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IMPACT OF ADVERTISMENT ON POTENTIAL
CUSTOMERS: A STUDY ON RELIANCE
PRODUCTS.
In partial fulfillment of the requirement for Masters Degreein Management Studies (MMS)
Mr. SAYYAD MONISUDDIN
Roll No: B-51
Specialization: Marketing
Academic Year: 2012-2013
Under the guidance of
DR. PREETHI UPAMAKA SRINIVAS
UNIVERSITY OF MUMBAI
Anjuman-I- Islams
Allana Institute of Management Studies (AIAIMS)
Mumbai
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CERTIFICATE
This is to certify that Mr. SAYYAD MONISUDDIN a student of Anjuman-I-
Islams Allana Institute of Management Studies (AIAIMS) pursuing final year in
MMS has completed the dissertation report on IMPACT OF ADVERTISMENT
ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS.
in the Academic year 20122013.
This project work is his own work and is of sufficiently high standard to submit to
the University in partial fulfillment of MMS degree.
Project Guide Director
DR. PREETHI UPAMAKA SRINIVAS Dr. LUKMAN PATEL
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DECLARATION
Project Title:IMPACT OF ADVERTISMENT ON POTENTIAL CUSTOMERS:A STUDY ON RELIANCE PRODUCTS.
Submitted on: 31-03-2013
Under the Guidance of: Dr. Preethi Upamaka Srinivas
College: Allana Institute of Management Studies (AIAIMS)
This is to declare that I, Mr. SAYYAD MONISUDDIN student of AllanaInstitute of Management Studies (AIAIMS) Final semester (Marketing) hereby
declare that I have completed the project on IMPACT OF ADVERTISMENT ON
POTENTIAL CUSTOMERS: A STUDY ON RELIANCE PRODUCTS. in the
Academic year 20122013.
The information submitted is true and original to the best of my knowledge.
Date: 31-03-2013
Place: Mumbai
(______________)
Mr. SAYYAD MONISUDDIN
MMS II Year (2012 - 2013)B-51
SpecializationMarketing
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ACKNOWLEDGEMENT
It is a matter of great satisfaction and pleasure to present this report on IMPACT OF
ADVERTISMENT ON POTENTIAL CUSTOMERS: A STUDY ON RELIANCE
PRODUCTS.
I take this opportunity to owe my thanks to all my faculty members for their
encouragement and able guidance at every stage of this report.
I wish to take this opportunity to thank our institutes director Dr. Lukman Patel,
whose guidance and support has been an important factor for my success in my entire
MMS programmed.
I also wish to thank my project guide Dr. Preethi Upamaka Srinivas who gave
guidance wherever required.
I express my gratitude to all those who have directly or indirectly helped me to make
this project.
I wish to thank my parents who have always supported me and appreciated my work
wholeheartedly and been my inspiration.
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INDEX
SR.NO. PARTICULRS PAGE NO.
1 INTRODUCTION 11
2 ABOUT THE TOPIC 27
3 CONSUMER BEHAVIOUR THEORIES 36
4 COMPETITIVE ANALYSIS 42
5 RESEARCH OBJECTIVES AND METHODOLOGIES 49
6 DATA ANALYSIS AND INTERPRETATION 56
7 CONCLUSION 61
8 SUGGESTIONS 63
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LIST OF TABLE
SR.NO. PARTICULRS PAGE NO.
1 AIRTEL DATA CARD TABLE 44
2 TATA USB MODEM TABLE 45
3 VODAFONE DATA CARD TABLE 47
4 AVERAGE ATTITUDE PERCEPTION SCORE 48
5 PRICING TARRIF PLANS OF RELIANCE 54
6 SCALING ABOUT RELIANCE COMMUNICATION
ADVERTISEMENT
60
7 QUESTIONNARIE TABLE 66
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LIST OF GRAPHS & FIGURES
SR. NO GRAPHS & DIAGRAMS PAGE NO
1DATA INTERPRETATION OF CUSTOMER SURVEY
57
2INCOME LEVEL TABULATION
58
3MAIN COMPETITIVE LANDSCAPE
59
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LIST OF ABBREVATIONS
LTVLife Time Validity
CAFCustomer Application form
GSKGet started Kit
FWPFix Wireless Phone
STVSpecial Tariff voucher
OTAFOver the Air Fulfillment
FRCFirst Recharge Coupon
GSMGlobal System of Mobility
CDMACode Dual Module Assessment
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EXECUTIVE SUMMARY
These days organizations are looking forward to obtain competitive edge over their
competitors through highly developed employee skills, distinctive organizational
cultures, management processes and systems which are in contrast to traditional
emphasis on transferable resources such as equipment that can be purchased any time
by the competitors.
In reliance also much work is done to analyze the impact of advertise and to develop
the marketing competencies so as to have better results. In this context a part from the
various departments the marketing sales department has got a crucial role to play.
In my study I have tried to study the consumer behavior towards advertisement and
Strength, Weakness, Opportunity and Threat analysis of reliance communication with
competitor. For this I had to go to different retailers and customers to find out what
actually they think of the services given by the company.
The research conducted with the objective to judge the impact of marketing on sales
for Reliance gave me the opportunity to obtain feedback from the retailers and
customers both permanent and temporary, thereby analyzing it and finally obtaining
the imperative decision.
Similarly as a part of my schedule, I not only analyzed the impact of advertisement
and consumer behavior and also Strength ,Weakness ,Opportunity and Threat was
analysis for reliance but also got a chance to meet different retailers and know what
are the problems they are facing and how we can solve their problems. I also analyzed
the Channel distribution and got to know how communications flow from retailer to
consumer.
Thus the task was not only restricted in the purview of interaction with the retailers
but also providing an insight about understanding the channel distribution.
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Thus the induction programmed followed by the associate manual not only makes the
employees familiar with the company but also make them enthusiastic to face
challenges and motivate to work for the growth of the organization.
The second part consists of data and their analysis, collected through a survey done on
50people. It covers the topic impact of advertisement. The data collected has been
well organized and presented.
Hope the research findings and conclusions will be of use. It has also covered why
people are not happy with the service provided by the salesman. The advisors can take
further steps to approach more and more people and indulge them for taking their
advices. The whole task was manual and interactive, giving me a chance to have a
word with the customers.
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1.1 ADVERTISING
Advertising is a form ofcommunication intended to persuade its viewers, readers or
listeners to take some action. It usually includes the name of a product or service and
how that product or service could benefit the consumer, to persuade potential
customers to purchase or to consume that particular brand. Modern advertising
developed with the rise of mass production in the late 19th and early 20th centuries.
Commercial advertisers often seek to generate increased consumption of their
products or services through branding, which involves the repetition of an image or
product name in an effort to associate related qualities with the brand in the minds of
consumers. Different types of media can be used to deliver these messages, includingtraditional media such as newspapers, magazines, television, radio, outdoor or direct
mail. Advertising may be placed by an advertising agency on behalf of a company or
other organization.
Organizations that spend money on advertising promoting items other than a
consumer product or service include political parties, interest groups, religious
organizations and governmental agencies. Nonprofit organizations may rely on free
modes of persuasion, such as a public service announcement. In 2007, spending on
advertising was estimated at more than $150 billion in the United States and $385
billion worldwide.
http://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Public_service_announcementhttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Persuadehttp://en.wikipedia.org/wiki/Communication -
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1.2 CONCEPT OF RELIANCE COMMUNICATION
The marketing strategy of Anil Ambani has made millions of Indians happy, they got
the best mobile tariffs in the world-local call costs at 15 paisa/minute, and STD call at
40 paisa/minute. And also awarded the Telecom person of the year 2007.
When the VOICE&DATA jury, comprising eminent professionals from the telecom
field, met in Delhi in June to choose the Telecom Person of the Year 2007, the five-
hour selection process was steamy.
The reason was obvious: The telecom sector is growing faster than any other segment
and naturally their CEOs have a lot to crow about. The jury had to select one from
three CEOs, who had made it to the final list through nominations from the industry
and the initial scrutiny. Among the three, one of the main contenders was a young
CEO. The jury decided that he should come back next year to try and win the coveted
award. The list now had two names-both CEOs of two well-known companies. The
pivotal difference between the two: one is an entrepreneur and the other is not so
popular, as his credit is shared among a number of his big daddies.
Following a five-hour closely held, hotly debated discussion, the name wasannounced: Anil Dhirubhai Ambani, chairman of Reliance Communications. Anil
Ambani joined Reliance Industries (currently promoted by his brother Mukesh
Ambani, following their split) in 1983 as co-chief executive officer. Forbes ranked
him number 104 among the World's Richest People in 2006. The Ambani family
faced criticism when it announced.
Its ambitious plans to build a countrywide telecom network, as its prior expertise lay
in commodities-textiles and petrochemicals-business only. Apart from that telecom
needs a service-oriented mindset, critics felt. What they did not remember was how
the family had served its millions of shareholders.
Policies in India are made in line with Ambani's vision, says an industry expert. His
business acumen and closeness to politicians assisted him in making it to the Rajya
Sabah in June 2004, as an independent member. Ambani chose to resign voluntarily
on March 25, 2006.
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The same association with politicos gave him negative returns too when the
Mayawati Government in Uttar Pradesh put a spanner on his ambitious plans to build
a 1,200-acre SEZ.
Media sees his aggression when he announces financial results for the Reliance ADA
group of companies, and when he attends the annual general meetings and faces
questions from shareholders. When he meets the press, he has answers to all their
questions. He also remembers to call select journalists by name.
To merchant bankers he, who has already contributed immensely to the financial
reforms of the country, is one of the financial wizards of the world. May be because
of his expertise, he gave up in the race to grab Hutchison Essar stake, after indirectlyjacking up the valuation. His negotiations with the Qualcomm chief are also a folk
theory now.
His path-breaking marketing strategy that was put in by the strongest team of telecom
professionals the country has ever seen has made millions of Indians happy as they
got the best mobile tariffs in the world. The aggression resulted to adding to his
already swollen kitty. Every hour India will be adding around 20,000 new mobile
customers and Reliance Communications over 4,000.
When mobile telephony first began in India, a local call cost Rs 16 per minute; an
STD Rs 50; and a call to the US Rs 100 per minute. With Reliance Communications
pioneering price initiative, a local call now costs a mere 15 paisa per minute, STD 40
paisa, and a call to the US costs less than Rs 2 per minute. The presence of Reliance
Communications is making the competition in India panicky. Global telecom forces
will also shortly start feeling the heat. Ambani has also recently announced his Rs1,200 cr. buyout of Yipes Holdings.
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Reliance Communication Achiever's Pride
Anil D Ambani is the CEO of Reliance Communication. He undertook financial
restructuring of Reliance communications to spend Rs 16,000 cr. to expand and
strengthen network coverage.
After expansion of Reliance Communications it will have the single largest
wireless launched the lowest-cost classic brand handset at Rs 777.
Subscriber base grew to over 28 MN during last fiscal, registering 60% growth. Total
Revenue shot up to Rs 14,468 cr. an increase of 34%.The Net Profit rises to Rs 3,163
cr. an increase of over 600%.Revenues of the wireless business increased by 46% to
Rs 10,728 cr.The broadband of reliance communication achieved revenue growth of
123% to Rs 1,144 cr.The market capitalization crossed Rs 100,000 cr.and it will add
near about 23,000 more towers.
Telecom services will be available in over 23,000 towns and 600,000 villages and the
next generation DTH network will be launched before end of the year.
Reliance Communications' wireless subscriber base grew to over 28 million last
fiscal, registering a 60% growth. This makes it one of the top two wireless operators
in India.
"Economic growth in the future will be indexed to connectivity of millions of
enterprise and individual customers. Over the next few years, we will have over 100
million customers, making us one of the top 5 telecom players in the world. In four
years, we put up a total of 14,000 towers across the country. This year alone we will
add 23,000 more towers. Our wireless network is currently available in 10,000 towns.
By the end of this year, it will be available in over 23,000 towns and 600,000
villages," Anil Ambani said at the first annual general meeting of Reliance
Communications since the re-organization of the Reliance Group in June 2005.
"In four years of operations, we invested around Rs 32,000 cr. This year alone we will
invest over Rs 20,000 cr. At the end of this year, we will have covered over 90% of
our population. If Version 1.0 of the Indian telecom story was all about affordability.
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Version 2.0 will be about reach. Our Network expansion will give us the power to
drive the market and stay ahead of the curve," Ambani adds.
According to Ambani, the financial restructuring of Reliance Communications is the
biggest turnaround story in the history of corporate India. The inherited ownership
structure of Reliance Communications was complex. The reorganization has yielded a
simple, fair, and transparent ownership structure, and given Reliance Communications
100% ownership of all operational and associate companies.
Reliance Communications is now among the three most valuable private sector
companies in India, and the five most valuable telecom companies in Asia, in the
current.
Fiscal, Reliance Communications will spend Rs 16,000 cr. to further expand and
strengthen its network coverage across India and the rest of the world.
In addition to organic growth, Reliance Communications will leverage the advantages
derived from this impressive financial platform to explore and pursue any significant
opportunities available in the telecommunications sector. "We are currently evaluating
a number of inorganic opportunities in select international markets to further expand
our footprint," Ambani said.
As per its expansion plan, Reliance Communications will have the single largest
wireless network in the world, covering over 900 million Indians or more than 15% of
the global population.
It will cover 23,000 towns or every single Indian habitation with a population
of over 1,000. Reliance Communications will cover almost 100% of all rail routes,
providing seamless voice, video, radio, and Internet connectivity to 14 mn commuters
every day. It will also cover almost 100% of all national highways, and 84% of all
state highways, giving millions of users the power to talk, text, surf, play, chat or
simply stay in touch across nearly the entire length of India's 2,00,000-km-long road
network.
Having achieved tremendous growth, the main challenge for Reliance
Communications is to improve quality of service and ARPU.
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Its enterprise business is also not in a position to compete with the global majors.
Stock market valuations may boost the fortunes of an entrepreneur, but Ambani needs
to address the issues faced by the growing mobile customer base, especially in India,
where bureaucracy takes pride in checking the businessman.
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1.3AN OVERVIEW OF CURRENT MARKET SCENARIO
Reliance Communications (formerly Reliance Communications Ventures) is one of
India's largest providers of integrated communications services. The company has
more than 20 million customers and serves individual consumers, enterprises, and
carriers, providing wireless, wire line, long distance, voice, data, and internet
communications services through a number of operating subsidiaries. The company
sells communications and digital entertainment products and services through its
chain of Reliance Web World retail outlets. The company's Reliance Infocomm
subsidiary provides wireless communications services throughout India. Reliance
Communications is part of the Reliance - Anil Dhirubhai Ambani Group.
The current network expansion undertaken by Reliance is the largest wireless network
expansion undertaken by any operator across the world.
It was with this belief in mind that Reliance Communications (formerly Reliance
Infocomm) started laying 60,000 route kilometers of a pan-India fiber optic backbone.
This backbone was commissioned on 28 December 2002, the auspicious occasion of
Dhirubhais 70th birthday, though sadly after his unexpected demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless and
wire line) and convergent (voice, data and video) digital network. It is capable of
delivering a range of services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services for enterprises
as well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionizing the way India communicates and
networks, truly bringing about a new way of life.
We will leverage our strengths to execute complex global-scale projects to facilitate
leading-edge information and communication services affordable to all individual
consumers and businesses in India.
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We will offer unparalleled value to create customer delight and enhance business
productivity. We will also generate value for our capabilities beyond Indian borders
and enable millions of India's knowledge workers to deliver their services globally.
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1.4 HISTORY OF THE ORGANISATION
In 2009 on12 January reliance communication launches GSM services in Delhi. On
31 January 2009 all new reliance mobile GSM connections come with lifetime
validity at a nominal charge. On 5th of February 2009 reliance GSM service in J&K.
On 12 February 2009,R-Globalcom bags work orders from 3 global retailers.On 13
February 2009 the company launches 50 min STD pack in 35 Rs. On GSM 26
February 2009 reliance communication launches voice-based mobile navigation
service.9 June 2009 reliance communication has entered into joint venture with
Kribhco (Krishna Bharti cooperative ltd.).28 February 2009 reliance communication
adds 3.3.-mn. Wireless customers in Feb 9 march 2009 reliance communicationplaces
300 cr.Modem orders with huawei,ZTE ZTE10 march 2009 reliance communication
adds record 11 m subscribers13 march 2009 reliance communication unveils new
wireless net service. Then on 22 march 2009 reliance communication launches a new
format of reliance mobile store then on 25 march 2009 reliance communication post-
paid services for in U.P & uttarakhand.On 1 June 2009 reliance communication signs
Hrithik Roshan as brand ambassador .On 8 June 2009 reliance communication bagged
a 125 cr.
WAN contract from global consultancy major Mott Macdonald. Then on 11 June
2009 reliance communication to offer BlackBerry services for Rs. 299.On 18 june
2009 reliance mobile in deal with EA mobile.In 2008 January 12 reliance
communications receives Start-up GSM Spectrum. In January 16 Yahoo partners with
reliance communications to provide Yahoo One Search for its CDMA and GSM
customers. January 31 reliance communications Q 3 Net Profit increases by 48.5%
and revenues up by 29.8 %. Remains the most profitable telecom company in India.
February 4 reliance communications offers lifetime validity at Rs 199.Reliance
communications subsidiary infracted files draft red herring prospectus with
SEBI.February 5 reliance mobile strengthens its religious content portfolio on mobile
by tie-up with Sadhana TV. On February 14 reliance communications in partnership
with canvas launches multiplayer mobile games. February 19 HDFC Bank ties up
with reliance communication which turns every Reliance Mobile into a credit card.
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On February 27 reliance communications consolidates global telecom business under
Business Globalcom.Reliance communications forays into international mobile
market with GSM license in Uganda. On March 3 reliance communications drops
prices of internet data cards. On March 10 reliance communications announces
ESOPs for over 20,000 employees. On March20 reliance communications and HTC
forge strategic alliance. On March 27 corporation bank launches banking services on
reliance mobile world. On April 1 reliance communications forays into IT space for
launches of reliance technology Services Company. On April 9 reliance
communications launches educational portal on reliance mobile phones.
On April 25 reliance globalcom unit reliance infocom BV, Netherlands acquires
global WiMAX Operator wave in world. On April 29 reliance communications
announces unlimited free STD calls. On April 30 reliance globalcom launches
passport, global SIM reliance communications net profit up by 70.8% to Rs 5,401
cr.On May 2 reliance communications net profit up by 70.8% to Rs 5,401 cr. (US$
1,350Million), Revenues higher by 31.8% to Rs.19, 068 cr. (US$ 4,765 million) and
EBIDTA increases by 43.3% to Rs.8, 199 cr. (US$ 2049 million).On May12 reliance
communications and alcatel form joint venture to offer managed network services to
Telcos across the globe.
On May 26 reliance globalcom acquires UK based VANCO group limited. On June
24 reliance globalcom, stealth communications forge strategic alliance to extend
VOIP network across 50 countries. On July 12 CA exam results on reliance mobile
came. On July 22 reliance communications mobile subscriber base crosses 50 Million.
On July 29 CA professional exam results on reliance mobile.
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1.5 BRIEF STUDY OF THE ORGANIZATION
CHAIRMANS PROFILE
Regarded as one of the foremost corporate leaders of contemporary India, Shri Anil
D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group,
namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance
Natural Resources limited.
He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of
Information and Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director of
Reliance Industries Limited (RIL), Indias largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was
centrally involved in every aspect of the companys management over the next 22
years.
He is credited with having pioneered a number of path-breaking financial innovations
in the Indian capital markets. He spearheaded the countrys first forays into the
overseas capital markets with international public offerings of global depositary
receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries inits efforts to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue
forthecompanyinJanuary1997.
Under his chairmanship, the constituent companies of the Reliance ADA group have
raised nearly US$ 3 billion from global financial markets in a period of less than 15
months. Shri Ambani has been associated with a number of prestigious academic
institutions in India and abroad.
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He is currently a member of:
Wharton Board of Overseers, The Wharton School, USA
Board of Governors, Indian Institute of Management (IIM), Ahmadabad
Board of Governors, Indian Institute of Technology (IIT), Kanpur
Executive Board, Indian School of Business (ISB), Hyderabad
In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha
Upper House, Parliament of India, a position he chose to resign voluntarily on
March 25, 2006.
Select Awards and Achievements
Voted the Businessman of the Year in a poll conducted by The Times of India
TNS, December 2006
Voted the Best role model among business leaders in the biannual Mood of the
Nation poll conducted by India Today magazine, August 2006
Conferred the CEO of the Year 2004 in the Plats Global Energy Awards
Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the establishment
of Reliance as a global leader in many of its business areas, December
2001Selected by Asia week magazine for its list of 'Leaders of the Millennium in
Business and Finance' and was introduced as the only 'new hero' in Business and
Finance from India, June 1999.
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CHAPTER 2: INTRODUCTION OF THE TOPIC
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INTRODUCTION OF THE TOPIC:
The Reliance Net connect Broadband+ USP
Widest Coverage 35 + towns
Fastest Internet in India with High Data transfer Rates( Reliance Net connect
Broadband+)
Wide range of tariffs catering to all requirements
Affordable Limited Mobility option
Unlimited Night time usage option
Latest technologyOnly operator to provide peak speed of 3.1 Mbps
Fastest Speed-3.1 mbps upload and 1.8 mbps download average 600-1300
kbps DL
(Compared to Tata Indicom Photon+, BSNL EVDO services which offer: 2.4
Mbps DL, 153Kbps UL and Avg. 300-500 kbps DL)
Lower Latencyabout 150 ms on Net connect Broadband+ vs.300 ms on
High Speed 1x
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Backward compatible with High Speed 1x service offering seamless
connectivity across Reliance Network of 20,000 towns and 4.5 lace. villages
Customer Segmentation
User Profiles
Profile / Profession of customer
Corporate Executive
Self-employed professional (Doctor/Lawyer/CAs etc)
Entrepreneur (Stock Broker, Traders etc)
Student
Homemaker & Young at Heart
Usage Profile
Purpose for Internet usage / Applications used
Browsing
Stock trading
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Emailing
IM / Voice Chat
Social Networking
Online Gaming
Video streaming
Downloading (Music/movies)
Video Conferencing/chatting
Usage Pattern
At home/office/on the move
Day time usage/ Night time usage or both
Usage Device
Desktop / Laptop
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Value proposition for each user profile
Increase productivity
Multi-location usage (at home & office etc)
Save time
Have work life balance
More information
Entrepreneur
Multi-location usage (at home & office etc)
Better workforce management
Quick access to information (online stock trading etc)
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Professional
Online research & download of research papers
(2) PROBLEM BEING FACED
Lack of communication between retailers and distributor
Lack of improper distribution channel
Competitors
Not regular visit of DSE and Runner
All retailers are not aware of new scheme of RCOM
Lack of sales promotion and advertisement
Retailer doesnt get claim at proper time
No visit of DL or any other person to the retailers shop
Strength
USE OF POPULARBRAND AMBASSADOR
HIGH MORAL APPEAL
Fast Activation Process
Network
Connectivity
Weakness
NEEDMOREUNDERSTANDING
Distribution problem
MOREHIDDENCONDITIONS
Product display is not proper.
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RELIANCE COMMUNICATION LIMITED
(3) WHAT DOES COMPANY EXPECT TO DO BY SOLVING THE
PROBLEM
Customer Satisfaction
Retailer Satisfaction
Increase in Sale
Sales Promotion
Proper Distribution Channel
STRATEGIC WEAPONS OF RELIANCE
The sharpest weapon that a corporation can develop to survive and thrive, in the
globalized market place is competitiveness. Its cornerstone, as articulated by strategy
Guru Michael Porters is. Its ability to create more value, on a sustainable basis, for the
customer than its rivals can.
Opportunity
New Specialist application
New Market, Vertical,Horizontal
Competitors`Vulnerabilities
Competitor are very few
Threat
Political destabilization.
New Entrants IT Development
Market Demand
Seasonality, Weather Effects
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The competitiveness of a corps flow from a clearly defined strategy, devised after
analysis the different forces in the industry impacting on the company, According to
Porter three generic alternatives:
Cost leadership, differentiation, or strategic focus.
Applying these principles along with the related ones of building entry barriers,
erecting economics of scale, developing marketing competitors Reliance has attained
global levels of competitiveness adopting a single unique route to attain competitive
status (their competitive weapon is the scale of operations).
TECHNOLOGY
Reliance led achievement in manufacturing is, of course, its comment once process
technology since its products do not need cutting edge. Not only has Reliance pushed
its production capacity beyond normal levels, it has develop supervisor processes toincrease the utilization and cost efficiency levels.
Communication is the synergy of information and communication services brought
about by the digitalization and convergence. In the fast moving and competitive
knowledge era, Communication is not only a driver of growth but also
competitiveness. Reliance Communication is revolutionizing telecommunication in
India by provisioning services that would match with the leading operators of the
most developed countries. These services are the outcome of state-of-the-art networktechnologies that have been inducted in the Reliance Communication network.
Our network consists of the latest switching, transmission and access technologies.
The core of the network consists of fiber deployed throughout the country. Deployed
over the fiber media are the DWDM and SDH transmission technologies in ring
topology to provide ultra-high bandwidth capacity and failure proof backbone.
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Besides circuit switched technologies, the backbone also has IP architecture and uses
MPLS technology to carry data on an overlay network. In addition gigabit Ethernet
provide broadband services on wire line access.
The switching technology deployed in our network is based on a combination of wire
line and wireless switches. While state-of-the-art digital feature-rich wire line
switches meet the growing needs of Indian corporate.
The CDMA 1X based wireless switches are advanced enough to provision not only
quality spectrum efficient voice services but also 144 kbps of data rates besides SMS
and MMS services. CDMA 1X provides an in-built connectivity to internet which
gives users the power of accessing internet and data services anytime. These
switching technologies enable us to provide high quality of voice and data services to
give a new experience to users.
The entire network is seamlessly integrated with the deployment of a range of
operations and business support systems (OSS / BSS). These systems help make our
operations more efficient and customer friendly. In addition, the state-of-the-art NOC
helps us monitor our entire network at one place. Call center technologies deployed
would help us give the best customer service.
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CHAPTER 3: CONSUMER BEHAVIOUR
THEORIES
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1.1 Consumer perception and consumer behavior
According to Rice (1993), perception is the initiator of behavior. It can also be
seen as a process of information extraction. Perception is the process by which anindividual selects, organizes, and interprets information inputs to create a
meaningful picture (Kotler,2000).Different people tend to perceive quite differently
even when they are exposed to the same reality.
A set of factors, e.g. individual responses, determine an individuals perception
process and lead to individual differences. The most important is that peoples
perceptions are often more important than the reality in marketing (Kotler, 2000).
The study of customer behavior provides a sound basis for identifying and
understanding the factors that influence consumers purchase on line. Schiff man and
Kanuk (2000) state that the behavior that consumer display in searching, purchasing,
and evaluating products/services is those that they expect to fulfill their needs.
Although perception and behavior are typically treated as two completely
separate phenomena, i.e. the input and output respectively, it has been suggested that
perception and behavior are in fact two sides of the same phenomenon and are
closely related to each other (Rice, 1993).
In order to understand what customer perceive and how they act to affect
their Perceptions, study of perception and behavior should be treated as one integral
part.
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1.2 Consumer decision process
At present, the consumer decision process model has been well accepted. This
model of purchase as decision process is explained in more detail by Thorley et al.(1975). Thorleys decision model illustrates the type and shows there are a series
of semi-discrete steps which take place over time for the buyers and
purchasers.
1.3 Predispositions (Before Purchase)
According to Thorley et al (1975), the prospective buyer possesses a certain stock of
cognitive content, including his own personality or self-concept, attitudes and
opinions both in general and on specific products, and stored information and past
experience. This stock has been formed as a result of his interaction with his
environment over time, and it will help determine the environment in which he
places himself in the future as well as influence his perceptions of that
environment.
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1.4 Product Need
As a result of either cognitive activity or some environmental stimulus, the buyer
recognizes a need which is capable of being satisfied by a product or service. In
other words, the need is often triggered by internal or external stimuli. Some
authors also take this need recognition stage as the entry point. Chas ton (2001)
argues that the potential consumer will not implement any of the other steps in the
buying process until need recognition has happened.
1.5 External Search
Thorley et al (1975) describe that this stage represents all search of the external
environment for alternative solutions as well as for information helpful in
evaluating these alternatives. The search for information occurs on an internal and
external basi s (Gilbert, 1999). The in te rnal search for information from
previous experience might be relevant to the present purchase situation.
The extent and nature of external search for information likely in any given
purchase has been the subject of a great deal of research. When searching for
information in the external environment (e.g., friends and family), consumers focus
on those relevant attributes that are available and are diagnostic (Dick et al., 1990).
1.6 Evaluation of Alternatives
This stage consists of the physical and cognitive activities involved in comparing
alternatives on the basis of information gathered from external search above.
According to Kotler (2000), the consumer arrives at attitudes toward the various
brands through an attribute evaluation procedure and most buyers consider several
attributes in their purchase decision. These attributes used by consumers for
evaluation are also called choice criteria. Jobber (2001) has made a good
summary of these choice criteria. In fact, consumers attempt to optimize the trade-
off between product benefits, product costs, the desired personal utilities and other
variables.
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1.7 Purchase Activity
Purchase activity involves the actual final decision and physical activitiesinvolved in making (or not making) the purchase. This stage includes the actual
transaction. However, as suggested b y Kotler (2000), perce ived ri sks of a
consumer can heavily influence his decision to modify, postpone, or avoid a
purchase decision. Therefore it is necessary for marketers to understand factor that
might provoke perceived risk in consumers and work out solutions to reduce
that.
1.8 Post Purchase Behavior
This step is concerned primarily with the buyers use of the product purchased.
After purchasing the product, the consumer will experience some level of
satisfaction or dissatisfaction which will influence a consumers subsequent
behavior. Dissatisfied consumers may abandon or return the product, they may even
complain to the other group (Kotler, 2000). It is clear that satisfactions and
dissatisfactions created by product performance will be important determinants of
attitudes and information stored as inputs to future purchase decisions.
1.9 Predispositions (After Purchase and Use):
This stage suggests that following the purchase process, the buyer (or non-buyer) is
left with cognitive content which may be quite different from that which was
present at the beginning of the process. Buyers may change their attitudes,
information and experience due to reasons of time and events. All of these may
serve to change substantially the nature of the decision process for future
purchases of same type.
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CUSTOMER BUYING PROCESS
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CHAPTER 4: COMPETITIVE ANALYSIS
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1. Industry Analysis
Indian Telecom industry is one of the fastest growing telecom markets in the
world. In telecom industry, service providers are the main drivers; whereasequipment manufacturers are witnessing growth and decline in successive
quarters as sales is dependent on order undertaken by the companies. Airtel,
Reliance, Tata and Vodafone are some of the companies that are expected to spur the
growth in AMJ08, as compared to AMJ07.
According to Cygnus estimates, telecom industry is expected to grow by 25% in
AMJ08 as compared to AMJ07, in terms of sales. EBDITA and PAT are
expected to grow by 32% and 34% respectively in AMJ08 as cost expenses are
being control by major companies like Airtel and Reliance. The major booster is the
wireless mobile subscriber base; crossing over 261m in March 2008. Other services
like Internet subscriber base has also provided significant impetus with its subscriber
base reaching over 11m in March 2008.
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Bharti Airtel
Bharti Airtel is Indias leading provider of telecommunication service. Airtel Data
Card is the superior PC Data Card solution which delivers wireless internet
capabilities to laptops and notebooks, by providing EDGE and GPRS technologies
in a single PC Card package. On an EDGE network, Airtel Data Card enables
connection to the Internet using EGPRS.
In areas where EDGE services are not available, the Airtel Data Card still
enables reliable and secure data connections over GPRS. The tariff charges of
Airtels data card are shown below.
Airtel Data CardName of Bill
Plan Datacard49 Datacard350Data card
599 NewData card
999 New
Monthly Fixed ChargesMonthly
Charges 49 350 599 999
Data Charges (Rs/Pulse) (All India)Rate Per Pulse 0.1 5 3 0Pulse 10 KB 1MB 1MB 1MBData Usage
Discount Nil 500 Mb 1 GBUnlimited
Free
Default Voice Charge
Local Outgoing (Rs/Min) (Kolkata, West Bengal, Sikkim and A &M
Airtel to All 1.99 1.99 1.99 1.99
STD Outgoing (Rs/Min)
Airtel to All 2.99 2.99 2.99 2.99ISD Outgoing
# Slab 1 6.4 6.4 6.4 6.4# # Row 1 9.2 9.2 9.2 9.2# # # Row 2 40 40 40 40
SMS (Rs/SMS)Local 1 1 1 1National 2 2 2 2International 5 5 5 5
Free
SMS/Month Nil Nil
100
Local
SMS100 Local
SMS
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Tata- Indicom
Tata-Indico currently at leading position in wireless data card market in India. Tata
Teleservices Tata-Indicom data card sales have exceeded the 100,000subscribers milestone. Using CDMA 1x technology, Tata-Indicom data cards
offer wireless internet access. The recently launched Plug 2 Surf Whiz fits into a
standard USB port available in most desktops and laptops. TTML's Plug 2 Surf
Whiz offer is being promoted with outdoor campaigns across Mumbai and
Maharashtra. The tariff charges of Tata-Indicoms data card are shown below:
TATA USB Modem
Plan Name Highlight Fixed Charge Free Usage Additional UsageTime Based
Budget 150 Lowest rental Rs.150/month 300min 50p/min
Value 325 Free 1hr/day Rs 325/month1800 Min
(30 Hrs)
8AM -
12AM:50p/min
12AM -8AM
:25p/min
Data BasedME
UnlimitedUnlimited
usage Rs.1099/month Unlimited N/AME
Economy Always On Rs. 500/month 512MB Rs. 2/MBME Jumbo For Heavy Rs. 650/month 1GB Rs. 2/MBME Max Users Rs. 900/month 2GB Rs. 2/MB
ME 6 AdvancedRs.
3600/6month 1GB Rs. 2/MB
ME 12 RentalRs.
6700/annum 1GB Rs. 2/MB
Voice Tariff
Rs. /min To TATA To OtherLocal 50 Paisa Rs. 1STD Rs. 1.69 Rs. 2.65
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Bharat Sanchar Nigam Limited (BSNL)
Bharat Sanchar Nigam Ltd (BSNL) is a public sector undertaking, wholly owned by
the Government of India. BSNL has decided to launch its Data Services on CDMA2000 IX by using BSNL Internet Connect Card (ICC) based on broadband
connection for laptop users in India. The CDMA IX ICC will provide Internet
Service @144kbps to computer users on their laptops as well as on desktops.
This service will be available in all those locations wherever CDMA IX MSC
based coverage is there. However, during roaming the said Internet connectivity will
not work at present. The following two types of data Cards will be available forBSNL customers:
(A)Network Interface Card (NIC): For internet speed up to 144 Kbps.
(B)EVDO Card: Internet speed up to 2.4 Mbps. The Tariff of this service is
around 550Rs/month for speeds up to 2.4Mbps in most cities in India.
Though there are reports that the pricing differs based on cities and starts at
400Rs/month to 550Rs/month.
City Wire tariff plans charges data card are shown below: Pricing in UP
Plan 1 - 1650 Down Payment + 400Rs/monthly Rent Plan 2 - 3600 Down Payment +
250Rs/monthly Rent Pricing in Jamshedpur (Jharkhand)
Plan 1 - 2460 Down Payment + 750Rs/monthly Rent
Plan 2 - 3600 Down Payment + 250Rs/monthly Rent
Pricing in Chennai Plan 1 - 3500 Down Payment + 250Rs/monthly Rent
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Vodafone -Essar (Erstwhile Hutchison Group)
The Hutchison Group provided GSM mobile services in 13 circles across the country.
Its main equity partner is the Essar Group. Vodafone recently launched its wireless
internet device like
Vodafone Mobile Connect Globe Trotter EDGE data card
Vodafone Mobile Connect USB Modem
Vodafone Mobile Connect USB Stick
The tariff charges of Vodafones data card are shown below:
Monthly rental (Rs) 499 99
Free data 500MB GB
Usage charges 5P/10KB P/10KB
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Average attitude perception score of each brand
Initial Eigen values Extraction Sums Loadings
Total % of
Variance
Cumulative% Total % of
Variance
Cumulative%
1
2
3
4
5
6
7
2.705
1.881
1.431
1.124
.827
.435
.768
24.201
14.443
13.563
9.688
8.032
6.437
6.407
24.401
31..768
52.338
64.075
70.221
78.334
82.451
2.805
1.798
1.502
1.543
24.542
16.547
13.516
10.872
23.294
41.643
54.543
63.098
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(1) RESEARCH PROBLEM
Collection of Data of other companiesTata, Airtel, Idea & BSNL
Retailers some time gives wrong data
Limitation of time and money
(2) RESEARCH OBJECTIVE
To know the demand of Reliance Net connect in the market.
To help in development and introduction of new product and plans.
To identify the company position among competitors
To determine those factors which persuade retailers for sale of RCOM
Sims/product
To find out which type of schemes retailers prefer and why?
To study the effect of irregular supply on the sale of the product
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(3) SUBJECT OBJECTIVE
To compare the Tata, Idea, and Vodafones HSD for analyzing the status
of RCOM Bundle Offers.
To identify the Market share of RCOM
To find out the basic problems of retailers
To find out the performance of Distributor
To find out the basic problems of Channel of Distributor
To find out the Claims pending of Retailers.
(4) HYPOTHESIS
It has been partially assume that, advertising does have the impact on
potential customers.
The brand name and advertise partially affect the consumer buying
behavior.
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(5) INFORMATION REQUIREMENT
Complete Price structure of reliance communication, TATA, IDEA and
VODAFONES offerwhich includes:-
Activation Charges
Discount Offered
Schemes offered
(6) SOURCES OF INFORMATION
Data collected of the Company
Secondary Data
Internet
Retailers
Distributor
Sales Executives
Other Trainees (Runner)
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(7) SCHEMES, PRODUCTS
RELIANCE PRODUCT
Reliance Base Phone
Reliance Mobile
Reliance Data Card
Reliance Voucher, E-Recharge
Reliance PCO
Reliance Broad Band
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PRICING TARRIF PLANS
Plan
Name
Monthly
Rental
Bundled
Usage
Usage
Chargesbeyond
Free
Usage
Roaming
Pay Asyou Go
Rs. 299/- Nil Rs. 2/- perMB
Nationwide
Broadband+ 1 GBPlan
Rs. 650/- 1 GB Rs. 2/- perMB
Nationwide
Broadband+ 2.5 GBPlan
Rs. 850/- 2.5 GB Rs. 2/- perMB
Nationwide
Broadband+ 5 GBPlan
Rs. 1099/- 5 GB Rs. 2/- perMB
Nationwide
Broadband +CitywideUnlimited
Plan
Rs. 1099/- UnlimitedCitywide
Broadband +UnlimitedPlan
Rs. 1750/- Unlimited Nationwide
Unlimited@Night
Rs. 499/- UnlimitedNight
50 paisaper minuteduring day(between 6AM10PM)
Nationwide
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RESEARCH METHODOLOGY
Research methodology is a way to systematically do the job. It may be understood as
a science of studying how research is done scientifically. The most desirable approach
with regards to the selection of the research methodology depends on the nature of
particular work, time and resources available along with the desire level of accuracy.
Research Type - Descriptive Research
Data Source - Primary Data
Research Instrument - Questionnaires
Type of Questionnaire - Structured
Sampling Unit - Retailer and consumer
Sampling Method - Judgmental
Contact Method - Personal Interview
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CHAPTER 6: DATA ANALYSIS AND DATA
INTERPRETATION
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(1)DATA INTERPRETATION OF CUSTOMERS SURVEY
Age groupTabulating in percentage the age group of customers
Above figure shows that researcher having surveyed 18 respondents, 25% belong to
age group 18-28%, 47% belong to age group 28-35%, belong to age group 36-45 and
6% above age of 45.
Age Group Percentage (%)
18-25 25
28-35 47
36-45 22
Above 45 6
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Income Level Tabulation
The above analysis shows that 42% of the respondents belonged to the Rs.8000/- and
below income category, 34% belonged to Rs.8000 to Rs.12000 and 18% belonged to
Rs.12000-Rs.20000 and 6% above income of Rs. 20000.
Income Group Percentage (%)
8000 42
8000-12000 34
12000-20000 18
> 20000 6
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The main competitive landscape can be summarized below:
Room wire line- ------------------ white color
BSNL wire line- ------------------ yellow
Tata wireless------------------- sky blue
Airtel wire line------------------- red
RCOM wireless- ---------------- dark blue
BSNL wireless------------------ brown
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SCALING ABOUT RELIANCE COMMUNICATION
ADVERTISEMENT
Scale Percentage
Very good 20
Good 25
Satisfactory 40
Poor 10
Cant say 5
The survey revealed that 40% of the respondents Reliance advertise as satisfactory.
This is a telling comment. However the survey also found out that 20% and 25% of
the respondents Reliance advertise as very good and good respectively. There were
5% of the respondents who had nothing to say about the RIM.
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CHAPTER 7: CONCLUSION
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CONCLUSION
Reliance Communication of Anil D.Ambani Group is very fast catching up with the
market by providing economic internet rates. The market strategies adopted by its
executives are bearing fruits and the company although being the Second one to enter
the market. Nagpur has found a suitable niche and recognition in the consumer. But
this is not a thing for self contentment as the survey reveals that in network, service
and distributor, so to withstand the competition resources mobilization and
technological innovation on the part of cos.
To upgrade its quality of network and services is urgently called for market access
and growth is alright but the improvement of quality on the above counts is necessity
of the time.
Most of the customers that are around 74% of respondents are satisfied with reliance
communications brand, 10% of them push reliance communication brand to the
average service and rest 16% customers are not satisfied with reliance communication
brand due to claim pending.
It is concluded that the advertisement and promotional activities made by the reliance
communication are able to change the buying behavior of customers.
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SUGGESTIONS
REGARDING ADVERTISING
(1) Advertising Advertising should have a clear objective and message, which
has not been found in recent ads. Reliance is a faster growing provider service in each
state .Every offers and schemes they should show with proper message for benefit to
the customer. In busy life customer do not remembered any offers and which service
we can provided for the customer therefore they should by force showing
advertisement in growing market and among customer .customers wants continuously
exposure in Cable and Local newspapers.
(2) Persuasive Advertising :-
Now there is a need of persuasive advertising for Reliance service which can be
moved into the category of comparative advertising. It will help the company to
establish the superiority of its brand service through specific comparison of one or more
attributes and features.
(3)Technical Expertise:-
The advertisement should show the company's expertise, experience and pride in
market the product service sale.
Media A combination of print ads and TV commercial do a better job. Local ads and
publicity should be giving more stress. Hoardings, banners, wall painting should be
promoted, as some expenses are also beard by dealers. Ads on Cable network result
greater audience attention. Schemes, gift offers etc. must be highlighted through Radio and
Local newspapers.
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REGARDING SALES
1. IMPROVEMENT IN AFTERSALES SERVICE:-
There is a need of onsite service professional for dealing with customer
problems. Which will result in satisfied customer which in turns lead to chain reaction
of purchase.
2. Expansion in network coverage:-
Outer areas of Mumbai are yet to be covered; expansion will result in more market
potential.
3. PROMOTIONAL ACTIVITIES
The company expands the budget allocation for promotional campaign in center
Mumbai. It has affected the sale service brand image of Reliance especially in
Mumbai. Low supports in promotion have lead to fluctuation in sale.
4. SALES PROMOTION
Cash discount
Premiums
Appointment of sale promoter
Financial schemes
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ANNEXURE 1
SAMPLE QUESTIONNAIRE
1) How many times did you see this advertisement?A)1 B)2 C)MORE THAN 2 D)NONE
2) Did you ever mention this advertisement to anyone?
Yes
No
3) Did anyone ever mention this advertisement to you?
Yes
No
4) How well did this advertisement catch your attention?
Very Well
Somewhat Well
UndecidedNot Very Well
Not at all Well
5) How believable were the claims made in this advertisement?
Very Believable
Somewhat Believable
Undecided
Not Very BelievableNot at all Believable
6) How well do you feel this ad informed you about the product?
Very Well
Somewhat Well
Undecided
Not Very Well
Not at all Well
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7) How appealing did you find this advertisement?
Very Appealing
Somewhat Appealing
Undecided
Not Very Appealing
Not at all Appealing
8) How convincing did you find this advertisement?
Very Convincing
Somewhat Convincing
Undecided
Not Very Convincing
Not at all Convincing
9) How memorable did you find this advertisement?
Very Memorable
Somewhat Memorable
Undecided
Not Very Memorable
Not at all Memorable
10) How creative did you find this advertisement?
Very Creative
Somewhat Creative
Undecided
Not Very Creative
Not at all Creative
11) In general, how would you rate the quality of this advertisement compared to
other ads of a similar nature?
Excellent
Good
Fair
Poor
Undecided
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12) Do you currently use this product?
Yes
No
13) Based on this advertisement, how likely would you be to purchase this
product in the future?
Very Likely
Somewhat Likely
Undecided
Not Very Likely
Not at all Likely
14) If deciding between this product and a competing product, how much would
this ad influence you to buy this product?
Very Much
Somewhat
Undecided
Very Little
Not at All
15) What, if anything, did you find appealing about this advertisement?
16) What, if anything, did you dislike about this advertisement?
17) Which of the following would you use to describe this advertisement? Please
check all that apply.
Appealing
Honest
Distasteful
Credible
Convincing
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Creative
Distasteful
Attractive
Believable
Memorable
Not Credible
Touching
Professional
Silly
Please tell us a little about yourself.
18) Are you male or female?
Male
Female
19) What is your age?
20) What is your marital status?
A) MARRIED
B) UNMARRIED
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BIBLIOGRAPHY
BOOKS
Marketing Management - Phillip Kotler
Marketing Research - Toll & Hawkins
MAGAZINE
Business Today
Advertising & Management
NEWSPAPERS
Economic Times
Hindustan Times
Financial express
WEBSITE
www.google.comwww.rcom.co.in