 2mbs for home package, 5mbs for student package and 10mbs/15mbs for the business

packages.)

PEOPLE

As for the employees, our company should recruit some well trained and highly qualified

people from the competitor side by promising higher salary. This strategy has already beencarried out by airtel in srilankan mobile market, through this strategy airtel can easily trace

competitors strategies. We should recruit local people and should also train them by

providing seminars and workshops to boost the existing employees knowledge.

PROCESS

Our existing competitors are only concerned on the well developed islands, most remote

village people arent aware of the internet so airtel hope to provide signals for maximum

number of islands through mega radio wireless systems and Wi-Fi zones.

Mobile broadband is not familiar to Maldivians; most of the people are using ADSLconnections so airtel would conduct programmes to aware the people about mobile

broadband and its benefits, and airtel may use paperless payment methods, so customers can

pay the bill through online, this strategy shows environment friendliness of airtel.

The key message of the airtel in the international market is simple plan for speed life.

PHYSICAL EVIDENSE

To get competitive advantage on physical evidence airtel will provide standard designed

uniforms to all staffs, the airtel should make a standard design to all its furniture in their

branches and airtel would like to use environmental friendly packaging to cover the modem.

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WHAT IS BUDGETING?A budget is usually a list of all planed expenses and revenue it is a plan for saving and

spending. A budget is an important concept in microeconomics, which uses a budget line to

illustrate the tradeoffs between two or more goods in other terms, a budget is an

organisational plan stated in monitory terms.

PURPOSES OF BUDGETING

Implement strategy by allocating resource in line with strategy goals Coordinate activities and assist in communication between different parts of the

organisation Motivate managers to achieve targets Provide a means to control activities. Managerial performance.

METHODS OF BUDGETING

Incremental Priority based Zero based Activity based

airtel have to prepare incremental and activity budget, so airtel do not need zero based

budget because airtel is already running successfully in srilankan market.

INCREMENTAL BUDGET

In incremental budgeting is based on the previous year budget as a base where you add or

subtract a percentage to this year budget. The assumption is that there is some meaningful

justification in the last year budget. As our project has been accomplished in srilankan

market, we hope to use that as a base for our new project, to do this we have to be concerned

on exchange and interest rates.

ACTIVITY BASED BUDGET

Also known as ABC budget where the key cost are identified and budget is allocated

according to the resource required. In case of airtel it marketing mix modifications are listed

as a activity budget

PRODUCT: product features and quality maintaining and packaging cost

PRICE: airtel hope to use penetration pricing stretagy for their products thisstrategy has

chances to earn lose in initial stage of the airtel, so airtel have to mention this on its budget.

PLACE: building cost of office branches, teleshops and outlets and distribution cost

15. Recommend of the appropriate budget

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PROMOTION: cost of conducting awareness programmes in schools and education

institutions, TV, radio commercials, payments of celebrities and cost of hoarding and

billboards

PEOPLE: providing training programmes to staffs, seminars and workshopprogrammes.

PROCESS: airtel would have to give large number of money to thesuppliers who are

providing radio wireless systems and mobile broadband materials, cost of launching Wi-Fi

zones

PHYSICAL EVIDENCE

Airtel would like obtain their monthly charges by customers through online so airtel have to

pay large amount of money for this method. Cost of providing standard uniforms for all

outlets and make standard design of all outlets and teleshops.

airtel want to evaluate their extended marketing mix. The company needs to find whether this

extended marketing mix is a successful one, what people think about this marketing mix, the

pros and cons of the extended marketing mix.

These measurements could be done in following ways

SALES: Based on company sales we can evaluate the success of marketing mix elements ifairtels sales increase after the implementation of marketing mix so we ensure that the

company is in a strong position to provide aggressive packages, flexible pricing strategies,

effective distribution & proactive response to corporate customers.

TRACKING STUDIES: this technique is used to monitor responses over an extended

period of time. It monitors the variables before and after the marketing activity. Airtel can

implement this method by using specific consumer panel researchers and consumer surveys

FINANCIAL ANALYSIS: this is where airtel can monitor the marketing expenditure

against budget profitability analysis; with this analysis we can measure the success of pricing

strategy which airtel used in Maldives market

STAKEHOLDER SATISFACTION: stakeholders satisfaction ensure our sustainability in

Maldivian market, so airtel can use stake holder monitoring as a method where survey

questionnaire and depth interviews also airtel has a web page through this page customers can

type their complaints and feedbacks.

ENQUIRIES: airtel can make enquiries to find out the success of extended marketing mix.

Airtel can do a research on calls to their customers and enquiry about product quality and

features.

MEDIA EVALUATION: it is also can be used as a method where airtel needs to monitor

the medias and wants to gather information about airtes marketing mix.

16. Evaluation of methods to measure the success of extended marketing mix

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INCREASED BRAND AWARENESS: this is usually measured by formal market research,

and is one measure in promotion. It does not necessarily translate into sales revenue an

outcome, however being aware of the brand is not the same as intending to buy it. Obviously

increased awareness of the brand will probably increase the number of people who will be

interested in buying but in some cases people are aware of a brand in a negative way, in case

of airtel as mentioned before in promotion concept in marketing mix to conduct awarenessprogrammes in Maldives, through increased brand awareness we can measure how far it has

worked out among Maldives people.

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Books

TKF class notesTKF red books

The internet

www.aitel.in

www.wataniya.mv

www.dhiraagu.mv

www.rol.mv

www.tutor2u.net

www.marketingteachers.com

www.quickmba.com

18.1. COMPANY BACKROUNDAirtel which is the largest telecommunications service provider in india in terms of number of

subscribers, isthe brand of telecommunication services in india, srilanka and Bangladesh

owned & operated by Bharti Airtel.Airtel, which is being third largest cellular service

provider in the world, is a subsidiary of BhartiAirtel limited. As one of asias leading

integrated telecom services providers with an approximately 50 million broadband customers

in south asian region

The company is structured into four strategic business units - Mobile, Telemedia, Enterprise

and Digital TV. The Telemedia business provides broadband, IPTV and telephone services

in 94 Indian cities but in srilanka their only providing broadband & mobile

COMPANY VISION

Loved by more customers Targeted by top talent Benchmarked by more business

18.2. ABOUT AIRTEL BROADBAND

Wireless broadband high speed internet via wireless technology. The advantage of

introducing wireless broadband is that computer receiving internet signal need not to be

attached by net work cable to the broadband modem. The wireless broadband modemreceives the service and transmits by means of radio waves to the nearby surroundings.

17. References

18. Appendix

http://www.aitel.in/http://www.aitel.in/http://www.wataniya.mv/http://www.wataniya.mv/http://www.dhiraagu.mv/http://www.dhiraagu.mv/http://www.rol.mv/http://www.rol.mv/http://www.tutor2u.net/http://www.tutor2u.net/http://www.marketingteachers.com/http://www.marketingteachers.com/http://www.quickmba.com/http://www.quickmba.com/http://www.quickmba.com/http://www.marketingteachers.com/http://www.tutor2u.net/http://www.rol.mv/http://www.dhiraagu.mv/http://www.wataniya.mv/http://www.aitel.in/

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To use the airtel broadband, simply you need an airtel broadband sim card and smart and slim

USB modem. The airtel wireless broadband user merely has to insert the slim modem into the

PC or the laptop which he is using after user is the done with surfing he has to unplug the

modem which is portable and it could be plug back in whenever the user wants to go online.

Airtel broadband is the simple method of browsing and a fantastic way to speed up oursubscribers online experience. We hope to introduce airtel a different form by changing its

original name to dhivehitel in order to tally with their country.

18.3. TARGET CONSUMERS OF BROADBAND PACKAGES

Broadband packages Target consumers

Home package for people who rarely use internet at home

Student package School student and university student who

are browsing internet very often for their

studies

Business class package Business people who are working in upper

hierarchy are using very often using internet

for business purposes

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18.3. STAKEHODERS AND THEIR INVOLMENT AREAS

INTERNAL

STAKEHOLDERS

EXTERNAL

STAKEHOLDERS

Suppliers

Customers

Distributors &

intermediaries

Employees

Stakeholders

TAM (TRC OF

MALDIVES

Competitors

Creditors & financial

institutes

Maldivian

overnment

Economic

develo ment ministr

Labour ministry Telecommunication

ministr

AIRTEL

Indian government

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Stake

Holders

Strategic

Direct

Finance Service

Quality

Market

share

Legal

legislation

PR

media

Organisation

change

Other

regulation

Customers Yes Yes Yes

Share holders Yes Yes Yes

Government Yes Yes Yes

TRC Yes Yes

Competitors Yes Yes Yes Yes

Employees Yes

Intermediaries Yes

Suppliers Yes Yes Yes

Telecommuni

Cation, labour& economic

development

Ministries

Yes Yes

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18.4. CONFIRMATION STATEMENT

I confirm that in following this assessment for making, I understand and have applied the

CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is

the result of my own independent work/investigation except where otherwise stated. Other

sources are acknowledged in the body of the text and/or a bibliography is appended. Thework that I have submitted has not previously been accepted in substance for any other award

and is not concurrently submitted in candidate for any other award.

STUDENT NO: 13497311