Pricing Strategies Between Airtel And Idea

Posted by Gowtham G. RCBS
February 25, 2017

Self-Published

PRICING STRATEGIES FOR A RIVAL COMPETITION

 

Airtel along with idea, and Vodafone competing with its rival Jio has been a hot talk for the past few weeks. While comparing the tariffs offered by Airtel, idea, Vodafone and Jio, we could easily see that the competition is for the pricing of Jio for free Data and voice mail. To go deep in the rivalry, how Airtel competes in the market, we made a study on Airtel’s pricing strategies on 3G and 4G networks. This was made with a comparison between Airtel and Idea as the lead the market shares along with Vodafone. Where Vodafone and Idea have similar offers, idea has brought up new tariffs which we were able to analyse during the study. This article will help you find out what is the pricing strategy dealt by both Airtel and Idea networks through a small comparison.

Airtel, as we know is owned by Sunil Bharati Mittal. Airtel launched its first 3G network during the year 2010. While the Airtel network was found all around India, which made huge profits during the late 2012, started its 4G networks to compete with a new product mix. Airtel’s 4 G network, started with new plans and tariffs as mentioned below.

Idea networks, was owned by Aditya Birla. Idea launched its first 3G network in the year 1995 as Birla Communications Ltd . They started their pricing strategy by providing 3G network during the year 2011 after completing 16 successful years in the 2G networks. A strong competition was found between Idea and other networks during these few years, and along with the past loyal customers, made them earn more shares. They started 4G network during 2014. The plans and tariffs according to the last provided fully updated general plans throughout India is mentioned below.

 

COMPARISON OF AIRTEL Vs IDEA:

 

The information gathered show us that the Airtel had aggressive pricing strategy because when Rjio started giving freebies, Both Airtel and Idea started giving more data package (The Figure shows the Normal Tariff Plans all over India, where special offers differ for every number), which says that they are affordable for Airtel And Idea and they could have done that earlier as well. Instead they were over charging the customers for a very long time. Is this the symbol of loyalty to the customers?

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