Brand audit of BSNL mobile service

22/3/2011

Brand Audit of BSNL Mobile Service

A Strategic Brand Management Presentation on

Presented By:

Nikita Sanghvi

22/3/2011

Brand Audit_BSNL Mobile Service

STEVENS B SCHOOL

Content of Presentation

Brand Inventory

Brand Exploratory

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STEVENS B SCHOOL 22/3/2011


Brand Inventory

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Introduction

On October 1, 2000 the Department of

Telecom operations, Government of India

became a corporation and was

christened Bharat Sanchar Nigam

Limited (BSNL) .

No. 1 Telecommunications company

Largest public sector undertaking of India

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Source: www.bsnl.co.in

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Introduction

Type : Telecommunication provider

Availability : All over India (except Mumbai and Delhi)

Founded : 19th century

Slogan : Connecting India

Revenue: Rs. 32,045 crores (US $ 7.13 billion) in 2009-10

Net Worth: Rs. 86,476 crores (US$ 19.26 billion) in 2009-10

Owner : Government of India

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Aspiration

Be the leading Telecom Service Provider in India with global

presence

Create a customer focused organisation with excellence in sales,

marketing and customer care

Leverage technology to provide affordable and innovative

products/services across customer segments

Provide a conducive work environment with strong focus on

performance

Establish efficient business processes enabled by IT

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Marketing Mix

1. The PRODUCT is provision of communication service( Basic Telephony, mobile ( CDMA, GSM) technologies, Dedicated leased circuits, Voice over IP, Internet services)

2. The PRICE is based on the usage charges as per tariff apart from the installation cost. Discounts are offered to heavy callers.

3. The PLACE of delivery is the customer premises/location.

4. The PROMOTION very limited till recently. However now logos, brands names for different services, slogans (Connecting India) etc have been coined. Very recently advertisement in the print media as well as television commercials has been released.

5. The PEOPLE have a key role to play since it is a service sector. However this is the weakest link in the marketing mix since the monopoly attitudes have hardly changed at the ground level.

6. The PROCESS is another one of the neglected Ps. A lot of corrective processes have being provided for after the complaints by line up of escalations, meeting the senior officials etc. Yet the preventive/ proactive processes are not sufficient/ (work –in – progress).

7. The PHYSICAL EVIDENCE (being a service sector) depends on the maintenance of front end staff dealing with customer care, the office premises and facilities available there, toll free numbers, call centers.

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Financial Position

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Financial Position

BSNL net loss at Rs 1,822.65 cr in FY10 on reduced tariffSource: http://www.deccanherald.com/content/89990/bsnl-net-loss-rs-

182265.html

Reasons:

Decline in revenue from wirelines Reduced tariff offered in a competitive market Increased staff cost Various marketing activities and network upgradation Mass surrender of connections

BSNL's gross revenue declined to Rs 33,547 crore for the year ended March 31, 2010 as against Rs 33,983 crore for the previous fiscal

BSNL's total market share (GSM and WLL) reduced from 15.64 % in March 2008 to 11.44 % in June 2010.

Another state-run telco, MTNL, saw its market share declining to 15 per cent in June this year from 19.73 per cent in March 2008 for the Mumbai circle.

For the Delhi operations, MTNL's share decreased from 14.1 per cent in March 2008 to 12.47 per cent in June 2010.

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Brand Portfolio

In year, 2008, BSNL changed the name of all its existing services to streamline its Brand portfolio

SERVICE TYPE OLD NAME NEW NAME

Landline [Wired] phones Bfone BSNL Landline

CDMA Wireless landlines/mobiles Tarang BSNL WLL

GSM Postpaid Mobiles Cell One BSNL Mobile Postpaid

Dial –Up Internet Sancharnet BSNL Internet

Broadband Internet Dataone BSNL Broadband

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Brand Portfolio

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BSNL’s Cellular Mobile Service

Customer Base : Over 5.2 million Services : MMS, GPRS, Voice Mail, E-mail, Short

Message Service (SMS) both national and international, unified messaging service

(send and receive e-mails) Network : In over 160 countries worldwide and in 270

cellular networks Coverage : Over 1000 cities/towns across India

In all National and State Highways and train routes

Offers all India Roaming facility to both pre-paid and post-paid customers (excluding Mumbai & Delhi)

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Competition

With new players coming

in, the intensity of

competition in the industry

has increased, especially

over the last 4 years,

leading to a steep decline

in Average Revenue per

User (ARPU).

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Source

: w

ww

.trai.g

ov.in

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Competition

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Market Share of Wireless Service Provider s as on 31st

Sept. 2010

Source

: w

ww

.trai.g

ov.in

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Competition

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Source

: ww

w.tra

i.gov.in

_Annualre

port

20

09

_20

10

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SWOT Analysis

Strengths•• Strong demand, especially for wireless services•• Rapidly growing economy•• First mover advantage in rural market•• Successful software companies catering to global telecom companies•• Presence of global telecom equipment manufacturers with development centers

Weaknesses

•• Telecom Infrastructure•• Double taxation (telecom treated as service and goods)•• Government regulations•• Poor Customer Care Service•• Average promotional campaigns•• Network Problems••Old age employees

Opportunities

•• Low penetration in rural area•• Increased affordability of services and handsets•• Huge potential market (Rural India)•• Increasing value added services•• Increased outsourcing / off shoring (IT/ITES sector)•• Favorable Government initiatives•• Low broadband penetration

Threats•• Intense competition, margin pressures•• Price war among service providers•• MNP•• Technology dependence on foreign companies•• Falling ARPUs

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Communications

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Communications

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Apke ghar me BSNL landline nai hai?

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Communications

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Hindustan Mobile



Brand Exploratory

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Building Brand Equity

Brand KnowledgeBrand Awareness

Recall

Recognition

Brand Image/ Brand AssociationStrong

Relevant

Consistent

FavourableDesirable

Deliverable

UniquePoint of Parity

Point of Difference

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Qualitative Research

1. Free Association

2. Comparison Technique

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Free Association

What comes to your mind when you think of BSNL mobile service?

What is the tag line of BSNL mobile service?

What do you like the best about BSNL mobile service?

What do you dislike the most about BSNL mobile service?

What do you find unique about the BSNL mobile service?

In what ways is it similar and different from other mobile service?

POP:

POD:

If the brand were to come alive as a person, what would it be like (You can

give the name of any known personality with his or her characteristics)?

What would it talk about?

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Free Association

Would you like to change your current service provider: Yes

No

If so, which brand would you select: Airtel

Vodafone

Idea

Reliance

Uninor

Tata Docomo Do you remember the jingle of BSNL mobile service?

Yes No

Did you like the TV commercial of BSNL mobile service? Yes No

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Free Association

Rate the BSNL mobile service on the scale of 1-5 (where 1= worst and 5= Excellent) over the following parameters:

Call charges Roaming facility Schemes Customer care Coverage Quality of service Problem of call drop or connectivity

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Comparison Task

PARTICULARSRespondent

Association Reason for Association

Coffee

Technology

Auto

Retail

Fast Food

Color

Pen

Flower

Mobile

Animal

Soft drink

Company

Currency

Place

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Knowledge Structure

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Bad TVcampaign

Kya Apke gharpar BSNL nai

Hai?Preity Zinta

Likes VodafoneZooZoo

not appealingad

DeepikaPadukone

LessAdvertisements

MNP - wants tochange the

network

Fear ofConnectivityand call drop

frequently

Now & thenNetworkProblem

Available inrural areas

LargeCoverage

Doublerecharge

scheme ( Rs1000 pe Rs

2000 ka talktime)

Good SchemesAnnounced

Festival Time

Dealy inRechargeService

White colourSim Card

Mobile ServiceProvider

ExcellentService

TraditionalDress

DeepikaPadukone Ad

3 G Service

Likes it !High

Broadbandspeed

InternetProvider

ConnectingIndia - Tag line

Biggest Landline provider

Company

Long timeexistence

Indian Govt.Company

Old generationHR

LessKnowledge abt

Technology

LargeOrganization

HugeInfrastructure

Near to MyCollege

friend's home

Bima nagar,Ahmedabad

TelephoneExchange

BSNL

Dial Up NetConnection

Busy customercare line

FrustationVery SlowResponse

No properanswers fromcustomer care

Slow InternetSpeed

Huge MarketShare

Land line

Innovativescheme

unlimited Talktime

111 scheme

ModemProblem

Less costly

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SFU Associtation

Strong Favourable Unique

Indian Govt. Organisation / Landline Provider Lower Tariffs / Large Coverage Festival Dhamaka

Large organization / Long time existence Good 3G Service Biggest PSU that really works

Mobil e Service Provider / Network Problem

High Speed internet connectivity

3G service / Internet Provider

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CBBE Pyramid

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Resonance: Loyalty, Disconnect the service

Judgments: Low Quality, Unsatisfied Responsiveness

Feelings: Trust, Dislike, Fear

Performance: Lower Tariffs, Festival Dhamaka,Connectivity and call drop issue, Excellent 3G service, Recharge issue, Poor customer care service, Slow administration: Old age HR

Imagery: Large connectivity, Fastest SpeedPoor IMC campaign

Salience: PSU, Oldest Landline Connection, 3G Service, Broadband Connection

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Conclusion

Brand Health: Present situation is critical; Competitive industry; if not

improvised, private players would capture the market Knowledge schema: neither rich nor positive CBBE Pyramid: Building blocks are less loaded, Weak Pyramid

Sources of Brand Equity: Government Organisation Trust – Old organisation, Biggest landline connectivity Large coverage – Availability Lower Tariff Excellent 3G facility

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Recommendation

(Unique Selling Proposition) for BSNL: A Government company which delivers connectivity and trust

Appealing Promotional Campaign Aggressive strategy for IMC Strengthen Brand Recall through brand elements– Logo, Tag line & Jingle Transfer the secondary association elements (endorser) on the brand appropriately Reinforce the large connectivity node

Focus on the quality, customer care, and timely availability apart from price, which will matter ultimately

Establish customer care stores which defines responsiveness, courtesy and reliability.

Recruit smart and intelligent front end staff

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THANK YOU

Batch 2009 - 2011

Education

Brand audit of BSNL mobile service