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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.
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
“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
market.
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
Industry - Telecom
4 INC, Kochi
Management Thesis – I, Final Report 2009
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.
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.
(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.
1851 First operational land lines were laid by the government near Calcutta (seat of British
power)
1881 Telephone service introduced in India
8 INC, Kochi
Management Thesis – I, Final Report 2009
(Source: DoT)
10 INC, Kochi
Management Thesis – I, Final Report 2009
(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
11 INC, Kochi
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 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.
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)
13 INC, Kochi
Management Thesis – I, Final Report 2009
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 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 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,
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)
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.
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
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
Site is http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG184.htm
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
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
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/
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.
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
Site is http://poq.oxfordjournals.org/cgi/content/abstract/29/3/349
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
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
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.
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
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
24 INC, Kochi
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.
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
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 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.
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
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
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.
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.
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.
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.
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
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
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.
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?
3 Undecided 6 12%
VODAFONE ADVERTISEMENT
16%
Very Well
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.
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.
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.
2 2 – 6 months 1 8%
3 6 – 12 months 3 21%
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.
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
= 4-1 =3 at 5% significance
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
The researcher has to complete her work with in the stipulated time limit
some cases.
researcher.
42 INC, Kochi
Management Thesis – I, Final Report 2009
FINDINGS
The strategies that have been adopted by Vodafone Essar are excellent compared to other
service providers.
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.
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.
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
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.
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 )
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
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
o Less Advertisements
o Less Publicity
o Others
(If others then mention ________________________)
o Yes
o No
Q15) Give your suggestions to help in serve you better.
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
Name: ________________
48 INC, Kochi
Management Thesis – I, Final Report 2009
Sex: Male/Female
Date: __________
Bibliography
BOOKS
REPORTS
49 INC, Kochi
Management Thesis – I, Final Report 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