A Project report ON "Advertisement and Sales Promotion with Reference to Bharti Airtel Ltd." BHUBANESWAR A DISSERTATION PROJECT REPORT SUBMITTED FOR PARTIAL FULLFILMENT OF MASTER IN BUSINESS ADMINISTRATION (MBA) 2008-2010 Submitted by Sunaram Majhi Regd. No: 0806258051 1 Guide’s Certificate This is to certify that the Project Report entitled “A Brief Study on Advertisement & Sales Promotion with reference to Airtel in Bhubaneswar” has been prepared in partial fulfillment for the requirement of degree in “Master of Business Administration” by Mr. Sunaram Majhi, Reg. No. : 0806258051 in Session 2008-2010 under my supervision and guidance and recommended that it may be accepted for examination. ( Prof.N.K.Das.) (Faculty in Marketing ) 2 Preface The summer training provides a student with an opportunity to understand in full the real life working environment, which is a bit different form normal theory classes. Our class knowledge attains maturity and perfection through application in the practical field application of management principle in all branches whether personnel, finance, information technology etc result in more sufficient and effective utilization of available resources. Especially marketing being a dynamic in management curriculum is to bridge to gap between theory and application. One learns through practice, management in best learn if the students, handles it systematically, practical training is supposed to serve as a starting point will held the student gain off confidence and a familiarity with the subject. The summer training placement program is an integral part of MBA course in Biju Pattnaik Institute of Information Technology & Management Studies,BBSR. I have done my dissertation project on AIRTEL. My topic of study was “A Brief Study on Advertisement & Sales Promotion” I have no hesitation in saying that this study has given me the confidence to face the real market world. I have tried my best to do honesty and justice to the topic and any weakness and shortcoming is unintentional and is regretted. 3 ACKNOWLEDGEMENT This project report instead of being on individual effort is a collective one where in helps from various quarters especially business and academic ones have been derived. The list of those providing a helping hand is quite comprehensive but it would be pertinent to mention a few who have played a major role in completion and preparation of the project and continue to have a positive influence in my process. First of all I gave sincerely thank to my guide honorable Prof. N.K. Das whose valuable guidance, supervision and co-cooperation enabled me to complete this project. I would like to express my sincere gratitude to Mr. Subhasish Kar Zonal Sales Manager, Sales, Airtel, Bhubaneshwar for allowing me to undergo dissertation project in one of the covered organization. Sunaram Majhi Regd.No.0806258051 4 CONTENTS Guide Certificate Preface Acknowledgement Plan of Study Chapter – 1 Introduction to the Studies 1. Objective of the Study 2. Scope of the Study 3. Methodology to be used 4. Limitations. Chapter – 2 o Introduction of the Organization 1. 2. 3. 4. 5. History of the Organization Group Profile of the Organization Market Status of the Organization Competition of the Organization Organizational Structural Chapter – 3 o A Theoretical aspects of Sales Promotion Chapter – 4 o A Practical aspect of Sales Promotion o Data Analysis and Interpretation o Questionnaire Chapter – 5 Conclusion & Suggestions o Bibliography 5 Chapter – 1 Introduction to the studies 1. 2. 3. 4. Objective of the Study Scope of the Study Methodology to be used Limitations 6 OBJECTIVE OF THE STUDY Each and every journey has its own destination. Without destination there is no means of journey. Similarly, every research has some prefixed objectives every step taken by the researcher during research period is always directly or towards the objective. The reason and purpose of this study is to find the gap between the theoretical and practical aspects of business management. The study offers the opportunity to the student of the management to develop the required skills and sight for making the best use of experience and judgment to practical life. This study also completes the essentials formalities of our MBA degree. Therefore, as far as my topic “A Brief Study on Advertisement & Sales Promotion” is concern the major research objective can be cited as follows:1. For the partial fulfillment of Master of Business Administration (MBA) program as realized by the Biju Pattnaik Institute of InformationTechnology & Management Studies,BBSR. 2. To care and contact with the working of an organization to see the different types of marketing activities. The main emphasis is one the sales promotional aspect of the organization. 3. Whatever the subject taught in the classroom of M.B.A. course that is completely theoretical so during the training period we compare how the marketing research (sales) activities (practical) of our organization with the theories. 4. To identity the potential customers of cellular. 5. To identify and analyses the service provided by competing cellular companies. 6. To identify the customers on the basis or area, age, income group and occupation who are willing to avail mobile services of Airtel. 7 SCOPE OF THE STUDY I had done my project training in Airtel at Bhubaneshwar. This topic given to me was regarding sales promotion activities of the company. I collected information regarding various aspect of Airtel i.e. Channel, easy recharge etc. the study conducted by me has helped in enhancing my skill and thinking power. The main scope of study is to ascertain the various methods to increase the sales volume of the concern. The methods include regular information to the buyers creating a brand position one of the important aspects of this study is also to increase the market segment for the product. As a researcher, I had meet and try to disclose the expectation the retailers as well as of the consumers with special reference to “AIRTEL”. As a researcher, during this training period I had co-related my theoretical aspects into practical one. After knowing the actual problems, now I am able to solve it in effective and efficient manner. METHODOLOGY TO BE USED “Marketing research is the systematic design, collection, analysts and reporting of data and findings relevant to a specific marketing situation facing the company”. During the training period, I used the following method: a. Personal Discussion : Lot of information on the subject matter was gathered form the management and sales executive. 8 b. Documentary Observation : I have collected primary data during the course of doing my project works form the book, journals published and non published articles relevant records of the company. c. I have collected secondary data during my project works from the various distributors, stockiest and shops BHUBANESWAR towns. Conducting field and survey by taking to the retailers who is using to dealt with the products of mobile company and the methodology used in the survey was personal observation and interview with the retailers with the help of questionnaire. Research Design : Research design is a framework or blueprint for conducting the marketing research project IT details the procedure necessary for obtaining the information needed to structure and/or to solve marketing research problems. The two general types of research are: 1. Exploratory 2. Conclusive The objective of exploratory research is to provide insights into and understanding of the confronting the researcher, the objective of conclusive research is to test specific hypothesis and examine specific relationships. There are two general type of conclusive research : 1. Descriptive 2. Causal The objective of descriptive research design is to describe something usually market characteristics or functions. Sources of data : Data requires for the research work can be made available from the different sources, they could be classified in to two groups. 9 1. Primary Sources : Include living person, my survey primary sources constituted of the retailers who used to deal with different products of various mobile companies. 2. Secondary Sources : Include already collected data whether published, unpublished, such as official database, magazines and journals. Sampling : When a small group is taken as the representative of the whole, the study sampling study sampling allows us to concentrate our attention upon to ensure tie information collected from them is accurate. When the whole area or population of person is contacted the method is known as census method. In my survey it was census method because I was an assigned a job to do survey in BHUBANESWAR area and to lake feedback of all those person who are using distributors and dealer of cellular industry. Sample Size : My sample size is of 200 samples. Data collection tools : The collection of data required though a. Questionnaire b. Personal Interview c. Observation Questionnaire : It is piece of paper with a set of questions related to the purpose of research, which is presented to the respondent. The questionnaire used in my survey had close-ended questions. Personal Interview : It is a process of communications or interaction in which generally two are involved and it was a face-to-face interaction. 10 In my survey the questionnaire was presented before the respondent and response was thus collected and it was face-to-face interaction. Observation method : When we look at the phenomenon with some objective it is, called observation. It is the important techniques of data collection. This method was a SQ accompanying survey to know the exact position or responses of the respondents. Time span of the fieldwork : The fieldwork carried out in a span of 45 days. Limitation of the Study As I was asked to carry on my vacation training, I found the following limitation during my training periods. So I could not collect every information regarding my topic. a. Shortage of time factor was one of the biggest constraints. b. Most stress was given on the primary data, as it was difficult to collect secondary data from organization and distributors. c. The biased view of the respondent. d. For the lack of my proper knowledge of project working, might have fallen short of giving best. 11 Chapter – 2 company profile 1. 2. 3. 4. 5. History of the Organization Group profile of the Organization Market status of the Organization Competition of the Organization Organizational Structure 12 HISTORY OF THE ORGANIZATION 1995 Bharti tele-venture limited incorporated on July 7, 1995. Bharti Cellular launched mobile services ‘Airtel’ in Delhi. 1996 Bharti Telnet launched mobile services in Himachal Pardesh. 1997 Bharti Telnet obtained a license for providing fixed - line service in Madhya Pradesh circle. Bharti Telecom formed a joint venture, Bharti BT Internet for providing Internet Services. 1998 Bharti Telecom formed a joint venture, Bharti BT Internet for providing Internet! Services. First Indian private fixed line services launched in Indore in the Madhya Pradesh circle on June 4, 1998 by Bharti Telnet thereby ending fixed- line services monopoly of Dot (now BSNL). 1999 War burgs Pincus (through its investment company Brentwood Investment Holdings Limited) acquire interest in Bharti Tele- ventures. Bharti Tele-ventures acquired an effective equity interest in Bharti Mobile (formerly JT Mobiles), the mobile services provider are in Karnataka and Andhra Pardesh circles. 2000 13 New York Life Insurance Fund, or NYLIF, acquired an equity in Bharti Cellular. Bharti Tele- Ventures acquired an effective equity interest in Bharti Mobinet (formerly Sky cell Communications), the mobile services provider in Chennai. Bharti Tele-ventures acquired equity interest of Telecom Italia and Bharti Telecom in Bharti Telnet thereby making Bharti Telnet a 100% subsidiary of Bharti Televentures. SingTel (through its investment company Pastel Limited) acquired STET’s equity interest in Bharti Tele-ventures. Bharti Tele- ventures acquired an additional effective equity interest in Bharti Mobile resulting in Bharti Tele- Ventures holding an effective 74% equity interest in Bharti Mobile. 2001 Bharti Telesonic entered into a joint venture, Bharti Aqua net, with Singtel for establishing a submarine cable landing station at Chennai. Bharti Tele- venture 3 acquired NYLIF’s equity interest in Bharti Cellular. Bharti Cellular acquired a 100% equity interest in Bharti Mobility formerly Spice Cell), the mobile services provider in Kolkata. Bharti Tele- ventures acquired equity interest in Bharti Cellular from British Telecom, thereby making Bharti Cellular its 100% subsidiary. Bharti Tele – Ventures acquired an additional equity interest in Bharti Mobinet from Millicom International and BellSouth International. Punjab license restored to Bharti Mobile by the DoT and migration to NTP-1999 accepted. Bharti Cellular entered into license agreements to provide mobile services in eight new circle following the fourth operator mobile license bidding process. Bharti Telnet entered into license agreements to provide fixed-line services in the Haryana, Delhi, Tamilnadu and Karnatala circles. Bharti Telescopic has entered into 3 license agreement with DoT to provide national Long Distance Services in India and has been the first services provider to start service in the country. Bharti Aqua netl, Bharti Telesonic and Bharti Cellular have entered into license agreements with the DoT to provide ISP services in India. 14 2002 Bharti launched mobile services in Gujarat, Haryana, Kerala, Madhya Pradesh circle, Maharastra. Mumbai Punjab, TamilNadu, Utter Pradesh, (west) circle. Bharti listed on the National Stock Exchange, Mumbai stock Exchange and Delhi Stock Exchange on February 18, 2002. Bharti entered into a license agreement with the Dot to provide international long distance services in India. Bharti launched fixed- line services in the Delhi, Haryana, Karnatka and Tamil Nadu license areas. Bharti became the first private telecommunication services provider to launch international long distance services. 2003 Airtel celebrates its2nd anniversary in Kolkata, integrates innovation in telecom with social initiatives. Airtel launches its new 9872 mobile series in Punjab. Airtel launches “Expense Tracker*, another 1st from the market leader. Bharti agrees to buy TIW’s stake in mobile operations of Hexacom, Rajasthan. Bharti Infotel launches India’s first broadband WiFi for homes, Sho & customers. Airtel redefines mobile boundaries in Mumbai & Western India launches “IN no west”. India Brand Summit kicks off. Airtel launches e-bill for Punjab and Haryana customers. Announces a new tariff plan with a monthly rental of Rs.99/Airtel crosses the 5 million customers mark. Touchtel revises international long distance rates by upto 50% for its customers in Delhi. Airtel gets the edge. Airtel launches its services in Hathras. Touchtel announces 50% reduction in tariff on ISD calls to South East Asian Countries for its customers in Haryana. Bharti moves towards providing an all India foot. On completion of 8 years, Airtel Delhi announces Anniversary Bonanza. Airtel voice portal launches exclusive speech of Cha-cha Nehru on Children’s Day. Airtel joins hands with CRY this Children’s Day. Airtel launches an existing offer with Sachin Tendulkar for its pre-paid customers. Airtel commissions world class Voice Quality Enhancer (VQE) Technology. Airtel launches country’s 1st ever all India Recharge Coupon. India is at the threshold of a revolution in the mobility team. 15 Bharti announces top-level appointment in the mobility team. Bharti Teletech becomes India’s first supplier of fixed lime SMS phones to BSNL. Touchtel Crosses the 1,00,000 Customer Base Milestone in Tamilnadu. Bharti Tele Ventures joins the billion - dollar club and net profit jumps three fold. Celebrate this festival season with Airtel. 2004 Airtel launches validity extension service for its Pre-paid customers in Delhi. Sunil Bharti Mittal gets “the Frost & Sullivan CEO of the year” award. Bharti & Nokia join hands to build & manage “Mega” Networks. Airtel’s brand ambassador Shahrukh Khan leads confidence to those who are hearing impaired. Airtel Punjab becomes first in the world to provide “Talk time Transfer” facility. Airtel introduces in the country the first ever Talk time Transfer services for its PrePaid customers in Delhi. Bharti spreads its wings to Rajasthan. Touchtel customers to gel live election updates. Airtel launches the world’s first Flexi- Recharge Prepaid coupon for its customers in Delhi. Bharti migrates all 15 cellular licenses to Unified Access Service License. Bharti signs a landmark agreement with VSNL to share its National Long distance backbone. Bharti Tele- ventures crosses Rs. 5,000 crores revenues for the year - Earns net Profit of over Rs.600 crores for the year. Bharti Infotel & CISCO to empower Enterprise Networks. Airtel Unveils its strategic Roadmap for eastern India. Airtel launches All India anywhere bill Payment facility. Bharti Tele Ventures Ltd. Announces the successful completion of its Foreign Currency Convertible Bond (FCCB). Bharti reaches agreement with Shayam Group to acquire their stake in mobile operations in Rajasthan (Hexacom). Bharti Tele Ventures joins the SEA-ME-WE-4 submarine cable consortium. Bharti and IBM announce first-of- a-kind business transformation agreement in global Telecommunications industry. Bharti Enterprises and Changi Airport from a consortium to bid for the development and management of airports in Delhi & Mumbai. 16 Bharti Charts a “Mega Expansion” plans to connect over 2300 Towns in the year 2004-2005. Bharti Infotel Launches DSL service under the Brand name Touchtel DSL in M.P. & Chattisgarh. Airtel Charts an Aggressive Expansion plan for M.P & Chattisgarh to connect over 55 towns in the year 2004-2005 Airtel becomes India’s first mobile service to extend roaming services in Pakistan. Bharti Tele-ventures Ltd (BTVL)appoints Kurt Hailstorm on its board. Airtel crosses the 6 million-customer marks nationally. Bharti Teletech to manufacture GE phones in India. Airtel adds more punch to “Azadi” for its prepaid customers. CRISIL assigns highest GVC rating to Bharti Tele-ventures Ltd. Bharti all set to provide all India footprint. Bharti & Ericsson Announce The first of its kind Initiative in. Bharti launches India’s Largest Gsm Mobile Service- Airtel in West Bengal. Airtel wins the World Communication Best Brand Award”. Airtel creates history again. Airtel introduces Wi-Fi service in Mumbai. Bharti Teletech introduces new standards of cordless telephony in India. Sumit Gupta of Bhatinda wins Maruti car. Airtel launches “EDGE” in Delhi. “Bharti Entrepreneur of the year”. Airtel offers slew of special Durga Puja benefits to its Customers in kolkatha. Airtel gets an “EDGE”. Airtel launches dictionary service in UP (west) and Uttaranchal. Bharti Enterprises & DE Rothschild’s announce a 50:50 JV for export of fresh fruits & vegetables. Bharti heralds the beginning of a unified era in the Indian Telecom Industry. Airtel to launch its services in 25 more towns of UP (West) & Uttranchal. Airtel announces unique benefits for its customers in UP (west) & Uttranchal leveraging its pan India footprint. Touchtel announces further reduction in tariff rates for its customers in Haryana. Airtel “EDGE” to redefine mobile telephony experience of customers in Maharashtra & Goa. Airtel launches in “Independence Day” Bonanza for its customers. Touchtel launches voice portal & music messaging service. 17 Airtel launches its firs ‘EDGE’ network in Punjab. Airtel becomes the first Mobile Operator to cross 1,00,000 customer mark in Himachal Pradesh. Bharti Tele-Ventures delivers strong growth. Airtel redefines mobile experience. Airtel consolidates media planning and buying. Airtel Live launched - the most comprehensive mobile portal featuring movies, music mobile game & sports on the mobile. Bharti & Siemens join hands to build & manage Airtel networks in three circles. Bharti forms new SBU - “Enterprise Business” to offer comprehensive solutions to corporate customers. Airtel launches, ‘Campus Calling’ in Oxford of East. Bharti Tele - Ventures in the “Asian Mobile news mobile operator of the year”. Airtel enters into an exclusive tie-up for “LAKSHYA”. Bharti infotel surrenders its redundant fixed service licenses in four circles. Airtel adds another first, offers Money Back Guarantee to its customers in Andhra Pradesh. BCEI invites nomination for the ‘Bharti Entrepreneur of the year Award. 18 COMPANY PROFILE :- BRAND NAME : AIRTEL COMPANY NAME : AIRTEL INDIA LT D. PARENT COMPANY : BHARTI TELEVNTURES HEAD OFFIC : KOLKATA CORPORATE OFFICE : MUMBAI LICENSING : 7TH JULY 1995 Airtel comes to you from Bharti cellular limited- a part of the biggest private integrated telecom conglomerate, Bharti Enterprises Bharti provides a range of telecom services, which includes cellular, basis, internet and recently introduced national long distance. Bharti also manufactures and exports telephone terminals and cordless ones. Apart form being the largest manufacturer of telephone instrument in India, it is also the first company to export its produces to the USA. Bharti is the leading cellular service provides with a footprint in 15 states covering all four meters and more than 7 millions satisfied customer. Vision:“To make mobile communication a way of life and be the customer first choice”. Mission:We will make the mobile communication need of our customer through: ‘Error-free services delivery” “Innovation Product and Services” “Cost efficiency” “Unified messaging solutions” 19 Technology partner of Bharti ALCATEL MOTAROLA ERICSSON SIEMENS ORACLE NORTEL NETWORK Bharti tele-ventures Ltd, was incorporated on 7th July 1995 for promoting investment in telecommunication services. Its subsidiaries operate telecom services across India Bharti tele-ventures is India’s leading private sector provider of telecommunication service based on a strong customer based consisting of 801 million total customer which constitute 76 million mobile and 7 lacks fixed line customer as on 30th June 2004. The total GSM subscriber base in country now stands to 15.8 crores where CDMA operate mobile base at 5 crores Bharti continues to be the largest GSM operator with 4 crores mobile subscribers base by BSNL with 27.8% subscribers and HUTCH is close behind at 17.76%. Bharti tele-ventures became the first private fixed line service provider in the country promoted under the TOUCHTEL brand by launching its services in Madhya Pradesh where it has 2.45 lakh subscribers. Bharti also manufactures and exports telephones and cordless phones. Apart from being the largest manufacturer of telephone instrument it is the first company to expert its products to the USA. Bhari runs the landline services in the name of “TOUCHTEL” and mobile services under “AIRTEL”. TOUCHTEL will now cease to exit most likely by the end of 20 December and subsequently both the ervices will be brought under the brand Airtel mobile and Airtel landline. AIRTEL has also launched a national web national web based mobile coupon service where customers can the websites, www.airtelworld.com to browse through to special offers available form outlets like PUR. Teksons, Ebony in Delhi, copper Chimney in Mumbai, tiffany’s in Banaglore send a keyword to a short code, and receive the coupon directly on their mobile. Customers Benefits: GPRS/MMS settings are preloaded on the handsets. Airtel branded services are pre-loaded. Easy access to GPRS services, thereby encouraging customers to explore a world of endless possibilities on their mobile phones. Integrated FM radio. Provides access to network e-mail service: send receive and read e-mails. Bharti tele-ventures is operating in Jammu and Kashmir, U.P.(East), Rajasthan, west Bengal, Bihar and Orissa also. The Bharti group has offered GSM based cellular mobile services in all these circle when the company gets the green signal from the department of telecommunications; Airtel Bharti’s cellular service has become telecom behemoth with its footprint spanning 23 circles. On 5th July 2004 at Kolkata Airtel, India’s leading mobile service, announced the launch of; AIRTEL live- a multi access entertainment Portal on the mobile with the most comprehensive content in the spheres of movies, music sports and mobile and mobile Games. The content can be accessed by prepaid as well as postpaid AIRTEL customers throughout the country AIRTEL also launched the first ever GSM phone customized especially for AIRTEL customer Nokia 6220. The phones games customized with exclusive Sachin Tendulkar Wallpapers, A.R. Rehman tone, Preinstalled embedded bookmarks and links. Bharti Tele-ventures Ltd.- A public company listed on three Indian Stock Exchange. Bharti Tele-ventures Ltd is controlled by The Bharti group it also provides fixed Line 21 ‘local access’ national and international long distance telephone VSAT, Internet services and corporate data network solutions. The company owns a 23,000 km ational fiber optic backbone and substantial international bandwidth. The circle in which AIRTEL mobile in operational are: 1. Andhra Pradesh 13. Maharashtra 2. Assam 14. Mumbai 3. Bihar 16. Orissa 4. Chennai 17. Punjab 5. Delhi 18. Rajasthan 6. Gujrat 19. Tamilnadu 7. Haryana 20. U.P (weast) 8. Himachal Pradesh 21. U.P (west) 9. Karnataka 22. West Bengal 10 .Kerala 23. Jammu and Kashmir 11. Kolkata 24. Jharkhand 12. Madhya Pradesh 25. Manipur 22 Group Structure MARKET STATUS OF THE ORGANISATION The total GSM subscriber base in country now stands to 5.80 crores. Bharti Continues to be largest GSM operator with 1.25 crores mobile subscribers base followed by BSNL with 27.8% subscribers and HUTCH is close behind at 19.76%. Airtel outlel at BHUBANESHWAR COMPETITION OF THE ORGANIZATION In Bihar AIRTEL will face competition from BSNL, RTL and RIM. BSNL has two types of services in GSM technology in Cellular sector. 1. Excel 2. Cellone EXCEL: Excel is the prepaid service of BSNL. It is the most popular service in Bihar. CELLONE: Cellone is the Post-Paid service offered by BSNL. BSNL tariff rate is very economical and has very large network coverage this is what make it very popular. But there LS a problem in the evening hours the network of BSNL is always busy. It is very difficult to make call. There is a shortage prepaid card offered by banal RTL:- RTL has got one type of service in GSM technology service called smart.Smart is p-repaid service offered by RTL. Most of the people are using smart card due to shortage of banal excel card, Problem with smart is its traffic structure is, high, network coverage is very limited. 23 RIM: RIM has got two type of services in CDMA technology. It has got two types of services one is prepaid and another is postpaid. The traffic structure is very high and it has got limited mobility. There is a billing problem in both the services offered by RIM. The connectivity and voice quality is very good. Recharge Denomination MRP Processing Fee Regular Customer Lifetime Customer Service Tax Validity 10 3.91 4.99 8.90 1.10 0 20 7.82 9.98 17.80 2.20 0 30 8.73 17.97 26.70 3.30 0 60 20.0 33.40 53.40 6.60 0 120 20.00 86.80 106.80 13.20 0 200 131.49 46.51 178.00 22.00 30 330 124.46 169.24 293.70 36.30 30 560 150.00 348.40 498.40 61.60 45 1110 0.00 987.90 987.90 122.10 60 2200 0.00 1957.99 1957.99 242.01 180 3300 0.00 2936.99 2936.99 363.01 365 *Lifetime 298 24 Tariff Card All Recharge Voucher SVV@ Rs. 59 SVV@ Rs. 99 SVV@ Rs. 149 STD@ Rs. 35 A2A 1.00 0.59 0.35 0.29 1.00 A2M 1.00 0.59 0.60 0.59 1.00 A2Landline 1.00 0.99 0.99 0.59 1.00 Local Calls STD Calls A2A 1.50 1.50 0.99 0.99 1.00 A2M 1.50 1.50 0.99 0.99 1.00 A2Landline 1.50 1.50 0.99 0.99 1.00 SMS Local 1.00 1.00 1.00 1.00 1.00 National 1.50 1.50 1.50 1.50 1.50 International 5.00 5.00 5.00 5.00 5.00 25 Chapter – 3 Organization structure A Theoretical Aspect of Sales Promotion 26 Sale Promotion ………………… A Concept Sales promotion, key ingredient in marketing campaigns consists of a collection of incentive tools, mostly short term designed to stimulate or greater purchase of particular products or services by consumer or the trade. Sales promotion is one of the most loosely used terms in the marketing vocabulary. Sales promotion refers to the technique of which is adopted to increase the volume of sales in any consumer markets. It covers those marketing activities other than advertisement and dealers effectiveness, such activities other are displays, show exhibition, demonstration and many other non routine selling at the point of purchase. “PHILIP KOTLER” defines it as follows ......... Sales promotion consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker and greater purchase of particular products\services by consumer or the trade. Any company use sales promotion tools to create a stronger and quicker response. The aim of every manufactures is to sell its products to get back amount the capital, which has been invested in the business. Every businessman wants EG send more and more products in the market and get maximum profit. According to WILLIAM J. STANTANT “Sales promotion as demand stimulating device designed to supplement advertising and facilities personal selling”. Producer and middle man conducts sales promotions. The target for producer’s sales promotion may be middle- man, end users-house holds or business users or the producers own sales forces. Middlemen direct sales or prospect sales further down the channel or distribution. There are several in marketing environment contribute to the surging popularity of sales promotion. 1. Short-term results – Sales promotion such as couponing and trade allowances produce quicker, more measurable sales results this strategy argues that immediate benefits come at the expense of building brand equity. 27 2. Competitive pressure – If any competitors are offering buyer’s price reduction contests, or an other incentive, a firm may feel forces to retaliate with its own sales promotion. 3. Buyer’s expectation – Consumers have always expected to purchase good quality goods at lower price. 4. Low quality of retail selling – Many retailers have done self-service. In such product displays and samples often are the only effective promotional tools available at the point of purchase. Purpose: Sales promotion tools very in their specific objectives, A free sample stimulates consumer trait, whereas a free management advisory service aims at cementing along term relationship with a retailer. Seller use incentive type promotions to attract new tries, to reward loyal customers and to increase repurchase rates of occasional users. Sales promotion often attract brand switchers, who are primarily looking for low price, premiums. Sales promotion is unlikely to turn them into loyal users. Sales promotion enables manufacturers to adjust to short term variations in supply and demand. Thus enables manufacturers to test how high a list price they can charge, because they can always discount it. They induce consumers to try new products instead of never straying form current ones. They promote greater consumer awareness of prices. Small-share competitors find it advantageous to use sales promotion. Because they cannot afford to match market leaders, large advertising budgets; nor can they obtain shelf space without offering trade allowance or stimulate consumer trial without offering incentives. OBJECTIVES: For Retailers:- Sales promotion objectives includes persuading retailers to carry new items and higher levels of inventory, encouraging off- season buying, encouraging stocking of related items, offsetting competitive promotions, building brand loyally and gaining entry its new retail outlets. 28 For Consumers:- Sales promotion objectives include encouraging purchase of larger sized units, building trial among nonusers and attracting switchers away from competitors brand. For the Sales Force:- Sales promotion objectives include encouraging more prospecting and stimulating off-season sales. Evaluation Sales Promotion Evaluating the effectiveness of sales promotion is much easier and the more accurate than evaluating the effectiveness or advertising For example, response to a premium offer or a coupon with a specified closing date can be counted and compared to a similar period when there were no premiums or offered. Advantages of Sales Promotions 1. It stimulates positive attitude towards the product. 2. It gives extra incentive to the customers to make a new purchase. 3. It gives direct inducement to take immediate action now rather then later. 4. It has flexibility and can be used at any stage of a new product introduction. Sales Promotion is very effective 1. When a new brand introduced. 2. When communicate a major improvement in our product. 3. When we want to increase the number retail stores to sell our products. Limitations of Sales Promotion 1. Sales promotion has temporary and short life not exceeding three month. Sales promotion alone can’t build up brand loyalty. 2. Sales Promotion are only supplement, device to supplement selling efforts of other promotion tools 29 3. They are not recurring in their use. 4. Too many sales promotions may affect adversely the brand image. Suggesting it lack of popularity or overstocking by a company. 5. Advertising agencies accord low status to sales promotion and usually employee junior staffs for sales promotion to that may be trained for more creative jobs promotion are ineffective. 30 Chapter – 4 A Practical Aspect of Sales Promotion and Customer Expectation from AIRTEL in BHUBANESWAR Data Analysis and Interpretation 31 SALES PROMOTION IN AIRTEL Sales promotion activities play a greater and vital role on entire marketing sales promotion activities no one can survive in market. Sales promotion tools are most essential for modern global marketing. This chapter has been devoted to the studies on sales promotion activities in Airtel. There are some sales promotion tools which Airtel provides for customers which is as follows:Kaun Banega Crorepati..................! As we all know that we are associated closely with STAR and KBC Platform as an “Exclusive” Mobile Partner. The broad points are as follows: 1. Only Airtel Mobile subscribers, can answers the question from their mobile to participate, and get to the Hot Seat for winning Rs 2 Crores. (Besides BSNL landline subscribers can participate). 2. Ten seats in the audience are booked for Airtel Subscribers in every episode of KBC. 3. Exclusive 28 days window (or Airtel where 24 Airtel subscribers get an opportunity to get a “Direct entry into Fastest Finger First”. 4. Play along for Airtel viewers to answer a question, asked during KBC program, & win Rs 1 lac. Airtel Live Through Airtel live the customer can access Internet on a limited basis. The Customer can only access the Airtel site (www.airtelworld.com). He can also download ring tones, wallpaper, videos and games. There is no rental for Masla. But it is the customer downloads any Ring Tones, Wallpaper, videos and games it is charged as per the downloading charges. 32 RINGTONES : 15 WALLPAPER : 10-15 VIDEOS : 30 GAMES : 50 Reach Me In Reach Me, the caller doesn’t leaves any message the called party receives a missed call alert from number. There is no monthly rent for this services. But when the user retrieves any message he gets he will be charged as per his tariff plan and if he calls up again will be charged as per tariff plan. Missed You.....................! If the customer is not reachable or has switched off his mobile phone and may one tries to call him them this service helps him to get the details of the number missed number. With this service the customer stays connected although he is not reachable or the mobile is switch off. When he switches on his mobile phone or when he is reachable he receives a message alert with the detail of the missed number. Activation - XXX Deactivate - XXX Easy charge You can recharge when ever you want. We can recharge our mobile anywhere, whenever, at any cost with easy charge. 33 DATA ANALYSIS INTERPRETATION My extensive survey is based on questionnaire having closed ended questions given by the organization. I have a set of 17 questions related to products of different company. During survey views of the retailer who are presently dealing with various products of different mobile companies. The sample size of 50 from west part of state Capital BHUBANESWAR. Main thrust was given to know the position of Airtel in market, Where the AIRTEL stands in market, who is the main competitor of Airtel, from which company subscriber having most of the problem and also what is the expectation from AIRTEL Findings: - After analyzing the 50 data I found that Airtel has advantage in SIM selling with 68%, Smart is second with 28% and Aircel has 4% of market share in west part of BHUBANESWAR. 34 Chapter – 5 Conclusion and Suggestions 35 Conclusion & Suggestions Conclusion:The research work was very extensive and exhaustive. The samples were taken to extent to get figure about the industry. The telecommunication industry is still in its teen age in the district but growing very rapidly. the researcher was surprised to know the real statistics. Airtel in some extent have very positive image amongst the subscribers/retailers. That’s why they influence customer to take Airtel Connection. Also either its company’s credibility, or past performance, Airtel’s image is best amongst respondents. When I asked for networking problem Airtel is fairly good only 20% respondents asked that its networking is poor. But I think it is a cause of concern and Airtel needs to improve its networking and its better if percentage become 0%. After analyzing the information gathered by opinions of respondents, in the study consisting of 50 respondents researcher reached on following conclusion. Suggestions:To be no. 1 is always a big advantage for any firm in any industry. The no. 1 image of Airtel has already done its work. The rest was fulfilled by these survey and huge advertisement-casting superstars like Sachin, Sharukh, A. R. Rahman, Kareena etc. Now the company has to in cash all these. The high degree of dissatisfaction from other operators is working in the same way as oxygen for the fire. On the basis of extensive study there are some suggestions, which can help to improve the organizational image and status. 1. The tariff rate of Airtel should always cheaper than other private service provider. 2. For better coverage additional tower should be established in remote area. 3. Must go in remote areas. The market invented by BSNL has of no means it without service. The unavailability of BSNL connection will make the company the only king in that market. There is a huge opportunity there. 36 4. Easy Recharge facility should be available in most of the outlet. 5. No. of Airtel outlet should be increase in remote area chowk. 6. Airtel should provide ‘Gramin Bandhan Activity’ to increase the connection in Remote area. 7. In corporate and institutions, people are looking for better service. So by providing this it can gain the Big HNI’s to reach its break even as soon as possible and can earn profit from there. 8. People in the zone very price sensitive. So the tariff must be comparative. 9. Customers get dissatisfied very soon. So a Good customer care unit must support them. They need care and by providing a long customer organization relationship can be built. These recommendations are on the basis of personal findings. Which the researcher came to know in the research period. Hence these are recommended for acceptance. Bibliography Book follows 1. Research process, Research methodology, methods and technique, 2nd edition, Kothani C.R., Chapter – 1, Page – 10. 2. Data Collection, Research methodology, methods and techniques, 2nd edition, Kothari, C.R., Chapter – 6, Page – 95-111. 3. Consumer Perception, Consumer Behaviour, 8th edition, Schiffman Leon G. & Kanuk Leslie. Lazar, Chapter – 6, Page – 158-200. 37 Website : www.gogle.com www.airte.in www.bhartiairtel.in www.airtelworld.in questionnaire Name of the Retailers : ___________________________________________ Contact No. & Address : _______________________________________ ______________________________________________________________ Please tick at the appropriate box :1. Highest SIM selling position :Airtel Aircel Smart Remarks Qty ______ _______ ______ Cause :- _________________________________________________ 2. Highest H.B.O. selling:Airtel Tata Aircel Smart RIM Remarks Qty ______ _____ _____ ______ _____ 38 Cause :- _________________________________________________ 3. Which Telecom Company having balance problem:Airtel Tata Aircel BSNL Smart RIM Remarks Qty ______ _____ _____ ______ _____ ______ Cause :- _________________________________________________ 4. Highest Easy recharge selling:Airtel Tata Aircel BSNL Smart RIM Remarks Qty ______ _____ _____ ______ _____ ______ Cause :- _________________________________________________ 5. Highest Life Time Selling:Airtel Tata Aircel BSNL Smart RIM Remarks Qty ______ _____ _____ ______ _____ ______ Cause :- _________________________________________________ 6. Highest SIM stock:Airtel Aircel BSNL Smart Remarks Qty ______ _____ _____ ______ Cause :- _________________________________________________ 39 7. Highest H.B.O. stock:Airtel Tata Aircel Smart RIM Remarks Qty ______ _____ _____ ______ _____ Cause :- _________________________________________________ 8. If you have invested capital in AIRTEL then what you considered before investment? Compnay Credibility Company Past Performance Security Others Cause :- _________________________________________________ 9. Main Reason to invest the capital in telecom sector or in AIRTEL Margin Less Risk Profit Loss Remarks Cause :- _________________________________________________ 10. According to you which Telecom company is best & why: Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 11. In which sale you get maximum beneift Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 12. Customer are interested to take connection of which 40 Prepaid Life Time H.B.O. Cause :- _________________________________________________ 13. Which company is not valuable Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 14. Why you convey the customer to take connection of any one of these? Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 15. Explain highest complain regarding networking Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 16. From which company, customers are not satisfied and facing problems Airtel Tata Aircel BSNL Smart RIM Remarks Cause :- _________________________________________________ 41 42