a comparative study of promotional strategies adopted by reliance–gsm & tata–docomo...
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
INTRODUCTION : -
The purpose this project work is to do “A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO IN GONDIA REGION .”
Indian Telecommunication Industry is the third largest telecommunication network in the world and the second largest in terms of number of wireless connection, with about 464.82 million mobile phone connections.
A large population, low telephony penetration levels and a rise in consumers income and spending owing to strong economic growth have helped make India the fastest growing telecom and mobile market in the world and it was thrown open to private players in the 1990’s.
Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involves electrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning.
Historically telecom network in India was owned and managed by government as it is considered as a strategic service.
INDIA’S POSITION IN TELECOM SECTOR :-
India is 4th largest market in asia after china, japan and south korea.
Indian telecom network is 8th largest in the world and 2nd largest among emerging ecomomies.
Contribution of telecom sector in terms of revenue is 2.1 % of GDP as compared to 2.8% in developed economies.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 1
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
REFORMS IN TELECOM SECTOR :-
Reforms in telecom sector began in 1980 with telecom manufacturing being opened for private sector followed by National Telecom Policy (NTP) in 1994 and 1999.
In 1990 telecom revolution in many countries which resulted in better quality of service with lower tariff rates force Indian policy makers to open up telecom sector for private players.
GROWTH OF MOBILE TECHNOLOGY :-
India has become one of the fastest-growing mobile markets in the world. The mobile services were commercially launched in August 1995 in India. In the initial 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions.
However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05.
Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up.
The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
65 million in 2006. As of January 2009, total mobile phone subscribers numbered 362 million, having added 15 million that month alone India ranks second in mobile phone usage to China, with 650 million users as of January 2009.
India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service.
The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market.
In September 2004, the number of mobile phone connections have crossed fixed-line connections. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band.
In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year.
The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers.
CLASSIFICATION OF TELECOM SECTOR:-
1. Fixed Line Telephony :-
Current market size of rs.30164 crore with 43 million lines.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
BSNL and MTNL account for 90% revenue for basic services.
Private sector avilable in 18 circles and collectively account for 10% of revenue.
Private sector offer high end services like leased lines, isdn, videoconferencing as a result ARPU ( av. revenue per user is more for private players).
2. Mobile Telephony :-
There are 25 private companies providing cellular services in 19 telecom circles and 4 metro cities, covering 1500 towns across the country.
Presently, there are five private service operators in each area, and an state operator.
Almost 80% of the cellular subscriber base belongs to the pre-paid segment.
The dot has allowed cellular companies to buy rivals within the same operating circle provided their combined market share did not exceed 67 per cent.
Previously, they were only allowed to buy companies outside their circle.
3. Internet :-
Internet has become very easily accessible with cyber cafes.
There is no restriction on the number of internet companies and
more than 185 companies are operational.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Internet telephony has been allowed officially from 1 April 2002.
The growing demand of corporates for applications such as
electronic commerce, internet leased lines, ISDN, VPN etc is
driving the growth of the internet services market.
MARKET SHARE OF PRIVATE AND PUBLIC PLAYERS :- The public players and the private players share the fixed line
and the mobile segments.
Currently the public players have more than 60% of the market
share.
Bharti airtel has the largest customer base with 31% market
share, followed by hutch (vodafone) and bsnl with each holding
22% market share.
The value added services provided by the mobile service operators contribute more than 10% of the total revenue.
KEY INDIAN COMPANIES :-
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
1) BSNL :–
Incumbent service provider and World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India
Services include Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc.
2) MTNL :–
State owned operator covering the cities of Mumbai an Delhi
Provides both fixed and mobile services
3) Bharti Airtel :–
Integrated operator with presence in all segments
Leads the mobile segment in the country
4) Reliance Communications :–
Largest player in India in the CDMA segment
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Provides GSM network service
5) Tata Teleservices :– Integrated operator (with VSNL) with presence in all segments Provides CDMA services in 20 circles
6) IDEA :- IDEA operates in eight telecom “circles,” or regions, in Western India,
and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group.
7) Vodaphone :-
• Vodaphone has a 10% stake in Bharti telecom, an integrated service provider
• Represents the largest foreign investment in the telecom services sector in India
TECHNOLOGY USED IN TELECOM SECTOR :-• 1. GSM (Global System for Mobile communication)• 2. CDMA (Code Division Multiple Access )
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
• 3. Wireless Local Loop (WLL) • 4. 3G Technology
India has opted for the use of both the GSM and CDMA technologies in the mobile sector. But India primarily follows the GSM mobile system.
MAJOR PLAYERS IN TELECOM SECTOR IN INDIA :-
GSM Market Share Feb.-2009Name Of Company Subscribers % Share Market
Bharti Airtel 91114971 32.88 %Vodafone Essar 65920902 23.79 %
BSNL 44180880 15.94 %IDEA 41518613 14.98 %Aircel 17476962 6.31 %
Reliance Telecom 10744953 3.88 %MTNL 4084579 1.47 %BPL 2073184 0.75 %
All India 277115044
The breakup of wireless subscriber base in India as of May 2009 is given below :-
Operator Subscriber base
Bharti Airtel 99,549,208
Reliance Communications 77,223,264
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 8
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Vodafone Essar 74,080,707
BSNL 53,598,591
Idea Cellular 41,243,253
Tata Teleservices 36,486,763
Aircel 20,685,711
MTNL 4,568,269
Spice Telecom 4,235,023
BPL 2,256,862
Sistema Shyam 936,189
HFCL Infotel 382,602
All India 415,246,442
Thus there is a huge competition between various players in India and this study will help me to get knowledge of this telecommunication sector. Hence I am mainly focusing on the promotional strategies adopted by Reliance–GSM and TATA- DOCOMO.
PROMOTIONAL STRATEGY :-An organizations promotional strategy can consist of :
(A) Advertising : It Is any non personal paid form of communication using any form
of mass media.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(B) Public relations :
It Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention.
(C) Sales promotion : It is Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.(D) Personal selling :
It refers to sell a product service one to one.
(E) Direct Mail :
Direct Mail is the sending of publicity material to a named person within an organisation. There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of advertising expenditure. Organisations can pay thousands of pounds for databases, which contain names and addresses of potential customers.
Direct mail allows an organisation to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalising advertising, response rates increase thus increasing the chance of improving sales.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 10
Promotinal Mix
Public Relations
Advertising
Personal Selling
Sales Promotion
Direct Mail
Intrnet Marketing
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Message & Media Strategy :
An effective communication campaign should comprise of a well thought out message strategy. What message are you trying to put accross to your target audience?. How will you deliver that message? Will it be through the appropiate use of branding? logos or slogan design?. The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. Companies with effective message strategies include:- Nike : Just do it. Toyota : The car in front is a Toyota. DoCoMo : Do the new.
Media strategy refers to how the organisation is going to deliver their message. What aspects of the promotional mix will the company use to deliver their message strategy. Where will they promote? Clearly the company must take into account the readership and general behaviour of their target audience before they select their media strategy. What newspapers do their target market read? What TV programmes do they watch? Effective targeting of their media campaign could save the company on valuable financial resources.
Push & Pull Strategies :-
Pull Strategy Push Strategy
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 11
WHOLESELER
MANUFACTURER MANUFACTURER
WHOLESELER
PROMOTION
PROMOTION
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organisations tend to use both push and pull strategies to create demand from retailers and consumers.
Communication Model – AIDA :-
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 12
RETAILER
CONSUMER
RETAILER
CONSUMER
Attention Interest Desire Action
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
AIDA is a communication model which can be used by firms to aid them in selling their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When a product is launched the first goal is to grab attention. Think, how can an organization use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest, through promoting features, clearly stating the benefit the product has to offer? The third stage is desire, how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action, if the company has been successful with its strategy then the target customer should purchase the product.
Promotion through the Product life cycle :-
As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product .Stages and promotion strategies employed :
Introduction:
When a product is new the organizations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Growth : As the product becomes accepted by the target market the
organisation at this stage of the lifecycle the organization works on the strategy of further increasing brand awareness to encourage loyalty.
Maturity : At this stage with increased competition the organisation take
persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors.
Decline : As the product reaches the decline stage the organisation will use
the strategy of reminding people of the product to slow the inevitable
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(F) Internet Promotion :
The development of the world wide web has changed the business environment forever. Dot com fever has taken the industry and stock markets by storm. The e-commerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week.
Owning a website is a now a crucial ingredient to the marketing mix strategy of an organization. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Playstaion 2 console over the net, which topped a 1 million after a few days, European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal.
Advertisers have now moved their money over to the internet as customers are on average spending more time online then watching TV. Popular ways to advertise seem to be with banners and pop ups.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
PROBLEM DEFINITION :-
Reliance Infocomm and TATA Teleservices were entered into mobile services using CDMA technology. In June 2006 Reliance has introduced GSM technology. Thus Reliance is the existing market player for GSM. Tata Teleservices has introduced GSM technology with the Japanese Company “NTT- DOCOMO” on 07th August 2009, which is then known as TATA-DOCOMO. Thus TATA-DOCOMO is the new player in market. Thus both Reliance -GSM and TATA-DOCOMO are facing the problem for changing the Indian customers mind set from CDMA technology to GSM technology.
PROFILE OF TATA-DoCoMo :-
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
TATA DoCoMo is Tata Teleservices Limited's ( TTSL) telecom service on the GSM platform.
The brand is named as Tata Docomo, joint venture of Tata Tele services
India and NTT Docomo, Japan. Tata is a household name in the country and is considered as one of the most trusted names across the world. Tata-DoCoMo don’t need to build up the Tata brand name.
Strategic alliance with Japanese telecom major NTT DoCoMo in November 2008. NTT DoCoM000o bought a 26% stake in Tata Teleservices for 2.7 billion USD, the number 6 in Indian telecom industry and owned by the Tata group, on March 2009.
GSM Service launched in south India on June 24, 2009
In Maharashtra GSM Service was launched on August 1, 2009.
TATA DoCoMo tag line is “ DO the new ”.
The campaign, which will run through the festive season, aims to stand out with two key selling points: one, its tagline ‘Do the New’; and two, its differentiated tariff plans.
TATA DoCoMo VAS (Value-Added Services)– 3G technology– i-modeTM – mobile payment– lifestyle-enhancing applications
Mr. Kishor A. Chaukar, Chairman, Tata Teleservices (Maharashtra) Ltd. The company is headquartered in Mumbai, India.Do the new’ is a concept that prompts every citizen to do something new, even if it’s a small thing. For Mumbai and the rest of Maharashtra circles (including Goa), the company has roped in Pune based Ms. Pooja Chopra (Femina Miss India
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
World 2009) and Ms. Krushnaa Patil, again from Pune,(the youngest girl to conquer Mount Everest) as brand ambassadors. Chopra and Patil are do-ers for the company. They are young achievers and are the personification of the Tata DoCoMo brand.
Pooja Chopra, Femina Miss India World-2009 with Gurudas Kamat, Minister of State for Information Technology and Communications, Government of India, and Member of Parliament from Mumbai, acknowledged the Tata DoCoMo SIM replica[August 06, 2009]
TATA DoCoMo has unleashed a range of products and innovative tariff options and introduced the ‘Pay-per-use’ advantage as an introductory offer.
Tata Docomo had taken up social media to promote their brand online. In the Contact Us page one can see the various subscriptions to social media sites like Twitter, Facebook, StumbleUpon, Technorati etc. It could be seen that social media is one of their strategies for marketing their products and creating an online presence.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Ms. Krushnaa Patil , Brand Ambassader of Tata-DoCoMo[August 06, 2009]
Tata Docomo has probably understood that the Indians are increasingly found online using various social media platforms like Twitter and Facebook. And it probably wants to at least capture the attention of these people. That does not mean they have left out the traditional routes of advertising. They have invested heavily into outdoor, print and television media. But the fact that they are open to the idea of using social media marketing is in itself laudable.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Innovative Tariff Plan of Tata-DoCoMo :-
From now, second is the new minute. One paisa per second, across India
For Tata DoCoMo, ‘doing the new’ has also meant charging the user per second, and not per minute. The basic tariff is one paisa per second for both local and STD calls, a deviation from the industry practice of a 60-second billing.
Special Features of Tata-DoCoMo :-
It is offering both postpaid and prepaid plans with a variety of features. It is also giving free voice mail and miss call alert service.
Call rates.– 1Paise per second anywhere in India.– Total transparency.
After every call the following information is updated on the screen of your handset.
– Seconds that you saved vis-a-vis a 1 minute call – Your account balance – Last call charge
Pre-activated STD, ISD and National Roaming without rental. Automatic alerts when your Balance is Low.
PrePaid Tariff Details :
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Lifetime Validity SIM – it costs Rs 49/- and comes with Rs 5 talktime all Local Calls – 1p/second; all STD calls – 2p/second.*Introductory offer :
STD calls upto 27,000 seconds are charged at 1 p/second in a month, beyond that 2 p/second in that month. (for a limited period)
SMS (P2P SMS , upto 160 characters)
Local – 60pNational – Rs 1.20International – Rs 5WAP & GPRS (zero rental)Portal Browsing is free on Tata Network (all over India)Portal Browsing 10p/10KB on Non-Tata Roaming Network.Internet browsing 1p/1kb on Home Tata networkInternet browsing 10p/10kb on National Roaming (Tata & Non-Tata Roaming Network)Conditions: 1. Validity for lifetime is applicable as per license period of the circle and is subject to change in case any regulatory and licensing condition changes in the future. The validity of our existing license is 28/11/2014 and expendable for further periods by Govt. of India.2. Minimum recharge condition: Sum of all recharges within 90 days should add up to at least INR 100/-
Recharge Options : On e-Charge. Rs 10 – Rs 10,000 could be recharged.On Paper coupon recharge, Rs 10,20, 30, 50, 100, 200 is available.# Rs 2 Processing fee on all recharge
Plans For Prepaid-GSM of Tata-DoCoMo :-
1) 1 paisa per second anywhere in India
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Pay 60paisa/SMS for the First 3 Local SMS everyday and get the next 100 Local SMS Free for the day
National SMS at Rs.1.20/SMS2) Plan of Rs.99/-
Get 909 National SMS Free with 90 days validity3) Plan of Rs.786/-
Get 786 minutes Talk Time for Local calls Get 786 minutes Talk Time for STD calls
4) Plan of Rs.25/- [Special Juice-up pack] Get 100 minute talk time for DoCoMo to Tata-indicom, DoCoMo
and Virgin Networks with 15 days validity 5) Plan of Rs.99/-
Get 5 lakh seconds for D-to-D with 1 year validity6) Plan of Rs.222/- and Rs.333/-
Get Full Talk Time7) Plan of Rs.49/-
1 paisa per 2 seconds for all Local calls to any Network with 30 days validity
8) Plan of Rs.29/- [Night Pack] 1 paisa per 6 seconds For D-to-D From 11:00pm to 7:00am From Friday Night i.e. 11:00pm to Monday morning upto 7:00am
All D-to-D calls Free9) Plan of Rs.55/-
Get 100 minute talk time with 15 days validity10) Plan of Rs.140/-
Get 250 minutes talk time with 60 days validity11) Pay per plan
Rs.1 /5 min and 25 paisa/min for Local and STD
How to subscribe :-
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS & Music. Product Options :-
a. Talk Moreo 30 local minutes @ Rs.5 on Tata DOCOMO Network. o 30 local minutes @ Rs.12 across Networks. o 30 local/National minutes @ Rs.14 o 10 Local/National minutes @ Rs.5
b. Night TalkNow converse through the night. 60 Free Local Night minutes on Tata DOCOMO Network.
c. GPRS10MB Free Browsing @ Rs.5 only.
d. World Callingo 10 minutes to USA/Canada @ Rs.20 o 5 minutes to USA/Canada @ Rs.10 o 3 minutes to Gulf @ Rs.20
e. Entertainment15 minutes FREE music @ Rs.5
f. CricketCricket Alerts @ Rs.5/day
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Profile of Reliance Communications Ltd. :-
Hritik Roshan , Brand Ambassader Reliance Commununication
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 24
Type : Public (BSE: RCOM) Founded : 2004Headquarters : Navi Mumbai, Maharashtra, IndiaKey people : Anil Ambani, Chairman & MD, Vice-Chairman, Reliance-ADA GroupIndustry : Telecommunications
Products : Wireless Telephone , Internet , Television
Revenue : US$ 4.26 billion (2008)
Net income : US$ 1.35 billion (2008)
Total assets : US$ 19.31 billion (2008)
Employees : 33,000
Website : Rcom.co.in
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Reliance Communications, formerly known as Reliance Infocomm, along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). It is the second largest mobile operator in India, based on number of subscribers. According to National Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of the company, which accounts for more than 1.36 billion shares. It is the flagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy), financial services (Reliance Capital) and telecom initiatives of the Reliance ADAG. It uses CDMA2000 1x technology for its existing CDMA mobile services, and GSM-900/GSM-1800 technology for its existing/newly launched GSM services.
RelCom is also into Wire line Business throughout India and has the largest optical fiber communication (OFC) backbone architecture [roughly 110,000 km] in the country.
Reliance Communications has launched its Direct To Home (DTH) TV also, known as "Big TV". RelCom have presence across all B2C communications channel in one of the fastest growing markets in the world.
On the 19th December 2008,one of the flag telecom cables in the Mediterranean sea was damaged. Flag Telecom is now part of Reliance Globalcom.
On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies.
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Reliance GSM :-
On the 30th December 2008, Reliance Communications became the first telecom operator in the history of Indian telecommunications to simultaneously launch its GSM services in 17 circles, namely Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Mumbai, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh(East & West) thereby establishing itself as a pan-India operator.
It already operates GSM services in 8 circles namely Assam, Bihar & Jharkhand, Himachal Pradesh, Kolkata, Madhya Pradesh & Chhattisgarh, North Eastern states, Orissa, West Bengal , but operates under the brand Reliance Smart GSM. Reliance Smart is owned by their sister concern Reliance Telecom. They got these license when they took over USHA PHONE.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 26
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Plans For Reliance Prepaid-GSM :-
Details per Second Plan per Minute Plan
Local CallsSame Network
1 p/sec 50 p/min
Other Network
STD CallsSame NetworkOther Network
RoamingIn-comingOut-going
SMSLocal 50 paisa 50 paisa
National 50 paisa 50 paisaTariff Validity 1 year Lifetime
Pack Name MRP Talk-time / Benefit Validity
Simply per call
FRC 34 20All calls @ Rs.1/3min [Local/STD/Roming] to any Network. All SMS [Local/STD/Roaming] @50 p 1 YearFRC 84 50
STV 38 19
Simply per Minutel
FRC 35 20All calls @ 50 p/min [Local/STD/Roming] to any Network. All SMS [Local/STD/Roaming] @50 p 1 YearFRC 85 50
STV 48 24
Simply per second
FRC36 20All calls @ 1 p/sec [Local/STD/Roming] to any Network. All SMS [Local/STD/Roaming] @50 p 1 YearFRC 86 50
STV 58 29
On-net Pack27 All Local calls to Reliance Mobile @ 20 p/min 30 Days77 All Local & STD calls to Reliance Mobile @ 20 p/min 30 Days
Week-end Pack
33 Free Local calls to Reliance Mobile on Saturday & Sunday Sat & Sun
Night Calling Pack
29 Free Local calls to Reliance Mobile at night (11 pm to 6 am)
30 Days59 Free Local & STD calls to Reliance Mobile & all Other
calls at 50% off at night (11 pm to 6 am) 30 Days
Unlimited Packs (only for CDMA)
249 Unlimited Local calls to Reliance CDMA 30 Days489 2000 free Local & STD minutes to Reliance CDMA 30 Days999 Unlimited Local calls to any Local & STD Reliance CDMA 30 Days
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Pay per call & pay per second customers can not apply for unlimited packs
All Calls Local/STD/Roaming
For new Customers For current CustomersFRC (Rs.)
Talktime (Rs.) Validity SMS STV
(Rs.) Validity SMS
Rs.1/ 3 min 41 10 Lifetime50p/SMS
38 Lifetime50p/SMS50 p/min 51 10 Lifetime 48 Lifetime
1p/sec 61 10 1 Year 58 1 Year
Power PacksMRP (Rs.) Talk-time /Benefits Validity
(days)24 100 Local minutes for Reliance calls (RCDMA + RGSM) 1540 200 Local minutes for Reliance calls (RCDMA + RGSM) 3044 100 Local & STD minutes to all Mobiles 1580 200 Local & STD minutes to all Mobiles 30
Pay per call & pay per second customers can not apply for unlimited pac
Best Value Top-upsMRP (Rs.)
Talk-time (Rs.)
Promo Talktime (=10.36%) in all the ful Talktime
vouchers is valid for 7 days for only Local SMS/calls
(onnet/ offnet)
55 5575 75100 100120 140150 150200 222300 333400 400500 555
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 28
Top-upsMRP (Rs.)
Talk-time (Rs.)
10 7.120 16.130 25.250 43.3
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
SMS PacksMRP (Rs.) Talk-time / Benefits
11 All Local/National/Roaming SMS for 1p/SMSDaily Pack
14Talktime = 10.69 +Unlimited Free Local/National/Roaming SMS (daily Decrement = rs.1)-one time recharge
25 Unlimited [15,000] free Local/National / Roaming SMS/day Note : Unlimited SMS = maximum 500 SMS/day
National roaming :-
Roam at zero rent :
Make and receive calls across the length and breadth of India at zero rent and zero roaming deposit. Send and receive SMSes and retrieve voicemail from anywhere outside your home circle, at nominal rates.What's more, you get the same 24-hour customer care anywhere in the country at a single toll free number.
For GSM & CDMA :-
National Roaming Charges (Incoming & Outgoing)
National Roaming Incoming All Incoming & Local Outgoing Calls Rs.1.00 All STD Outgoing calls Re.1.50
SMS
Local Rs.1.00National Rs.1.50International Rs.5.00
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 29
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LG Handsets offer :-
Buy a new connection - bundled with the specific LG handsets and get local Reliance-to-Reliance calling absolutely free for six moths... no first recharge... no conditions.
Just do a nominal recharge of Rs 75 top-up from next moth and you can continue to enjoy the Reliance-to-Reliance calling free for one month.
Reliance-to-Reliance free calling promotion is available for a maximum of 6 months including the 1st month... Simply fantastic!
Handsets in the offer :-
LG 3610 (ColorFM) LG 3510 (Color) LG 3530 (Color) LG 3540 (Color)
Note :-Customer has to activate a new SIM-based connection on specified
SIM-based NEW handset only. Free calling benefit will not be available with old/used handset.
The benefit period is 6 months during which the customer can recharge Rs.75 Top-up voucher for free calling into the next month. Free calling is meant for calls terminating on local Reliance CDMA phones only.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 30
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Details of Rs 75 Topup voucher
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 31
MRP
Rs.75
Core Talktime
Rs.68.00
Promo Talktime(valid for 7 days)
Rs.7.00
Total Talktime
Rs.75
If the SIM card is removed and placed in any other handset, cutsomer stands to lose the benefit of free calling promotion from the next month. The connections would be subject to our fair use and non-commercial use policy - which prohibits the use of the connection for commercial purposes as also beyond 2000 minutes (considered as fair usage). Any violation would lead to disconnection.
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
OBJECTIVES :-
1) To study the market share of Reliance-GSM and TATA-DoCoMo.
2) To study the effect of promotional strategies adopted by Reliance- GSM and TATA-DoCoMo on customers buying behavior.
3) To know their expenditure on various Promotional Mix elements adopted by Reliance-GSM and TATA-DoCoMo.
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SCOPE OF STUDY
The scope of the study is limited solely to the Gondia Region i.e. Gondia City. Gondia is a District of Maharashtra state. Its Population is around 10 lacs.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 33
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HYPOTHESIS
1) The market share of Reliance-GSM is more than the market share of
TATA-DoCoMo.
2) Promotional strategy of Reliance-GSM is more effective than TATA-
DoCoMo.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 34
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RESEARCH METHODOLOGY :-
Research Methodology is nothing but the various methods adopted to achieve the desired goal. As research is systematic investigation knowledge gained by research methodology is soundly based, while also being exact and factual. The guiding principles, all through this process, have been our interpretation of result.
Every marketer needs research. Marketing researcher engage in a variety of activities, ranging from market potential and market studies, to assessments of customer satisfaction and purchase behavior, to study of pricing, distribution and promotion activity.Here both Primary and secondary methods are used for collection of data.
PRIMARY DATA : The primary data are those which are collected afresh and for the first time, and thus happens to be original in character. We can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interview. There are several methods of collecting primary data, but in this research work primary data collected by using questionnaire.SECONDARY DATA :
Secondary data means data that are already available i.e. they refer to the data which have been already been collected and analysed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. Secondary data may either be published data or unpublished data. In this research work, secondary data collected through the
websites (Internet) Journals Company manual and booklets, etc
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 35
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Questionnaire Design/ Formulation
We have used both Open ended and close ended questions.
The users are interviewed through structured questionnaire.
Sample element/ unit :- we have interviewed 20 customers of each GSM services.
Extent: - Gondia Region
Sampling technique :- Non probability sampling technique (convenience sampling).
Sample size - [for each GSM service]
Customers : 20
Retailers : 20
Dealers : 02
Sales executive : 01
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 36
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FACTS AND FINDINGS :
Tata-DoCoMo is the mobile company which has brought the new revolution in the mobile Industry by starting an innovative tariff plan of 1 paisa/sec [Local/STD/Roaming].This made all the other mobile companies like Reliance-GSM to start a new attractive tariff plan similar to as that of Tata-DoCoMo’s plan.
In the very beginning , when Tata-DoCoMo has started its new plan of 1 p/sec ,Tata-DoCoMo has cap
Reliance communication had never hired any Bran-Ambassador ever before year 2009. It is only in year 2009; Hritik Roshan has been made Brand-Ambassador for first time.
Tata-DoCoMo hasn’t hired any Brand-Ambassador up till now.
Reliance Communication company believes more on mouth publicity than the other promotional tools. But it is also using all type of promotional tools for promoting its products (plans and services).
Reliance-GSM is giving more care towards their C-sat [i.e. customer satisfaction] service, by which they collects the problems or queries of customers and then they try to solve it as early as possible.
DATA ANALYSIS AND INTERPRETATION
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 37
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Data Collected from Customers :-
AGE GROUP :-
Interpretation : The above graph shows that the number of customers of Reliance GSM and
Tata-DoCoMo that belongs to which Age Group [in years] .
OCCUPATION :
Interpretation : Above Graph shows the Occupatin of various customers of Reliance GSM
and Tata DoCoMo, to which they belong to.
ANNUAL INCOME :
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 38
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Interpretation : Above graph shows the Annual Income Distribution of the customers of
Reliance GSM and Tata-DoCoMo to which they belong to.
(1) How many mobile phones /connections do you have?
Interpretation : Above Graph shows the number of Mobile Phones that each customers of
Reliance GSM and Tata-DoCoMo, from whom the response was collected , are using now.
(2) Which of the following mobile services have you been using now ?
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 39
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Interpretation : From the above Two pie-charts , it is seen that the various customers of
Reliance GSM and Tata-DoCoMo are also using the various other mobile services along with
Reliance GSM or Tata-DoCoMo GSM Service.
(3)Which Srevice Plan are you using now?
Interpretation : From the above two pie- charts it is seen that the customers of Reliance
GSm and Tata-DoCoMo, from whom the response was collected, all are using Pre-paid GSM
service .
(4) How long have you been using Reliance–GSM/ TATA-DoCoMo service from ?
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 40
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Interpretation : Above graph shows the time period from which the customers of Reliance
GSM and Tata-DoCoMo are using the GSM service .
(5) How would you rate your overall level of satisfaction ?
Interpretation : The above graph shows the response about the level of satisfaction that the
customers of Reliance GSM or Tata-DoCoMo have experienced after the use of their
respective GSM service. Out of the total respondents / users of Tata-DoCoMo, 25% are
Highly satisfied ,40% are somewhat satisfied 30% are neutral i.e. they are neither satisfied
nor dis-satisfied, 5% are somewhat dissatisfied and none of them are highly dissatisfied.
Out of the total respondents / users of Reliance GSM, 10% are Highly satisfied ,50% are
somewhat satisfied 15% are neutral i.e. they are neither satisfied nor dis-satisfied, 15% are
somewhat dissatisfied and 10% are highly dissatisfied.
(6) How do you rate Reliance –GSM / TATA-DoCoMo on the following attributes :
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 41
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Interpretation : The above two graph shows the response of the customers of Both
Reliance GSM or Tata-DoCoMo according to various attributes .They have to rate the GSM
service,which they are using, according to these attributes.
(7) How do you rate Reliance –GSM / TATA-DoCoMo in comparision to other companies
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 42
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
that offer the same service?
Interpretation :
The above graph shows the response of the various customer of Reliance GSM and
Tata-DoCoMo , in comparision with the other GSM service provider, which offers or
provides the same services to their customers as Reliance GSM or Tata-DoCoMo is
providing to their customers .
Out of the total Relince GSM users / respondents , 40% users think that Relince GSM
provide services of same level, 40% think that Relince GSM provide services of somewhat
higher level,20% users think that level of services is somewhat lower as compaired to
other companies which provide same services.
Out of the total Tata-DoCoMo users / respondents, 20% users think that Tata-
DoCoMo provide services of same level, 55% think that Tata-DoCoMo provide services of
somewhat higher level,5% users think that level of services is somewhat lower and 20%
user think that Tata-DoCoMo provides services of much higher level as compaired to other
companies which provide same services.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 43
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(8) Have you ever recommended services of Reliance –GSM / TATA-DoCoMo to other people?
Interpretation : Above graph shows that out of the total respondents of Reliance GSM, 5%
have never recommended Reliance GSM service, 35% have recommended once or twice
and 60% have recommended several times to other peoples about the Reliance GSM
service. And out of the total respondents of Tata-DoCoMo, 5% have never recommended,
35% have recommended once or twice and 60% have recommended several times to other
peoples about the Tata-DoCoMo service.
(10) How did you come to know about this service ?
Interpretation : From the above graph, Out of all respondents of Reliance GSM , 60 % user
came to know about Reliance GSM service through T.V.Advertisements,15 % through News
paper advt., 5 % through Posters, 5 % through Banners and rest of 5% thorugh other
media/sources.
Out of all respondents of Tata-DoCoMo, 70 % user came to know about
Reliance GSM service through T.V.Advertisements, 5 % through News paper advt., 5 %
through Posters, 10 % through Banners and rest of 5 % thorugh other media/sources.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 44
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(11) Which plan / scheme of Reliance-GSM do you like more ?
Interpretation : From the above Pie –Chart, it is seen that 50 % respondents like 1
paisa/sec. plan, 25 % respondents like 50 p/min plan, 15 % like Rs. 1/3min [Rs.37 plan],
10 % like 20 p / min [Rs. 27 plan] .
(12) Which plan / scheme of TATA-DoCoMo do you like more ?
Interpretation : From the above Pie –Chart, it is seen that 55 % respondents like 1
paisa/sec. plan, 5 % respondents like Rs.99 plan, 5 % like Rs.786 plan, 10 % like Rs. 25
plan[special juice-up pack] ,15 % like Rs.29. plan[night pack], and 10 % like some other
plan.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 45
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(13) Whose promotional activity is more effective among these two ?
Interpretation : The above graph shows the response of the customers of Reliance GSM and
Tata-DoCoMo . From the graph , according to the Reliance GSM Users, only 40 % users
think that Tata –DoCoMo’s promotional strategy is more effective and rest of 60 % users
think Reliance GSM’s promotional strategy is more effective. According to the Tata-DoCoMo
Users, only 80 % users think that Tata –DoCoMo’s promotional strategy is more effective
and rest of 20% users think Reliance GSM’s promotional strategy is more effective.
(14) Which, according to you, promotional activity of Reliance –GSM / TATA-DoCoMo is
more effective?
Interpretation : From the above graph, according to Reliance GSM users/ respondents, 70
% users think Advertising is more effective promotional activity , 10% think about sales
promotion, 10 % about personal selling, 5 % about publicity and rest 5% about other
activities like canopy, etc.and none about personal selling. According to Tata-DoCoMo
users/ respondents, 80 % users think Advertising is more effective promotional activity ,
15% think about sales promotion, 5 % about personal selling, rest 5% about other
activities like canopy, etc. and none about publicity.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 46
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(15) What do you look for while buying a mobile/ GSM service ?
Interpretation : From the above graph, out of all respondents of Reliance GSM , 65% users
look for reasonable plans, 30% look for service/ features , 5% look for service provider
And out of all respondents of Tata-DoCoMo, 70% users look for reasonable plans, 20% look
for service/ features , 5% look for service provider and rest of 5% respondents look for
other attributes.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 47
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Data Collected from Retailers :-
(1) Do you provide more than one GSM mobile Service for customers ?
Interpretation : From the above Pie –chart , it is clear that all the retailers in Gondia region,
from whom the responses are collected, are providing more than one GSM mobile service
to the customers. in Gondia region.
(2) Which GSM service do you prefer more for sale to the customers ?
Interpretation : From the above Pie –chart, it is seen that out of all the respondents
(Retailers) 55 % Retailers prefers Reliance GSM for sale to the customers , 30 % prefers
Tata-DoCoMo and rest 15 % prefers othre GSM services for sale to the customers.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 48
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(3) What is the percentage expenditure on the promotional activities, mentioned below,
used by Reliance GSM / Tata-DoCoMo to promote GSM service ?
Interpretation : From the above graph ,according to the respondents(retailers), Tata-
DoCoMo has to pay 25% on advertising, 30% on Sales promotion, 20 % on personal selling,
5% on publicity, 10 % on public relation, 5% on Direct mail and rest 5% on other activities
like canopy, etc. And Reliance GSM has to pay 15% on advertising, 15 % on Sales
promotion, 25 % on personal selling, 10% on publicity, 15 % on public relation, 10% on
Direct mail and rest 10% on other activities like canopy, etc.
(4) When does the company use such promotional activities ?
Interpretation : From the above graph, it is seen that Reliance GSM company uses
promotional activities 60% for all round the year, 30 % during or before the festival
seasons and 10 % for other occasions. And Tata-DoCoMo company uses promotional
activities 80% for all round the year, 20 % for other occasions,but never uses during or
before the festival seasons.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 49
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(5) According to you which promotional activity is more effective to increase sales ?
Interpretation : From the above graph, according to respondents, for Tata-DoCoMo
T.V.advertisement is 55 % effective, News paper advertisement is 15 % effective, banners/
Hordings are 10 % effective, poster and pamphlets each are 5 % effective and other tools
like canopy, etc. are 10 % effective. And for Reliance GSM T.V.advertisement is 50 %
effective, News paper advertisement is 20 % effective, banners/ Hordings are 5 % effective,
poster and pamphlets each are 5 % effective and other tools like canopy, etc. are 15 %
effective.
(6) Are you satisfied with the promotional activities adopted by the company ?
Interpretation : from the above graph, it is seen that all the retailers of Reliance GSM and
Tata-DoCoMo are satisfied with the promotional activities adopted by these two
companies.
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(7) Do you suggest any change / modification in the Promotional strategies adopted by the
company ?
Interpretation : From the above graph, it is seen that Out of all the Reliance GSM Retailers
50% have not given any suggestion for modification in the promotional strategies adopted
by the company and rest 50 % of respondents are not in position to say anything.
(8) What type of added benefits are given by the company to you ?
Interpretation : Form the above Pie-chart , it is seen that Both Reliance and Tata-DoCoMo
GSM Service are giving added benefits to their retailers in terms of fixed
commission ,Prizes or awards and Free Foreign Tours depending upon the Quarterly sales
target achived.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 51
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(9) Whether it is beneficial / motivational for you ?
Interpretation : From the above Pie-chart, it is seen that all the respondents are motivated
by the added benefits given by the Reliance GSM and Tata-DoCoMo company to their
Retailers.
(10) Can it affects the sale of GSM-Service ?
Interpretation : From the above Pie-chart, it is seen that the sales is affected by added
benefits i.e. Sales get increased because of the added benefits given by the Reliance GSM
and Tata-DoCoMo company to their Retailers .
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 52
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Data Collected from Dealers :-
(1) What is your monthly sales target [no. of cards or rupees ] in gondia ?
Interpretation : From the graph , it is seen that the monthly sales target for Reliance GSM
Dealers is of 200 cards and foa Tata-DoCoMo Dealers target is of 250 cards.
(2) Was the monthly sales target for each month in past achieved in gondia Region ?
Interpretation : From the above graph, it is seen that monthly sales target by the dealers of
both Reliance GSM and Tata-DoCoMo are achieved in past months.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 53
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(3) What is the percentage expenditure on the promotional activities, mentioned below,
used by the Company to promote GSM service ?
Interpretation : Form the above graph, the percentage expenditure on various promotional
activities by Reliance GSM and Tata-DoCoMo , according to Dealers is given.From graph,
Tata-DoCoMo has to pay 30% on advertising, 20% on Sales promotion, 15 % on personal
selling, 15% on publicity, 10 % on public relation, 5% on Direct mail and rest 5% on other
activities like canopy, etc. And Reliance GSM has to pay 15% on advertising, 15 % on Sales
promotion, 25 % on personal selling, 10% on publicity, 15 % on public relation, 5% on
Direct mail and rest 15% on other activities like canopy, etc.
(4) When does the company use such promotional activities ?
Interpretation : From the above graph, according to the Dealers,both the company uses the
promotional activities not only on all round the year, but also during the special festival
seasons like Deepawali . Both the companies also use these at that time when company
launches new schemes in between any month .
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 54
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(5) According to you which promotional activity is more effective to increase sales ?
Interpretation : From the graph, according to the dealer of Reliance-GSM, T.V. Advt. is 50%
effective,News-Paper Advt. is 20% , Banners/Hoardings, Posters and Pamphlets each are
5% effective respectively and other tools like canopy, mouth publicity are 15% effective to
increase sales. According to the dealer of Tata-DoCoMo, T.V. Advt. is 55% effective,News-
Paper Advt. is 15% , Banners/Hoardings is 10%, Posters and Pamphlets each are 5%
effective respectively and other tools like canopy, mouth publicity are 10% effective to
increase sales.
(6) Are you satisfied with the promotional stratergies adopted by the company ?
Interpretation : From the graph, it is clear that dealers of both Reliance-GSM and Tata-
DoCoMo are satisfied with the promotional strategies adopted by their respective
companies.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 55
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Data Collected from Sales Executives :-
(1) What is your monthly sales target [in no. of persons or rupees ] in gondia ?
Interpretation : Form the graph, Monthly sales Target of Reliance-GSM in Gondia region is of
400 GSM cards and for Tata-DoCoMo is 500 Gsm cards.
(2) Was the monthly sales target for each month in past achieved in gondia Region ?
Interpretation : From the above graph, it is seen that monthly sales target are achieved in
past months by both Reliance GSM and Tata-DoCoMo’s Sales Executives, respectively, in
Gondia Region .
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 56
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(3) What is the percentage expenditure on the promotional activities, mentioned below,
used by the Company to promote GSM service ?
Interpretation : Form the above graph, the percentage expenditure on various promotional
activities by Reliance GSM and Tata-DoCoMo , according to Dealers is given.From graph,
Tata-DoCoMo has to pay 30% on advertising, 20% on Sales promotion, 15 % on personal
selling, 15% on publicity, 10 % on public relation, 5% on Direct mail and rest 5% on other
activities like canopy, etc. And Reliance GSM has to pay 15% on advertising, 15 % on Sales
promotion, 25 % on personal selling, 10% on publicity, 15 % on public relation, 5% on
Direct mail and rest 15% on other activities like canopy, etc.
(4) According to you which promotional activity is more effective to increase sales ?
Interpretation : From the graph, according to the Sales Executives of Reliance-GSM, T.V.
Advt. is 50% effective,News-Paper Advt. is 20% , Banners/Hoardings, Posters and
Pamphlets each are 5% effective respectively and other tools like canopy, mouth publicity
are 15% effective to increase sales. According to the dealer of Tata-DoCoMo, T.V. Advt. is
55% effective,News-Paper Advt. is 15% , Banners/Hoardings is 10%, Posters and
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 57
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Pamphlets each are 5% effective respectively and other tools like canopy, mouth publicity
are 10% effective to increase sales.
(5) Are you satisfied with the promotional stratergies adopted by the company ?
Interpretation : From the graph, it is clear that Sales Executives of both Reliance-GSM and
Tata-DoCoMo are satisfied with the promotional strategies adopted by their respective
companies.
(6) Do you think the company has to modify its existing sales policy ?
Interpretation : From the graph, it is clear that Sales Executives of both Reliance-GSM and
Tata-DoCoMo ,respectively wants to modify their respective companies existing sales
policies.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 58
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Limitations of the Research :-
Carrying the survey was a general learning experience for us but we also faced some problems, which are listed here:
• The market of Telecommunication is too vast and it is not possible to cover each and every customers and dealers in the available short span of time.
• Respondents were reluctant to discover complete and correct information.
• Some of the respondents were using the service first time and they were not able to properly understand the terminology used in the questionnaire.
• Due to human behaviour information may be biased.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 59
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
CONCLUSION :-
Reliance Mobile is spending very less in various promotional activities. It has more belief on mouth publicity than any other tools of promotion. Mouth publicity is more effective and it also help to save the cost.
Tata Docomo had taken up social media to promote their brand online. Social media is one of their strategies for marketing their products and creating an online presence.But they have also invested heavily into outdoor, print and television media.
Tariff plans of Reliance-GSM service is more attractive than Tata-DoCoMo’s plans.
Reliance –GSM is taking more care for solving customers problems and querries than Tata-DoCoMo.
Thus Promotional strategy adopted by Reliance-GSM is more effective than TATA-DoCoMo’s promotional strategy.
The market share of Reliance-GSM is more than the market share of TATA-DoCoMo.The ratio of Market share of reliance GSM and Tata-DoCoMo is approximately 6 : 4.
From the overall study, it is seen that Reliance-GSM service is better
than Tata-DoCoMo GSM service.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 60
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RECOMMENDETIONS :-
Tata-DoCoMo have invested heavily into outdoor, print and television media. But Tata-DoCoMo has never hired any brand-ambassader up till now. So if they hires any brand-ambassader, it may affect its sales and hence they may get an opportunity to gain the market position.
Tata-DoCoMo should improve its customer care services.
Tata-doCoMo and Reliance-GSM both should opt for new scheme of giving “ Sim cards ” free of cost to the new customers.
Both the GSM services should also provide one day free talktime in a month to the customers.
Tata-DoCoMo has to improve its Network service in the rural areas also to give more coverage to the customers.
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 61
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
ANNEXURE
QUESTIONNAIRE [for customers]
Name of Customer :…………………………………………………………………..…..
Age : Younger than 18years 18 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 – 64 years
65 years or older
Occupation : Student Self-employed Employed full-time Employed Part Time Unemployed Retired
Annual Income :
None Below 10,000 Rs. 10,000 – 1 Lac Rs.
1 Lac – 2 Lac Rs. 2 Lac – 3 Lac Rs. 3 Lac Rs.or more
(1) How many mobile phones /connections do you have?
01 02 03 04 more than 04, please specify………
(2) Which of the following mobile services have you been using now ?
Airtel GSM Vodafone GSM BSNL GSM TATA CDMA TATA- DoCoMo GSM Reliance-CDMA
Reliance-Gsm Idea GSM Other, Please Specify………………………………………
(3)Which Srevice Plan are you using now?
Pre-Paid Post-Paid Both
[ Please cut the name of the GSM service provider/ operator , whose service you are not using ]
(4) How long have you been using Reliance –GSM / TATA-DoCoMo service from ? Last 6 months last 1 year last one and half years
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A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(5) How would you rate your overall level of satisfaction ?
Highly satisfied Somewhat satisfied Neutral Somewhat dissatisfied Highly Dissatisfied
(6) How do you rate Reliance –GSM / TATA-DoCoMo on the following attributes:
Well Below Below Average Above Well Above Average Average Average Average (a) Customer service Experience
(b) Professionalism
(c) Quality of Service
(d) Understanding of Customer need
(e) On-Time Delivery of Services
(10) How do you rate Reliance –GSM / TATA-DoCoMo in comparision to other companies that offer the same service? Much higher Somewhat higher Same/ Neutral
Somewhat lower Much lower
(11) Have you ever recommended services of Reliance –GSM / TATA-DoCoMo to other people ? No, never recommended Have recommended once or twice Have recommended several times
(12) Do you have any suggestion for improvements ? ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..……….
(13) How did you come to know about this service ? News paper advertisement T.V.Advertisements Pamphlets Posters Banners Other, please specify _____________________
(14) Which plan / scheme of Reliance-GSM do you like more ? [For Reliance-GSM user only]
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 63
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1 p/sec [for local & std] 50 p/min [for local & std] 1 Rs./ 3 min [Rs.37 plan] 20 p/min [Rs.27 plan]
Other,please specify___________________________________________
(15) Which plan / scheme of TATA-DoCoMo do you like more ? [For TATA-DoCoMo user only] 1Paise per second Plan of Rs.99/- Plan of Rs.786/-
Rs.25[special juice up pack] Rs.29[night pack- 1p/6sec] Rs.49[1p /2 sec]
Other,please specify___________________________________________
(16) Whose promotional activity is more effective among these two ? TATA-DoCoMo Reliance-GSM
(17) Which, according to you, promotional activity of Reliance –GSM / TATA-DoCoMo is more effective? Advertising Sales Promotion Personal selling Publicity Public Relation Direct Mails
Other, please specify__________________________________
(18) What do you look for while buying a mobile/ GSM service ?
Reasonable Plans Services/features Service Provider/ Operator
Other, please specify____________________________________
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 64
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Questionnaire [for Dealers]Dealer Name : _____________________________________________Company Name : _____________________________________________Address : _____________________________________________Contact No. : ____________________________________________Gender : Male Female Age : ________________
(1) What is your monthly sales target [no. of persons or rupees ] in gondia ? ________________________________________________________
(2) Was the monthly sales target for each month in past achieved in gondia Region ? Yes No If No, then mention target achievement in % ______________________
(3) Which promotional activities are used by the Company to promote GSM service ? Advertising Sales Promotion Personal selling Publicity Public Relation Direct Mails Other, please specify__________________________________
(4) What is the percentage expenditure on the promotional activities, mentioned below, used by the Company to promote GSM service ? (a) Advertising __________ (b) Sales Promotion _____________ (c) Personal selling __ _______ (d) Publicity ______________ (e) Public Relation __________ (f) Direct Mails ______________
(5) Which of the following media does the company use for such promotional activity? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________
(6) When does the company use such promotional activities ? All round the year During festival season Before the season [please, mention month & duration] ______________ Other,please specify___________________________
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 65
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
(7) According to you which promotional activity is more effective to increase sales ? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________
(8) Are you satisfied with the promotional activities adopted by the company ? Yes No
(9) Which type of promotional materials are provided by the company to you ? (a) ______________________ (b) _______________________ (c) ______________________ (d) _______________________ (e) ______________________ (f) ________________________
(10) Do you suggest any change / modification in the Promotional strategies adopted by the company ? Yes No If yes, then specify______________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________
(11) What type of added benefits are given by the company to you ? fixed commission on sales and collection
Prize/ awards etc.
Free Foreign Tour / Consession on Tour
(12) Whether it is beneficial / motivational for you ? Yes No
(13) Can it affects the sale of GSM-Service ? Yes No
(14) Which plans are mostly preferred by the customers of company ?
____________________ __________________________
__________________ __ __________________________________
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 66
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
Questionnaire [for retailers]
Retailers Name : _____________________________________________Contact Number : _____________________________________________Address : _____________________________________________ ____________________________________________Gender : Male Female Age : ________________
(1) Do you provide more than one GSM mobile Service for customers ? Yes No
(2) Which GSM service do you prefer more for sale to the customers ? [ Write name of GSM service in accordance with the preference given by you ] Reliance TATA-DoCoMo Other
------------------------ Questions to be filled by Reliance-GSM Retailers Only -------------------------(3) Which promotional activities are used by the Reliance Communication to promote GSM service ? Advertising Sales Promotion Personal selling Publicity Public Relation Direct Mails Other, please specify__________________________________(4) What is the percentage expenditure on the promotional activities, mentioned below, used by Reliance Communication to promote GSM service ? (a) Advertising ______________ (b) Sales Promotion _____________ (c) Personal selling ____________ (d) Publicity _______________ (e) Public Relation _____________ (f) Direct Mails _______________(5) Which of the following media does the company use for such promotional activity? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________
(6) When does the company use such promotional activities ?
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 67
A COMPARATIVE STUDY OF PROMOTIONAL STRATEGIES ADOPTED BY RELIANCE–GSM & TATA–DOCOMO ( IN GONDIA REGION )
All round the year During festival season Before the season [please, mention month & duration] ______________ Other,please specify___________________________
(7) According to you which promotional activity is more effective to increase sales ? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________
(8) Are you satisfied with the promotional activities adopted by the company ? Yes No
(9) Which type of promo tional materials are provided by the company to you ? (a) ________________________ (b) __________________________
(c) ________________________ (d) __________________________
(e) ________________________ (f) ___________________________
(10) Do you suggest any change / modification in the Promotional strategies adopted by the company ? Yes No If yes, then specify______________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________
(11) What type of added benefits are given by the company to you ? fixed commission on sales and collection Prize/ awards etc. Free Foreign Tour / Consession on Tour
(12) Whether it is beneficial / motivational for you ? Yes No
(13) Can it affects the sale of GSM-Service ? Yes No
(14) Which plans are mostly preferred by the customers of company ?
______________________ ________________________
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 68
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______________________ ________________________
---- Questions to be filled by TATA-DoCoMo-GSM / Reliance GSM Retailers Only -----
(15) Which promotional activities are used by the TATA-DoCoMo to promote GSM service ? Advertising Sales Promotion Personal selling Publicity Public Relation Direct Mails Other, please specify__________________________________
(16) What is the percentage expenditure on the promotional activities, mentioned below, used by Reliance Communication to promote GSM service ? (a) Advertising ________ (b) Sales Promotion _________
(c) Personal selling ________ (d) Publicity _________
(e) Public Relation ________ (f) Direct Mails _________
(17) Which of the following media does the company use for such promotional activity? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________(18) When does the company use such promotional activities ? All round the year During festival season Other,please specify___________________________
(19) According to you which promotional activity is more effective to increase sales ? Brouchers Toruns Banners Posters Strips T.V. Advertisements Net- campaign News-Paper advertisements Other, please specify__________________________________(20) Are you satisfied with the promotional activities adopted by the company ? Yes No
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 69
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(21) Which type of promotional materials are provided by the company to you ? (a) ______________________ (b) ___________________________
(c) _______________________ (d) __________________________
(e) _______________________ (f) ___________________________
(22) Do you suggest any change / modification in the Promotional strategies adopted by the company ? Yes No
If yes, then specify______________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
(23) What type of added benefits are given by the company to you ? fixed commission on sales and collection Prize/ awards etc. Free Foreign Tour / Consession on Tour
(24) Whether it is beneficial / motivational for you ?
Yes No
(25) Can it affects the sale of GSM-Service ?
Yes No
(26) Which plans are mostly preferred by the customers of company ?[for Tata-DoCoMo users
only]
1 paisa per second Plan of Rs.99/- Plan of Rs.786/-
Plan of Rs.25/- Plan of Rs.49/- Plan of Rs.140/-
Plan of Rs.29/- [Night Pack] Plan of Rs.55/-
(27) Which plan / scheme of Reliance-GSM do you like more ? [For Reliance-GSM user only]
1 p/sec [for local & std] 50 p/min [for local & std]
1 Rs./ 3 min [Rs.37 plan] 20 p/min [Rs.27 plan]
Other,please specify___________________________________________
(28) What does the customers look for while buying a mobile/ GSM service ?
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 70
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Reasonable Plans Services/features Service Provider/ Operator
Other, please specify____________________________________
BIBLIOGRAPHY
Websites : -
1. www.trai.gov.in
2. http://images.google.co.in/images
3. www.google.com
4. www.rcom .co.in
5. www.tatadocomo.com
6. www.nttdocomo.com
Nilesh Meshram [ MBA IVth semester ], D.M.T.R., N.M.D College, Gondia Page 71