Airtel Case STUDY
Airtel Case STUDY
Airtel Case STUDY
Submission Guidelines
MRP refers to details of various base recharges provided by AlphaTel representing various segments.
ARPU is the Average Revenue Per User
= Total Revenue/Number of Users
=(2450+6500+3400+4000+12000+6750)/(70+50+20+20+30+15)
=171.22
Minimum incremental revenue should be where all segments achieve ARPU.
The segments to be targeted are whose MRP be less than ARPU. Thus, Base Recharge of 35, 130 170
should be targeted.
Target segments :
Top Spenders- Ones who use the scheme twice every month.
Average Spenders: Ones who spend once in every quarter.
Low Spenders: Ones who rarely spend depending upon the scheme offered.
Presentation to the CFO
Rs. Subscriber Validity Total before change Shift total after change
35 70 30 2450 63 2205
from app 10.25 ARPU before change 171.2195122 10.7625 ARPU after change 190.4512195
Since ARPU after the shit is more than the shift before the shift, therefore it’s a profitable proposal and can be carried forward.