THE IMPACT OF ABOVE THE LINE PROMOTION TOOLS USED IN THE TELECOM SECTOR - A CASE STUDY OF RELIANCE COMMUNICATIONS IN WESTERN UTTAR PRADESH CIRCLE, INDIA
Journal Title: European Journal of Business and Social Sciences - Year 2014, Vol 3, Issue 4
Abstract
In 2006, Reliance Communications (RCOM) had commenced its operations in Western Uttar Pradesh (UP), India and it had to face serious competition from the leader, Bharati Airtel Limited. On the other hand, there was an onslaught from players like Vodafone, Tata Teleservices Ltd., and the state-owned Bharat Sanchar Nigam Ltd (BSNL), which were also expanding their wings in Western U.P. Moreover, the market was expected to observe the entry of more Indian and foreign companies. RCOM which had responded to capitalizing heavily in expanding its network, technology, and sales and marketing, was trying to cover all segments of the population, from the tech-savvy young population who coveted the latest value-added services (VAS), to the Bottom of the Pyramid (BoP) segment who would be satisfied with a low-cost offering. In light of the abovementioned, this study aims to identify whether the ‘above the line’ promotional strategies adopted by RCOM have an impact on their sales revenue. . Brand Reliance Communication was chosen as a case study since it has emerged as a market leader with maximum penetration in the Western U.P. Circle market. By applying the principles of cost leadership, differentiation and strategic focus, manufacturing economies of scale, and innovative marketing strategies, RCOM has attained global levels of competitiveness. The study describes the result of a survey conducted among the distributors, retailers and company personnel of RC. By using correlation, chi-square, one-way ANOVA and Bonferroni PostHoc test to analyze the data, the findings suggest that with the help of aggressive marketing campaigns or strong above the line promotional activities, RCOM has constantly led the telecom market of Western (U.P) Circle. However it also became evident that Internet advertisements would have a wider scope in the future in Western (U.P) Circle.
Authors and Affiliations
Dr. Abhinanda Gautam| Senior Facilitator Regenesys Business School Johannesburg Mob +27(789024127) E-mail: abhinandag@regenesys.co.za
Keywords
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