The case is about the marketing challenge faced by the Head of the Delhi/NCR circle of Aircel Ltd, a telecom company in India. In Delhi circle, the company had achieved a commendable share of users in just two years, but they also had the lowest average revenue per user (ARPU) among the telecom majors. Both the achievement of user base and failure to get adequate ARPU could, in some way, be attributed to the type of distribution channel and end consumers they attracted due to their late entry in the Delhi circle. The company was attempting to change its customer strategy to henceforth focus on the quality of customers rather than the number of customers. It was also planning to implement a strategy of bundling handsets with the connection, based on the research finding that such customers were likely to have a greater ARPU. The dilemmas presented were the impact of the change in the customer strategy on the distribution channel and its motivation. The case deals with the choices to be made and how to make the changes necessary to implement the marketing strategy through the well-established distribution system.
