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Research Article of PK
Research Article of PK
Pragati Khadka
Birgunj Public Cillege
Abstract
INTRODUCTION
Nepal is a geographically challenged country, its 25.3 million or so people scattered throughout mountains, high
peaks, hills, valleys, and terai1, presenting barriers to sustainable growth and development. With a gross
domestic product (GDP) per capita of $409.04 (2014), an average growth rate of 2.58% than the past year i.e. 2013,
and a poverty incidence of 4 4 % (a/c to UNDP’s Human Development Index, 2013), the economy has not been
doing well enough to address the Millennium Development Goals (MDGs) and to make full use of the
economic opportunities created by two neighbors, India and the People’s Republic of China. The rural population is
predominant, at 85% of the total population. Although non-agricultural activities are gradually contributing more to
GDP, agriculture is still Nepal’s main economic activity, employing more than 80% of the population and providing
around 38-40% of GDP. Remittances are a major source of foreign exchange and of income for many households.
Households receiving remittances are increasing year by year as majority of youths are attracted to go abroad for
earning due to lack of opportunity in Country.
Besides Nepal’s geography and dispersed population, the insufficient use of information and communication
technology (ICT) is directly relevant to this low economic performance. The Government realizes that ICT is the
most effective way of lowering the country’s geographic barriers, enabling information and knowledge
management, providing new means of service delivery, introducing innovation, and thereby creating opportunities
for economic and social development. ICT access is an MDG target, as it is important by itself and can help
attain other poverty reduction goals and improve access to health and education services.
Ncell Pvt. Ltd. has been working in Nepal since 2005 as the first private mobile operator in the country. We are
committed to being the best local mobile network for the people living in the country. We provide services of
international quality with a local touch. Most of our employees are Nepali and our services are designed to meet the
needs of the local society.
We are constantly working towards our goals of connecting everyone in Nepal through our Ncell network, providing
high quality, modern and cost effective services and creating value for our customers and partners. Ncell is part of
the Axiata Group Berhad, one of Asia’s leading telecommunications group.
Axiata operates in ten countries with 25,000 employees and serves approximately 290 million subscribers. With a
diverse portfolio in mobile network operations, communications infrastructure services and digital services, the
Group pieces together the best in connectivity, technology and people in its vision of Advancing Asia. Together with
Axiata, Ncell contributes to the development of the country’s economy and infrastructure, building best-in-class
networks and bringing people in the remotest areas of Nepal within the reach of communications.
REVIEW OF LITERATURE
Shree Chandra Bhatta (1998) conducted research titled “Sales Promotion and its effect on sales: A case study of
Beer Market of Nepal” with an objective of finding out which mode of sales promotion is more acceptable by
the Nepalese consumers and which mode is more wisely used by manufacturers as sales promotional tools, to find
out the most suitable media to advertise about the sales promotion to evaluate the effectiveness of sales
promotional activities in sales of Beer in Nepal and to predict the sales of coming year if every factor remain
same.
Kishor Raj Aryal (2002) in “The study of Market Share of Colgate in comparison with other Brands” tried to
show that sales promotion, advertising, price and consumer behavious impact on sales of the product. It also
showed how it affects market share of Colgate. The research tried to find out the popular media of advertisement
for toothpaste, which can easily attract the potential consumers on each brand of companies, to identify the
competition of Colgate toothpaste the term of sales, to identify the buying behavior of Colgate toothpaste, and
to observe the impact of pricing factor on Colgate toothpaste.
Jyoti Shrestha (2007) in thesis entitled “A study on advertising and its impact on the buying behavior of the
consumer” dealt with finding out impact of advertisement on buying behavior. The objective of the study was to
find out the relationship between consumer’s attitude towards advertisement and buying decisions, to understand
the consumer’s credibility towards advertising and its effect on buying decision and to get insights about the
factors affecting consumer decision process. Thus the study show findings like advertising is the first effective
source of conveying information which affects consumers while making buying decisions.
Dipankar Raj Bajracharya (2007) in his thesis “Advertising and sales promotion of Samsung Television in
Nepal” conducted study on advertising and sales promotion activities of promotional mix. The objective of the
study was to evaluate the effectiveness of advertising and sales promotion for attaining and retaining t he market
share of television business in Nepal, to analyze the importance of sales promotion in building company’s
reputation, to review the market status of Samsung television, and to examine brand awareness of the
consumers. The study came up with findings that the advertising plays a vital role in sales of TV in this
competitive market and trade promotion is more effective way to increase the sales of the company.
RESEARCH METHODOLOGY
Data Collection Procedure
A Structured questionnaire was developed for the purpose of collection data from the Ncell mobile user who are the
real consumer. The questionnaire were distributed through personal contact and requested to the respondent to fill it
and the researcher also filled the questionnaire by personal interview with agent; sub agent and customer care
executives and receptionist. The researcher collected the secondary data from company Spice Nepal Pvt. Ltd, Ad
agency, and published advertisement in different for example general daily newspaper, television, radio,
hoarding board and through internet and websites. The researcher also collected relevant information from
published articles and researches regarding marketing communication mix / promotional mix.
Data Processing
When the researcher collected the response for the entire questionnaire they have been computed coded and
tabulated under different headings for the analysis purpose.
Data Analysis Techniques
Tables of data must be compiled percentage and average must be computed and comparison must be a set of
information that coincided with the list of needed information established in the second step of the research process.
Finally the researcher tried to find out the effectiveness of promotional strategy of Ncell in the society by getting the
questionnaires filled. Analysis has been made by percentile method. The research tried to find out all the objectives
of research through this research.
Consumer Survey:
Respondent Profile
Respondent Profile out of 100 questionnaires, all were distributed to the sample of real consumers who were
from Birgunj city. The following table gives the details.
Response received
Place Questionnaires Percentage
Birgunj City 100 100
(Source: Primary Data)
Interpretation
As evident from table, out of the total number of questionnaires distributed, 100% responses were received from
target respondents.
Age Group of Respondents
In Birganj city
Age Group yrs Respondents Percent
Below 20 20 20
20-30 50 50
30-40 10 10
40-50 15 15
50+ 5 5
Total 100 100
(Source: Primary Data)
Interpretation
Table 4.2 shows the age group of respondents who participated in the research. According to above
table, 20% of respondents were below 20 yrs of age (college going students), 50% of respondents were
between 20 to 30 yrs of age, which is highest age group among all. Percentage of respondents in Age
group of 30 to 40 years is 10%, while 15% were in 40 to 50 yrs age group. Respondents above 50 yrs were
only 5% which is lowest among all.
Conclusion
Among the sample, highest percentage of respondents i.e. 50% were from age group 20-30 while 5% of
respondents were above 50 yrs old.
Education Level of Respondents
In Birgunj city
Education Respondents Percent
Up to SLC 5 5
Certificate 10 10
Graduate 60 60
Master 25 25
Total 100 100
(Source: Primary Data)
Interpretation
Table shows the educational background of the respondents. Respondents with educational level up to SLC
level was 5%, similarly certificate level, graduate level and master level was 10%, 60% and 25% respectively.
Here, the rate of respondents whose educational level is Graduate is higher among all and up to SLC
level is lowest among all. As the research is about mobile service, so the school going person are not included.
Most of the respondents are student plus job holder with above 20 yrs age limit.
Conclusion
The number of respondents who participated in survey with educational background of Graduate degree is
highest among all and up to SLC level is lowest among all.
Profession of Respondents
In Birgunj city
In Birgunj city
Network Coverage 25 25
Hassle Free
40 40
Subscription
Interpretation
Table indicates that 95% of the respondents have seen the advertisement in different media. Only 5% of
respondent haven’t seen advertisement. This means Ncell is very popular among the respondents.
Conclusion
Maximum no. of respondents had seen Ncell advertisement. Only the few respondents hadn’t seen the
advertisement. One of the objectives of advertising campaign, i.e. to communicate to target audience and
making them aware of the brand is well achieved by Ncell’s advertising campaign.
If yes, can you name any of them?
In Birgunj city
Advertisement Responde nts Percent
One Paisa 10 10
Concert 10 10
One Hrs talk time 20 20
PRBT 5 5
MMS 5 5
Ramro tarrif 10 10
All above 40 40
Total 100 100
(Source: Primary Data)
Interpretation
According to above table out of total respondents, 10% of respondents had noticed One paisa campaign,
another 10% of respondents had noticed Concert, and 20% of respondent noticed One hr talk time which
is second highest among all. PBRT and MMS campaign had been noticed by 5% each respectively. The
recently launched one of the successful campaign called “Ramro tariff” had been noticed by 10%. As all
above advertisement is popular and specific, so 40% respondents had noticed all of the advertisement and
which is highest among all option.
Conclusion
Maximum No. respondents had noticed all of the advertisement of Ncell. The respondents who had noticed
PRBT and MMS are very low in comparison to others.
Do you think advertisement provides us with valuable information about product features?
(In Birgunj city)
Option Responde nts Percent
Yes 71 71
No 29 29
Total 100 100
(Source: Primary Data)
Interpretations
Table shows that the respondents who thought advertisement provides valuable information about product
features is 71% and the respondents who have opposite thought is 29%. Highest group of respondents
believe that through promotional activity they get information about the product features which is available in
market and help them to make buying decision. And small group of respondents have different feeling
according to their behavior.
Conclusion
Maximum No. of respondents believe that advertisement provides valuable
information. Only few respondents denied it.
Has regular advertisement in different media been able to create positive response towards
particular product?
(In Birgunj city)
Option Respondent Percent
Yes 82 82
No 18 18
Total 100 100
(Source: Primary Data)
Interpretation
Above table indicates at 82% of respondents believe that regular advertising in different media have been able
to create positive response towards the particular product while 18% of respondents doesn’t believe that
regular advertising can provide positive response towards particular product.
Conclusion
Maximum no. of respondents agrees regular advertising obviously provide positive response towards particular
product.
Brand Awareness
The cost of winning new customers is much higher than retaining and cross selling to existing customers, so
brand awareness is important economic factor in profitable brand development. So, the researcher tried to
know about brand awareness through simple question like “what factors cause the brand awareness of Ncell?
“For brand awareness which promotional tools are most effective?”
What factors cause the brand awareness of Ncell?
In Birgunj city
Factors Respondents Percent
Promotional Blend 70 70
Service Feature 15 15
Service Charge 10 10
Others 5 5
Total 100 100
(Source: - Primary Data)
Interpretation
According to the table, 70% of respondents which is the highest no. of respondents were aware about the
particular brand through the help of promotional blend. 15% through service feature, 10% through service
charge and 5% through other factors. Ncell had launched various campaigns to promote brand in initial
period to date to create brand awareness which seems successful by obtaining the result of above table.
Conclusion
Promotional blend is succeeding to create brand awareness among maximum no. of respondents.
For brand awareness which promotional tools is most effective?
In Birgunj city
Promotional Respondents Percent
Advertising 47 47
Sales Promotion 20 20
Public Relation 28 28
Others 5 5
Total 100 100
(Source: Primary Data)
Interpretation
According to above table, though having such strong competitors like Nepal Telecom, Ncell is success to
aware respondents about new brand in GSM mobile service due to effective communication mix tools. As a
result, 47% of respondents were aware of Ncell brand by advertising, 20% through sales promotion and 28 %
from public relations and 5% through other factors.
Conclusion
Among all promotional alternative advertising is indispensable factor for brand awareness of Ncell.
Market Competitors in the feeling of Respondent
Nepalese Information Communication Technology (ICT) service system, especially GSM Mobile service till
sep17, 2005 was not competitive because there was monopoly market which was run by NTC. But after
September 17, 2005 when Ncell Pvt. Ltd. Launched its GSM Mobile service both post and prepaid with brand
name called Ncell market become competitive. So, through this research, researcher wants to show how the
respondents feel about both services. So the research had asked very specific question regarding the subject
matter like, “Do you think Nell is strong competitors of NTC?”
“If yes, what must be factor?”
Do you think ‘Ncell’ is strong competitor of NTC?
In Birgunj city
Option Respondents Percent
Yes 68 68
No 32 32
Total 100 100
(Source: Primary Data)
Interpretation
According to Table, 68% of respondents think that Ncell is strong competitors of NT because within very
short period of time Ncell become popular among the respondent through promotional strategy, 32% of
respondents still don’t think that Ncell is strong competitors of NTC because they are loyal to their existing
brand. But largest no. of respondents believes that Ncell is strong competitors of NTC.
Conclusion
Maximum no. of respondents think that Ncell is strong competitors of NTC and only Minimum participated
respondents feel there is no competition among them.
If yes what must be the factors?
In Birgunj city
MMS
30000
(Multimedia Messaging Service)
PRBT
35000
(Personalized ring Back Tone)
Access 350000
Recharge Card 15000
Ramro Tariff 450000
Concerts 200000
Dashain and Tihar Schemes 30000
Testimonials 50000
(Source: - Ncell Pvt. Ltd.)
The above table attests to the fact that the expanding community of subscribers of Ncell has much to do
with the well- orchestrated promotional campaigns. Thus, the most successful campaigns were One hr Talk
time and Ramro Tariff. The total number of subscribers the Ncell has achieved till date stands at 95, 53,404. As
such, as per the above table 87, 89,131 no. of subscribers were achieved from the consumer promotion and the
rest are from other activities.
Consumer Promotion vs. other Activities
Consumer Promotion Vs other Activities
The above fig shows that Ncell subscribers are increasing at a healthy clip owing to the effective promotional
strategies rather than other activities.
Trade Promotion
There isn’t any trade scheme provided by Ncell to any dealer. But they can get 2% to 5% commissions on
different products. This fact also implies that the strong brand image earned by the Ncell can safely be
ascribed to productive advertising gimmicks of the brand.
Increasing Sales
Sales of Ncell are in increasing trend from its starting period till now. The exponentially rising indicator of the
sales volume of the brand also suggests that the advertising campaigns of the Ncell were efficacious.
Selling through various outlets
Selling Figure of Outlets
Ncell h a s two dedicated customer care centers located in different parts of the country where it has its
network. There four agent and more than 1300 subagent is available now.
Most effective Promotion
Effective Promotion
This graph also indicated the advertising should be the indispensable tool of the marketing protocol of the Ncell.
Problems organization sense is ensuring effective business
Problem Making Effective Business
The volatile political situation can be termed as the major obstacle for the smooth growth of any business
venture. Such being the scenario, it appears clear that the role of customer-centric should be stronger in this
regard.
Major Finding:
Major Finding of the study of Consumer survey
Main objective of the study is to identify response of audiences of Ncell, identify the brand awareness of
Ncell and to identify the promotional tools adopted by Ncell. The research is mainly focused on consumer point
of view. So, the following findings were drawn from consumer survey.
1. The maximum respondent age fall under 20 to 30 while having consumer survey.
2. The no. of male participants were higher than female.
3. Most of the respondents were graduate and jobholders with having average income level.
4. While buying respondents always gives preferences to service features and facilities more than
price.
5. Respondents buying decision regarding to mobile services are highly affected by good Network
Coverage & Service Features.
6. Respondents have positive response towards the advertising of Ncell.
7. Most of the respondents have noticed all of the ad campaigns, but One Hr Talk is highly
appreciated among all of the ad campaign.
8. Among all promotional alternatives, advertising is most powerful tool to create brand awareness
of Ncell.
9. Ncell is strong competitor of NT ascertaining through consumer survey.
10. Respondents feels Ncell compete with NTC due to its sales promotion trends, network coverage,
Easy to get Sim Card and Heavy publicity.
Major finding of the study of Trade Survey
While performing trade survey, questionnaire interview were conducted with representatives from Agent, Sub-
agents and customer care center. And secondary data were collected from executives, officers and managers
of the Ncell Pvt. Ltd.
On the basis of research analysis of trade survey those findings can be drawn:
1. Ncell provided its service through customer care service, located in various part of country.
2. According to research approx. percentage of selling through various outlets: Customer care 5%,
Agent 2% and others outlet 12%
3. According to survey reports obtained from Ncell office demographic data: Total population of
Nepal is 265 million approx. out of which 5 million is urban population and total youth population
(age 14yrs to 20 yrs) 19% out of which No. of NTC Mobile users – 85, 95,771 & No. of Ncell
users – 9553,404 which indicate that within short period of time Ncell have invigorated its foothold
in the market.
4. Sales of Ncell are at increasing trend with daily sales of approx. 2500 new subscribers per day.
5. The most successful campaign is one hr talk time and Ramro tariff through which 400000 and
450000 new subscriber achieved respectively.
6. The most effective promotional strategies according to trade survey are advertising, then sales
promotion and then public relations. Direct marketing and personal selling is not yet in practice.
Conclusion
The study shows that promotional campaign of Ncell service directly impact to its sales volume. Through
different campaign the service has grabbed large no. of subscribers. The study also tried to find out the most
desirable feature of mobile service. Number of respondent used Ncell service as they perceived it has least
network problem, and it provides lots of facility like free talk time, MMS and Ramro tariff. Nobody have
enough time to involve in same problem for long time. So, Hassle free is also most effective service of Ncell.
Sales promotion and advertisement are the most attractive promotional strategy used by the company to
communicate with the consumers. One hr talk time, Ramro tariff is the most successful campaign.
The total no. of subscribers which the Ncell has achieved till date stands at 95, 53,404. As such, 87, 89,131
no. of subscribers were achieved from the consumer promotion and the rest from other activities. Ncell
subscribers are increasing at a healthy clip owing to the effective promotional strategies.
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www.ntc.net.np
www.ncell.com.np