Mini Project 2 – ADVERTISING IN INDIAN TELECOM

Industry & It’s IMPACT ON CUSTOMERS

Submitted for the Partial Fulfillment towards the awards of the Degree in

Master in Business Administration (MBA)

of

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

By

Muskaan Bhatt
2201920700205

Under the guidance of

Ms. Shaivya Dixit

Assistant Professor

at

GL Bajaj Institute of Technology and Management

Greater Noida
August, 2023

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 G. L. BAJAJ
INSTITUTE OF TECHNOLOGY &
MANAGEMENT
Approved by A.I.C.T.E. & affiliated to Dr. A.P.J. Abdul Kalam Technical
University

Date:

CERTIFICATE

This is to certify that ……………………………………….. has undertaken

this Mini Project-2 titled “…………………………………………………”
for the partial fulfillment of the award of Master of Business
Administration degree from Dr. A P J Abdul Kalam Technical
University, Lucknow (U. P.), India.

I wish him/ her all the best for his/her bright future ahead.

Project Supervisor
Department of Management
Studies

Head of Department
Department of Management
Studies

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 STUDENT DECLARATION

I, hereby state that the project for the MBA degree, MINI PROJECT - 2, (Semester 2) on has
Advertising in Indian Telecom Industry & It’s Impact on Customers been originally
carried out by me under the supervision of Prof. Shaivya Dixit , GL Bajaj Institute of
Technology and Management , Greater Noida and this has not been submitted elsewhere for
any other degree and diploma previously. The information presented in this is correct to the
best of my knowledge and the analysis is as per the norms and guideline provided for the
report. I have utilized the requisite concept and applied the required methodologies to
analysis the primary data collected to reach the conclusion in the report.

Name – Muskaan Bhatt

Roll No. - 2201920700205

MBA SEM-2 (2022-23)

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 ACKNOWLEDGEMENT

Through this acknowledgement I would like to express my special thanks of gratitude

towards all those people who have helped me in doing this project, which has been a
learning experience. This space wouldn’t be enough to extend my warm gratitude
towards my project guide HOD Sir (Dr. Vikas Tripathi) and Ms. Shaivya Dixit for her
efforts in coordinating with my work and guiding me in right direction.

In the end I would like to thanks sir and ma’am and Internet for all the research and
detail I gathered for all the research and details, I gathered for the assignment.

Name – Muskaan Bhatt

Roll No. - 2201920700205

MBA SEM-2 (2022-23)

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 TABLE OF CONTENT

TOPICS PAGE NUMBER

1. INTRODUCTION 6-8

2. SWOT ANALYSIS OF 9
TELECOM INDUSTRY

3. MAJOR PLAYERS IN 10
TELECOM INDUSTRY

4. ADVERTISING BY TELECOM 11 - 17
INDUSTRY

5. DATA ANALYSIS AND 18 - 28

INTERPRETATION

6. FINDINGS 29

7. SUGGESTIONS 29

8. BIBLOGRAPHY 30

INTRODUCTION
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RESEARCH PROBLEM :
Advertising of Telecom Industry in India and its impact on customers.

OBJECTIVES OF THE PROBLEM:

• 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.
• To analyze the growth in ad volumes of telecom sector.

LIMITATIONS OF THE STUDY:

• Respondents were reluctant to share their experience accurately.

• Unwillingness of respected personnel’s of Telecom Companies to provide relevant
data for my studies.
• Time allotted for the project was not sufficient to go for detailed analysis of the
research problems.

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

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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.

TELECOM SUBSCRIBER BASE IN INDIA

Indian telecommunication Industry is one of the fastest growing telecom market in the world.
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 outnumbers 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.

EXECUTIVE SUMMARY
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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 equipment 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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 SWOT ANAL YSIS OF INDIAN TELECOM INDUSTRY

To summarize the SWOT analysis we can draw the following framework for telecom industry:

MAJOR PLAYERS IN TELECOM INDUSTRY:

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TOP 5 COMPANIES:

The top 5 companies, on the basis of ‘Market Share’ as on 31st January, 2010 are:
 Bharati Airtel Ltd.
 Reliance Communications Ltd.
 Vodafone Essar Ltd.
 BSNL
 Idea Cellular + Spice

ADVERTISING BY TELECOM INDUSTRY ON TV

Key Findings:

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 2007
 Telecom sector advertising on TV grew by 61 percent during 2007 compared to 2006.
 Telecommunication services segment had more than 60 percent share of overall Telecom
sector advertising on TV.
 Telecommunication services has seen rise of 108 percent in TV advertising, whereas
Telecommunication Equipment’s saw arise 17 percent during 2007 over 2006.
 Bharati Airtel Ltd was the number one advertiser under Telecommunication Equipment
advertising on TV during 2007.

 2008
 TV advertising of Telecom sector saw a rise 99 percent 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 ‘Telecommunications Equipment’ saw a growth of 45 percent and that of
‘Telecommunication Services’ grew by 127 percent during January – August 2008.
 Nokia Corporation' leads in advertising of 'Telecommunication Equipment and ' Vodafone Essar
Ltd' was number one advertisers for 'Telecommunication Services' on TV during January - August
2008. 'R Madhavan' had the maximum ad volumes of Celebrity Endorsement of Telecom
sector on TV during January - August 2008.

 2009
 Telecom sector has seen a decline of 16 per cent in its TV ad volumes during Jan - Mar '09 compared to
Jan - Mar '08.
 High share of 'telecommunication services' advertising on TV during Jan-Mar '09.'
 Sony Ericsson (India)' was the top advertisers under 'telecommunication equipment and 'Bharti
Airtel Ltd' leads in 'telecommunication service’ advertising on TV.
 Sony Ericsson W595' and 'Sony Ericsson F305' were top two new brands advertised under
'telecommunication equipment on TV. Virgin v Glide Phones (slider) topped the chart of new
'telecommunication services ' advertised on TV.

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 GROWTH IN ADS VOLUMES OF TELECOM SECTOR

 2009

 16 per cent drop in telecom sector advertising on TV during first quarter of 2009 compared to same
period in 2008.

SHARE OF SEGMENTS OF TELECOM SECTOR

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  2009

 With 87 per cent share 'telecommunication services' leads in advertising of ' telecom sector'
on TV, followed by 'telecommunication equipment' and 'corporate brand image' with 11 per
cent and two per cent share respectively.

GROWTH IN AD VOLUME OF SEGMENTS OF TELECOM SECTOR

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  2009

 Telecommunication services' have seen a decline of 7 per cent in its TV ad volumes

during Jan - Mar '09 compared to Jan - Mar '08.
 TV advertising of 'telecommunication equipment’ recorded a drop of 56 per cent.

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 TOP FIVE ADVERTISERS UNDER THE TELECOM
SEGMENTS

 2009

 Bharti Airtel Ltd', 'Vodafone Essar Ltd' and 'Bharat Sanchar Nigam Ltd' the top three key players of
'telecommunication services' together accounted for 65 per cent share on TV.
 During Q1 '09, top three advertiser together contributed for 83 per cent of overall
'telecommunication equipment' TV advertising share viz. 'Sony Ericsson (India)', 'Nokia
Corporation' and 'LG Electronics India Ltd'.

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 NEW BRAND ADVERTISED IN TELECOM EQUIPMENTS AND
SERVICES

 2009

 Top 3 ‘Telecom Services’ advertise on TV were ‘Virgin vGlide Phones (slider)’,

‘Vodafone Blackberry Storm’ and ‘Apple Music Caller Tunes’.
 ‘Sony Ericsson W595’, ‘Sony Ericsson F305’ and ‘Samsung Guru 1410’ were the top
three new ‘telecommunication equipment’ advertised on TV.
 Top 10 list of new brands of ‘telecommunication equipment’ advertised on TV,
comprised of three brands of ‘Sony Ericsson’ and two were of ‘HTC Corporation’.

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 TOP ADVERTISERS WITH CELEBRITYENDORSEMENT AD
VOLUMES

 2009

 Top three celebrities endorsing telecom products on TV during the first quarter of 2009 were
'Deepika Padukone', 'Saif Ali Khan' and 'KareenaKapoor'.

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 DATA ANALYSIS AND INTERPRETATION

The main area of the study is the Advertising in Telecom Industry in India and its Impact
on Customers. For this purpose I conducted a survey of 200 people in BHUBANESWAR city.

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Out of 200 respondents, 118 were male and 82 were female.

Age: (a) 15-25 (b) 26-35 (c) 36-45 (d) Above 45

Out of 200 respondents, 64 were between the age of 15-25, 60 were between the age of 26-

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35, 56 were between the age of 36-45 and 20 were above 45.

Education: (a) Matriculate (b) Intermediate (C) Graduation (d)Postgraduate

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Out of 200 respondents 28 were matriculate, 40 were intermediate, 72 were graduate and
60 were postgraduate.

Who is your current service provider?

(a) Airtel (b) Vodafone (c) Reliance (d) BSNL (e) Idea (f) other

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Out of 200 respondents 50 were using Airtel, 34 were using Vodafone, 36 were using
Reliance, 26 were using BSNL, 22 were using Idea and 32 were using others.
For how long you are using this mobile connection?
(a) Less than 6 months. (b) 6 to 12 months. (c) Above 12 months

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Out of 200 respondents 22 were using the current connection for less than 6 months, 56 were using it
from 6-12 months and 120 were using it from more than 1 year.

What were the reasons for choosing this mobile connection?

(a) Recommended by friends or relatives. (b) Recommended by retailers. (c) Brand image
(d) Advertisement

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Out of 200 respondents 76 were influenced by friends and relatives, 24 were influenced
by retailers, 16 were influenced by brand image and 84 were influenced by advertisements.

While purchasing a connection advertising plays any role? (a) Yes (b) No

Out of 200 respondents 168 agreed that advertisements play a role in making purchase
decision and 32 did not agree on that.

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From where do you watch advertisements the most?
(a) Television (b) Radio (c) Newspaper (d) Magazines (e) Other

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Out of 200 respondents 110 replied Television, 6 replied Radio, 50 replied Newspapers,
14 replied Magazines and 20 replied Others.
Which telecommunication company has good advertising?
(a) Airtel (b) Vodafone (c) Reliance (d) BSNL (e) Idea (f) other

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Out of 200 respondents 50 liked the advertisements of Airtel, 64 liked advertisements of Vodafone, 30 liked
the advertisements of Reliance, 16 liked the advertisements of BSNL and 40 liked the
advertisements of IDEA.
Do you think that advertisement made by company informs you about their products?
a) Yes (b) No (c) Undecided

Out of 200 respondents 140 were in favor of that advertisements provides information about the
products, 48 were not in favor of that and 12 were not able to decide.

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Based on advertisements made by company, would you like to go for more connections for you or your
family in future?
a) Yes. (b) No. (c) Undecided

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 Out of 200 respondents 148 agreed that they would buy connection on the basis of
advertisement made by companies, 44 did not agree and 8 were not able to decide.

FINDINGS

 74% of the people believes that advertisements play a role while making purchase decision for new
connection. So the companies should handle the advertising properly and should try to deliver the
information properly.
 In telecom industry the most important factor which affects the purchase decision of the
customers is advertisement. Suggestions of friends and relatives also plays major role in this. So the
companies should take care of the existing customers so that they can be recommended to
others.
 55% of the people likes to watch advertisements on television. And after television people rated
newspapers. So the companies should focus more on television ads and newspaper ads.
 32% of the people like Vodafone advertisements more than others. After that Airtel and Idea comes. So the
other companies should try to make advertisements which can connect to the customers.
 74% of the people believe that advertisements provide information about the products. So the
companies should try to deliver all the information about the plans and offers through
advertisements.
 Majority of the people wants to buy the connections for family and friend son the basis of advertisements.
So advertisements should be given more focus and importance by the telecom companies.

SUGGESTIONS

 Information may be communicated to the customers regularly for better feedback from
customers.

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 The Companies may focus more on Television ads & Newspapers ads to increase the
effectiveness of the ads.
 The Advertisements can provide all the relevant information to the customers which are
necessary for them.
 The Companies may focus on rural areas while designing advertisement campaign

BIBLIOGRAPHY

Websites:
 www.vodafone.in
 www.airtel.in
 www.rcom.co.in
 www.bsnl.co.in
 www.ideacellular.com
 www.google.com

Newspapers:
 Dainik Bhaskar
 Rajasthan Patrika
 The Times Of India

Books:
 Foundations of advertising by S.A. Chunawala & K.C. Sethia
 Advertising management by Rajeev Batra & John Myers
 Advertising and promotion by George & Michal Belch

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