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Airtel aims higher penetration with new market segmentation strategy

22-December-2004
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Airtel aims higher penetration with new market segmentation strategy

Segmentation is the new mantra in the wireless space. Airtel has announced its new market segmentation strategy, aimed at developing segmented products that appeal to a specific consumer segment, resulting in increased penetration of wireless phones.

“Segmentation is the next big thrust for Bharti and Airtel as far as wireless market is concerned. For instance, penetration level in the 15 –19-year age group is only three per cent. This makes it a prospective area,” said Atul Bindal, Group Chief Marketing Officer & Director – Mobility, Bharti Cellular.

As a first step into the arena, Airtel will target the younger generation with prepaid plan ‘Friendz’. This includes phone-to-phone (P2P) recharge facility, enabling the consumer to transfer talk time and validity to any Airtel prepaid subscriber. In addition comes the introduction of ‘Hot Spot’ tariffs where Airtel Friendz customers can enjoy tariff discounts at pre-designated places within the city.

Airtel’s Friendz card, priced at Rs 249, is the only 64kb SIM on prepaid segment. The list of offerings includes the FriendzChat feature, enabling a group of up to five people to talk amongst themselves at a discounted rate of 50 paise per minute. Additionally, the feature enables a customer to SMS up to 15 friends simultaneously at just Rs 3.

“To drive market expansion, it is imperative that we reach out to the consumer segments that have not yet been addressed directly. Our segmentation strategy aims towards understanding the need gaps of specific consumer segments and create special products for them,” said Bindal.

For women, Airtel has introduced a special post-paid plan with a monthly rental of Rs 150, based on feedback received from market research. And identifying the need of senior citizens, the ‘Senior’ plan offers a discount on one STD number and one local number. Youth, women and senior citizens being the first few initiatives by Airtel, the coming days will witness further growth in this category.

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