The Marketing mix of the Idea analyses the 4Ps of the Idea, which includes the Product, Price, Place, and Promotion of the Idea. Idea is a subsidiary brand of its parent company, Aditya Birla Group. It is a public company of Indian origins. The idea is to be a mobile service provider associated with the telecommunication industry. In terms of subscriber base, this operator was ranked third with 182 million subscribers in 2015. The idea has targeted upper-middle and middle-class sections of society, such as workers, students, and laborers, as its potential customers. It faces competition from following rival companies.
- Tata Indicom
- BSNL
- MTNL
- Aircel
- Reliance
- Vodafone
- Airtel
- Virgin
About Idea
- Type: Mobile network operator
- Industry: Telecommunications
- Founded: 22 August 1995
- Founders: Aditya Birla Group
- Headquarters: Mumbai, India
- Area served: India
- Current CEO: Himanshu Kapania
- Number of employees: 16,000
- Major products: Mobile services, broadband, fixed line services
Table of Contents
Idea Product Strategy
Idea, now known as Vodafone Idea Limited after its merger with Vodafone, is a telecommunications company that offers a wide range of products and services.
The new Product Mix of Idea in 2023 is as follows (Source).
- Mobile Telephony Services: This includes prepaid and postpaid mobile phone services with various plans offering different combinations of voice calls, SMS, and data usage.
- Data Services: They offer various internet-use data plans catering to 3G and 4G LTE networks.
- Value-Added Services (VAS): These services include caller tunes, music streaming, mobile TV, and other entertainment and utility services available via mobile phones.
- Enterprise Solutions: This segment caters to corporate clients, providing services like enterprise mobility, connectivity, and business communication solutions.
- Roaming Services: Both national and international roaming services are available, allowing customers to use their mobile services outside their home network area.
- Dongles and Mobile Wi-Fi: Devices for accessing internet services on the go, compatible with laptops, tablets, and smartphones.
Idea Place Strategy
Idea owns an ISP license and controls ILD and NLD operations in India. Its headquarters are in Mumbai, Maharashtra. The idea has operations in places like Delhi, Rajasthan, Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, Uttaranchal, Gujarat, Andhra Pradesh, Madhya Pradesh, Kerala, Chattisgarh, Goa, Kerala and Maharashtra. Currently, Idea provides 3G services in 13 telecom areas via its spectrum.
The latest areas to join these services are Kolkata and the Delhi-NCR region. 4G LTE services are available in 10 telecom areas and are spread over three hundred and fifty towns. For its 4G services, Idea has covered mini-metros like Bangalore in Karnataka and large metro cities like Chennai in Tamil Nadu under its service area. The idea uses a selective distribution network to distribute its products to consumers efficiently.
Here’s the place strategy of Idea.
- Extensive Geographic Coverage: Idea, now Vodafone Idea Limited, focuses on providing network coverage across a vast geographic area, including rural and urban regions in India. This widespread coverage ensures accessibility to a broad customer base, regardless of location.
- Strategic Retail Presence: The company has established numerous retail outlets and service centers nationwide. These outlets sell products and services and act as customer service points for assistance and inquiries.
- Partnerships with Local Vendors: Idea collaborates with local vendors and small businesses to distribute its products and services, thereby ensuring deeper market penetration, especially in remote and rural areas.
- Online Platforms for Accessibility: Recognizing the importance of digital presence, Idea offers online services through its website and mobile applications, allowing customers to access services, make payments, and manage their accounts conveniently.
- Customized Offerings for Regional Markets: Idea tailors its products and services to meet the specific needs of different regions, considering local preferences, language, and cultural aspects. This localized approach helps in catering to the diverse customer base in India.
Idea Pricing Strategy
Idea occupies 33% of revenue market share in India, and its estimated revenues for the fiscal year 2015-16 is rupees 354 billion. In 2010, during the auction for 3G Spectrum, the brand paid nearly 57.68 billion rupees for spectrum services in 11 circles.
Following its merger, Vodafone Idea Limited employs a dynamic pricing strategy designed to cater to a diverse customer base while maintaining competitiveness in the fast-paced telecommunications market. Here’s a breakdown of their approach:
- Competitive Pricing: Vodafone Idea aligns its pricing closely with market standards, often pricing its services competitively against significant rivals. This strategy is crucial in attracting price-sensitive customers in a market characterized by stiff competition.
- Segmented Pricing Plans: Recognizing the varied needs of different customer segments, Vodafone Idea offers a range of pricing plans. These include budget-friendly options for primary users and premium plans for high-usage customers, effectively covering the entire spectrum of the market.
- Promotional Offers and Discounts: Regular promotional campaigns and discounts are crucial to their pricing strategy. These offers, often time-bound, are aimed at attracting new customers and retaining existing ones while also driving the usage of additional services like data and roaming.
- Bundling Services: Vodafone Idea often employs a bundling strategy, combining voice, data, and text services into comprehensive packages. This provides value to the customer and encourages the adoption of more services, increasing overall revenue per user.
- Dynamic Pricing Based on Usage and Loyalty: The company also utilizes dynamic pricing models where the cost of services may vary based on usage patterns and customer loyalty. High-value customers often receive personalized plans and discounts, fostering long-term relationships and ensuring customer retention.
By continuously adapting its pricing strategy to the evolving market conditions and consumer preferences, Vodafone Idea strives to maintain a competitive edge while meeting the diverse needs of its vast customer base.
Idea Promotion Strategy
The idea realizes the impact of a good and robust marketing plan and has decided to follow an aggressive marketing strategy. During its early days, it highlighted its value-added services and tariff plans via ad campaigns because everyone appreciates a plan that will benefit him. Later, it shifted its marketing strategy and decided to rope in famous personalities to become a part of its promotional activities. Abhishek Bachchan is its brand ambassador and endorses Idea via several innovative ad campaigns.
These are shown on television channels, aired on the radio, and displayed in newspapers, billboards, and magazines. Brand Idea has a tie-up with central IPL team Mumbai Indians to create brand awareness. Famous cricket players of Mumbai Indians like Zaheer Khan and Sachin Tendulkar have also promoted this brand. The idea has been the recipient of several awards and appreciation. In 2012, it received the World Communications Award and won it for a second consecutive year. One of its most popular taglines is an idea can change your life.
Some Recent Video ads and Print ads of Idea are:
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