PROJECT REPORT

ON

ADVERTISING IN INDIAN

TELECOM INDUSTRY & ITS

IMPACT ON CUSTOMERS

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CHP 1- INTRODUCTION OF

TELECOMM INDUSTRY

TELECOMMUNICATION INDUSTRY OVERVIEW

Telecommunication is the transmission of messages over significant

distances for the purpose of communication. In the modern age of

electricity, telecommunications has involved the use of electric means

such as the telegraph and telephone, the use of microwave

communications and the use of fiber optics.

The telecom industry plays an important role in the world economy

Approximately 20% of the world population has access to the

Internet. The telecom industry is vast and offers a wide range of

career opportunities on both the hardware and software fronts. These

prospects include functional jobs in mobile telephony, internet

protocol media systems, wireless communications, GSM, GPRS and

CDMA technology, VoIP, data networks and optical networks

amongst others.

The global leaders in the field are companies like AT&T, Vodafone,

Verizon, SBC Communications and Qwest Communications, who are

all trying to take the advantage of the industry’s spiraling growth. The

focus of telecom companies going forward is likely to be on

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leveraging more sophisticated telecommunication platforms like

broadband technologies, LAN-WAN inter networking, optical

networking, voice over Internet protocol and wireless data service etc.

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TELECOM SUBSCRIBER BASE IN INDIA

Indian telecommunication Industry is one of the fastest growing

telecom market in the world. The mobile sector has grown from

around 10 million subscribers in 2002 to reach 150 million by early

2007 registering an average growth of over 90%. The two major

reasons that have fuelled this growth are low tariffs coupled with

falling handset prices.

Surprisingly, CDMA market has increased it market share up to 30%

thanks to Reliance Communication. However, across the globe,

CDMA has been losing out numbers to popular GSM technology,

contrary to the scenario in India.

The other reason that has tremendously helped the telecom Industry is

the regulatory changes and reforms that have been pushed for last 10

years by successive Indian governments. According to Telecom

Regulatory Authority of India (TRAI) the rate of market expansion

would increase with further regulatory and structural reforms. Even

though the fixed line market share has been dropping consistently, the

overall (fixed and mobile) subscribers have risen to more than 200

million by first quarter of 2007.

The telecom reforms have allowed the foreign telecommunication

companies to enter Indian market which has still got huge potential.

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International telecom companies like Vodafone have made entry into

Indian market in a big way.

Currently the Indian Telecommunication market is valued at around

$100 billion (Rupees 400,000 crore). Two telecom players dominate

this market - Bharti Airtel with 27% market share and Reliance

Communication with 20% along with other players like BSNL

(Bharat Sanchar Nigam Limited).

The Ministry of Communications and Information Technology

(MCIT) is has very aggressive plans to increase the pace of growth,

targeting 500 million telephone subscribers by the end of 2010

ADVERTISING- AN OVERVIEW

The word ‘Advertising’ has its origin from a Latin word ‘Adventure’

which means to turn to. The dictionary meaning of the word is ‘to

announce publicity or to give public concerned to a specific thing

which has been announced by the advertiser publicity in order to

inform and influence them with the ideas which the advertisement

carries. In business world the terms in mainly used with reference to

selling the product of the concern. 

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SCOPE OF TELECOM INDUSTRY

The telecom industry is growing at a great pace and the growth rate is

expected to double with every passing year. There are many new

developments in the telecomm sector, including the ingress of 3G

technology that the Indian market is witnessing at present.

INVESTMENT AND GROWTH

In 2005-2006, the telecom industry witnessed a growth of 21% with a

total revenue of Rs. 86,720 crores, and the total investment rising to

Rs. 2,00,660 crores. It is projected that the telecom industry will be

enjoying over 150% growth in the next 4-6 years. The growth also

requires a huge investment by the players in the sector. Bharti Airtel

is planning to invest about $8 billion by the year2010.

Liberalization policy and some socio-economic factors are mainly

responsible for the immense growth in the sales volumes. The

lifestyle of the people has changed. They need to be connected to the

other people all the time. With the lowering down of the tariffs the

affordability of the mobile phones has increased. The finance sector

has also come up with loans for handsets on 0% interest. Mobile

services providers are also expanding their coverage area by installing

more and more antennas and other equipment

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The telecom sector in the country has already adopted the latest

technological advancements to cater to the demands of the growing

market. Telecom Expo India, Convergence India, VAS India and

IPTV India being organized year to year are all efforts in this

direction.

Budget 2007 has brought disappointment to the telecom sector.

Mobile service providers have been asked to cut down their roaming

rentals as well as their long distance and international call tariffs. This

has led to discontent on the part of the service providers. However,

Telecom Regulatory Authority of India (TRAI) is of the opinion that

this will lead to increased use of roaming, which will ultimately lead

to more revenue generation. Moreover, with cheaper handsets and

lesser tariffs, it is expected that by the year 2010 there will be over

500 million subscribers in the Indian telecom market

Also, the telecom industry this year will be focusing more on rural

areas to connect them with the urban areas so that the farmers and the

small-scale industries can have faster access to information related to

weather and market conditions.

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Components and factors responsible behind the growth of

telecommunications industry

Two major factors responsible for the growth of telecommunications

industry are use of modern technology and market competition. One

of the products of modern technologies is optical fibers, which are

being used as a medium of data transmission instead of using coaxial

or twisted pair cables. Optical fibers can carry a high volume of data

and are easier to maintain and install. Use of communication satellites

make this telecommunications industry a booming industry.

The use of mobile network has a crucial role behind the growth of an

improved telecommunications industry. Leading companies are

showing their interest to invest in this telecommunications industry.

Telecommunications industry is going to be a digitized one. Use of

ISDN (Inter Services Digital Network) makes this telecommunication

industry a total digitalized system and eventually enhanced the speed

and quality of digital communication.

The introduction of these advanced technologies makes the

telecommunications industry a competitive one, where a number of

multinational companies have shown their interest to invest in this

industry and consequently the prices are reduced, the quality is also

improved. During the period of 1990, the telecommunication industry

showed a speedy growth in terms of investment and eventually

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increased the competition. The competition between the companies

led to the decline of revenues.

EMPLOYMENT STATUS

With the coming of more and more projects, the telecom industry is

going for high scale recruitments. There is a huge demand for

software engineers, mobile analysts, and hardware engineers for

mobile handsets. Besides, there are ample opportunities for marketing

people whose services are required to capture more and more

customer base.

The new projects, setting up of new service bases, expansion of

coverage areas, network installations, maintenance, etc are providing

more and more employment opportunities in the telecom sector.

PUBLIC AND PRIVATE PLAYERS

MTNL, BSNL, VSNL are the major Public Players, whereas Airtel,

Idea, Hutch, Tata, Reliance, BPL are the leading Private Players in the

country. Some of them are entering foreign markets as well.

MAJOR PLAYERS IN TELECOM INDUSTRY

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TOP FIVE COMPANIES:

The Top five companies, on the basis of ‘Market Share’ as on 31st January,

2010 are:

Bharti Airtel Ltd.

Reliance Communications Ltd.

Vodafone Essar Ltd.

BSNL

Idea Cellular + Spice

CHP 2- THEORY ON ADVERTISING

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ADVERTISING

Advertising is a paid form and hence commercial in nature. This any

sponsored communication designed to influence buyer behaviour

advertising.

Advertising is non-personal. Unlike personal selling, advertising is

done in a non-personal manner through intermediaries or media

whatever the form of advertisement (Spoken, written or visual). It is

directed at a mass audience and not directed at the individual as in

personal selling.

Advertising promotes idea, goods and services. Although most

advertising is designed to help sell goods, it is being used increasingly

to further public interest goals.

Advertising is identifiable with its sponsoring authority and

advertiser. It discloses or identifies the source of opinions and ideas.

Advertising thus is :

1. Impersonal

2. A communication of ideas.

3. Aimed at mass audience

4. By a paying sponsor.

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The two forms of mass communication that are something confused

with advertising are publicity and propaganda. If we eliminate the

elements of the "paying sponsor" (The paid requirement) we would

have the element of publicity left : For publicity is technically

speaking, advertisement without payment. In a similar manner. If we

eliminate the requirement of an "identified sponsor", the resulting

communication is propagandistic.

It is important for us to emphasize that advertising may involve the

communication of ideas or goods of service. We are all aware that

advertising attempts to sell goods and services. But we may overlook

the more important fact that it often sells ideas. Advertising may

persuade with information; it may persuade with emotion: more

frequently, it endeavours to persuade with some mixture of both.

ADVERTISING EFFECTIVENESS

Advertising is an art not a science. Effectiveness of which cannot be

measured with a mathematical or empirical formula some advertisers

argue that advertising efforts go to waste, but every advertiser is

keenly interested in measuring or in evaluation of ad. effectiveness.

Testing for the effectiveness of ad. will lead advertisement testing

must be done either before or after the ad has done in the media. It is

of two types, pretesting which is done before the ad. has been

launched and one is referred to as cost testing which is done before

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the ad. has been launched and one is referred to as cost testing which

is done after launching the advertising campaign. The basic purpose

of advertising effectiveness is to avoid costly mistakes, to predict the

relative strength of alternative strength of alternative advertising

strategies and to increase their efficiency. In measurement of ad.

effectiveness feed back is always useful even if it costs some extra

expenditure to the advertiser.

TYPES OF ADVERTISING

A.Digital advertising

Television advertising

The TV commercial is generally considered the most effective mass-

market advertising format, as is reflected by the high prices TV

networks charge for commercial airtime during popular TV events.

The majority of television commercials feature a song or jingle that

listeners soon relate to the product. Virtual advertisements may be

inserted into regular television programming through computer

graphics .An infomercial is a long-format television commercial,

typically five minutes or longer. The word "infomercial" combining

the words "information" & "commercial". The main objective in an

infomercial is to create an impulse purchase, so that the consumer

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sees the presentation and then immediately buys the product through

the advertised toll-free telephone number or website

Radio advertising

Radio advertising is a form of advertising via the medium of radio.

Radio advertisements are broadcast as radio waves to the air from a

transmitter to an antenna and a thus to a receiving device. s. While

radio has the obvious limitation of being restricted to sound,

proponents of radio advertising often cite this as an advantage.

Online advertising

Online advertising is a form of promotion that uses the Internet and

World Wide Web for the expressed purpose of delivering marketing

messages to attract customers. Examples of online advertising include

contextual ads that appear on search engine results pages, banner ads,

in text ads, Rich Media Ads, Social network advertising, online

classified advertising, advertising networks and e-mail marketing,

including e-mail spam.

B.Physical advertising

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Press advertising

Press advertising describes advertising in a printed medium such as a

newspaper, magazine, or trade journal. A form of press advertising is

classified advertising, which allows private individuals or companies

to purchase a small, narrowly targeted ad for a low fee advertising a

product or service. Another form of press advertising is the Display

Ad, which is a larger ad (can include art) that typically run in an

article section of a newspaper.

Billboard advertising:

Billboards are large structures located in public places which display

advertisements to passing pedestrians and motorists. Mobile

billboards are generally vehicle mounted billboards or digital screens.

These can be on dedicated vehicles built solely for carrying

advertisements along routes preselected by clients, they can also be

specially equipped cargo trucks or, in some cases, large banners

strewn from planes. Mobile displays are used for various situations in

metropolitan areas throughout the world, including: Target

advertising, One-day, and long-term campaigns, Conventions,

Sporting events, Store openings and similar promotional events, and

Big advertisements from smaller companies.

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Street advertising

This type of advertising first came to prominence in the UK by Street

Advertising Services to create outdoor advertising on street furniture

and pavements. the media became an affordable and effective tool for

getting brand messages out into public spaces.

Celebrity branding

This type of advertising focuses upon using celebrity power,

fame, money, popularity to gain recognition for their products and

promote specific stores or products. Advertisers often advertise their

products, for example, when celebrities share their favorite products

or wear clothes by specific brands or designers. Celebrities are often

involved in advertising campaigns such as television or print adverts

to advertise specific or general products.

Sales promotions

Sales promotions are another way to advertise. Sales promotions

include things like contests and games, sweepstakes, product

giveaways, samples coupons, loyalty programs, and discounts. The

ultimate goal of sales promotions is to stimulate potential customers

to action

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ADVERTISING THEORY

Hierarchy of effects model

It clarifies the objectives of an advertising campaign and for each

individual advertisement. The model suggests that there are six steps a

consumer or a business buyer moves through when making a

purchase. The steps are:

1. Awareness:

If most of the target audience is unaware of the object, the

communicator’s task is to build awareness, perhaps just name

recognition, with simple messages repeating the product name.

Consumers must become aware of the brand. Capturing someone’s

attention doesn’t mean they will notice the brand name. Thus, the

brand name needs to be made focal to get consumers to become

aware.

2. Knowledge:

The target audience might have product awareness but not know

much more; hence this stage involves creating brand knowledge.

This is where comprehension of the brand name and what it stands

for become important. What are the brand’s specific appeals, its

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benefits? In what way is it different than competitor’s brands? Who

is the target market? These are the types of questions that must be

answered if consumers are to achieve the step of brand knowledge.

3. Liking:

If target members know the product, how do they feel about it? If

the audience looks unfavourably towards the product to

communicator has to find out why. If the unfavorable view is based

on real problems, a communication campaigns alone cannot do the

job. For product problem it is necessary to first fix the problem and

only then can you communicate its renewed quality.

4. Preference:

The target audience might like the product but not prefer it to

others. In this case, the communicator must try to build consumer

preference by promoting quality, value, performance and other

features. The communicator can check the campaigns success by

measuring audience preference before and after the campaign.

5. Conviction:

A target audience might prefer a particular product but not develop

a conviction about buying it. The communicator’s job is to build

conviction among the target audience.

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6.Purchase:

Finally, some members of the target audience might have conviction

but not quite get around to making the purchase. The

communicator must need these consumers to take the final step,

perhaps by offering the product at a low price, offering a premium.

This is where consumers make a move to actually search out

information or purchase. Advertising cannot induce immediate

behavioural response.

Means-End Theory

This approach suggests that an advertisement should contain a

message or means that leads the consumer to a desired end state.

Leverage Points

It is designed to move the consumer from understanding a product's

benefits to linking those benefits with personal values.

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CHP 3- RESEARCH METHODOLOGY

RESEARCH DESIGN:

The research design is Descriptive studies. Descriptive studies are

well structured, they tend to be rigid and its approach cannot be

changed every now and then.

Descriptive studies are undertaken in many circumstances:

When the researcher is interested in knowing the characteristics

of certain groups such as age, profession.

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 have taken

descriptive because my research includes the knowing the behavior of

customer towards advertisement. I have analyzed how people of

various age groups respond to different advertising or their perception

towards advertisement. Also my survey is related to companies like

Vodafone, Airtel, Reliance communications, BSNL and Idea cellular.

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TYPES OF QUESTIONS:

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

DICHOTOMOUS:

This type of questions have only two type of answer, yes or no. true

or false etc.

MULTIPLE CHOICE QUESTIONS:

In the case of multiple choice question the respondents is offered two

or more choices. The researcher exhausts all the possible choices and

the respondent has to indicate which one is applicable in this case.

The research methodology that I undertook for the purpose of this

study is enumerated below:

PRIMARY RESEARCH:

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 200 respondents.

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SECONDARY RESEARCH:

Sources of secondary data were primarily the Internet, journals,

newspaper, annual report, database available in the library, catalogues

and presentations.

SWOT Analysis Of Indian Telecom Industry

SWOT analysis for telecom industry

STRENGTH

1. Technology is advanced and easy to implement

2. Management tem has prior experience

WEAKNESS

1. High cost infrastructure

2. Low customer retention power

OPPORTUNITY

1. Population

2. Changing population psychograpy

3. Increased penetration level

4. Increasing flow of FDI

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THREATS

1. Government policies- licenses to many foreign operators

2. Increased competition

3. New technology can change the market dynamic

OBJECTIVES OF THE PROJECT

To study the performance of Telecom Industry in India.

To know the impact of advertisements of telecom industry on

customers.

To study the effectiveness and response towards advertisements

provided by

major players.

To analyze the growth in ad volumes of telecom sector.

LIMITATIONS OF THE STUDY

Respondents were reluctant to share their experience accurately.

Unwillingness of respected personnel’s of Telecom Companies

to provide relevant data for my studies.

Time allotted for the project was not sufficient to go for detailed

analysis

of the research problem.

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CHP4- ADVERTISING BY TELECOM

INDUSTRY

KEY FINDINGS:

2007

Telecom sector advertising on TV grew by 61 per cent during 2007

compared to 2006.

Telecommunication Services segment had more than 60 per cent

share of overall Telecom sector advertising on TV.

Telecommunication Services has seen a rise of 108 per cent in TV

advertising, whereas Telecommunication Equipments saw a rise of 17

per cent during 2007 over 2006.

Bharti Airtel Ltd was the number one advertiser under

Telecommunication Services and Nokia Corporation led

Telecommunication Equipments advertising on TV during 2007.

2008

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TV advertising of Telecom sector saw a rise of 99 per cent during

January - August 2008 compared to January - August 2007.

'Telecommunication Services' garnered a high share of Telecom

sector advertising on TV during January - August 2008.

TV advertising of 'Telecommunication Equipments' saw a growth of

45 per cent and that of 'Telecommunication Services' grew by 127 per

cent during January - August 2008.

'Nokia Corporation' leads in advertising of 'Telecommunication

Equipments' and ' Vodafone Essar Ltd' was number one advertisers

for 'Telecommunication Services' on TV during January - August

2008.

'R Madhavan' had the maximum ad volumes of Celebrity

Endorsement of Telecom sector on TV during January - August 2008.

2009

Telecom sector has seen a decline of 16 per cent in its TV ad volumes

during Jan - Mar '09 compared to Jan - Mar '08.

High share of 'telecommunication services' advertising on TV during

Jan-Mar '09.

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'Sony Ericsson (India)' was the top advertisers under

'telecommunication equipments' and 'Bharti Airtel Ltd' leads in

'telecommunication services' advertising on TV during Q1 '09.

'Sony Ericsson W595' and 'Sony Ericsson F305' were top two new

brands advertised under 'telecommunication equipments' on TV

during Q1 '09.

Virgin vGlide Phones (slider) topped the chart of new

'telecommunication services' advertised on TV during Q1 '09.

GROWTH IN ADS VOLUMES OF TELECOM SECTOR

16 per cent drop in telecom sector advertising on TV during first

quarter of 2009 compared to same period in 2008

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TOP FIVE ADVERTISERS UNDER THE TELECOM

SEGMENTS

Top 5 key players of telecom services and equipment on TV during Q1 2009

TELECOMMUNICATION SERVICE

Top advertisers % share

BHARTI AIRTEL LTD 31%

VODAFONE ESSAR LTD 21%

BSNL 12%

TATA TELESERVICE 12%

IDEA CELLULAR LTD 8%

TELECOMMUNICATION EQUIPMENT

Top advertisers % share

SONY ERRICSON 34%

NOKIA CORP. 30%

LG ELECTRONICS 19%

SAMSUNG 9%

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'Bharti Airtel Ltd', 'Vodafone Essar Ltd' and 'Bharat Sanchar

Nigam Ltd' the top three key players of 'telecommunication

services' together accounted for 65 per cent share on TV during

Q1 '09.

During Q1 '09, top three advertiser together contributed for 83

per cent of overall 'telecommunication equipment' TV

advertising share viz. 'Sony Ericsson (India)', 'Nokia

Corporation' and 'LG Electronics India Ltd'.

NEW BRANDS ADVERTISED IN TELECOM

INDUSTRY

Top 10 brands of Telecomm equipment on tv during 2009

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rank new brands

1 SONY ERRICSON W595

2 SONY ERRICSON F305

3 SAMSUNG GURU 1410

4 HTC TOUCH VIVA

5 FORTUNE F-39

6 SAMSUNG WAVE

7 NOKIA

8 SONY ERRICSON

9 HTC TOUCH FLC

10 MOTOROLA AURA

'Sony Ericsson W595 ', 'Sony Ericsson F305' and 'Samsung

Guru 1410' were the top three new 'telecommunication

equipments' advertised on TV during Q1 '09.

Top 10 list of new brands of 'telecommunication equipments'

advertised on TV, comprised of three brands of 'Sony Ericsson'

and two were of 'HTC Corporation' during Q1 '09.

TOP ADVERTISERS WITH CELEBRITY

ENDORSEMENT AD VOLUMES

Top three celebrities endorsing telecom products on TV during the

first quarter of 2009 were 'Deepika Padukone', 'Saif Ali Khan' and

'Kareena Kapoor

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CH-5 FINDINGS AND

INTERPRETATION

The main area of the study is the Advertising in Telecom Industry in

India and its Impact on Customers.The data collected from the

customers were systematically applied and they were presented as

tables under various heading in following pages. They are also

arranged in such a way that a detailed analysis can be made so as to

present suitable interpretation for the same .

Table 1

TABLE SHOWING THE GENDER RATIO OF THE RESPONDENT

GENDER VALUE PERCENTAGE

MALE 118 59%

FEMALE 82 41%

Out of 200 respondents, 118 were male and 82 were female.

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CHART 1

GENDER RATIO

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Table 2

TABLE SHOWING AGE GROUP OF RESPONDENTS

AGE VALUE PERCENTAGE

15-25 64 32%

26-35 60 30%

36-45 56 28%

Above 45 20 10%

Out of 200 respondents, 64 were between the age of 15-25, 60 were between

the age of 26-35, 56 were between the age of 36-45 and 20 were above 45.

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Table 3

EDUCATION QUALIFICATION

EDUCATION VALUE PERCENTAGE

MATRICULATE 28 14%

INTERMEDIATE 40 20%

GRADUATE 72 36%

POSTGRADUATE 60 30%

Out of 200 respondents 28 were matriculate, 40 were intermediate, 72

were graduate and 60 were postgraduate.

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TABLE 4

WHO IS CURRENT SERVICE PROVIDER?

CURRENT SERVICE PROVIDER

VALUE PERCENTAGE

AIRTEL 50 25%

VODAFONE 34 17%

RELIANCE 36 18%

BSNL 26 13%

IDEA 22 11%

OTHER 32 16%

Out of 200 respondents 50 were Airtel, 34 were using Vodafone, 36 were using

Reliance, 26 were using BSNL, 22 were using Idea and 32 were using others

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Table 5

Reasons for choosing this mobile connection?

BUYING FORCE VALUE PERCENTAGE

FRIENDS 76 38%

RETAILERS 24 12%

BRAND IMAGE 16 8%

ADVERTISEMENT 84 42%

Out of 200 respondents 76 were influenced by friends and relatives, 24 were

influenced by retailers, 16 were influenced by brand image and 84 were

influenced by advertisements.

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Table 6

While purchasing a connection advertising plays any role?

ADVERTISING IN PURCHASE

VALUE PERCENTAGE

YES 168 84%

NO 32 16%

Out of 200 respondents 168 agreed that advertisements play a role

in making purchase decision and 32 did not agree on that.

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Table 7

From where do you watch advertisements the most?

SOURCE OF ADVERTISEMENT

VALUE PERCENTAGE

TELEVISION 110 55%

RADIO 6 3%

NEWSPAPER 50 25%

MAGAZINE 14 7%

OTHER 20 10%

Out of 200 respondents 110 replied Television, 6 replied Radio, 50

replied Newspapers, 14 replied Magazines and 20 replied Others.

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Table 8

Which telecommunication company has good advertising?

GOOD ADVERTISING

VALUE PERCENTAGE

AIRTEL 50 25%

VODAFONE 64 32%

RELIANCE 30 15%

BSNL 16 8%

IDEA 40 20%

OTHER 0 0%

Out of 200 respondents 50 liked the advertisements of Airtel, 64 liked

advertisements of Vodafone, 30 liked the advertisements of Reliance, 16 liked

the advertisements of BSNL and 40 liked the advertisements of IDEA.

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Table 9

Do you think that advertisement made by company informs you about their products

INFORMATION IN ADS

VALUE PERCENTAGE

YES 140 70%

NO 48 24%

UNDECIDED 12 6%

Out of 200 respondents 140 were in favor of that advertisements provides information about the products, 48 were not in favor of that and 12 were not able to decide

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TABLE 10

For how long you are using this mobile connection?

TIME PERIOD VALUE PERCENTAGE

LESS THAN 6 MONTHS 22 11%

6 TO 12 MONTHS 56 28%

ABOVE 12 MONTHS 120 61%

Out of 200 respondents 22 were using the current connection for less than 6 months, 56 were using it from 6-12 months and 120 were using it from more than 1 YEAR

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Table 11

Based on advertisements made by company, would you like to go for more connections for you or your family in

future?

ADS FOR REFERENCE

VALUE PERCENTAGE

YES 148 74%

NO 44 22%

UNDECIDED 8 4%

Out of 200 respondents 148 agreed that they would buy connection on the basis of advertisement made by companies, 44 did not agree and 8 were not able to decide

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FINDINGS

74% of the people believes that advertisements play a role while

making purchase decision for new connection. So the companies

should handle the advertising properly and should try to deliver the

information properly.

In telecom industry the most important factor which affects the

purchase decision of the customers is advertisement. Suggestions of

friends and relatives also plays major role in this. So the companies

should take care of the existing customers so that they can be

recommended to others.

55% of the people likes to watch advertisements on television. And

after television people rated newspapers. So the companies should

focus more on television ads and newspaper ads.

32% of the people like Vodafone advertisements more than others.

After that Airtel and Idea comes. So the other companies should try to

make advertisements which can connect to the customers.

74% of the people believe that advertisements provide information

about the products. So the companies should try to deliver all the

information about the plans and offers through advertisements.

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Majority of the people wants to buy the connections for family and

friends on the basis of advertisements. So advertisements should be

given more focus and importance by the telecom companies.

SUGGESTIONS

Information may be communicated to the customers regularly

for better feedback from customers.

The Companies may focus more on Television ads &

Newspapers ads to increase the effectiveness of the ads.

The Advertisements can provide all the relevant information to

the customers which are necessary for them.

The Companies may focus on rural areas while designing

advertisement campaign

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CONCLUSION

The purpose of the study is well achieved . The main area of the study

is to study the Advertising in Indian Telecom Industry and its Impact

on Customers. The project gives us the details on advertising its

importance, managing advertising decisions and types of advertising,

how it helped in the growth in ad volumes of telecom sector, share of

telecom sector advertising, segment wise growth in telecom sector,

share of key players in advertising, new brands advertised in telecom

equipments and service and share of sales promotion in telecom

sector. The real aim of the project is to study the effectiveness and

response towards advertisements provided by major players. The

project tells us how customers are attracted towards the advertisement

of telcomm products and services. It helped us to analyse the growth

in ad volumes of telecom sector.

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ANNEXURE

QUESTIONNAIRE

1. Name _________________________________________

2. Gender:

(a) Male

(b) Female

3. Age:

(a) 15-25

(b) 26-35

(c) 36-45

(d) Above 45

4. Education:

(a) Matriculate

(b) Intermediate

(C) Graduation

(d) Postgraduate

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5. Who is your current service provider?

(a) Airtel

(b) Vodafone

(c) Reliance

(d) BSNL

(e) Idea

(f) 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 do you watch advertisements the most?

(a) Television

(b) Radio

(c) Newspaper

(d) Magazines

(e) Other

10. Which telecommunication company has good advertising?

(a) Airtel

(b) Vodafone

(c) Reliance

(d) BSNL

(e) Idea

(f) other

11. Do you think that advertisement made by company informs you

about their products?

(a) Yes

(b) No

(c) Undecided

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12. Based on advertisements made by company , would you like to

go for more connections for you or your family in future?

(a) Yes.

(b) No.

(c) Undecided.

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BIBLIOGRAPHY

Websites:

www.vodafone.in

www.airtel.in

www.rcom.co.in

www.bsnl.co.in

www.ideacellular.com

www.google.com

Newspapers:

Dainik Bhaskar

Rajasthan Patrika

The Times Of India

Books: Advertising management by Rajeev Batra & John Myers

Advertising and promotion by George & Michal Belch

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