KOUSTUV BUSINESS SCHOOL 1 | Page DISSERTATION PROJECT REPORT ON ADVERTISING IN INDIAN TELECOM INDUSTRY & ITS IMPACT ON CUSTOMERS Towards the Partial fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT Submitted By :- GOPAL KUMAR AGARWAL AICTE NO. 08/OR/KBS/PGDM/FT/029 Under the Guidance of MR. SUSANTA KUMAR MISHRA KOUSTUV BUSINESS SCHOOL KOUSTUV BUSINESS SCHOOL PATIA, BHUBANESWAR
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A Project on Telecom Industry by Gopal Kumar Agarwal
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KOUSTUV BUSINESS SCHOOL 1 | P a g e
DISSERTATION PROJECT REPORT
ON
ADVERTISING IN INDIAN TELECOM INDUSTRY
& ITS IMPACT ON CUSTOMERS
Towards the Partial fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT
I hereby declare that the project entitled “ A Project report on Advertising in Indian Telecom Industry & its impact on Customers has been prepared by me during my academic year 2008-2010 under the guidance of my faculty guide Mr. Susanta Kumar Mishra.
I also declare that this project is the result of my effort and has not been submitted to any other University or Institution for the award of any degree, or personal favors whatsever. All the details and analysis provided in the report hold to the best of my knowledge.
Place : Bhubaneswar
Date : May 2010 GOPAL KUMAR AGARWAL
KOUSTUV BUSINESS SCHOOL 3 | P a g e
CERTIFICATE
This is to certify that Mr. GOPAL KUMAR AGARWAL, AICTE No.
08/OR/KBS/PGDM/FT/029, a student of Koustuv Business School, Bhubaneswar
has successfully completed his interim report on “Advertising in Indian Telecom
Industry and its Impact on Customers” under my guidance in partial fulfillment of
PGDM program. This is an original work of his own and has not been carried out
by anyone earlier.
Mr. Susanta Kumar Mishra
(Faculty Guide )
Koustuv Business School
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ACKNOWLEDGEMENT
In the course of this project I got an insight into the telecom industry,
came to know a lot about that how the Advertising by Telecom Industry is putting
impact on customers.
First and foremost I am very proud to be a student of Koustuv Business
School, Bhubaneswar and am most grateful for having been given the opportunity
to do Research study.
I avail this opportunity to convey my sincere thanks to Mr. K.N MISHRA,
the H.O.D of Koustuv Business School. I am thankful to Mr. Susanta Kumar Mishra,
my project guide for recommending me the necessary information for the report.
His instilling support and enthusiasm, expert guidance and insight have lent my
project a unique touch. I also express my sincere gratitude to Mr. K.N MISHRA,
H.O.D of Koustuv Business School, for providing us an opportunity to interact with
professional people in the real corporate world. I forward my gratitude for the
compulsion of this most wonderful aspect of our MBA curriculum without which
knowledge of management is incomplete and futile.
My acknowledgement would be incomplete if I didn’t thank my team
mates. During the research period we have developed a camaraderie which was
very healthy and enjoyable. I am grateful for everyone’s support and help when
needed. Without them this training would not have been the same.
At last I am also thankful to my family member and friends who had
given me their constructive advice, educative suggestions, encouragement and
co-operation to prepare this report.
GOPAL KUMAR AGARWAL
KOUSTUV BUSINESS SCHOOL 5 | P a g e
EXECUTIVE SUMMARY
The main area of the study is to study the Advertising in Indian Telecom
Industry and its Impact on Customers. The sources of data collection used in
the study are both primary and secondary in nature. We are going to conduct
a survey to know the impact of advertisements of telecom industry on
customers which is part of primary data. The real aim of the project is to study
the effectiveness and response towards advertisements provided by major
players.
In this project I have covered the Analysis of Telecom Industry of
India. In this analysis I have shown history and present scenario of the Telecom
industry in India. I have complemented this with the internal study of
companies. I have shown history, growth, market share and advertising
strategies adopted by Vodafone, Airtel, Reliance communication, BSNL and
Idea cellular.
The project is based on advertising so I have first explained about
advertising, its importance, managing advertising decisions and types of
advertising. I have analyzed the growth in ad volumes of telecom sector, share
of telecom sector advertising, segment wise growth in telecom sector, share of
key players in advertising, new brands advertised in telecom equipments and
service and share of sales promotion in telecom sector.
Primary data has been collected in which focus group study had
been conducted to design the customer survey questionnaire with a sample
size of 200 respondents. This survey has been conducted in BHUBANESWAR.
Secondary data was collected through websites, newspapers, magazines and
books.
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Table Of Contents
Topics Page No.
1. Introduction
1.1 Research Problem 8
1.2 Objectives of the Project 8
1.3 Limitations of the Project 8 7
1.4 Methodology 9
2. SWOT Analysis of Telecom Industry 12
3. Major Players in Telecom Industry 12
4. Advertising by Telecom Industry 14
5. Data Analysis & Interpretation 22
6. Findings 33
7. Suggestions 34
8. Annexure 34
8.1 Questionnaire 34
9. Bibliography 36
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INTRODUCTION RESEARCH PROBLEM
OBJECTIVE OF THE PROJECT
LIMITATIONS OF THE PROJECT
METHODOLOGY
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RESEARCH PROBLEM
Advertising of Telecom Industry in India and its impact on customers.
OBJECTIVES OF THE PROJECT
To study the performance of Telecom Industry in India.
To know the impact of advertisements of telecom industry on customers.
To study the effectiveness and response towards advertisements provided by
major players.
To analyze the growth in ad volumes of telecom sector.
LIMITATIONS OF THE STUDY
1. Respondents were reluctant to share their experience accurately.
2. Unwillingness of respected personnel’s of Telecom Companies to provide
relevant data for my studies.
3. Time allotted for the project was not sufficient to go for detailed analysis
of the research problem.
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METHODOLOGY
RESEARCH DESIGN:
The research design is Descriptive studies. Descriptive studies are well structured,
they tend to be rigid and its approach cannot be changed every now and then.
Descriptive studies are undertaken in many circumstances:
When the researcher is interested in knowing the characteristics of certain
groups such as age, profession.
When the researcher is interested in knowing the proportion of people in
given population who have behaved in a particular manner, making
projection of certain things.
The objective of this kind of study is to answer the why, who, what, when and
how of the subject under consideration.
I have taken descriptive because my research includes the knowing the behavior
of customer towards advertisement. I have analyzed how people of various age
groups respond to different advertising or their perception towards
advertisement. Also my survey is related to companies like Vodafone, Airtel,
Reliance communications, BSNL and Idea cellular.
Types of Questions:
OPEN ENDED:
They give the respondents complete freedom to decide the form , length and
detail of the answer. Open questions are preferred when the researchers is
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interested in knowing what is upper most in the mind of respondents.
DICHOTOMOUS:
This type of questions have only two type of answer, yes or no. true or false etc.
MULTIPLE CHOICE QUESTIONS:
In the case of multiple choice question the respondents is offered two or more
choices. The researcher exhausts all the possible choices and the respondent has
to indicate which one is applicable in this case.
The research methodology that I undertook for the purpose of this
study is enumerated below:
PRIMARY RESEARCH:
This consisted questionnaire and interaction from various people. A focus group
study will be conducted to design the customer survey questionnaire with a
sample size of 200 respondents.
SECONDARY RESEARCH:
Sources of secondary data were primarily the Internet, journals, newspaper,
annual report, database available in the library, catalogues and presentations.
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TELECOM SUBSCRIBER BASE IN INDIA
Indian telecommunication Industry is one of the fastest growing telecom market
in the world. The mobile sector has grown from around 10 million subscribers in
2002 to reach 150 million by early 2007 registering an average growth of over
90%. The two major reasons that have fuelled this growth are low tariffs coupled
with falling handset prices.
Surprisingly, CDMA market has increased it market share up to 30% thanks to
Reliance Communication. However, across the globe, CDMA has been losing out
numbers to popular GSM technology, contrary to the scenario in India.
The other reason that has tremendously helped the telecom Industry is the
regulatory changes and reforms that have been pushed for last 10 years by
successive Indian governments. According to Telecom Regulatory Authority of
India (TRAI) the rate of market expansion would increase with further regulatory
and structural reforms. Even though the fixed line market share has been
dropping consistently, the overall (fixed and mobile) subscribers have risen to
more than 200 million by first quarter of 2007. The telecom reforms have
allowed the foreign telecommunication companies to enter Indian market which
has still got huge potential. International telecom companies like Vodafone have
made entry into Indian market in a big way.
Currently the Indian Telecommunication market is valued at around $100 billion
(Rupees 400,000 crore). Two telecom players dominate this market - Bharti Airtel
with 27% market share and Reliance Communication with 20% along with other
players like BSNL (Bharat Sanchar Nigam Limited).
The Ministry of Communications and Information Technology (MCIT) is has very
aggressive plans to increase the pace of growth, targeting 500 million telephone
subscribers by the end of 2010.
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SWOT ANALYSIS OF INDIAN TELECOM INDUSTRY
To summarize the SWOT analysis we can draw the following framework for
telecom industry:
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MAJOR PLAYERS IN TELECOM INDUSTRY
TOP FIVE COMPANIES:
The Top five companies, on the basis of ‘Market Share’ as on 31st January, 2010
are:
Bharti Airtel Ltd.
Reliance Communications Ltd.
Vodafone Essar Ltd.
BSNL
Idea Cellular + Spice
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ADVERTISING BY TELECOM INDUSTRY ON TV
Key Findings:
2007
Telecom sector advertising on TV grew by 61 per cent during 2007
compared to 2006.
Telecommunication Services segment had more than 60 per cent share of
overall Telecom sector advertising on TV.
Telecommunication Services has seen a rise of 108 per cent in TV
advertising, whereas Telecommunication Equipments saw a rise of 17 per
cent during 2007 over 2006.
Bharti Airtel Ltd was the number one advertiser under Telecommunication
Services and Nokia Corporation led Telecommunication Equipments
advertising on TV during 2007.
2008
TV advertising of Telecom sector saw a rise of 99 per cent during January -
August 2008 compared to January - August 2007.
'Telecommunication Services' garnered a high share of Telecom sector
advertising on TV during January - August 2008.
TV advertising of 'Telecommunication Equipments' saw a growth of 45 per
cent and that of 'Telecommunication Services' grew by 127 per cent during