A Detailed study on the impact of promotional activities of Airtel's

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MANAGEMENT THESIS 1

FINAL REPORT

A Detailed study on the impact of promotional activities of Airtel’s broadband services for Mysore East.

BY

N.V.VIBITHA

0801211523

UNDER THE GUIDENCE OF-

Mr. AASHISH ITIGATTI

FACULTY GUIDE

INC, MYSORE

A r e p o r t s u b mi t t e d i n p a r t i a l f u l f i l l m e n t o f t h e r e q u i r e m e n t o f

M B A p r o g r a m a t I C F A I U n i v e r s i t y .

.

Faculty Member

INC, Mysore

CERTIFICATE

This is to certify that this management thesis entitled – ‘A

DETAILED STUDY ON PROMOTIONAL ACTIVITIES OF

AIRTEL BROADBAND SERVICES FOR MYSORE EAST ‘ embodies the sincere work done by Ms. N.V.VIBITHA [Enrollment

Number: 0801211523], under my guidance and supervision in the academic year 2008-2010 in partial requirement for the award in

MBA Program in ICFAI University.

M r . A A S H IS H I T I G A T T I

F a cu lt y Gu id e

I N C , M ys o re

ACKNOWLEGDEMENT

It gives me immense pleasure to thank the following members for their kind co-operation and guidance towards me during the completion of my project work.

First of all I take an opportunity to thank Mr.Rajeev Raghvan Centre

Head of INC,Mysore.

I would like to thank Mr. Nikhil Gowda and Mr.Mohammed Abbaz from Airtel for their continuous support.

I express my sense of deep gratitude to our faculty guide, Mr. Aashish

Itigatti for his kind co-operation and support extended and for sparing

valuable time in guiding and helping me in successful completion of this project.

A special thanks to my Parents whose consistent encouragement, blessings and undivided support have paid rich dividends to form a successful project. Finally, I would like to thank my friends and well wishers for their enthusiastic support which has directly or indirectly helped me in making this project a successful one.

DECLARATION

I, Ms.N.V.Vibitha student of MBA of INC, Mysore hereby declare that this project entitled ‘ A DETAILED STUDY ON THE

PROMOTIONAL ACTIVITIES OF AIRTEL BROADBAND

SERVICES FOR MYSORE EAST ‘ has been prepared by me under the guidance and supervision of Mr. Aashish Itigatti, Faculty Guide in

ICFAI National College, Mysore.

P l a ce : M ys o re

D a t e :0 9 /1 1 /2 0 0 9 N . V . V IB I T H A

CONTENTS

1.

Introduction

2.

Industry Profile

3.

Company – Overview

4.

Literature Review

5.

Theoretical Aspects

6.

Research Methodology and Design

7.

Data collection- Analysis and Interpretations

8.

Findings

9.

Recommendations

10.

Biblography

11.

Annexure.

ABBREVATIONS

For this project titled ‘A DETAILED STUDY OF PROMOTIONAL ACTIVITIES OF AIRTEL

BROADBAND SERVICES’ the following abbrevations have been used. They are as follows:

1.

ASDL- Asymmetrical Subscriber Data/Digital Line.

2.

BWA- Broadband Wireless Access.

3.

WIMAX- Worldwide Interoperability for Microwave Access.

4.

CPE- Customer/Client Premises/Provided Equipment.

5.

DSL- Digital Subscriber Line.

6.

ISDL-International Software Design Labs.

7.

VPN- Virtual Private Network.

TITLE

The management thesis entitled ‘A detailed study on the impact of sales promotional activities of Airtel’s Broadband services for Mysore East is an attempt to understand the promotional activities adopted by the Company and its effect on the sales for consumers at Mysore east.

SYNOPSIS

Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions are varied.

Often they are original and creative and hence a comprehensive list of all available techniques. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or other organizational customers to stimulate immediate sales.

Sales promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short term sales effects. It includes incentive offering and interest creating activities which are generally short term marketing events other than other promotional mix.

The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers. Sales promotion is often referred to by the names of extra purchase value and below the line selling. Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesalers are called trade sales promotions.

Sales promotion can be either at consumer end in pull strategy or at distribution channels in push strategy.

Consumer sales promotion can be if various kinds they are- coupons, rebates, money refund, promotional pricing, trade in , loyalty programs, sampling, free trials, premiums, contests & sweepstakes, demonstrations, personal appearances, trade sales promotion, point of purchase displays, advertising support programs, short term allowances, sales incentives or push money promotional products and trade shows.

The purpose of this research is to stabilize themselves in the market as well as to retain its identity to find out sales promotional activities in the context of Airtel broadband services at Mysore.

INTRODUCTION TO THE STUDY

The management thesis which I was done as a part of my studies is “ A Detailed

Study on the Impact of Promotional Activities of Airtel Broadband Services for Mysore East. The study I conducted provided me an excellent opportunity to implement all that I have learnt in my class room sessions in the practical outfield.

The Bharti AIRTEL landline and broadband services has there in the market of

Mysore City for last four and a half years. In this four and a half year time they have made there own identity in the market has a landline and broadband service provider with a good number of high pulsing customers. Among those good pulsing customers the households and business class customers are also one of them. AIRTEL mainly focus on the customers who pays the average monthly bill amount ranging between Rs 499/- to Rs 1899/-. I am doing my thesis on this particular topic due to the reason that I believe it will help me know more about the marketing strategy, competitiveness and also about the customer behavior. My thesis will help the company to know more about their strength, customers and the area where they have to concentrate more and also about their competitor’s strategy. This will also help the company to build a good relationship with the customers.

INDUSTRY PROFILE

Broadband is a collective term for a group of technologies that enable highspeed Internet access, at speeds of up to two megabits per second (Mbps). That is up to 40-times faster than the conventional dial-up medium. This industry in

India is still growing and has a long way to go in terms of stabilized industry in

India.

Broadband services were launched in India in 2005. ADSL services now cover

300towns with a combined 1.5 million connections, while broadband wireless subscriber figures are still negligible. While low broadband penetration is a clear opportunity for BWA/WiMAX, the market take off will require sufficient spectrum, very low cost CPE and affordable end-to-end connectivity, including the computing platform. A country where broadband's average revenue per user

(ARPU) is estimated at US$8-10 requires very low equipment cost. In fact, Huawei is already delivering DSL modems at US$13 to Indian operators.

The Indian telecom sector operates in a volume-driven market. If the broadband market in India grows to meet the government's revised targets, it might spur one of the world's largest broadband wireless markets. For example, target broadband connections have been currently revised to 20 million by 2010.

Quite likely the majority of these will be wireless broadband connections because of the poor wire line infrastructure in place.

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world

after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power).

Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited

(VSNL) for international telecommunications and Mahanagar Telephone Nigam

Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to

give a comprehensive roadmap for the Indian telecommunications sector. In 1997,

Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National

Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed

Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and video conferencing.

Cellular services can be further divided into two categories: Global System for

Mobile Communications (GSM) and Code Division Multiple Access (CDMA).

The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The

reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

Market Share of Public and Private Players

Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and the international calls, with the provision of broadband services in the fixed line segment and GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the wireless instruments. Mobile phone providers have also come up with GPRS-enabled multimedia messaging, Internet surfing, and mobile-commerce. The much-awaited 3G mobile technology is now entered the Indian telecom market. The GSM, CDMA, WILL service providers are all upgrading themselves to provide 3G mobile services.

Along with improvement in telecom services, there is also an improvement in manufacturing. In the beginning, there were only the Siemens handsets in India but now a whole series of new handsets, such as Nokia's latest N-series, Sony

Ericsson's W-series, Motorola's PDA phones, Apple iphone, Blackberry mobile etc. have come up. Touch screen and advanced technological handsets are gaining popularity. Radio services have also been incorporated in the mobile handsets, along with other applications like high storage memory, multimedia applications, multimedia games, MP3 Players, video generators, Camera's, etc. The value added services provided by the mobile service operators contribute more than 10% of the total revenue.

Public

48%

Private

52%

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. 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.

COMPANY PROFILE

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The

Bharti Group, has a diverse business portfolio and has created global brands in the telecommunication sector. Bharti has recently forayed into retail business as Bharti

Retail Pvt. Ltd. with Wal-Mart for the cash & carry business at Amritsar, Punjab in

May 2009. It has successfully launched an international venture with EL

Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world leader in financial protection and wealth management.

BHARTI AIRTEL LTD started in July 7 1995.Its head quarters is at Delhi.

In 1998 company started their first land line operation. Airtel is the name of their brand. AIRTEL stands for Affectionate, Interested, Respectful, Tolerant, Energetic and loving .Their logo is “Think fresh Deliver More”. Their first company is Bharti

Cellular Limited under the brand name of Airtel. Another one is Bharti Tele Sonic

Ltd under the brand name of India One. Then Bharti Tele Net Ltd under the brand name of Touch Net. Another one is Bharti broad band Ltd under the brand name of

Manthra Online. The companies Bharti Telenet Ltd and Bharti Broadband Ltd combined together and form Bharti Broadband and Teleservices Ltd. After sometime the companies Bharti Telesonic Ltd and Bharti Broadband and

Teleservices Ltd combined together and form Bharti Infotel Ltd. In 13 th September

2004 all the four companies combined together and form Bharti AIRTEL Ltd.

Bharti Airtel is one of India's leading private sector providers of telecommunications services with more than 79 million subscribers as of

December 2008.

 Bharti Enterpises, India’s leading provider of state-of-the art telecommunications services is the power behind Airtel Broadband Services

India. Bharti Airtel, as the company is known, directly manages three lines of businesses under its subgroup. The three are as follows: broadband and telephone services, mobile services, and enterprise solutions.

The broadband and Internet connection service falls under the data services provided by Airtel’s broadband and telephone services arm. Bharti

Enterprises is actually the first ever privately owned company to have successfully setup a satellite-based gateway for its Internet access service. In the same way, they have effectively launched India’s first private submarine communication cable systems. This particular feat is made possible through partnership with Singtel. Consequently, the data services provided by the

Airtel broadband and Internet connection service is further grouped into

DSL, ISDL, Leased Line, VPN, and Wi-fi categories.

 Airtel’s DSL plans are enforced with an unlimited Internet game playtime scheme. Every subscription of Airtel DSL gives the client the ability to play all the games provided in Airtel’s game server, without any game-client download charges. Also, this game server that Airtel exclusively hosts is fully reliable, expandable, and is updated with new games every month.

Aside from unlimited playtime, subscribers also get to enjoy music downloads, audio/video messaging, and Internet call services. Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country

with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) –

1.

Mobile Services

2.

Airtel Telemedia Services

3.

Enterprise Services.

The mobile business provides mobile & fixed wireless services using

GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand.

 On the other hand, Airtel’s ISDN service can be considered as an enterprise solution that provides for high-speed voice with simultaneous data access.

Airtel’s ISDN line is fully digital – and simply that translates to superior voice quality despite real-time data transfers and exchanges. And the best of feature of Airtel’s ISDN service is that subscribers get to pay for the actual usage of the service only and nothing more, nothing less.

Bharti Airtel is currently working hard to become India’s most admired brand in telecommunication services. They are striving to be loved by their own customers and longs to be considered as a benchmark by a lot of related businesses nationwide. They are also aiming to be home to India’s greatest talents working in the field of telecommunications.

Airtel’s broadband services start at 64 kbps speed to as fast as 256 kbps for home users. Business plans, on the other hand, are offered either at 256 kpbs or

512 kbps speeds. Business plan DSL 10995 subscribers also get free two static

IP address necessary for some of their important business applications.

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The

Bharti Group, has a diverse business portfolio and has created global brands

VISION AND PROMISE

By 2010 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

 Benchmarked by more businesses

 “ We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”.

BOARD OF DIRECTORS

The board of directors of the Company has an optimum mix of executive and nonexecutive directors, which consists of two executive and fourteen non-executive directors. The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an

Executive Director and the number of Independent Directors on the Board is 50% of the total board strength. The independence of a director is determined on the basis that such director does not have any material pecuniary relationship with the

Company, its promoters or its management, which may affect the independence of the judgment of a Director. The board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the

Company .

The composition of the Board is as under:

The Board of Directors of the Company has an optimum mix of Executive and

Non-Executive Directors, which consists of three Executive and fifteen Non-

Executive Directors.

The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive

Director and the number of Independent Directors on the Board is 50% of the total

Board strength. The independence of a Director is determined on the basis that such director does not have any material pecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of a Director.

The Board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company. The composition of the Board is as under:

Mr. SUNIL BHARTI MITTAL

Chairman & Group Managing Director -BHARTI ENTERPRISES

Following are the board of directors of Bharti Airtel :-

Rajan Bharti Mittal

 Rakesh Bharti Mittal

Akhil Gupta

Chua Sock Koong

N. Kumar

 Kurt Hellstorm

Donald Cameron

 Paul O’Sullivan

Professor V.S. Raju

Pulak Chandan Prasad

 Bashir Abdullah Currimjee

Gavin Darby

Syeda Imam

Ajay Lal

 York Chye Chang

Arun Bharat Ram

Paul Donovan

SERVICES PROVIDED BY AIRTEL BROADBAND SERVICES.

Airtel Telemedia Services:

Airtel is offering broadband & Internet services a over 100 cities in

India. It is powered by DSL technology which gives you blazing-fast; secure

Internet access as soon as you switch on your computer. It also gives you the power of limitless discovery on Internet – from shopping to banking, paying bills to making new friends and not to mention endless fun & learning for children. The special features of Airtel broadband services are,

 Why wait to connect - With Airtel Broadband, the internet is always ON, always available. No more waiting for dial-up to connect. You are ready to use the internet as soon as you switch on your computer.

 Power Surfing - With speed of up to 2Mbps, feel the excitement of doing more on Internet. Shop, download MP3, exchange heavy files and chat at an enviable speed, all thanks to an extensive Broadband Services infrastructure. No more disconnections in the middle of download.

Surf while you talk - No more missed calls or blocked telephone lines while using the internet. Airtel Broadband Services connection does not block existing telephone lines and allows one family member to use the phone while another member surfs the net.

Robust installation - The world class infrastructure & end-to-end digital network of underground copper cable lines ensure an extremely robust

connection that eliminates the risk of damage. Superior server technology and a dedicated port provide total security to data storage and information exchange through the Internet.

 24x7 customer supports – The 24x7 customer support unit helps you to serve better. It works for round-the-clock, 365 days a year. The customer feedbacks are carried out with great care.

Speed on demand – The customer can enjoy a dedicated speed of up to 2

Mbps without having to change your subscription plan. What’s more, you only pay for what you use.

Airtel PC security - Airtel along with F–Secure, one of the best in PC security, provides you with a service that tries to answer a Broadband customer’s most frequently asked question “Is my PC safe?”.

 Payment options – Airtel offers you a number of payment methods like cash payment, ECS- Easy payment method, Credit card method, check drop boxes, online payment. You can choose any one of the method for paying the cash.

Services:

The services offered by Airtel Broadband & Internet are listed below:

1.

Video Surveillance Solutions

With this service you can observe your office, warehouse, shop and staff from your PC from anywhere and at all times, with the Video Surveillance

Solution.

2.

In Touch

In Touch is a great way to stay connected. It is an easy-to-use personal communications service that connects you with your friends and family, using a

PC or a TV and a Broadband (high speed) Internet connection. With In Touch you can do various activities like Video & Audio messaging, video & Audio

Calling, Video Postcard TM service etc.

3.

NetXpert

NetXpert is automated broadband care technology. Globally accepted and successfully used by over 38 million customers worldwide, the NetXpert provides immediate solutions for Internet connectivity related problems. The

NetXpert helps in the speedy installation and activation of the Broadband connection on your PC. Thereafter, it helps to identify any system or network problems that may come up from time to time. With NetXpert, you can detect and repair most problems, all by yourself, and experience the joys of uninterrupted Broadband.

4.

Online Tests

Airtel Broadband Services offer you online competitive tests for GRE,

GMAT, SAT and MBA, from the comfort of your home.

5.

Wifi

Wifi is a wireless technology brand by the Wifii Alliance that gives you a host of fantastic advantages ranging from reliability to security. The simple installation procedure gives you access to unsurpassed performance instantly.

Common applications for Wifi include Internet and VoIP phone access, gaming, and network connectivity for consumer electronics such as televisions,

DVD players, and digital cameras. Just like cell phones, televisions and radios, the wireless network also uses radio waves.

Products of Bharti Airtel Broadband and Telephony Services.

DEL – Direct Exchange Line – Land line Phone (Voice)

 DSL – Digital Subscriber Line – for data

 Telephone Instrument

Touchnet Dial-up-service

Business focus of Bharti Airtel Broadband and Telephony Services.

 Operational excellence

Reducing churns

Tightening cost

Utilizing capacity

Quality Policy of Bharti Airtel broadband and Telephony Services.

Reduction of error level.

Reduction of operating cost.

 Reduction of cycle time.

Organizational Culture of Bharti.

 Cut hierarchy to where knowledge resides.

 Act transparently and couragebly.

Process focus of Bharti Airtel broadband and Telephony Services.

 Process standardization and customization

 Best practice replication

Speed of urgency

Strategy Of Bharti Airtel Broadband And Telephony Services.

Centralized reporting system

Customers of Bharti Airtel Broadband and Telephony Services.

 Residents

 Small and middle enterprises

 PCO’s(public call office)

 Corporate’s

Competitors Of Bharti In Broadband And Telephony Services.

Bsnl

Relience

Tata indicom

PROMOTIONAL STRATEGY

After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures

Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Vodafone-Essar limited

(Vodafone), Idea Cellular limited (Idea) and Reliance India Mobile (RIM).

All the players except RIM offered services based on the Global System for

Mobile (GSM) technology. RIM provided services based on Code Division

Multiple Access (CDMA) technology as well as GSM.

As competition in the telecom arena intensified, BHARTI AIRTEL took new initiatives to woo customers. Prominent among these were - celebrity endorsements, loyalty rewards, discount coupons, business solutions and talk time schemes. AIRTEL has used most number of celebrities for advertisements. The list includes-Sachin, Shahrukh khan, Rehmaan, Saif Ali Khan, Kareena Kapoor,

Zaheer Khan Etc.The most important consumer segments in the cellular industry were the youth segment and the business class segment. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service provider.

Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular, fixed line and broadband service market.

The popular techniques that are undertaken by Airtel Broadband for sales promotion at Mysore are as follows-

1.

Point of purchase displays- when a person walks into any Airtel store anyone can find a wide range of point of purchase displays regarding broadband connection. When a consumer steps into a store he/she sees these displays and this turns out to willingness to purchase.

2.

Tele calling- If you are having a Airtel landline at home the Airtel customer care calls the customers at regular intervals to create awareness and educate them about their broadband connections and wide offers.

3.

Sales Executives- sales executives of Airtel gather database and approach to the consumers who are having Aitrtel landlines and who have a personal computer or laptop at their place then they promote their broadband services by explaining the features and offers in detail.

4.

By directmail- this is another way of sales promotion where in the brochures and leaflets of broadband service are posted along with the landline bills to the consumer. In this way the consumer is attracted towards the broadband service.

5.

Billboards, print media and banners etc are used widely as sales promotional methods to attract consumers.

6.

Along with these Airtel also undertakes advertising and sales promotional activities aggressively by sponsoring in trade shows & events and they also participate in fairs and exhibitions locally.

RESEARCH DESIGN AND METHODOLOGY

MARKETING RESEARCH

Definition of marketing research is approved by the board of the American

Marketing Association (AMA) is:

“Marketing research is the functions which links the customer and public

to marketer through information used to identity and define marketing

opportunities and problems; generate define and evaluate, marketing

actions, monitor marketing performance, and improve understanding of

Marketing as a process”.

Simply, marketing research is the systematic design, collection, analysis and

Reporting of the data findings relevant to a specific marketing situation facing the company. Careful planning through all stages of the research is a necessity.

Objectivity in research is all- important. The heart of the scientific method is

The objective gathering and analysis of the information.

The function of marketing research within a company is to provide the

Information and analytical inputs necessary for effective planning of future marketing activity, control of marketing operations in the present and evaluation of marketing results.

A research may undertake any of three types of research investigations depending upon the problem. These three types of research included.

Basic research, Applied research and Designated fact gathering.

Steps in Marketing Research Process

Marketing Research Process can be carried out through the following steps:

Define the problem and research objectives

Develop the research plan

Collect the information

Analysis and interpretations

Present the findings.

OBJECTIVES OF THE STUDY.

The Management Thesis study helps the student to check whether the theory and practice actually matches. Organizational exposure helps the student to know how effectively they performed in the market.

The primary objectives of the study was,

To study the relationship between various promotional strategies on sales volume.

To study how sales promotional tools helps to increase sales and retain customers.

To know the demographic factors is influenced by sales promotional strategies.

SCOPE AND NEED FOR THE STUDY.

Today, for any organization or firm to survive in this competitive world depends on its ability to be dynamic and be different from the competition to be unique in the industry. Customer Satisfaction helps every organization to keep the existing customer and to build new customer. This research is aimed at profiling the standard customer with an aim to increase the network and improve companycustomer relations. The information gathered through this research can be used by the company to improve its services and became more customers friendly. This can increase the goodwill of the company and its overall performance.

Thus this study is aimed to provide the management with some knowledge about its status in market both in terms of sales and customer awareness. The research

also aims to provide some ideas to improve the company’s present condition. The following can be the scope for the study :

1.

To understand the promotional activities for Airtel Broadband services.

2.

To gain knowledge about the basic principles and concepts of sales promotion.

3.

To understand the influence of sales promotion of the company and does this has any association in their buying pattern incurred through this.

RESEARCH METHOLOGY:

The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings.

It is very important to have a suitable research methodology. For my Management thesis1 entitled, A Detailed study on the impact of sales promotional activities of

Airtel’s broadband services for Mysore East. I collected primary and secondary data to analyze and identify the impact of the promotional strategies and sales volume and customer satisfaction in the Organization.

Area of the study:

The study was mainly concentrated on Mysore city-East.

Research Design:

Descriptive Research: Descriptive research includes survey and factfindings enquire of different kinds involving a detailed survey by a questionnaire issuing to respondents/customers of Airtel Broadband Services.

Data Collection:

The study is based on the data collected through primary and secondary sources.

Primary Data:

An interview schedule was designed to collect primary data from various broadband users ie customers by a questionnaire survey.

Secondary Data:

Secondary data was collected from journals, magazines, web sites and from other relevant publications.

Sampling Design:

The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method.

Sample Universe:

All customers using broadband connection in Mysore East was taken as the sample universe . People residing in Mysore East who are salaried, businessmen, professionals, households, students and others.

Sample Size:

From the universe, sample sizes of 100 customers were selected for the purpose of the study.

Sample Unit :

The customers in the age group of 18 to 60 years is taken as the sample unit.

Sample Frame:

The customers were selected on a random basis from which the respondents were selected based on convenience.

Sampling Method:

Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on consumers with different type of business.

Research period

The time for the project is approximately 3 months in which the collection of data, interpretation, analysis, conclusion and the objectives of the study should be justified.

STATISTICAL TOOLS:

The aim is to present a clear idea of research procedure that will be followed in the study. The study is causal in nature as it shows the impact of sales promotion on sales volume.

Hypothetical testing and correlation are the statistical tools helpful to indicate the impact of sales promotional strategies on sales volume for Airtel Broadband services, Mysore.

Hypothetical testing begins by making assumption about the population parameter.

Then we gather sample data and determine sample statistic. To test the validity of

our hypothesis the difference the hypothesized population parameters is calculated.

If the actual value is large, we reject our hypothesis. If the value is small we accept it. And Chi-Square test is undertaken to test the hypothesis.

Correlation is a statistical tool that helps to measure and analyze the degree or extent to which two or more variables fluctuate with reference to one another.

In other words, if the change in one variable affects a change in the other variable, the variables are said to be correlated.

DATA COLLECTION

ANALYSIS AND INTERPRETATIONS.

QUANTITATIVE ANALYSIS.

Testing of hypothesis by Chi- Square test to know relationship between age group and promotional activities and sales.

Age group/ Sales

20-35

36-50

Total

Successful

43 a

28 c

71

Unsuccessful

7 b

22 d

29

50

50

100

Total

Solution-

Ho- There is a relation between age group and sales promotional activities.

Ha- There is no relation between age group and sales promotional activities and sales.

By Chi-square test-

X 2 cal = N (ad-bc) 2 / (a+b) (c+d) (a+c) (b+d)

= 100 (946-196) 2 / (50) (50) (71) (29)

= 56250000/5147500

X 2 cal = 10.93

Degree of freedom is 1.

Test of significance is 5%

K = 3.84

As X cal value is greater than k value so Ho is rejected and Ha is accepted.

So there is no relation between age group and sales promotional activities.

CORRELATION

Sales

(X)

50

Advertising

(Y)

15 x=X- X

-15 y=Y-Y x2 y2 xy

-3 225 9 45

60 18 -5 0 25 0 0

65

70

71

16

22

20

0

5

6

-2

4

2

0

25

36

4

16

4

0

20

12

69

65

18

17

4

0

0

-1

16

0

0

1

0

0

70

ΣX =520

18 5 0

ΣY = 144 Σx = 0 Σy = 0

25 0

Σx2 =

352

0

Σy2 =

34 Σxy = 77

Y- is in 000s and both the values X and Y are on a monthly basis.

Mean X = 520/8 = 65

Mean Y = 144/8 = 18

So Correlation

‘r’

is as follows- r = 0.704 indicates that there is a positive relationship between the sales and promotional activities of the company. So when advertising and promotional activities are increased then the sales of the company also increase.

What type of internet connection is used at your place?

Table showing the type of connection used in the organizations

Table 1

Connection type No. of respondents Percentage

Broadband

Dial-up

GPRS

Others

100

0

0

0

100 Total

Chart 1

100

0

0

0

100

100

90

80

70

60

50

40

30

20

10

0

100

0

Broadband Dial-up

0

GPRS

0 others

East

The Interpretation is that all of the sample units were using Broadband connection and none of them were using other type of connection at their place.

How did you get to know about Airtel broadband service?

Table 2

Medium No. of respondents Percentage

Advertising

Friends

50

24

45

22

Existing Users

Others

30

7

Total 100

Chart 2

27

6

100

6%

27%

45%

Advertising

Friends

Existing Users

Others

22%

Maximum of 45% of respondents are educated by the advertising medium, 27% of them are through existing users, 22% from friends and 7% of them by other mediums.

Did advertising and sales promotion make an impact for your purchase?

Table 3

Result

Yes

No. of respondents

71

Percentage

71

No

Total

29

100

Chart 3

29

100

29%

Yes

No

71%

Up to 71% respondents feel that sales promotional activities were the impact for their purchase and rest 29% do not agree.

Why do you prefer Airtel broadband connection?

Table 4

Characteristics

Offers

No. of respondents

13

Service quality 37

Speed & security of

Data

30

Brand Name

Total

Chart 4

20

100

Percentage

13

37

30

20

100

Brand Name

20%

Offers

13%

Offers

Service quality

Speed & Security

Brand Name

Speed & Security

30%

Service quality

37%

T

The interpretation is that only 13% of the customers preferred Airtel broadband because of offers. The highest 37 % of the customers preferred Airtel because of the quality of service offered by Airtel. The second most 30% of the customers have preferred because of the Speed of internet service. It also shows the brand name also has some implication before choosing Airtel

Broadband services. 20% of the customer has chosen Airtel because of the brand name ‘Airtel’.

Table showing customer rating of speed of Data transmission

Table 5

Ranking

Poor

No. of respondents

6

Percentage

6

Fair

Good

Very good

Excellent

55

Total

Chart 5

21

16

2

100

21

55

16

2

100

Very good

16%

Excellent

2%

Poor

6% fair

21%

Poor fair

Good

Very good

Excellent

Good

55%

Around 55% of the customers rated the speed of data transmission is very good in

Airtel broadband. Only 6% of the customers are worried about the speed. 2% of the customers rated it as Excellent.

Table showing customer rating of Safety of Data transmission

Table 6

Ranking

Poor

No. of respondents

6

Percentage

6

Fair

Good

Very good

Excellent

20

47

22

5

Total 100

Chart 6

20

47

22

5

100

Very good

22%

Excellent

5%

Poor

6% fair

20%

Poor fair

Good

Very good

Excellent

Good

47%

The interpretation is that 47% of the customers rate safety of data as good. 22 % of customers ranked it as very good. Only 6 % of the customer feels it as bad. The customer who ranked it excellent contributes 5 % of the sample size.

Table showing customer ranking of usage experience

Table 7

Ranking

Poor

No. of respondents

10

Percentage

10

Fair

Good

Very good

Excellent

Total

15

38

25

12

100

15

38

25

12

100

Chart 7

Very good

25%

Excellent

12%

Poor

10% fair

15%

Poor fair

Good

Very good

Excellent

Good

38%

The interpretation is that around 38% of the customers has ranked the usage experience was good. 25% of the customers ranked it as very good. 12% of the customers ranked it as excellent. Also 10 % of the customer rated it as poor .

Table showing customer rating of after sales service

Table 8

Ranking No. of respondents Percentage

Poor 13 13

Fair 14 14

Good

Very good

Excellent

35

26

12

Total 100

Chart 8

35

26

12

100

Excellent

12%

Poor

13% fair

14%

Poor fair

Good

Very good

Excellent

Very good

26%

Good

35%

The interpretation is that, 12% of the customer has rated the after sales service as excellent. Some 26 % rated it as very good and 35% as good. But the concern is that 13 % of the customer also feel that the after sales service is poor.

Are you aware of some other service in this category?

Table 9

Result No. of respondents

Yes

Total

100

100

Chart 9

Percentage

100

100

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

100 Series1

Yes No

0

100% of respondents are aware of other broadband services in this category.

Table showing Rating of Airtel broadband with other competitors in the same category

Table 10

Ranking No. of respondents Percentage

Best

Better

45

35

45

35

Average

Worse

10

10

Total 100

Chart 10

10

10

100

10%

10%

45%

Best

Better

Average

Worse

35%

About 45% of respondents feel that Airtel is best, 35% feel its better and 10% feel its average and worse.

FINDINGS

1.

Quality of the service provided plays an important role in keeping the existing customers and to bring new customers.

2.

In most of the organization, Internet plays an important role in the day to day activities.

3.

Most of the organizations prefer broadband connection over other type of connection because of speed and other compatibility of service.

4.

A number of the organization preferred Airtel because of the quality of service provided and also for the speed of data transmission.

5.

Many customers have rated the speed of data transmission is very good. Some customers had complaints regarding the speed. This is mostly due to number of systems connected by single broadband connection.

6.

The safety and security of Airtel network is rated very well by most of its customers. Safety of data is very important in any type of organization. Airtel with its own PC security suite helps organizations protect its data from theft and prevents it from harmful attacks.

7.

After sales service plays essential part of customer satisfaction. More than 10% customers have complaints regarding the after sales service of Airtel broadband.

But a number of customers have reported it excellent and very good.

8.

Customers feel Airtel broadband was much better than other competitive products of the same category. This shows the place Airtel has achieved in the minds of the customer in Mysore region.

9.

The overall satisfaction level is very high among customers.

RECOMMENDATIONS

I would like to give my suggestions which the company can make use of:-

1.

The customer rate quality of the service as the most relevant one and hence

Airtel Broadband services should maintain the quality in services and should make improvements in this feature.

2.

Some customers are planning to discontinue because of high billing and after sales service is not good. Though it is a small percentage the company should focus on these to keep the brand image in the minds of people.

3.

If any complaint is observed from the customers, it should be dealt quickly.

This will reduce the chance for dissatisfaction.

4.

Many dissatisfied customers asked for more information about other plans or change of plans. So the dissatisfaction may be due to providing wrong plans by the sales persons. So the company can make use of this opportunity to retain its customers by providing the right plans.

5.

There is a huge market potential for broadband services in the city so the company should take care of more promotional activities in which advertisement plays and effective role and hence to have a competitive edge over other brands.

6.

Lack of awareness about the plans is high among customers. So the company must provide an awareness program about the specialized plans for them.

7.

The detailed billing is provided as a value added service in Airtel broadband.

It is free of cost in its competitors like BSNL. So the company could provide the service as free of cost. It will help customers clear their doubts about billing and hence to improve their satisfaction level.

CONCLUSION

Airtel is one of the powerful brand in India and it has been successful in creating a strong impression on the consumer minds with its varied products and offerings to consumers on a huge scale to deliver its customers at its best.

The overall objective of the study was to find out how the customer’s impact on sales promotional activities of Airtel broadband services and to find out their satisfaction towards the service against its competitors. The study revealed the picture of customers perception and satisfaction which help Airtel broadband to encourage more people to be the customers/consumers of Airtel Broadband.

BIBLIOGRAPHY

T o obtain more information regarding the present study and to substantiate it with theoretical proof, the following references were made:

Marketing Management by Philip Kotler

Marketing Management by ICFAI publications

Marketing Research by ICFAI publications

Business Research Methods by ICFAI publications

Quantitative Methods by ICFAI publications.

Other jounals.

Internet and website sources are- www.google.com

www.bhartiairtel.com

www.airtelbroadband.in

www.wikipedia.com

ANNEXURE

QUESTIONNAIRE

QUESTIONNAIRE

Dear Sir/Madam, I N.V.Vibitha a student of INC, Mysore currently doing a project with

Airtel at Mysore would be indeed grateful to your co-operation is deeply socliated to provide the relevant information in filling this questionnaire.

The purpose of preparing this questionnaire is to try and understand the effectiveness of sales promotional activities undertaken by Airtel Broadband Services at Mysore East. I assure that the information will be kept confidential.

Please tick at the place that matches your opinion.

Name of the respondent -

Contact No and address -

Occupation -

Age-

1. Do you have internet connection at your home or workplace?

Yes [ ] No [ ]

2.

If yes, what kind of internet connection are you using currently?

Broadband

Dial-up

[ ] GPRS [ ]

[ ] others (Wireless...)

3. Which is the current service provider at your place?

AIRTEL [ ] TATA INDICOM [ ]

RELIANCE [ ] BSNL [ ]

OTHERS [ ]

4. How did you get to know about broadband service given by Airtel?

Advertising [ ] Friends [ ] Exisisting Users [ ] Others [ ]

5. Did advertising and sales promotion make an impact for your purchase?

Yes [ ] No [ ]

6. What makes you to prefer Airtel Connection at your place?

Offers

Speed & Safety

7. Rate the following :

[ ] Quality of Service [ ]

[ ] Brand Name [ ]

Poor-1 Fair-2 Good-3 Very Good-4 Excellent-5

Particulars

Speed

Poor Fair Good Very Good Excellent

Safety & security

Usage

Experience

After

Purchase

Servic(warrant y,

repair, customer service)

8. Are you aware of some other service provider in this category?

Yes [ ] No [ ]

9. If yes, compared to other product in this category, would you say that our product is..

Best [ ] better [ ] average [ ] worse [ ]

10. If you see the connection to be good, then what are the factors backed by in terms of satisfaction?

11. Which plan do you have currently?

12. Do you have any suggestions for Airtel Broadband services

..............................................................................................

.............................................................................................

Thank you very much for your kind co-operation and sparing your valuable time.

N.V.VIBITHA

Impatience is the new life, especially for the Indian youth. This is the peg that Airtel Telemedia Services has used to promote the 8mbps speed for Airtel Broadband service. And to catch the young audience, the campaign is using the digital medium in a big way, along with traditional media. The campaign is conceptualised by Rediffusion DYR.

The digital campaign premiered on April 6 on the mobile and Internet platforms, followed later by print, TV and BTL.

Commenting on the new campaign, R Chandrasekar, Head - Brand & Media, Bharti Airtel, said, “The campaign was developed to focus on the youth. It seeks to reposition Airtel Broadband as the answer to real high-speed Internet experience with the statement ‘Impatience is the new life. Live it with Airtel Broadband’. The campaign has identified a core target group for its campaign based on a study by IMRB. These are the 16-25 year old college students and young professionals. ‘Funsters’ are the most hungry for a real broadband experience.”

“The 360-degree communication campaign, led by a TVC, seeks to incorporate the digital medium as a strong element and engage with the TG on that platform. The campaign idea is ‘impatience is the new life’, enabled with the new Airtel

Broadband and new speed,” he added.

Chandrasekar further said, “We are taking forward four key initiatives and have created a microsite, impatientones.com.

The objective is to create communities. We have also started a contest on who will be the next impatient one. Besides the advertising activities, we are also loading the film on YouTube and putting up banners on all popular websites. We are also doing a WAP post on mobile.”

The TVC comprises a montage of shots of impatient young people who can’t wait for things to happen culminating with the introduction of Airtel Broadband with up to 8mbps of speed.

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