Marketing Strategy of MTNL analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on MTNL marketing mix, help the brand succeed in the market. Let us start the MTNL Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in MTNL marketing strategy can be explained as follows:
MTNL is one the leading telecom service providers in India, which has the strong backing on the Government of India. MTNL provides fixed line telephone services, Wireless local loop (WLL) services as well as mobile services (2G, 3G, 4G) in its marketing mix product & service offering. It provides three products in mobile services i.e. Dolphin, which is a postpaid GSM service also available in 3G; Trump, which is similar to Dolphin but is prepaid, and Garuda, which is a WLL service. MTNL launched its 3G service in 2011.
In addition to this, MTNL also provides VOIP, VPN and ILL services with the help of BSNL and VSNL. It also offers toll free services for enterprises. MTNL also earns secondary revenue from digital ads in metro cities of India.
MTNL Price/Pricing Strategy:
Below is the pricing strategy in MTNL marketing strategy:
MTNL enjoyed a monopoly in market until 1998. After the introduction of mobiles and wireless services by new private players, MTNL lost its monopoly and offered wireless services at highly competitive prices.
MTNL offers economy pricing which is affordable for the customer. For broadband services in Delhi and Mumbai, MTNL provides services at the price which is comparable to competitors like Airtel and Tikona. MTNL offers more number of plans for data usage at competitive pricing. Today, the telecom sector in India is on the verge of consolidation due to intense competition from new player like Jio, which gave rise to a price war among major telecom players. All the companies in this sector are using competitive pricing model. To tackle the price war started by Jio, MTNL offered 2GB of 3G data per day for a month at a price of approx Rupees 300 per month. Hence the competitive pricing is a part of its marketing mix strategy to tackle competitors in the Indian scenario.
Following is the distribution strategy in the MTNL marketing mix:
MTNL has its headquarters in New Delhi and it provides its services in metro cities of Mumbai and New Delhi in India. In both the cities, MTNL has various sub-offices which take care of particular district and serve the needs of customers. The major chunk of the sales happens from these sub-offices. Rest are taken care by umbrella shops, retailers etc. MTNL also has its own website for better complaint management and request processing. It is also internationally present in Mauritius with 140,000+ connections under the name of MTML (Mahangar Telephone Mauritius Ltd). MTNL tries to provide better services with the help of joint ventures and subsidiaries.
It is also present in Nepal with its joint venture with United Telecom Limited (UTL).
MTNL Promotion & Advertising Strategy:
The promotional and advertising strategy in the MTNL marketing strategy is as follows:
Although MTNL does not promote itself as aggressively as other competitors in telecommunications industry, it does have a presence in the advertising space. MTNL effectively uses print ads for advertisements and promotion. It has associated with sports events to create positive brand awareness, and one such example is becoming the official telecom partner for Common Wealth Games held in India in 2010. MTNL runs Perfect Health Mela every year, in New Delhi. It also has a Facebook and Twitter page for promotion and communicate with the customers.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of MTNL.
MTNL has a lot of focus towards its people strategy. Both employees and subscribers are equally important for MTNL, it has a strong base of more than 45000 employees. In case of customers or subscribers, MTNL wired broadband is among the top five in India, with a customer base of 1.05 million. It has a 7.7 million strong customer base in both Delhi and Mumbai. In Mauritius, it is the second telecom operator with the customer base of 45000+ customers.
MTNL established in Delhi and Mumbai quite early and almost enjoyed the monopoly until 1992, when the Indian economy opened up. MTNL has been forefront in launching new technologies like VOIP services with accessibility in all over the world across 168 countries. It provides a huge portfolio of products from wireless to wireline, with the customer base increasing for wireline broadband services. It caters to its customer service via its website, mail and by toll free number. MTNL had successfully converted 100% of its telephone exchange network into state of the art digital network. Getting a new connection for home or office is quite easy, and the complaint regarding any fault can be filed from their website or telephone number. However, the average time taken to eradicate the fault is more than that of the competitors.
MTNL has offices in metro cities of New Delhi and Mumbai. The office spaces have generally been same for last 40 years and the environment of majority of the offices is just same as that of other government offices in India. The employees have been loyal to MTNL for many years. The customer satisfaction from these offices however, hasn’t been so up to the mark. The broadband services and internet services provided by MTNL are better but in case of any problem in the working of these services, the estimated service request solution time is more than that of the competitors. Hence this completes the marketing mix of MTNL.
Mahanagar Telephone Nigam Ltd (MTNL) is one of the oldest telecom providers in India. It is a Public sector company servicing in India as well as international locations like Mauritius. In India, the company is present in Metro cities of New Delhi and Mumbai.
Before the introduction of mobiles, MTNL had monopoly in telecom sector in the market. It is today the 9th largest internet service provider in India.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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