interim report of advertisement vodafone

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Interim report, MT - I 2009

MANAGEMENT THESIS I, 2009

ICFAI NATIONAL COLLEGE

K.P VALLON ROAD, ERNAKULAM

INTERIM REPORT

Submitted By

Nayana Sarath M.S

8NBKI051

Guided ByMr. Shibu P.J

(Faculty Guide)

In partial fulfillment of the requirements for the award of the

degree for

MASTER OF BUSINESS ADMINISTRATION

ICFAI UNIVERSITY

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ACKNOWLEDGEMENT

I take this opportunity to thank the God almighty for the blessings showered up on me and my

heart filled with gratitude for all the people who helped and guided me.

I profoundly pay my tributes and thanks to Mr. Shibu P.J, faculty guide of MT I, 2009 for his

valuable and moral support extended towards me.

Finally I thank my parents for their boundless support and for making my life so easy and for

helping me tackle all those difficulties in life.

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INDEX

Advertising Strategies

Profile ofVodafone Essar

Recent Advertisement of Vodafone

Literature Review

Methodology

Sources of data

Method of data collection

Population of study

Sample size

Progress Report

Appendix

Questionnaire

Bibliography

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ADVERTISING STRATEGIES

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.

Many advertisements are designed to generate increased consumption of those products and

services through the creation and reinvention of the "brand image". For these purposes,

advertisements sometimes embed their persuasive message with factual information. There are

many media used to deliver these messages, including traditional media such as television, radio,

cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and

Internet marketing. Today, new media such as digital signage is growing as a major new massmedia. Advertising is often placed by an advertising agency on behalf of a company or other

organization.

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Organizations that frequently spend large sums of money on advertising that sells what is not,

strictly speaking, a product or service include political parties, interest groups, religious

organizations, and military recruiters. Non-profit organizations are not typical advertising clients,

and may rely on free modes of persuasion, such as public service announcements.

Money spent on advertising has increased dramatically in recent years. In 2007, spending on

advertising has been estimated at over $150 billion in the United States and $385 billion

worldwide, and the latter to exceed $450 billion by 2010.

While advertising can be seen as necessary for economic growth, it is not without social costs.

Unsolicited Commercial Email and other forms of spam have become so prevalent as to have

become a major nuisance to users of these services, as well as being a financial burden on

internet service providers. Advertising is increasingly invading public spaces, such as schools,

which some critics argue is a form of child exploitation. In addition, advertising frequently uses

psychological pressure (for example, appealing to feelings of inadequacy) on the intended

consumer, which may be harmful.

TYPES OF ADVERTISING

MEDIA

Commercial advertising media can include wall paintings, billboards, street furniture

components, printed flyers and rack cards, radio, cinema and television adverts, web banners,

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mobile telephone screens, shopping carts, web pop ups, skywriting, bus stop benches, human

billboards, magazines, newspapers, town criers, sides of buses, banners attached to or sides of

airplanes, in-flight advertisements on seatback tray tables or overhead storage bins, taxicab

doors, roof mounts and passenger screens, musical stage shows, subway platforms and trains,

elastic bands on disposable diapers, stickers on apples in supermarkets, shopping cart handles,

the opening section of streaming audio and video, posters, and the backs of event tickets and

supermarket receipts. Any place an "identified" sponsor pays to deliver their message through a

medium is advertising.

One way to measure advertising effectiveness is known as Ad Tracking. This advertising

research methodology measures shifts in target market perceptions about the brand and product

or service. These shifts in perception are plotted against the consumers levels of exposure to the

companys advertisements and promotions. The purpose of Ad Tracking is generally to provide a

measure of the combined effect of the media weight or spending level, the effectiveness of the

media buy or targeting, and the quality of the advertising executions or creative.

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

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

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engraved with the Bulgari logo. Another example of advertising in film is in I, Robot, where

main character played by Will Smith mentions his Converse shoes several times, calling them

"classics," because the film is set far in the future. I, Robot and Space balls also showcase

futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the

vehicles. Cadillac chose to advertise in the movie The Matrix Reloaded, which as a result

contained many scenes in which Cadillac cars were used. Similarly, product placement for

Omega Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond

films, most notably Casino Royale. Blade Runner includes some of the most obvious product

placement; the whole film stops to show a Coca-Cola billboard.

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).

The majorities of television commercials feature a song or jingle that listeners soon relate to the

product. Virtual advertisements may be inserted into regular television programming through

computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local

billboards that are not relevant to the remote broadcast audience. More controversially, virtual

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billboards may be inserted into the background where none exist in real-life. Virtual product

placement is also possible.

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. Infomercials are also known as direct response television (DRTV) commercials or

direct response marketing.

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. Infomercials describe, display, and often demonstrate products and their

features, and commonly have testimonials from consumers and industry professionals.

CELEBRITIES

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.

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MEDIA AND ADVERTISING APPROACHES

Increasingly, other media are overtaking many of the "traditional" media such as television, radio

and newspaper because of a shift toward consumer's usage of the Internet for news and music as

well as devices like digital video recorders (DVR's) such as TiVo. Advertising on the World

Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the

"relevance" of the surrounding web content and the traffic that the website receives.

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VODAFONE ESSAR COMPANY PROFILE

Vodafone Essar is a leading provider of wireless telecommunications services in India. Thecompany serves about 35 million subscribers located in every major region of the country. In

addition to standard and prepaid wireless subscriptions, Vodafone Essar offers such services as

text messaging and the wireless distribution of such content, as music and news. It also caters to

corporate customers with wireless email and other services. The company is controlled by UK-

based wireless heavyweight Vodafone Group, which owns more than two-thirds of the joint

venture, while the remaining shares are owned by Indian conglomerate Essar Group.

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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Advertiser of the Year. Vodafone Group is the worlds 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 Vodafones 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 GROUP

Vodafone Group Plc is the world's leading mobile telecommunications company, with a

significant presence in Europe, the Middle East, Africa, Asia Pacific and the United Statesthrough the Company's subsidiary undertakings, joint ventures, associated undertakings and

investments. The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the

United States the Group's associated undertaking operates as Verizon Wireless. During the last

two financial years, the Group has also entered into arrangements with network operators in

countries where the Group does not hold an equity stake. Under the terms of these Partner

Network Agreements, the Group and its partner networks co-operate in the development and

marketing of global services under dual brand logos.

At 31 March 2009, based on the registered customers of mobile telecommunications ventures in

which it had ownership interests at that date, the Group had 303 million customers, excluding

paging customers, calculated on a proportionate basis in accordance with the Company's

percentage interest in these ventures.

The Company's ordinary shares are listed on the London Stock Exchange and the Company's

American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. The

Company had a total market capitalisation of approximately 66.9 billion at 18 May 2009.

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Vodafone Group Plc is a public limited company incorporated in England under registered

number 1833679. Its registered office is Vodafone House, The Connection, Newbury, Berkshire,

RG14 2FN, England.

ESSAR GROUP

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 has a presence in more than 15 countries worldwide.

With a firm foothold in India, the Essar Group has been focusing on global expansion with

projects and investments in Europe, North America, the Caribbean, Africa, the Middle East and

South East Asia. Privately owned and professionally managed, the Group is judiciously invested

in the commodity, annuity and services businesses. Forward and backward integration, as well as

the use of state-of-the-art technology and in-house research and innovation have made Essar aleading player in each of its businesses. Essars abiding philosophy is to be a low cost, high

quality, technology driven group with innovative customer offerings. The Essar Group was

founded in 1969 by brothers Shri Shashi Ruia and Shri Ravi Ruia. The Ruia familys origins are

in Rajasthan. Sometime in the 19th century, it moved to Mumbai and set up its own business. In

1956, Shri Nandkishore Ruia, father to Shri Shashi and Ravi Ruia, moved to Chennai, capital of

the south Indian state of Tamil Nadu, to begin independent business activities. He mentored his

two sons in the intricacies of business. When Shri Nandkishore Ruia passed away in 1969, the

brothers laid the foundation of the Group.

The Essar Group began its operations with the construction of an outer breakwater in Chennai

port. It quickly moved to capitalize on every emerging business opportunity, becoming Indias

first private company to buy a tanker in 1976. The Group also invested in a diverse shipping fleet

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and oil rigs, when the Government of India opened up the shipping and drilling businesses to

private players in the 1980s. Then, in the 1990s, Essar began its steelmaking business by setting

up Indias first sponge iron plant in Hazira, a coastal town in the western Indian state of Gujarat.

The Group went on to build a pellet plant in Visakhapatnam and eventually a fully integrated

steel plant in Hazira.

Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized every

opportunity that came its way. It diversified its shipping fleet, started oil & gas exploration and

production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set up a power plant

near the steel complex in Hazira. The Construction business helped the Group build most of its

business assets. Essar also entered the GSM telephony business, establishing Indias first mobile

phone service in Delhi (branded Essar Cellphone) with Swiss PTT as the joint venture partner.The 21st century for the Essar Group has been all about consolidating and growing the

businesses, with M&As, new revenue streams and strategic geographical expansion.

RECENT ADVERTISEMENT OF VODAFONE

IPL Vodafone released various ZooZoo ads

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For the first season of the Indian Premier League - IPL Vodafone had released the Happy to Help

series. But for the second season of the Indian Premier League - Vodafone has launch the

ZooZoo, which is a special character created specifically to convey a value added service

offering in each of the newly released commercials. The purpose is that interest still end of the

IPL.

Rajiv Rao, executive creative director, O & M, decided to create a world where ZooZoos

products and services is the stories told in a charming way. On this campaign, one of the most

interesting is that although ZooZoo animated look, but they were real people who are dressed in

white clothes.

Director Prakash Varma of Nirvana film, animation requires a lot of detail here and are doing

exactly the opposite. We have to make the characters seem real animated characters. It is a

challenge, and none of them could see them covered from head to toe. Kit including all objects in

the form of shadows in the form of aerosols.

LITERATURE REVIEW

CONCEPT OF ADVERTISING

Advertising is a form of communication used to help sell products and services. Typically itcommunicates 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 19 th and early

20th centuries.

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Many advertisements are designed to generate increased consumption of those products and

services through the creation and reinvention of the "brand image". For these purposes,

advertisements sometimes embed their persuasive message with factual information. There are

many media used to deliver these messages, including traditional media such as television, radio,

cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and

Internet marketing. Today, new media such as digital signage is growing as a major new mass

media. Advertising is often placed by an advertising agency on behalf of a company or other

organization.

DEFINITION

Advertising is bringing a product (or service) to the attention of potential and current customers.

Advertising is focused on one particular product or service. Thus, an advertising plan for one

product might be very different than that for another product. Advertising is typically done with

signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.

OBJECTIVES OF ADVERTISING

To communicate product or service information to the customers.

To make the customers aware about the usage of that service or product to them.

To make a brand image in the minds of the customers.

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To influence the customers in increasing the consumption rate of their products.

TYPES OF ADVERTISING

Media

Covert advertising

Television commercials

Infomercials

Celebrities

World Wide Web

RESEARCH METHODOLOGY

SOURCES OF DATA

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Primary Data

Questionnaire Method

Direct Interview Method

Secondary Data

Books

Internet

Articles

Newspapers

Magazines

METHOD OF DATA COLLECTION

Internal secondary data

External secondary data

Personal interviews (office and mall- intercept interviews)

POPULATION OF STUDY

The study will be conducted on the basis of population of Ernakulam district.

SAMPLE SIZE

Sample size will be 50.

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PROGRESS REPORT

Sl. No Week No. Duration Details1 1st week July 13th - July 17th Selecting the Management thesis-1

title by discussing with the facultysupervisor

2 2nd week July 21st - July 24th Preparation ofSynopsis

3 3rd week July 27th Submission ofMgmt ThesisSynopsis

4 4th week Aug 3rd - Aug 7th Visiting stores ofVodafone inErnakulam

5 5th week Aug 10th - Aug 14th Preparation ofQuestionnaire

6 6th week Aug 17th - Aug 21st Collecting data on the basis ofQuestionnaire

7 7th week Aug 24th Aug 28th Evaluation of collected data

8 8th week Aug 31st Sep 4th Preparation of Interim report

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APPENDIX

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 telecommunications service?

o Yes

o No

If yes, then which operators Service do you use?

o Vodafone

o Airtel

o Idea

o Reliance

o BSNL

o Tata Indicom ( If not Vodafone then go to Q18 )

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Q3) Are you aware about Vodafone?

o Yes

o No (If No, then go to Q17 )

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 advertising plays any role?

o Yes

o No

Q6) From where you watch the advertisement most?

o Television

o Radio

o Newspaper

o Magazines

Q7) Which telecommunication have good advertising?

o Air Tel

o Vodafone

o Idea

o Reliance

o Others

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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 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.

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

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Q12) Which of the following services do you use of Vodafone?

o Pre-paid

o Post-paid

Q13) Which services are more helpful to you while using Vodafone services?

o Call rates (Multi-choice)

o SMS service

o Network

o Value Added Services

Q14) Dou you call at customer care?

o Yes

o No

If yes, how often you call at customer care?

o Daily

o Once a week

o Once a month

o Occasionally

Q15) For what reason you call at customer care?

o Value added services

o Information regarding new schemes

o Other queries

o Complaining

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Q16) Rate the following services on the basis of your satisfaction.

Services Excellent Very Good Fairly good Average Poor

Network

SMS rates

New schemes and offers

Customer Care

Recharge outlets

Call Rates

Value Added Services

Q17) What makes you unaware about Vodafone?

o Less Advertisements

o Less Publicity

o Others

(If others then mention ________________________)

Q18) Why you are not using Vodafone services?

o Lack of awareness (Multi-choice)

o High Prices

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o Poor Services

o Poor network

Q19) Would you like to recommend Vodafone to others?

o Yes

o No

Q20) Give your suggestions to help in serve you better.

_____________________________________________________________________________

_____________________________________________________________________________

______________________________________________________________

Name: ________________

Age: ___ years

Sex: Male/Female

Contact no.: ___________

Date: __________

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BIBLIOGRAPHY

SITES

o www.google.com

o www.vodafine.in

o www.wikipedia.com

o www.essar.com

BOOKS

o Marketing Management, ICFAI UNIVERSITY Press

o Marketing Research, ICFAI UNIVERSITY Press
http://www.google.com/http://www.vodafine.in/http://www.wikipedia.com/http://www.essar.com/http://www.google.com/http://www.vodafine.in/http://www.wikipedia.com/http://www.essar.com/

interim report of advertisement vodafone

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