Avg Monthly spend by purchasers Quality Price 1 2 3 4 1 800 1200 0 0 2 1200 4500 0 0 3 0 1900 0 0

9600 4 0 0 0 0

We have found the average monthly spend of each of the respondents, who have decided to purchase Vodafone. The total of the monthly average spend is Rs 600, which is much less when compared to Airtel.

Purchaser who will continue Quality Price 1 2 3 4 1 1 2 0 0 2 1 6 0 0 3 0 1 0 0

9600 4 0 0 0 0

We also found out the people who would stick to brand Vodafone. This figure comes to 78.5%, which is the closest to Airtel. Airtel has a figure of 83% in this category.

NOTE: Quality Superior (1) Good (2) Acceptable (3) Poor (4) Price Price not a barrier (1) Price is a minor barrier (2) Price is a major barrier (3) Price is a absolute barrier (4)

Analysis

Total Loyalty
Purchasers Airtel Aircel BSNL Vodafone 52 24 12 12 Purchasers % 52% 24% 12% 12% Continuity 43 16 12 11 Continuity% 83% 67% 100% 92%

The respondents were asked to choose a brand which they will purchase after choosing their belief about the price and quality. Out of 100% respondents 52 choose Airtel giving it a 83% purchasing behaviour.12 respondent chose Vodafone whereas 12 for BSNL and 24 for Aircel. Now from these purchasers we have asked them if they will continue with their preferred brand or not. We find that 43 out 52 respondents will continue with Airtel giving it a 83% brand loyalty where as BSNL have a 100% brand loyalty as they have 12 respondent which chooses to purchase the brands and continue using it. For Airtel the respondents who perceive Airtel to have a superior quality and for them price is not a barrier for purchase, have purchased brand Airtel and also continue using it. This gives Airtel 100% loyalty in the top box. Brand loyalty will lead to brand resilience. Brand resilience is a brands ability to protect itself and generate consistent volume and revenue, year after year. Resiliency also describes a brands ability to gain more than its fair share of category revenue and profits in the face of inadequate marketing or competitive attack. We find that Airtel has a brand loyalty of 83% amongst the respondents giving in 83% brand resilience. The brand loyal customers will stick to Airtel if other brands take out sales promotion and other techniques to win over Airtels customers. These loyal customers will help Airtel to generate cash flows and volumes over time to giving it continuity.

Equity Market Share Vs Market Share

Sales Airtel Aircel BSNL Vodafone Total 28080 13620 6120 9600 57420 Mkt Share % 49% 24% 11% 16% 100% Loyalty 83% 67% 100% 92% Loyalty Contribution 23306.4 9125.4 6120 8832 47383 49% 19% 13% 19% 100% Equity share

At the time of the interview we had asked respondents for their monthly average spend on the brands they will purchase. From this we find out total sales for each brand. The brand sales give us an idea of the expenditure of the respondents for all the brands. After that we can simply find out the market share of each brand, this can be done by finding the sales contribution of each brand to the total sales of the entire brands. We see that Airtel has the highest market share compared to all the brands for the respondents. We have already found the loyalty of the respondents, therefore we find out the sales generated by the loyal customers. Airtel again has the maximum sales generated by the by the loyal customers. From this we can find the equity index of each brand. The total of the loyalty sales for each brand divided by the total loyalty sales for all the brands, gives us the equity share for each brand. We find the equity share is high compared to other brands; the share is 49% the other brand BSNL has 13%. Whereas Aircel and Vodafone who had a brand loyalty of 67% and 92% each can only convert an equity share of 19% respectively as the respondent who will stick with these brands generate a small sum of revenue for the respective brands. Equity share metric reflects the relative percentage that a brand owns of the sales attributable to all loyal customers in the category. It represents the brands share of the categorys most desirable, and profitable, customers. It can be translated into both sales and profit figures but is specific to brand performance and has no category equivalent. In our example below, Brand A has equity share that is disproportionate to its market share.

Leveragability
Sales Q1P2 Airtel Aircel BSNL Vodafone 9800 4600 950 1200 Loyalty Q1P2 83% 50% 19% 24% Loyalty sales Q1P2 8134 2300 180.5 288 Sales Q2P1 2000 2300 420 1200 Loyalty Q2P1 86% 53% 100% 28% Loyalty sales Q2P1 1720 1219 420 336 Leveragability 68% 39% 0% 0%

Brand leveragability attempts to measure the relative importance of product quality with respect to price, suggesting that if the degree of quality perception is much stronger than price, there is a potential to leverage that perception into other areas beyond the immediate market. To find the brand leveragability we have found out the leveragability index which will help us to quantify the leveragability of the brand. To find this index we have taken the second best grids after superior quality and price not a barrier as the customers are in this grid. The grids taken are superior quality and price a minor barrier (Q1P2) and good quality and price not a barrier (Q2P1). For these grids we find the total sales as well as the loyalty amongst customers. From this we get the loyalty sales for each of the grid. The leveragability index can be found out by the formula Q1P2 loyalty sales/ (Q2P1 loyalty sales Q1P2 loyalty sales). The leveragability index gives us a picture that the highest leveragability is for Airtel 68% coming second is Vodafone with 39%.

Weightage Quality Price 1 2 3 4 5 4 3 2 4 3 2 1 3 2 1 1 2 1 1 1 1 2 3 4

Quadrants/Brands Q1P1 Q1P2 Q2P1 Q2P2 Q3P3 Total

Airtel 50 96 40 120 3 309

BSNL 5 0 0 0 0 5

Reliance 0 0 0 0 1 1

Vodafone 0 4 4 6 1 15

Brands

Market Share

Brand Index 55 5 1 15

Equity

Share Index 37.17% 0.20% 0.04% 3.60%

Quality

Airtel BSNL Reliance Vodafone

68% 4% 4% 24%

The main aim of finding the brand equity of a brand is to find the marketing ROI. We can find this with the help of brand equity index. This index gives us the contribution of loyal customer. From our question to the respondent will they continue with the brand which they purchase we have found out the loyalty contribution and we know on which grid of the quality and price grid are each of the respondents. After this exercise we assign weights to the top grid and all the grids Q1P1 has better weights that Q1P2, these weights are assigned from 5 to 1, 5 being the highest. Now we know the weights for each grid, we multiply the loyal customers with these weights. We find out the total of the loyal customers into the weights for the grids, the total of this gives us the brand equity index for each brand. From the BEI share we can find the share quality index which is the true value or equity of the brand in the marketplace. Share quality index can be found by multiplying the brand equity index into the market share. We find that Airtel has a share quality index of 37.17%.