Case Study on Bharti Cellular Ltd

In late-2002, Bharti Cellular Ltd. (Bharti), India's largest cellular telephone company released a television commercial (TVC), which despite using the 'oft-repeated' celebrity endorsement route was unusual in terms of its celebrity selection. Instead of using the usual movie stars/sports celebrities, it chose one of the country's most successful music composers, A.R Rahman (Rahman) to promote its brand. The campaign attracted considerable media attention because this was the first time Rahman had agreed to do a television commercial and also because, Rahman had been paid Rs 10 million¹ for the campaign, a sum usually unheard of, for celebrity endorsers in India. The campaign received brickbats as well as bouquets in the media, both for the selection of Rahman and the TVC's execution. However, Bharti claimed to have scored an ace in terms of getting Rahman to compose five exclusive symphonies downloadable as ring tones for Airtel users. The TVC was a part of the brand repositioning and restructuring efforts for Airtel, as part of which, Bharti changed the brand's tagline in early-2002 from 'Touch Tomorrow' to 'Live Every Moment.' The company also decided to undertake a comprehensive brand building program for the company and chose the slogan 'Unlimited Freedom' for the same.

Commenting on these changes, company sources said, "Airtel's brand identity and campaign will now have a new younger and international look and feel that builds on the earlier positioning. Bharti's massive media expenditure plans were no surprise, considering the fact that it was the largest cellular telecom company in the country - reaching over 600 million people in 16 (out of 29) states of India. The company posted revenues of Rs 8.48 billion and a net loss of Rs 1 billion in the financial year 2000-01. The Airtel brand (and the pre-paid card service brand, Magic) had top-of-the-mind recall amongst cellular phone users and enjoyed a leadership position in most markets. Industry observers primarily attributed it to Bharti's strong brand building and positioning strategies.

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.

Questions:

              - Discuss the brand repositioning and restructuring strategies adopted by Bharti  Cellular Ltd.?