Assessment of Telecom TVCs Indian Telecom Market

Prabhat Kumar

Key Areas to Explore

    

Competitive Marketplace Framework of Advertisement Analysis Advertisement Campaigns of key Companies Analysis of Advertisement Campaign Comparative Assessment of Advertisement campaigns. Recommendations for Individual Companies

Competition Analysis


Industry Overview (Market size, Growth rate, Forecast) Key competitors (Market share-National& regional) User base analysis

Indian Telecom Industry



The telecom industry had a market size of Rs 105,287 crore in 2006. The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a growth rate of over 26 per cent. In FY08 Indian telecom market, witnessed a 46% YoY increase in its subscriber base to 300 m. Number of telecom subscribers is expected to reach 500 million by 2010 and 650 million by 2012.

Segregation of Telecom Sector

Market Segment


Indian Telecom services market can be categorized into following segment on the basis of services provided.
1. 2. 3.

Internet Services, 11.66, 3%

Subscriber Base by segments Wireline

Services, 38.92, 12%

Wire line Services Wireless Services Internet services

Wireless Services, 286.87, 85%

2.

Figures are in millions subscribers

1.

CDMA GSM

GSM, . , 4

Wireless services is further categorized into following sub segments

Subsegment of I eless services

CDMA, 4. ,

Market Competition
Wire line Services Market Share (Subscriber Base)
M NL 10%

Wireless Services Market Share (Subscriber Base)

BSNL 15%

Relian e 2% H he 2% HFCL 0%

Spi e 2% M NL 1%

Sh am 0%

BSNL and MTNL are govt. enterprises hold about 90% of market share. Among private players Bharti, Reliance and Tata are top 3 competitors.

Big Players in wireless services market are Bharti, Reliance, Vodafone, BSNL, Tata and Idea. These six competitors together represent more than 90% of market share.

Sh am 0%

BSNL 80%

Relian e 18%

Bharti 24%

BPL 0% HFCL 0%

  

Other 11%

o o one 17%

Air el 4% Other 8%



Bharti 6%

I ea 10%

ata 9%

Market Competition
Market Share of GSM service providers June 2008 Market Share of CDMA service providers June 2008

Top player in GSM service provider are Bharti,Vodafone,BSNL,Idea These four player together makes more than 85% contribution in the market

Tata, Reliance & BSNL are the major player in CDMA service. Near about 99% of the market is being captured by these three.

Competitor Summary (Identify Competitors)

Wire line Bharti Reliance Vodafone BSNL Idea Tata 23.93732 0.951615 N 308.66077 N 0.772202 Wireless 69.38 50.79 49.20 41.96 27.19 26.33 W1(GSM) Y Y Y Y Y Y W2(CDMA) N Y N Y N Y

All the figures are in Million

Subscriber ase Spread



Urban Vs Rural (for key competitors)

Rural Urban 93.54% 76.46% 65.59% 69.90% 80.37% 72.24% Total Subscribers Millions 26.33 27.19 41.96 49.20 50.79 69.38

Tata Idea BSNL

6.46% 23.54% 34.41%

Vodafone 30.10% Reliance 19.63% Bharti 27.76%

80 70 60 50 40 30 20 10 0 Jun 07 Idea Sep 07 Bharti De 07 Vodo one March 08 Reliance Tata June 08 BSNL

Ma ket sha e change

Within top six competitor (accounting for 92% market share) change in market share is given as below
Market Share of Wireless June 2007 Market Share of Wireless June 2008
Others 7% Others 9%

Idea 9

Idea 9

Bha ti

ata 9

Tata 9%

BSNL lost market share and Bharti, Vodafone and Idea gained.

'

eliance 18%

eliance 17

dofone 17

odofone 17

'0) (

43

 

"!

 &%

BS 17

BS 15%

'

Bha ti

Market trend of rural area

  

In rural area BSNL leads the market having 34.14 % of market share. BSNL having presence in both wire line as well as wireless. BSNL dominates wire line service area by holding more than 99% market share. Companies like Bharti, Vodafone, Idea, Reliance are growing very fast might be because
Estimated population of 1.136 billion and about 72% living in rural areas makes it a potential market for future growth. As spreading of wire network is tough as well as costly so going wireless is good. Wireless subscription is easy to take People are switching from wire line to wireless because they are money conscious (Prepaid option). Advantage of mobility

Summary of services provided



Bharti Provides both wire line and wireless services. In wireless it

provides only GSM. It has 24.76% of its subscribers in rural area.

Reliance - Provides both wire line and wireless services. In wireless it

provides GSM as well as CDMA. It has 19.63% of its subscribers in rural area

odafone - Provides both wire line and wireless services. In wireless it

provides only GSM. It has 30.10% of its subscribers in rural area.

BSNL - Provides both wire line and wireless services. In wireless it provides
GSM as well as CDMA. It has 34.41% of its subscribers in rural area

Idea - Provides both wire line and wireless services. In wireless it provides
only GSM. It has 23.54% of its subscribers in rural area.

Tata - Provides both wire line and wireless services. In wireless it provides
GSM as well as CDMA. It has 6.46% of its subscribers in rural area

Framework of Advertisement Campaign analysis

1. Who is the target audience? 2. Does the add have stopping power? 3. Identify the product benefitWhat's in it for the customer? 4. Identify the reason to believeHow do we know the brand will deliver the benefit? 5. Other consideration -Like picture of product, memorable tagline 6. Overall evaluation

Key Statistics


TVCs in Telecom

TV advertising of Telecom sector saw a rise of 99 per cent during January - August 2008 compared to January - August 2007. 'Telecommunication Services' garnered a high share of Telecom sector advertising on TV during January - August 2008. TV advertising of 'Telecommunication Equipments' saw a growth of 45 per cent and that of 'Telecommunication Services' grew by 127 per cent during January - August 2008. Nokia Corporation' leads in advertising of 'Telecommunication Equipments' and ' Vodafone Essar Ltd' was number one advertisers for 'Telecommunication Services' on TV during January - August 2008. 'R Madhavan' had the maximum ad volumes of Celebrity Endorsement of Telecom sector on TV during January - August 2008.

Key Facts about TV advertisements

TVCs on National Channel Vs Regional Channels Advertisement Breakdown

National Channels cover about 71% of all TVCs. Most of the TVCs are for Telecom services

Advertisement Campaigns of Key Companies arti Group

Television advertisements have increased sharply (99%) in past one year. Vodafone leads TV advertisers with 25% of all telecom TVCs. This is followed by Bharti, Reliance and Tata. BSNL advertises the least among big players.

Subscriber Growt
70 60 50 40 30 20 10 0
68.57% 62.48%% 60.00% 59.32%%

ate
52.02%% 30.92%%

un 07

Sept 07

e 07

rch 08

78

7 65

h rti

V d

9@9 9

80

ne

Relian e

Tata

BSN

une 08

Ma ket sha e change

Within top six competitor (accounting for 92% market share) change in market share is given as below
Market Share of Wireless June 2007
Others 9%

Market Share of Wireless June 2008

Others 7%

Idea 9%

Idea 9%

Tata 9%

Tata 9%

Reliance 17%

Vodofone 17%

Reliance 18%

Vodofone 17%

BSNL lost market share and Bharti, Vodafone and Idea gained.

Bha ti %

PI
Bha ti 5%

DD

FE

BS 17%

BS 15%

Summary of TVC campaign arti Airtel

Summary of TVC campaign eliance

 

  

Reliance is third (preceded by Vodafone and Bharti) in race for TVC share with 15% of total TV commercial. Reliance is leader in CDMA market (57.44% share) but has little (3.80%) presence in GSM market. Marginally gained market share (Wireless) (from 17% June 07 to 18% June 08) in the last one year. 19.63% of its subscriber base resides in Rural Areas. Ads do not differentiate rural and urban. Ad talks about easy to use, low price, features and integration with R world, connectivity. Tag line Button Dabao(Push the button). Ads talks less about experience and emotion. Umbrella ads talks about connectivity in remote areas and emphasizes network as critical element of life. Has ads targeted at different segments like college going students, common man (lower middle class) working class.

 

Summary of TVC campaign Vodafone

   

Highest advertiser on TV 25% of total telecom TVCs. Undergone brand name change from Hutch to Vodafone. Gained market share in the last one year. Has been increasing subscriber base consistently by 60% from Jun07 to June 08. 30% of its subscriber base resides in Rural Areas. Separate and appealing ad for its customer care happy to help. Ads do not differentiate target population by rural and urban. Ads focus on emotions of relationship and positions its services as adding to those relationships. Key elements connectivity, Less focus on detailed feature. Ads seems to be targeted at educated audience who enjoy enriching experience/emotion than just feature.

     

Summary of TVC campaign SNL

 

BSNL lost its market share in last one year. (from 17% in June 07 to 15 % in June 08) Lowest advertiser on TV behind other players like Bharti, Vodafone Reliance, Idea, Tata. (11% of total telecom TVCs). Among BSNL subscribers 34.14% are in rural areas. This is highest proportion among key players. Growth rate in number of subscribers has been the lowest among key players. Earlier TVC (One India) focused on low tariff rates. Later ads started focussing themes like connecting India, specific features, a family necessity (landline). BSNL banks on its near monopoly in landlines across India and communicates as largest telecommunication network in India. Tag lines Connecting India, BSNL Best Hai Mere Liye, Apno ko Apno se Jode, BSNL has higher market share in Rural areas as compared to its market share in Urban areas. BSNL ads do not differentiate by rural and urban population (at least in National Channels)

 

Summary of TVC campaign Tata

 

Tata (Mainly Tata Indicom) has high market share in CDMA market (35.41%). It has launched its GSM services under virgin mobile brand name. Lowest advertiser on TV behind other players like Bharti, Vodafone Reliance, (14% of total telecom TVCs). Among Tata subscribers 6.46% are in rural areas. This is lowest proportion among key players. Growth rate in number of subscribers has been the lower among key players. Latest TVC campaign has Tagline Suno DIl ki Awaz. Tata Indicom is trying to position its services to be the one for successful people. Asociation sith success. Prior campaign had tagline Switch to Tata Indicom and Experience the difference. Main basis was projected to be better connectivity. Doesn't seems to be a real differentiator BSNL ads do not differentiate by rural and urban population (at least in National Channels)

Summary of TVC campaign TATA Indicom



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Advertisement Campaigns of Key Companies eliance

1 2 3 4 5 6 7 1 2 3 4 5 6 7

Advertisement Campaigns of Key Companies Vodafone 1

Advertisement Campaigns of Key Companies Vodafone

Advertisement Campaigns of Key Companies Vodafone3

Advertisement Campaigns of Key Companies Vodafone4

Advertisement Campaigns of Key Companies Company 3



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Comparative Assessment of Advertisement Campaigns

    

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Comparative Assessment of Advertisement Campaigns

    

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