bbm project

SALES & PROMOTION STRATEGY INDEX

Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI ‐ i ‐ DEPT. OF MANAGEMENT

TABLE OF CONTENTS

CHAPTER CONTENTS PAGE NO

1 1.1 Introduction

1.2 Two levels of marketing

1.2.1 Strategic marketing

1.2.2 Operational marketing

1.3 Four P’s

1.3.1 Product

1.3.2 Pricing

1.3.3 Promotion

1.3.4 Placement

1.4 Sales promotion

1.5 Marketing communication

1.5.1 Advertising

1.5.2 Personal selling

1.5.3 Sales promotion

1.5.4 Public relation

1.5.5 Direct marketing

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2

2.1 Importance

2.2 Objectives

2.3 Information source

2.3.1 Primary Data

2.3.2 Secondary Data

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Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI ‐ ii ‐ DEPT. OF MANAGEMENT

2.4 Sampling

2.5 Sampling technique

2.6 Limitation

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3 Profile of the company

3.1 History

3.2 Company developments

3.3 Company Achievements

3.4 Company Present Position

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4 & 5 Data Analysis and Interpretation 33

6 6.1 Summary

6.2 Findings

6.3 Suggestions

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51

I. Bibliography 52

I. Questionnaire 53


Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI ‐ iii ‐ DEPT. OF MANAGEMENT

LIST OF TABLES

TABLE NO CONTENTS PAGE NO

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USING OF VIRGIN MOBILE

ADVERTISEMENT DETAILS

REASONS TO PURCHASE

REASONS FOR SATISFACTION

NETWORK QUALITY

QUALITY OF CUSTOMER CARE

FRIENDS & FAMILY OFFERS

MORE HELPFUL VIRGIN SERVICES

OFFERS

AWARE OF PREPAID INCOMING CALLS

MOST FAVOURABLE FACTOR

MOST EFFECTIVE BRAND

WILL YOU SWITCH TO VIRGIN

RECOMMEND TO OTHERS

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Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI ‐ iv ‐ DEPT. OF MANAGEMENT

LIST OF GRAPHS

GRAPH NO CONTENTS PAGE NO

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USING OF VIRGIN MOBILE

ADVERTISEMENT DETAILS

REASONS TO PURCHASE

REASONS FOR SATISFACTION

NETWORK QUALITY

QUALITY OF CUSTOMER CARE

FRIENDS & FAMILY OFFERS

MORE HELPFUL VIRGIN SERVICES

OFFERS

AWARE OF PREPAID INCOMING CALLS

MOST FAVOURABLE FACTOR

MOST EFFECTIVE BRAND

WILL YOU SWITCH TO VIRGIN

RECOMMEND TO OTHERS

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SALES & PROMOTION STRATEGY CHAPTER-I

Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI ‐ 1 - DEPT. OF MANAGEMENT

CHAPTER-I

INTRODUCTION



INTRODUCTION:

Marketing is a societal process which discerns consumers' wants,

focusing on a product or service to fulfill those wants, attempting to move the

consumers toward the products or services offered. Marketing is fundamental to any

businesses growth. The marketing teams (marketers) are tasked to create consumer

awareness of the products or services through marketing techniques. Unless it pays

due attention to its products and services and consumers' techniques. Unless it pays

due attention to its products and services and consumers’ techniques. Unless it pays

due attention to its products and services and consumers' techniques. Unless it pays

due attention to its products and services and consumers' selling. It is also concerned

with anticipating the customers' future needs and wants, which are often discovered

through market research.

Essentially, marketing is the process of creating or directing an

organization to be successful in selling a product or service that people not only

desire, but are willing to buy.

Therefore good marketing must be able to create a "proposition" or set of

benefits for the end customer that delivers value through products or services.

A market-focused, or customer-focused, organization first determines what

its potential customer’s desire, and then builds the product or service. Marketing

theory and practice is justified in the belief that customers use a product or service

because they have a need, or because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers

(acquisition) and the retention and expansion of relationships with existing

customers (base management). Once a marketer has converted the prospective

buyer, base management marketing takes over. The process for base management

shifts the marketer to building a relationship, nurturing the links, enhancing the

benefits that sold the buyer in the first place, and improving the product/service

continuously to protect the business from competitive encroachments.



For a marketing plan to be successful, the mix of the four "Ps" must

reflect the wants and desires of the consumers or Shoppers in the target market.

Trying to convince a market segment to buy something they don't want is extremely

expensive and seldom successful. Marketers depend on insights from marketing

research, both formal and informal, to determine what consumers want and what

they are willing to pay for. Marketers hope that this process will give them a

sustainable competitive advantage. Marketing management is the practical

application of this process. The offer is also an important addition to the 4P's theory.

With in most organizations, the activities encompassed by the marketing function are

led by a Vice President or Director of Marketing. A growing number of

organizations, especially large US companies, have a Chief Marketing Officer

position, reporting to the Chief Executive Officer.

The American Marketing Association (AMA) states, "Marketing is an

organizational function and a set of processes for creating, communicating and

delivering value to customers and for managing customer relationships in ways that

benefit the organization and its stakeholders.".

Marketing methods are informed by many of the social sciences,

particularly psychology, sociology, and economics. Anthropology is also a small,

but growing influence. Market research underpins these activities. Through

advertising, it is also related to many of the creative arts. Marketing is a wide and

heavily interconnected subject with extensive publications. It is also an area of

activity infamous for re-inventing itself and its vocabulary according to the times

and the culture.



Two levels of marketing-

1) Strategic marketing

2) Operational marketing

1) Strategic marketing:

Attempts to determine how an organization competes against its competitors

in a market place. In particular, it aims at generating a competitive advantage

relative to its competitors.

2) Operational marketing:

Executes marketing functions to attract and keep customers and to

maximize the value derived for them, as well as to satisfy the customer with prompt

services and meeting the customer expectations. Operational Marketing includes the

determination of the marketing mix (4 Ps).

Four Ps- In the early 1960's, Professor Neil Borden at Harvard Business School

identified a number of company performance actions that can influence the consumer

decision to purchase goods or services. Borden suggested that all those actions of the

company represented a “Marketing Mix”. Professor E. Jerome McCarthy, also at the

Harvard Business School in the early 1960s, suggested that the Marketing Mix

contained 4 elements: product, price, place and promotion.

In popular usage, "marketing" is the promotion of products, especially

advertising and branding. However, in professional usage the term has a wider

meaning which recognizes that marketing is customer-centered. Products are often

developed to meet the desires of groups of customers or even, in some cases, for

specific customers. E. Jerome McCarthy divided marketing into four general sets of

activities. His typology has become so universally recognized that his four activity

sets, the Four Ps, have passed into the language.

The four P’s are:

Product: The product aspects of marketing deal with the specifications of the

actual goods or services, and how it relates to the end-user's needs and wants.



The scope of a product generally includes supporting elements such as

warranties, guarantees, and support.

Pricing: This refers to the process of setting a price for a product, including

discounts. The price need not be monetary - it can simply be what is exchanged

for the product or services, e.g. time, energy, psychology or attention.

Promotion: This includes advertising, sales promotion, publicity, and

personal selling, branding and refers to the various methods of promoting the

product, brand, or company.

Placement: (or distribution): refers to how the product gets to the customer;

for example, point of sale placement or retailing. This fourth P has also

sometimes been called Place, referring to the channel by which a product or

services is sold (e.g. online vs. retail), which geographic region or industry, to

which segment (young adults, families, business people), etc.

These four elements are often referred to as the marketing mix,[1] which a

marketer can use to craft a marketing plan. The four Ps model is most useful when

marketing low value consumer products. Industrial products, services, high value

consumer products require adjustments to this model. Services marketing must

account for the unique nature of services. Industrial or B2B marketing must account

for the long term contractual agreements that are typical in supply chain

transactions. Relationship marketing attempts to do this by looking at marketing

from a long term relationship perspective rather than individual transactions.

As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass,

1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it

unconsciously emphasizes the inside–out view (looking from the company

outwards), whereas the essence of marketing should be the outside–in approach".

Nevertheless, the 4 Ps offer a memorable and workable guide to the major categories

of marketing activity, as well as a framework within which these can be used.



Sales promotion:-

Promotion involves disseminating information about a product,

product line, brand, or company. It is one of the four key aspects of the marketing

mix. Sales promotion is an important component of a company's marketing

communication strategy along with advertising, public relations, and personal

selling. At its core, sales promotion is a marketing activity that adds to the basic

value proposition behind a product (i.e., getting more for less) for a limited time in

order to stimulate consumer purchasing, selling effectiveness, or the effort of the

sales force. As this definition indicates, sales promotion may be directed either at

end consumers or at selling intermediaries such as retailers or sales crews.

Sales promotion stems from the premise that any brand or service has an

established perceived price or value, the "regular" price or some other reference

value. Sales promotion is believed to change this accepted price-value relationship

by increasing the value and/or lowering the price. Familiar examples of consumer

sales promotion tools include contests and sweepstakes, branded give-away

merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free

trials, demonstrations, and point-accumulation systems.

Three issues clarify sales promotion. First, sales promotion ranks in

importance with advertising and requires similar care in planning and strategy

development. Second, three audiences can be targeted by sales promotion:

consumers, resellers, and the sales force. And third, sales promotion as a competitive

weapon provides an extra incentive for the target audience to purchase or support

one brand over another. This last factor distinguishes sales promotion from other

promotional mix tactics. For example, unplanned purchases may be directly related

to one or more sales promotion offers.

In order to understand the basic role and function of sales promotion,

one must differentiate between sales promotion and other components of the

marketing mix. Sales promotion usually operates on a short timeline, uses a more

rational appeal, returns a tangible or real value, fosters an immediate sale, and



contributes highly to profitability. The idea of contribution to profitability may be

confusing. It is simply the ratio between what is spent on a promotional mix

compared to the direct profitability generated by that expenditure. A few exceptions

to the above characteristics do exist. For example, a sweepstakes might use a very

emotional appeal, while a business-to-business ad may be very rational.

Promotion is generally sub-divided in the textbooks into two parts:

• Above the line promotion: Promotion in the media (e.g. TV, radio,

newspapers, Internet) in which the advertiser pays an advertising agency to

place the ad

• Below the line promotion: All other promotion. Much of this is intended to

be subtle enough that the consumer is unaware that promotion is taking place.

E.g. sponsorship, product placement, endorsements, sales promotion,

merchandising, direct mail, personal selling, public relations, trade shows



Marketing Communication-

Reaches large, geographically dispersed audiences, often with

high frequency; Low cost per exposure, though overall costs are high; Consumers

perceive advertised goods as more legitimate; Dramatizes company/brand; Builds

brand image; may stimulate short-term sales; Impersonal, one-way communication;

Expensive.

Most effective tool for building buyers’ preferences,

convictions, and actions; Personal interaction allows for feedback and adjustments;

Relationship-oriented; Buyers are more attentive; Sales force represents a long-term

commitment; Most expensive of the promotional tools



May be targeted at the trade or ultimate consumer; Makes use

of a variety of formats: premiums, coupons, contests, etc.; Attracts attention, offers

strong purchase incentives, dramatizes offers, boosts sagging sales; Stimulates quick

response; Short-lived; Not effective at building long-term brand preferences

Highly credible; Very believable; Many forms: news stories,

news features, events and sponsorships, etc.; Reaches many prospects missed via

other forms of promotion; Dramatizes company or product; Often the most under

used element in the promotional mix; Relatively inexpensive (certainly not 'free' as

many people think--there are costs involved)

Many forms: Telephone marketing, direct mail, online

marketing, etc.; Four distinctive characteristics: Non-public, Immediate,

Customized, Interactive; Well-suited to highly-targeted marketing efforts.

SALES & PROMOTION STRATEGY CHAPTER-II

Dr.JYOTHIRMAYI DEGREE COLLEGE, ADONI 10 DEPT. OF MANAGEMENT

CHAPTER-II

THE STUDY DESIGN



2.1 IMPORTANCE & NEED OF THE STUDY

Research methodology is away to systematically solve research problem. In

it we study the various step that are generally adopted by researcher in studying his research

problem along with logic behind them. It is necessary for a researcher to know not only the

research method/techniques but also the methodology. It may be noted, in the context of

planning & development that the significance of research lines in its quality and not in

quantity. Researcher should know how to apply particular research techniques, but they also

need to know which of these methods or techniques, are relevant and which are not, and what

would they mean and indicate and why?

“Research is common parlance refers to a search for knowledge. In fact research is an act of

Scientific investigation.”The project was divided in to the following steps.



2.2 OBJECTIVES OF STUDY

To decide objective of the study

To study the customer awareness about Virgin Mobile in Mobile Store.

To enhance the sale of Virgin Mobile in Mobile Store.

To decide research design &

application

To decide source of data collection

To decide from of data collection

To organize & collect data

To process & analyze report

To prepare the research report



To know the reason for the loss of inventory.

To analyze the customer buying behavior.

To find out the satisfaction level of the Virgin mobile customers at Mobile

Store.

To study the effect of event and promotion.

To make various suggestion on the improvement of Virgin Mobile in Mobile

Store.

1. To decide objective of the Study:-

This step is also research problem. Problem definition is the most critical part of the

research process. Research problem definition involves specifying the information

needed by management. The main objectives of the study are:

To Creating the Awareness of Hotel Pristine Inn in among Corporates in

Pune.

To find out the level of customer satisfaction with the offers, discount and

services offered by Pristine Inn.

2. To decide research design & application:-

Research design involves defining the research problem, determining how to collect

the data and from whom, establishing the way the data will be analyzed estimating

costs and the preparation of the research approach. For this study, descriptive

research was selected.



2.3 INFORMATION SOURCES

Primary Data

Secondary Data

Primary data:-

Primary data is the original data collected specifically for the problem.

Reason for selecting primary data:-

In terms of primary data a questionnaire has been used to interview desire

sample units that give accurate and up to data information as well better to research

problem.

Research approaches: - Primary data can be collected in five main ways: through

Observation, focus groups, surveys, behavioral data, and experiments.

Research instruments:- Marketing researchers have a choice of three main

research Instruments in collecting primary data:

Questionnaires: -

A questionnaire consists of questions presented to respondents for their answers.

Because of its flexibility, the questionnaire is by far the most common Instrument

used to collect primary data. Questions can be open-ended or closed-Ended.

Qualitative measures: -

Some marketers prefer more qualitative methods for gauging consumer opinion

because consumer actions do not always match their answers to survey questions.

Qualitative research techniques are relatively unstructured measurement

approaches that permit a range of possible responses, and they are a creative

means of ascertaining consumer perceptions that may other-Wise be difficult to

uncover.



Secondary data:-

Data potentially useful in solving a current problem but that were collected

for a different purpose.

Reason for selecting secondary data:-

Secondary data can be gathered quickly and inexpensively, compared to

primary data, it is clear useful to study analyzing the recent development in the

telecom industry.

Contact methods:- Once the sampling plan has been determined, the marketing

researcher must decide how the subject should be contact:

Mail questionnaire: -

The mail questionnaire is the best way to reach people who would not give

personal interviews or whose responses might be biased or distorted by the

interviewers. Mail questionnaires require simple and clearly worded questions.

Telephone interview: -

Telephone interviewing is the best method for gathering information quickly; the

interviewer is also able to clarify questions if respondents do not understand

them. The response rate is typically higher than in the case of mailed

questionnaires.

Personal interview: -

Personal interviewing is the most versatile method. The interviewer can ask

more questions and record additional observations about the respondent, such as

dress and body language. Personal interviewing takes two forms. In arranged

interviews, respondents are contacted for an appointment, and often a small

payment or incentive is offered. Intercept interviews involve stopping people at a

shopping mall or busy street corner and requesting an interview



Online interviews: -

There is increased use of online methods. There are so many ways to use the Net

to do research. In this method, researcher can include a questionnaire on its Web

site and offer a people to answer the questionnaire.

4. To decide from of data collection:-

For this project survey method was selected which was carried through

person interview. Because information from different customers was required.

5. To organize & collect data:-

Once the researcher has formulated and development a research design

including questionnaire second thing he has to decide whether he has to collect the

information. From all the targeted customers. There can be two types of survey are

possible.



2.4 SAMPLING:

Sample Survey

“For this project sample Survey was chosen”

Characteristics of the sample survey are:-

It is cheaper than census survey

It requires less time

It is economical

More detail information can be collected

Deciding the sample plan requires following decisions

Sample unit “Who is to be surveyed”

Sample

Sample is the true representation of the population by studying of the sample we can

predict the behavior of the population.

Sample Size: 62 (in this case)

Method of Sampling:-

In this project, the survey was done within the market that means probabilistic

convenience Sampling was carried out.

To process & analyze data:-

After the data was collected it was tabulated, analyzed and interpreted to the

conclusion reach.



2.5 SAMPLE TECHNIQUES APPLIED

Bar Chart:- A chart in which the length of the bar represents the amount of the item

associated with the bar.

Research Method:

Exploratory Research

“Our research is based on the exploratory research.”

Exploratory Research

“The objective of this research is to gather preliminary information that will help us

to define the problem and to suggest any hypothesis.”

Which means first we have to define the problem and research objective? Then we

have to develop the research plan for collecting information. Now after collection data we

have to interpret those data for any suggestion,



2.6 .LIMITATIONS

It was assumed that the information given by the respondents is

authentic and best of their knowledge.

Some of the view given was completely views by customers as they

were in a hurry and were not considered in the data analysis.

The result of the study is applicable to the survey area only.

Time and Money is also one of the important limitations.

Dull process and unwilling respondent also affect the result of the

study.

SALES & PROMOTION STRATEGY CHAPTER-III


CHAPTER-III

COMPANY PROFILE



PROFILE OF THE COMPANY

HISTORY Why Telecom Industry?

Indian Telecom industry is one of the fastest growing telecom markets in the world.

In telecom industry, service providers are the main drivers; whereas equipment

manufacturers are witnessing growth and decline in successive quarters as sales is

dependent on order undertaken by the companies.

Today the Indian telecommunications network with over 452.91 million(as on May

09) subscribers is second largest network in the world after China. India is also the

fastest growing telecom market in the world with an addition of 10- 12 million

monthly subscribers. The tele-density of the Country has increased from 18% in

March 2006 to 38.88% in May 2009, showing a stupendous annual growth of about

50%, one of the highest in any sector of the Indian Economy. The Department of

Telecommunications has been able to provide state of the art world-class

infrastructure at globally competitive tariffs and reduce the digital divide by

extending connectivity to the unconnected areas. India has emerged as a major base

for the telecom industry worldwide.

Recent things to watch in Indian telecom sector are:

• 3G spectrum auctions

• Mobile Number Portability(MNP) Implementation

• New Policy for Value Added Service

• Due to technological advancement and increase in traffic.

• Abolition of Access Deficit Charge (ADC).



About The Mobile Store:

Mr. Rajiv Agarwal, CEO and Director, The Mobile Store Limited, heads

India's first countrywide chain of telecom retail outlets. "The Mobile Store" is an

Essar Group venture, set to introduce a pan-Indian network of retail telecom outlets.

The Mobile Store offers a world class shopping environment, with state of the art

technology.

The Mobile Store format is a one stop mobile solution shop that

provides, multi brand handsets, accessories, connections, repairs, VAS etc all under

one roof.The Mobile Store currently has more than 1050 outlets and the vision is to

have a network of 2500 stores by 2010 across 650 cities, thus covering virtually

every major town in every state across India.

The Mobile Store outlets are in three formats: Large - 1000-1500 square

feet, Medium- 800-1000 square feet and Corner-150-200 square feet, with smaller

formats located primarily in large malls.

Key thrust areas for the retail format are: Comprehensive Product Range,

Knowledgeable Store Staff & Interactive Environment, Competitive Prices and

Handset Repairs.

The Mobile Store caters to the Indian consumer's choice of the widest and

most comprehensive range of mobile phones with special offers from all the key



brands available across the globe. The Mobile Store offers complete telecom

solutions right from handset purchase to the choice of service operator and

miscellaneous services like monthly bill collections etc., the stores also offer

connections (pre paid and post paid), accessories and VAS including the latest ring

tones, wallpapers and gaming and prompt after sales service, available not only in

the city of purchase but in all The Mobile Store outlets across the country.

The Mobile Store has undertaken an extensive training program to

equip all its employees with in-depth knowledge of the products and brands

available at the store, thereby allowing them to provide the right kind of guidance to

the customer.

The Mobile Store has categorized its mobile device offerings into

consumer segments keeping in mind the profiles and needs of different consumers.

The unique segments available in The Mobile Store The Mobile Store are: Business

- PDA & Smart phones, Emails, data transfer etc., Lifestyle - Fashion phones, Look

and elegance, Fun - Multimedia & music, camera, games, wacky ring tones and

wallpapers, Value for Money - Special offers, discounts and budget phones.

All major handset brands like Nokia, Sony Ericsson, LG, Samsung,

Motorola, Fly, Sagem, HP, I Mate, Dopod, HTC and Blackberry are available at the



store. The Mobile Store has also tied up with all leading operators including Airtel,

Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom.

All major handset brands like Nokia, Sony Ericsson, LG, Samsung,

Motorola, Fly, Sagem, HP, I mate, Dopod, HTC and Blackberry are available at the

store. The Mobile Store has also tied up with all leading operators including Airtel,

Vodafone, BPL, Idea, MTNL/BSNL and Reliance, TataIndicom.

INTRODUCTION-WHY VIRGIN MOBILE?

In Indian mobile market, Virgin mobile is a unique player based on

its business model and strategy. It is the only service provider which does not hold

any bandwidth and mobile setup infrastructure but uses Tata Teleservices spectrum

and is penetrating market totally on its branding and marketing strategy. Creating a

niche brand and promoting it to specific customer segment with proper marketing

has been the key success factor for virgin mobile across the globe. So, from

marketing and customer understanding point of view, this is a very unique company

to study.



COMPANY DEVELOPMENTS:

Virgin has promoted itself as the brand for young India, keeping the

Indian youth as its target customer segment. The idea behind targeting this segment

can be found inherited in virgin’s business model. The different marketing

perspectives are explained in fig 1.

The salient features of Virgin’s business model from customer perspective are:

1) With intensive competition and reducing voice tariffs, the profit margins for

voice service are decreasing day by day. So, the future profit strategy is

maximizing profit margins through data services and it is youth segment

which provides maximum data service revenues.

2) Future projection of increasing young and working population of India as

65% of overall population by 2020.

3) Increased use of data services in future due to technological advancements.



Fig 1: Creating Virgin brand through various market channels

VIRGIN MOBILE BRAND

NETWORK

Tata Teleservices

Bluedart

DISTRIBUTION CHANNEL

Online selling

Retail Access

PRODUCT DESIGN

Paid incoming

50 paisa STD

VBYTES Value

COMMUNICATING VALUE PROPOSITION

Youth centric advertisement

Young & Vibrant

Samsung



COMPANY ACHIVEMENTS

COMMUNICATING THE VIRGIN BRAND:

Virgin mobile has communicated itself as the youth oriented brand of India through

various communication channels. They are:

a) “Think Hat ke” advertisement campaign targeting youth

b) Red and vibrant website look with youth focused language (Fig 2)

c) Tailor made plans for young segment

d) Getting paid for incoming calls: a source of recharge option for youth

Fig 2. Virgin Mobile website depicting youth flavor



TARGET MARKET:

The Virgin Mobile Brand, targets Indian youth aged between 14 and 25

years. There are 215 million people in this age group. Out of this, 70 million own a

mobile phone and this segment is expected to add another 50 million new

subscribers in the next three years. Though young subscribers constitute only 30

percent of the total mobile subscribers, they contribute more than 50 percent of the

revenues of telecom industry. By 2010 this group is expected to contribute 60-70

percent of total revenues.

The distinct mobile phone usage habits of the young users provide a huge

advantage to Virgin Mobile. They make more and longer out-bound voice calls,

which means huge billing potential for service providers. The usage of SMS, data

services in the form of mobile internet, mobile shopping and other value added

services like ring tones, caller tunes, wallpapers, etc are very high in this group

which again provides a huge opportunity to be tapped. Moreover young users have a

short handset up gradation cycle-under 12 months as compared to two years for

people above 25 years of age.

CUSTOMER ACQUISITION AND RETENTION STRATEGIES:

The company knows that they are trying to position themselves into a

very established and competitive market. They understand the fact that they cannot

start making profit from day one neither they have plans for it; they anticipate to

achieve a subscriber base of 5 million in next three years and will make profit

afterwards they will be able to break even in three year or so.

According to the patron, Sir Richard “We want to deliver a more tailored and

relevant offering for a single segment”. Company targets only 10% of the above

mentioned segment and have plans to acquire and retain them by various innovative

propositions, some of them are-

1) Providing services which were not offered so far

a) Get paid for incoming calls.

b) 50 paisa for all calls across the country.



c) A brand truly meant for the young India which is reflected at each & every touch

point.

d) Extensive data service offers in the form of vbytes.

e) Excellent value added plans.

f) Go online facility for enquiry, purchasing phone, recharging and everything.

g) One touch VAS access from every virgin mobile.

2) Providing services which others are not providing meticulously

a) Easy to change the handset from a wide range of handset providing at very

reasonable prices.

b) Boring customer care services telling you are in queue.

c) One customer care officer dedicated for all queries of one customer leading to

Transparency.

d) No jammed or bad network coverage.

e) Tailor made customized plans without any hidden charges.

f) No monthly bills.



COMPANY PRESENT POSTION

VALUE CREATION THROUGH PRODUCT DESIGN:

Various steps that Virgin is taking to add value to the customer are on price, quality,

technology and social front. Company is providing the best prices in whichever plan

you go, quality of signals is not only comparable but better than most of the service

providers, on technology front it is the first in India to go for one-touch VAS access

from every Virgin Mobile.

MARKETING MIX:

The marketing mix is the combination of marketing activities that an organisation in

so as to best meet the needs of its targeted market.

Product: Virgin Mobile offers six RUIM enabled handsets with colour screen, FM

radio and include one touch access for V bytes-Virgin Mobile’s VAS portal.

Price: The handsets are priced in the range of Rs2000-5000.The call tariff is very

nominal which is 50p per call both local and STD subject to terms and conditions.

Place: The focus of Virgin Mobile on customer acquisition has so far been in the top

60 cities of India and is set to extend to more cities. The product is available across

a host of modern retail outlets The Mobile Store, Zameel electronics in ADONI.

Promotion: Virgin Mobile entered the Indian market in grand style. The company

surprised the readers of a leading Indian daily when all the headlines on the front

page were in the colour red. Virgin Mobile has used a very vibrant colour to relate

itself with the targeted market. Apart from traditional media, internet and outdoor

youth centric advertising has been used wisely to attract the targeted audience.

DISTRIBUTION CHANNEL

Virgin mobile makes its products available to the customer by both retail

stores and online distribution.

Selective Distribution:



Virgin mobile has selected some retail outlets to distribute its products. It

does not follow the strategy of intensive and exclusive distribution. The strategy of

selective distribution helps the company gain optimum market coverage and more

control but at a lesser cost than intensive distribution.

Virgin Mobile launched a new mobile handset v billing on 7 July 2008. V

Billing is available across 15,000 outlets nationally and over 1000 modern retail

outlets including The Mobile Store, Univercell, Chroma, Convergem, Big C, Vishal

Mega Mart, Vijay Sales and Sangeetha to name a few. Apart from this, the handset

will also be available in 34 kiosks in high traffic malls across the country.

Online Distribution:

Virgin Mobile India has announced that customers can now buy Virgin

Mobile branded products and services online. They just need to select the handset,

plan and number of their choice by filling an online form. Post the payment

transaction, handsets will be delivered to the customer within 24 - 48 hours and the

requisite documents for proof of identity will be collected in person. Customers

taking advantage of online shopping will also be offered additional talk time, extra

messages as well as other freebies.

Disintermediation and re-aggregation: The different features of the online

distribution are stated as follows:

• Intermediary becomes redundant as customer buys directly from the firm

using web technology.

• Customization becomes easier and feasible which adds to the customer value.

• Re-aggregation occurs in the sense that companies today encourage customers

to lodge their complaints or send their queries on the net. These are then

routed to another site where they are dealt with immediately in a seamless

manner. So it helps in improving the

overall efficiency of the channel.

For the delivery of the ordered products Virgin Mobile has tied up with Blue Dart.



COMPETITION:

Virgin Mobile has entered into a very competitive industry where Airtel,

Vodafone and Reliance are the dominant players. Virgin Mobile faces stiff

competition from Reliance CDMA phones. Virgin Mobile have taken a ‘hatke’ route

and launched the brand in the youth segment. The tie up with Tata Teleservices

enables it to fight competition as the network quality of Tata Teleservices was

ranked first by DOT. The company is spending huge chunks of money to promote

their VAS services and it would be interesting to watch out what Virgin Mobile

plans to offer.

SALES & PROMOTION STRATEGY CHAPTER-IV&V


CHAPTER-IV&V

DATA ANALYSIS

&

INTERPRETATION



Q1) How long you are using VIRGIN Services?

Purpose:

The purpose behind this question is to know about the usage time of Virgin customers

i.e. since how long they are using VIRGIN services.

Table-1

Graph-1

Interpretation:

Major Respondents using Virgin are old customers. 40% of the respondents use

Virgin services from past more than 1 year and 32% are 6months and 25% are 6-12 months

and while the lowest is 3% respondents using Virgin services less than 1 month.

TIME PERIOD FREQUENCY PERCENTAGE

Less than 1 month 02 3%

6 months 20 32%

6-12 months 16 25%

More than 1 year 24 40%

TOTAL 62 100%



Q2) From which source you came to know about Virgin?

Purpose:

The purpose behind this question is to know from which source the respondents came to

know about Virgin.

Table-2

PARTICULARS FREQUENCY PERCENTAGE

Advertisements 12 19%

Hoardings 21 34%

News Papers 17 27%

Mouth Publicity 12 20%

TOTAL 62 100%

Graph-2

Interpretation:

19% of the respondents are aware about Virgin through Advertisements, 34%are

aware because of Hoardings while 27% and 20% of the respondents are aware because of

Newspapers and Mouth Publicity respectively.



Q3) what is the main reason to purchase virgin mobile?

Purpose:

The purpose behind this question is to know from which reason the respondents came to purchase

virgin mobile

Table-3


CDMA technology 20 33%

Limited handset prices 34 53%

Price 4 7%

Switching from existing

handsets

4 7%

Others 0 0%

Graph-3

Interpretation:

33% of the respondents the main reason to purchase virgin mobile through

CDMA Technology, 53% are limited handset prices and 7% of the respondents are purchase

because of price and switching from handsets.



Q4)How you satisfy with this virgin mobile?

Purpose:

The purpose behind this question is to know satisfaction with virgin mobile.

Table-4

Graph-4

Interpretation:

Virgin makes the huge no of satisfied customers by its services. It is helpful to

increase the customer relationship and also for the sales of the company.


Offers 12 19%

Phone models 21 34%

Features 17 27%

Others 12 20%

TOTAL 62 100%



Q5) How is the Network quality?

Purpose: The purpose behind this question is to know network quality of virgin mobile.

Table-5

Graph-5

Interpretation:

Virgin mobile has good network quality; by the analysis it is found that there is large

no. of customers those are highly satisfied with the network quality of virgin mobile.

PERTICULARS FREQUENCY PERCENTAGE

Excellent 11 17%

Very Good 22 36%

Good 16 26%

Poor 13 21%

Total 62 100%



Q6) how is the quality of service by customer care?

Purpose: The purpose behind this question is to know quality of service by customer care.

Table-6

Graph-6

Interpretation:

Virgin Mobile has good quality of customer care Services, where customer gets the

quick response of his queries; it makes the good relationship between the company

and customer.


Excellent 12 19%

Very Good 21 34%

Good 16 27%

Poor 13 20%

Total 100 100%



Q7)Do you satisfy with friends and family services?

Purpose:

The main purpose behind this question is to know about the awareness of respondents

regarding Friends and Family Services.

Table-7

Graph-7

Interpretation:

31%oftherespondents are satisfied with friends and family pack,17% are highly satisfied,25% are

dissatisfied,26% are highly Dissatisfied with friends and family pack.


Highly Dissatisfied 16 26%

Dissatisfied 15 25%

Highly Satisfied 11 17%

Satisfied 20 31%

TOTAL 62 100%



Q8) which services are more helpful to you while using Virgin services?

Purpose:

The purpose behind this question is to know which services are more helpful to the respondent while

using Virgin mobile.

Table-8

Graph-8

Interpretation:

31%of the respondents are satisfied with value added services pack, 17% are network, 25%

are sms rates, and 26% are call rates.

PARTICUALARS FREQUENCY PERCENTAGE

CALL RATES 16 26%

SMS RATES 15 25%

NET WORK 11 17%

VALUE ADDED SERVICES 20 31%

TOTAL 62 100%



Q9) did you like the extra offers like 50 paisa STD plan etc…?

Purpose:

Are you like virgin’s 50 paisa STD Plan and other plans

Table-9


Yes 42 68%

No 20 32%

TOTAL 62 100%

Graph-9

Interpretation:

There is maximum awareness of virgin mobile 50 paisa STD plan and other offers



Q10) Are you aware of prepaid incoming calls facility by virgin mobile?

Purpose:

The purpose behind this question is to know prepaid incoming calls facility by virgin mobile.

Table-10


Yes 55 88%

No 7 12%

TOTAL 62 100%

Graph-10

Interpretation:

There is highly awareness of virgin mobile paid incoming call plan.



Q11) which is the most favorable factor while using mobile service?

Purpose: The purpose behind this question is to know most favorable factor while using mobile

service

Table-11


Price 26 42%

Mobile handset compatibility 20 33%

Mobile Service of friends and

relatives

7 12%

Free extra services like

internet, down

4 6%

Others 5 7%

TOTAL 60 100%

Graph-11

Interpretation:42% of the respondents the main favorable of price,33% of mobile handset

compability,12% of mobile service of friends and relatives,6% and 7% are free extra

services like internet and others.



Q12) which is the most effective brand in mobile service?

Purpose: The purpose behind this question is to know most effective brand in mobile service

Table-12


Virgin 12 21%

Reliance 15 24%

Tata Indicom 5 7%

Aitel 15 24%

Vodafone 15 24%

TOTAL 62 100%

Graph-12

Interpretation:

By the analysis it is founded that virgin is most effective brand.



Q13) If you not a virgin customer, will you like to switch to virgin?

Purpose:

The purpose behind this question is to know you not a virgin customer, will you like to switch to

virgin

Table-13


Yes 9 14%

No 20 32%

Can’t Say 33 54%

TOTAL 62 100%

Graph-13

Interpretation:

There is low customer response for switch to virgin mobile because of the CDMA

culpability.



Q14) would you like to recommend virgin mobile services to others?

Purpose:

The purpose of this question is to know the recommendations of the respondents

towards Virgin, whether they would like to recommend the Virgin services to others or not.

Table-14

Graph-14

Interpretation:

93% of the Virgin customers would like to recommend Virgin services to others while 7% of the

Virgin Customers won’t recommend to others.

PARTICULAR FREQUENCY PERCENTAGE

YES 57 93%

NO 5 7%

TOTAL 62 100%

SALES & PROMOTION STRATEGY CHAPTER-VI


CHAPTER-VI

SUMMARY,FINDINGS

&

SUGGESTIONS



SUMMARY

Telecom industry is seeing a rise as the trend goes and has potential for growth. Taking into

account the tele-density of 38.88% there is still unexplored market. The competition is fierce

with around 10 Service providers in most of the 18 circles and also the implementation of

MNP. The service providers have to be different and have to stick to strict service norms and

provide excellent customer service in order to hold on to the market share. Thus there is

intense competition in the market but at the same time scope for development in rural areas.

Airtel, Idea and Vodafone have taken up initiatives to provide customized connections to

Rural customers like Motor pumps control system, loud speaker phone for illiterates and so

on.

In a few words Telecom sector has a lot of scope for growth and the customers at the same

time have the benefit to choose from a wide range of service providers offering various plans

targeted to specific customers

It can be said that Virgin has created its image in a very short period in Adoni.

It is attracting the customers with its good services. Most of the customer satisfied by

Virgin mobile services and facilities.

This satisfaction can be concluded by the response of customer in the questionnaires.

Day by day Virgin is improving his reputation to other Mobile network.



FINDINGS

Virgin comes under CDMA and GSM features.

Virgin has a large no. of customers those are satisfied with the services, it

increase the customer relationship and also increase the sales of the company.

Virgin has friendliness of delivery point, Virgin Mobile use effective

techniques for take attention of customer’s.

Virgin mobile has very good and huge customer care service, by this customer

can easily find the solution of the problem.

Virgin has large no. of satisfied customers by its services and offers. But in

rural area virgin is not so much successful.

Virgin is most effective brand.



SUGGESTIONS

Virgin should try to promote its latest plans like 50 paisa STD calls in

advertisements.

Making customers aware about latest pricing will increase its market share in terms of

cost effectiveness.

Virgin should try to tap 14% of customer base who want to switch to virgin but not

able to switch because of existing non-compatible handset.

Solving existing non-compatible handset problem and better communication to

inform latest pricing strategies will lead to substantial increase in consumer base for

virgin mobile.

In order to enhance customer satisfaction, time gap between services sought and

delivered should be minimized.

SALES & PROMOTION STRATEGY BIBLIOGRAPHY


BIBLIOGRAPHY

BOOKS

1 .Marketing Management

Paramhans Foundation First Edition, 1992

2. Research Methodology

C.R.Kothari Second Edition, 1993

3. Marketing Management

Philip Kotler Tenth Edition, 1999

REFRENCES

1. Website of www. mobilestore.com

2. Website of www.google.com

3. www.virginmobile.com

SALES & PROMOTION STRATEGY QUESTIOONNAIRE


QUESTIONNARIE

1) Since how long you are using virgin mobile? [ ]

A) less than B) 6 months

C) 6‐12 months D) more than 1year

2) From which source you came to know about virgin mobile? [ ]

A) advertisement B) hoardings

C) newspapers D) mouth publicity

3) What is the main reason to purchase virgin mobile? [ ]

A) CDMA technology B) limited handset prices

C) price D) switching from existing handsets

E) others

4) How you satisfy with this virgin mobile? [ ]

A) offers B) phone models C) features D) others

5) How is the network quality? [ ]

A) excellent B) very good C) good D) poor

6) How is the quality of service by customer care? [ ]




7) Do you satisfy with friends and family services? [ ]


8) Which services are more helpful to you while using virgin services? [ ]

A)Call rates B) SMS service

C) Network D) Value Added Services

9) Did you like the extra offers like 50 paisa STD plan etc…? [ ]

A) yes B) no

10) Are you aware of prepaid incoming calls facility by virgin mobile? [ ]

A) yes B) no

11) Which is the most favorable factor while using mobile service? [ ]

A) price

B) mobile handset compatibility

C) mobile service of friends and relatives

D) free extra services like internet, downloads

12) Which is the most effective brand in mobile service? [ ]

A) virgin B) reliance C) Tata indicom

D) Airtel E) Vodafone



13) If you not a virgin customer, will you like to switch to virgin? [ ]

A) yes B) no C) cant say

14) Would you like to recommend virgin mobile services to others? [ ]

A) yes B) no

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