Airtel vs Idea

Brand Identity Planning Model

This case draws from the project report of Marlene Solerod, Vijayalakshmi,
Naggappan R, Gaurav Chauhan, Gaurav Kumar, Gokulram K, Mary Infanta X all
students of the PGP 2014-16 batch. The project was done under the guidance of
Prof Y L R Moorthi. The project report and other published sources contributed to the
present case written by Prof Y L R Moorthi specifically for purposes of class
discussion.

1.0

Strategic brand analysis

1.1

Customer analysis

We look at different parameters and rate Airtel and Idea on a scale of 1 to 10. This
will help us know the impact of these parameters on Airtel and Idea
Parameter Airtel Idea
Reason
3G
8
6
3G Market share of Airtel in India is 3% in 2011 and is
expected to grow to 18% in 2015. 3G Market share of Idea in
India is 2% in 2011 and is expected to grow to 11% in 2015
4G
9
6
Airtel is the first Indian telecom to launch 4G services in 2012
and offer 4G services on mobile phones in 2014. Airtel has
announced the launch of 4G services in 296 towns across
India whereas Idea is expected to launch 4G in 10 circles by
June 2016.
Geography 8
6
Airtels distribution channel is spread across 1.5 Mn outlets in
India covering approximately 86.7% of the countrys
population which is more than that of Idea
Customer
9
7
Airtel has the least customer churn among telecom
churn
companies.
Call drop
6
7
Maximum call drops against Airtel (30 Mn) till July 2015. Call
complaints
drops against Idea found to be 10 Mn till July 2015
1.2

Self/Competitor Analysis

1.2.1 Airtel
Strengths/Weakness
Strengths and opportunities
With a rich experience of 19 years in telecom industry, it has become worlds
4th largest mobile operator with operations in almost 20 countries.
It is one of the pioneer brands in the industry having a high brand recall and a
whopping subscriber base of 200+ million customers.
The Company has highly valued stakeholders, like Sony Ericsson, Nokia,
Singtel and Apple. Such strategic alliances boost the brand equity and the
bottom line of the company.
The infrastructure of Airtel has extended across the country resulting in
nationwide penetration.
It holds the number 1 spot due to its excellent services in several countries.
Vodafone, a leading multinational player, is Airtels nearest competitor, in the
Indian market. But it is seen as an external entrant. Airtel on the other hand is
seen as a leading player hailing from India.

Weaknesses and threats

Airtel was the first company to lease infrastructure from telecom companies
like Ericsson. Instead of buying telecom switches/exchanges Airtel leased
them. Airtel also outsourced their entire IT infrastructure and reduced their
capital expenditure considerably. It was hailed as a new business model in
industry circles. Outsourcing operations however could be a double edged
sword. It has helped Airtel lower its costs. But depending for infrastructure on
other companies comes at a risk. It may negatively affect operations.

With margins being low in the industry and acquisitions turning out to be bad
investments, Airtel group is under debt (Rs 66,367.20 crores as of March
2015). Some of this hefty expense is on account of acquiring Government
auctioned spectrum for telecom services. Spectrum auctions can run into
legal disputes and cause disruption in business. For instance, the Supreme
Court of India canceled 122 licenses awarded in the 2008 in 2G spectrum
auction causing great distress to service providers.

Vodafone group, the competitor is relatively more profitable, less exposed to

debt and has better access to technology because it spends 140 million
British pounds on research. Bharti spends negligible amounts, if any. Besides,
the entry of new competitor Reliance Jio is likely to take the prices for telecom

services further down from their present depressed levels. Bharti might find it
therefore difficult to service their debt.
Airtel acquired Zains telecom operations business in 15 African countries at a
price of 9 billion dollars. 4 years after the acquisition the business is still
struggling to turn around.

The following are the recommendations put out by brokerages on Bharti in the six
months upto March 2016 (Source: moneycontrol.com)
Buy

Hold

Sell

1.2.2 Idea
Strengths/Weaknesses
Strengths and opportunities
IDEA has a good reputation due to its association with the Aditya Birla Group.
Its customer base makes it the third biggest telecom operator in India.
Idea inherits a strong culture from the parent AVB group.

IDEA won multiple HR awards nationally and internationally.

Ideas product communication is creative and smart.
It has a strong footprint in rural and semi-urban areas. Its total customer is
160 million customers.
The parent AVB group is very good at spotting takeovers. It is optimally
aggressive in its acquisitions. Over the years it acquired several telecom
companies like Spice communications, Escorts telecom, Escotel mobile, RPG
cellular.

Weaknesses and threats

Less popular brand compared to Airtel and Vodafone because of smaller
presence in metropolitan and urban areas.
Lack of value added services like broadband, Direct to Home etc. though
these will be attended to soon
Weaker presence in enterprise market
The following are the recommendations put out by brokerages on Idea in the last 6
months upto March 2016 (Source: moneycontrol.com)
Buy

Hold

Reduce

A summary of financial results of the two companies is given in Appendix 4.

2.0

Brand Identity

2.1

Brand as a product

2.1.1

Product Scope:
Airtel
When the product class is mentioned
Airtel is the first (Appendix 1) in customer
recall.
The product scope extends to other
services
like
digital
television,
Broadband. But most strongly associated
with only mobile services.

Idea
When the product class is mentioned
Ideal is probably the third (Appendix 1) in
customer recall
The brand name is basically mobile
services and only now moving into other
services.

2.1.2 Product Attributes:

The benefits given by the two service providers are listed in the ads below
Airtel

Brand promise

Ad

4G Hot spot

https://www.youtube.com/watch?v=xf2mL9M1Wa8

50% cashback if you surf

between 12 am and 6 am

https://www.youtube.com/watch?v=hSWvbk23zoo

71,21,302 minutes of music,

movies and games free
access

Free Music, Movies and Games, Published on 1

Feb 2016
https://www.youtube.com/watch?v=oB4dOn_mGWA

AIRTEL 4G CHALLENGE

https://www.youtube.com/watch?v=tpHZ3sXY6B8

Boss TVC

https://www.youtube.com/watch?v=T9BlI9nhqTE

Ice cream truck

https://www.youtube.com/watch?v=CBwBuqjDvFY

Night time free calls

https://www.youtube.com/watch?v=5u2Gm2Qr4Yo

Night Calling

https://www.youtube.com/watch?v=09HUayFVJwU

One Family. One Internet

Pack

https://www.youtube.com/watch?v=vpiNjp3eH8c

Idea
Brand promise
IIN-Drone Wala

Ad
https://www.youtube.com/watch?v=UPTC945gsDo

Idea Easy Share

https://www.youtube.com/watch?v=XFMZCVEfwjo

Idea NMNP Same Number,

https://www.youtube.com/watch?v=u0shkVQBb2A

Idea NMNP Single Bill,

https://www.youtube.com/watch?v=HDM7KR2zEmI

Idea, No Ullu Banoing

https://www.youtube.com/watch?v=6hsnja1Njcs

Nobody does his job in India;

do your jobyourself

https://www.youtube.com/watch?v=sqJKoqVAM80
https://www.youtube.com/watch?v=qi8H59UYJtQ

Besides, IDEA uses a differentiating strategy to challenge incumbent players like

Airtel, Vodafone etc. A few elements of the differentiating strategy are:

Affordable lower prices

Famous personality for brand endorsement

Innovative offers like WOMENS CARD

2.1.3 Quality/ Value:

Appendixes 2 and 3 give the customers view on quality and value respectively.

2.1.4 Use Occasion:

Airtel
Though it is a functional product used in
all occasions it specifically associates
itself with being connected with friends.
With campaigns like Har-Ek-FriendZaroori-Hota-Hai [1] and Jo mera hai
woh tera hai [2]

Idea
Idea takes a problem solution route and
finds innovative ways out of difficulties
i) Why do I get overcharged, no idea
Get Idea
ii) Teaching remotely in village through a
cell phone
iii) How to connect when you do not
know the language (Malayali in Haryana
get language prompts on mobile
through a friend)

2.1.5 Association with users:

This is related to the perceived user of the brand
Airtel
Idea
Airtels target users are college goers Idea is perceived as a brand for the aam
and youngsters though it has users in all aadmi, the middle class in tier 2 cities as
age groups. It is more urban.
evidenced by their ad campaigns such as
No Ullu Banoing. The message is get
information from internet, do not allow
anybody to make a fool of you.
Or
Use internet to empower yourself,
become, say a rated restaurant
chef/chief
https://www.youtube.com/watch?v=XAch4IfjCw
IIN Chef ad
Published on 9 Apr 2015

2.1.6 Link to country /region:

Airtel is available in Africa too. Idea is confined to India.

2.2
Brand as an organization
Organizational attributes are defined as the distinctive features of an organization
that uniquely differentiate it from its competitors. Organizational attributes are
created by the people, culture, values and programs of a company. Analysis of these
attributes for Airtel and Idea is given below
2.2.1
Airtel
Vision, Mission and values:
The vision of Airtel is to become the most loved brand in the country. It aims at
enriching the lives of millions and winning lifetime customers by providing
exceptional service. Airtel works towards its vision driven by its three primary valuesAlive, Inclusive and respectful [3].
Alive: Airtel is alive to the needs of the customers. It is proactive in servicing them.
It works with passion, energy and can-do attitude to help its customers realize their
dreams. Innovation and entrepreneurial spirit are important driving forces of Airtel.
In 2003, Airtel signed Rahman as its brand ambassador and launched three
advertisement jingles which were a raging hit. The advertisement theme was youth,
energy and bonding. Besides, Airtel also roped in energetic and charismatic brand
ambassadors like Shah Rukh khan and Kareena Kapoor to spearhead an
advertisement campaign. The number of Airtel subscribers went to 100,000 after the
launch [4].
Airtel offered innovative, new service offerings like Airtel Magic, Airtel caller tunes,
Easy charge, Blackberry services, One-rupee mobile video services and Airtel
money. Airtel was the first company to offer technologically superior services like 3G
and 4G.
Inclusive: Airtel promotes diversity, provides service to all types of customers. It
embraces change and is willing to anticipate, adapt and deliver changes that provide
enriching solution to its customers.
Airtel has also decided to enter the rural market given increasing competition in
urban India. This can be seen in their initiative of providing One Touch Internet that
started last year to help first time internet users learn through trial packs and
tutorials.

Airtel entered into strategic alliance with Nokia to bundle a handset with the
connection. It also forged alliances with microfinance institutions to enable the rural
customers to adopt its service.
Respectful: Airtel aims to act with humility, candour and honesty to achieve mutual
respect of its customers
Many ad campaigns of Airtel like Dil jo chaahe, paas le aaya [6] in 2010, Har friend
zaroori hai in 2011, Jo mera hai who tera hai in 2012, Unlimited night calls for
young couples in 2014 were used to provide an emotional colour to their campaign.
This provided an abiding connect for Airtel among the youth.
2.2.2
Idea
Mission and values
Ideas mission is to delight customers by meeting their individual communication
needs anytime, anywhere [5]. The primary values of Idea Cellular are derived from
the values of the Aditya Birla Group. The major values are Integrity, commitment,
passion, seamlessness and spirit. The five values are explained as follows

Integrity Honesty in every action

Commitment Deliver on promise
Passion Energized action
Seamlessness Without boundaries in letter and spirit
Speed One step ahead always

Idea portrayed its values of passion and spirit in various advertisement campaigns.
The theme of Idea as an enabler of the common man is reflected in advertisements
like No ullu banaoing, An idea can change your life (preventing caste war) [7].
Idea is committed to social issues like education and saving trees, that is promoted
in it advertisements, for e.g., education for all [8] and saving paper [9].
Summary
Brand as organization is summarized as follows
Attribute
Vision,
Alive
Mission
and
values

Airtel

Global/
Airtel is a MNC. It is present in
Local
20 countries across Asia and
presence Africa.

Rating
Idea
Rating
9
Idea has not been
6
able to promote all of
its values through its
operations so far.
9

Idea
is
currently
present
in
India
alone.

From the above table it can be inferred that as an organization Airtel is a stronger
brand than Idea.

2.3

Brand as a Person

Airtel
Airtel brand when converted to a person, can be seen as a fun loving person,
aged 18-26 years, from tier I and tier II cities. The brand is about teenagers,
relationships in family, friends, love and breaking the barriers of communication.
Therefore, brand endorsers like Sachin Tendulkar, Shahrukh Khan, A.R. Rahman
and Kareena Kapoor are used as aspirational role models. Also, ads like the
fastest 4G network communicate that Airtel users are at the frontier of
technology. The symbolization is clearly that of a person in 20s who spans the
space between tech savvy and evangelism. Marketing campaigns of Airtel Har
ek friend zaroori hota hai, Express yourself, deewarein gir jaati hain, faasle mit
jaate hain, jahan do baatein ho jati hain, Jo tera hai, wo mera hai, Together
good things happen have been extremely successful in connecting with
customers. Airtel also unveiled a new youthful and dynamic global identity in
November 2010 with a new logo and an Airtel signature tune composed by AR
Rahman. The ad Endless Goodbye was nominated as the best ad at Cannes
Festival, 2010. According to Mohit Beotra, Head Brand & Media in 2011, the
brief given to the ad agency for the TVC Har Ek Friend Zaroori Hota Hai was to
find an insight in the lives of young people to connect with them strongly.
Idea
IDEA would be a 30-35 year old semi-urban male, a rural well-wisher with
innovative ideas to solve problems related to education, poverty etc. Abhishek
Bachan is the brand ambassador and the ads like What an Idea sirji, No Ullu
Banaoing are mostly focused on the semi-urban and rural audience. Similarly,
advertisement campaigns like IIN, focus on helping people use connectivity to
reach their goals and rediscover self-respect.

2.4
Brand as a symbol
Apart from functional benefits, a brand can use strong symbolism to connect with its
customers. Its component dimensions are visual Imagery, metaphor and brand
heritage.
2.4.1 Visual imagery
Airtels i in the red logo emphasizes innovation. The capital A was deliberately
chosen to underline leadership position of the firm. This was recently changed to
small a to connect to the target young customer segment. Airtel signature tune
composed by A R Rahman is the first thing that comes to mind when the brand is
mentioned.
Ideas Distinctive yellow colour with the inverted i differentiates it from the red of
Airtel and Vodafone. The various marketing campaigns of IDEA An Idea can change

your life, Honey Bunny, No Ullu Banaoing, What an Idea Sirji! have also
successfully managed to create an impact.
Airtel
The new Airtel logo underlines a in the
brand name Airtel [10]. The a was
chosen to express friendly connect
between customers and Airtel [11].
Red color of Airtel is used to express its
energy and passion

Idea
The exclamation mark ( i ) expresses the
problem solving attitude of Idea. Idea
positions itself as a Thinker who tries to
solve social problems
Yellow color keeps it distinctive from its
competitors Airtel and Vodafone

Idea is more distinctive and expressive when compared to Airtel. Airtels symbol has
been criticized for being similar to Vodafone in its communication and color choice
[12].
2.4.2 Metaphors
A brand metaphor can be a shortcut to convey brands value.
Airtel
The a in Airtel logo denotes the starting
letter of Airtel.

Idea
The exclamation mark in Idea
showcases the nature of the brand. Use
mobile, save paper [9], an Idea can
change your life [7] (preventing caste
clash) are good examples that showcase
Idea as a thinker who tackles tricky
issues.

Comment on the content of the brand identity planning model? How can it be
improved? (Check for internal consistency of data. There is no need to look for
data outside the case).
Compare the value propositions of the two brands?

Appendix 1
Survey of 30 respondents

Brands 1st Recall 2nd Recall 3rd Recall

Airtel
60%
37%
0%
Vodafone
23%
40%
17%
Docomo
0%
0%
13%
Idea
0%
0%
20%
Reliance
0%
0%
17%
BSNL
17%
10%
20%
Aircel
0%
13%
13%

Appendix 2 - Factor wise Telecom Ranking

i)
ii)

Appendix 3

Airtel was rated much better than Idea on Moutshut.com

Idea gets poor ratings in Mouthshut.com on billing accuracy

Source: www.komparify.com

Appendix 4
Consolidated financials 2014-15
Item

Bharti

Idea

Total revenue
Net profit
Return on Equity
Return on capital
employed
Return on Assets
Debt/equity
Interest coverage ratio
Enterprise value
EV/EBITA

94,613.90 crores
5.76%
8.56%
4.01%

32,040.56 crore
10.11%
13.86%
7.41%

2.71
1.07
2.58
226,607.29 crore
6.58

5.28
0.73
5.72
81,367.14 crore
7.21

EPS

13.00

9.00

References

1) YouTube, [Online]. Available: https://www.youtube.com/watch?v=4WgP8sTCO2Q.

[Accessed 5 March 2012].
2) YouTube, [Online]. Available: https://www.youtube.com/watch?v=JMYoWHwRegQ.
[Accessed 4 August 2012].
3) Airtel Vision, [Online]. Available: http://www.airtel.in/vision-mission/.
4) T. K. Panda, Building brands in the Indian market, p. 168.
5) Idea Values, [Online]. Available:www.ideacellular.com/aboutus/values.
6) YouTube, [Online]. Available: https://www.youtube.com/watch?v=qQ3THJLlMFg.
[Accessed 2011 February 2011].
7) An Idea can change your Life, YouTube, [Online]. Available:
https://www.youtube.com/watch?v=FOJ3FYkHehk. [Accessed 11 October 2007].
8) Education For All, [Online]. Available:
https://www.youtube.com/watch?v=0bh3HP51rJs. [Accessed 25 June 2008].
9) Save Tree, You Tube, [Online]. Available:
https://www.youtube.com/watch?v=bBuAUKJXZGw. [Accessed 6 January 2010].
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http://www.pixelonomics.com/airtel-new-logo-2010/. [Accessed 23 November 2010].
11) Airtels New Logo & Signature tuneBetter or Worse? [Online]. Available:
http://trak.in/tags/business/2010/11/18/airtel-new-logo-tune-rebranding/. [Accessed
18 November 2010].
12) Airtel's new logo comes in for severe criticism, Economic Times, [Online]. Available:
http://economictimes.indiatimes.com/magazines/business/airtels-new-logo-comes-infor-severe-criticism/articleshow/7003041.cms. [Accessed 28 November 2010].