Modern Approach of Telecom in Rural

8/8/2019 Modern Approach of Telecom in Rural

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Introduction- Advertising

Advertising is a form of communication that typically attempts to persuadepotential customers to purchase or to consume more of a particular brand ofproduct or service. While now central to the contemporary global economy andthe reproduction of global production networks, it is only quite recently that

advertising has been more than a marginal influence on patterns of sales andproduction. The formation of modern advertising was intimately bound up withthe emergence of new forms of monopoly capitalism around the end of the 19thand beginning of the 20th century as one element in corporate strategies to create,organize and where possible control markets, especially for mass producedconsumer goods. Mass production necessitated mass consumption, and this in turnrequired a certain homogenization of consumer tastes for final products. At itslimit, this involved seeking to create world cultural convergence, to homogenizeconsumer tastes and engineer a convergence of lifestyle, culture and behaviorsamong consumer segments across the world.

Many advertisements are designed to generate increased consumption of thoseproducts and services through the creation and reinvention of the "brand image".For these purposes, advertisements sometimes embed their persuasive messagewith factual information. Every major medium is used to deliver these messages,including television, radio, cinema, magazines, newspapers, video games, theInternet, carrier bags and billboards. Advertising is often placed by an advertisingagency on behalf of a company or other organization.Money spent on advertising has increased dramatically in recent years. In 2007,spending on advertising has been estimated at over $150 billion in the UnitedStates and $385 billion worldwide, and the latter to exceed $450 billion by 2010.

A recent advertising innovation is "guerrilla marketing", which involve unusualapproaches such as staged encounters in public places, giveaways of products suchas cars that are covered with brand messages, and interactive advertising where theviewer can respond to become part of the advertising message. This reflects anincreasing trend of interactive and "embedded" ads, such as via product placement,having consumers vote through text messages, and various innovations utilizingsocial network services such as My Space.Types of AdvertisingCommercial advertising media can include--wall paintings, billboards, street furniture components, printed flyers and rackcards, radio, cinema and television adverts, web banners, mobile telephonescreens, shopping carts, web popup, skywriting, bus stop benches, humanbillboards, magazines, newspapers, town criers, sides of buses, banners attached toor sides of airplanes ("logo jets"), in-flight advertisements on seatback tray tablesor overhead storage bins, taxicab doors, roof mounts and passenger screens,


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musical stage shows, subway platforms and trains, elastic bands on disposablediapers, stickers on apples in supermarkets, shopping cart handles (grabertising),the opening section of streaming audio and video, posters, and the backs of eventtickets and supermarket receipts. Any place an "identified" sponsor pays to delivertheir message through a medium is advertising.

Covert advertisingCovert advertising is when a product or brand is embedded in entertainment andmedia. For example, in a film, the main character can use an item or other of adefinite brand, as in the movie Minority Report, where Tom Cruise's characterJohn Anderson owns a phone with the Nokia logo clearly written in the top corner.

Television commercialsThe TV commercial is generally considered the most effective mass-marketadvertising format, as is reflected by the high prices TV networks charge forcommercial airtime during popular TV events. The annual Super Bowl football

game in the United States is known as the most prominent advertising event ontelevision. The average cost of a single thirty-second TV spot during this game hasreached $3 million (as of 2009).The majority of television commercials features is a song or jingle that listenerssoon relate to the product.InfomercialsThere are two types of infomercials, described as long form and short form. Longform infomercials have a time length of 30 minutes. Short form infomercials are30 seconds to 2 minutes long. Infomercials are also known as direct responsetelevision (DRTV) commercials or direct response marketing.

The main objective in an infomercial is to create an impulse purchase, so that theconsumer sees the presentation and then immediately buys the product through theadvertised toll-free telephone number or website. Infomercials describe, display,and often demonstrate products and their features, and commonly havetestimonials from consumers and industry professionals.CelebritiesThis type of advertising focuses upon using celebrity power, fame, money,popularity to gain recognition for their products and promote specific stores orproducts. Advertisers often advertise their products, for example, when celebritiesshare their favorite products or wear clothes by specific brands or designers.Celebrities are often involved in advertising campaigns such as television or printadverts to advertise specific or general products.

Media and advertising approachesIncreasingly, other media are overtaking television because of a shift towardsconsumer's usage of the Internet as well as devices such as TiVo.Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web


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content and the traffic that the website receives.E-mail advertising is another recent phenomenon. Unsolicited bulk E-mailadvertising is known as "spam".Some companies have proposed placing messages or corporate logos on the sideof booster rockets and the International Space Station. Controversy exists on the

effectiveness of subliminal advertising, and the pervasiveness of mass messages.- turning it into a generic term which means that its legal protection as a trademarkis lost.As the mobile phone became a new mass media in 1998 when the first paiddownloadable content appeared on mobile phones in Finland, it was only a matterof time until mobile advertising followed, also first launched in Finland in 2000.By 2007 the value of mobile advertising had reached $2.2 billion and providerssuch as Admob delivered billions of mobile ads.Global advertisingAdvertising has gone through five major stages of development: domestic, export,

international, multi-national, and global. For global advertisers, there are four,potentially competing, business objectives that must be balanced when developingworldwide advertising: building a brand while speaking with one voice,developing economies of scale in the creative process, maximizing localeffectiveness of ads, and increasing the companys speed of implementation.

Born from the evolutionary stages of global marketing are the three primary andfundamentally different approaches to the development of global advertisingexecutions: exporting executions, producing local executions, and importing ideasthat travel.

Advertising research is key to determining the success of an ad in any country orregion. The ability to identify which elements and/or moments of an ad thatcontributes to its success is how economies of scale are maximized. Once oneknows what works in an ad, that idea or ideas can be imported by any othermarket. Market research measures, such as Flow of Attention, Flow of Emotionand branding moments provide insight into what is working in an ad in anycountry or region because the measures are based on the visual, not verbal,elements of the ad.TrendsWith the dawn of the Internet came many new advertising opportunities. Popup,Flash, banner, Popunder, averaging, and email advertisements (the last often beinga form of spam) are now commonplace.The ability to record shows on digital video recorders (such as TiVo) allow usersto record the programs for later viewing, enabling them to fast forward throughcommercials. Additionally, as more seasons of pre-recorded box sets are offeredfor sale of television programs; fewer people watch the shows on TV. However,the fact that these sets are sold, means the company will receive additional profitsfrom the sales of these sets. To counter this effect, many advertisers have opted for


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product placement on TV shows like Survivor.Particularly since the rise of "entertaining" advertising, some people may like anadvertisement enough to wish to watch it later or show a friend. In general, theadvertising community has not yet made this easy, although some have used theInternet to widely distribute their ads to anyone willing to see or hear them.

Another significant trend regarding future of advertising is the growingimportance of the niche market using niche or targeted ads. Also brought about bythe Internet and the theory of The Long Tail, advertisers will have an increasingability to reach specific audiences. In the past, the most efficient way to deliver amessage was to blanket the largest mass market audience possible. However,usage tracking, customer profiles and the growing popularity of niche contentbrought about by everything from blogs to social networking sites, provideadvertisers with audiences that are smaller but much better defined, leading to ads

that are more relevant to viewers and more effective for companies' marketingproducts. Among others, Comcast Spotlight is one such advertiser employing thismethod in their video on demand menus. These advertisements are targeted to aspecific group and can be viewed by anyone wishing to find out more about aparticular business or practice at any time, right from their home. This causes theviewer to become proactive and actually choose what advertisements they want toview.In freelance advertising, companies hold public competitions to create ads for theirproduct, the best one of which is chosen for widespread distribution with a prizegiven to the winner(s). During the 2007 Super Bowl, PepsiCo held such a contest

for the creation of a 30-second television ad for the Doritos brand of chips,offering a cash prize to the winner. Chevrolet held a similar competition for theirTahoe line of SUVs. This type of advertising, however, is still in its infancy. Itmay ultimately decrease the importance of advertising agencies by creating a nichefor independent freelancers.

Advertising Trend in TelecomTelecom advertising is an overlooked field. Almost all ad agencies would love tohave a telecom operator client as they are among the top 10 advertising spendersin all countries; usually they regret that afterwards though due to the short leadtimes, long working hours, and over demanding clients (mostly from technicalbackgrounds); all of which result in a relatively low quality end product.


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Telecom advertising is a very specific industry in many ways different fromconventional advertising mostly due to the nature of the beast (it is a media withinitself that is constantly expanding to include more and more industries) andconstant evolution. Advertising agencies rarely have such experts though, due tothe high turn-over of people on the accounts, mostly due to the reasons mentioned

in the first paragraph.Despite their differences all telecom operators require the same campaigns, usuallyin the following order from launch date (I will use a mobile operator for the sakeof the example as they do the most advertising):

1. A teaser / announcement to indicate their launch date2. A brand launches campaign3. Corporate Social Responsibility campaigns4. Core Product campaigns (usually prepaid and post-paid)5. Coverage Campaign (to show that their networks are now complete)

6. Payment methods campaign (listing the channels in which can pay their bills)7. 3G campaign (focusing on their innovative technology, and claiming first tomarket)8. Roaming campaign (mentioning how many operators they have roamingagreements with)

9. Airport campaigns (selling their visitor lines, asking inbound roamers toswitch to their networks, promoting their mobile internet roaming capabilities, andmentioning how you can feel at home while roaming on their network)

10. Store opening campaigns (indicating that new stores are opening andmentioning their locations)11. International call rate reduction campaign12. Tariff reduction campaign13. Mobile Content campaign (focusing on the mobile portal and what content itincludes, mostly music, ring tones, ring back tones, news etc.)14. Value added services campaigns (these are dispersed throughout thecommunication plan depending on when a new service is rolled out)15. Mobile Internet campaign (on both accessing the internet through your phone,or data cards that plug into your laptop)16. Customer service campaigns17. Business campaign (launching their business services division)18. Business product campaigns (mostly data-cards, push email, and closed usergroups)19. Focusing on the Youth segment (through universities, and hip music)20. High end packages (special numbers / elite services etc)21. Loyalty programs22. Bundling of products and services


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23. Bouquet ads mentioning all of the offerings of the operator

Usually due to urgency, wanting to communicate so many messages at the sametime, and the need to claim first-to-market (because innovation is a key platform);these operator end up with badly managed campaigns that are not fully integrated

(mostly newspaper ads and mentions on their website and in stores), and sacrificeon the creative quality of their communications. All of the above results in aconfused customer who knows that an operator has many services but cannotindicate or quantify them.

Several global learning can be made from the above, these include:-

1. Ideal campaign roll-out plans (starting with print and moving to ambient media,

online ads etc)2. Touch points management (deciding on what to communicate at which touchpoints)3. Simple communications (mentioning the key benefit of a service and not listingall of its attributes)4. More focus on PR and making most announcements through press releases thatinduce viral support5. Update bulletins on new products and services6. Developing more target advertising to specific segments7. Focusing more on direct marketing and database building

8. Creating online forums in which customers can better express their views andusage patterns9. Creating simple template ads that can be adapted and published as soon as newproducts and services are developed and need to be instantly rolled-out forclaiming first-to-market.10. Media management (deciding on what are the best media for each campaignand where each product is most likely thought of by the customer i.e. mobilepayment at cash registers)11. Giving autonomy to marketing-communications departments at telecomoperators separating engineers from creative communications

Rural Telecom Market- A ReportMore than 60% Mobile Users in Rural India by 2012 Year


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According to news which was published in economictimes.indiatimes.com onlinemagazine, in the rural India more than 60% mobile users will be by 2012 year. Itwas published in report which was jointly released by Confederation of IndianIndustries (CII) and Ernst & Young.

The trends show in the rural area for mobile phones rather than landlines phones.About 100 million users of mobile phones are from rural India which are 40% butthe trends show that it will increase to 60% by 2012 year of the total telecomsubscriber.

According tot the TRAI (Telecom Regulatory Authority of India), In the firstnine months of 2008, the four metros together added 10.3 million subscribers,while the rural areas added over 11.3 million. The news was published by abovementioned online news paper.

Mobile phones users has increased in the third quarter of June in rural area from13.72% to reach 70.83 million. The growth shows the real concept about thedevelopment of 60% mobile phones users by 2012.

According to Prashant Singhal who is the Ernst & Young telecom analyst said,The majority of new wireless subscribers will emerge from circle B and circleC. With a survey, India is the second largest mobile phones subscriber afterChina which has 300 million mobile phones users. It is estimated that by 2012 thetotal telecom subscriber will be 700 million in which 650 million will be wireless

users.

India will have 200 mn rural telecom connections by 2012: Ministry OfCommunicationSeptember 24th, 2008New Delhi, Sep 24 (IANS) The government Wednesday expressed concern overthe divide between the urban and rural areas in terms of telecom connectivity, andsaid the country would have 200 million rural telecom connections by 2012.Weplan to have 200 million rural telecom connections by 2012 at a penetration rate of25 percent and will utilise the USO (universal service obligation) fund for theachievement of this goal, Communications and IT Minister A. Raja said here.Sofar, around 88 million phones have been provided in the rural areas with a tele-density of around 11 percent, he added.


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Growth Opportunities For Rural India

How Telecom Offers Growth Opportunities To Rural India?

The report Emerging Rural Mobile Market in India reveals that by 2010, India islikely to have around 539 Million cell phone subscribers at a compound annualgrowth rate (CAGR) of nearly 28%.

The significant increase of the of the Indian telecom market means the Asiantelecom sector is expected to have a CAGR of 22% until 2010, overtaking thetelecom industries in both Africa and China. Furthermore, boosting the overalltelecom sector in India, the Indian telecommunication industry is projected toreach $35 billion by 2010, compared to $22 billion in 2007. India is a republicconsisting of 28 states and seven union territories with a parliamentary system of

democracy. It has the world's twelfth largest economy at market exchange ratesand the fourth largest in purchasing power. Economic reforms since 1991 havetransformed it into one of the fastest growing economies.

The rising demand in the Indian mobile phone industry is the main reason for therapid growth in the telecom sector of the country. With low priced mobile phonesand low-cost cellular services, a large number of Indian customers are able toafford cell phones. Apart from mobile phones, demand for personal computers isalso increasing at a blistering pace due to rapid industrialization.

In addition to this, the improving infrastructure and the introduction of the latesttechnologies in the Indian telecom market , such as WiMAX and 3G, supportsgrowth in the industry. Further contributing to high growth in the telecom sector isthe rising demand for new technological fashion devices, which are becomingincreasingly popular among the young population.

Boom of Telecom Advertising and Its Effects


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Telecom advertising, a $1 billion industry globally with a three billion subscriberbase, isset to take off in a big way in India too.

Service providers, market research firms and independent companies, which justfocus on this medium, are all seeing value in the expanding Indian mobile market,estimated to be 500 million subscribers by 2010.The market for telecom advertising, which is still at its nascent stage, is estimatedto grow to Rs 20-25 crore by March in the country. It was estimated to be a mereRs 5-6 crore about six months ago.

Telecom Advertising proved at its best.It is said that main reason behind thesuccess of the sector is its unconventional strategy and aggression towards target

market.

Telecom Advertising has been enormously growing and supporting telecomcompanies to grow much more. Reliance Communications, a leading CDMAservice provider and a pioneer of mobile advertising in the country, has effectivelyoffered mobile advertising solutions for more than 20 clients over the past fouryears. Starting off with LG during World Cup Cricket in 2003, it has since thenhandled Cadburys, Coke, Maruti, Hyundai and even financial brands like ICICI,Kotak and HDFC among others."With the mobile handset population poised to top 500 million in India by 2010, it

has become a huge and vibrant communication platform, which no brand marketercan afford to ignore," Reliance Communication Applications & Solutionspresident Mahesh Prasad told ET.

The growth of 3G networks, IPTV and high-end gaming on mobile phones, isexpected to open new avenues for the medium.According to records "Reliancemobile marketing solutions offer creative means and focused targeting to reachour more than 37 million subscribers anytime, anywhere in an non-intrusivemanner,".

With the thrust on technology, Kaybase through a tool, Critical Incident Track (CITrack), made use of the very high mobile penetration in the country, and therelatively non-intrusive nature of an SMS. "It is a tool to conduct ongoing contactaudit of the clients services. Its chief advantage is the low cost and the real-timereporting features," said Kaybase director R Ashok. Its effect can be seen by profitresult of companies, and growing awareness and interest of Rural audience.Increasing demand for telecom has been encouraging its market potential andopportunity as well. Nowadays there are several advertising Agencies who are


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given more attention and consideration for making it bigger for telecomsector.Lowe,O&M,Lintas, Bright Advertising and many more are there who havebeen nourishing this sector by their work. The best effect of telecom advertising isAwareness and concentration among Rural market towards telecom.

Market Potential

India, for the second straight month, added over 9mn mobile subscribers in August2008, which boosted the wireless base to over 305mn users while overall tele-density reached about 30%. August subscriber additions were a tad below July2008 figure of 9.21mn, and did see incumbents like Bharti Airtel witness amongstthe slowest incremental month on month (mom) additions. However, we wouldwait for the growth scenario to evolve further. For now we maintain our FY10Etarget of about 448mn wireless subscribers.

Bharti incremental subscriber growth at 0.2% mom; Rcom adds 1.75mn Bhartiadded 2.7mn subscribers in August, witnessing one of the slowest incrementalincrease of 0.2% mom while Rcom subscriber base increased by 1.75mn, anincremental rise of 0.1% mom. Idea Cellular added 1.03mn, a slight drop of 2.3%from 1.05mn users added in July 2008. We expect Idea user base to pick up onceits Mumbai launch stabilizes and begins operations in new circles.

Vodafone Essar incremental adds rise 3% mom Vodafone Essar netted about1.81mn users, an incremental increase of 3% mom while BSNL incrementalmonthly additions jumped 10.5% to take its subscriber base to 43.2mn. Spicecontinued to lose subscribers with another 0.6mn subscribers knocked off from itstotal which now stands at 3.6mn

Source:- India info line

Advertising Trends In Indian TelecomThe way telecom firms advertise, gives an approximate idea about the telecomtrends. I would try to uncover some of them, which come to my mind. At theinitial launch of the mobile services, they were advertised as lifestyle products.The message that sought to be conveyed was that if you have a mobile phone, youhave arrived in life. A few well-healed people could afford the high call rates atthat time. It was in no way for the masses. I am sure that the mobile companiesmade a large profit out of it. Perhaps for the first time, Indians were exposed toconcepts alien to them: Customer Care Support. It saw a booming of the ancillaryservices and fresh graduates, stunted in mental development though, came out in


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droves for the well-paid jobs.Airtel then sought the services of Sachin Tendulkar. He was the brand ambassadorand saw his earnings sharply increasing. I saw his picture everywhere exhortingme buy the mobile prepaid card. After the initial publicity passed away, A.R.Rahman gave his now famous tune. All the other companies have variously tried

other gimmicks to sell their connections.However, the landscape changed after Reliance came in the mobile services.Mukesh Ambani was seen telling people about his fathers dream. The initiallaunch was lackluster. With the launch of the prepaid services, the punch line wasmujhme hai who baat or I have that thing! how many people actually signedup after those ads. . Reliance was able to ramp up its numbers. Then came the adline Kar lo duniya muthi mein. (Have the world in your fist). Creative heads of thead agency.

The icing on the cake goes to Hutch. They designed the simple ad with the kid and

cute Chinese Pug. It was a hit of all sorts. It conveyed the effectiveness of themessage succinctly. I believe that it drove Hutch connections across the placeswhere it offered its services. However, it was considered too elitist for the masses.The advertisement should be able to convey the message effectively; one withwhich people could identify with. In this regard, BSNL could claim something.BSNL advertisements depicted typically government mentality for awarding thecontract to lowest in the tender process. The quality clearly shows. Is thereanyway people could identify themselves with that advertisements? What of thoseplaces where BSNL is the sole service provider?As the title goes, advertising trends are reflective of the current scenario in

telecom. Airtel has been advertising its group card labeled as Friends. In fact, untilnow, the market was treated as homogenous. Over the period, classification hasbeen sought to target the specific customers with specific needs. Airtel took thelead in announcing Senior citizen cards targeted at those above 60. The Friendscard is for those who wish to restrict themselves to their group with low callingrates and some free messages.Reliance has realized early on about targeting the businesses. Its offer of flat ratefor making STD calls to anyone across its network is unparalleled. This way it canensure that there would be higher converts towards it services. R-Connect is itsportal that differentiated Reliance early on from other operators. It knows thatfuture revenues are going to come from value added services. This way it hasforeseen the development in the industry.

ADVERTISING CHANNELS


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Advertising Planning Process

Segregation Of the Telecom Sector

Market segmentation And Target Audience- Telecom Sector

Ultra Modern Approach of Advertising For Telecom Sector Rural Market

When we talk about ultra-modern approach, it allow us to move ahead with time.


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Telecom Advertising has not only succeeded in capturing the market, but also kepta unavoidable impression upon audience. Target audience leads to plan thespecific approach to gain it, but when it comes to advertising, we need to modify itand represent in such way that it directly goes to ultimate consumer. Forconvincing more than 1 million people in same country, telecom companies

started moving and giving heavy attention towards promotional tools. Theyunderstood that if they had to be the leader one, they must have to have totalcommand over market. They focused more and more on advertisement. Butinterestingly telecom advertising twisted along with world of thought, reaching tomob. Telecom advertising represented itself unconventionally and it was comingup to make rural crowd aware of it.

Indias GDP and growth are strongly based upon agriculture and farming. Morethan half of crowd belongs to rural segement in India. Telecom advertising shapeditself to tap them. But how? (see advertising approach model)

Creativity with unique concept of telecom ad made it powerful. But only creativitywith good concept not helped it out, better execution is must. Telecom advertisingused unique concept, creativity, strong representation and best execution for it.Telecom ads are emotional and very touching which is key for the advertisers.Vodafone essar utilized a puppy as its brand ambassador but that was not enough,the concept and presentation of Vodafone ads are remarkable. Airtel, Reliance arealso top players. Reliance communication is the only Company which startedcapturing rural market beautifully, with heaviest advertisement and making peopleaware of the modern technology and its utilization.

On the contrary Virgin Mobile is Unique among all for its advertisement. Makingof an Ad is not the answer. Telecom advertisement is the best example forexecution.They used each and every possible media channel to make people awareand to build country. In remote areas and villages where people can not affordexpensive things, Advertising made it possible by telling its thousands of benefits,schemes, tariffs. And by saying that now one cant be worried for communicatinghis/her dear one.

Persuasion is the result of any advertising .Telecom advertisement was executedso well that it persuaded its target market to a high extent. And that is one of thebiggest reason to increase its demand.


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MEDIA

Geographical ExtensionAwarenessGeogarphical extn.Buying Behaviour

Approaching to Rural Crowd(Village of Andhra Pradesh- Telugu)

An Idea can Change Telecom.!!!!(Idea cellular ad for rural)

This is Called Democratic Advertising

Reaching Beyond Limits


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Virgin Mobile- Think Hatke

Vodafone Ads is famous for Puppy Freindship-Wherever you go, network follows

Airtel- Express Yourself

Advertising in India is a highly competitive business. Today with the increasingconsumer awareness no business can survive for long without advertising .withgrowing business competition it has become necessary to ensure right media mixto each target audience . Today, advertising agencies are precisely taking care ofconsumer needs and provide creative designs with concept & ideas.

Advertisers in India reach about 75 per cent of the population through television,and almost the entire population through radio. Certain televised programs enjoy aviewership of more than 100 million. The Indian viewership exhibits a brand namerecognition of both foreign and domestic products and services.

Approach Model For Rural Sector-


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Creativity

Advertising Execution Awareness

Persuasion

Buying Behavior

Airtel- Represent its reach to remote areas too

Vodafone- ..Reachable !!

Market potential for Advertising segments in Telecom Sector


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Key Findings-

Telecommunication Services had the largest share of 64 per cent followed byTelecommunication Equipments and Corporate Brand Image/Public Issue with 34per cent and 3 per cent respectively in 2007.

In Telecom sector MTNL leads for Corporate advertising and Idea Cellular Ltdtops in Public Issue advertising on TV during 2007.

'Telecommunication Services' had the largest share of Telecom Sector TV ad pieduring January - August 2008, followed by 'Telecommunication Equipments' and'Corporate Brand Image' with 24 per cent and 1 per cent share respectively.

Growth in Ad Volumes of Telecom Sector

Graph.1-

Telecom sector has seen a rise of 61 per cent in TV advertising during 2007 over2006.

Graph2.-

Telecommunication Services has recorded a growth of 108 per cent in TVadvertising during 2007 over 2006. Compared to 2006 Telecommunication Equipments saw a growth of 17 per centon TV during 2007.

TV Advertising Of Telecom Sector- National v/s Rural

TV advertising of Telecom sector on National and Regional channels was in the


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ratio of 71:29 during January - August 2008.

'Tamil Nadu', 'West Bengal' and 'Andhra Pradesh' were the top three states tocontribute the maximum in advertising of Telecom sector on Regional channelsduring January - August 2008.

Source:- AdEx India,TAM research report 2007

Volume Growth of Telecom sector segments on TV during January - August2008.

Compared to January - August 2007, advertising of 'TelecommunicationServices' recorded a growth of 127 per cent on TV during January - August 2008. During January - August 2008, TV advertising of 'TelecommunicationEquipments' has seen a growth of 45 per cent during January - August 2008compared to January - August 2007.

Advertising by Telecom Industry on Print in 2007

15% growth in Telecom Sector advertising in Print during 2007 over 2006.

Telecommunication Services had the largest share of 56% of overall print ad pieof Telecom sector in 2007. Print advertising of Telecommunication Equipments grew by 57%, whereas itdropped by 12% for the Telecommunication Services during 2007 over 2006. 'Nokia Corporation' was the number one advertiser under the TelecommunicationEquipments and BSNL leads in Telecommunication Services advertising in Printduring2007. 'Sagem Bleu' and 'Airtel Happy Recharge' topped the chart of new brandlaunches under Telecommunication Equipments and Telecommunication Servicesrespectively in Print during 2007.

Telecom sector advertising in Print grew by 15% during 2007 over 2006.

Share of segments of Telecom sector Print advertising


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Telecommunication Services led with 56% share of overall Print advertising inTelecomsector followed by Telecommunication Equipments with 34% share in 2007.Corporate /Brand Image and Public Issue together contributed 10% share of

overall Printadvertising of Telecom sector in 2007.

LG Electronics India Ltd stood at number one position in Corporate advertisingandIdea Cellular Ltd leads in Public Issue advertising in print.

Segment wise growth in Telecom Sector- Print Advertising

Telecommunication Equipments has seen 57% growth in Print advertising during2007

compared to 2006.

Telecommunication Services recorded a drop of 12% in Print advertising during2007over 2006.

Top Advertisers Of Telecom sector in Print 2007

'BSNL', 'Reliance Communication Ltd' and 'Tata Teleservices' were the top 3advertisers in the Telecommunication Services advertising in Print during 2007.'Nokia Corporation' had the largest share of 40% of Telecommunication


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Equipments followed by 'Motorola' and 'LG Electronics India Ltd' with 17% and15% share respectively during 2007.

Top Advertisers Of Telecom sector on TV 2007-08

Top three advertisers under the Telecommunication Services are Bharti Airtel,Reliance Communication Ltd and Hutchison Essar Telecom Ltd on TV in 2007. Top five advertisers of Telecommunication Equipments contributed 95 per centshare of segment advertising during 2007.

Nokia Corporation topped the chart of top advertisers under TelecommunicationEquipments with 43 per cent share, followed by Sony Ericsson (India) andMotorola each with 16 per cent share in TV advertising during 2007.

Top Advertisers through all media channels 2008

Top three Key players in through overall advertising of 'TelecommunicationServices' . 'Vodafone Essar Ltd', 'Bharti Airtel Ltd' and 'Reliance CommunicationLtd' together contributed for 61 per cent share during January - August 2008.

During January - August 2008, share of Top five advertisers of'Telecommunication Equipments' for overall advertisement, where NokiaCorporation', 'Samsung India Electronics Ltd' and 'LG Electronics India Ltd' werethe Top three advertisers.

Share of Sales Promotion in Telecom Sector

'Price Promotion' ad campaign was used maximum for advertising ofTelecommunication, Equipments, whereas 'Combination Promotion' was preferred


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for advertising of Telecommunication Services in 2007.

Interestingly Price Promotion which leads in Telecommunication Equipmentsadvertising with 48% share had a meagre share of 3% under theTelecommunication Services

Promotional Strategies of Cellular Service Providers in India-

The GoI's decision to liberalize the telecom sector in 1994 transformed theentire telecom industry, with many private companies foraying into the sector

Most of the promotional strategies revolved around capturing the youngergeneration who formed a major part of the target market.

Celebrity endorsements, Strategic advertising with better execution towards

rural market, special season offers, festival discounts, and innovativeadvertisement campaigns were used by the cellular service providers as tools topush back the competition and increase their market share.Year 2004 (Special Plans and Loyalty Schemes)

With a view to reaping the benefits of the pre-paid segment, RIM launched itsprepaid service in 2004. The launch campaign involved a rally of motorbikes andcars bearing the RIM prepaid flags along with the RIM catch line Mujhme HaiWo Baat (It's There Within Me).The Promotional Campaigns

The younger generation also began to flaunt the cell phone as a status symbol. TheMost importantly rural market was forecasted as emerging big market for thisindustry. Soon cell phones were being used not only as a tool for communicationbut also as a source of entertainment...Year 2000-02AirTel roped in famous movie actors Shahrukh Khan and Karishma Kapoor asbrand ambassadors for its prepaid service Magic.

The company felt that celebrity endorsement was a suitable way to promote the

brand and an effective tool for expanding market share.

Year 2003 (Cricket, Bollywood and Celebration)

By 2003, the cellular service market had ten major players and the situationdemanded that service providers come up with novel ideas to attract the consumer.Festivals and special occasions were times when cellular service providers offereda range of schemes.


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In February 2003, AirTel launched a Valentine's Day Promotion Contest, whichwas targeted primarily at youth celebrating Valentine's Day...

Source:- ICMR INDIACase Code : MKTG106

Period : 2000-05Pub Date : 2005Teaching Note : AvailableIndustry : Cellular IndustryCountries : India

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Telecom Advertising : Challenges and OpportunitiesEntertainment is an effective vehicle, not advertisement objective. Maximizingsales data helps focus & refine targeting the secret to advertising costeffectiveness. -Roy Morgan InternationalThe current mobile advertising and marketing universe is beset by a whirlwind ofactivity in which, by mid-2009, Mind Commerce expects will be dominated by afew key mobile marketing suppliers. Research finds that those companies that areready to incorporate mobile as part of their advertising and marketing efforts will

reap the rewards of increased consumer profitability.

Companies are increasingly embracing mobile phones as a viable channel to targetconsumers with brand messaging. Mind Commerce's lates report, 'TelecomMarketing & Advertising: Challenges and Opportunities,' forecasts that spendingin this medium will grow to $19 billion by 2012 from about $1.6 billion today.Fueling this growth are improvements in mobile technology by leading cellularservice providers, increased consumer adoption of mobile phones, and a growingniche market of suppliers of mobile search, messaging, and marketing services.

It is being accepted that the current mobile marketing and advertising market,evaluating methods companies are using to effectively leverage it as a platform toenhance brand awareness and increase sales effectiveness. The report examines theleading suppliers to the mobile marketing industry and analyzes how theirproducts are impacting the way consumers opt-in to cell phone-deliveredmarketing messages and increasingly use their phones to search for, and evenpurchase, products and services.


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Key Findings

-2008 will be a breakthrough year for mobile spending as marketers worldwidemove from disillusionment over their expected return from this platform to therealization that mobile can enhance consumer brand equity-The current telecome advertising and marketing universe is beset by a whirlwindof activity in which, by mid-2009, Mind Commerce expects will be dominated bya few key mobile marketing suppliers-Mobile search is playing an increasingly important role in helping cell subscribersnavigate the mobile Web.

MARKET RESEARCH SYSTEM

Marketing research is the systematic design, collection, analysis and reporting ofdata and findings relevant to specific marketing situation facing the company.Marketing managers may request a market survey a product preference test a salesforecast by region, or research advertising effectiveness.

MARKETING RESEARCH PROCESS:-:

STEP 1:

Define The Research Objectives:The first step is to define and agree on the research objective. Well-defined


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objectives make it easier possible to accomplish the mission.

Purpose behind this research was to know the ultra moderns approach of TelecomAdvertising In rural Sector.

STEP 2:

Developing the Research Plan:

The second stage is to develop a research plan for gathering the need information.This calls for decision on the data sources, research approach, researchinstruments and contact method.

Data Sources:

The research plan calls for gathering primary, secondary or both types of data.Primary data was gathered by interviewing a decided sample space for theresearch project.

Secondary data was collected from related issues in newspaper and businessmagazines and different web Sites

The normal procedure of collecting the data is to interview some peopleindividuals or in groups to get preliminary sense of how people feel about thetopic in question and develop a formal research instrument, develop it and carry itinto the field.

Research approaches

Primary Data Was Collected In the Following Ways

1. Observational Research:Data can be collected through direct observation in the field

2. Experimental Research:The purpose of experiment research was to capture cause of effect relationship byeliminating competing explanation of the observed findings. Experimentalresearch calls for selecting matched groups of subjects, subjecting them ofdifferent treatments and checking whether observed response difference is


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statistically significant.

Research instrument tools:-

It is the most common tool of collecting primary data. A questionnaire consists of

a set of questions presented to respondent for their answer.

Close end question specify all the possible answer and respondent make a choiceamong them. Open-end question allow respondent to answer in his or her ownwords. Open-end question are useful when the researchers is looking for theinsight in to how people think rather then measuring how many people think in acertain way.

The questioner was designed by exercising proper care in choosing the words and

sequence of questions. The questionnaire is in simple, direct, unbiased language.

The basis decided was:

1. The head question should create interest.

2. Difficult or personal question should be asked towards the end of the questionerso that the questioner does not become defensive early.

Sampling Plan:

Sampling plan calls for three decisions.1. Sampling Units:Define the target population that will be sampled.

2. Sample Size:There are 100 respondents from satellite station of Nagpur from different agegroups.

3. Sampling Procedure:In Random sampling and Judgment sampling there was no scientific methodadopted it was purely judgment based.

Contact Method:The second difficult job was to determine how the subjects should be contacted.

Personnel Interview:-Questions are asked directly face to face to the respondent. Personnel interview


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are of two forms arranged interviews and intercept interviews. In arrangedinterviewed, respondent are randomly selected and either telephoned or approachat their homes or offices. Intercepts interviews involves stopping peoples atshopping malls or busy street corners and requesting an interview.

Step 3:Analyzing the Information:This one extract the finding from the data collected. I tabulated the data andapplied frequency distribution and other related statistical techniques.

RESEARCH METHODOLOGY

1. Source Of Data:Primary source: 100 consumers of different age group from satellite station nearbyNagpur like Gondia and Bhandara.

Reason: Primary data is direct, unhampered data and it is taken by the user ofproduct.Secondary source: Related articles from newspaper and business magazines andweb sites. As this data is based on lots of analysis of primary data and crossanalysis of other factors.

2. Nature Of Data:Data collected from consumers are opinion. While that from related websites arefacts.

3. Communication approach:Tool: QuestionnaireType: StructuredMedia: Personal for consumers.

4. Type of Research:Two types of researches were carried out to arrive at solution.A] Preliminary StudyPreliminary study was doneTo define the problem precisely.To determine the target population.To determine sample size & sampling process.

B] Conclusive ResearchConclusive research was doneTo find out the route cause of the problemWith the help of achieved data arrive at solution.


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5. Scale of measurement:Consumers: Nominal scale and record rating scale.

SAMPLING PROCESS

STEP 1:To define the target audience for telecom advertising.

STEP 2:The frame of research population was fast growing Telecom service consumingplaces in small town, remote areas of nearby Nagpur like Gondia and Bhandara.

STEP 3:The suitable method of sampling for consumers is combination of judgment

sampling and quote control sampling. Majority of the location and spots wereselected on the basis of judgment of the concerned senior marketing executives.And among the selected location the target population was selected to formdifferent quota i.e. different age group.

STEP 4:The sample size was distributed and stratified as follows:For Consumers

Age Group Sample size

15-22 years 2323 30 years 3131 38 years 24Above 39 years 22Total 100

MARKET RESEARCH


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INTRODUCTION OF THE RESPONDENT

Age wise distribution of respondent from various age groups:-

Observation And Findings:- A total sample space of 100 respondents was interviewed and the above graphreveals the facts. The method of random and judgment sampling was considered. 23 respondentsfrom the age group of 15-22 years were interviewed. 31 and 24 respondents wereinterviewed from the age groups 23 30 years, 31 38 years respectively and the

final group comprised of 22 respondents.

Telecom Brand Preferred by Respondents

Observation And Findings:-

Asking for preferable telecom service , the result was little bit expected ,it was

BSNL with 42% of 100,Vodafone with 16% proved its presence in Rural marketwhereas Reliance has got impressive 21%. The important point is to see thatReliance was the first pvt. company decided to capture the rural. In fact theymotivated the telecom advertising in rural sector.

Best way of Advertising?


Once again TV swept the media output. Maximum with 62% out 100 were in


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support that TV is the best to advertise any product. News papers were favored by16% and Radio with 12%. Outdoor Advertising has not still captured ruralaudience as it has got only 6% .where as Online, due to rural audience got only 4%

Like Watching TV ads During Break?

Observation and Findings:-

This question was put forward to respondent because it shows the perception andattitude of audience towards advertising in current scenario. Advertising hasaveragely targeted 44% out of 100 which is increasing.28% of the respondent saidthat they watch it quite a lot. 16% were found very interesting in watching adswhich is good news for this segment. Whereas 4% response came in for denyingthe its fact.

Which media channel for telecom ad you pay more attention to?


This Research project is only for telecom advertising so this was one of the mostimportant to know. As results, Rural segement highly supported TV channels tograb their attention for telecom ads.52% out of 100 respondent said TV telecom ad


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they pay high attention to. Different type of newspaper are circulated in each andevery place which were supported by 22%. Radio with 14%, outdoor with 7% andminimum Online with 5% were found.

Which telecom company presents best advertisement?

Observation And findings:-

It is fight for telecom advertising to gain more and more TRPs for their ads.Asking for best advertisement of the companies Vodafone is leading all the wayfor its puppy ad with 27% out of 100. Well Airtel and reliance are not way backwith 16%, 23% respectively. The Democratic Funda Of Idea were found mostintellectual and better with 13%.

Did Ad persuade you to buy mobile/SIM connection?


It is said that Advertising speaks itself. It has got the tremendous power topersuade consumer. This question was put forward before respondents to know thereality. 64% respondents out of 100 said that they buy mobile set/SIM inspired byadvertisement ,as it gives enough knowledge of product feature. While 36%respondents still feel that they dont rely too much on Advertisement.


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Do you think Telecom advertising is one of the biggest reason for its growth inRural segement?


Nobody is unaware of spectacular growth of telecom sector in rural segment too.But it is very important to know the right approach.83% out of 100 said betterment of advertising has lead it so high. Where as 17%

respondent gives reason as Good Plans and better utilization of technology givenby Company itself.

Usually Do you remember Radio Telecom Ad?


TV has always been dominating its other sub-section of media channels. Whenrespondents were asked question whether they usually remember Radio telecomad or not? 55% were supported it , reason was nowadays radio industry is alsogrowing day by day. Big Radio channels and several FM channels are providinggood services to rural audience too now. 45% respondent denied because they cannot recall it due to its invisibility.

According to you, Why Telecom advertising does have strong impact?


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What Rural segement think of advertising and why do they like it so much?Indians are known as very kind and emotional, No one could have utilized it betterthan Advertising. 38% are impressed due to emotional and real feeling ofbelongings. Kids are leading the advertising and Telecom too with

23%.Cultural/tradition feeling by ads brought it to 10%. Unique concept is one ofthe major reason which has got 21% respondent.

Do you think Excess Advertising can weaken the brands?


Too much of advertising weakens the power of product, is it true? As a result

respondents came out with sincere result. 79% out of 100 that excess advertisingweaken the power of any product.

Whereas 21% are supporting it, saying that it does not weaken the product becauseit works for making target market aware of it fully.

Which Telecom ad did you find most sentimental and interesting?

Usually Telecom ads are found highly sentimental, touching or to the contraryvery interesting. Airtel wins the heart and mind of 28% respondent out of 100,where as the famous puppy friendship got 25%, The democratic feeling of Ideais also being liked by 17% whereas reliance and BSNL are with 14% and 8%


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respectively. Other 6% are mix of rest of the telecom companies asMTNL,BPL,Indicom and Virgin mobile.

Analysis

Around 88 million phones have been provided in the rural areas with a tele-density

of around 11 percent(according to report.) The questionnaire was put forwardbefore different respondents from satellite station nearby nagpur.

As a result I got blend of answers which were supporting that the approach ofTelecom advertising has done it rightly.

TV advertising is leading all the way, as audience find it most preferable Mediachannel to advertise.

Vodafone is found the best for its consistency in

Advertising, by respondents.

64% respondents accepted that they do buy the telecom products influenced byads.

The most interestingly 83% accepted that advertising is one of the biggestreason which pushed Telecom industry towards high growth in Rural market.

While analyzing one more important point came out that was Radio ad.

It shows that Radio industry is growing well , by extending their FM stations in

Rural Segment and small cities and towns , and because of this advertising getsanother opportunity.


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Why telecom advertising impresses and influence audience so muchcomparatively than any other.

Emotional and touching concepts made it so special.

Kids are leading the advertising world today and it is 2nd biggest reason to

impact audience.This analysis indicates the changing perception of rural audience andunconventional approach to them.

Conclusion

Media and Entertainment is one of the booming sectors contributing a lottowards the economic growth of the country.

This industry stood at Rs 43,700 crores in the year 2006 and is expected to growat an annual rate of 19% till the year 2010.

Rural Audience are too becoming prudent enough to digest the concept andpurpose of these ads.

Excess advertising weakens products interest among consumer. Advertising

industry has been upgrading its area with experimental way of campaigning. In India where you find more than 75% population from rural area, achievingtheir trust is really big success not only for advertisers but also for ad agencieswho does this behind the scene. But it is to be thought that how long it sustains forgetting higher sales force and attention of target audience.

Telecom advertising did excellent in connecting rural people to technology byits strategy.


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Apart from all this one familiar instrument is rising all the way i.e. TV. Whoprovides this facility to audiences. Besides it Advertising agencies like Lowe,JWT, O&M have been performing up to the mark which encourages

Indian advertising and giving innovative and considerable raised area to Indianadvertisers. Airtel and Vodafone are still in competition to be no.1.

Touching concepts, strong representation which gives rural people actualtraditional and cultural feeling of being Indian really Worked Out !

Suggestions And Recommendations

Advertiser should use segment wise advertisement

Rural people are more brand conscious so advertiser must keep that in mind

Advertisement should revolve around emotions i.e sentimental ads withdifferent situations

Excessive advertisement should be avoided it create negative impact

To capture rural market one must think global and act local

Rural languages must be used for communications

Cross-selling can be use in rural areas for promotion

Corporate social responsibility can be best way to win the heart in rural market

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Modern Approach of Telecom in Rural

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