Airtel iCreate 2019

Case Challenge Name –The Road Ahead (Sales & Marketing)

Team Name: The Titans

1)What do we infer from the case? What are the key findings in the industry
dynamics?
The inferences that we can draw from this case is that telecom industry took a upside down turn with major focus
shifting from revenue generation to ease in providing internet access to consumers, who were benefited the most
after Beta Tel entered the industry in August’16 by provision of ultra cheap data, free voice calls, faster mobile data,
and proliferation of 4G smartphones. The other telecom companies faced serious challenges due to such evolution
of the telecom industry and adopted various strategies to cope with the new circumstances.

KEY FINDINGS IN THE INDUSTRY DYNAMICS

• There was a drop in the revenue of the industry. As per the data provided in the case, the overall revenue, before
Beta Tel entered the industry was Rs.467,900 and the major share belonging to Alpha Tel whereas in the current
scenario the overall revenue decreased by 23.23% with a major share belonging to Beta Tel.
• The number of players in the industry decreased from 10 to 3-4, as the companies which were unable to cope
with changes were closed down.
• The low-end market of the industry were focused more after the entry of Beta-Tel.
• Shift in the data usage with increase in consumers demand for more data at lower price and higher speed.
• Beta’s Investment in in-house content such as TV, Music, Gaming, News, payment gateways etc. in order to reach
new audiences and increase customer base.
2) What’s the difference in approach from response perspective – AlphaTel vs GammaTel/
DeltaTel? What are the pros and cons of both the approaches?

Pros of Alpha Tel:

• There is a massive surge in data consumption, with the main driver being videos on over the top (OTT) players here
alpha can benefit from its various entertainment/ TV apps and customer engagement activities
• Different product portfolios for high end and local customers would help to cater major customer base
• Investments on spectrum would lead better and high speed network this would give competitive benefit .
Cons of Alpha Tel:
• Price pressure leads to providing services at a lower level ,which might not be in the companies capacity.
• It would be difficult to change customers perception of a high priced brand and development of suitable approaches
and plans in case serious of price and tariff war as all this would also require additional capital.
Pros of Gamma Tel/Delta Tel :
• After merger, both the entities would cater a large part of the market share and customer base leaving others behind
• This will simplify its tariff plans, concentrate on 4G and network expansion amongst other steps as growth drivers
• Cost efficiency will be the key for success of both the entities
Cons of Gamma Tel/Delta Tel :
• The Merger might turn out to be a monopoly for the betterment of companies. Which means that there could not be
any significant changes from the customer’s perception which could help increase the market share or customer base
• There would be a clash of cultures if the companies have different values, principles and hierarchy .it also increases the
possibility of layoff and job losses of employees which would ultimately have an impact on the economy
• when two firms merge there’s a possibility that being larger will actually create dis-economies of scale, where per unit
production costs increase because of increased coordination and implementation costs
3)What is the financial/business model for Industry and BetaTel?

When projections are initiated in a financial model, revenue is the most crucial component. The revenue projections
in telecom industry and BetaTel is ARPU (Average Revenue Per Usage) which is used to analyze subscription based
uses. It is used by businesses to measure the factors that are contributing to the organization’s overall revenue.
ARPU helps companies analyze their growth patterns and compare their success to competitors. Average revenue
per user measures the amount of money that a company can expect to generate from an individual customer. It’s
calculated by dividing the total revenue of the business by its total number of users.

4) What should be AlphaTel’s approach to further consolidate its market share?

The AlphaTel in order to consolidate its market share should adopt the strategy of segmentation in order to target a
set of consumers such as the ones in rural areas taking the advantage of network strength. Further it can segment
its market in the form of serious and non serious users and letting go of the ones who are not recharging their
AlphaTel number in order to focus on potential consumers who are actual users of AlphaTel. In order to retain loyal
customers in addition to its reward program, it needs to offer better customer services through its stores and
customer care number. This will also enhance customer base by adding new customers.
 5) What should be AlphaTel’s approach to grab share and stay a preferred network/brand in
consumer mind?

• Collecting large amount of online and offline data from customer interactions and analyzing it rapidly will
provide the company with essential insights .These insights can be used to highly individualized
interactions tailored for customers
• Invest in tools to gather real-time insights to build products that customers will embrace ,spend more on
customer experience and customer service to build relationships
• Enable multiple-channel campaigns by doubling the rate of individualized offers by making them
simultaneously available through multiple channels ,ensuring they reach consumers wherever they happen
to be .
• Provide rapid response to changes in customers ‘ circumstances and preferences through the availability of
real-time customer data .
• Boost productivity and cost efficiency , leading to reduced cost per contract and reduce cost per sale
• Providing the type of content that a target audience actually wants to read is a great way to stoke customer
engagement through landing pages on website and digital marketing strategies
• Promotion and positioning of various platforms and services like Entertainment apps/payment apps etc is
important so as to make customers aware of these services and to increase customer engagement.