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advertising impact airtel & vodafone

advertising impact airtel & vodafone

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05/30/2013

PROJECT REPORT ON

“THE IMPACT OF ADVERTISING ON BUYER BEHAVIOUR: - A STUDY ON AIRTEL V/S VODAFONE”

MASTERS OF BUSINESS ADMINISTRATION

(2008-2010)

Submitted By: DEEPIKA VERMA EnrolNo.1111563908 MBA (2008-2010)

Submitted to:
NORTHERN INDIA BUSINESS SCHOOL (Affiliated from GGSIP University)

FC-26, Shastri park, new delhi-53

INDEX
S,NO 1. 2. 3. 4. 5. 6. 7. CONTENTS Objectives of the study PAGE NO. 2 3 7 9 27 28 29

• Literature Review • Research methodology • Data analysis and Interpretations • conclusions • References • Questionnaire

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OBJECTIVE
1. A study on the effectiveness of recent advertisement campaign of Vodafone & Airtel. 2. To find out which telecom company have good advertising and what type of advertising buyers like most. 3. To know the role of advertisements on the buying behavior of the customer. 4. To know which telecommunication has creative advertising. 5. To know the advertisement by Airtel & Vodafone catch buyers attention or not. 6. To study customer buying behavior and factors which influence the purchase decision process

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INTRODUCTION
WHAT IS ADVERTISING Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement. Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising. Advertising also has a history of being considered a one-way form of marketing communication where the message receiver (i.e., target market) is not in position to immediately respond to the message (e.g., seek more information). This too is changing. For example, in the next few years technologies will be readily available to enable a television viewer to click a button to request more details on a product seen on their favorite TV program. In fact, it is expected that over the next 10-20 years advertising will move away from a one-way communication model and become one that is highly interactive. Another characteristic that may change as advertising evolves is the view that advertising does not stimulate immediate demand for the product advertised. That is, customers cannot quickly purchase a product they see advertised. But as more media outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulate demand will improve.

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IMPORTANCE OF ADVERTISING
Spending on advertising is huge. One often quoted statistic by market research firm Zenith Optimedia estimates that worldwide spending on advertising exceeds (US) $400 billion. This level of spending supports thousands of companies and millions of jobs. In fact, in many countries most media outlets, such as television, radio and newspapers, would not be in business without revenue generated through the sale of advertising. While worldwide advertising is an important contributor to economic growth, individual marketing organizations differ on the role advertising plays. For some organizations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team. For some smaller companies advertising may consist of occasional advertisement and on a very small scale, such as placing small ads in the classified section of a local newspaper. But most organizations, large and small, that rely on marketing to create customer interest are engaged in consistent use of advertising to help meet marketing objectives. This includes regularly developing advertising campaigns, which involve a series of decisions for planning, creating, delivering and evaluating an advertising effort. We will cover advertising campaigns in greater detail in our next tutorial.

MANAGING ADVERTISING DECISIONS:
Delivering an effective marketing message through advertising requires many different decisions as the marketer develops their advertising campaign. For small campaigns, that involve little creative effort, one or a few people may handle the bulk of the work. In fact, the Internet has made do-it-yourself advertising an easy to manage process and has especially empowered small businesses to manage their advertising decisions. As we will see, not only can small firms handle the creation and placement of advertisements that appear on the Internet, new services have even made it possible for a single person to create advertisements that run on local television. For instance, a company called SpotRunner allows users to select from a list of high-quality television ads that can be customized and then placed within local cable television programming. 5

For larger campaigns the skills needed to make sound advertising decisions can be quite varied and may not be easily handled by a single person. While larger companies manage some advertising activities within the company, they are more likely to rely on the assistance of advertising professionals, such as those found at advertising agencies, to help bring their advertising campaign to market.

TYPES OF ADVERTISING:
If you ask most people what is meant by “type” of advertising, invariably they will respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.). But in marketing, type of advertising refers to the primary “focus” of the message being sent and falls into one of the following four categories:

PRODUCT-ORIENTED ADVERTISING: Information most advertising spending is directed toward the promotion of a specific
good, service or idea, what we have collectively labeled as an organization’s product. In most cases the goal of product advertising is to clearly promote a specific product to a targeted audience. Marketers can accomplish this in several ways from a low-key approach that simply provides basic about a product (informative advertising) to blatant appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct comparisons between the marketer’s product and its competitor’s offerings (comparative advertising). However, sometimes marketers intentionally produce product advertising where the target audience cannot readily see a connection to a specific product. Marketers of new products may follow this “teaser” approach in advance of a new product introduction to prepare the market for the product. For instance, one week before the launch of a new product a marketer may air a television advertisement proclaiming “After next week the world will never be the same” but do so without any mention of a product or even the company behind the ad. The goal is to create curiosity in the market and interest when the product is launched.

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IMAGE ADVERTISING:
Image advertising is undertaken primarily to enhance an organization’s perceived importance to a target market. Image advertising does not focus on specific products as much as it presents what an organization has to offer. In these types of ads, if products are mentioned it is within the context of “what we do” rather than a message touting the benefits of a specific product. Image advertising is often used in situations where an organization needs to educate the targeted audience on some issue. For instance, image advertising may be used in situations where a merger has occurred between two companies and the newly formed company has taken on a new name, or if a company has received recent negative publicity and the company wants to let the market know that they are about much more than this one issue.

ADVOCACY ADVERTISING:
Organizations also use advertising to send a message intended to influence a targeted audience. In most cases there is an underlying benefit sought by an organization when they engage in advocacy advertising. For instance, an organization may take a stand on a political issue which they feel could negatively impact the organization and will target advertisements to voice their position on the issue.

PUBLIC SERVICE ADVERTISING:
In some countries, not-for-profit organizations are permitted to run advertisements through certain media outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the “greater good” of society. For instance, ads directed at social causes, such as teen-age smoking, illegal drug use and mental illness may run on television, radio and other media without cost to organizations sponsoring the advertisement.

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Advertisement by VODAFONE HAPPY TO HELP

Latest advertisement in IPL- season 3

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CATEGORY: TV, Impressive Ad, Airtel, India, Professional, IPL 2010, Telecom, Value Added Services

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RESEARCH METHODOLOGY
The research methodology that I undertook for the purpose of this study is enumerated belowPRIMARY DATA COLLECTION: This consisted questionnaire and interaction from various people. A focus group study will be conducted to design the customer survey questionnaire with a sample size of 50 respondents. The survey was conducted in shahdara, Delhi.

Questionnaire: The questionnaire was prepared keeping in line with the objectives of the study. It is a set of definite questions formed to collect the required facts or opinions from others while preparing the questionnaire attention must be given to the number of question, type of questions according of question and the sequence of questionnaire etc. 1. Survey Method: The survey technique is used to secure one or more information from a sample of respondents or informer presenting longer group. The information is collected with the help of a form known as Questionnaire or schedule. 2. Field survey: It is the direct form of investigation involving face to face communication and free feedback of information between the respondents and the interviewers.

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SECONDARY DATA COLLECTION: Sources of secondary data were primarily the Internet, journals, newspaper, annual report, database available in the library, catalogues and presentations. Secondary data are collected by: 1. Internal sources 2. Magazines 3. Internet

The data collected from respondents was processed in following manner.

1. Tabulation: The data collected from respondents through questionnaires and meeting are tabulated arranged gives schematic presentations.

2. Graphical representation: The tabulated data is represented graphically in order to provide easy interpretations.

3. Interpretation:

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It is based upon the tabulation. It gives inference about the issues presented in question and the collected against it. We do believe that we are on the threshold of an exciting new opportunity where we can play a significant role in redefining and reshaping the telecom sector. Given the quality of our parentage and commitment of our team, there are no limit tour growths.

RESEARCH DESIGN: DESCRIPTIVE Descriptive studies are well structured, they tend to be rigid and its approach can not be changed every now and then. Descriptive study can be divided in two categories: (A) Cross sectional (B) Longitudinal Descriptive study are undertaken in many circumstances: 1. When the researcher is interested in knowing the characteristics of certain groups such as age, profession. 2. When the researcher is interested in knowing the proportion of people in given population who have behaved in a particular manner, making projection of certain things.

The objective of this kind of study is to answer the why, who, what, when and how of the subject under consideration. I will be taking descriptive because my research includes the knowing the buying behavior of customer towards advertisement. I will be working on to know how people of

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various age group respond to different advertising or there perception towards advertisement. Also my survey is related to two companies Air Tel and Vodafone.

TOOLS OF DATA COLLECTION: OPEN ENDED: They give the respondents complete freedom to decide the form, length and detail of the answer. Open questions are preferred when the researchers is interested in knowing what is upper most in the mind of respondents. CLOSED ENDED QUESTIONS: This type of questions have only two type of answer, yes or no. true or false etc

SAMPLE UNIT: - Shahdara, Delhi UNIT: The research process was done by interacting with number of customers during the activities performed, which included, markets, cold calling, canopies, etc. SAMPLE DESIGN: It consists of random sampling. DESIGN: SAMPLE SIZE: - 50 people SIZE:

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DATA ANALYSIS AND INTERPRETATION
After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. Different suggestions given by me to the Company after analyzing the views of every respondent are also given in the report. Keeping in mind the objectives of the study, the survey was being done and following interpretation was being drawn.

DEMOGARPHIC FEATURES OF REPONDENTS
1. Sex ratio of the respondents
S.NO. A B PARTICULARS MALE FEMALE NUMBER 39 11 %AGE 78% 22%

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90% 80% 70% 60% 50% 40% 30% 20% 10% 0% male female

INTERPRETATION: The graphical representation of the table shows that out of 50 respondents 39 were male and 11 were female.

2.
S.NO. A B C D

AGE GROUP OF RESPONDENTS

PARTICULARS 15-25 25-35 35-45 45 above

NUMBER 21 18 6 5

%AGE 42% 36% 12% 10%

16

45 40 35 30 25 20 15 10 5 0 %age

15-25 25-35 35-45 45 above

INTERPRETATION: The graphical representation of the table shows that out of total respondents 42% were of age 15-25, 36% 25-35, 12% 35-45, and rest were above 45.

3.
S.NO. A B C D

LITERACY RATE AMONG THE RESPONDENTS

PARTICULARS MATRICULATE INTERMEDIATE GRADUATION POST-GRADUATION

NUMBER 8 17 19 6

%AGE 16 34 38 12

17

40 35 30 25 20 15 10 5 0 %age matric intermediate graduate P.G

INTERPRETATION: The graphical representation of the table shows that out of total respondents 8 were matriculate,17 were intermediate,19graduateand rest 6 were postgraduate.

4. Who is your current service provider?
S.NO. A B C PARTICULARS AIRTEL VODAFONE OTHERS NUMBER 14 25 11 %AGE 28 50 22

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60 50 40 30 20 10 0 %AGE AIRTEL VODAFONE OTHERS

INTERPRETATION: The 14 person were used Air Tel and 25 person were used vodaphone and 11 were used other.

5. For how long you are using this mobile connection?
AIRTEL S.NO. A B C PARTICULARS Less than 6 months 6 to 12 months Above 12 months NUMBER 2 3 9 %AGE 14% 21% 65%

19

70% 60% 50% 40% 30% 20% 10% 0% less than 6 12-Jun above 12

INTERPRETATION :Two person were used since six month and three were used since twelve months and nine were used since two year.

VODAFONE

S.NO. A B C

PARTICULARS Less than 6 months 6 to 12 months Above 12 months

NUMBER 1 3 21

%AGE 4% 12% 84%

20

100 80 60 40 20 0 %age less than 6 12-Jun above 12

INTERPRETATION: The one person were used since six months and three were used since one year and twenty were used since two year

OTHERS

S.NO. A B C

PARTICULARS Less than 6 months 6 to 12 months Above 12 months

NUMBER 1 2 8

%AGE 9% 18% 73%

21

80 70 60 50 40 30 20 10 0 %age INTERPRETATION: The one person was used since six months and two were used since one year and eight were used since two year. less than 6 12-Jun above 12

6. What was the reason for choosing this mobile connection?

AIRTEL S.NO. A B C D PARTICULARS Recommended by friends and relative Recommended by retailer Brand image Advertisement NUMBER 5 2 1 6 %AGE 36% 14% 7% 43% 22

50 45 40 35 30 25 20 15 10 5 0 %age

by frnd&rltv by retailer brand image advertise

INTREPRETATION: Five were recommended by friends and relative and two were by retailer and one was by brand image and six were by advertisement.

VODAFONE S.NO. A B C D PARTICULARS Recommended by friends and relative Recommended by retailer Brand image Advertisement NUMBER 6 2 7 10 %AGE 24% 8% 28% 40%

23

50 40 by frnd &rltv 30 20 10 0 by rtlr brnd im g advrtisem nt

INTREPRETATION: Six were recommended by friends and relative and two were by retailer and seven were by brand image and ten were by advertisement.

OTHERS S.NO. A B C D PARTICULARS Recommended by friends and relative Recommended by retailer Brand image Advertisement NUMBER 2 2 6 1 %AGE 18 18 55 9

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60 50 40 30 20 10 0 %age by frnd rltv by rtlr brand im g advertisem ent

INTREPRETATION: Two were recommended by friends and relative and two were by retailer and six were by brand image and one was by advertisement.

7. While purchasing a connection does advertisement plays any role?

S.NO. A B

PARTICULARS Yes No

NUMBER 42 8

%AGE 84% 16%

25

100 80 60 40 20 0 %age yes no Colum n 3

INTERPRETATION: The fourty two person were saying yes and eight were says no.

8. From where you watch the advertisement most?

S.NO. A B C D Television Radio Newspaper Magazines

PARTICULARS

NUMBER 31 0 11 8

%AGE 62% 0% 22% 16%

26

70 60 50 40 30 20 10 0 %age Television Radio New spaper m agazines

INTERPRETATION: The mostly people sees advertisement in the television.

9. Which telecommunication has good advertisements?

S.NO. A B C Air Tel Vodafone Any other

PARTICULARS

NUMBER 21 24 5

%AGE 42 48 10

27

60 50 40 30 20 10 0 %AGE AIRTEL VODAFONE ANYOTHER

INTERPRETATION: mostly Vodafone have good advertisement.

10. How well advertisements of the Air Tel catch your attention?

S.NO. A B C D Very well

PARTICULARS Somewhat well Undecided Not at all

NUMBER 22 12 6 10

%AGE 44 24 12 20

28

50 40 30 20 10 0 %age very well somewhat well undecided not at all

INTERPRETATION: The 22 person says very well and 12 person says some what well and 6 were undecided and 10 were says no.

11. How well did the advertisement of Vodafone catch your attention?
S.NO. A B C D Very well Somewhat well Undecided Not at all PARTICULARS NUMBER 26 10 6 8 %AGE 52 20 12 16

29

60 50 40 30 20 10 0 very well somewhatwll undecided not at all

INTERPRETATION: The 26 person says very well and 10 person says some what well and 6 were undecided and 8 were says no.

12. Do you think that advertisement made by company informs you about there new products?
S.NO. A B C YES NO UNDECIDED PARTICULARS NUMBER 34 12 4 %AGE 68 24 8

30

80 70 60 50 40 30 20 10 0 %AGE YES NO UNDECIDED

INTERPRETATION: The 34 person says yes and 12 person says no and 4 person were no response.

13. Based on advertisements made by company, would you like to go for more connection for you or your family in future?
S.NO. A B C YES NO UNDECIDED PARTICULARS NUMBER 38 7 5 %AGE 76 14 10

31

80 70 60 50 40 30 20 10 0 yes no undecided

INTERPRETATION: The 38 person says yes and 7 person says no and 5 person were no response.

14. Do you collect any information search before making purchase?
S.NO. A B PARTICULARS Yes No NUMBER 42 8 %AGE 84% 16%

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NUMBER

16 % 84 %

A Yes B No

INTERPRETATION: The fourty two person were saying yes and eight were says no.

15. If yes, which sources are used?
S.NO. A B C D E F
  

PARTICULARS Operators references Dealers Advertisement Magazines Reference from friends and relatives

NUMBER 5 8 25 4 6 2

%AGE 10% 16% 50% 8% 12% 4% 33

Any other

NUMBER

A q Operators references Bq Dealers

12 % 8%

4%

10 %

C q Advertisement D Magazines

16 %
E Reference from friends and relatives

50 %

F q Any other

16 .Which of these types of Airtel advertisement attracts you while purchasing any connection?
S.NO. A B C D
2. 3. 1.

PARTICULARS Good Network ads Discount scheme ads Value added services ads Celebrity used ads

NUMBER 8 6 10 26

%AGE 16 12 20 52

34

NUMBER Aq Good Network ads

B ads

Discount scheme

16 % 52 % 20 %

Cq Value added services ads

12%
Dq Celebrity used ads

INTERPRETATION: The twenty six person were saying they attract by celebrity used in advertisement, and Ten by value added services advertisement.

17. Which of these types of Vodafone advertisement attracts you while purchasing any connection.
S.NO. A B C PARTICULARS Good Network ads Discount scheme ads Value added services (zoo zoo) ads NUMBER 2 6 42 %AGE 4 12 84

35

NUMBER

4%

A ads

Good Network

B Discount scheme ads 12% C Value added services (zoo zoo) ads

84 %

NTERPRETATION: The fourty two person were saying they attract by value added services advertisement (ZOO ZOO)

LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:-

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1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some retailers/whole sellers refuse to cooperate with the queries. 5. Some retailers/wholesalers gave biased or incomplete information regarding the study. 6. Lack of proper information and experience due to short period of time. 7. Some retailers did not answer all the questions or do not have time to answer.

CONCLUSIONS
1. People like to watch advertisement on television mostly. 2. Respondents like to purchase new mobile connection based on advertisements. 3. Maximum respondents were in favor of that, Vodafone’s advertising is better than other companies. 4. Maximum number of respondents were in favor of that, they would like to purchase more connection of the company with good advertisement policy. 5.

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BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in details the following Books, Magazines/Journals and Web Sites have been referred. All the material detailed below provides effective help and a guiding layout while designing this text report. Books: Principles of Marketing –Philip Kotler & Kevin Keller edi. 12 38

Market Research – D.D. Sharma Research Methodology – C.R. Kothari Websites: www.Airtelworld.com www.google.com www.india.com www.Vodafone.in

QUESTIONNAIRE
Dear Sir/Madam I am the student of MBA-4th Semester at Northern India Engineering College doing a project “THE IMPACT OF ADVERTISING ON BUYER BEHAVIOUR: - A STUDY ON AIRTEL V/S VODAFONE” Please co-operate to fill this questionnaire. 1. Name _________________________________________ 2. Sex: (a) Male (b) Female

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3. Age:

(a) 15-25 (c) 35-45

(b) 25-35 (d) Above 45 (b) Intermediate (d) Postgraduate

4. Education:

(a) Matriculate (C) Graduation

5. Who is your current service provider? a) Airtel b) Vodafone c) Any other

6. For how long you are using this mobile connection? a) Less than 6 months. b) 6 to 12 months. c) Above 12 months.

7. What were the reasons for choosing this mobile connection? a) Recommended by friends or relatives. b) Recommended by retailers. c) Brand image d) Advertisement 8. While purchasing a connection advertising plays any role a) Yes b) No

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9. from where you watch the advertisement most a) Television b) Radio c) Newspaper d) Magazines 10. Which telecommunication has creative advertising? a) Air Tel b) Vodafone c) Any other 11. How well did advertisement of the AirTel catch your attention? a) Very well b) Somewhat well C) Undecided d) Not at all. 12. How well did the advertisement of the Vodafone catch your attention? a) Very well b) Somewhat well C) undecided d) Not at all 13. Do you think that advertisement made by company informs you about there products? .a) Yes b) No C) Undecided 14. Do you collect any information search before making purchase? Yes 15. If yes, which sources are used? 41 No

a) Magazines b) Dealers c) Operators references d) advertisement e) Reference from friends and relatives f) Any other 16. Which of these types of Airtel connection? a) Good Network ads b) Discount scheme ads c) Value added services ads d) Celebrity used ads 17. Which of these types of Vodafone advertisement attracts you while purchasing any connection? a) Good Network ads b) Discount scheme ads c) Value added services (Zoo Zoos) ads “Thanks for your valuable time and co-operation” advertisement attracts you while purchasing any

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