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Key marketing strategies: SPICE and TATA

Paper Type: Free Essay Subject: Marketing
Wordcount: 5312 words Published: 24th Apr 2017

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Consumer behaviour is an important region for marketers especially for service industry where customer is given the highest priority. For a marketer it is very much important to understand the behaviour of consumer. It also helps the organization to make the long term profit. In today’s competitive market customer is given the preference. A product launched by the company is launched according to the needs of the customer. For trading the product successfully marketers should have a good understanding and they should target specific group of people who will be interested in their product. Marketing helps the business grow faster with stability. It is an important element of business which helps the company to increase its productivity and helps in providing the customer the valuable information about the product. A company can perk up its marketing strategy by studying the customers. The study focuses on factors affecting the purchasing behaviour of the customer and give suggestions which will help marketers to market their product accordingly. As the researcher of this report is from technical background and has keen interest in the telecom sector. Therefore this dissertation is taking place to further develop the researcher’s knowledge in this field.

In order to sell products successfully marketers should try to recognize and aim the particular groups interested in their services and products

“The dimension of study in the post modern era is about understanding communal consumption by developing the concept of “linking value” of a product and service” (COVA,1997).

While researching this topic Indian culture is taken into consideration in order to come up with the important factors which can be used as marketing techniques for the promotion of the product and services.


To find out what are the key marketing strategies for the survival of an indigenous telecom company “SPICE” along with other national company “TATA”.


This research is focused on the telecom companies in India and their marketing strategies used by the companies which help them to sustain themselves in the tuff competition.


Finding out most effectual means of communication with the customers to sell our product.

Increase product awareness among the audience.

Inform target audience about benefits of our product and its competitive advantage.

Finding out the impulse which leads to purchasing decision.

To signify the necessity of bonding with the customers.

The findings of this research are expected to be relevant to the Indian telecom Companies by serving the companies to structure the promotional strategies which will help the companies to build a strong bond with the customers.

The main purpose to carry out this research is to analyze and to reframe the current advertising planning of the product with the culture based approach.

Research work

Mainly the questions used for research of this piece of work will be focussed to discover:

Present situation of the Indian Telecom market.

Advantages of using marketing strategy based on cultural factors.

Factors acting as disadvantage and are barriers in present promotional strategy.

An in-depth exploration of the literature has been successfully carried out to find out the market gap and also in order to get knowledge about the currently used marketing concept.

Literature review

Introduction to Marketing

Marketing may be looked as the wide range of activities involved in making sure that marketers are continuing to meet the needs of their customers and are getting value in return.

Marketing idea came up as a vital issue for the organizations to know the demand of the market for the services or manufactured goods (product) offered. Marketing plays a vital role in company success and down fall. Companies which are running keeping a focus on there marketing strategy are at an advantage because they know the current need of the market and the right way and time to approach the customers. Whereas companies which are self centered about their services and products and doesn’t have a frame of mind towards marketing are at an disadvantage. Marketing is becoming an important business for the organisation. The organizations endeavour to grow their services and products appealing to their customers and aim to serve them differently from others in the global market.

Great team work and a well planned strategy are important for a marketing campaign to be successful. The organizations should identify the potential customers and try to focus on them

“The central idea of marketing is of a matching between a company’s capability and wants of customers in order to achieve the objectives of both parties”.(MCDONALD,M.1999 pp.1).

Marketing approach

In respect to business the marketing approach could be explained as a plan of action implemented and followed by the organization to achieve their respective targets.

According to Kotler

“Marketing strategy is the marketing logic by which the business unit expects to achieve its marketing objectives. Marketing strategy consists of making decisions on the business’s marketing expenditure, marketing mix and marketing allocations in relation to expected environmental and competitive conditions”.

In today’s date when the market is so advanced with the new inventions coming up. In such a tuff competition planning a marketing approach to be followed by the organizations is not just a piece of cake, its some thing very much multifaceted. Because the approach planned by the marketers may be already used by some or the other organization or may be planned and used in future by some other companies in much advanced and in much better way than what marketers are planning according to current status of the market. With correct way of approach towards the market a company can make it products or services most demandable among the customers and consumers.

The basic difference between customer and consumer is:

Customer: the people who have the potential to use the product and services offered by the organization. But these people enquire about the offerings but don’t purchase it.

Consumers: the people who not only enquire about the services but also uses (consumes) the offerings by the organizations.


Culture is a small word to hear and to be bought in daily use but it holds a big meaning in itself. It may be a reason for the success or fall of the company. The organizations are targeting the people and people living in different part of countries or different part of world have different culture. Culture can be a factor of success for the organizations if bought in use in a right way. India can be called as a country of countries with different religions and languages existing into it. Company mainly focuses on uniqueness of languages in India and tries to find the appropriate way of communicating with the customers. As communication play a key role in marketing, while communicating with the target audience marketers should consider importance of language and culture. Marketers should speak in consumer’s language because it increases the chances of success for the company. SPICE TELECOM is a small company as compared to TATA TELESERVICES. Spice is basically serving two states of India, Karnataka and Punjab and Tata is serving complete India. These both states are very much different from each other in all respects for example way of living, their language, there beliefs and values i.e there culture. The local language for Punjab is Punjabi and for Karnataka is Kannad. Both the languages are totally different in speaking i.e there is no similarity in both languages not even in terms of speaking tone. If Spice serves people of Karnataka in Punjabi and people of Punjab by speaking Kannada, then we can think ourselves where will their business go. Here comes the importance of culture in existence for the business.

Culture was stated as “a general process of intellectual, spiritual and aesthetic development” and a “particular way of life” (Williams, 1976)

In telecom industry to satisfy all the customers globally the company has to do its business differently for every part of the country because difference of culture exists in every part of country. To reach the people globally company has to act locally for each part of the country.

Hofstedde (1980; 1984) defined culture as “the collective programming of the mind” which differentiated one human group from another.

Term culture emerged as a considerable field for the organizations in context with their businesses and the researchers accepts that the reputation of the business goes hand in hand with the values of culture, without conflicting at any point.

Not only the culture of the market and people but also the organizational internal culture is equally important for the success of the company.

Desphande and Webster define corporate culture as ‘the pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them with the norms for behavior in the organization’.14 Thus, a ‘culture-to customer’ philosophy refers to one in which the organization initially clearly defines its own culture and communicates the view of that culture internally, and after that its basic values are made clear and observable to the customers. Then the customers are able to identify and bond with the organization, for a particular service or product that Finding a communication channel where your prospects are likely to buy is the key to success in any business. matches their own needs and principles.

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Approach of Product Promotion

Effective marketing promotional approach to the customers can have a direct impact on brand positioning. Promotion approach to the market helps the marketers to attract the consumer behaviour to up to vast extent; it provides the opportunity to the marketers to determine the demand of the product among the customers. If the product is not performing well in the market then with a well planned promotion strategy it can be given new heights. Even after implementing the new strategy the product does not performs well then the promotion of that product can be withdrawn without affecting the image of the organization.

An effective promotional planning helps in increasing the sales for the organizations by ensuring that customers are aware of the organization and what the company is offering. The promotional marketing strategy should be aimed to target the desired customers whenever a new service or product is launched in the market.

Promotion of approach in Marketing may be of mainly two types:



Push approach makes use of company’s sales figures and trade advertising conduct to build consumer demand for the product.

Pull selling approach is one that requires high costs on advertising and buyer marketing to create up end user demand for the item for consumption.


Consumer behaviour refers to the emotional and mental process of the consumer during the purchasing and post consumption of the services or product.

This study could be based on the factors like:

What people buy?

When people buy?

Why people buy?

How people buy?

It is very much important for a commercial enterprise to satisfy the need of the consumer. The revenue of a commercial enterprise is generated by the services and products sold to the customer. By acting according to the customer behaviour a company is able to hold back the customer to generate its business. Culture has also a great impact on buying behaviour of the customer.

Symbolic interactions has an effect on consumer behaviour

Consumer buying behaviour process

“Consumer behaviour is the study of processes involved when individual or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires.”

Studying the consumer buying behaviour is a complex matter for marketers as several factors (internal and external) have an impact on the buying decisions of the consumer. A purchase by consumer is often planned through savings made over a considerable period of time.

Marketers should be able to alter the behaviour of the customers to a favourable status for promoting their product. The quality of the product is one of the important factors which influence the buying decision of the customer. Other factors also play a vital role in building up relation with the customer such as costumer services and support after sales to the customers.

Need Recognition & Problem Awareness

Information Search

Evaluation of Alternatives


Post Purchase Evaluation

Branding (brand loyalty)

“A brand is a name, term, sign, symbol, or design, or a combination of these intended to identify the products or services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler.P.1996). In making a strategy of the product branding plays an important role. As per brand loyalty is concerned it is mostly seen in people who are of pre mature age and baby boomers generation. However nowadays the brand loyalty by the customers is declining, generation X and Y generation have less loyalty towards the brand they mostly go for the best offers. A powerful brand name is very much advantageous for the company because it has a strong command over consumer loyalty. People go for the brand name ignoring the other brands available in the market even though they are getting fewer offers by that brand because a strong brand name means that it will deliver values, personality, attributes and benefits for the customers. Sally Dibb () defines brand loyalty as “a strong motivated and long-standing decision to purchase a particular product or services”. Most of the company marketing strategy is based on to reassure ongoing customer’s support for the company because it helps the company to get the stability in the business.

According to Taylor.S.A. (2004) Customer’s loyalty is related to:

Customer loyalty is positively related to satisfaction.

Customer loyalty is positively related to value.

Customer loyalty is positively related to resistance to change.

Customer loyalty is positively related to affect.

Customer loyalty is positively related to brand trust.

Customer loyalty is positively related to Brand equity.





Brand equity



To change


Among all the important factors mentioned above the most important factors are brand equity and trust. Sally Dibb (1997) defines brand equity as

“The marketing and financial value associated with the brand strength in the market”.

Major elements of brand equity are:

Brand Equity

Brand association

Percieved brand equity

Brand Name Awareness

Brand Loyalty

Customer’s attitude is a requirement for true loyalty to occur. Aaker (1991, p. 15) defines brand equity as “a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers”.

Keller (1998, p. 45) argues that brand equity is unique from customer loyalty, and can be defined as the differential effect that brand knowledge has

on consumer response to the marketing of that brand.

Effective medium of communication:

Before choosing the way of communication with the customer’s marketers should focus on the area to be targeted where they can find a profitable market for the company which will benefit the company’s status. For making a product successful it should be marketed effectively. Marketers should also focus on choosing the way of communication (advertising) with the customers because the success of the product depends upon an effective marketing. Companies fail in the market place because their strategies are ill-conceived, poorly prepared and badly executed in relation to those of their competitors (James Barrie, 1984). For the success of the business it is very much important for the marketers to find the most effective way of communicating with the customers. Now days customers are very intelligent, they like to confirm the authenticity of the product or service they are going to purchase. The mode of authentication which a customer may use may be of different types like: word of mouth, internet, and the trust in the brand (brand name), some legal information which certifies their authenticity.

The way by which the organizations communicate with the customers is known as media. Media are of many types

Print media (newspaper, magazines, pamphlets)


Voice media (Radio)

It is important for the marketers to choose the most efficient way of communicating. The mode of communication used by one business may be right for that kind of business but not for the other.

Culture effect on consumer’s decision

The study of consumers by the marketers helps the organizations to get better with their marketing strategies. The thinking of the consumer is influenced by the environment around for example: the culture.

Importance of advertising of product

Advertisement is associated to marketing because the campaigns running for the promotion of the product tend to have an enormous effect on the product reception in the market.

Here promotion (advertising) plays a major role. Effective advertising can create the interest of consumer towards a product. It also helps in informing large group of people at once about the product once it’s launched or is to be launched in near future. Its aim also includes influencing the people to take a required action such as consuming the product.

Advertising is being aimed in the direction for potential customer. This process is planned in a way so that this process creates an impressive image of the brand in the market which in turn has a positive impact on the customers.

Advertising is important for the current status of the society, it is a way used for mass promotion by the organizations, so that a common message is being communicated to every one. It is a medium of informing the customers and keeping them updated about new products arriving or arrived in the market. It helps in spreading the knowledge for the products or services that are useful for the customers. For successful marketing not only effective way of marketing is important but also the product which is being promoted should be potential enough and should be according to the current need of the market. Marketing is equally important for all the organizations however the small or large organization may be, it does not depend upon the factor of size of organization. Every business to survive in the market needs to market its product or services.

Advertising can be divided into 3 stages

Pre- Advertising Pre-promotion increases booth traffi c by 30%, according to the Center for Exhibiting Industry esearch (CEIR), and provides the initial steps to success. To get started, identify your desired targeted audience. On sider initiating a variety of marketing mediums to reach your desired market and ultimately drive home your

company’s message.

At show Advertising

Post Advertising

Research Methodology:

The research is based on telecom industry of India. In this research different aspects are assessed and analysed so for that more of qualitative data is used as compared to quantative data. “Qualitative research is especially important in the behavioural sciences where the aim is to discover the underlying motives of human behaviour” (KOTHARI,C.R.2005 pp 3).

The research shows that telecom sector is getting saturated and in today’s business running conditions the organization which is customer focussed and share a great bonding with the customers can achieve success. The marketing strategy to approach the customer comes with a mixture of technology and communication

In this revere this study aims to put forward an advertising strategy which is able enough to hold the current tendency in the market.

Research Philosophy

As market world moves from modern status to the post modern state a similar shift in noted in the scientific thought as well. This shift in marketing values resulted in foundation of theoretical concept acknowledged as post- positivism.

“For the post- positivist researcher reality is not rigid thing, instead it is a creation of those individuals involved in the research. Reality does not exist within vacuum, its composition is influenced by its context, and many constructions of reality are therefore possible” (Hughes,J.1994).

Research Method

The study will be based on interviews, researches and surveys. The approach used will be both qualitative and quantitative approach.

Industrial study

Figures given by TRAI




Gross revenue





Evolution of the Industry


History of Indian Telecom


First operational landline were laid by the government in Kolkata

(seat of British power)


Telephone service introduced in India


Merger with the postal systems


Formation of Indian Radio Telegraph Company (IRT)


Merger Of ETC & IRT into Indian Radio And Cable Communication Company (IRCC)


Nationalization of all foreign telecommunication companies to form the Posts, Telephone and telegraph (PTT), a monopoly run by the governments Ministry of Communications


Department of Telecommunications (DOT) established, an exclusive provider of domestic and long distance service that would be its own regulator (separate from postal system)


Conversion of DOT into two wholly government owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and 1997

Telecom Regulatory Authority of India created.


Cellular service are launched in India


DOT becomes a corporation BSNL

Segmentation of the Indian Telecom Industry

The Telecom Industry of India can be segmented as following:


Young Professional

Small and Medium Enterprise (SME)



Telecom Subscription Data as on 31st December 2009

Total Telephone subscriber base reaches 562.21 Million

Wireless subscription reaches 525.15 Million

Wireline subscription declines to 37.06

19.10 Million new additions in wireless

Wireline subscription declines by 0.09 Million

Overall Tele-density reaches 47.89

Broadband subscription is 7.83 million

Service provider wise net additions during the month


Fixed line segment

Wireless segment

Low cost by the service provider for the services since 2002 boosted the wireless segment

Advantage of roaming facility

Affordable cost of mobile handsets also helped in booming this industry.

Global calling cards (GCC) are being provided by the operators to cut the calling cost while making a call from foreign country. It saves up to 90% cost on call.


“Marketers should accept the fact that target may be moving, the target composition may be changing, and thus that target positioning is inconsistent”

( Procter & Kitchen,2002)

“A significant characteristic of the postmodern individual is that he/she avoids commitment; in commercial terms, where the modernist customer may have been assumed to be loyal to a firm or product, postmodernist consumer exercises freedom to move where choice or whim indicates.” (Dawes & Brown. 2000)

A close network with the customer is advantages for the organization that, they will able find out the need, aspiration and reaction to a particular product or service, and this is main reason why the small and medium enterprises (SMEs) are considered as important generators of economic growth.

“Tribal Values spreads social bonding and the myths and stories about who we are and where we fit, sustain our sense of esteem. Thus, the word tribe is used to emphasize the yearning for old style values such as sense of local identification that foster re-enchantment with the world” (HENRY,P. 2007).

….it is important to heed the maxim “think global, act local”. The firm must ensure that its structure fits in with its international environment, while at the same time, have the internal flexibility required to implement its strategic goal (Taylor, 1991).

Ethical considerations

The approval of interviewees were obtained in advance to be a part of this study and the respondents were knowledgeable about the aim of the research. The lack of restrictions for the interviewees was ensured and it was contracted that they could withdraw from the research at any point. The research was carried out after the consideration of the key ethics outlined by Collis and Hussey (2003):-

Anonymity ensuring the participant had the opportunity to remain anonymous. Identity was not disclosed with any opinion expressed.

Informed consent participants were informed about the intention of the research and agreement was sought prior to interview for their participation.

Dignity the research was carried out in such a way that the participants in the research are not embarrassed or ridiculed.

Publications not to insist on any research findings and the research was undertaken in a way in which no bad light was casted on any individual interviewed.

Literature review based on Indian Telecom Industry

Telecom sector is one of the important sectors for the Indian Economy. The telecom industry is one of the fastest growing industries in India. This sector is divided into two segments:

Fixed service provider

Mobile services

Mobile services can be further divided into two technologies:

GSM (Global System for Mobile Communication)

CDMA (Code Division Multiple Access)

Indian telecom sector is controlled by TRAI (Telecom Regulatory Authority of India). Marketing by company is done keeping the customers point of view in mind. In the field of telecommunication advertising (marketing) is a way of communication with the customers. So it is very much important for the company to understand the customer’s point of view so that appropriate marketing strategy can be used to attract the customers. India is a very big country and with very many different cultures with in, so the marketing strategy differs a lot for each region. For example to attract potential customers from the metropolitan cities the approach of the company will be different as compared to approach for attracting customers from the rural India. The growing telecom industry of India is acting as a backbone for the economy.

India is the fastest growing mobile market in world. The mobile subscriber base in India has shown a tremendous growth from 6.4million in March 2002 to 350million in December 2008 at a compound annual growth rate (CAGR) of 81% aided by falling price of handset and increased coverage of network.


India could be categorised into

(a) Metros

(b) Class A

(c) Class B

(d) Class C

The following chart shows the there is a large scope of growth in class B and C and working accordingly large players like are focussing on increasing there network and geographical coverage in these circles. With the growing market the competition among the companies is also increasing at a high rate. Apart from national players there are also companies which are acting on a local scale in this market for example Spice. People like themselves to be associated with a brand name

The list of telecom operators operating in India with their market share is detailed as under:


Recent things to observe out in Indian telecom sector are:

1. 3G and Broadband Wireless Access (BWA) auctions

2. Mobile Virtual Network Operator (MVNO)

3. Mobile Number Portability

4. New Policy for Value Added Services (VAS)

5. Market dynamics once the recently licensed new telecom operators start rolling out

6. Services.

7. Increased thrust on telecom equipment manufacturing and exports.

8. Decrease in Mobile Termination Charges.

9. Due to increase in traffic and technological advancement

4. Findings

The findings from the interviews, research are considered below to evaluate the feasibility of the research model derived from the literature review. The methods of research used give an understanding about the current marketing strategies followed by the firm and also about the Welsh consumer behaviour and their bondage to the cultural values. It is clear that consumers are very complex and unique in how and when they choose to eat away from home. It is also clear that when the post modern marketing concepts are considered the current marketing strategies followed by the organisation cannot be called as perfect.

Section 1(a): Creating awareness about the current marketing strategy

The interview gives the knowledge about the modern marketing strategies applied by each of the telecom industry.

Each of the ? organisations was focussing on the customers but by applying different business plans into existence.

Marketing strategy applied by AIRTEL

AIRTEL is one of the most reputed Companies. Airtel is having faith in its brand image and believe that only loyal behaviour by the organisation can only achieve the loyalty of the customers. Airtel marketing strategy has always been successful to give a recognition to its brand.

When manager was asked about the strategic planning of the organisation, the manager explained that the strategy is planned by taking mainly 3 things into consideration




Target crowd:

The official confirmed that the marketing strategies were planned by the organisation to target new generation customers.


“Our key customers are the working class group, advanced in the field of technology and who always run out of time. Wi-Fi was enabled in all t


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