Key marketing strategies: SPICE and TATA


Consumer behaviour is an important region for marketers specifically for service industry where customer is given the best priority. For your marketer it's very much important to understand the behaviour of consumer. In addition, it helps the business to make the long term profit. In today's competitive market customer is given the preference. Something launched by the business is launched based on the needs of the customer. For trading the merchandise successfully marketers must have a good understanding and they should target specific group of individuals who will be interested in their product. Marketing helps the business grow faster with stability. It really is an important aspect of business which helps the company to increase its productivity and helps in providing the customer the valuable information about the product. A firm can perk up its online marketing strategy by studying the clients. The study focuses on factors affecting the purchasing behaviour of the customer and give ideas which can only help marketers to advertise their product accordingly. As the researcher of this report is from technical background and has keen curiosity about the telecom sector. Therefore this dissertation is taking destination to further develop the researcher's knowledge in this field.

In order to market products successfully marketers should make an effort to recognize and aim the particular groups thinking about their services and products

"The dimension of study in the post modern era is approximately 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 account in order to come up with the important factors which is often used as marketing approaches for the promotion of the merchandise and services.


To uncover what are the key marketing strategies for the survival of the indigenous telecom company "SPICE" and also other national company "TATA".


This research is targeted on the telecom companies in India and their marketing strategies employed by the companies that assist those to sustain themselves in the tuff competition.


Finding out most effectual means of communication with the clients to market our product.

Increase product awareness among the list of audience.

Inform market about great things about our product and its own competitive advantage.

Finding out the impulse which contributes to purchasing decision.

To signify the necessity of bonding with the clients.

The findings of this research are anticipated to be relevant to the Indian telecom Companies by serving the firms to structure the promotional strategies which will help the firms to create a strong bond with the clients.

The main purpose to handle this research is to investigate and to reframe the current advertising planning of the merchandise with the culture based approach.

Research work

Mainly the questions used for research of this good article will be focussed to discover

Present situation of the Indian Telecom market.

Advantages of using online 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 completed to discover the market gap and also in order to get knowledge about the currently used marketing theory.

Literature review

Introduction to Marketing

Marketing may be looked as the wide selection of activities involved with ensuring marketers are continuing to meet up with the needs of the customers and are receiving value in exchange.

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

Great team work and a well planned strategy are essential for a marketing campaign to reach your goals. The organizations should identify the customers and make an effort to focus on them

"The central idea of marketing is of a matching between a company's capability and wants of customers to be able 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 accompanied by the organization to attain their respective targets.

According to Kotler

"Marketing strategy is the marketing logic where the business unit expects to achieve its marketing objectives. Online marketing strategy contains making decisions on the business's marketing expenditure, marketing mix and marketing allocations with regards to expected environmental and competitive conditions".

In today's date when the market is so advanced with the new inventions approaching. In that tuff competition planning a marketing approach to be accompanied by the organizations is not simply a easy, its one thing very much multifaceted. As the approach planned by the marketers may be already utilized 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 organizing according to current status of the market. With correct way of approach towards the market a company makes it products most demandable among the clients and consumers.

The basic difference between customer and consumer is

Customer: the individuals who have the potential to work with the product and services proposed by the organization. But these people enquire about the offerings but don't purchase it.

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


Culture is a little word to listen to also to be bought in daily use but it holds a huge meaning alone. It might be grounds for the success or fall of the company. The organizations are targeting folks and folks living in various 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 involved with it. Company mainly targets 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 prospective audience marketers should think about importance of language and culture. Marketers should speak in consumer's language since it increases the likelihood of success for the business. SPICE TELECOM is a tiny company when compared with TATA TELESERVICES. Spice is actually serving two states of India, Karnataka and Punjab and Tata is serving complete India. These both states are extremely much not the same as each other in every respect for example way of living, their language, there beliefs and values i. e there culture. The neighborhood language for Punjab is Punjabi as well as for Karnataka is Kannad. Both languages are completely different in speaking i. e there is no similarity in both languages not even in conditions 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 value of culture in existence for the business.

Culture was explained as "an over-all procedure for intellectual, spiritual and aesthetic development'' and a ``particular way of life'' (Williams, 1976)

In telecom industry to meet all the customers globally the business must do its business differently for each area of the country because difference of culture exists atlanta divorce attorneys part of country. To reach people globally company must act locally for every single 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 significant field for the organizations in context with their businesses and the researchers accepts that the trustworthiness of the business goes hand in hand with the values of culture, without conflicting at any point.

Not only the culture of the marketplace and folks but also the organizational internal culture is equally very important to 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 supply them with the norms for behavior in the organization'. 14 Thus, a 'culture-to customer' philosophy identifies one in which the organization initially obviously defines its own culture and communicates the view of this culture internally, and from then on its basic values are made clear and observable to the clients. Then your customers are able to identify and bond with the organization, for a specific service or product that Finding a communication channel where your prospects will probably buy is the key to success in virtually any business. matches their own needs and principles.

Approach of Product Promotion

Effective marketing promotional method of the customers can have a direct effect on brand positioning. Promotion approach to the marketplace helps the marketers to attract the buyer behaviour to up to vast extent; it offers the possibility to the marketers to look for the demand of the merchandise among the clients. If the merchandise is not performing well on the market then with a well planned promotion strategy it can be given new heights. Even after implementing the new strategy the merchandise does not performs well the promotion of that product can be withdrawn without affecting the image of the organization.

An effective promotional planning assists with increasing the sales for the organizations by ensuring that customers know about the organization and what the business is offering. The promotional marketing strategy should be aimed to target the desired customers whenever a new goods and services is launched on 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 generate consumer demand for the merchandise.

Pull selling approach is the one that requires high costs on advertising and buyer marketing to build up person demand for that for consumption.


Consumer behaviour refers to the emotional and mental procedure for the consumer during the purchasing and post consumption of the assistance 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 necessity of the buyer. The revenue of a business enterprise is made 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 create its business. Culture in addition has 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 encounters to satisfy desires and needs. "

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

Marketers should be able to alter the behaviour of the clients to a favourable status for promoting their product. The grade 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 accumulating relation with the client such as costumer services and support after sales to the clients.

Need Recognition & Problem Awareness

Information Search

Evaluation of Alternatives


Post Purchase Evaluation

Branding (brand loyalty)

"A brandname is a name, term, sign, symbol, or design, or a combo of these designed to identify the products or services of one seller or group of sellers also to differentiate them from those of competitors" (Kotler. P. 1996). To make a technique of the product branding plays an important role. As per brand loyalty is concerned it is mostly seen in individuals 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 into the brand they mostly go to discover the best offers. A robust brand name is very much advantageous for the business because it has a solid command over consumer loyalty. People go for the brand ignoring the other brands available in the market even though they are getting fewer offers by that brand just because a strong brand name means that it'll deliver values, personality, attributes and benefits for the customers. Sally Dibb () defines brand loyalty as "a strong motivated and long-standing decision to buy a specific product or services". A lot of the company online marketing strategy is dependant on to reassure ongoing customer's support for the company because it helps the company to have 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 improve.

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 critical indicators mentioned above the main factors are brand equity and trust. Sally Dibb (1997) defines brand equity as

"The marketing and financial value from the brand strength on the market".

Major components of brand equity are:

Brand Equity

Brand association

Percieved brand equity

Brand Name Awareness

Brand Loyalty

Customer's attitude is a requirement of true loyalty to occur. Aaker (1991, p. 15) defines brand equity as "a couple of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by something or service to a company and/or to that firm's customers".

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

on consumer respond to the marketing of this brand.

Effective medium of communication:

Before choosing the way of communication with the customer's marketers should focus on the region to be targeted where they can find a profitable market for the company that may benefit the company's status. To make something successful it should be marketed effectively. Marketers should also focus on choosing the way of communication (advertising) with the clients because the success of the product depends upon a powerful marketing. Companies fail on the market place because their strategies are ill-conceived, poorly prepared and badly executed with regards to those of their competition (James Barrie, 1984). For the success of the business enterprise it is very much very important to the marketers to find the most effective way of communicating with the customers. Nowadays customers are very intelligent, they prefer to confirm the authenticity of the product or service they will purchase. The mode of authentication which a person may use may be of different types like: person to person, internet, and the rely upon the brand (brand), some legal information which certifies their authenticity.

The way where the organizations communicate with the customers is recognized as media. Media are of several types

Print media (newspaper, magazines, pamphlets)


Voice media (Radio)

It is very important to the marketers to find the most efficient way of communicating. The mode of communication used by one business may be befitting 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 progress using their marketing strategies. The thinking about 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 generally 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 something. It also assists with informing large group of individuals at once about the product once it's launched or is to be launched in near future. Its aim also includes influencing the visitors to take a required action such as consuming the product.

Advertising is being aimed in the direction for possible client. This process is planned in a way so that process creates an impressive image of the brand in the market which has a confident impact on the customers.

Advertising is important for the current status of the society, it is a means used for mass promotion by the organizations, so a common message is being communicated to everyone. It is a medium of informing the clients and keeping them updated about services arriving or found its way to the market. It can help in spreading the knowledge for the products or services that are of help for the clients. For successful marketing not only effective way of marketing is important but also the merchandise which has been promoted should be potential enough and really should be in line with 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 after the factor of size of organization. Every business to survive in the market must market its product or services.

Advertising can be split 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 number of marketing mediums to attain 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. On this research different aspects are assessed and analysed so for the more of qualitative data is employed when compared with quantative data. "Qualitative research is particularly 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 implies that telecom sector is getting saturated and in the current business running conditions the business which is customer focussed and share a great bonding with the clients can achieve success. The marketing strategy to approach the customer includes a combination of technology and communication

In this revere this study aims to place forward an advertising strategy which is ready enough to carry the existing tendency on 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 led to foundation of theoretical concept known as post- positivism.

"For the post- positivist researcher the truth is not rigid thing, instead this can be a creation of these individuals mixed up in research. Reality will 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 depends 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 most foreign telecommunication companies to create the Posts, Telephone and telegraph (PTT), a monopoly run by the governments Ministry of Communications


Department of Telecommunications (DOT) established, a special provider of domestic and long distance service that might be its regulator (separate from postal system)


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


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 through the month


Fixed line segment

Wireless segment

Low cost by the company for the assistance 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 actual fact that target may be moving, the prospective composition may be changing, and therefore 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 company 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 business that, they'll able find out the necessity, aspiration and a reaction to a particular product or service, which is main reason why the tiny and medium enterprises (SMEs) are believed as important generators of economic growth.

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

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

Ethical considerations

The approval of interviewees were obtained beforehand to be a part of this study and the respondents were proficient in the purpose of the research. Having less restrictions for the interviewees was ensured and it was contracted that they could withdraw from the study at any point. The research was carried out following the consideration of the main element ethics outlined by Collis and Hussey (2003):-

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

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

Dignity the research was completed in such a way that the participants in the research aren't embarrassed or ridiculed.

Publications never to insist upon any research findings and the research was undertaken in a way in which no bad light was casted on any individual interviewed.

Literature review predicated on Indian Telecom Industry

Telecom sector is one of quite sectors for the Indian Economy. The telecom industry is one of the speediest growing industries in India. This sector is split into two segments:

Fixed service provider

Mobile services

Mobile services can be further split 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 neuro-scientific telecommunication advertising (marketing) is a way of communication with the customers. So it is very much indeed important for the company to understand the customer's viewpoint so that appropriate marketing strategy can be used to attract the clients. India is a very big country and with lots of different cultures with in, therefore the marketing strategy differs a lot for each and every region. For instance to attract potential customers from the metropolitan cities the approach of the business changes when compared with 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 significant growth from 6. 4million in March 2002 to 350million in December 2008 at a compound twelve-monthly 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 you can find a sizable 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 higher rate. Apart from national players there's also companies which can be acting on an area scale in this market for example Spice. People like themselves to be associated with a brandname name

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


Recent what 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 after the recently certified new telecom operators start rolling out

6. Services.

7. Increased thrust on telecom equipment manufacturing and exports.

8. Reduction in Mobile Termination Charges.

9. Because of 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 produced from the literature review. The methods of research used give an understanding about the existing marketing strategies accompanied by the firm and also about the Welsh consumer behaviour and their bondage to the cultural values. It is clear that consumers are incredibly complex and unique in how and when they choose to consume abroad. It is also clear that whenever the post modern marketing concepts are considered the current marketing strategies accompanied by the organisation cannot be called as perfect.

Section 1(a): Creating awareness about the existing 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 clients but through the use of 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 only loyal behaviour by the organisation can only just achieve the loyalty of the clients. Airtel marketing strategy is definitely successful to provide 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 focus on new generation customers.


"Our key customers will be the working class group, advanced in neuro-scientific technology and who always run out of their time. Wi-Fi was enabled in every the restaurants in order to serve them better and also to make them feel that we look after them".


To get the data about the online marketing strategy of TATAINDICOM, an interview was fixed up with the region manager of Delhi.

The Manager explained very well about the strategy of the business. Manager explained that the success of the business was based upon the technology employed by the business i. e CDMA. This technology is preferable to the technology used by others such as AIRTEL, VODAFONE, IDEA. GSM technology is being used by this company to serve the customers.

The interviewee also stated that through the stages of recession organisation was positive; TATA introduced new schemes both for the postpaid customers as well as for prepaid customers (pay as you go). By introducing these schemes for the clients the organisation could cope up with the hit of recession and also made them possible to attract new customers who were hard pressed due to the recession.

Among all the sectors telecom sector was least afflicted because telecom is one of the basic necessity of men and women nowadays. Some what sort of decline in use of telephone was recorded during the time of recession. But the new schemes launched by the company, the company was easily able to cope up with the ongoing losses,

When the interviewer asked about the several kind of promotional scheme to serve different group of people,

Apart from the promotional schemes the better network connectivity was seemed to be another reason of promotion, the manager explained that the promotional schemes and better connectivity continually used by the organisation, which help the business to attract new customers and maintain the prevailing one as well.

Target customers:

the interviewer could realise from the words of the manager that Burger King's target audience were the young generation aged between 18 and 35, likely to have fast food 5 to 8 times every fortnight.

The interviewee classified the marketplace segments of the organisation as

Teen agers: the followers of 'cool people'.

Working class: The people who have a busy schedule.

The youth: always busy in looking for new schemes.



Questions for customers:

1. Which kind of connection do you prefer?

Post-Paid Pre-paid

2. Whose service(s) are you using now?

BSNL Vodafone Reliance Airtel Idea TATA

Which technology do you like? GSM CDMA Both

4. Just how long have you been using the current connection of your company?

Less than 6 months 6-9 months

9-12 months A lot more than 1year

5. The type of expectations have you got from your company?

Better service Network Price Value added services

6. Just how much is your expense for the connection?

Up to Rs. 300

Rs. 301- Rs. 1000

Rs. 1001- Rs. 1500

More than Rs. 1500

7. How do you find the behaviour of customer support executives of your service provider?

Professional Not Responding


8. Given an option with same number, which provider do you want to select?

TATA Vodafone Airtel

Reliance Idea BSNL

How do you want to rate the next attributes for your providers? Please tick ( ) the correct



Very Good




Very poor


Call charges





Message Service




Billing system


Voice clarity


Quick SMS service for balance


Internet Service


Call performance & reliability


Value added services


Talk time & validity



image & Ads

10. According for you, which Value Added Services appeals the best?



11. What do you are feeling about the most advanced technology being offered by the provider like




12. What do you consider about your competition in market from telecom operators?



13. What factors do you consider upon while going for a new connection or switching onto a

different operator?



14. According to you does media plays an important role in branding the merchandise and

providing customer satisfaction?



15. According for you what is the scenario if the telecom operators are not present to

provide services?




Questions for Company:

On which kind of connection would you concentrate more?

a) Pre-paid b) Post-paid c) Both

2. When do you launch new schemes?


3. What factors do you consider while launching a new scheme?


4. Which Strategy will you implement to obtain clients?


5. Which strategy can you implement to retain customers?


6. Does one do any pilot project before launching any product to know customers preference?

a)Yes b) No

7. How do you solve problems of customer?

Do you have any grievance handling department to resolve customer's problem?


9. According for you so how exactly does technology and network play role in customer satisfaction?


On which value added service you focus more?


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