The telecom services providers are pondering over ways to enhance sales and market share in the Indian market with intense competition. The number of players is increasing with two new players namely Virgin and Aircel. How does the players in this industry strategize so as to attain their objectives?
These companies are resorting to various means in order to gain market share. Vodafone came up with the much hyped Zoozoo campaign while Idea came up with a new idea during the IPL season 2 (Click here for more details). All these companies are now trying to sell their Value Added Services or VAS.
Well, I really don't think that it's a great strategy to promote VAS now, when the world economy is hit by recession. The common people are struggling to avert receiving pink slips. Analysts are working hard to speculate the after math of recession. As such, there is a lot of uncertainity around and the entire financial structure of the country isn't in great health.
As such, who cares about getting beauty tips or cricket scores? The masses now want to stay connected in the cheapest possible rates with absolutely no inclination towards any kind of value added services. They rather want value for money.
In this context, the attempts of several players is laudable. Airtel, which is positioned around knitting relationships, lowered its STD tariffs some time back. Virgin mobile, which is the fastest growing mobile operator has further lowered the STD and local call rates to 50paise per minute.
Well, I think revising the pricing strtegies is the need of the hour and not VAS. Let us see how these VAS providers and promoters fare against those who could feel the pulse of customers based on heinous market scenario.
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Lavika : I liked your opinion about need for the hour. But one thing I would like to mention here is that when you talk about VAS and say that in this time of recession marketing focus shouldn't be on these.
Actually what happens is that they set up a infrastructure for it when implementing this competency in their business and there is a cost behind this. once set up you would like to get as much as out of it rather than closing it but core competency still remains better connectivity at lower prices.
It is like suppose an organization is having multiple businesses. Some will be core competencies with major profits while others not as successful but they were an attempt to diversify the business. Diversity is the need of any organization to grow. Take any names they have grown mostly because of diversity. Ex: reliance.
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