Innovative Marketing Strategy: Balancing Commercial Goal and Corporate Social Responsibility [1 ed.] 9789350431375, 9788184885279

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Innovative

Marketing Strategy: Balancing Commercial Goal and Corporate Social Responsibility

Editors Dr. Kamal Gupta Dr. V.B. Angadi Dr. M.R. Das

~ Gflimalaya GpublishingGfIouse MUMBAI • NEW DELHI • NAGPUR • BANGALORE • HYDERABAD • CHENNAI • PUNE • LUCKNOW' AHMEDABAD • ERNAKULAM' BHUBANESWAR' INDORE

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@

ISBN

: 978-81-84885-27-9

First Edition: 2010

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Contents • _ _ _• _ _ _ • ___ •

___

• _ _ _ _ _ . . . _ _ _ _ _ _ _ _ _ _ .T

~

..

Sr. Author's name No.

_ _ _ ~ _ _. ._ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_

!

Title

1.

Shri R. C. lyer

Inaugural Address

11.

V. P. Kamath

Innovative Marketing Strategies Rural Perspectives

lll.

IV

1.

No. of pages

1-4

5 -14

Shri B. Jayaraman Balancing Commercial Goal and Corporate Social Responsibility

15 - 16

Dr. V. B. Angadi Innovative Marketing Strategy: & Dr. M.R. Das Challenges & Opponw1ities (BackgroW1d Material of the Seminar)

17 - 38

Dr. Kamal Gupta Evolution in Agricultural Marketing in India

39 - 44

2.

Dr. S. L. Kwnbhare & Shalini Yadav

Rural Marketing and Farmer's Clubs

45 - 57

3.

Dr. G. D. Banerjee

Tea Marketing is no more a Fashionable Slogan in India

58 - 95

4.

Dr. B. B. Sahoo

Value Chain Finance in Agriculmre: Business Opportw1ities for Financial Instimtions 96 - 109

5.

Prof. H.I. Bhasin Innovative Marketing Mix Strategies llO - 114 - A Rural Prespective

6.

Dr. M.R. Das

Retail Marketing

115 - 126

7.

Shri Sugam Chaubal

From Farm-To-Fork- Some Challenges

127 - 133

Prof. Haresh S. Raulgaonkar

Down to Earth innovation: The key to success in Rural Marketing

134 - 148

8.

9.

Dr. S. V. Kulkarni

Current and Innovative Marketing Strategies for Rural India

149 - 172

10. Shri.Harish Kute Marketing Strategies to Retain Customers for Survival and Growth 173 - 177 II. Prof. Aditi Raut

Sula Wines: Breakng new ground with innovative Markting Strategies 178 - 188

12. Prof. Vinay Pandit

Innovative Marketing Strategies in Current Business Environment - A Special Reference to Celluar Service 189 - 197 Providers

13. Shri. Deepak Mathur

Changing Proftle of Banking Development in Rural India

14. Dr. Vinay Sabhahit & Ms. Mrinali Tikare

Innovative Marketing Strategies for Private Medical Practitioners -Mumbai

15. Prof. Anusha Patil

Employee Empowerment in Malls: The Influence of Personality 226 - 237 Variables

16. Prof. M. Gowri Shankar

Successful Innovative Marketing Strategies

238 - 252

17. Prof. Shilpa Choudhary

Innovative Strategies in fertiliser Industry

253 - 270

198 - 215

216 - 225

18. Mr. Rohit Kmnar Corporate Governance - An Insight 271 - 286 19. Ms. Khushboo B. Shah

Consunler Response to Private Labels

287 - 307

20. Mr. Sahil N ayar

Human Resource Branding

308 - 315

2I. Mr. Hitesh Sidhwani

Gold, Oil & USD: A Linkage

316 - 320

22. Mr. Manan Kashyap

Cellular Service Industry in India A Need for Innovative Marketing 321- 354

(i)

INAUGURAL ADDRESS - Shri R. C. Iyer*

As a matter of fact, I consider it a privilege to have been asked to inaugurate this seminar on "Innovative Marketing Strategies Rural Perspectives", and I must particularly thank the management for giving me this easiest of all the tasks, that of inauguration. I am sure the deliberations will draw useful lessons and conclusions for future use of all present. I must admit that my own experience with rural marketing has been rather limited, with postings in the Maharashtra Cooperative Marketing Federation and in the Cooperation Department of the Government of Maharashtra, and that I have had no exposure to the private sector in this field. Particularly at this juncture, with a recession in the economy caused by a global downturn, there has been good news on India's rural front. The published figures of sales of mobile handsets and of motorcycles show that sales have nearly doubled ih the first two months of this year compared with the figures for the corresponding period last year, and motorcycle sales have also gone up by more than 20% for this period. Similar growth has been registered in many other areas, including consumer durables. The higher support prices for foodgrain announced by the government over the last * Shri. R.C.Iyer is a retired lAS Officer. He was formerly Additional Chief Secretary, Govt. of Maharashtra.

2

InnOl'ative Marketing Strategy: Balancing Commercial Goal and...

few years has translated into increased purchasing power in the hands of the rural conswners, and the present seminar has therefore been indeed well timed. Marketing strategies in the rural areas will naturally depend on what product we are trying to market. To illustrate, are we marketing a "financial product", a fast moving household consumer goods, a consumer durable, a food product (finished or raw), a media product, or somedling else. The strategies will differ from product to product, and, in order to draw lessons for the future, it should be possible to exan. :ne "success stories" from known past examples in each field.The microcredit revolution ushered in by Dr. Mohammad Yunus through the Grameen Bank in Bar..gladesh, where poor women got together into "self-help" groups, and showed that the collateral securities demanded by conventional banking is not necessarily the best method of securing loans, is a useful innovation in the marketing of "financial products" in rural areas, which has been replicated everywhere, including in India. The "housing bubble" in the West has sent conventional models of financing for a complete toss. We have nwnerous other success stories. The Amul example, pioneered by Dr Verghese Kurien, is also known to all. The marketing methods were (and continue to be) highly practical, starting from the use- friendly type of packaging for all the milk products, and an effective dealer network.Hindustan UniLever Limited (previously Hindustan Lever Limited) have always been well known for their marketing strategies in rural areas, and have, over the last few years, come up with their "Project Shakti", which now spreads over 50,000 villages with populations of less d1an 2,000 each, and has achieved the multiple objectives of increased sales of their low end conswner products in rural areas, empowerment of rural women below the poverty line by appointing them as "shakti entrepreneurs" in each village for the sale of products, publicity for their goods, as also of corporate social responsibility. Their "Shakti Vani" programme also publicises and encourages hygienic practices in rural areas. Similar

Inaugural Address

3

success stories from other corporate houses, such as the ITC group, are also well known. Marketing of food products in rural areas presents an important challenge in India, where food adulteration is rampant. Packaged and branded products, at affordable costs offer opportunity for innovation. It is also important to ensure, by using better and biodegradable packaging, that the volume of litter in the countryside does not go up, like in the urban areas. The world is already grappling with the problem of waste disposal, and marketing strategies should not add to this problem. Any good marketing strategy should combine the objectives of profitability with the need for social responsibility; as also of environmental concerns. Normally, marketing strategy is derived from four Ps - namely Product, Place, Price and Promotion. Recently, three more Ps, viz., People, Package and Policy environment are added to the list of Ps, which are supposedly forming the basis for marketing strategy. Implicit goal of such marketing strategy is to maximize sales or earn maximum profit. The question to be discussed is whether it is possible to go beyond this narrow basis of marketing strategy. To my mind, it is not impossible to conceive marketing strategy which aims at not only at maximization of sales or profits but also achieving certain social goals/social responsibilities like empowering women or weaker section of the society; reducing the volume of non-biodegradable wastes etc. Apparently, the above mentioned commercial considerations and societal concerns are conflicting. Perhaps it may be one of the reasons as to why the majority of corporates do not try to integrate these goals. In this connection, it is interesting to note that those companies which have struck a fine balance between commercial considerations and societal concerns in formulating marketing strategy, are reaping good results. Their marketing strategies (to name a few) such as "Project Shakti", "Shakti Y.'1ni" selling new financial products and services through formation of Grameen Banks products and services in Bangladesh and AMUL products

4

[muTI'ative Marketing Strategy: Balancing Commercial Goal and...

and services for sale of milk procured from rural and sold in urban areas, etc., are also a good examples of success stories of imaginative marketing strategies. Once again, allow me to thank all of you for asking me to inaugurate this conference.

+ + +

(ii)

INNOVATIVE MARI 0.05 Since the Critical value of Chi-square (11.070) is greater than the calculated value (5.921) and p > 0.05, we cannot reject the null hypothesis.

CeUular Service Industry in India - A Need for Innovative Marketing

335

Therefore, Brand choice is independent of gender of the customer (C) Cluster 3 : Housewives Demographic Factor: Age group Ho: Brand choice is independent of age group of the customer HI: Brand choice is dependant on age group of the customer Table 8 Age Group

21-30 31-40 41-50

yrs.

yrs.

yrs.

Total

51-60 Above yrs. 60 yrs. 2 1 0 2

Service VODAPHONE

0

1

2

Provu- AIRTEL der

2

2

2

MTNL DOLPHIN

0

1

0

0

0

1

BPLMobile

4 0

0 3

0

0

4

2

0

0 0

0 6

1 8

0 6

0

0 1

1 25

RELIANCE Mobile Others Total

4

6 8

5

Source: Survey Chi-Square Test VALUE Pearson Chi-square

27.361'

No. of Valid Cases

35'

df

ASYMP.SIE(2-SIDED)

20

.215

a. 30 cells (100.0%) have expected count less than 5. The minimum expected count is .04.

Degree of freedom = 20 Level of Significance = 5% or 0.05

336

Innovative Marketing Strategy: Balancing Commercial Goal and...

Hence, the critical value of Chi-square = 31.410 Also at a level of significance of 0.05, p = 0.125, which means that p > 0.05 Since the Critical value of Chi-square (31.410) is greater than the calculated value (27.361) and p > 0.05, we cannot reject the null hypothesis~ Therefore, Brand choice is independent of age group of the customer

DEMOFRAPHICS & BRAND SWITCHING (A) Cluster 1: Office-Goers 1. Demographic Factor: Gender Ho: Change of service provider is independent of gender of the customer HI: Change of service provider is dependent on gender of the customer Table 9 GENDER

Likelyhood

MALE

FEMALE

Very Unlikely

29

Unlikely Neutral

14

21 6 16 4 4 51

Likely Very likely Total Source: Survey

14 1 4 62

TOTAL

50 20 30 5 8

113

337

Cellular Service Industry in India - A Need for Innovative Marketing

Chi-Square Test

Pearson Chi-square

VALUE

df

ASYMP.SIE(2-SIDED)

3.706"

4

.447

No. of Valid Cases

125

a. 4 cells (40.0%) have expected COW1t less nan 5. The minimum expected COW1t is .2.48.

Degree of freedom = 4 Level of Significance = 5% or 0.05 Hence, the critical value of Chi-square = 9.488 Also at a level- of significance of 0.05, p = 0.447, which means that p > 0.05 Since the Critical value of Chi-square (9.488) is greater than the calculated value (3.706) and p > 0.05, we cannot reject. the null hypothesis. Therefore, change of service provider is independent of gender of the customer 2. Demographic Factor: Age group Ho: Change of service provider is independent of age of the customer HI: Change of service provider is dependent on age of the customer Table 10 A2:eGrou~

Likely-

21-30 31-40 yrs . yrs.

.

Total

41-50

51-60

yrs.

yrs.

Above 60 yrs.

Very Unlikely

22

·10

10

8

0

50

Unlikely

16

7

5

4

1

33

Neutral

15

5

4

6

0

30

Likely

4

1

0

0

0

5

6

0

1

1

0

8

63

23

20

19

1

126

Ihood

Very likely Total

Source: Survey

338

Innovative Marketing Strategy: Balancing Commercial Goal. and...

Chi-Square Test VALUE Pearson Chi-square No. otVaIid Cases

9.856'

df 16

ASYMP.SIE(2-SIDED) .874

126

a. 16 cells (64.0%) have expected count less than 5. The minimum expected count is .04.

Degree of freedom = 16 Level of Significance = 5 % or 0.05 Hence, the critical value of Chi-square =26.296 Also at a level of significance of 0.05, p = 0.874, which means that p > 0.05 Since the Critical value of Chi-square (26.296) is greater than the calrulated value (9.856) And P > 0.05, we cannot reject the null hypothesis. Therefore, change of service provider is independent of age group of the customer 3. Demographic Factor: Monthly Income Ho: Change of service provider is independent of age of the customer HI: Change of service provider is dependent on age of the customer

Cellular Service Industry in India - A Need for Innuvative Marketing

339

Table 11 'Total

Monthly Income Below Rs.lO,OOO Likely

Rs.IO,OOl Rs.15,OOl Above Rs.15,OOO Rs.25,OOO Rs.25,OOO

Very Unlikely

3

9

18

20

50

Unlikely

1

7

13

11

32

Neutral

3

9

9

9

30

Likely

0

2

3

0

5

Very Likely

0

1

4

3

8

7

28

47

43

125

·hood

Total

Source: Survey Chi-Square Test Pearson Chi-square No. of Valid Cases

VALUE

df

ASYMP.SIE(2-SIDED)

8.315"

12

.760

125

a. 11 cells (55.0%) have expected count less than 5. The minimwn expected count is .28.

= 12 Level of Significance = 5% or 0.05 Degree of freedom

Hence, the critical value of Chi-square

= 21.026

Also at a level of significance of 0.05, p = 0.760, which means that p > 0.05 Since the Critical value of Chi-square (21.026) is greater than the calculated value (8.315) and p > 0.05, we cannot reject the null hypothesis. . Therefore, change of service provider is independent of monthly income of the custome

340

Innovative Marketing Strategy: Balancing Commercial Goal and...

4. Demographic Factor: Duration of usage Ho: Change of service provider does not depend on the length of usage by consumer of service of mobile phone service providers. HI: Change of se.rvice provider depends on the length of usage by consumer of service of mobile phone service providers. Table 12 Duration of Usage

Total

Less than 1 Year

1 Year

2 Year

5

11

8

11

15

50

Unlikely

3

6

12

4

9

34

Neutral

5

6

8

4

5

28

Likely

2

0

2

1

0

5

Very Likely

0

0

1

1

7

9

15

23

31

36

26

126

Likely Very -hood of Likely Switching

Total

3 Year More than 3 Year

Source: Survey

Chi-Square Test VALUE Pearson Chi-square

25.0631"

No. of Valid Cases

df

ASYMP.SIE(2-SIDED)

16

.069

126

a. 13 cells (52.0%) have expected count less than 5. The minimum expected count is .60.

Degree of freedom

= 16

Level of Significance = 5% or 0.05 Hence, the critical value of Chi-square

= 26.296

341

Cellular Service Industry in India - A Need for InnwatiPe Marketing

Also at a level of significance of 0.05, p means that p > 0.05

= 0.069, which

Since the Critical value of Chi-square (26.296) is greater than the calculated value (25.063)and p > 0.05, we cannot reject the null hypothesis. Therefore, Change of service provider does not depend on the length of usage by consumer of service of mobile phone service providers. 5. Demographic Factor: Monthly Expenditure on Mobile Service Ho: Change of service provider does not depend on the monthly expenditure on the mobile service by the customer. HI: Change of service provider depends on the monthly expenditure on the mobile service by the customer. Table 13 Monthly Mobile Service Expenditure

Total

Up to Rs.251 Rs.501 Rs.I00l Above Rs.250 Rs.500 Rs.lOOO Rs.2000 Rs.2000

5

11

8

11

15

50

Unlikely Neutral

3 5

6 6

12

9 5

34

8

4 4

28

Likely

2

0

2

1

0

5

Very Likely

0

0

1

1

7

9

15

23

31

21

36

126

Likely Very -hood Likely

Total Source: Survey

342

Innuvative Marketing Strategy: Balancing Commercial Goal and...

Chi-Square Test Pearson Chi-square

VALUE

df

36.826'

16

N o. o~Va1id Cases

ASYMP.SIE(2-SIDED) .002

125

a. 15 cells (60.0%) have expected count less than 5. The minimum expected count is .48.

= 16 Level of Significance = 5% or 0.05 Degree of freedom

Hence, the critical value of Chi-square

= 26.296

Also at a level of significance of 0.05, p = means that p < 0.05

0.002~

which

Since the Critical value of Chi-square (26.296) is less than the calculated value (36.826) and p < 0.05, we reject the null hypothesis. Therefore, we have proved that Change of service provider depends on the monthly expenditure on the mobile service by the customer.

(8) Cluster 2: Students 1. Demographic Factor: Gender Ho: Change of service provider is independent of gender of. the customer HI: Change of service provider is dependent on gender of the customer

Cellular Service Industry in India - A Need for Innovative Marketing

343

Table 14 GENDER Likelyhood

TOTAL

MALE

FEMALE

Very Unlikely

19

28

47

Unlikely

17

15

32

Neutral

13

9

22

Likely

9

5

14

Very likely

3

2

5

61

59

120

Total Source: Survey

Chi-Square Test

Pearson Chi-square

VALUE

df

3.886'

4

No. of Valid Cases

ASYMP.SIE(2-SIDED) .442

120

a. 2 cells (20.0%) have expected count less than 5. The minimrun expected count is .2.46.

=4 Level of Significance = 5% or 0.05 Degree of freedom

= 9.488 at a level of significance of 0.05, p = 0.422, which

Hence, the critical value of Chi-square Also means that p > 0.05

Since the Critical value of Chi-square (9.488) is greater than the calculated value (3.886) and p > 0.05, we cannot reject the null hypothesis. Therefore, change of service provider is independent of gender of the customer. 2. Demographic Factor: Duration of usage Ho: Change of service provider does not depend on the length of usage by consumer of service of mobile phone service providers.

Innovative Marketing Strategy: Balancing Commercial Goal and...

344

HI: Change of service provider depends on the length of usage by consumer of service of mobile phone service ~. proVl'ders. Table 15 Duration of Usage

Likely

-hood

Total

Less than 1 Year

1 Year

2 Year

Very Likely

4

3

13

6

21

47

Unlikely

1

6

2

3

20

32

Neutral

2

5

6

0

8

21

Likely

0

1

7

2

6

16

Very Likely

1

0

1

0

1

3

8

5

29

11

56

119

Total

3 Year More than 3 Year

Source: Survey -

-

Pearson Chi-square No. of Valid Cases

-

Chi-Square Test VALUE

df

23.442"

16

ASYMP.SIE(2-SIDED) .102

119

a. 17 cells (68.0%) have expected count less than 5. The minimum expected count is .20.

Degree of freedom = 16 Level of Significance = 5% or 0.05

= 26.296 at a level of significance of 0.05, p = 0.102, which

Hence, the critical value of Chi-square Also means that p > 0.05

Since the Critical value of Chi-square (26.296) is greater than the calculated value (23.442) and p > 0.05, w.e cannot reject the null hypothesis.

Cellular Service Industry in India - A Need for Innuvative Marketing

345

Therefore, Change of service provider is independent of the length of usage by consumer of service of mobile phone service providers. 3. Demographic Factor: Monthly Expenditure on Mobile Service Ho: Change of service provider does not depend on the monthly expenditure on the mobile service by the customer. HI: Change of service provider depends on the monthly expenditure on the mobile service by the customer. Table 16 Monthly Mobile Service Expenditure

Total

Up to Rs.251 Rs.501 Rs.l00l Above Rs.250 Rs.500 Rs.lOOO Rs.2000 Rs.2000

11

19

10

4

2

46

Unlikely

6

12

10

3

1

32

Neutral

7

9

5

1

0

22

Likely

2

5

5

2

1

15

Very Likely

1

3

1

0

0

5

27

48

31

10

4

120

Likely Very -hood Likely

Total Source: Survey

Chi-Square Test

Pearson Chi-square No. of Valid Cases

VALUE

df

6.382'

16

ASYMP. SIE (2-SIDED)

120

a. 15 cells (68.0%) have expected count less than 5. The minimum expected count is .48.

Degree of freedom = 16 Level of Significance = 5% or 0.05

.1983

346

Innovative Marketing

Stra~egy:

Balancing Commercial Goal and...

Hence, the critical value of Chi-square

= 26.296

Also at a level of significance of 0.05, p = 0.983, which means that p > 0.05 Since the Critical value of Chi-square (26.296) is greater than the calculated value (6.382)and p > 0.05, we cannot reject the null hypothesis. Therefore, Change of service provider is independent of the monthly expenditure on the mobile service by the customer.

(C) Cluster 3: Housewives 1. Demographic Factor: Age group

Ho: Change of service provider is independent of age of the customer HI: Change of service provider is dependent on age of the customer Table 17 Age Group 21-30 31-40 41-50

yrs.

yrs .•

yrs.

Total

51-60 Above yrs. 60 yrs.

0

3

4

1

0

8

Unlikely

2

4

0

2

0

Neutral

2

0

0

1

0

8 3

Very Likely

2

1

2

0

1

6

6

8

6

4

1

25

Likely Very Unlikely -hood

Total Source: Survey

Cellular Sen>ice Industry in India - A Need for Innwatwe Marketing

347

Chi-Square Test

Pearson Chi-square

VALQE

df

i6.970'

12

No. of Valid Cases

ASYMP.SIE(2-SIDED) .151

25

a. 20 cells (100.0%) have expected count less than 5. The minimum expected count is .12.

= 12 Level of Significance = 5% or 0.05 Degree of freedom

= 21.026 at a level of significance of 0.05, p = 0.151, which

Hence, the critical value of Chi-square Also means that p > 0.05

Since the Critical value of Chi-square (21.026) is greater than the calculated value (16.970) and p > 0.05, we cannot reject the null hypothesis. Therefore, Change of service provider is independent of age group of the customer. 2. Demographic Factor: Duration of usage Ho: Change of service provider does not depend on the length of usage by consumer of service of mobile phone service providers. HI: Change of service provider depends on the length of usage by consumer of service of mobile phone service providers.

348

Innuvative Marketing Strategy: Balancing Commercial Goal and...

Table l~ Duration of Usage

Less

1 Year

2 Year

than 1 Year Likely -hood

Total

3 Year More than 3 Year

Very Likely

5

11

8

11

15

50

Unlikely

3

6

12

4

9

34

Neutral

5

6

8

4

5

28

Very Likely

0

0

1

1

7

9

15

23

39

21

36

124

Total

Source: Survey Chi-Square Test

Pearson Chi-square

VALUE

df

12.857'

12

No. of Valid Cases

ASYMP.SIE(2-SIDED) .308

25

a. 20 cells (100.0%) have expected count less than 5. The minimum expected count is .24.

Degree of freedom

= 12

Level of Significance = 5 % or 0.05 Hence, the critical value of Chi-square .= 21.026 Also at a level of significance of 0.05, p means that p > 0.05

= 0.102, which

Since the Critical value of Chi-square (21.026) is greater than the calculated value (12.857) and p > 0.05, we cannot reject the null hypothesis. Therefore, Change of service provider does not depend on the length of usage by consumer of service of mobile phone service providers.

Cellular Service Industry in India - A Need for Innovative Marketing

349

3. Demographic Factor: Monthly Expenditure on Mobile Service Ho: Change of service provider does not depend on the monthly expenditure on the mobile service by the customer. HI: Change of service provider depends on the monthly expenditure on the mobile service by the customer. Table 19 Mo~th1y Income

Likely -hood

Total

Up to Rs.250

Rs.251 Rs.500

Rs.501 Rs.1000

Very Unlikely

3

4

2

1

10

Unlikely

3

1

2

0

6

Neutral

1

1

0

0

2

Very Likely

1

2

1

2

6

8

8

5

3

24

Total

Above Rs.2000

Source: Survey Chi-Square Test

Pearson Chi-square No. of Valid Cases

VALUE

df

ASYMP.SIE(2-SIDED)

6.053'

9

.735

24

a. 16 cells (100.0%) have expected count less than 5. The minimum expected count is .25.

Degree of freedom

=9

Level of Significance = 5% or 0.05 Hence, the Critical Value of Chi-Square

= 16.919

Also at a level of significance of 0.05, p = 0.735, which means that p > 0.05 Since the Critical value of Chi -square (16.919) is greater than the calculated value (6.053) and p > 0.05, we cannot reject the null hypothesis.

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Therefore, Change of service provider is independent of the monthly expenditure on the mobile service by the customer.

CONCLUSIONS This study reveals that in the Indian context, demographic factors of consumers have a very limited influence on brand choice and brand switching of customers of mobile phone service providers. The key findings of this study are: • Demographic factors of Gender, Monthly Income, Occupation and Duration of Usage of service do not influence the attitudes governing brand choice and brand switching for the customers of mobile phone service providers. • For certain clusters, demographic factor of age has an impact on attitudes towards choice of the mobile phone service provider. • For certain clusters, demographic factor of "Monthly Expenditure on Mobile Phone Service" constitutes an influence on the switching attitude of the customers. • Demographic factor of age has been found out to be negatively related to the switching intentions of customers of mobile phone service providers. Thus, it is important for the mobile phone service providers to understand the needs of customers of different demographic profiles and their past experience. This helps mobile service providers to offer pertinent according to affordability and expectations of various segments of customers.

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RECOMMENDATIONS Innovative Marketing Strategies for Mobile Phone Service Providers The Indian mobile phone service industry has constantly witnessed price wars as a t~l to ensure customer satisfaction. These price wars have lead to India becoming the market with lowest service tariffs in mobile phone service industry across the globe. Therefore, there exists very little scope for the service providers to slash prices further to attract and retain customers. The service providers are now required to think in term of providing ''A Whole Experience" to their customers rather than just a service offering. This can be done by shifting the focus from pricing to differentiation. Mobile phone service is generic in nature and differentiation is usually attained by providing the customers with a wide range of value-added services. Given below are some marketing strategies which aim at attaining the next level of customer satisfaction - Customer Delight (1) Initiate online social networking: Internet as a marketing medium still has a lot to offer. Mobile phone service providers can introduce online social networking on their websites. Provide the customers with a common platform to share and interact. Let them chat, download, make communities, play games, listen to music all on a single ·platform. The motto should be to bring people together. Make the experience so engrossing that it takes a customer from being satisfied to becoming brand loyal. The customers associate and identify themselves with the brand. The trick here is that only the current subscribers should have access to all the features of service. (2) Greater Use of BTL Promotional Tools: The promotional budgets of mobile phone service providers are majorly dominated by media spend. Negligible weightage is given to nonmedia instruments. A lot can be omit by under this banner.

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Innuvative Marketing Strategy: Balancing Commercial Goal and...

• Work for a customer cause: This can be executed best by studying the demographic profIle of the target group. The following illustration below should make the point clear. Every particular age group has specific issues to tackle. Assume a mobile phone service provider that is youth centric. Youth today face the problem of drug addiction, HIV infection, etc. The service providers can deploy some of their resources to fight the~ issues. It may be as concrete as a dedicated campaign or as simple as information dissemination. The point is to make the customer feel that 'they are cared for'. • Frequent user/loyalty incentives: Reward the customers with bonus points under exclusively designed programes basedon frequency and extent of usage. These bonus points should be redeemable against repurchase of service from the existing providers. They may also be redeemed in the form of discounts offered on products of other categories. (3) Innovative cobranding exercises: The mobile service providers can take value added services to the next level by adopting cobranding strategies. • A mobile service provider can forge a partnership with a major player in the baking sector that offering credit cards and a lifestyle clubs. This shall be an example of multiple sponsor cobranding. The redit cardholder will become entitled to special benefits. These may include online payment of mobile phone bills, bonus talk time to card holder, free or discounted rate of club membership, etc. Other Recommendations: • Most of the respondents consider family and friends as the "Most Preferred" source of information on mobile phone service providers.Therefore, Word-of-mouth should be rigirously employed for the purpose of promotion of the various product offerings by mobile phone service providers.

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• A critical factor that triggers switching among customers of mobile phone service providers is dissatisfaction due to inefficient customer care service, which has been reported strongly by respondents belonging to all the clusters. An improvement into the existing customer care system would be to introduce a DBMS (Database Management System). The function of this system will be to record the customers' query, person in-charge of handling the query and related details. This will effectively reduce the repetition of query by the customer, irrespective whether the person handling it is the same as the last interaction or not. • Service providers should make attempt to understand and track changes in demographic profiles, switching behaviour and switching intentions of the customers on an ongoing basis as it would help them to offer services which may satisfy customers in a long run leading to increase in market share.

RESEARCH PAPERS Geraldine, Fennell, Allenby, Greg M. Yang, Yancy, Sha. Edwards "The Effectiveness of Demographic and Psychographic Variables for Explaining Brand and Product Category Use"

WEBSITES • Bai, VThulasi Bai, Ganesan, A. Srivatsa, S.K. "Analysis of Mobile Communication spread and its implications in India" Academic Open Internet Journal, 2007. < http://www.acadjournal.com/2007/V21/part6/p7/> • "Opportunities & Overview of Mobile Industry in India", Global Equation. October. 2006.

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• ''All India GSM sub-figures 2008". COlA. Feb 2009. Cellular Operators Association of India.

• "Subscriber Figures for Dec 2008". AUSPI. January 2009. Association of Unified telecom service providers in India < http://www.auspi.in/news/CDMA-statistics-dec08. pdf • Srinivasan, Poongothai. "Cell Phone Service Providers in India: Who is the Best?" Chilli Breeze, December, 2008. < http://www.chillibreeze.com/articles _various/CellPhone. asp > • "Tariff war: Mobile rate cut order of the day." Indiatimes Infotech, 29 April, 2008. < http://infotech.indiatimes.com/articleshow/2993561. ems> • ''And now, every fourth Indian is connected." Thaindian News. 1 July. 2008.

• "Cell phone users unhappy with customer care survey", Monsters and Critics, 4 November, 2007 < http://www.monstersandcritics.com/news/india/news/ article_1371022.php/Cell- phone users unhappy with customer care survey>

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