Airtel - Positioning (And Repositioning)

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REPOSITIONING AIRTEL

The above realization led to the launch of the ‘Leadership Series'campaign, which featured successful men and women with their deluxe cars, carrying laptops and using cell phones. A company source said that the campaign was aimed at positioning Airtel as an aspirational brand, which was meant for leaders and celebrities. The surveys conducted after the launch revealed that people began associating three core benefits with the Airtel brand – Leadership, Performance and Dynamism. Other supportive values associated with the brand-included courtesy, politeness and efficiency.

The campaign was reportedly successful and resulted in a marginal improvement in Airtel's performance. By 1999, Bharti had become the leading cellular player in Delhi (its major market) with a subscriber base of over 0.38 million. However, the growth was still much below the company's expectations.

Meanwhile, as the competition in the sector intensified, the government also decided to reduce tariff rates. As a result, the players made all efforts to extend their horizons to reach customers across all sections. Essar, the nearest competitor of Airtel, began offering tariff plans, schemes and services that were identical to that of Airtel. Much to Airtel's chagrin, Essar's subscriber base began nearing that of Airtel.

In early-2000, in its attempt to understand the customer's psyche, Airtel conducted many brand tracking exercises. These exercises revealed that though the Leadership campaign had been effective, it failed to attract more customers, as it had failed to add an emotional dimension to the brand. Analysts perceived the brand to be distant, efficient and cold. In words of Preet Bedi, Director, Lowe India, “The brand had become something like Lufthansa — cold and efficient. What they needed was to become Singapore Airlines, efficient but also human.”

The surveys also revealed that the concept of leadership was itself undergoing a transformation. The public increasingly perceived leaders as people who worked with a team to achieve common objectives rather than those who dictated terms to their subordinates. The surveys indicated that 50% of the new subscribers bought a cellular phone service brand on the basis of suggestions made by their friends, colleagues or family members. On account of this information, Bharti realized that its existing customer base could be used to promote the brand and expand its market (as these customers could endorse the brand) and thus focused on building a close relationship with them.

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