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Management Thesis – I, Final Report 2009

Introduction

The major part of the report is dealing with study of the effectiveness of the advertisement
strategies adopted by Vodafone Essar with special reference to Ernakulam district. The objective
of the study is to understand the advertisement strategies of Vodafone Essar, to make a study on
the effectiveness of recent advertisement campaign of Vodafone – “Indian Premiere League
Season - 2” and to make a study on the effectiveness of the advertisement strategies of
Vodafone in their current market.

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 74.08 million customers**. Over the years,
Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom
Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective
Advertiser of the Year’. The company is a tie up of two groups namely Vodafone Group and
Essar Group.

Vodafone Group is the world’s leading international mobile communications corporation. It


currently has equity interests in 27 countries across 5 continents and 40 partner networks with
over 303 million proportionate customers worldwide. The Essar Group is Vodafone’s principal
partner in India. The Essar Group is a diversified business corporation with a balanced portfolio
of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications,
Shipping Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices
in Asia, Africa, Europe and the Americas.

The study has found out that the advertisement strategies that have been used by Vodafone Essar
have caused in a better results in their sales. This has proved by using the research tools such as
hypothesis testing and correlation. This research will help the company to make more
innovations in their advertisement strategies.

1 INC, Kochi
Management Thesis – I, Final Report 2009

Problem Statement

The research statement is

“To make a study on the effectiveness of the advertisement strategies adopted by Vodafone
Essar with special reference to Ernakulam District”.

The research that has been given above is not actually a problem statement. Here, the researcher
has to find out whether the advertisement is effective or not. So, the benefit will be that the
company will get to know whether they need to make any further changes in their strategies or
do they need to spend more on the advertisements. So that they will have a better annual result in
the next financial year.

2 INC, Kochi
Management Thesis – I, Final Report 2009

Research Objectives

The objectives of the research are:

 To understand the advertisement strategies of Vodafone Essar.

 A study on the effectiveness of recent advertisement campaign of Vodafone – “Indian

Premiere League Season - 2”.

 A study on the effectiveness of the advertisement strategies of Vodafone in their current

market.

 Effectiveness of advertisement on the customers of Kochi.

This comprises the objectives and the basic problems to which the study will probe in to. And
this will help the company in their next financial year.

3 INC, Kochi
Management Thesis – I, Final Report 2009

Background Material

Background studies are very necessary for having a research in any field. It will help the
researcher in understanding the topic that he is going to research for, the industry that he have
selected for making the study on his topic, the company in which he is going to do the study.

The background studies that have been conducted in this research are

 Topic - Advertisement Strategies

 Industry - Telecom

 Company - Vodafone Essar.

4 INC, Kochi
Management Thesis – I, Final Report 2009

What is Advertisement Strategy?

Advertising is a form of communication used to help sell products and services. Typically it
communicates a message including the name of the product or service and how that product or
service could potentially benefit the consumer. However, advertising does typically attempt to
persuade potential customers to purchase or to consume more of a particular brand of product or
service. Modern advertising developed with the rise of mass production in the late 19th and early
20th centuries.

The strategies that have been used as advertisement strategies are:

MEDIA

Commercial advertising media can include wall paintings, billboards, street furniture
components, printed flyers and rack cards, radio, cinema and television adverts, web banners,
mobile telephone screens, etc.

COVERT ADVERTISING

Covert advertising, also known as guerrilla advertising, is when a product or brand is embedded
in entertainment and media. For example, in a film, the main character can use an item or other

5 INC, Kochi
Management Thesis – I, Final Report 2009

of a definite brand, as in the movie Minority Report, where Tom Cruise's character John
Anderton owns a phone with the Nokia logo clearly written in the top corner, or his watch
engraved with the Bulgari logo.

TELEVISION COMMERCIALS

The TV commercial is generally considered the most effective mass-market advertising format,
as is reflected by the high prices TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States is known as the most

prominent advertising event on television. The average cost of a single thirty-second TV spot
during this game has reached US$3 million (as of 2009).

INFOMERCIALS

There are two types of infomercials, described as long form and short form. Long form
infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to two
minutes long. The main objective in an infomercial is to create an impulse purchase, so that the
consumer sees the presentation and then immediately buys the product through the advertised
toll-free telephone number or website.

CELEBRITIES

6 INC, Kochi
Management Thesis – I, Final Report 2009

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and promote specific stores or products. Advertisers often
advertise their products, for example, when celebrities share their favorite products or wear
clothes by specific brands or designers. Celebrities are often involved in advertising campaigns
such as television or print adverts to advertise specific or general products.

About Indian Telecom Industry

(Source: http://www.fonearena.com/blog/wp-content/uploads/2009/05/telecom.jpg)

Telecom in the real sense means transfer of information between two distant points in space.
India has one of the fastest growing telecom networks in the world with its high population and
development potential. Reliance, BSNL, Airtel, Aircel, Idea Cellular, Tata Indicomm, Vodafone,
MTNL, and Loop Mobile are other major operators in India. However, rural India still lacks

7 INC, Kochi
Management Thesis – I, Final Report 2009

strong infrastructure. India's public sector telecom company BSNL is the 7th largest telecom
company in world.

For the past decade or so, telecommunication activities have gained momentum in India. Efforts
have been made from both governmental and non-governmental platforms to enhance the
infrastructure. The idea is to help modern telecommunication technologies to serve all segments
of India’s culturally diverse society, and to transform it into a country of technologically aware
people.

EVOLUTION OF THE INDUSTRY-IMPORTANT MILESTONES

Year History of Indian Telecommunications

1851 First operational land lines were laid by the government near Calcutta (seat of British
power)
1881 Telephone service introduced in India

1883 Merger with the postal system


1923 Formation of Indian Radio Telegraph Company (IRT)
1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company
(IRCC)
1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone
and Telegraph (PTT), a monopoly run by the government's
Ministry of Communications
1985 Department of Telecommunications (DOT) established, an exclusive provider of
domestic and long-distance service that would be its own regulator
(separate from the postal system)
1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar
Nigam Limited (VSNL) for
International telecommunications and MahaNagar Telephone
Nigam Limited (MTNL) for service in metropolitan areas.

8 INC, Kochi
Management Thesis – I, Final Report 2009

1997 Telecom Regulatory Authority of India created.


1999 Cellular Services are launched in India. New National Telecom Policy is adopted.
2000 DoT becomes a corporation, BSNL

(Source: TRAI Report 2006-07)

OPERATOR-WISE MARKET SHARE OF GSM SERVICE PROVIDERS


(As on 30th September 2008)

(Source: TRAI Report 2008-09)

OPERATOR-WISE MARKET SHARE OF CDMA PROVIDERS


(As on 30th September 2008)
9 INC, Kochi
Management Thesis – I, Final Report 2009

(Source: TRAI Report 2008-09)

RATIO OF MARKET SHARE OF PUBLIC AND PRIVATE PLAYERS

(Source: DoT)

TELECOM SERVICE PROVIDERS BY END OF 4TH QUARTER (2008)

10 INC, Kochi
Management Thesis – I, Final Report 2009

Company Sales ( Rs. in crores)


BSNL 10747.79
Bharti Airtel 8381
Vodafone Essar 4681.44
Reliance Communications 4318.74
Idea Cellular 2150.84
Tata Teleservices 2057.30

(Source: The Economic Times)

About Vodafone Essar

(Source: http://www.vodafone.in/existingusers/pages/aboutus.aspx)

Vodafone Essar is the Indian subsidiary of Vodafone Group and commenced operations in 1994
when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. The company
now has operations across the country with over 74.08 million customers**. Over the years,
Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom
Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective

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Management Thesis – I, Final Report 2009

Advertiser of the Year’. The company is a tie up of two groups namely Vodafone Group and
Essar Group.

Vodafone Group is the world’s leading international mobile communications corporation. It


currently has equity interests in 27 countries across 5 continents and 40 partner networks with
over 303 million proportionate customers worldwide. The Essar Group is Vodafone’s principal
partner in India. The Essar Group is a diversified business corporation with a balanced portfolio
of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications,
Shipping Ports & Logistics, and Projects. Essar employs more than 50,000 people across offices
in Asia, Africa, Europe and the Americas.

Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile
transition being unveiled today. Along with the transition, cheap cell phones have been launched
in the Indian market under the Vodafone brand. The company also plans to launch co-branded
handsets sourced from global vendors as well.

A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage
Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-world
into India."

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is
expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a
global low-cost handset procurement deal with ZTE.

CUSTOMER GROWTH RATE OF GSM BY BEGINNING OF 2008

12 INC, Kochi
Management Thesis – I, Final Report 2009

(Source: http://img.cellular-news.com)

(Source: http://www.medianama.com/wp-content/uploads/2009/07/q2-09-vodafone-arpu.jpg)

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Management Thesis – I, Final Report 2009

VODAFONE SPONSORES ENGLAND CRICKET TEAM FOR LAST 12 YEARS

(Source: http://cricket.vodafone.co.uk/ england_cricket.Par.92856.Image.o.gif)

English cricket faced the repercussion of global meltdown with global cell phone service
provider major Vodafone declining to renew the 12-year-old sponsorship deal with the national
team. The England cricket team thus gained unwanted membership of an ever-expanding club in
global sport hit by global recession.

VODAFONE LAUNCHED APPLE IPHONE 3G IN INDIA

Vodafone launched the Apple iPhone 3G in India. It was available from 22nd of August 2008.

14 INC, Kochi
Management Thesis – I, Final Report 2009

(Source: http://images.intomobile.com/wp-content/uploads/2008/05/iphone-vodafone.jpg)

Literature Review

15 INC, Kochi
Management Thesis – I, Final Report 2009

The literature review gives an overall overview of the research. A literature review surveys
scholarly articles, books and other sources relevant to a particular issue, area of research, or
theory, providing a description, summary, and critical evaluation of each work. The purpose is to
offer an overview of significant literature published on a topic.

Here, the literature review is mainly consisting of a the advertisement strategies of Vodafone, the
previous studies that has been conducted for Vodafone and the studies conducted on the
advertisement strategies of any other company.

Advertisement of Vodafone

16 INC, Kochi
Management Thesis – I, Final Report 2009

(Source: http://www.vodafone.in/existingusers/hns/pages/happytohelp.aspx)

After successfully rebranding 'Hutch' as 'Vodafone', Vodafone Essar started expanding its presence in India. The
almost all media channels to advertise its services.

It not only advertised on television, but also in newspapers, the radio, and on hoardings across
the country.

The Making of ZooZoos Campaign

In November 2008, Vodafone Essar decided to launch an advertising campaign to communicate


the VAS offered by the company. The company planned to air the ads during IPL-Season 2. It
was decided that O&M India, the advertising agency creating campaigns for Vodafone Essar,
would create separate ads for each service. During IPL-Season 2, a different ad would be shown
each day, to attract the viewers' interest.

The Launch

On April 20, 2009, Vodafone Essar launched the ZooZoos advertising campaign. During the
IPL-Season 2, a total of 30 different TVCs including Cricket Alerts, Beauty Alerts, Phone
Backup, Chhota Credit, Vodafone Maps, Vodafone Call Filter, Live Games, Musical Greetings,

etc. were aired.

17 INC, Kochi
Management Thesis – I, Final Report 2009

The Response

Despite the high brand recall that this advertising campaign ensured for Vodafone Essar, not everyone was
impressed by the company's ad strategy. Some analysts were doubtful about whether the ads would attract
people living in the semi-urban and rural areas of India. They also wondered whether the popularity of the

ZooZoos advertising campaign would actually help the company increase its revenues. In April 2009, as
the TVCs started being aired on television, they created the necessary buzz both in traditional as well as in
social networking sites like Facebook, and Twitter and video sharing website, YouTube.

All the TVCs were available both on YouTube and Twitter. For the week ended April 25, 2009,
one ad on fashion tips was viewed 13,000 times on YouTube. On Google.co.in, the word
'ZooZoo,' became the third highest search word on May 04, 2009.

(Source: http://4.bp.blogspot.com/zoozoo+wallpaper-767997.jpg)

Vodafone Previous Research Studies

18 INC, Kochi
Management Thesis – I, Final Report 2009

There are a number of studies that have been done before by several universities and other sites
regarding various issues that is had happened in Vodafone. Here, there is an overview of few of
the studies.

Case Study No.1*

The case explains the problems faced by Vodafone Group plc (Vodafone), a leading global
mobile company in early 2006.

Site is http://www.icmrindia.org/casestudies/catalogue/Business
%20Strategy/Vodafone%20in%20Trouble.html

Case Study No. 2

The study has been done by the research team of Vodafone and has been on the topic “The
impact of mobile phones, India”

Site is http://www.scribd.com/doc/13594968/VodafoneSMSONE

Case Study No. 3

The study has been based on the rebranding of Hutch to Vodafone.

Site is http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG184.htm

Case Study No. 4

The study was done by Vodafone for their promotional activities in India.

Site is http://www.thetimes100.co.uk/case-study--cause-marketing---vodafones-partnership-
with-national-autistic-society--41-238-4.php

Case Study No. 5

19 INC, Kochi
Management Thesis – I, Final Report 2009

This study was done by Vodafone to check the effectiveness of advertisement campaign done by
them.

Site is http://www.thetimes100.co.uk/case-study--sponsorship-marketing-mix--41-131-5.php

Case Study No. 6

This research was done by Vodafone to understand what women expects from a mobile phone.

Site is http://www.experientia.com/blog/vodafone-research-on-what-women-expect-from-
mobile-phones/

Advertisement Previous Research Studies

20 INC, Kochi
Management Thesis – I, Final Report 2009

There are a number of studies that have been done before by several universities and other sites
regarding advertisements. Here, there is an overview of few of the studies.

Case Study No. 1

This is an operations research study done by a student of Cambridge University on the topic
“Sales response to Advertising”

Site is http://www.jstor.org/pss/167271

Case Study No. 2

This is a research done by Dr. Krugman is Vice President of MARPLAN, a division of


Communications Affiliates, Inc., New York City on the topic “The impact of television
advertising”

Site is http://poq.oxfordjournals.org/cgi/content/abstract/29/3/349

Case Study No. 3

This is a research study done by George P Moschis on the topic “A longitudinal study of
television advertising effects”

Site is http://www.jstor.org/pss/2488623

Case Study No. 4

This is research done by Frank M Bass on the topic “A simultaneous equation regression
study of Advertising and Sales of Cigarettes”

Site is http://www.jstor.org/pss/3150135

Case Study No. 5

21 INC, Kochi
Management Thesis – I, Final Report 2009

This is a research study done by Michael J Baker on the topic “The impact of physically
attractive models on advertising evaluations”

Site is http://www.jstor.org/pss/3151194

Research Methodology

22 INC, Kochi
Management Thesis – I, Final Report 2009

The research methodology includes the information regarding the sample size design, data
collection methods and the analytical tools used.

Here also the same is explained in detail regarding the sample size, data collection methods and
the analytical methods used in this research.

Data Collection Methods

23 INC, Kochi
Management Thesis – I, Final Report 2009

There are so many ways in which data shall be collected. The methods that have been used for
collecting the data are:

Primary Research

 Questionnaire Method

 Direct Interview Method

Secondary Research

 Books

 Internet

 Articles

 Newspapers

 Magazines

Both of these methods have been used for collecting the data. Questionnaire method was used for
collecting the primary data. This has been done by firstly preparing an appropriate structured
questionnaire. Then this questionnaire was given to 50 customers who belong to different age
groups at the various shopping malls in Ernakulam. This data has been used for data analysis.

Secondary data for the purpose of research has been mainly taken from internet and various
magazines. Various journals have been used for the purpose of reference.

Sample Design
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Management Thesis – I, Final Report 2009

Sample size : 50
Sample selection criteria : Random selection
Sample selection area : Ernakulam

The samples have been selected from Ernakulam districts from the various mall shoppers. The
samples include people from all age criteria and the analysis has been done on this basis.

Analysis Tools Used

25 INC, Kochi
Management Thesis – I, Final Report 2009

There are only two analysis tools that has been used for this research. They are

 Hypothesis Testing

 Chi-Square Testing

Hypothesis testing has been used for testing the following

H0: The advertisement strategies adopted by Vodafone is effective.

H1: The advertisement strategies adopted by Vodafone is not effective.

Chi-Square Testing has been used to find out whether there the advertisement strategies used by
Vodafone is effective or not. For this the data that has got during the primary data collection
methods has been used.

26 INC, Kochi
Management Thesis – I, Final Report 2009

Data Analysis and Interpretation

Data analysis and interpretation is the main part of any research. In this management thesis also
data analysis has been done by going through each and every question that has been put for the
questionnaire.

1. SEX RATIO OF THE RESPONDENTS

S.NO. SEX NUMBER AGE (%)


A Male 39 78%

B Female 11 22%

INTERPRETATION:

The graphical representation of the table shows that out of 50 respondents 78% were male and
22% were female.

27 INC, Kochi
Management Thesis – I, Final Report 2009

2. AGE GROUP OF RESPONDENTS

S.NO. AGE GROUP NUMBER %AGE


A 15-25 21 42%
B 25-35 18 36%
C 35-45 6 12%
D 45 above 5 10%

INTERPRETATION:

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

28 INC, Kochi
Management Thesis – I, Final Report 2009

3. MOBILE PHONE USERS

SL. NO PARTICULARS %
1 Users 100%
2 Non- Users 0%

INTERPRETATION:
From the above pie chart it is clear that the people from whom I have collected were all mobile
users.

4. AWARENESS ABOUT ALL TELECOMMUNICATIONS SERVICES

SL. NO RESPONSE NUMBER %


1 Yes 45 90%
2 Not All 5 10%

29 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:
Among the people whom I have taken as the samples, 90% of the people know about all the
telecommunications services available in India, 10% don’t know about all the services.

5. CURRENT SERVICE PROVIDER

S.NO. SERVICE PROVIDER NUMBER %

1 Airtel 12 24%

2 Vodafone 14 28%

3 Idea 10 20%

4 Reliance 5 10%

5 BSNL 6 12%

6 Tata Indicomm 3 6%

30 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the data that I have collected the result is that Airtel and Vodafone is having the highest
rate of customers. Idea has around 20%, 10% to Reliance, 12% to BSNL and the rest to Tata
Indicomm.

6. VODAFONE AWARENESS SERVICES

Sl. No Response Number %


1 Yes 49 98%
2 No 1 2%

31 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the data, it is clear that Vodafone services are familiar to 98% of the samples and only 2%
responses that they don’t know about Vodafone services.

7. VODAFONE AWARENESS SOURCE

SL. NO SOURCE NUMBER %


1 Advertisements 35 70%
2 Hoardings 7 14%
3 Newspapers 3 6%
4 Mouth Publicity 5 10%

INTERPRETATION:

From the data around 70% of the samples came to know about Vodafone from advertisements,
14% from hoardings, 10% by mouth publicity and the rest from newspapers.

32 INC, Kochi
Management Thesis – I, Final Report 2009

8. ROLE OF ADVERTISING WHILE PURCHASING MOBILE CONNECTIONS

SL. NO RESPONSE NUMBER %


1 To Full Extent 6 12%
2 To Some Extent 30 60%
3 Not At All 5 10%
4 No Opinion 9 18%

INTERPRETATION:

From the data, it is clear that among the total samples, 76% says that advertising plays an
important role while they purchase a mobile connection and the rest says no.

9. SOURCE OF ADVERTISEMENT

Sl. No Source Number %


1 Television 34 68%
2 Radio 9 18%
3 Newspaper 4 8%
4 Magazines 3 6%

33 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

Among the total samples, 68% says that they are mainly watching advertisements from
television, 18% says that they came to know from radio, 8% from newspaper and the rest from
magazines.

10. TELECOMMUNICATION WITH GOOD ADVERTISING

SL. NO SERVICE PROVIDER NUMBER RESPONSE


1 Airtel 10 20%
2 Vodafone 21 42%
3 Idea 9 18%
4 Reliance 7 14%
5 Others 3 6%

34 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

The service provider with best advertising according to the samples is Vodafone with 42%,
Airtel with 20%, idea with 18%, Reliance with 14% and the rest for others.

11. HOW WELL DID THE ADVERTISEMENT OF THE VODAFONE CATCH YOUR
ATTENTION?

SL. NO RESPONSE NUMBER %

1 Very Well 26 52%

2 Some What Well 10 20%

3 Undecided 6 12%

4 Not At All 8 16%

VODAFONE ADVERTISEMENT

16%
Very Well

12% Some What Well


52% Undecided

35 Not At All INC, Kochi


20%
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the data it is clear that around 50% of the samples say that they understood about the
advertisements of Vodafone very well. 20% says that they understood it some what well, 16%
says that they have not at all understood about the ads, and the rest of the samples are in the
mode undecided.

12. DO YOU THINK THAT ADVERTISEMENT MADE BY COMPANY INFORMS


YOU ABOUT THEIR NEW PRODUCTS?

Sl. NO. PARTICULARS NUMBER %

1 Yes 34 68

2 No 12 24

3 Undecided 4 8

36 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

Out of the total samples, 68% of the samples say that they are getting informed about the new
products of the service providers through advertisements. 24% says that they are not getting
informed about through advertisements and the remaining says undecided.

13. BASED ON ADVERTISEMENTS MADE BY COMPANY, WOULD YOU LIKE TO


GO FOR MORE CONNECTION FOR YOU OR UR FAMILY IN FUTURE?

SL. NO RESPONSE NUMBER %

1 Yes 38 76%

2 No 7 14%

3 Undecided 5 10%

37 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the total samples 76% says that they would like to go for more connections for their
family, 14% of samples says no for further connections and the rest says undecided.

14. SINCE HOW LONG YOU ARE USING VODAFONE SERVICES?

SL. NO RESPONSE NUMBER %

1 Less than 1 month 2 14%

2 2 – 6 months 1 8%

3 6 – 12 months 3 21%

4 More than 1 year 8 57%

38 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the total users of Vodafone i.e. 14 samples, 57% of them are using the service for the more
than 1 year, 21% of them are using it for 6-12 months, 14% of them used for less than 1 month
and the rest used it for 2 – 6 months.

15. WHY YOU ARE NOT USING VODAFONE SERVICES?

SL. NO RESPONSE NUMBER %

1 Lack of awareness 6 17%

2 High Prices 20 55%

3 Poor Services 4 11%

4 Poor Network 6 17%

39 INC, Kochi
Management Thesis – I, Final Report 2009

INTERPRETATION:

From the data it is clear that most of the people were not opting Vodafone services only because
of the reason that it is costlier, 17% says that it is because of poor network, another 17% says
that it is because of lack of awareness and the rest says that it is because of poor services.

Hypothesis Testing
40 INC, Kochi
Management Thesis – I, Final Report 2009

Hypothesis testing is way of analyzing the data and the hypothesis that is to be tested in this
research is

H0: The advertisement strategies adopted by Vodafone is effective.

H1: The advertisement strategies adopted by Vodafone is not effective.

ADVERTISEMENT OBSERVED EXPECTED (O-E) (O-E)2/E


EFFECTIVENESS
To Some Extent 30 12.5 17.5 24.5

To Full Extent 6 12.5 -6.5 3.38

Not At All 5 12.5 -7.5 4.5


No Opinion 9 12.5 -3.5 0.98
Total 50 50 33.36

Degree of freedom = (n-1)

= 4-1 =3 at 5% significance

Calculated value = 33.36

Tabulated value = 35.689

The calculated value of chi-square is 33.36; the tabulated value at 5% significance is 35.789. The
calculated value of chi-square is lesser than the tabulated value. Hence the null hypothesis is
accepted.

Limitations of Study
41 INC, Kochi
Management Thesis – I, Final Report 2009

 Time was the main constraint.

 The researcher has to complete her work with in the stipulated time limit

and the sample size was restricted to 50 respondents.

 Since the project is of qualitative nature there was participants biased in

some cases.

 The studies limited to customers using mobile connections in Kochi.

 The respondents were of different perceptions and hence the researcher

has a tedious task at hand in locating the respondents from Kochi.

 The respondents were not open up to the questions asked by the

researcher.

42 INC, Kochi
Management Thesis – I, Final Report 2009

Findings and Suggestions

FINDINGS

 The strategies that have been adopted by Vodafone Essar are excellent compared to other
service providers.

 The hypothesis test proves that the advertisement of Vodafone is effective.

 The respondents have got good impression about Vodafone Essar.

 The recent advertisement of Vodafone Essar – “IPL Session – 2” has made a great impact
in the history of telecommunications.

 Most of the respondents of Kochi have taken Vodafone connection for the last 1 year.

 The customers of Vodafone are satisfied with their services and advertisement strategies.

 The customers of Vodafone are brand loyal.

SUGGESTIONS

 The company can have more innovative advertisements and can allot more finance in it.

 The advertisements that are being done by the company should have more contents.

 The customers should understand about the new products that are being launched by the
company.

 Interactive advertisement should be made by Vodafone so that the customers of other


service providers will start using Vodafone.

43 INC, Kochi
Management Thesis – I, Final Report 2009

Conclusions

This management thesis has been done for the company Vodafone Essar for understanding the
effectiveness of their advertisements for the people of Kochi. The study proved that the
advertisement has got relevant effectiveness to the people of Kochi while they try for a new
mobile connection.

The customers of Vodafone are happy with the services of the company and they suggest the
advertisements of Vodafone should be more interactive and funny like the one that has been
done by them during the IPL Session – 2. The customers say that the people who are not usually
watching television came to know about the advertisement and they say that this was the
effectiveness of that advertisement.

44 INC, Kochi
Management Thesis – I, Final Report 2009

Appendices

QUESTIONNAIRE

Hi! I am a MBA student representing ICFAI NATIONAL COLLEGE. I am doing a research to


assess a study on “The effectiveness of the advertisement strategies adopted by Vodafone Essar
with special reference to Ernakulam District”.

I will be obliged if you spare few minutes from your time to fill up this questionnaire. I assure
you that the information imparted by you will be kept confidential.

Q1) Do you have a mobile phone?

o Yes
o No
Q2) Are you aware about all the telecommunications service?

o Yes
o No
o Not All
If yes, then which operator’s Service do you use?

o Vodafone
o Airtel
o Idea
o Reliance

45 INC, Kochi
Management Thesis – I, Final Report 2009

o BSNL
o Tata Indicomm ( If not Vodafone then go to Q13 )

Q3) Are you aware about Vodafone Essar services?

o Yes
o No (If No, then go to Q12 )
Q4) From which source you came to know about Vodafone?

o Advertisement (Multi-choice)
o Hoardings
o Newspapers
o Mouth Publicity
Q5) While purchasing a connection do advertising plays any role?

o To full extent

o To some extent

o Not at all

o No opinion

Q6) From where did you watch the advertisement most?

o Television
o Radio
o Newspaper
o Magazines
Q7) Which telecommunication have good advertising?

o Air Tel

46 INC, Kochi
Management Thesis – I, Final Report 2009

o Vodafone

o Idea

o Reliance

o Others

Q8) How well did the advertisement of the Vodafone catch your attention?

o Very well

o somewhat well

o Undecided

o Not at all

Q9) Do you think that advertisement made by company informs you about their new products?

o Yes

o No

o Undecided

Q10) Based on advertisements made by company, would you like to go for more connection for
you or your family in future?

o Yes.

o No.

o Not decided.

47 INC, Kochi
Management Thesis – I, Final Report 2009

Q11) Since how long you are using Vodafone services?

o Less than 1 month


o 2-6 months
o 6-12 months
o More than 1 year
Q12) What makes you unaware about Vodafone?

o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)

Q13) Why you are not using Vodafone services?

o Lack of awareness (Multi-choice)


o High Prices
o Poor Services
o Poor network
Q14) Would you like to recommend Vodafone to others?

o Yes
o No
Q15) Give your suggestions to help in serve you better.

_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________

Name: ________________

48 INC, Kochi
Management Thesis – I, Final Report 2009

Age: ___ years

Sex: Male/Female

Contact no.: ___________

Date: __________

Bibliography

BOOKS

1. Marketing Management – I, ICFAI University Press, Dehradun.

2. Business Research Methods, ICFAI University Press, Dehradun.

3. Marketing Research, ICFAI University Press, Dehradun.

4. Quantitative Methods, ICFAI University Press, Dehradun.

REPORTS

1. Dot Report 2008-2009.

2. Telecom Sector Report 2008-2009

49 INC, Kochi
Management Thesis – I, Final Report 2009

3. TRAI Report 2007-2008

4. TRAI Report 2008-2009

5. Vodafone Annual Report 2008-2009

WEBSITES

http://www.fonearena.com/blog/wp-content/uploads/2009/05/telecom.jpg)

http://www.vodafone.in/existingusers/pages/aboutus.aspx)

http://img.cellular-news.com)

http://www.medianama.com/wp-content/uploads/2009/07/q2-09-vodafone-arpu.jpg)

http://cricket.vodafone.co.uk/england_cricket.Par.92856.Image.o.gif)

http://images.intomobile.com/wp-content/uploads/2008/05/iphone-vodafone.jpg)

http://4.bp.blogspot.com/zoozoo+wallpaper-767997.jpg)

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Vodafone%20in
%20Trouble.html
http://www.scribd.com/doc/13594968/VodafoneSMSONE

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG184.htm

http://www.thetimes100.co.uk/case-study--cause-marketing---vodafones-partnership-with-
national-autistic-society--41-238-4.php

http://www.thetimes100.co.uk/case-study--sponsorship-marketing-mix--41-131-5.php

http://www.experientia.com/blog/vodafone-research-on-what-women-expect-from-mobile-
phones/

50 INC, Kochi
Management Thesis – I, Final Report 2009

http://www.jstor.org/pss/167271

http://poq.oxfordjournals.org/cgi/content/abstract/29/3/349

http://www.jstor.org/pss/2488623

http://www.jstor.org/pss/3150135

http://www.jstor.org/pss/3151194

51 INC, Kochi

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