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Impact of Advertisement On Brand Airtel
Impact of Advertisement On Brand Airtel
REVENUE
A
CASE STUDY ON
SUBMITTED TO
CONTENTS
1. Introduction
2. About Airtel
5. Questionnaire
7. Conclusion
INTRODUCTION
Brands all over the world use celebrities to advertise their products. As early
as 1890, actress Sarah Bernhardt appeared on posters for La Diaphane, a
famous brand of rice powder at the time (Lehu, 1993). The use of celebrities
in advertising is not, therefore, a new phenomenon, but it has become
increasingly widespread. Brands like Pepsi have featured stars such as
Michael Jackson, Madonna, or even the Spice Girls, with varying impact
(Erdogan,1999). Pizza Hut launched its restaurants on the international
market with icons that are almost universally recognized, such as Cindy
Crawford, Linda Evangelista, and Pamela Anderson. Some stars have several
contracts with different brands: it is estimated that Michael Jordan, who
appears in advertisements for Nike, Coke, Wheaties, Mc Donald's, Hanes,
Oakley, and Gatorade, has an impact worth about 14 billion dollars on the
American economy (Erdogan & al., 2001). Similarly, in a single week, French
footballer Zinedine Zidane appeared on posters for Dior perfume and Leader
Price hard-discount supermarkets, as well as TV ads for Dannon yoghurt.
Stars have become a vital component of advertising for certain categories of
products, like perfume and cosmetics.
The fees received by celebrities for brand endorsements are very high:
American actors Nicole Kidmann and Brad Pitt, as well as golfer Tiger Woods,
may receive almost 5 million dollars per contract. In Europe, Zinedine
Zidane refuses all proposals below 1.2 million dollars. Yannick Noah, who
recently replaced the footballer as the French public's favorite personality,
received 1,100,000 dollars (exclusive of commission on sales) for the new
Sloggi underwear campaign.
Research has attempted to elucidate the reasons why companies invest so
much money in communication featuring celebrities (Erdogan, Baket and
Tagg, 2001). There are many reasons (Lehu, 1993), but firstly, it is
significant that celebrity endorsements are a way of avoiding anonymity and
standing out from the competition in saturated markets. For example, in the
cosmetic and perfume industry, new products are being launched all the
time. Cosmetic brands can no longer achieve recognition merely due to the
intrinsic quality of their products, but do so, above all, by the image they
project through their advertising campaigns, generally by featuring movie
stars, models, or singers. Celebrities make an impression on consumers.
According to Jacques Helleu, artistic director for Channel, "it is the only way
of making a sufficiently strong impression on consumers memories to trigger
a purchase when they are in a sales outlet at a later date" (Devilliers, 2004).
The source credibility model was developed in the 1950s by Hovland and
colleagues (Hovland and Weiss, 1951). According to this model, the
effectiveness of a message depends on the perceived level of expertise and
trustworthiness of an endorser (Ohanian, 1991).
This model has the advantage of including affective and cognitive aspects.
The transfer theory relies on the endorsement process described by
McCracken (1989). This process is based on the idea that, in the consumer
society, which is organized around culture, celebrities have a shared cultural
significance in the eyes of consumers (McCracken, 1986, 1989). McCracken
defines this transfer as the translation of the meaning of celebrity to a
product or brand, e.g. in advertisements with celebrity spokespersons.
Endorsement is effective when an individual who buys and consumes the
product appropriates the meaning associated with the celebrity, which has
been transferred to the product.
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The
Bharti Group, has a diverse business portfolio and has created global brands
in the telecommunication sector. Bharti has recently forayed into retail
business as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash &
carry business. It has successfully launched an international venture with EL
Rothschild Group to export fresh agri products exclusively to markets in
Europe and USA and has launched Bharti AXA Life Insurance Company Ltd
under a joint venture with AXA, world leader in financial protection and
wealth management.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and
the first private telecom services provider with a footprint in all the 23
telecom circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in the country
with its world class products and services. The businesses at Bharti Airtel
have been structured into three individual strategic business units (SBU’s) -
mobile services, broadband & telephone services (B&T) & enterprise
services. The mobile business provides mobile & fixed wireless services using
GSM technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities. The Enterprise services provide
end-to-end telecom solutions to corporate customers and national &
international long distance services to carriers. All these services are
provided under the Airtel brand.
ORGANISATION STRUCTURE
BHARTI AIRTEL Services & Product
VOICE BASED
• Voice mail
• Dial a service
SMS BASED
• Info messages
• SMS Chat
• Instant Messenger
GPRS
• Mobile office
• Content Portal
OTHERS
• MMS
• Itemized billing,
• Offers Java games, logos, ring tones through their content portal
Portal
SMS Polls on TV
Channels
Prepaid Recharging
Or
• Direct debit facility with the subscriber’s bank account (SMS Based service)
FIXED LINE
• Bharti (Touchtel)
• Tata Telecom
• HFCL
• Shyam Telecom
WLL/CDMA
• BSNL
• MTNL
• Reliance
• Shyam Telecom
• Tata Telecom
• HFCL
6 Operators
GSM
• Bharti
• BPL
• BSNL
• Hutch
• Idea
• MTNL
• Reliance
•Spice Telecom
8 Operators
WLL/CDMA
• BSNL
• MTNL
• Reliance
• Shyam Telecom
• Tata Telecom
• HFCL
6 Operators
Mobile Operators Subscriber Base – GSM
Bharti is the undisputed leader among GSM operators Bharti was the first mobile
operator in India.
Positioning Of Airtel Through Celebrity Endorsement
The campaign attracted considerable media attention because this was the
first time Rahman had agreed to do a television commercial and also
because, Rahman had been paid Rs 10 million for the campaign, a sum
usually unheard of, for celebrity endorsers in India. The campaign received
brickbats as well as bouquets in the media, both for the selection of Rahman
and the TVC's execution.
As a spokesperson
Multiple celebrities for one product
Multiple product for one celebrity
Celebrity Pairing
Endorsement in movies
Close Substitutes
Clear Differentiation
Entry into the Market
Lifecycle of the Brand
Competition
Celebrity-Product match
Cost
Celebrity credibility
Celebrity availability
Ambitious psyche
Physical Attraction
Benefits of Celebrity Endorsement:
Establishes credibility
Attracts attention
Associative benefit
Psychographic connect
Demographic connect
Mass appeal
Sense of trust
Persuasive message
Improper Positioning
Clutter Flutter
Confusion/Skepticism
Television Commercials and its ratings
AirTel 'Express Airtel 'Lifetime Airtel'Kuch bandhan atoot
Airtel 'Child in the
Yourself ' Incoming' hote hain jaise'
Rain' commercial
commercial commercial commerical
Product Rating:
(Read 16 reviews) (Read 1 review) (Read 1 review)
Product
Recommendation: 88% 0% 100% 100%
Remove
Camera Effects:
Concept:
Execution:
Model Choice:
Model Performance:
Jingle:
3357372000
*100
Advertisement Expenditure to Sales & Marketing
Expenditure 6,442,162,000
= 52.11%
3357372000
*100
= 7.78%
= 4.11%
ANALYSIS
• The advertising expenditures are half of the total Sales and marketing
expenditures, which indicates a sufficient spending on advertising
i.e: Advertising expenditure= 52% of Sales & marketing expenditures.
4113547000 *
100
Advertisement Expenditure to Sales & Marketing
Expenditure 8,335,924,000
= 49.34%
Advertisement Expenditure to Total Expenditure
4113547000 *
100
= 6.44%
4113547000 *
100
= 3.50%
ANALYSIS
• In the year 2006, it shows that Advertising Expenses are 49% of the total
Sales & Marketing, which indicates that they are reducing their focus on
advertising by a few basis points.
4308349000 * 100
Advertisement Expenditure to Sales & Marketing
Expenditure 11,387,037,000
= 37.83%
4308349000 * 100
= 4.64%
4308349000 * 100
= 2.33%
ANALYSIS
• From this we can also conclude rather than advertising Expenditure other
factors like sales promotion etc. are contributing equally to the total
revenues.