A comparative study of advertising strategies of Indian Telecom companies

Karishma Sehgal088520

Importance of the study

• The Indian telecommunications industry is one of the fastest growing in the world

• Competition among the players in the industry increases by a great deal.

• Advertising, extremely crucial in influencing the customer’s decision of adopting a particular mobile connection on the basis of the advertisements it generates.

Objectives of the study

• To draw comparisons between the advertising strategies of three players in the Telecom industry, namely Bharti Airtel, Vodafone Essar and Idea Cellular.

• To study how the advertising strategy of these companies has evolved over the years.

• To determine if the advertising strategy taken up by a Telecom company is in line with its business objectives, mission and values.

• To know the impact of advertisements of the aforementioned companies on customers and to study the effectiveness and the response towards their advertisements.

• To ascertain the success/failure of the advertising campaigns of the companies in

terms of positive/negative customer reactions and hike/fall in revenue.

Scope of the Study

• Companies researched on • Geographical region • Study of historical data • Services offered • Advertising medium

Methodology

Methods of data collection:a) Primary Researchb) Secondary Research

Research Design: c) Exploratory studiesd) Descriptive studies

Structure of questionnaire (Primary Data):e) Dichotomousf) Multiple choice questions

Limitations

• Unwillingness on the part of the respondents

• Time constraint

• Limited Sample of Respondents and Companies

Data Analysis and InterpretationBharti Airtel:

Secondary data:• Highest volume of TVCs generated in the Q1 of 2010 and also in Q1 of

2009.• Appeal used – Emotional/Humorous• Focus of ads – Schemes offered• Brand ambassadors• Brand slogans and their association with the ads• Alignment with vision and mission

Vodafone Essar:Secondary data:

• 5th highest volume of TVCs generated in the Q1 of 2010, whereas, it had the 2nd highest volume of TVCs in Q1 of 2009

• Appeal used - Humorous• Focus of ads – VAS• Brand ambassadors

• Brand slogans and their association with the ads• Alignment with vision and mission

Idea Cellular:Secondary Data:

• 2nd highest volume of TVCs generated in Q1 of 2010, whereas, it had the 5th highest volume of TVCs in Q1 of 2009

• Appeal used – Social• Focus of ads – Use of cell phones to better the society• Brand ambassadors• Brand slogans and their association with the ads• Alignment with vision and mission

Primary Data – Survey:

1. Airtel has the maximum customer base as per the survey conducted

2. People in general do not change their service provider often.

3. Brand image influences the decision of choosing a particular service provider the most. Advertisements come second.

4. Most of the respondents felt that quality of advertisements by Telecom companies influence their purchase decisions.

5. TVC’s have the maximum viewership according to the survey

6. Most respondents feel that Vodafone’s ads are the best.

7. Most respondents feel that advertisements made by Telecom companies inform them about their services.

Observations and SuggestionsObservations:

1. Airtel: Maximum customer base and highest revenue share in the industry. Vodafone: 3rd in terms of customer base and 2nd in terms of revenue share. Idea: 5th in terms of customer base and 4th in terms of revenue share.

2. Airtel’s TVCs are the most telecasted as per Q1 of 2010.

3. Vodafone seems to be the favorite choice in terms of TVCs.

4. Majority people think that an ad campaign launched by a service provider informs them about its services. However, there are still some customers who disagree with this notion.

5. The tagline of a brand is one of the most vital parts that describe it. An advertisement must hence ensure that it is synchronous with the brand’s tagline.

Suggestions:

1. Airtel:Focus on reducing its costs on advertisements.

2. Vodafone:The ads must be clearly in sync with tagline of the brand.

3. Idea:More clarity of information through the ads should be there.

Questions?

Thank You