BHARTI AIRTEL

PRODUCT-MIX PRICING

Group Members:

Anurag SinghBharti VermaManish BahlTarun BahlYogesh Garg

OVERVIEW : BHARTI AIRTEL

Founded in 1996 by Sunil Bharti Mittal Deals in telecommunication, DTH etc. Market capitalization over $30 bn Employs over 38000 people Among top 5 wireless service providers

globally 3rd Most admired company in 2009 in

Asia Active role in CSR:Bharti Foundation

PRODUCT PRICING MIX

A tool to maximizes profits on the total mix

Decide the number of products in a product line

Different degree of competition for every product

So every product demand different price strategy

SIX DISTINGUISH PRICING STRATEGIES

Product-line pricing Optional-Feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing

PRODUCT-LINE PRICING

Product lines rather than single products

Categorize according to Price Category according to Price

Postpaid Prepaid

Low Freedom 249 (low call rates)

Per second Plan

Medium Advantage 199 (low call rates + message pack)

Per second plan + 1 year validity

High Turbo 249(Low call rates + message pack + 250 free local minutes)

Per second plan +2 months message pack + life time validity

OPTIONAL-FEATURE PRICING Offer Optional features and services

along with main product Helps in raising suggested selling

priceOptional features and packs

• Message pack

• Hello Tunes

• GPRS and Internet Pack

• 3G Connectivity

• Entertainment and Devotional Pack

• Tariff Pack

• Wallpapers and Music Pack

CAPTIVE-PRODUCT PRICING

Some products require the use of supplementary or Captive products.

Seller can earn more margins on captive products than that on main products.

For Example: Bharti Airtel earns more margin on Hello

tunes, Alerts , GPRS, 3G, Downloads than Talk-time plans.

TWO-PART PRICING

Fixed Fee plus Variable Usage Fee Fixed fee should be low enough to

induce purchase of service.

Post-Paid Connection Pre-Paid Connection

Rent Rs1500/month , Free A-A 1500 Minutes , after 1500 minutes 10p/min call rate

Recharge Rs21/month , Night A-A 20 minutes , after 20 minutes , call rate 1p/sec

Rent Rs999 , Free A-A 999 Minutes , after 999 minutes 30p/min call rate

Recharge Rs.121,month , 1500 minutes A-A free , after 1500 minutes , call rate 10p/30

PRODUCT-BUNDLING PRICING

Mixed Bundling Occurs when seller offers multiple

products in a bundle Airtel Mobile connection + Nokia

Handset Pure bundling Occurs when a firm offers its products

only as a bundle. Buy 1 connection , Get 1 free

Thank you