Research Project Report " ": Customer Satisfaction
Research Project Report " ": Customer Satisfaction
On the topic
“CUSTOMER SATISFACTION”
Submitted in partial fulfillment of the requirement for the award of
degree of
MASTER OF BUSINESS ADMINISTRATION
SESSION (2019-2021)
SUBMITTED BY:
Name: NABA IRSHAD
Class: MBA (4th Semester)
University Roll No.-1902720700053
20 JULY, 2021
DECLARATION
This research project is my original work and has not been submitted for
examination to any other university.
NABA IRSHAD
This research project has been submitted for examination with my approval as the
University Supervisor.
This study is dedicated to my family especially my mother and my father for their
constant encouragement and patience throughout my academic struggle and my Prof.
Ashutosh Singh for his continuous support.
ACKNOWLEDGEMENTS
The completion of this study would have been impossible without the material and moral
support from various people. It is my obligation therefore to extend my gratitude to them.
First of all, I thank the Almighty God for giving me good health, and guiding me through
the entire course.
Customer Satisfaction
For example, reporting methods developed for health care patient surveys often ask
customers to rate their providers and experiences in response to detailed questions such
as,
“How well did your physicians keep you informed?” These surveys provide “actionable”
data that reveal obvious steps for improvement. Customer satisfaction is a highly
personal assessment that is greatly influenced by individual expectations.
Some definitions are based on the observation that customer satisfaction or dissatisfaction
results from either the confirmation or disconfirmation of individual expectations
regarding a service or product. To avoid difficulties stemming from the kaleidoscope of
customer expectations and differences, some experts urge companies to “concentrate on a
goal that’s more closely linked to customer equity.”
Customer value is the difference between the values the customer gains from owning and
using a product and the costs of obtaining the product's customers from expectations
about the value of various marketing offers and buying accordingly. How do buyers meet
their expectations? Customer expectations are based on past buying experiences, the
opinion of friends and marketer and competitor information and promises.
Customer satisfaction with a purchase depends on how well the product’s performance
lives up to the customers’ expectations. Customer satisfaction is a key influence on future
buying behavior. Satisfied customers buy again and tell others about their good
experiences dies-satisfied customers of ten switches to competitors and disparage the
products to others. An insurance provider opens only to active duty, retired and
separated military members and their immediate families and therefore not included in
the rankings, achieved a satisfaction ranking equal to that any insurance company.
According to U.S consumers’ affairs department, it costs five times more to gain a new
customer than to retain an existing one. Other studies have repeated that with just a five
percent increase in Customer retention’s a firm can raise its profitability customers spend
salary at first, but with succeeding years of good experience, they will spend increasingly
more.
Depending on the industry and the nature of the bad experience, dissatisfied customers
will complain to 10 to 20 friends and acquaintances, which is three times more than those
with good experiences are. Hence, the negative information is influential, and consumers
generally place significant weight on it when making a decision. If that is not the reason
enough, fierce competitor is needed more and more to differentiate firms from one
another. With technology available to virtually every one today, the traditional features
and cost advantages are no longer relevant. Still product and service quality provide an
enormous opportunity to distinguish a firm from the rest. The Japanese have recognized
this and have though us to expect quality. Today’s consumers do, and they know more
about products and services than they ever did.
Customers are the best source of information. Whether to improve an existing product or
service or whether firms are planning to launch something new. There is no substitution
for “getting it from horse’s mouth” When you talk to your customer directly, to increase
your odds for achieving success you “mistake- proof” your decisions and work on what
really matters. When you routinely ask the customers for feedback and involve them in
business, they, in turn, become committed to the success of your business.
A basic and effective base line customer satisfaction survey program should focus on
measuring customer perceptions of how will the company delivers on the critical success
factors and dimensions of the business as defined by the customers:
For example:
1. Service Promptness
2. Courtesy of Staff
3. Responsiveness
4. Understanding the customer problem, etc.
The findings of the company performance should be analyzed both with all customers
and by key segments of the customer population. The essential starting point for
Customer Satisfaction Measurement (CMS) is exploratory research. Since satisfaction is
about an organization’s ability. To meet customer requirement, one has to start by
clarifying with customers exactly what those requirements are. This is done through
exploratory research using focus groups or one to one depth interviews.
Two main factors determine the accuracy of CMS. The first is the asking the right
question and the second is the asking them to the right people sample of customers which
accurately reflects the customer base.
Three things decide the accuracy of a sample. They are:
1. It must be representative.
2. It must be randomly selected.
3. It must be adequate enough.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and recommend rate. The level
of satisfaction can also vary depending on other factors the customer, such as other
products against which the customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
delivered SERVQUAL which provides the basis for the measurement of customer
satisfaction with a service by using the gap between the customer's expectation of
performance and their perceived experience of performance. This provides the researcher
with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor
extended the disconfirmation theory by combining the "gap" described by Parasuraman,
Zenithal and Berry as two different measures (perception and expectation) into a single
measurement of performance relative to expectation.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Linker Technique or scale. The customer is asked to evaluate each statement in
terms of their perception and expectation of performance of the service being measured.
3) Methodologies:
In addition to quarterly reports, the ACSI methodology can be applied to private sector
companies and government agencies in order to improve loyalty and purchase intent.
Two companies have been licensed to apply the methodology of the ACSI for both the
private and public sector: CFI Group, Inc. applies the methodology of the ACSI offline,
and Foresee Results applies the ACSI to websites and other online initiatives. ASCI
scores have also been calculated by independent researchers, for example, for the mobile
phones sector, higher education, and electronic mail.
The Kano model is a theory of product development and customer satisfaction developed
in the 1980s by Professor Noriaki Kano that classifies customer preferences into five
categories: Attractive, One-Dimensional, Must- Be, Indifferent, Reverse. The Kano
model offers some insight into the product attributes which are perceived to be important
to customers. Kano also produced a methodology for mapping consumer responses to
questionnaires onto his model. SERVQUAL or RATER is a service-quality framework
that has been incorporated into customer-satisfaction surveys (e.g., the revised
Norwegian Customer Satisfaction Barometer) to indicate the gap between customer
expectations and experience.
J.D. Power and Associates provides another measure of customer satisfaction, known for
its top-box approach and automotive industry rankings. J.D. Power and Associates'
marketing research consists primarily of consumer surveys and is publicly known for the
value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well. These
include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the
Stages of Excellence framework and which helps define a company’s status against eight
critically identified dimensions. For Business to Business (B2B) surveys there is the Info
Quest box. This has been used internationally since 1989 on more than 110,000 surveys
(Nov '09) with an average response rate of 72.74%. The box is targeted at "the most
important" customers and avoids the need for a blanket survey.
Published standards exist to help organizations develop their current levels of customer
satisfaction. The International Customer Service Institute (TICSI) has released The
International Customer Service Standard (TICSS). TICSS enables organizations to focus
their attention on delivering excellence in the management of customer service, whilst at
the same time providing recognition of success through a 3rd Party registration scheme.
TICSS focuses an organization’s attention on delivering increased customer satisfaction
by helping the organization through a Service Quality Model. TICSS Service Quality
Model uses the 5 P's - Policy, Processes People, Premises, Product/Services, as well as
performance measurement. The implementation of a customer service standard should
lead to higher levels of customer satisfaction, which in turn influences customer retention
and customer loyalty.
Customer Satisfaction Surveys:
Surveys and questionnaires are the most common marketing research methods. Typically,
they are used to:
Surveys allow an organization to quickly capture vital information with relatively little
expense and effort. A primary advantage of this method is its directness: “the purpose is
clear and the responses straightforward.” Additionally, the information gathered by
surveys can easily be analyzed and used to identify trends over time. The public views
consumer product polls and pollsters in a generally positive manner compared to political
and other polls. One study found that at least sixty percent of the public feels that market
research about products and services has a positive impact on society. Seventy percent
consider the people who conduct such surveys to have positive impacts on society.
A major disadvantage of customer surveys is that the responses may be influenced by the
measurement itself through various forms of bias. For example, most surveys are
voluntary, and some researchers have found differences between survey respondents and
non-respondents. People who respond to surveys answer questions differently than those
who do not respond, and late responders answer differently than early responders.
RESEARCH METHODOLOGY
❑ METHOD OF RESEARCH
→ Survey method:
A Survey is a complete operation, which requires some technical knowledge Survey
methods are mostly personal in character. Surveys are best suited for getting primary
data. the research obtains information from the respondents by interviewing them.
→ Sampling:
It is not always necessary to collect data from whole universe4. A small representative
sample may serve the purpose. A sample means a small group taken in a large lot. This
small group taken in a large lot. This small group should be emanative cross section and
really “representative” in character. This selection process in calls sampling.
Sample size: Samples are devices for learning about large masses by observing a few
individuals. The selected sample is 100.
❑ METHOD OF SAMPLING
b) Collection of data:
One of the important tools for conduction market research is that availability of necessary
and useful data. Date collection is more of an art than a science. The methods of
marketing research are in a way the methods of data collection. The sources of
information fall under two categories.
THOSE ARE:
● Primary data:
The data collected for a purpose in original and for the first time is known as primary
data. The researches collect this data to study a particular problem.
Here the primary data is data collected through questionnaire by directly meeting the
customers.
● Secondary Data:
The data, which is collected from the published sources i.e., not originally collected of
the first rime is called secondary data.
Here the secondary data is data collected from the company’s brochures, pamphlet
catalogues and the website.
NEED FOR THE STUDY
OBJECTIVES OF STUDY
The setting of objectives is the core stone of a systematic study. The study will be fruitful
one when the basis laid down is a concrete one, they represent the desired solution to the
problem and help in proper utilization of opportunities.
Objectives:
1. The objectives of the research are:
2. To find out which sales promotion tools will increase the sales
5. To know the features that attract the customer to subscribe to Vodafone idea.
⮚ Time factor was the main limitation for the study as the project was restricted to a
small period.
⮚ The research was limited only to the Hyderabad city so the result can’t be
generalized to the whole market.
⮚ The sample taken for research was concerned only for 100 customers rather than
millions of customers scattered around the world.
⮚ Since the project has to be completed within a short period of time the information
collected could be biased.
⮚ Some of the premium segments could not be met due to time lack and by not
obtaining prior appointments due to tight schedules of the respondents.
COMPANY PROFILE
Vodafone idea, called Birla Tata AT&T before being renamed in May 2002, is India’s
leading cellular services provider. It was set up in January 2001 following the merger of
Tata Cellular and Birla AT&T Communication. In February 2001, Vodafone idea
acquired RPG Cellcom, which is now called BTA Cellcom and has operations in Madhya
Pradesh and Chhattisgarh.
The Vodafone idea footprint currently covers five circles: Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh (including Chhattisgarh) and New Delhi. Its services span the
entire cellular value chain from voice to text. During 2001-2002, Vodafone idea was
India’s fastest growing cellular operator, registering an annual growth rate of 135 per
cent. Thanks to the frontline technology – from Nokia and Ericsson – at its customer’s
extensive coverage, quality service and minimal congestion levels. Currently it has an
approximate subscriber base of 1.25 million, which amounts to 26.2 per cent in its five
circles of operation (and 10.7 percent of the all –India total). Idea also enjoys market
leadership in two of its circles of operation, Maharashtra and Goa, and Andhra Pradesh.
IDEA COVERAGE:
Idea gives you coverage like no other mobile service can. Covering 23 Districts and 152
towns in Andhra Pradesh and with a unique concept called ‘the corridor connectivity’,
Idea promises you the widest reach with the deepest penetration. Corridor connectivity
provides highway coverage by way of the Costa corridor between Sangareddy (via
Hyderabad) and Vijayawada, the Krishna Corridor between Vijayawada and Tirupati, the
Rayalaseema corridor between Hyderabad and Hindupur and the kakatiya corridor
between Hyderabad and Mancherial (via Warangal). Besides, we assure first time
connection, no call drops enho-free speech, better voice clarity and no congestion of
cellular traffic. Lastly, with a base of over 100 franchisees in the state dedicated to
customer care and interaction, it’s no wonder that service offered by Idea in like no other.
● In June 2007 Vodafone idea acquired Escotel Mobile Communications and Escorts
Telecommunications and now it has footprint across 11 telecom circles.
● Idea will invest Rs.1, 200 crores for network and capacity expansion to achieve 100
percent growth this fiscal.
● Singapore Technologies Telemedia Pte (STT) and Telecom Malaysia Bhd have
jointly bought AT&T’s entire 33.3 per cent stake in Vodafone idea.
● Idea has launched Enhanced Data for GSM Evolution (EDGE) services’, offering
higher Internet connection speed, quick downloads and other multimedia services on
mobiles. This next generation service is launched only for Delhi and NCR
subscribers (both prepaid and post- paid) initially.
PRODUCT PROFILE:
Vodafone idea offers a wide range of cellular services and products. Its post paid and
prepaid services are supported by a variety of package plain to suit the needs of different
customers. The company also offers a variety of value- added services. These are:
M- coupon:
Electronic discount coupons that customers can get on their mobile while they shop.
Voice courier:
Idea subscribers can send messages in their own voice to select GSM subscribers all
across the country and to any land line or cellular subscriber in the US and Canada at a
fraction of STD and ISD rates.
M-chat:
An instant- messaging service that enables subscribers to chat with their friends in MSN,
Yahoo and ISQ from Idea mobile (using the SMS feature). Idea’s m-chat enables
subscribers to chat with all the three chat rooms, MSN, Yahoo and ISQ, without having
to tag along a laptop or computer with net connection.
MMS/GPRS:
Idea Delhi was the first mobile phone operator to launch GPRS services in Delhi. It’s 3G-
compatible networks support General Packet Radio Service (GPRS), which allows
subscribers to access Internet websites and information portals on Idea mobile. Another
outstanding application on GPRS is Multimedia Messaging service (MMS). Idea is
among the pioneers in providing MMS. This innovation in mobile communication
provides the subscriber the ability to communicate in voice or text with full colour
images. With the introduction of GPRS on its network, Idea also supports the use of the
GPRS phone as a modem, providing busy laptop armed executives the opportunity to log
in wirelessly while on the move.
IDEA ROAMING:
The world is indeed becoming a smaller place; thanks to globalization and free
economies and people’s increasing love of travelling. And thank to God for cellular
telephony’s greatest boon: ROAMING. Be it your next town supplier of your across-the-
state sales force; wish to breakfast over with a Singapore dealer or just enjoy London’s
fall with your cousins; IDEA’S roaming services take care of all your “communication on
the move” needs. After all Idea understands your need to ALWAYS FEEL AT HOME,
no matter where you are. So, ROAM with Idea. Friendly National International Your
smile is worth it.
Friendly Roaming:
Idea offers you a very lucrative assortment of: friendly states” where you can roam and
use our cellular services in the following cities covered for your interests:1) Maharashtra-
Goa 2) Gujarat 3) Madhya Pradesh- Chhattisgarh Thus, with Idea Friendly Roaming, you
can receive and make calls within any of the above visited network region as well’
though the latter will be charged standard STD rates. In case you visit a particular
network outside Home network, and wish to call up a third none Home network region,
you would be able to do so only if you have subscribed to STD feature by paying the
necessary STD deposit, as applicable in your Home network subscription charges. E.g. as
a 9848003689 subscriber, you have your home network as Andhra Pradesh. You will be
able to make and receive calls on this Home Vodafone idea number while roaming in
Maharashtra- Goa, Madhya Pradesh – Chhattisgarh and Gujarat. If you travel to Madhya
Pradesh you can call Madhya Pradesh and Andhra Pradesh only, without having
subscribed to STD facility at home. IN case you wish to call up Bangalore or Chennai or
anywhere else in India while roaming in Madhya Pradesh, you need to opt for the STD
facility.
South roaming:
Idea goes one step ahead and brings to you South Roam, the roaming facility that enables
you to roam in Chennai, Karnataka, Kerala and Tamil Nadu. So stay connected in all
southern states without even having to subscribe for the STD facility. This unique
roaming facility is being offered in association with RPG – Chennai, Spice – Karnataka,
BPL –Kerala and BPL – Tamil Nadu.
National Roaming:
Country road . . . take me home, to the place I belong . . . thus sang John Denver in one of
his famous songs “Country Road”. And Idea takes it upon itself to ensure that our
country’s scattered geographies never fail to catch our network coverage, so wherever
you travel in India, an Idea network is always within reach.
World Roam:
With Idea World Roam services, you can be close to home even when you’re
globetrotting. With one of the finest roaming footprints in USA and most GSM countries
in Europe, Far East Asia and Central Asia. You are assured of the most comprehensive
coverage around the globe, with over 72 cellular service providers covering 53 countries.
CALL DIVERTS:
This feature enables you to divert an incoming call to a landline number within your city
or a cell phone within the Idea network.
CALL CONFERENCE:
This feature allows you to have a teleconference with up to five people at the same time,
no matter where you are. The hand set should support this feature. You can conference
with either cell or landline phones. All the calls in the conference are chargeable. This
feature needs to be supported by the handset.
This feature allows you to send and receive messages, to and from, respectively; almost
all national cellular operators. SMS allows you access to Services like receiving stock
quotes, horoscopes, jokes, messages, email, news, and many others. It comes as an in-
built feature to all Idea subscribers. Idea offers an array of services that help you manage
your calls better. From caller Identification to Call Waiting, from Call Divert to Call
Conference, Idea redefines convenience. Most of this feature are optional and can be
availed of on request and carry a nominal subscription charge. To activate any feature,
call our Customer Care or visit any Idea ‘n’ U showroom.
ITEMISED BILLING:
This feature gives you the details of all calls made and received, SMS sent during a
month. Your monthly bill, therefore, will carry the details of the number called/received,
time and date of the call, duration, amount charged, number to which the SMS had been
sent, etc. This feature is given by default, and can be deactivated on request
Any Processing : Rs. 149 per month assuming 1 recharge coupon of Rs.
324 / month (with Rs. 151 talk & Rs. 149 processing fee)
Features Charges
STD
ISD
U.S.A, CANADA, AUSTRALIA, U.K, Rs. 10.25/min
SAARC
SMS Charges
Incoming Free
National Roam
Rental Nil
Rental Nil
1) From Mobile
● Dial 2222
● Choose the language – For English 1; Hindi 2; Telugu 3
● Choose the potion – Balance 1; Recharge 2; Pin number change 3;
Subscription Expiry 4
● Choose the option 2
● System asks for Voucher Number
● Enter the 13 digit PIN Code printed in the Recharge Coupon
● The system reconfirms the PIN Code entered
2) From Landline
● Dial 9848102222
● Enter the mobile number as per system request
● The system will prompt for PIN number
● System asks for Voucher Number
● Enter the 13 digit PIN Code printed in the Recharge Coupon
● The system reconfirms the PIN Code entered
PREPAID:
A Prepaid subscription is like a “cash & carry” subscription, designed for quick
convenience & ease of mobility of our valued customers. To subscribe for a prepaid
connection, do ask for the “IDEA Chitchat” Brand at our outlets. Under this type of
subscription, you can pay in advance for using the services and your credit balance on the
subscription keeps reducing in real time against usage. You will need to buy a pro-paid
card, which may or may not have a preloaded calling value. If there is no default
preloaded calling value, then you will need to buy a recharge coupon to add calling value
to your account. These recharge coupons are available in different denominations.
Every recharge coupon has a pre- defined calling value and a validity period. This means
that you need to use the entire amount of your coupon within a certain time limit. In case
you exceed the time limit or the coupon value, your number will be deactivated till such
time as you r enew your coupon. You will be given grace period beyond this time limit to
recharge your account, If the account is not recharged within the grace period, the prepaid
subscription is permanently deactivated and the balance, if any, is forfeited. Once the
grace period is expired, the prepaid subscription gets permanently deactivated. In this
case, you will need to buy a new prepaid card and gets a new cellular number as the old
number can no longer be allotted.
10 6.00 0 Days
20 14.25 0 Days
30 24.50 0 Days
SMS
A.P: 1paiesa
Outside A.P: 60paiesa
International: Rs. 1.00
Validity: Unlimited
Respectively.
POSTPAID:
Post-paid Charges:
National Roaming
Tariff
Local Idea Outgoing Re.1 Re.1 Re.1 Re.1
Bill Payment
Idea gives you the convenient option of making your bill payment either by cash, local
cheque/DD/PO/Internet or Credit Card. Payment should be made in favour of Vodafone
idea Ltd. To ensure quick and easy processing of your payments, please write your
account/cellular number on the reverse of the cheque /DD/PO and submit the same along
with the remittance slip. Please don’t use drop boxes cash payments.
Industry profile
Cellular Industry:
The technology that gives a person the power to communicate anytime has spawned an
entire industry in mobile Telecommunication. Mobile telephones have become an
integral part of growth, success and efficiency of any business or economy. The most
prevalent wireless technology in the world today, is GSM. The DSM ASSOCIATION
(Global System for Mobile Communication) was instituted in 1987 to promote and
expedite the adoption, development, deployment and evolution of the GSM standard for
digital wireless communication. The association was formed as a result of a European
community agreement on the need to adopt common standard suitable for cross border
European mobile communications. Starting off primarily as it was then called soon came
to represent the global system for mobile communications as it achieved the status of a
worldwide standard
The GSM membership has grown exponentially since 1992. The membership now
extends to 501 members from over 161 countries. The 373 GSM networks worldwide
now service over 369.9 million customers. The world’s satellite operators have also
joined the GSM community, which further adds to its strength and also its impact on
world markets. GSM today, the world’s leading digital standard accounts for 68.5% of
the global digital wireless markets.
Growth in GDP: A World Bank report has drawn a direct relationship, between growth in
tale industry and its impact on economic growth. The report states that for every 1-%
increase in Tele-density, there is a 3% increase in the growth of GDP.
Increased FDI Flow: The telecom sector attracts the largest foreign direct investment in
the country, with FDI inflow of RS.300 billion, accounting for almost one-fifth of FDI
approvals since 1991. Of this the bulk of the investment has flowed into the basic and
cellular sectors with the actual FDI into cellular service equals to 50% of the total inflows
into tee telecom.
Heavy investment in infra structure: This sector is responsible for the single largest chunk
of investment by any individual industry – with an actual investment of RS.150 billon till
the year 2005 for the revenue generation for the government of India. The cumulative
revenues that have already flowed to the government of India through license fee and
non- license fee sources by year 2000 are already in the region of RS.85 billion.
In India telecom industry has gathered enough momentum in the past 5 years due to the
entrance of the private players in the telecom sector. There are loud noises in the telecom
sector. Obviously each operator shouted loudly when TRAI started unifying the access
licenses. But gradually, they settled down and the transition led to an explosive growth of
the sector. There will be even more growth when total unification takes place. TRAI is
desperately working hard to bring in this transition.
Given this back ground, the citation of the Asia Pacific’s Best regulator award 2004’ for
TRAI is really encouraging. It reads: “Telecom Regulatory Authority of India (TRAI)
receives the Asia Pacific Regulator of the year award for its unprecedented decision to
allow for unified licenses for telecom services in India ending finally the uncertain
environment in which the telecom operators of India were working. The Indian telecom
industry has been subjected to certain degree of regulatory confusion from the time [the]
industry was liberalized initially led by concerns of independence of regulatory authority
from the incumbent player. The situation was not helped by near astronomical figures
quoted as bids by potential cellular and fixed licensees in the first round of liberalization
of the entry of WLL based players complicated the already complex issues in the
industry.
BY allowing for [an] unified licensing regime under which both basic and cellular
operators are to be allowed to offer either type of service without the formality of
acquiring a separate license has allowed the optimism back in the industry and favourable
to foreign investors. The decision would allow the Indian Industry to grow appreciably
over the next few years and make telecom services available to a wide spectrum of the
population in the country.”
Tariffs did come down for consumers. Just a few years ago, mobile tariffs used to be
RS.16 a minute at both ends. Today’s regime of “calling Party Pays”, convergence, and
the falling trends of tariffs have lowered the effective charge to users, to below Re 1.00
per minute; (the effective charge takes into account outgoing as well as incoming
minutes). This declining trend, and the sector’s consequential growth, is clearly
demonstrated by the accompanying graph.
Sales promotion:
Sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services by
consumers or the trade .Sales promotion is a key ingredient in marketing campaigns.
Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
Sales promotion includes tools for consumer promotion- samples, coupons, cash refund
offers, price offs, premiums, prices, point - of- purchase displays and demonstration;
Trade promotion – prices off, advertising and display allowances, and free goods; and
business and sales for promotion – trade shows and conventions, contests for sales reps
and specialty advertising.
Internal Factors:
Promotion is now more accepted by top management as an effective sales tool; more
product managers are under great pressure to increase current sales.
External Factors:
The number of brands as increased; competitors use promotions frequently, many brands
are seen as similar: consumers are more price-oriented; the trade has demanded more
deals from manufactures; and advertising efficiency has declined because of raising costs,
media clutter and legal restraints.
● Communication: They gain attention and usually provide information that may
lead the consumer to the product.
⮚ Establish objectives
⮚ Select the sales promotion tools
⮚ Develop the program
⮚ Pre-test the program
⮚ Implement and control the program
⮚ Evaluate the results
Impact of Brand Endorsement on promotion
Research on image built through endorsement of celebrities show that there are three
aspects that influence a consumer’s attitude of a brand.
These are:
⮚ Attractiveness
⮚ Trustworthiness
⮚ Expertise
Examples of how some celebrities in India have been use in advertising in India have
been used in advertising to enhance brand image are listed below.
A film actress like Madurai Dixit is a credible source of information for soap. Khaitan,
the owner of the brand himself assures 100% reliability of the brand in the advertisement
thus making the information dependable. The Uprightness of Seshan makes him credible
when he recommends a frozen vegetable brand claiming that if you are a vegetarian you
need not be “soft.” Nanina Bolsover, well-known beautician can credibly advertise for
sun silk and Tendulkar for Rocker.
“What is Neff to one person can be cult to someone else. The key is making sure an
advert or endorsement hits the right note with the people you are looking to retain or
convert into customers.”
Born of Intelligence bred on convenience that’s Idea Chit Chat for you. Our prepaid
cellular service delivers superior calling and value added capabilities. On the strength of
our state-of-the-art INTELLIGENT SYSTEM. And when it comes to you from the world
leader in telecommunications, rest assured; IDEA will change your life. The Idea Chit
Chat is a rechargeable SIM card easily available across a host of dealer and retail outlets
all over your city. The STARTER PACK includes the SIM and “complimentary” airtime
with a limited expire period, before which you will need to “top up” your Chit Chat
account with “sufficient talk time value” by buying RECHARGE VOUCHERS of
variable denominations and RECHARGING them on your SIM card account.
All Idea Chit Chat cards are equipped with formidable features like short Message
Services (SMS), National Roaming, Caller Line Identification Presentation (CLIP) and
Long Distance (STD) as well as International Calling (ISD). To sound sweeter Idea Chit
Chat doesn’t come with any hassles of bills, payment due dates, late payment charges,
rental or deposits. Instead it sets you free with instant balance enquiry, round- the- clock
recharge facility, on-line recharging system and a 24 hours; 365 days Customer Care
Service.
1: The mobile service subscribed by the respondents
Table 1:
1 Idea 35 35
2 Airtel 15 15
3 Vodafone 15 15
4 Reliance 10 10
5 Cell one 10 10
6 Tata docomo 15 15
Table 2:
1 Pre-Paid 29 29
2 Post Paid 71 71
80
70
60
50
Pre Paid
40
Post Paid
30
20
10
0
No. of respondents Percentage
Inference:
29% respondents of Idea are using pre-paid
71% respondents of Idea are using post paid
From this we can conclude that most of the respondents of Idea prefer post-paid service
than to prepaid.
Table 3
1 Rs.108 11 11
2 Rs.324 55 55
3 Rs.540 10 10
4 Rs.1080 15 15
5 Rs.3240 9 9
50
40
30
No of respondents
20
Percentage
10
Inference: 11% respondents prefer Rs. 108 recharge coupon, 55% respondents prefer
Rs.324 recharge coupon, 10% respondents prefer Rs.540 recharge coupon, 15%
respondents prefer Rs.1080 recharge coupon, 9% respondents prefer Rs. 3240 recharge
coupon.
From this we conclude that most of the respondents prefer the Rs. 324/- recharge coupon.
MODE OF AWARENESS
Table 4
1 Television 23 23
2 Print Media 23 23
3 Friends/Relatives 37 37
4 Hoardings 7 7
5 Other 10 10
40
35
30
25
20
15
10 No. ofrespondents
5
0 Percentage
Figure 4- Type of Media
Inference: 23% respondents came to know through television, 23% respondents came
to know through print media, 37% respondents came to know through friends / relatives,
7% respondents came to know through hoardings, 10%respondents came to know
through others.
From this it is clear that most of the respondents came to know about idea through friends
/ relatives.
Table 5
4 Brand loyalty 0 0
Total 39 100
60
50
40
30
20
No of respondents
10
Percentage
0
MostBest qualityWidestBrand
friendly &network coverage inloyalty affordableA.P
plans
Inference: 18% respondents are attracted towards Idea’s most friendly &affordable plans.
31% respondents are attracted towards Idea’s best quality network.51% respondents are
attracted towards Idea’s widest coverage in A.P.1% respondents are attracted towards
Idea’s brand loyalty.
Table 6
1 Service 41 41
2 Transparency in 24 24
billing
3 Call clarity 20 20
4 Other 25 25
Inference: 41% respondents say service need improvement.24% respondents say more
transparency in billing should maintained.20% respondents say call clarity need
improvement.25% respondents say other features need improvement.
From this we conclude that most of the respondents need improvement in service.
7: The sales promotion tools.
Table: 7
2 Customized recharge 9 9
facility
4 Other 15 15
Inference: 38% respondents suggested for extra talk time.9% respondents suggested for
customized recharge facility.38% respondents suggested for free incoming for more than
1 month.15% respondents gave other suggestions for sales promotion.
From this we can say that respondents prefer extra talk time and free incoming for more
than 1 month as good sales promotional tools.
8: The Brand ambassador who can influence sales
Table 8:
1 Film star 34 34
2 Sports person 46 46
3 Politician 3 3
4 Company CEO 17 17
Film starSportsPoliticianCompany
PersonCEO
Table 9:
Total 39 100
45
40
35
30
25
20
No ofrespondents
15
Percentage
10
5
0
WidestBrandMostBest quality
Coverage inloyaltyEconomicaland APand
friendly extensive
packagesnetwork
Inference: 39% respondents suggested for extra talk time.29% respondents suggested
for customized recharge facility.32% respondents suggested for free incoming for more
than 1 month.15% respondents gave other suggestions for sales promotion.
10: The ratings the respondents gave for “Vodafone idea” services.
Table 10
1 Excellent 17 43
2 Good 12 35
3 Satisfactory 10 22
4 Poor 0 0
Total 39 100
Inference:
Table 11
1 Excellent 9 18
2 Good 20 39
3 Satisfactory 16 36
4 Poor 3 7
Total 49 100
Figure 11-Opinion of Respondents
Table 12
1 Yes 56 56
2 No 44 44
100 100
60
50
40
30
Yes
No
20
10
Table 13
Si .no Age group No. of respondents Percentage
1 15-25 31 31
2 26-35 51 51
3 36-45 31 31
4 46 and above 4 4
100 100
60
50
40
30
20
No. of respondents
Percentage
10
Inference:31% respondents are in the age group of 15-25 years.51% respondents are in
the age group of 26- 35 years.14% respondents are in the age group of 36-45 years.4%
respondents are in the age group of46and above-25 years
1 Business 39 39
2 Employee 34 34
3 Student 13 13
4 Professional 11 11
5 Others 3 3
45
40
35
30
25
20
15 No. of Respondents
10
Percentage
5
0
Table: 15
2 5000-10000 45 45
3 10000-15000 17 17
50
45
40
35
30
25
20
15
10
No .of respondents
5
0 Percentage
Inference:
25% respondents are in the income group of less than Rs.5000/- 45% respondents are in
the income group of Rs. 5000-10000.
17% respondents are in the income group of Rs. 10000-15000. 13% respondents ate in
the income group of Rs 15000 and above.
BIBLIOGRAPHY
2) MARKETING RESEARCH
- D.D. Sharma
3) PAMPHLET AND CATALOGUES OF THE COMPANY
8. Which sales promotion activity do you think would be more effective in grabbing more market share?
(e) CELLONE
12. How do you rate the services at “Vodafone idea” [ ]
13. What is your opinion about Idea’s recently launched recharge coupon of Rs.50 and Rs.100?
14. Would you prefer to subscribe for Idea’s lifelong incoming plan?
(a) Yes (b) No [ ]