PGDM
2012-2014
Page 1
DECLARATION
Page 2
ACKNOWLEDGEMENT
I convey my sincere thanks to external guide Mr. A. Deepak Kumar for giving me
the throughout my project.
I express my sincere gratitude to my guide Mr. Ajay Mehta, Professor in ERA
Business School for giving me his valuable guidance and support in completing the
project.
I express my deepest thanks to all respondents for their co-operation of my
project.
I also express my sincere thanks to all the faculty members, librarians, friends and
well-wishers who had helped me to do this project successfully.
Page 3
CONTENT
CHAPTER I
Executive Summary
CHAPTER II
Introduction to Topic
7-9
CHAPTER III
Company Profile
10 - 32
3.1 Promoters
15
16
17
18 - 19
20 - 22
22 - 25
26 - 29
29 - 32
CHAPTER IV
33 - 35
CHAPTER V
Literature Review
36 - 44
CHAPTER VI
Research Methodology
45 - 46
45
46
46
46
46
46
CHAPTER VII
47 - 60
CHAPTER VIII
Conclusion
61
CHAPTER IX
Recommendations
62
Page 4
63 - 65
Executive Summary:
It is no wonder that in todays aggressive business environment, the challenges of
sustaining in these competitive surroundings, preoccupies the minds of many Business
leaders. Customers have many options to choose their telecom operator from competitive
market. Furthermore, they often perceive that what they are purchasing is, for all practical
purposes, a commodity that can be easily obtained from other companies, if need be. So,
how does a corporation distinguish itself in a highly commoditized and competitive
market? Todays business is more dependent, than ever before, on their top performing
product to be innovate and provide services that differentiate a company from its fierce
competitors. In other words, corporations rely upon their product and human assets to
survive and thrive.
Airtel is one of the leading telecom firms of the country. Airtel is providing
intermediate services to the people of India since 1995. The company is largest cellular
service provider in India and third largest in the world in the field of various telecom
services like Mobile network, wireless, landline, broadband, satellite television, etc. The
company is famous for world presence, vast network coverage, excellent service and
brand image managed by experts.
This project was carried out for Bharti Airtel, Begumpet, Hyderabad, Andhra
Pradesh. This is one of the leading centers for marketing and sale of Airtel product and
services in southern region. The project was carried out for 45 days as summer internship
program in a systematic manner.
This project report contains various section where Ive discussed about company
profile, its present strength, porters 5forces model, competitive analysis, SWOT analysis,
methodology used, sample size, sample unit, analysis and discussion, questionnaire, and
annexure.
After market study it can be said there is very tough competition between various
telecom firms like Airtel, Vodafone, Aircel, BSNL, Idea, uninor, etc. But still Airtel is
leading the market of Hyderabad.
Page 5
INTRODUCTION:
Advertising is a form of communication intended to persuade an audience
(viewers, readers or listeners) to purchase or take some action upon products, ideas, or
services. It includes the name of a product or service and how that product or service
could benefit the consumer, to persuade a target market to purchase or to consume that
particular brand. These messages are usually paid for by sponsors and viewed via various
media. Advertising can also serve to communicate an idea to a large number of people in
an attempt to convince them to take a certain action.
Commercial advertisers often seek to generate increased consumption of
their products or services through branding, which involves the repetition of an image or
product name in an effort to associate related qualities with the brand in the minds
of consumers. Non-commercial advertisers who spend money to advertise items other
than a consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement.
Modern advertising developed with the rise of mass production in the late 19th
and early 20th centuries. Mass media can be defined as any media meant to reach a mass
amount of people. Different types of media can be used to deliver these messages,
including traditional media such as newspapers, magazines, television, radio, outdoor or
direct mail; or new media such as websites and text messages.
"Strategy is the direction and scope of an organization over the long-term: which
achieves advantage for the organization through its configuration of resources within a
challenging
environment,
to
meet
the
needs
of markets and
to
Strategic Analysis
This is all about the analyzing the strength of businesses' position and
understanding the important external factors that may influence that position. The process
of Strategic Analysis can be assisted by a number of tools, including:
PEST Analysis - a technique for understanding the "environment" in which a business
operates.
Scenario Planning - a technique that builds various plausible views of possible futures
for a business.
Five Forces Analysis - a technique for identifying the forces which affect the level of
competition in an industry.
Page 8
Strategic Choice:
This process involves understanding the nature of stakeholder expectations (the
"ground rules"), identifying strategic options, and then evaluating and selecting strategic
options.
Strategy Implementation
Often the hardest part. When a strategy has been analyzed and selected, the task is
then to translate it into organizational action.
Page 9
COMPANY PROFILE
Airtel India Profile
Type
Public
Industry
Telecommunications
Founded
Founder(s)
Headquarters :
Area served
Islands
Key people
Products
Employees
21,300(Nov12)
Subsidiaries
Airtel Africa
Airtel Digital TV
Airtel Sri Lanka
Airtel Bangladesh
Page 10
Page 11
Airtel has always backed on human relations and emotions in their brand
communication through its advertisements focusing on the emotional content. The brand
promotions have come a long way with its signature tune composed by AR Rahman in
the year 2002, to the latest campaigns inspired by the theme of friendship.
In the 2010, Airtel launched a new signature tune and it even rebranded its logo
and launched the Dil Jo Chahe Paas Laaye campaign. This initiative was taken to
target the corporate and post-paid subscribers with its new communication.
In 2011, the brand launched the Har Ek Friend Zaroori Hota Hai campaign
with a same signature tune modified to focus on the youth and targeting itself as The
friendship brand. The campaign was a huge success with its lively tune. Since then,
Airtels campaigns have been inspired by the theme of friendship.
In the year 2012, it launched the latest Ad campaign which complemented the
earlier ad, focusing on friendship Jo Mera Hai Who Tera Hai, which is again a hit
amongst the viewers and its customers.
Board of Directors:
The Board of Directors of the Company has an optimum mix of Executive and
Non-Executive Directors, which consists of three Executive and fifteen Non-Executive
Directors.
The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive
Director and the number of Independent Directors on the Board is 50% of the total Board
Page 12
strength. The independence of a Director is determined on the basis that such director
does not have any material pecuniary relationship with the Company, its promoters or its
management, which may affect the independence of the judgment of a Director.
The Board members possess requisite skills, experience and expertise required to
take decisions, which are in the best interest of the Company.
The composition of the Board is as under:
Tsun-yan Husieh
Manoj Kohli
ACHIEVEMENTS:
First to expand its network with the installation for second mobile switching
center in April, 1997 and the first to introduce the Intelligent Network Platform
First to provide Roaming to its subscribers by forming an association called
World 1 Network.
First to provide roaming facility in USA. Enjoy the mobile roaming across 38
partner networks & above 700 cities Moreover roam across international
destinations in 119 countries including USA, Canada, and UK etc. with 284
partner networks.
Bharti Enterprises and AXA Asia Pacific Holdings Limited announce Partnership
for a life insurance joint venture in India
Page 14
16 states, 600 million people. Only India's leading mobile service offers you the
truly 'freedom-packed' Prepaid!
Bharti Tele-Ventures:
The businesses at Bharti Tele-Ventures have been structured into three individual
strategic units (SBUs)
1) mobile services
2) broadband and telephone services (B&T)
3) enterprise services
The Mobile services group provides GSM mobile services across India in 23 telecom
circles, while B&T business group provides broadband & telephone services in 94 cities.
The Enterprise Services group has two sub-units carriers (long distance services) and
services top corporate. All these services are provided under the Airtel brand.
Bharti Enterprises has been at the forefront of technology and has revolutionized
telecommunications with its world class products and services. Established in 1976,
Bharti has been a pioneering force in the telecom sector with many firsts and innovations
to its credit.
Bharti provides a range of telecom services, which include Cellular, Basic, Internet
and recently introduced National Long Distance. Bharti also manufactures and exports
telephone terminals and cordless phones. Apart from being the largest manufacturer of
telephone instruments in India, it is also the first company to export its products to the
USA.
Bharti is the leading cellular service provider, with a footprint in 16 states covering all
four metros. It has over 12 million satisfied customers
- Sunil Bharti Mittal, Chairman, Bharti Tele-Ventures
Promoters
Page 15
The company has a strategic alliance with SingTel. And vodafone is also a 4%
shareholder of Bharti airtel the investment made by SingTel is one of the largest
investments made in the world outside Singapore, in the company. The companys mobile
network equipment partners include Ericsson and Nokia. In the case of the broadband and
telephone services and enterprise services (carriers), equipment suppliers include
Siemens, Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology requirements
and with Nortel for call center technology requirements. The call center operations for the
mobile services have been outsourced to IBM Daksh, Hinduja TMT, and Teletech &
Mphasis.
Strategic Intent:
Mission
Page 16
We at Airtel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel. We deliver what we promise and go out
of our way to delight the customer with a little bit more
We will meet global standards for telecom services that delight customers
through:
Organization structure
Page 17
The group has been structured to create functional and operational specialization with a
linear vision of business lines and functional areas.
The Company is headed by Chairman and Group Managing Director- Sunil Bharti
Mittal who is assisted by two Joint Managing Directors- Gopal Vittal (India) and Manoj
Kohli (International). An apex team of Corporate Directors has been constituted. The
corporate directors have supervisory and strategic responsibilities for functional areas
across business lines. The directors oversee functional areas including Business
Development, Human Resources, Marketing, Corporate Communication, IT &
Technology, Finance, Legal, Corporate Affairs, Corporate Strategy & Planning and
Supervisory Director cum Chief Mentor - mobility.
The organization structure is designed to ensure that identical businesses are run
along similar lines and best resources in any functional field, be tapped to serve the best
interests of the entire group. The structure also defines the role of the Head of the units
who are totally empowered to manage their respective companies and are fully
responsible for business operations to build world-class organizations with a high degree
of customer focus.
Product Line
Airtel Broadband
Airtel Landline
Airtel 3G
Airtel Mobile
Airtel Blackberry
Airtel IPhone
Airtel Money
Airtel DTH
Page 19
Value Chain
Input
Operation
Licenses
Finance
for
operations
and setup
of
infrastruct
ure
Setting up
Network
infrastruct
ure in
collaborati
on with
third party
Software
and
support
required to
operate the
Mobile
telephony
Value
added
content
providers
of like
games,
music etc.
Operatio
ns
Develop and
expand the
infrastructur
e
Customize
software to
requirement
Develop the
sim cards
Develop the
network
substations
Use the
Mobile
serives
switching
center to
divert traffic
to mobile or
fixed
systems
Integrate
various
network to
achieve
economies
of scale
Output
Broad
Band
Services
Fixed
Line
Services
GSM
Services
Marketin
g &
Sales
Strong
VAS
DTH
SIM
distributio
n channel
First
mover in
developin
g better
products
Introducio
n of new
services to
match the
customer
preference
s
Innovative
advertisin
g
campagins
Sales force
compensat
ion tied to
profit and
not
revenues
Customer
awareness
about
latest
technolog
y
Service
s
Coverage
area of
each airtel
outlet
Customer
Support
Technical
assistance
for broad
band
services
Duplicate
Sim
availabilit
y
Strong
supplier
channel
for
repairable
parts
Opening
new
outlets in
new
circles
Support Activities
Firm Infrastructure: Tower setup, IT infrastructure, Telecom equipments, networking
stations and equipments, ERP and various software to assist in operations
HR Management: Hiring of IT skilled workforce and telecom operators. Hiring of
customer support personnel and their training program. Expertise in recruiting the retail
staff and quality of their training. Recruiting best in business leaders to take the company
forward.
Page 20
Industry Analysis
Porters 5 force model
Customer
Bargainin
g Power
Threat of
New
Entrants
Threat
from
Competitio
n
Threat of
Substitut
es
Supplier
Bargainin
g Power
Page 22
Competitive Analysis
Vodafone Essar
Vodafone has come with creative advertising campaign for its various plans.
The strategy is a buzz that lives up to the brand image of great creative and clever
marketing.
In the first 10 days of IPL it has reached a cumulative of 89 million people. This is
a wonderful strategy adopted by Vodafone.
This has helped the company to raise not only its profits through sales but has also
tremendously increased its brand value.
Vodafone is the main competitor for Airtel with 153 million subscribers.
Page 23
Global giant Vodafone holds a strong position in the Indian telecom market. With
various sponsorships and pan-India network, Vodafone is a big telecom player.
Also, the zoozoo ad campaigns have revitalized the brand and made these
adorable characters as one of the most prominent marketing campaigns ever.
IDEA CELLULAR
With a customer base of over 23 million, IDEA Cellular footprint currently covers
approximately 60% of India's telecom population.
Page 24
Customer Service and Innovation are the drivers of this Cellular Brand. A brand
known for their many firsts, Idea is only operator to launch GPRS and EDGE in
the country. Idea has received international recognition for its path-breaking
innovations when it won the GSM Association Award for "Best Billing and
Customer Care Solution" for 2 consecutive years.
Idea cellular has a market share of 122 million subscribers and one of the most
prominent brands of Indian telecom industry are Idea, with a strong backup of the
Birla group.
Idea cellular has become a market leader in various circles and has also been in
the lime-light through Idea Rocks India concert, Kaun Banega Crorpati and IPL
team Delhi Daredevils.
Reliance Communications
Page 25
Reliance Communications have a network spread over 25000 towns and 0.6 mn
villages, and over 190,000 km of optic fiber cable systems. Apart from telecom,
the company also boasts of Reliance Digital Big TV.
Tata Teleservices
TTSL was the first company to offer CDMA Mobile services in India, specifically
in the state of Andhra Pradesh. Tata is the direct competitor with other operators
in India.
Page 26
The company was first in India to provide free intra network calling within city
limits. They launched a unique scheme providing lifetime rental free connectivity
on its mobile and fixed wireless for a one-time charge.
The telecom services of the Group are offered under the brand name Tata
Indicom, and cover all segments, from retail and enterprise to wholesale and
international.
Tata Indicom offers you a range of products and services like Wireless Internet,
Wireless USB Modem and Mobile Phones so you are always connected.
Landline Phones Net Telephony Internet & Broadband It has partnered with
Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable,
technologically advanced network. The company, which heralded convergence
technologies in the Indian telecom sector, is today the market leader in the fixed
wireless telephony market with a total customer base of over 3.8 million.
private network, call conferencing, friend and family talk, call waiting, and call
holding services.
The company also provides 3G; wireless in local loop (WLL) mobile telephone;
Internet; Web-hosting; Web co-location; SMS and bulk SMS; and broadband
services. In addition, it offers managed network services; multi-protocol label
switching based virtual private network (VPN) services; integrated services
digital network (ISDN) services; data communication services; intelligent
network services consisting of toll free phone service, universal access number,
voice VPN, televoting, and virtual calling cards; and video, audio, and Web
conferencing services.
Further, the company provides fleet management solution comprising eTracK, an
on-line tracking system to manage fleet, such as trucks, car carriers, trailers,
tankers, containers, or vehicles carrying hazardous and specialty explosive
chemicals; Inet services for use in various applications, including electronic mail
services, corporate communications, information retrieval, database services,
remote job applications, credit card verifications, travel reservations, and Internet
connectivity; telex/telegraph services; PABX/EPABX services; and DSPT
services, as well as offers VSAT, voice over Internet protocol, and IN services.
Marketing Strategy
Positioning of the Company vs. a vs. Competitors
Purpose of comparison
The sub main purpose of this report is to compare the marketing strategies
adopted by Bharti Airtel and its rival Vodafone.
The comparison shows how both of the companies have been challenging each
other to gain market share.
Page 28
Since its launch Vodafone has been adopting aggressive marketing strategies.
Target marketing
Businessmen
Positioning
Marketing mix
Vodafone:
Vodafone target the rural India The main targeted customers of Vodafone are
from rural India. By offering cheap and light mobile sets Vodafone attracts most of the
customers of small villages and towns. Offering cheap handsets Vodafone offers cheap
and free connections to all customers. The cost for these sets was Rs-799-849-1099 per
set and onward. In every district and big towns Vodafone opens its service centers to
provide better support and services
Strong logistics and supply chain Vodafone has a strong logistic and supply all
over India. In every small town the potential customers can easily purchase the Vodafone
SIM & Sets. Targeting youngsters in metropolitans Vodafone attracts youngsters by
offering colorful handset at very low prices.
Brand Positioning By Vodafone
Market segmentation
Page 30
Target marketing
Businessmen
Positioning
Creating brands
Marketing mix
SWOT Analysis
Strengths
Bharti Airtel has more than 183.61 million subscribers as of Mar13. It is the
largest cellular provider in India, and also supplies broadband and telephone
services - as well as many other telecommunications services to both domestic
and corporate customers.
Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel,
with whom they hold a strategic alliance. This means that the business has access
to knowledge and technology from other parts of the telecommunications world.
The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.
Page 31
Airtel offers the most expansive roaming network. Letting you roam anywhere in
India with its Pan-India presence, and trot across the globe with International
Roaming spread in over 240 networks. The mobile services group provides GSM
mobile services across India in 23 telecom circles, while the B&T business group
provides broadband & telephone services in 92 cities.
Airtel, the monopoly breaker shattered the Telecom monopoly in the International
Long Distance space with the launch of International Submarine cable Network
i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has
brought a huge value to the IPLC customers, delivering them an option besides
the incumbent carrier, to connect to the outside world.
Weaknesses
An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and experience
of how a cellular telephone system actually worked. So the start-up business had
to outsource to industry experts in the field.
Until recently Airtel did not own its own towers, which was a particular strength
of some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.
The fact that the Airtel has not pulled off a deal with South Africa's MTN could
signal the lack of any real emerging market investment opportunity for the
business once the Indian market has become mature.
Airtel has tough competition from the operators like BSNL and MTNL as these
two operators are offering services at a low rate.
Although Airtel have strong Presence throughout the country but still they are far
away from the Indian rural part and generally this part is covered by BSNL so
indirectly Airtel is losing revenue from the rural sector.
Page 32
Opportunities
The company possesses a customized version of the Google search engine which
will enhance broadband services to customers. The tie-up with Google can only
enhance the Airtel brand, and also provides advertising opportunities in Indian for
Google.
Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to
question industry approaches and practices - for example replacing the RevenuePer-Customer model with a Revenue-Per-Minute model which is better suited to
India, as the company moved into small and remote villages and towns.
Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea
Cellular to create a new independent tower company called Indus Towers. This
new business will control more than 60% of India's network towers. IPTV is
another potential new service that could underpin the company's long-term
strategy.
Threats
Page 33
The quickly changing pace of the global telecommunications industry could tempt
Airtel to go along the acquisition trail which may make it vulnerable if the world
goes into recession. Perhaps this was an impact upon the decision not to proceed
with talks about the potential purchase of South Africa's MTN in May 2008. This
opened the door for talks between Reliance Communication's Anil Ambani and
MTN, allowing a competing Indian industrialist to invest in the new emerging
African telecommunications market.
Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.
Page 34
About Project:
The purpose of this project is to know about the advertising strategies followed by
Airtel Company in order to aware the customers and the consumers about the availability
of the different products of the company in the market and also to increase the sale of the
products likewise the reputation of the company.
Airtel is the most leading and admired brand in Andhra Pradesh with 32.7%
market share of active subscribers, and also with a market share of 28.4% total
subscribers. Airtel is providing the best telecom services with better promotional schemes
and with heavy advertisement. The total subscribers of Airtel in Andhra Pradesh are
18,251,864 (by Mar-13) and the total active subscribers are 17,713,434(by Mar-13).
Page 35
ADVERTISING:
As a business begins, one of the major goals of advertising must be to generate
awareness of the business and its products. Once the business' reputation is established
and its products are positioned within the market, the amount of resources used for
advertising will decrease as the consumer develops a kind of loyalty to the product.
Ideally, this established and ever-growing consumer base will eventually aid the company
in its efforts to carry their advertising message out into the market, both through its
purchasing actions and its testimonials on behalf of the product or service.
Essential to this rather abstract process is the development of a "positioning
statement," as defined by Gerald E. Hills in "Marketing Option and Marketing" in The
Portable MBA in Entrepreneurship: "A 'positioning statement' explains how a company's
product (or service) is differentiated from those of key competitors." With this statement,
the business owner turns intellectual objectives into concrete plans. In addition, this
statement acts as the foundation for the development of a selling proposal, which is
composed of the elements that will make up the advertising message's "copy platform."
This platform delineates the images, copy, and art work that the business owner believes
will sell the product.
With these concrete objectives, the following elements of the advertising strategy
need to be considered: target audience, product concept, communication media, and
advertising message. These elements are at the core of an advertising strategy, and are
often referred to as the "creative mix." Again, what most advertisers stress from the
beginning is clear planning and flexibility. And key to these aims is creativity, and the
ability to adapt to new market trends. A rigid advertising strategy often leads to a loss of
market share. Therefore, the core elements of the advertising strategy need to mix in a
way that allows the message to envelope the target consumer, providing ample
opportunity for this consumer to become acquainted with the advertising message.
The target consumer is a complex combination of persons. It includes the person
who ultimately buys the product, as well as those who decide what product will be
Page 36
bought (but don't physically buy it), and those who influence product purchases, such as
children, spouse, and friends.
IMPORTANCE OF ADVERTISING:
The purpose of advertising is motivating but to sell something a product, a service or
an AIRTEL. The real objective of advertising is effective communication between
producers and consumers. In other words the ultimate purpose all advertising is
Increased awareness list of the following specific objectives of advertising.
To make on immediate AIRTEL
To build primary demand
To introduce a price deal
To inform about a products availability
To increase market share
To help salesman by building on awareness of a product among retailers
To increase the frequency use of a product
To build overall company image
To build brand recognition
Page 37
Airtel has been the first player in India to offer some niche services like
Blackberry, Caller Tunes, and personalized ringtones and has even attached itself with the
biggest names like Sachin Tendulkar, AR Rahman and Shahrukh Khan to promote the
brand.
Airtel has always backed on human relations and emotions in their brand
communication through its advertisements focusing on the emotional content. The brand
promotions have come a long way with its signature tune composed by AR Rahman in
the year 2002, to the latest campaigns inspired by the theme of friendship.
In the 2010, Airtel launched a new signature tune and it even rebranded its logo
and launched the Dil Jo Chahe Paas Laaye campaign. This initiative was taken to
target the corporate and post-paid subscribers with its new communication.
In 2011, the brand launched the Har Ek Friend Zaroori Hota Hai campaign
with a same signature tune modified to focus on the youth and targeting itself as The
friendship brand. The campaign was a huge success with its lively tune. Since then,
Airtels campaigns have been inspired by the theme of friendship.
In the year 2012, it launched the latest Ad campaign which complemented the earlier ad,
focusing on friendship Jo Mera Hai Who Tera Hai, which is again a hit amongst
the viewers and its customers.
REVIEW OF LITERATURE
An advertising strategy is a campaign developed to communicate ideas about
products and services to potential consumers in the hopes of convincing them to buy
those products and services. This strategy, when built in a rational and intelligent manner,
Page 38
will reflect other business considerations (overall budget, brand recognition efforts) and
objectives (public image enhancement, market share growth) as well. As Portable MBA
in marketing authors Alexander Hiam and Charles D. Schewe stated, a business's
advertising strategy "determines the character of the company's public face." Even though
a small business has limited capital and is unable to devote as much money to advertising
as a large corporation, it can still develop a highly effective advertising campaign. The
key is creative and flexible planning, based on an in-depth knowledge of the target
consumer and the avenues that can be utilized to reach that consumer.
Today, most advertising strategies focus on achieving three general goals, as the
Small Business Administration indicated in Advertising Your Business: 1) promote
awareness of a business and its product or services; 2) stimulate sales directly and "attract
competitors' customers"; and 3) establish or modify a business' image. In other words,
advertising seeks to inform, persuade, and remind the consumer. With these aims in mind,
most businesses follow a general process which ties advertising into the other
promotional efforts and overall marketing objectives of the business.
STAGES OF ADVERTISING STRATEGY:
As a business begins, one of the major goals of advertising must be to generate
awareness of the business and its products. Once the business' reputation is established
and its products are positioned within the market, the amount of resources used for
advertising will decrease as the consumer develops a kind of loyalty to the product.
Ideally, this established and ever-growing consumer base will eventually aid the company
in its efforts to carry their advertising message out into the market, both through its
purchasing actions and its testimonials on behalf of the product or service.
In order to identify the target consumer, and the forces acting upon any purchasing
decision, it is important to define three general criteria in relation to that consumer, as
discussed by the Small Business Administration:
1. DemographicsAge, gender, job, income, ethnicity, and hobbies.
2. BehaviorsWhen considering the consumers' behavior an advertiser needs to
examine the consumers' awareness of the business and its competition, the type of
vendors and services the consumer currently uses, and the types of appeals that
are likely to convince the consumer to give the advertiser's product or service a
chance.
3. Needs and Desireshere an advertiser must determine the consumer needs
both in practical terms and in terms of self-image, etc.and the kind of
pitch/message that will convince the consumer that the advertiser's services or
products can fulfill those needs.
PRODUCT CONCEPT:
The product concept grows out of the guidelines established in the "positioning
statement." How the product is positioned within the market will dictate the kind of
values the product represents, and thus how the target consumer will receive that product.
Therefore, it is important to remember that no product is just itself, but, as Courtland L.
Bovee and William F. Arens stated in Contemporary Advertising, a "bundle of values"
that the consumer needs to be able to identify with. Whether couched in presentations that
emphasize sex, humor, romance, science, masculinity, or femininity, the consumer must
be able to believe in the product's representation.
COMMUNICATION MEDIA:
Direct mail.
After deciding on the medium that is 1) financially in reach, and 2) most likely to
reach the target audience, an advertiser needs to schedule the broadcasting of that
advertising. The media schedule, as defined by Hills, is "the combination of specific
times (for example, by day, week, and month) when advertisements are inserted into
media vehicles and delivered to target audiences."
ADVERTISING MESSAGE:
An advertising message is guided by the "advertising or copy platform," which is a
combination of the marketing objectives, copy, art, and production values. This
combination is best realized after the target consumer has been analyzed, the product
concept has been established, and the media and vehicles have been chosen. At this point,
the advertising message can be directed at a very concrete audience to achieve very
specific goals.
Page 41
Hiam and Schewe listed three major areas that an advertiser should consider when
endeavoring to develop an effective "advertising platform":
How do competitors rank in the eyes of the consumer? Are there any weaknesses
in their positions? What are their strengths?
Small business owners also need to consider the visual rhetoric of the
advertisement, which simply means that the entire advertisement, including blank space,
should have meaning and logic. Most industry experts recommend that advertisers use
short paragraphs, lists, and catchy illustrations and graphics to break up and supplement
the text and make the document both visually inviting and easy to understand.
Remember, an advertisement has to capture the reader's attention quickly.
ADVERTISING BUDGET:
The advertising budget can be written before or after a business owner has
developed the advertising strategy. When to make a budget decision depends on the
importance of advertising and the resources available to the business. If, for instance, a
business knows that they only have a certain amount of money for advertising then the
budget will tend to dictate what advertising is developed and what the overall marketing
objectives will be. On the other hand, if a business has the resources available, the
advertising strategy can be developed to meet predetermined marketing objectives. For
small businesses, it is usually best to put together an advertising budget early in the
advertising process.
The following approaches are the most common methods of developing an
effective budget. All the methods listed are progressive ones that look to perpetuate
growth:
Page 43
Competitive approach
Market share
The easiest approach and thus the one that is most often used is the percentage of
future or past sales method. Most industry experts recommend basing spending on
anticipated sales, in order to ensure growth. But for a small business, where survival may
be a bigger concern than growth, basing the advertising budget on past sales is often a
more sensible approach to take.
METHODS OF ADVERTISING:
Small business owners can choose from two opposite philosophies when
preparing their advertising strategy. The first of these, sometimes called the push method,
is a stance wherein an advertiser targets retail establishments in order to establish or
broaden a market presence. The second option, sometimes called the pull method, targets
end-users (consumers), who are expected to ask retailers for the product and thus help
"pull" it through the channel of distribution. Of course, many businesses employ some
hybrid of the two when putting together their advertising strategy.
PUSH METHOD:
The aim of the push method is to convince retailers, salespersons, or dealers to carry
and promote the advertiser's product. This relationship is achieved by offering
inducements, such as providing advertising kits to help the retailer sell the product,
offering incentives to carry stock, and developing trade promotions.
PULL METHOD:
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The aim of the pull method is to convince the target consumer to try, purchase, and
ultimately repurchase the product. This process is achieved by directly appealing to the
target consumer with coupons, in-store displays, and sweepstakes
ANALYZING ADVERTISING RESULTS:
Many small businesses are distressingly lax in taking steps to monitor whether
their advertising efforts are having the desired effect. Instead, they simply throw a
campaign out there and hope for the best, relying on a general sense of company health
when determining whether to continue, terminate, or make adjustments to advertising
campaigns. These small business owners do not seem to recognize that myriad factors
can influence a business's fortunes (regional economic straits, arrival of new competition,
seasonal buying fluctuations, etc.). The small business owner who does not bother to
adequately analyze his or her advertising efforts runs the danger of throwing away a
perfectly good advertising strategy (or retaining a dreadful one) if he or she is unable to
determine whether business upturns or downturns are due to advertising or some other
factor.
The only way to know with any accuracy how your advertising strategy is
working is to ask the consumer, the opinions of who can be gathered in several ways.
Although many of the tracking alternatives are quite specialized, requiring a large budget
or extensive advertising research expertise, even small businesses can take steps to
measure the effectiveness of their advertising strategies. The direct response survey is one
of the most accurate means of measuring the effectiveness of a company's advertising for
the simple reason that it measures actual responses to a business's advertisements. Other
inexpensive options, such as use of redeemable coupons, can also prove helpful in
determining the effectiveness of an advertising campaign.
PROMOTIONAL STRATEGY:
important consumer segments in the cellular industry were the youth segment and the
business class segment. The youth segment was the largest and fastest growing segment
and was therefore targeted most heavily by cellular service providers.
Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional
strategy. By 2004 it emerged the unprecedented leader commanding the largest market
share in the cellular service market. Hutch implemented the celebrity endorsement
strategy partially, relying primarily on its creative advertising for the promotion of its
brand. BSNL, on the other hand, attracted the consumer through its low cost schemes.
Being a state owned player, BSNL could cover rural areas, and this helped it increase its
subscriber base. Reliance was another player that cashed on its innovative promotional
strategies, which included celebrity endorsements and attractive talk time schemes. Idea
relied heavily on its creative media advertising sans celebrities.
RAHMAN TUNE CROSSES AIRTELS EXCLUSIVITY BARRIER:
Cellular service provider Airtel seems to have hit the right note with its new
commercial starring musician A R Rahman. The commercial which is currently on air has
a beat which also doubles up as a ringtone which is ostensibly available only to Airtel
users. But the interesting part is that the ringtone is being flaunted not just by Airtel
customers but by customers of rival service providers like BPL, Orange and Dolphin as
well!
The ringtone which is also the jingle for Airtels TV commercial, is proving to be a potent
advertising tool for the company. It is not very clear what this means for the other cellular
operators. Cellular users have been forwarding the tune to one another, which
according to Mr. Pota, has given Airtel a chance to enter the mind of the user
irrespective of which service he opts for.
Rivals, though seemingly unfazed by the phenomenon, seem to be doing their
own homework on this brand of advertising. While none of them commented on Airtels
strategy and its impact on their own subscriber base, one advertising professional
Page 46
working with a rival service provider opines that the tune is transient and not likely to
have any long term impact as a brand building tool.
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RESEARCH METHODOLOGY
Problem Definition:
Need for the study:
All companies need promotion for their business at some point or another.
Whether its word of mouth or a Television ad more than likely you will find any
number of companies advertising.
The more effective an advertising campaign, the more the customers it draws,
and with greater frequency. Strategies are necessary for any organization in
advertising department of the company as its plays a vital role in todays global
competition. It is of great importance for any company to understand their advertising
strategy. To asses that, the study has been undertaken.
Limitations:
Duration of time is limited for the project work.
The results derived may not be appropriate due to less sample size.
SOURCE OF DATA:
Primary Data:
The primary data is collected through a well-structured questionnaire. The
questionnaires are distributed among 100 people and their views are recorded.
Secondary Data:
Secondary data means the information already available. Secondary data is
collected from newspapers, websites and company journals.
Sampling Techniques
QUESTIONNAIRE:
A Questionnaire is carefully completed logical sequence of question directed to
a define objective. It is the outline of what information is required and the framework
on which the data is built upon. Questionnaire is son commonly used in securing
market information that its preparation deserves utmost skill and care.
FORMS OF QUESTIONS:
OPEN ENDED QUESTIONS:
They are descriptive in nature. Respondents are allowed to answer in their own words.
Such questions buying the actual opinion of the respondent regarding a product
CLOSED ENDED QUESTIONS:
They are not descriptive in nature. They will be given certain choices and the respondents
have to choose choice among them. They make analysis easy but sometimes they restrict the
respondents choices.
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Respondents
Percentage
Friends
34
34%
Advertisement
55
55%
Other source
11
11%
11%
34%
Friends
Advertisement
55%
Other source
INFERENCE:
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Most of the respondents are know about airtel through advertising that is 55%,
through friends 34% and 13% of the respondents known through othersources like if
cusotmers buy nokia they give airtel sim at free of cost,relativies.
Respondents
Percentage
Advertisement
29
29%
Connectivity
10
10%
Schemes
46
46%
Goodwill
20
20%
19%
Advertisement
28%
Connectivity
10%
44%
Schemes
Goodwill
INFERENCE:
46% of the respondents are forced to use schemes provided by airtel, 29% are
more attracted by airtel advertisements to use airtel, 20% of the people believe that airtel
good will, 10% like to use because of connectivity
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3. What is your first choice of cellular service when you want to use mobile phone?
First choice of cellular
Airtel
Vodafone
Idea
Aircel
Reliance
Tata indicom
Docomo
BSNL
Uninior
Respondents
40
15
6
2
8
3
13
10
1
Percentage
40%
15%
6%
2%
8%
3%
13%
10%
1%
MTS
2%
Vodafone
Idea
10% 1% 2%
13%
3%
8%
2%
Aircel
40%
Reliance
Tata indicom
Docomo
15%
Bsnl
6%
Uninior
Mts
INFERENCE:
Most of the people say that when they wont to use mobile phone their first choice of
cellular service is airtel that is 40%,15% of people choice Vodafone,6% use idea, 2% use
aircel,8% use reliance, 3% use tataindicom,13% use docomo,10% use bsnl,1% use
uninor and 2% like to use mts.
4. Which was your previous telecom service?
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Respondents
20
18
12
4
8
4
5
25
2
2
Percentage
20%
18%
12%
4%
8%
4%
5%
25%
2%
2%
Airtel
Vodafone
Idea
2% 2%
25%
5%
4% 8%
Aircel
20%
Reliance
18%
4%
Tata indicom
Docomo
12%
Bsnl
Uninior
Mts
INFERENCE:
Most of the people say that their previous cellular service is BSNL that is
20%,18% of people previous choice Vodafone,12% use idea, 4% use aircel,8% use
reliance, 4% use tataindicom,5% use docomo,20% use airtel, 2% use uninor and 2% like
to use MTS.
Respondents
Percentage
Advertisement
37
37%
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Connectivity
19
19%
Schemes
44
44%
37%
44%
Advertisement
Connectivity
19%
Schemes
INFERENCE:
37% of the people say that advertisements are better than their previous cellular
service, 19% says connectivity good in airtel than previous one and 44% of people says
schemes are more in airtel.
Respondents
Percentage
36
36%
30%-70%
49
49%
15
15%
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15%
36%
49%
INFERENCE:
People says that in their phone book 36% of less than30% airtel users are there,
between 30% to 70% airtel users there in 49% of people phone books and more than
70% of airtel users there in 15% of people phone books.
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Type of advertisements
Respondents
percentage
49
49%
Radio
5%
News paper
27
27%
Magazines
11
11%
Wall printing
8%
prefer of promotion
11%
Television
8%
Radio
49%
News paper
Magazines
27%
Wall printing
5%
INFERENCE:
Respondents
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percentage
airtel
Audio visual
63
63%
19
19%
Audio
13
13%
Audio visual
Print
20%
66%
Audio
INFERENCE:
In airtel people mostly like audio visual advertisements that is 63%, 19%
like print media and 13% are like audio only.
Respondents
Percentage
Sachin Tendulkar
37
37%
Sharukh
22
22%
Kareena
12
12%
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A.R.Rehman
29
29%
Sharukh
37%
Kareena
12%
A.R.Rehman
22%
INFERENCE:
37% of people mostly like Sachin Tendulkar adds in airtel, 22% like sharukh,
29% are like A.R. Rehman and 12% of people like kareena.
Respondents
Percentage
YES
58
58%
NO
11
11%
Cant say
28
28%
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29%
60%
11%
YES
NO
Cant say
INFERENCE:
58% of people are enjoyed schemas offered by airtel,12% of people are not
take benefits offered by airtel and 28%cant say about that.
Respondents
Percentage
NOKIA+AIRTEL
46
46%
AIRTEL MAGIC
21
21%
POSTPAID SERVICES
9%
AIRTEL Broadband
22
22%
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22%
47%
9%
AIRTEL MAGIC
POSTPAID SERVICES
AIRTEL Broadband
21%
INFERENCE:
The combination of nokia and airtel is like most of the people that 46%,
airtel magic like 21%, postpaid services like 9% and 22% like airtel broadband.
Respondents
Percentage
Yes
39
39%
No
61
61%
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participate in contests
39%
Yes
No
61%
INFERENCE:
Most of the people are not to participate in contests offered by airtel that
is 61% and 39 of the people are like to participate in contests offered by airtel.
Respondents
Percentage
16
16%
More validity
11
11%
Both
73
73%
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16%
More validity
Both
73%
INFERENCE:
Most of the people like to use more talk time and more validity recharge
options that 73%, 16% they like to use more validity recharge options and 11% like to
use more talk time recharge options.
4. 16% of respondents like more talk time and 11% like more validity.73% of
respondents like both.
5. 46% of the respondents are forced to use schemes provided by airtel,
29% are more attracted by airtel advertisements to use airtel,20% of
the people believe that airtel good will,10% like to use because of
connectivity
6. First choice of cellular service is airtel that is 40%,15% of people
choice Vodafone,6% use idea, 2% use aircel,8% use reliance, 3% use
tataindicom,13% use
7. 37% of the people say that advertisements are better than their previous cellular
service, 19% says connectivity good in airtel than previous one and 44% of
people says schemes are more in airtel.
8. 49% of respondents are like advertisement through television in telecom service,
27% of the people like newspapers adds,11% are like magazines,8% are like wall
printings and 5% are like radio.
9.
In airtel people mostly like audio visual advertisements that is 63%, 19% like
print media and 13% are like audio only.
10. Airtel is most concerned about customers, followed by Vodafone, Idea, BSNL,
RECOMONDATIONS:
1. AIRTEL is successful in grabbing the highest market share in India, but there are
still some recommendations from my study point of view is that AIRTEL have
to increase their advertisements through print media.
2. AIRTEL not providing more talk time and more validity recharge options. I
recommend that they have to provide that type of recharge options.
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3. People are showing more interest to buy nokia+airtel combination. I suggest that
Airtel have to concentrate on this combination.
4. The company is not concentrating on other types of advertising media.
5. Network should be expanding to rural villages.
6. The company should conduct road shows so as to get awareness in the public
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CONCLUSION:
The conclusion of my study is that AIRTELs Advertising has a major impact on its
users. People like its schemes very much .AIRTEL had created a very good image on the
mind of the new users of cellular service. AIRTEL has adopted a very good strategy by
providing a new connection with NOKIA who is market leader in mobile set, many new
users buy Nokia sets and they get a free connection of AIRTEL. AIRTEL is successful in
capturing the highest market share by adopting Celebrity Endorsement Strategy. A.R.
Rehmaans tune for AIRTEL worked as free advertising for AIRTEL as another service
user uses it too. Other celebrities like Shahrukh Khan (Bollywood) and Sachin Tendulkar
(Cricket) has also contributed very much in AIRTEL.
Everything in this world is made to utilize properly but it should be reach at the proper
person or to the proper utilized areas. Otherwise the value added to those things became
in vein.
Thus promotion role plays a very important role in achieving the objectives of a
company. Un doubly, value utility is created by the manufacture of product or service but
time and place utilities are created by marketing role.
The various finding and befitting recommendation have been made to increase the market
share of each product (postpaid, prepaid) of Airtel thereby increasing the market share of
Airtel as a whole. Various facts and data have been enclosed for better perusal and
various graphs have been provided for better comprehension.
Sales Promotion techniques yield results that many other marketing communication
elements cannot achieve.
Sales promotion that is used in with the overall long-turn communication strategy of the
brand is said to use strategically. A promotion should not be used for the sole purpose of
altering sales in the short run.
Sales promotion is used as a very strategic tool to introduce a new product. Although
advertising plays a large role towards creating awareness and attitude information, sales
promotion used to make new product launch easier and more effective.
Page 65
BIBLIOGRAPHY
WEBSITES:
o www.google.co.in
o www.airtel.com
NEWSPAPERS:
o Times of India
o The Hindu
S.NO Title of book
Author
Edition
Publishers
Dr.S.L.Varshney
Third
Sulthan Chand
and sons
Thirteenth
Pearson
Marketing Management
Dr.R.L.Guptha
Marketing Management
BOOKS:
Page 66
APPENDIX
QUESTIONNAIRE
A STUDY ON ADVERTISING STRATEGY OF BHARATI AIRTEL, HYDRABAD
Age:
Occupation:
Income/month:
B) Advertisements
B) Connectivity
C) Schemes
D) Goodwill
What is your first choice of cellular service when you want to use mobile phone?
Airtel
C) Other Sources
[ ]
Vodafone
[ ]
Idea
[ ]
Aircel
[ ]
Reliance [ ]
Tata indicom
[ ]
Docomo [ ]
BSNL
[ ]
Uninor
MTS
[ ]
Idea
Aircel
[ ]
[ ]
Vodafone
[ ]
[ ]
Page 67
[ ]
Reliance [
[ ]
Uninor
5
]
[ ]
MTS
[ ]
B) Connectivity
B) 30% - 70%
C) Schemes
C) More than 70%
C) News Paper
D) Magazines
BSNL
Docomo [ ]
[ ]
Tata indicom
B) Print
C) Audio
B) Sharukh
C) Kareena
D)A. R. Rehman
B) NO
C) CANT SAY
B) NO
B) More validity
Page 68
C) Both