Marketing Mix of MTNL and 7Ps (Updated 2024)

The Marketing mix of MTNL analyses the 7Ps of MTNL, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of MTNL. Mahanagar Telephone Nigam Limited is commonly referred to as MTNL. It is a provider of mobile services and is associated with the telecommunication industry. MTNL is a public-listed company wholly owned by the Government of India. MTNL has incorporated the latest modern technology in the telecom sector and provides the best possible services to its customers. It faces competition from

• BSNL
• Virgin
• Airtel
• Aircel
• Idea
• Vodafone
• Reliance

About MTNL

Type: Telecommunications Company
Industry: Telecommunications
Founded: 1 April 1986
Founder: Government of India
Headquarters: New Delhi, India
Area served: India
Key people: P. K. Purwar (Chairman) and C. P. Gurnani (CEO)
Number of employees: 25,000

MTNL Product Strategy

MTNL had a monopoly over its services until 1992, when the government opened the telecom sector to other service providers. It strives to modernize and improve its product quality to offer qualitative and impeccable services. It launched an automated billing method to save time and serve better customer satisfaction. It introduced a digital network operated via circuit switches and facilitated data and voice transmission with a speed of more than 64 kbps.

The product mix of MTNL in 2024 is as follows (Source).

1. Landline Telephone Services: MTNL provides traditional fixed-line telephone services in its operational areas, offering features like caller ID, call waiting, and call forwarding.
2. Broadband Internet Services: They offer broadband internet services under the ‘MTNL Triband.’ These services include plans with different speeds and data limits to cater to home and business customers.
3. Mobile Telephony: MTNL offers GSM and CDMA-based mobile telephony services, including voice and data services. Their mobile services are known under the brand names ‘Dolphin’ (postpaid) and ‘Trump’ (prepaid).
4. Enterprise Services: This includes leased line services, VPN, and other enterprise-level solutions catering to large businesses and corporate clients.
5. IPTV and VoIP Services: MTNL also provides Internet Protocol Television (IPTV) and Voice over Internet Protocol (VoIP) services in certain areas.
6. Digital Television and FTTH Services: In some regions, MTNL offers digital television services and fiber-to-the-home (FTTH) technology for high-speed internet access.

MTNL Pricing Strategy

The telecom sector in India has felt a significant surge because of the phone rates. Intense competition has triggered an intense price war amongst the leading operators and target market. Pricing in the telecom sector depends on several factors, like operational costs, prices of rival brands, the brand value and perception in the consumer market, and the financial stability that allows it to take risks.

MTNL has adopted several steps to revive its company, like overhauling its customer care, marketing strategies, and operations, rightsizing revenue-sharing agreements, and looking for new revenue streams. MTNL, like all other telecom industry companies, is bound by the basic rules set up by TRAI. It has adopted a value-based pricing policy that is reasonable and affordable. Moreover, it can face the challenges of competitor’s prices by gaining an edge over them through a pocket-friendly price range.

MTNL’s pricing strategy reflects customer value through a blend of competitive positioning and customer-driven approaches designed to cater to a diverse customer base in the highly competitive telecom sector:

1. Competitive Pricing: MTNL strategically prices its services to be competitive with other major telecom players in the market. This approach helps retain a price-sensitive customer base and attract new users looking for cost-effective solutions.
2. Segmented Pricing Plans: The company offers a variety of pricing plans tailored to different customer segments. For instance, there are budget-friendly plans for average consumers, while more comprehensive, higher-priced plans cater to heavy users and businesses. This segmentation ensures that MTNL addresses user groups’ needs and usage patterns.
3. Bundled Services: MTNL often bundles services like landline, broadband, and mobile telephony at a discounted rate compared to purchasing these services separately. Such bundles provide value to customers seeking a one-stop solution for all their telecommunication needs and help in enhancing customer loyalty.
4. Promotional Offers and Discounts: Regular promotional offers and discounts are a part of MTNL’s pricing strategy, especially during festive seasons or special events. These offers aim to attract new customers and retain existing ones by providing short-term price advantages.
5. Adaptive Pricing Model: In response to market trends and competitor strategies, MTNL adapts its pricing models. This includes revising tariffs, offering special data packs or calling benefits, and other adjustments to stay relevant and competitive in the rapidly evolving telecom market.

MTNL Place Strategy

MTNL is a state-owned company started in 1986 on 1 April with a presence in India and overseas markets. It came into being to oversee the services offered in New Delhi and Mumbai metro cities. Its headquarters is in New Delhi, India. MTNL also offers international telecom services, and its presence has spread to Mauritius, located in Africa.

It is the second telecom operator and offers international long-distance and mobile services in Mauritius, with 44,312 connections from a switching capacity of nearly 50,000. MTNL has a competitive advantage through a market strategy and a strong distribution channel. It has almost one hundred and twenty-four telephone exchanges and has set up nearly two million connections.

Its offices are located throughout Mumbai, and it has set up 41,491 call booths for public usage in this metro city. MTNL shares its GSM services with companies like Finland, Canada, Belgium, Bangladesh, and Austria. MTNL has created a website that offers customers and interested parties vital information about its facilities, technologies, and new offers. It is updated and upgraded at regular intervals.

The place strategy of MTNL is as follows:

1. Geographic Focus: MTNL primarily operates in the metropolitan areas of Mumbai and New Delhi, focusing on urban and densely populated regions where the demand for telecommunication services is high.
2. Physical Customer Service Centers: They maintain numerous customer service centers in their operational areas, providing in-person support, bill payment, and other customer-related services.
3. Online Presence: MTNL offers online services for customer convenience, including online bill payments, plan subscriptions, and customer support, catering to the growing digital user base.
4. Collaboration with Government Initiatives: As a state-owned enterprise, MTNL often collaborates with government projects and initiatives, especially connecting public sector undertakings and government offices.
5. Network Infrastructure Development: Continuous investment in network infrastructure in their designated regions to enhance service quality, including upgrading to newer technologies like fiber optics and 5G readiness.

MTNL Promotion Strategy

MTNL has an exciting and severe marketing mix with descriptive brand loyalty and a slogan: Transparency makes us different. It has been associated with several sports and events to create positive brand awareness. In 2010, it became the official telecom partner of Common Wealth Games.

MTNL’s promotion and marketing strategy also includes a mix of traditional and digital marketing efforts, focusing on brand visibility and customer engagement. The company’s marketing strategy utilizes advertising through various channels like newspapers, television, and outdoor hoardings, alongside a robust digital presence with social media campaigns and online advertisements. Additionally, MTNL engages in promotional partnerships and sponsorships, especially with government-related events and initiatives, to leverage its public sector identity and reach a wider audience.

MTNL is associated with MTNL Perfect Health Mela to focus on healthcare programs target consumers. It has launched ad campaigns on television, newspapers, magazines, and social media platforms like Twitter and Facebook. MTNL has roped in beauty queen and actor Sayali Bhagat as its brand ambassador to endorse its product’s strategic marketing move.

Some Recent Video ads and Print ads of MTNL are:

Mtnl: Latest News, Videos and Photos of Mtnl | Times of India (indiatimes.com)

MTNL People Strategy

The “People” element of the Service Marketing Mix is critical, especially for a service-oriented company like MTNL (Mahanagar Telephone Nigam Limited), which operates in the telecommunications sector. This aspect focuses on the employees, customer service, and overall customer experience. Here are some points about the “People” aspect of MTNL’s Service Marketing Mix:

1. Skilled Workforce: MTNL invests in recruiting, training, and retaining a skilled workforce capable of managing sophisticated telecommunications technology and providing high-quality service to customers.
2. Customer Service: The company emphasizes the importance of excellent customer service and has established multiple channels for customer support, including call centers, online support, and service centers, to address customer queries and issues promptly.
3. Training and Development: Continuous training and development programs are conducted for employees to keep them updated with the latest technological advancements and customer service practices in the telecom sector.
4. Employee Satisfaction: MTNL focuses on employee satisfaction and motivation, recognizing that satisfied employees are more likely to provide better customer service. This includes fair compensation, career development opportunities, and a positive working environment.
5. Customer-Centric Approach: The company adopts a customer-centric approach, with employees trained to understand and meet customer needs effectively, enhancing customer satisfaction and loyalty.
6. Professionalism and Ethical Conduct: MTNL emphasizes the importance of professionalism and ethical conduct among its employees, ensuring that all customer interactions are handled with integrity and respect.
7. Community Engagement: The people of MTNL are also involved in community engagement activities, reflecting the company’s commitment to social responsibility and building a positive brand image.
8. Leadership and Management: Effective leadership and management are crucial in guiding MTNL’s workforce toward achieving the company’s service quality and customer satisfaction goals.
9. Diverse Workforce: MTNL values diversity within its workforce, aiming to create an inclusive environment that reflects its varied customer base.
10. Feedback and Improvement: The company encourages feedback from customers and employees alike, using this input to improve service delivery and employee performance continually.

MTNL Process Strategy

The “Process” element of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For MTNL (Mahanagar Telephone Nigam Limited), a leading telecommunications service provider in India, the process aspect is crucial for delivering its services efficiently and effectively. Here are key points regarding the “Process” aspect of MTNL’s Service Marketing Mix:

1. Service Provisioning: The process involves streamlined service procedures, including new connections, upgrades, and modifications. This includes online applications, verification, and activation processes to ensure a smooth customer journey.
2. Billing and Payment: MTNL has automated billing systems and offers multiple payment channels, including online payments, auto-debit facilities, and physical payment counters, to ensure convenience and efficiency for customers.
3. Customer Support and Service: The company has established a comprehensive customer support system with toll-free numbers, online chat support, and customer service centers. These channels are designed to efficiently handle inquiries, complaints, and service requests.
4. Service Installation and Maintenance: MTNL ensures a systematic service installation and maintenance approach, with trained technicians responsible for setting up services and promptly addressing any technical issues or outages to minimize downtime.
5. Feedback and Continuous Improvement: The process includes mechanisms for collecting customer feedback through surveys, social media, and direct feedback channels. This feedback is used to improve service delivery and customer satisfaction continually.
6. Technology Integration: MTNL integrates advanced technology into its processes for service delivery, such as the use of AI for customer service chatbots, network management systems for monitoring service quality, and CRM systems for managing customer relationships.
7. Compliance and Regulatory Adherence: The company adheres to regulatory requirements and industry standards in its operations, ensuring legal compliance and high service standards.
8. Dispute Resolution: MTNL has a straightforward process for handling customer disputes and grievances, including escalation procedures to ensure customer issues are resolved satisfactorily.
9. Service Termination: The service termination or cancellation process is designed to be hassle-free, with clear instructions and support for customers who wish to discontinue their service.
10. Quality Assurance and Monitoring: The company employs quality assurance practices and monitoring systems to continuously assess and improve the quality of service delivery, aiming to exceed customer expectations.

MTNL Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered and any tangible elements that facilitate or communicate the service quality. For a telecommunications company like MTNL (Mahanagar Telephone Nigam Limited), physical evidence plays a crucial role in shaping customer perceptions and experiences. Here are key points regarding the “Physical Evidence” aspect of MTNL’s Service Marketing Mix:

1. Corporate Identity: MTNL’s brand elements, such as its logo, colors, and uniforms, are physical evidence of its corporate identity and professional image. These elements are consistently applied across all customer touchpoints.
2. Customer Service Centers: The design, layout, and ambiance of MTNL’s customer service centers are tailored to provide a comfortable and welcoming environment for customers seeking assistance, thereby enhancing the service experience.
3. Website and Online Portals: The company’s website and online service portals act as virtual physical evidence, with user-friendly design and navigation that reflect MTNL’s commitment to quality and customer service.
4. Billing and Communication Materials: Printed and electronic billing statements, service brochures, and communication materials are designed to be clear, informative, and reflect MTNL’s professionalism.
5. Telecommunications Infrastructure: The visible parts of MTNL’s infrastructure, such as telephone poles, wiring, and networking equipment, contribute to the perception of the company’s technological capabilities and service reliability.
6. Technology and Equipment: Devices and equipment provided to customers, such as modems and routers, are of high quality and branded, serving as tangible evidence of MTNL’s commitment to delivering high-quality service.
7. Signage and Advertising: External signage, advertisements, and promotional materials in public spaces serve marketing purposes and are physical evidence of MTNL’s presence and service offerings.
8. Employee Presentation: The appearance and demeanor of MTNL’s employees, including uniforms and ID badges, contribute to the physical evidence of the company’s professionalism and service standards.
9. Office and Network Operation Centers: The maintenance and presentation of MTNL’s offices and network operation centers, though not always directly visible to customers, support the overall perception of the company’s efficiency and technological prowess.
10. Service Vehicles: Branded service vehicles used for on-site customer support and maintenance work act as moving advertisements and indicators of MTNL’s service reach and responsiveness.

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