Name: Manish Chintala

Roll No.: 70132

MBA I&E 2020-2022

Essentials of Marketing Management

Market Segmentation, Targeting and Positioning (STP) Analysis on Airtel

Business Description of Airtel

Name: Airtel
Company: Telecommunication and Digital Services (Globally)
Established Year: 1995
Operations: Asia and Africa (Across 18 countries)
Headquarters: New Delhi, India.

Product/Service offerings
● 2G, 3G and 4G wireless services
● Mobile Commerce
● Fixed line services
● Home Broadband
● DTH
● Airtel Bank
● National & international long-distance services to carriers

Customer Segments: B2C & B2B

Airtel ranks among top 3 in providing the mobile services globally in terms of Number of
Subscribers. In the rest of the geographies, it offers 2G, 3G, 4G wireless services and mobile
commerce. Bharti Airtel has over 283.7 million mobile services and 2.4 million homes across its
operations at the end of March 2020. As of
March,2020 the customer base of Indian
subscribers of Airtel digital TV services is
16.6 million. According to Statista, 39%
of Indian rural telecom market is captured
by Airtel, as of June 2019

Logo: In 2010 Airtel launched their new

logo.
 ❖ Market Segmentation

Airtel being the global Telecommunication and Digital company, offers its services to B2C as
well as B2B segment and uses wide range of segmenting strategies to carter its services to
different segments in the country.
The geographical presence of Airtel is in every region of the country i.e. East, West, North,
South and Central and wide array of network in urban (tier 1) cities such as Hyderabad, Delhi,
Pune etc. and Semi-urban (tier 2 cities) such as Nashik, Nagpur etc. and rural areas such as
Khed, Saswad etc. Airtel segmented the market to predict the needs and wants of the target
consumer group and to develop a marketing
strategy according to the target group.

Airtel also segments the market based on

different demographic variables such as income,
age and family size to provide suitable mobile
services i.e. prepaid and postpaid and DTH and
broadband services based on the requirement and
region. Based on income, airtel segmented into
A, B and C i.e. higher class, middle class and
lower class and has segmented the plans in three
tiers i.e. silver, gold, and platinum. Each tier has its own
perks and services, but to avail better offer and services,
customers have to pay extra amount.
DTH and Broadband are segmented into three different
categories i.e. HD, Xstream Basic and Xstream
Premium with provided services and perks.

For targeting B2B segment, airtel has divided their

customer in terms of industry, size, location and
requirements of the companies. Airtel also focuses on
the behavioural segmentation of the market, by
considering the spending habits, purchasing habits and brand interaction. It created segments for
the customers based on their purchasing power and habits. It created a package accordingly to
price, data pack, duration, usage, add-ons etc for mobile services and it provides every regional
channel in every region, packages and set-up boxes etc. for the DTH and Broadband services.
Providing various offers and schemes for loyal customers in maintaining brand loyalty.
 ❖ Targeting

Different regional areas are operated separately and different campaigns are initiated according
to the needs of customers in each region.

From 2011, Airtel has targeted the generation Z of

15-25 years, generation X & Baby Boomers by
using various strategies over time. A famous
advertisement "Har Ek buddy Jaruri hota hai"/"Jo
tera hai wo mera hai" has provided a step to attract
Gen Z and launched a "one-touch internet"
initiative targeting Gen X & baby boomers.

Airtel wants to include every demographic variable customer into the airtel ecosystem by
providing services with meeting different and affordable price points and maintain the brand
loyalty. The company is offering many perks such as wynk music, airtel TV i.e. digital content,
OTT subscriptions, e-books etc. for different tiers and categories. This helps airtel to connect
with every target group and emphasis on providing bundle services to improve retention and
loyalty.

Internet usage is rapidly increasing. Students,

working professionals etc. require huge data
packs are regular users. Airtel is targeting
these target groups by endorsing initiative
with different brands to increase the digital
presence.

Due to this pandemic, the internet usage in

the education and healthcare industry has
boomed rapidly, Airtel is trying to provide digital services and attract education and healthcare
sectors to diversify, generate revenue and increase their customer base.

❖ Positioning

Airtel always positions itself as a company focuses on

customer experience by providing quality services,
fast and better customer experience and satisfying
every target group. Providing priority-based services
based on the selected tier, expansion of network in
rural areas for better offerings and customer support. Airtel defines itself as trust, loyal and
customer centric company. #AirtelThanks was famous campaign released to gain the customer
trust and increase the loyalty towards the company.

Airtel also positions itself as a quality service

provider with excellent and fastest network in all the
regions, with updated infrastructure, innovation and
vast product/service line offering focus on every
customer target group which helps airtel to expand in
rural areas of different regions.