A Comparison of the Effectiveness of the advertisement campaigns of Vodafone and Idea

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1 A Comparison of the Effectiveness of the advertisement campaigns of Vodafone and Idea Authors: Ms. Shushmita Sagar, Mr. Chintan Mehta, Ms. Sandhya Sharma Abstract This research paper highlights the comparative effects of advertisements of Vodafone and Idea. The study focused on overall comparison of the two companies with reference to the approximate total number of subscribers, their average bill amounts and overall satisfaction levels with the service providers. The study was conducted through a primary survey, the instrument being a questionnaire. The survey was limited to the city of Mumbai. The hypotheses were tested using statistical tools such as t test, z test, Population Proportion and ANOVA Two factor without Replication. Introduction Most organizations, large and small, that rely on marketing to create customer interest are engaged in consistent use of advertising to help meet marketing objectives. Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the third largest mobile network operator in India after Airtel and Reliance Communications by subscriber base. It is based in Mumbai, Maharashtra. It has approximately million customers as of December Vodafone s aggressive addition of mobile customers and a more stable pricing environment by the end of fiscal 2011 led to revenues of Vodafone India rising by per cent to $6.16 billion for the fiscal year ended 31st March 2011 compared to $4.97 billion in the previous fiscal. The operator had million connections in India as of March 31, 2011, of which 95.3 per cent are prepaid. After the launch of ZooZoo ad campaigns Vodafone has added a total of 3.68 million GSM subscribers which is the highest number of new mobile subscriber s additions in the month of March Idea Cellular, commonly referred to as Idea, is an Indian mobile network operators based in Mumbai, India. In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh. When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and was later rebranded as IDEA. Idea Cellular, the country s fourth largest operator by subscriber base, now has operations across all the 22 telecom circles. The GSM operator had a user base of about 116 million and per cent market share as of October 30,

2 Idea Cellular has been in the front runner in its 3G campaign since its inception and has always brought out new ways to showcase their products and service. In the recent past many catchy ideas have been transformed into ads. From the weighty to the cutesy, Idea Cellular s advertising has cut a wide arc, going from What an Idea, Sirji! to You re my pumpkin pumpkin, hello honey bunny. This jingle is on everyone s lips, having become quite a rage across the country, just as the earlier campaign became a big success. On December 1, the Aditya Birla group company launched its new ad campaign Idea Rings All India after running a high-intensity teaser campaign for three days. The jingle caught on much faster than expected, with many humming it and some making it their Facebook and status. Background This research paper presents part of the findings of research conducted on Effectiveness of advertisement campaigns of Vodafone versus Idea. This project was undertaken in order to try to better understand the buying behavior of the respondent concerns in a selected frequency and to search for commonalities and differences in these perceptions. Research Objectives The objectives of the study are as follows: To study the market of Vodafone v/s Idea on big scale telecommunication sector. To identify the effectiveness of advertisement of Vodafone v/s Idea To identify the reasons why people prefers a particular brand amongst many. To know how the company has been successful in encountering the aggressive marketing strategies of competitors Research Methodology An initial exploratory secondary research was carried out through internet based sources. The primary research employed the use of a structured questionnaire for the survey. The sample size was 119 and sampling technique was a non-probabilistic judgment type. The questionnaire was administered via personal interviews and and included basic questions about how people conceptualize about the brands, how people relate to the brands. In addition, the questionnaires for both the brands incorporated a different issue that is currently salient. Although quite different from one another, each of these issues shared the characteristics of complexity and perceptional difficulty. Personal interview and mail responses were taken into consideration for qualitative analysis to identify patterns in the responses. Data analysis was done with help of Hypothesis using t-test, z-test using Population Proportion and Two-way ANOVA without Replication. Duration of study was one week. The present research offers a preliminary attempt to identify key similarities and differences in the sample. 2

3 Proposed Hypothesis 1)Hypothesis: T tail test H o : Average monthly bill amount of respondent using Vodafone is 1000 H a : Average monthly bill amount of respondent using Vodafone is less than 1000 H o : µ=1000 H a : µ<1000 2)Hypothesis: Z test using Population Proportion test H o : Vodafone subscribers account is equal to 45% of the total number of subscribers H a : Vodafone subscribers account for less than 45% of the total number of subscribers H o : P = 45% H a : P < 45% 3)Hypothesis: ANOVA (two way) H o (features) = m1=m2=m3=m4=m5=m6=m7=m8=m9 all the components are same. H a (features) = At least one of the features is different. H o (levels) = m1=m2=m3=m4=m5=m6=m7=m8=m9 both the factors are same. H a (levels) = At least one of the level is different Hypothesis Testing 1)Hypothesis: T- Test. N=null H o :µ=1000 average montly bill amount of respondent using Vodafone is 1000 A=Alternate H a :µ<1000 average montly bill amount of respondent using Vodafone is less than 1000 T=test It is a T test because population std dev is not known T=tail A=alpha 0.05 R=Rejection region 0.05 C=critical 1.67 O=observed P=p value 0.01 It is left tail A/R Null hypothesis is been rejected because T observed comes in rejection region. Which proves that the average montly bill amount of respondent using Vodafone is less than

4 t-test: Paired Two Sample for Means Variable 1 Variable 2 Mean Variance 333, Observations Pearson Correlation #DIV/0! Hypothesized Mean Difference - Df t Stat (2.77) P(T<=t) one-tail 0.00 t Critical one-tail 1.67 t Critical two-tail )Hypothesis: Z test using population proportion. Null Hypothesis H o : p = 45% Alternate Hypothesis H a : p < 45% Test Z test with proportion test Tails Left tails Alpha 5% Rejection Reject 0.05 Critical (1.64) Observed (9.34) P-value P-value Accept/Reject. Z critical > Z observed We Accept the null hypothesis. Which proves that Vodafone subscribers account is equal to 45% of the total number of subscribers N x P q p' Alpha confidence probability Z Critical Z observed (1.64) (9.34) 4

5 3)Hypothesis: Anova: Two-Factor Without Replication Call rates Sms Scheme Mms Scheme Internet Scheme 3G charges National Roaming International Roaming Group Benefit Network satisfied level Unsatisfied level ANOVA Source of Variation SS df MS F P-value F crit Rows 40, , Columns 8, , Error 12, , Total 61, Null Hypothesis Alternate Hypothesis Test A/R H o : u1=u2=u3=u4=u5=u6=u7=u8=u9 H o (Feature) : All the components are same H o (Levels) : Both the factor are same H a (Feature) : At least one factor is different H a (Levels) : At least one factor is different Anova Accepting the null hypothesis that the entire components are same for the features are same. Rejecting the null hypothesis we accept for the level that at least one feature is different. thus we reject the null hypothesis. In the rows i.e. satisfaction & unsatisfaction level the F observed > F critical & P value < alpha accept the null hypothesis. In the columns i.e. features of the brand the F observed < F critical & P value > alpha thus we 5

6 Conclusion It was observed that majority of the respondent using Vodafone has the average bill amount of approximately Rs 1000 per month. The proportion of Vodafone subscribers is equal to 45% of the total number of subscribers. Based on preferences of the user, selection of sim card was in favor of benefits such as call rates, sms services, group benefits, etc as compared with other parameters across both the brands. Limitations Time constraints, sample size, respondent bias and geographical limitations are concerns for the applicability of the findings to the entire population. Most of the study was conducted through online questionnaires and personal interview being a part of the research study. References Ken Black - Business Statistics: Contemporary Decision Making, Publisher: Wiley. Roy, A. and Das, S.K; Assessment of Impact of Advertising campaign of Vodafone on the viewers, ZENITH International Journal of Business Economics & Management Research, Vol.2 Issue