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TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO
1 1.1 Introduction
1.2 Two levels of marketing
1.2.1 Strategic marketing
1.2.2 Operational marketing
1.3 Four P’s
1.3.1 Product
1.3.2 Pricing
1.3.3 Promotion
1.3.4 Placement
1.4 Sales promotion
1.5 Marketing communication
1.5.1 Advertising
1.5.2 Personal selling
1.5.3 Sales promotion
1.5.4 Public relation
1.5.5 Direct marketing
1
4
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2
2.1 Importance
2.2 Objectives
2.3 Information source
2.3.1 Primary Data
2.3.2 Secondary Data
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12
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2.4 Sampling
2.5 Sampling technique
2.6 Limitation
15
17
19
3 Profile of the company
3.1 History
3.2 Company developments
3.3 Company Achievements
3.4 Company Present Position
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21
25
27
30
4 & 5 Data Analysis and Interpretation 33
6 6.1 Summary
6.2 Findings
6.3 Suggestions
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51
I. Bibliography 52
I. Questionnaire 53
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LIST OF TABLES
TABLE NO CONTENTS PAGE NO
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USING OF VIRGIN MOBILE
ADVERTISEMENT DETAILS
REASONS TO PURCHASE
REASONS FOR SATISFACTION
NETWORK QUALITY
QUALITY OF CUSTOMER CARE
FRIENDS & FAMILY OFFERS
MORE HELPFUL VIRGIN SERVICES
OFFERS
AWARE OF PREPAID INCOMING CALLS
MOST FAVOURABLE FACTOR
MOST EFFECTIVE BRAND
WILL YOU SWITCH TO VIRGIN
RECOMMEND TO OTHERS
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LIST OF GRAPHS
GRAPH NO CONTENTS PAGE NO
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2
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USING OF VIRGIN MOBILE
ADVERTISEMENT DETAILS
REASONS TO PURCHASE
REASONS FOR SATISFACTION
NETWORK QUALITY
QUALITY OF CUSTOMER CARE
FRIENDS & FAMILY OFFERS
MORE HELPFUL VIRGIN SERVICES
OFFERS
AWARE OF PREPAID INCOMING CALLS
MOST FAVOURABLE FACTOR
MOST EFFECTIVE BRAND
WILL YOU SWITCH TO VIRGIN
RECOMMEND TO OTHERS
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35
36
37
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40
41
42
43
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CHAPTER-I
INTRODUCTION
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INTRODUCTION:
Marketing is a societal process which discerns consumers' wants,
focusing on a product or service to fulfill those wants, attempting to move the
consumers toward the products or services offered. Marketing is fundamental to any
businesses growth. The marketing teams (marketers) are tasked to create consumer
awareness of the products or services through marketing techniques. Unless it pays
due attention to its products and services and consumers' techniques. Unless it pays
due attention to its products and services and consumers’ techniques. Unless it pays
due attention to its products and services and consumers' techniques. Unless it pays
due attention to its products and services and consumers' selling. It is also concerned
with anticipating the customers' future needs and wants, which are often discovered
through market research.
Essentially, marketing is the process of creating or directing an
organization to be successful in selling a product or service that people not only
desire, but are willing to buy.
Therefore good marketing must be able to create a "proposition" or set of
benefits for the end customer that delivers value through products or services.
A market-focused, or customer-focused, organization first determines what
its potential customer’s desire, and then builds the product or service. Marketing
theory and practice is justified in the belief that customers use a product or service
because they have a need, or because it provides a perceived benefit.
Two major factors of marketing are the recruitment of new customers
(acquisition) and the retention and expansion of relationships with existing
customers (base management). Once a marketer has converted the prospective
buyer, base management marketing takes over. The process for base management
shifts the marketer to building a relationship, nurturing the links, enhancing the
benefits that sold the buyer in the first place, and improving the product/service
continuously to protect the business from competitive encroachments.
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For a marketing plan to be successful, the mix of the four "Ps" must
reflect the wants and desires of the consumers or Shoppers in the target market.
Trying to convince a market segment to buy something they don't want is extremely
expensive and seldom successful. Marketers depend on insights from marketing
research, both formal and informal, to determine what consumers want and what
they are willing to pay for. Marketers hope that this process will give them a
sustainable competitive advantage. Marketing management is the practical
application of this process. The offer is also an important addition to the 4P's theory.
With in most organizations, the activities encompassed by the marketing function are
led by a Vice President or Director of Marketing. A growing number of
organizations, especially large US companies, have a Chief Marketing Officer
position, reporting to the Chief Executive Officer.
The American Marketing Association (AMA) states, "Marketing is an
organizational function and a set of processes for creating, communicating and
delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.".
Marketing methods are informed by many of the social sciences,
particularly psychology, sociology, and economics. Anthropology is also a small,
but growing influence. Market research underpins these activities. Through
advertising, it is also related to many of the creative arts. Marketing is a wide and
heavily interconnected subject with extensive publications. It is also an area of
activity infamous for re-inventing itself and its vocabulary according to the times
and the culture.
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Two levels of marketing-
1) Strategic marketing
2) Operational marketing
1) Strategic marketing:
Attempts to determine how an organization competes against its competitors
in a market place. In particular, it aims at generating a competitive advantage
relative to its competitors.
2) Operational marketing:
Executes marketing functions to attract and keep customers and to
maximize the value derived for them, as well as to satisfy the customer with prompt
services and meeting the customer expectations. Operational Marketing includes the
determination of the marketing mix (4 Ps).
Four Ps- In the early 1960's, Professor Neil Borden at Harvard Business School
identified a number of company performance actions that can influence the consumer
decision to purchase goods or services. Borden suggested that all those actions of the
company represented a “Marketing Mix”. Professor E. Jerome McCarthy, also at the
Harvard Business School in the early 1960s, suggested that the Marketing Mix
contained 4 elements: product, price, place and promotion.
In popular usage, "marketing" is the promotion of products, especially
advertising and branding. However, in professional usage the term has a wider
meaning which recognizes that marketing is customer-centered. Products are often
developed to meet the desires of groups of customers or even, in some cases, for
specific customers. E. Jerome McCarthy divided marketing into four general sets of
activities. His typology has become so universally recognized that his four activity
sets, the Four Ps, have passed into the language.
The four P’s are:
Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and wants.
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The scope of a product generally includes supporting elements such as
warranties, guarantees, and support.
Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged
for the product or services, e.g. time, energy, psychology or attention.
Promotion: This includes advertising, sales promotion, publicity, and
personal selling, branding and refers to the various methods of promoting the
product, brand, or company.
Placement: (or distribution): refers to how the product gets to the customer;
for example, point of sale placement or retailing. This fourth P has also
sometimes been called Place, referring to the channel by which a product or
services is sold (e.g. online vs. retail), which geographic region or industry, to
which segment (young adults, families, business people), etc.
These four elements are often referred to as the marketing mix,[1] which a
marketer can use to craft a marketing plan. The four Ps model is most useful when
marketing low value consumer products. Industrial products, services, high value
consumer products require adjustments to this model. Services marketing must
account for the unique nature of services. Industrial or B2B marketing must account
for the long term contractual agreements that are typical in supply chain
transactions. Relationship marketing attempts to do this by looking at marketing
from a long term relationship perspective rather than individual transactions.
As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass,
1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it
unconsciously emphasizes the inside–out view (looking from the company
outwards), whereas the essence of marketing should be the outside–in approach".
Nevertheless, the 4 Ps offer a memorable and workable guide to the major categories
of marketing activity, as well as a framework within which these can be used.
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Sales promotion:-
Promotion involves disseminating information about a product,
product line, brand, or company. It is one of the four key aspects of the marketing
mix. Sales promotion is an important component of a company's marketing
communication strategy along with advertising, public relations, and personal
selling. At its core, sales promotion is a marketing activity that adds to the basic
value proposition behind a product (i.e., getting more for less) for a limited time in
order to stimulate consumer purchasing, selling effectiveness, or the effort of the
sales force. As this definition indicates, sales promotion may be directed either at
end consumers or at selling intermediaries such as retailers or sales crews.
Sales promotion stems from the premise that any brand or service has an
established perceived price or value, the "regular" price or some other reference
value. Sales promotion is believed to change this accepted price-value relationship
by increasing the value and/or lowering the price. Familiar examples of consumer
sales promotion tools include contests and sweepstakes, branded give-away
merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free
trials, demonstrations, and point-accumulation systems.
Three issues clarify sales promotion. First, sales promotion ranks in
importance with advertising and requires similar care in planning and strategy
development. Second, three audiences can be targeted by sales promotion:
consumers, resellers, and the sales force. And third, sales promotion as a competitive
weapon provides an extra incentive for the target audience to purchase or support
one brand over another. This last factor distinguishes sales promotion from other
promotional mix tactics. For example, unplanned purchases may be directly related
to one or more sales promotion offers.
In order to understand the basic role and function of sales promotion,
one must differentiate between sales promotion and other components of the
marketing mix. Sales promotion usually operates on a short timeline, uses a more
rational appeal, returns a tangible or real value, fosters an immediate sale, and
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contributes highly to profitability. The idea of contribution to profitability may be
confusing. It is simply the ratio between what is spent on a promotional mix
compared to the direct profitability generated by that expenditure. A few exceptions
to the above characteristics do exist. For example, a sweepstakes might use a very
emotional appeal, while a business-to-business ad may be very rational.
Promotion is generally sub-divided in the textbooks into two parts:
• Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet) in which the advertiser pays an advertising agency to
place the ad
• Below the line promotion: All other promotion. Much of this is intended to
be subtle enough that the consumer is unaware that promotion is taking place.
E.g. sponsorship, product placement, endorsements, sales promotion,
merchandising, direct mail, personal selling, public relations, trade shows
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Marketing Communication-
Reaches large, geographically dispersed audiences, often with
high frequency; Low cost per exposure, though overall costs are high; Consumers
perceive advertised goods as more legitimate; Dramatizes company/brand; Builds
brand image; may stimulate short-term sales; Impersonal, one-way communication;
Expensive.
Most effective tool for building buyers’ preferences,
convictions, and actions; Personal interaction allows for feedback and adjustments;
Relationship-oriented; Buyers are more attentive; Sales force represents a long-term
commitment; Most expensive of the promotional tools
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May be targeted at the trade or ultimate consumer; Makes use
of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers
strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick
response; Short-lived; Not effective at building long-term brand preferences
Highly credible; Very believable; Many forms: news stories,
news features, events and sponsorships, etc.; Reaches many prospects missed via
other forms of promotion; Dramatizes company or product; Often the most under
used element in the promotional mix; Relatively inexpensive (certainly not 'free' as
many people think--there are costs involved)
Many forms: Telephone marketing, direct mail, online
marketing, etc.; Four distinctive characteristics: Non-public, Immediate,
Customized, Interactive; Well-suited to highly-targeted marketing efforts.
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CHAPTER-II
THE STUDY DESIGN
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2.1 IMPORTANCE & NEED OF THE STUDY
Research methodology is away to systematically solve research problem. In
it we study the various step that are generally adopted by researcher in studying his research
problem along with logic behind them. It is necessary for a researcher to know not only the
research method/techniques but also the methodology. It may be noted, in the context of
planning & development that the significance of research lines in its quality and not in
quantity. Researcher should know how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not, and what
would they mean and indicate and why?
“Research is common parlance refers to a search for knowledge. In fact research is an act of
Scientific investigation.”The project was divided in to the following steps.
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2.2 OBJECTIVES OF STUDY
To decide objective of the study
To study the customer awareness about Virgin Mobile in Mobile Store.
To enhance the sale of Virgin Mobile in Mobile Store.
To decide research design &
application
To decide source of data collection
To decide from of data collection
To organize & collect data
To process & analyze report
To prepare the research report
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To know the reason for the loss of inventory.
To analyze the customer buying behavior.
To find out the satisfaction level of the Virgin mobile customers at Mobile
Store.
To study the effect of event and promotion.
To make various suggestion on the improvement of Virgin Mobile in Mobile
Store.
1. To decide objective of the Study:-
This step is also research problem. Problem definition is the most critical part of the
research process. Research problem definition involves specifying the information
needed by management. The main objectives of the study are:
To Creating the Awareness of Hotel Pristine Inn in among Corporates in
Pune.
To find out the level of customer satisfaction with the offers, discount and
services offered by Pristine Inn.
2. To decide research design & application:-
Research design involves defining the research problem, determining how to collect
the data and from whom, establishing the way the data will be analyzed estimating
costs and the preparation of the research approach. For this study, descriptive
research was selected.
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2.3 INFORMATION SOURCES
Primary Data
Secondary Data
Primary data:-
Primary data is the original data collected specifically for the problem.
Reason for selecting primary data:-
In terms of primary data a questionnaire has been used to interview desire
sample units that give accurate and up to data information as well better to research
problem.
Research approaches: - Primary data can be collected in five main ways: through
Observation, focus groups, surveys, behavioral data, and experiments.
Research instruments:- Marketing researchers have a choice of three main
research Instruments in collecting primary data:
Questionnaires: -
A questionnaire consists of questions presented to respondents for their answers.
Because of its flexibility, the questionnaire is by far the most common Instrument
used to collect primary data. Questions can be open-ended or closed-Ended.
Qualitative measures: -
Some marketers prefer more qualitative methods for gauging consumer opinion
because consumer actions do not always match their answers to survey questions.
Qualitative research techniques are relatively unstructured measurement
approaches that permit a range of possible responses, and they are a creative
means of ascertaining consumer perceptions that may other-Wise be difficult to
uncover.
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Secondary data:-
Data potentially useful in solving a current problem but that were collected
for a different purpose.
Reason for selecting secondary data:-
Secondary data can be gathered quickly and inexpensively, compared to
primary data, it is clear useful to study analyzing the recent development in the
telecom industry.
Contact methods:- Once the sampling plan has been determined, the marketing
researcher must decide how the subject should be contact:
Mail questionnaire: -
The mail questionnaire is the best way to reach people who would not give
personal interviews or whose responses might be biased or distorted by the
interviewers. Mail questionnaires require simple and clearly worded questions.
Telephone interview: -
Telephone interviewing is the best method for gathering information quickly; the
interviewer is also able to clarify questions if respondents do not understand
them. The response rate is typically higher than in the case of mailed
questionnaires.
Personal interview: -
Personal interviewing is the most versatile method. The interviewer can ask
more questions and record additional observations about the respondent, such as
dress and body language. Personal interviewing takes two forms. In arranged
interviews, respondents are contacted for an appointment, and often a small
payment or incentive is offered. Intercept interviews involve stopping people at a
shopping mall or busy street corner and requesting an interview
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Online interviews: -
There is increased use of online methods. There are so many ways to use the Net
to do research. In this method, researcher can include a questionnaire on its Web
site and offer a people to answer the questionnaire.
4. To decide from of data collection:-
For this project survey method was selected which was carried through
person interview. Because information from different customers was required.
5. To organize & collect data:-
Once the researcher has formulated and development a research design
including questionnaire second thing he has to decide whether he has to collect the
information. From all the targeted customers. There can be two types of survey are
possible.
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2.4 SAMPLING:
Sample Survey
“For this project sample Survey was chosen”
Characteristics of the sample survey are:-
It is cheaper than census survey
It requires less time
It is economical
More detail information can be collected
Deciding the sample plan requires following decisions
Sample unit “Who is to be surveyed”
Sample
Sample is the true representation of the population by studying of the sample we can
predict the behavior of the population.
Sample Size: 62 (in this case)
Method of Sampling:-
In this project, the survey was done within the market that means probabilistic
convenience Sampling was carried out.
To process & analyze data:-
After the data was collected it was tabulated, analyzed and interpreted to the
conclusion reach.
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2.5 SAMPLE TECHNIQUES APPLIED
Bar Chart:- A chart in which the length of the bar represents the amount of the item
associated with the bar.
Research Method:
Exploratory Research
“Our research is based on the exploratory research.”
Exploratory Research
“The objective of this research is to gather preliminary information that will help us
to define the problem and to suggest any hypothesis.”
Which means first we have to define the problem and research objective? Then we
have to develop the research plan for collecting information. Now after collection data we
have to interpret those data for any suggestion,
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2.6 .LIMITATIONS
It was assumed that the information given by the respondents is
authentic and best of their knowledge.
Some of the view given was completely views by customers as they
were in a hurry and were not considered in the data analysis.
The result of the study is applicable to the survey area only.
Time and Money is also one of the important limitations.
Dull process and unwilling respondent also affect the result of the
study.
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CHAPTER-III
COMPANY PROFILE
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PROFILE OF THE COMPANY
HISTORY Why Telecom Industry?
Indian Telecom industry is one of the fastest growing telecom markets in the world.
In telecom industry, service providers are the main drivers; whereas equipment
manufacturers are witnessing growth and decline in successive quarters as sales is
dependent on order undertaken by the companies.
Today the Indian telecommunications network with over 452.91 million(as on May
09) subscribers is second largest network in the world after China. India is also the
fastest growing telecom market in the world with an addition of 10- 12 million
monthly subscribers. The tele-density of the Country has increased from 18% in
March 2006 to 38.88% in May 2009, showing a stupendous annual growth of about
50%, one of the highest in any sector of the Indian Economy. The Department of
Telecommunications has been able to provide state of the art world-class
infrastructure at globally competitive tariffs and reduce the digital divide by
extending connectivity to the unconnected areas. India has emerged as a major base
for the telecom industry worldwide.
Recent things to watch in Indian telecom sector are:
• 3G spectrum auctions
• Mobile Number Portability(MNP) Implementation
• New Policy for Value Added Service
• Due to technological advancement and increase in traffic.
• Abolition of Access Deficit Charge (ADC).
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About The Mobile Store:
Mr. Rajiv Agarwal, CEO and Director, The Mobile Store Limited, heads
India's first countrywide chain of telecom retail outlets. "The Mobile Store" is an
Essar Group venture, set to introduce a pan-Indian network of retail telecom outlets.
The Mobile Store offers a world class shopping environment, with state of the art
technology.
The Mobile Store format is a one stop mobile solution shop that
provides, multi brand handsets, accessories, connections, repairs, VAS etc all under
one roof.The Mobile Store currently has more than 1050 outlets and the vision is to
have a network of 2500 stores by 2010 across 650 cities, thus covering virtually
every major town in every state across India.
The Mobile Store outlets are in three formats: Large - 1000-1500 square
feet, Medium- 800-1000 square feet and Corner-150-200 square feet, with smaller
formats located primarily in large malls.
Key thrust areas for the retail format are: Comprehensive Product Range,
Knowledgeable Store Staff & Interactive Environment, Competitive Prices and
Handset Repairs.
The Mobile Store caters to the Indian consumer's choice of the widest and
most comprehensive range of mobile phones with special offers from all the key
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brands available across the globe. The Mobile Store offers complete telecom
solutions right from handset purchase to the choice of service operator and
miscellaneous services like monthly bill collections etc., the stores also offer
connections (pre paid and post paid), accessories and VAS including the latest ring
tones, wallpapers and gaming and prompt after sales service, available not only in
the city of purchase but in all The Mobile Store outlets across the country.
The Mobile Store has undertaken an extensive training program to
equip all its employees with in-depth knowledge of the products and brands
available at the store, thereby allowing them to provide the right kind of guidance to
the customer.
The Mobile Store has categorized its mobile device offerings into
consumer segments keeping in mind the profiles and needs of different consumers.
The unique segments available in The Mobile Store The Mobile Store are: Business
- PDA & Smart phones, Emails, data transfer etc., Lifestyle - Fashion phones, Look
and elegance, Fun - Multimedia & music, camera, games, wacky ring tones and
wallpapers, Value for Money - Special offers, discounts and budget phones.
All major handset brands like Nokia, Sony Ericsson, LG, Samsung,
Motorola, Fly, Sagem, HP, I Mate, Dopod, HTC and Blackberry are available at the
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store. The Mobile Store has also tied up with all leading operators including Airtel,
Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.
All major handset brands like Nokia, Sony Ericsson, LG, Samsung,
Motorola, Fly, Sagem, HP, I mate, Dopod, HTC and Blackberry are available at the
store. The Mobile Store has also tied up with all leading operators including Airtel,
Vodafone, BPL, Idea, MTNL/BSNL and Reliance, TataIndicom.
INTRODUCTION-WHY VIRGIN MOBILE?
In Indian mobile market, Virgin mobile is a unique player based on
its business model and strategy. It is the only service provider which does not hold
any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum
and is penetrating market totally on its branding and marketing strategy. Creating a
niche brand and promoting it to specific customer segment with proper marketing
has been the key success factor for virgin mobile across the globe. So, from
marketing and customer understanding point of view, this is a very unique company
to study.
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COMPANY DEVELOPMENTS:
Virgin has promoted itself as the brand for young India, keeping the
Indian youth as its target customer segment. The idea behind targeting this segment
can be found inherited in virgin’s business model. The different marketing
perspectives are explained in fig 1.
The salient features of Virgin’s business model from customer perspective are:
1) With intensive competition and reducing voice tariffs, the profit margins for
voice service are decreasing day by day. So, the future profit strategy is
maximizing profit margins through data services and it is youth segment
which provides maximum data service revenues.
2) Future projection of increasing young and working population of India as
65% of overall population by 2020.
3) Increased use of data services in future due to technological advancements.
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Fig 1: Creating Virgin brand through various market channels
VIRGIN MOBILE BRAND
NETWORK
Tata Teleservices
Bluedart
DISTRIBUTION CHANNEL
Online selling
Retail Access
PRODUCT DESIGN
Paid incoming
50 paisa STD
VBYTES Value
COMMUNICATING VALUE PROPOSITION
Youth centric advertisement
Young & Vibrant
Samsung
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Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 27 DEPT. OF MANAGEMENT
COMPANY ACHIVEMENTS
COMMUNICATING THE VIRGIN BRAND:
Virgin mobile has communicated itself as the youth oriented brand of India through
various communication channels. They are:
a) “Think Hat ke” advertisement campaign targeting youth
b) Red and vibrant website look with youth focused language (Fig 2)
c) Tailor made plans for young segment
d) Getting paid for incoming calls: a source of recharge option for youth
Fig 2. Virgin Mobile website depicting youth flavor
SALES & PROMOTION STRATEGY CHAPTER-III
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 28 DEPT. OF MANAGEMENT
TARGET MARKET:
The Virgin Mobile Brand, targets Indian youth aged between 14 and 25
years. There are 215 million people in this age group. Out of this, 70 million own a
mobile phone and this segment is expected to add another 50 million new
subscribers in the next three years. Though young subscribers constitute only 30
percent of the total mobile subscribers, they contribute more than 50 percent of the
revenues of telecom industry. By 2010 this group is expected to contribute 60-70
percent of total revenues.
The distinct mobile phone usage habits of the young users provide a huge
advantage to Virgin Mobile. They make more and longer out-bound voice calls,
which means huge billing potential for service providers. The usage of SMS, data
services in the form of mobile internet, mobile shopping and other value added
services like ring tones, caller tunes, wallpapers, etc are very high in this group
which again provides a huge opportunity to be tapped. Moreover young users have a
short handset up gradation cycle-under 12 months as compared to two years for
people above 25 years of age.
CUSTOMER ACQUISITION AND RETENTION STRATEGIES:
The company knows that they are trying to position themselves into a
very established and competitive market. They understand the fact that they cannot
start making profit from day one neither they have plans for it; they anticipate to
achieve a subscriber base of 5 million in next three years and will make profit
afterwards they will be able to break even in three year or so.
According to the patron, Sir Richard “We want to deliver a more tailored and
relevant offering for a single segment”. Company targets only 10% of the above
mentioned segment and have plans to acquire and retain them by various innovative
propositions, some of them are-
1) Providing services which were not offered so far
a) Get paid for incoming calls.
b) 50 paisa for all calls across the country.
SALES & PROMOTION STRATEGY CHAPTER-III
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 29 DEPT. OF MANAGEMENT
c) A brand truly meant for the young India which is reflected at each & every touch
point.
d) Extensive data service offers in the form of vbytes.
e) Excellent value added plans.
f) Go online facility for enquiry, purchasing phone, recharging and everything.
g) One touch VAS access from every virgin mobile.
2) Providing services which others are not providing meticulously
a) Easy to change the handset from a wide range of handset providing at very
reasonable prices.
b) Boring customer care services telling you are in queue.
c) One customer care officer dedicated for all queries of one customer leading to
Transparency.
d) No jammed or bad network coverage.
e) Tailor made customized plans without any hidden charges.
f) No monthly bills.
SALES & PROMOTION STRATEGY CHAPTER-III
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 30 DEPT. OF MANAGEMENT
COMPANY PRESENT POSTION
VALUE CREATION THROUGH PRODUCT DESIGN:
Various steps that Virgin is taking to add value to the customer are on price, quality,
technology and social front. Company is providing the best prices in whichever plan
you go, quality of signals is not only comparable but better than most of the service
providers, on technology front it is the first in India to go for one-touch VAS access
from every Virgin Mobile.
MARKETING MIX:
The marketing mix is the combination of marketing activities that an organisation in
so as to best meet the needs of its targeted market.
Product: Virgin Mobile offers six RUIM enabled handsets with colour screen, FM
radio and include one touch access for V bytes-Virgin Mobile’s VAS portal.
Price: The handsets are priced in the range of Rs2000-5000.The call tariff is very
nominal which is 50p per call both local and STD subject to terms and conditions.
Place: The focus of Virgin Mobile on customer acquisition has so far been in the top
60 cities of India and is set to extend to more cities. The product is available across
a host of modern retail outlets The Mobile Store, Zameel electronics in ADONI.
Promotion: Virgin Mobile entered the Indian market in grand style. The company
surprised the readers of a leading Indian daily when all the headlines on the front
page were in the colour red. Virgin Mobile has used a very vibrant colour to relate
itself with the targeted market. Apart from traditional media, internet and outdoor
youth centric advertising has been used wisely to attract the targeted audience.
DISTRIBUTION CHANNEL
Virgin mobile makes its products available to the customer by both retail
stores and online distribution.
Selective Distribution:
SALES & PROMOTION STRATEGY CHAPTER-III
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 31 DEPT. OF MANAGEMENT
Virgin mobile has selected some retail outlets to distribute its products. It
does not follow the strategy of intensive and exclusive distribution. The strategy of
selective distribution helps the company gain optimum market coverage and more
control but at a lesser cost than intensive distribution.
Virgin Mobile launched a new mobile handset v billing on 7 July 2008. V
Billing is available across 15,000 outlets nationally and over 1000 modern retail
outlets including The Mobile Store, Univercell, Chroma, Convergem, Big C, Vishal
Mega Mart, Vijay Sales and Sangeetha to name a few. Apart from this, the handset
will also be available in 34 kiosks in high traffic malls across the country.
Online Distribution:
Virgin Mobile India has announced that customers can now buy Virgin
Mobile branded products and services online. They just need to select the handset,
plan and number of their choice by filling an online form. Post the payment
transaction, handsets will be delivered to the customer within 24 - 48 hours and the
requisite documents for proof of identity will be collected in person. Customers
taking advantage of online shopping will also be offered additional talk time, extra
messages as well as other freebies.
Disintermediation and re-aggregation: The different features of the online
distribution are stated as follows:
• Intermediary becomes redundant as customer buys directly from the firm
using web technology.
• Customization becomes easier and feasible which adds to the customer value.
• Re-aggregation occurs in the sense that companies today encourage customers
to lodge their complaints or send their queries on the net. These are then
routed to another site where they are dealt with immediately in a seamless
manner. So it helps in improving the
overall efficiency of the channel.
For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart.
SALES & PROMOTION STRATEGY CHAPTER-III
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 32 DEPT. OF MANAGEMENT
COMPETITION:
Virgin Mobile has entered into a very competitive industry where Airtel,
Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff
competition from Reliance CDMA phones. Virgin Mobile have taken a ‘hatke’ route
and launched the brand in the youth segment. The tie up with Tata Teleservices
enables it to fight competition as the network quality of Tata Teleservices was
ranked first by DOT. The company is spending huge chunks of money to promote
their VAS services and it would be interesting to watch out what Virgin Mobile
plans to offer.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 33 DEPT. OF MANAGEMENT
CHAPTER-IV&V
DATA ANALYSIS
&
INTERPRETATION
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 34 DEPT. OF MANAGEMENT
Q1) How long you are using VIRGIN Services?
Purpose:
The purpose behind this question is to know about the usage time of Virgin customers
i.e. since how long they are using VIRGIN services.
Table-1
Graph-1
Interpretation:
Major Respondents using Virgin are old customers. 40% of the respondents use
Virgin services from past more than 1 year and 32% are 6months and 25% are 6-12 months
and while the lowest is 3% respondents using Virgin services less than 1 month.
TIME PERIOD FREQUENCY PERCENTAGE
Less than 1 month 02 3%
6 months 20 32%
6-12 months 16 25%
More than 1 year 24 40%
TOTAL 62 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 35 DEPT. OF MANAGEMENT
Q2) From which source you came to know about Virgin?
Purpose:
The purpose behind this question is to know from which source the respondents came to
know about Virgin.
Table-2
PARTICULARS FREQUENCY PERCENTAGE
Advertisements 12 19%
Hoardings 21 34%
News Papers 17 27%
Mouth Publicity 12 20%
TOTAL 62 100%
Graph-2
Interpretation:
19% of the respondents are aware about Virgin through Advertisements, 34%are
aware because of Hoardings while 27% and 20% of the respondents are aware because of
Newspapers and Mouth Publicity respectively.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 36 DEPT. OF MANAGEMENT
Q3) what is the main reason to purchase virgin mobile?
Purpose:
The purpose behind this question is to know from which reason the respondents came to purchase
virgin mobile
Table-3
PARTICULARS FREQUENCY PERCENTAGE
CDMA technology 20 33%
Limited handset prices 34 53%
Price 4 7%
Switching from existing
handsets
4 7%
Others 0 0%
Graph-3
Interpretation:
33% of the respondents the main reason to purchase virgin mobile through
CDMA Technology, 53% are limited handset prices and 7% of the respondents are purchase
because of price and switching from handsets.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 37 DEPT. OF MANAGEMENT
Q4)How you satisfy with this virgin mobile?
Purpose:
The purpose behind this question is to know satisfaction with virgin mobile.
Table-4
Graph-4
Interpretation:
Virgin makes the huge no of satisfied customers by its services. It is helpful to
increase the customer relationship and also for the sales of the company.
PARTICULARS FREQUENCY PERCENTAGE
Offers 12 19%
Phone models 21 34%
Features 17 27%
Others 12 20%
TOTAL 62 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 38 DEPT. OF MANAGEMENT
Q5) How is the Network quality?
Purpose: The purpose behind this question is to know network quality of virgin mobile.
Table-5
Graph-5
Interpretation:
Virgin mobile has good network quality; by the analysis it is found that there is large
no. of customers those are highly satisfied with the network quality of virgin mobile.
PERTICULARS FREQUENCY PERCENTAGE
Excellent 11 17%
Very Good 22 36%
Good 16 26%
Poor 13 21%
Total 62 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 39 DEPT. OF MANAGEMENT
Q6) how is the quality of service by customer care?
Purpose: The purpose behind this question is to know quality of service by customer care.
Table-6
Graph-6
Interpretation:
Virgin Mobile has good quality of customer care Services, where customer gets the
quick response of his queries; it makes the good relationship between the company
and customer.
PERTICULARS FREQUENCY PERCENTAGE
Excellent 12 19%
Very Good 21 34%
Good 16 27%
Poor 13 20%
Total 100 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 40 DEPT. OF MANAGEMENT
Q7)Do you satisfy with friends and family services?
Purpose:
The main purpose behind this question is to know about the awareness of respondents
regarding Friends and Family Services.
Table-7
Graph-7
Interpretation:
31%oftherespondents are satisfied with friends and family pack,17% are highly satisfied,25% are
dissatisfied,26% are highly Dissatisfied with friends and family pack.
PERTICULARS FREQUENCY PERCENTAGE
Highly Dissatisfied 16 26%
Dissatisfied 15 25%
Highly Satisfied 11 17%
Satisfied 20 31%
TOTAL 62 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 41 DEPT. OF MANAGEMENT
Q8) which services are more helpful to you while using Virgin services?
Purpose:
The purpose behind this question is to know which services are more helpful to the respondent while
using Virgin mobile.
Table-8
Graph-8
Interpretation:
31%of the respondents are satisfied with value added services pack, 17% are network, 25%
are sms rates, and 26% are call rates.
PARTICUALARS FREQUENCY PERCENTAGE
CALL RATES 16 26%
SMS RATES 15 25%
NET WORK 11 17%
VALUE ADDED SERVICES 20 31%
TOTAL 62 100%
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 42 DEPT. OF MANAGEMENT
Q9) did you like the extra offers like 50 paisa STD plan etc…?
Purpose:
Are you like virgin’s 50 paisa STD Plan and other plans
Table-9
PARTICULARS FREQUENCY PERCENTAGE
Yes 42 68%
No 20 32%
TOTAL 62 100%
Graph-9
Interpretation:
There is maximum awareness of virgin mobile 50 paisa STD plan and other offers
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 43 DEPT. OF MANAGEMENT
Q10) Are you aware of prepaid incoming calls facility by virgin mobile?
Purpose:
The purpose behind this question is to know prepaid incoming calls facility by virgin mobile.
Table-10
PARTICULARS FREQUENCY PERCENTAGE
Yes 55 88%
No 7 12%
TOTAL 62 100%
Graph-10
Interpretation:
There is highly awareness of virgin mobile paid incoming call plan.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 44 DEPT. OF MANAGEMENT
Q11) which is the most favorable factor while using mobile service?
Purpose: The purpose behind this question is to know most favorable factor while using mobile
service
Table-11
PARTICULARS FREQUENCY PERCENTAGE
Price 26 42%
Mobile handset compatibility 20 33%
Mobile Service of friends and
relatives
7 12%
Free extra services like
internet, down
4 6%
Others 5 7%
TOTAL 60 100%
Graph-11
Interpretation:42% of the respondents the main favorable of price,33% of mobile handset
compability,12% of mobile service of friends and relatives,6% and 7% are free extra
services like internet and others.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 45 DEPT. OF MANAGEMENT
Q12) which is the most effective brand in mobile service?
Purpose: The purpose behind this question is to know most effective brand in mobile service
Table-12
PARTICULARS FREQUENCY PERCENTAGE
Virgin 12 21%
Reliance 15 24%
Tata Indicom 5 7%
Aitel 15 24%
Vodafone 15 24%
TOTAL 62 100%
Graph-12
Interpretation:
By the analysis it is founded that virgin is most effective brand.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 46 DEPT. OF MANAGEMENT
Q13) If you not a virgin customer, will you like to switch to virgin?
Purpose:
The purpose behind this question is to know you not a virgin customer, will you like to switch to
virgin
Table-13
PARTICULARS FREQUENCY PERCENTAGE
Yes 9 14%
No 20 32%
Can’t Say 33 54%
TOTAL 62 100%
Graph-13
Interpretation:
There is low customer response for switch to virgin mobile because of the CDMA
culpability.
SALES & PROMOTION STRATEGY CHAPTER-IV&V
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 47 DEPT. OF MANAGEMENT
Q14) would you like to recommend virgin mobile services to others?
Purpose:
The purpose of this question is to know the recommendations of the respondents
towards Virgin, whether they would like to recommend the Virgin services to others or not.
Table-14
Graph-14
Interpretation:
93% of the Virgin customers would like to recommend Virgin services to others while 7% of the
Virgin Customers won’t recommend to others.
PARTICULAR FREQUENCY PERCENTAGE
YES 57 93%
NO 5 7%
TOTAL 62 100%
SALES & PROMOTION STRATEGY CHAPTER-VI
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 48 DEPT. OF MANAGEMENT
CHAPTER-VI
SUMMARY,FINDINGS
&
SUGGESTIONS
SALES & PROMOTION STRATEGY CHAPTER-VI
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 49 DEPT. OF MANAGEMENT
SUMMARY
Telecom industry is seeing a rise as the trend goes and has potential for growth. Taking into
account the tele-density of 38.88% there is still unexplored market. The competition is fierce
with around 10 Service providers in most of the 18 circles and also the implementation of
MNP. The service providers have to be different and have to stick to strict service norms and
provide excellent customer service in order to hold on to the market share. Thus there is
intense competition in the market but at the same time scope for development in rural areas.
Airtel, Idea and Vodafone have taken up initiatives to provide customized connections to
Rural customers like Motor pumps control system, loud speaker phone for illiterates and so
on.
In a few words Telecom sector has a lot of scope for growth and the customers at the same
time have the benefit to choose from a wide range of service providers offering various plans
targeted to specific customers
It can be said that Virgin has created its image in a very short period in Adoni.
It is attracting the customers with its good services. Most of the customer satisfied by
Virgin mobile services and facilities.
This satisfaction can be concluded by the response of customer in the questionnaires.
Day by day Virgin is improving his reputation to other Mobile network.
SALES & PROMOTION STRATEGY CHAPTER-VI
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 50 DEPT. OF MANAGEMENT
FINDINGS
Virgin comes under CDMA and GSM features.
Virgin has a large no. of customers those are satisfied with the services, it
increase the customer relationship and also increase the sales of the company.
Virgin has friendliness of delivery point, Virgin Mobile use effective
techniques for take attention of customer’s.
Virgin mobile has very good and huge customer care service, by this customer
can easily find the solution of the problem.
Virgin has large no. of satisfied customers by its services and offers. But in
rural area virgin is not so much successful.
Virgin is most effective brand.
SALES & PROMOTION STRATEGY CHAPTER-VI
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 51 DEPT. OF MANAGEMENT
SUGGESTIONS
Virgin should try to promote its latest plans like 50 paisa STD calls in
advertisements.
Making customers aware about latest pricing will increase its market share in terms of
cost effectiveness.
Virgin should try to tap 14% of customer base who want to switch to virgin but not
able to switch because of existing non-compatible handset.
Solving existing non-compatible handset problem and better communication to
inform latest pricing strategies will lead to substantial increase in consumer base for
virgin mobile.
In order to enhance customer satisfaction, time gap between services sought and
delivered should be minimized.
SALES & PROMOTION STRATEGY BIBLIOGRAPHY
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 52 DEPT. OF MANAGEMENT
BIBLIOGRAPHY
BOOKS
1 .Marketing Management
Paramhans Foundation First Edition, 1992
2. Research Methodology
C.R.Kothari Second Edition, 1993
3. Marketing Management
Philip Kotler Tenth Edition, 1999
REFRENCES
1. Website of www. mobilestore.com
2. Website of www.google.com
3. www.virginmobile.com
SALES & PROMOTION STRATEGY QUESTIOONNAIRE
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 53 DEPT. OF MANAGEMENT
QUESTIONNARIE
1) Since how long you are using virgin mobile? [ ]
A) less than B) 6 months
C) 6‐12 months D) more than 1year
2) From which source you came to know about virgin mobile? [ ]
A) advertisement B) hoardings
C) newspapers D) mouth publicity
3) What is the main reason to purchase virgin mobile? [ ]
A) CDMA technology B) limited handset prices
C) price D) switching from existing handsets
E) others
4) How you satisfy with this virgin mobile? [ ]
A) offers B) phone models C) features D) others
5) How is the network quality? [ ]
A) excellent B) very good C) good D) poor
6) How is the quality of service by customer care? [ ]
A) excellent B) very good C) good D) poor
SALES & PROMOTION STRATEGY QUESTIOONNAIRE
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 54 DEPT. OF MANAGEMENT
7) Do you satisfy with friends and family services? [ ]
A) excellent B) very good C) good D) poor
8) Which services are more helpful to you while using virgin services? [ ]
A)Call rates B) SMS service
C) Network D) Value Added Services
9) Did you like the extra offers like 50 paisa STD plan etc…? [ ]
A) yes B) no
10) Are you aware of prepaid incoming calls facility by virgin mobile? [ ]
A) yes B) no
11) Which is the most favorable factor while using mobile service? [ ]
A) price
B) mobile handset compatibility
C) mobile service of friends and relatives
D) free extra services like internet, downloads
12) Which is the most effective brand in mobile service? [ ]
A) virgin B) reliance C) Tata indicom
D) Airtel E) Vodafone
SALES & PROMOTION STRATEGY QUESTIOONNAIRE
Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 55 DEPT. OF MANAGEMENT
13) If you not a virgin customer, will you like to switch to virgin? [ ]
A) yes B) no C) cant say
14) Would you like to recommend virgin mobile services to others? [ ]
A) yes B) no