Tuesday, January 11, 2011

Is the Airtel's Rebranding Necessary?

At first I am not an expert in this and this is just my thinking about Airtel’s rebranding

Before starting lets have a brief about Airtel. In tha year 1983 Sunil Bharti Mittal started Bharti Group. It was a joint venture with germany’s Siemens to produce Push button telephones for Indian market. In 1986, Bharti Telecom Limited was been established. They are ht efirst producers of fax machine in India.

Then in 1995 they started their first services in telecommunication field in Delhi. Slowly by purchasing the other companies and by starting their ownthey had spread their market all over the India.

In this situation 3G was announced in india. There were also many new companies started coming into the field which give a huge competition  in the market. So Airtel decided to rebrand itself and another reason for that is Airtel now became as a international brand. They bought Zoin Telecom in Africa and one more in Bangladesh. So all together they prepared themselves to rebrand them with 300 crores as the rebranding budget.

Does Airtel need it?

In india Airtel is the leading companies in the mobile phone network services providers.  In the world they stand at fifth position. Even the companies they bought are not at low levels. i.e. those connection already have millions of subscribers for it. Another information is that Zoin telecom is the leading service providers in 10 circles in Africa and second in 5 circles.

Airtel already has too many problems to solve in India itself. Many people say that they don’t get proper network. So the company would have concentrated to take care about that. Customer care problem is there in Airtel. If they are not concentrating on these problems, due to negative word of mouth, even if they rebrand it, they can’t succeed. So the company would have concentrated on these things rather than wasting their 300crores.

Mobile phone service providers have huge opportunities in coming year especially in rural areas. It is said that more than 40% of the rural are not exposed to cell phone. If Airtel concentrates on this, they can develop their market. If not, once the network portability comes then Airtel will be the brand that is going to face a big loss of customers.

Another thing is that the new logo of Airtel resembles the other companies like Videocon. Even some people say that the new logo is the mix of Videocon and vodapone logos. So the Airtel will get a bad name because of this issue. So as a conclusion I say that Airtel should have concentrated on their present services improvement rather than going for a waste 300crores rebranding.

To read the tamil version of it…..

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