AIRTEL AND THE ECOSYSTEM MARKETING STRATEGY

 

Today we will be discussing about one of the biggest telecom service provider in india.

We will be going to talk about Airtel.

Airtel adds over 300 more wireless Subscriptions then jio in January 2021: TRAI

How airtel withstand jio offers and marketing strategies ?

By creating an ecosystem of products and offering better services.

UNDERSTANDING ECOSYSTEM: Three main parts of ecosystem:

1. Entry product

2. Retailers

3. Upsell

ECOSYSTEM MARKETING 

STRATEGY:     ENTRY PRODUCT + SUNK COST + HABITUATION   =   RETAINERS

    For example: 

• MAC=> ( introduces as an ENTRY PRODUCT )

• Paid video editing software => SUNK COST(once bought, you need not to buy again, money has sunk, cannot recovered)
• Once you buy to use the product, it will be seen as SUNK COST, because since you have to use the mac and for using mac you have to  spend the cost for that paid softwares. Once you spend that much money, when you buy the next laptop, you would not be glad to buy the same software again. So you purchase a Mac again. 

• HABITUATION  => (using the software is easy and many benefits…  and no option      to buy another )

• UPSELL => (addicted or/and no option to buy(sunk my cost) leads to buy the product from same company)

AIRTEL:

1. Merger and acquisition of Telenor, Tata Docomo And other small telecom service providers. Airtel gets two benefits that are a broader spectrum and threat elimination from jio as jio would acquire them before Airtel does.

2. Narrowed-out focus to high value customers and imposed minimum recharge limits.

3. Integrating their services like DTH and exclusive services like wynk music has provided an ecosystem for their customers before jio.

4. Used broadband as an alternate entry product and acquired market using B2B enterprise systems

5. Including Airtel X stream benefited them in a way called “loss leader strategy” (Read more about it in my previous blog: WALMART AND LOSS LEADER STRATEGIES (abusinesscasestudy.blogspot.com))

LESSONS: 

1. Multiple channel for  entry products

2. Loss leader strategy can be implemented.

3. Give you a chance to break into your Rival ecosystem

4. Ecosystem will protect you from measure threats from your rivals like in this case in Jio versus Airtel

5. understand the benefits of ecosystem and practice drawing pattern of ecosystem around you

6. The most important thing in the ecosystem is how to  build retainers.

7. However  jio is trying to get much bigger ecosystem like including jio mart, jio 5G, jio kisan, etc