This document summarizes an internship project analyzing the effectiveness of various promotional activities used by broadband operators. It begins with an introduction and acknowledgements. The abstract then outlines that the project will analyze the effectiveness of Above The Line (ATL) versus Below The Line (BTL) promotional activities through surveys in Delhi. It provides definitions of key terms. The document structure is then outlined in the table of contents. It will analyze demographics, findings, effectiveness of different promotions, and test the hypothesis that BTL activities are more effective than ATL activities.
1. Summer Internship Project
A study to analyze the
effectiveness of various
promotional activities
practiced by Broadband
operators
TATA COM M UNIC ATION
Submitted by:
Anirudh Bhandegaonkar
Roll No. C-08-09
PGDBA – 2008 - 2010
2nd Semester
Submitted to:
Graduate School of Business & Administration,
Greater Noida
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Mr. T. N. Srivastava
(Head, Placement Cell)
GSBA, Greater Noida
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1. Acknowledgements
This Project would not have come to fruition without the help, wittingly or unwittingly, of a
great many people too numerous to mention. This section provides a platform to
recognize and acknowledge those fortunate enough to spring to mind.
My Industry Mentor, Mr. Mayur Agarkar should be commended for the guidance, support,
and wealth of ideas he provided in order to see this work completed.
I would like to express my gratitude to my Faculty Mentor, Mrs. Rati Sharma who is more
than a mentor to me. His whole hearted support kept me upbeat in the toughest times
during the project.
This project was a team effort and I am proud to be a part of such a great team. I am
deeply indebted to them for their contribution with brilliant ideas and hard work. The credit
of the successful completion of the project goes to my team.
Thanks a lot to all the unnamed people who kindly responded to the Questionnaire,
especially my friends at GSBA & Amity.
Finally, my family for providing help, advice, and motivation when it was required.
Anirudh Bhandegaonkar
C 08-09
PGDBA (2008 – 10)
2nd Semester
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2. Abstract
In India, in the past 4-5 years, growth in the number of Internet connections has been
phenomenal primarily driven by the broadband connections. Broadband is defined as any
speed above 256 kbps. With the advent of several broadband service providers the
competition has only got tougher and more intense.
To increase their market, these operators use various promotional activities. These
activities can broadly be classified under two categories.
1) ATL (Above the line) or Mass Promotional Activities.
e.g. Ads on TV or internet, print media, Banners etc.
2) BTL (Below the line) or personalized/Direct marketing.
e.g. Tele-calling, promotion via mailing etc.
Companies pour in millions of dollars to promote their brand, create brand awareness and
market their services to boost their sales and grab higher market share. So it makes
every business sense to know the effectiveness of different media and invest in those
which have high effectiveness.
The objective of our study was to analyze the effectiveness of these promotional activities
used by the broadband service provides in Delhi/NCR.
To achieve the target we first divided the work area into regions according to
convenience. The next big objective was to device a questionnaire. Basically three forms
of sampling techniques were used, convenience, snow-ball and internet sampling.
Valuable information and views of broadband users received via Questionnaires were
used to reach to the conclusion of the research.
The study found out that BTL activity i.e. the direct marketing (Tele-calling etc) were much
more effective than ATL activities i.e. mass marketing, much against the conventional
belief. The two major contributors in this victory of BTL over ATL were campaigning and
tele-calling. This may be due to the highly personalized and live nature of these forms of
promotion. They are able to influence the human mind because here humans interact with
humans either directly or over the phone. Although what lead to BTL’s success is a topic
of further research.
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Hence, through the research, null hypothesis was rejected and replaced with “BTL
activities are more effective than ATL activities.”
3. Table of Contents
1. Acknowledgement
2. Abstract
3. Table of contents
3.1. List of charts
3.2. List of tables
4. List of appendices
5. Abbreviation and definition
6. Introduction
7. Literature review
7.1. ATL & BTL: Promotional tools
7.2. Broadband operators in India
8. Problem definition
9. Approach to problem
10. Research aim
11. Research hypothesis
12. Research design
13. Data analysis
14. Results and findings
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14.1. Demographics
14.1.1. Age
14.1.2. Gender
14.1.3. Region
14.1.4. Family income
14.2. General findings
14.2.1. Monthly bill
14.2.2. Broadband service provider of the users
14.2.3. Purpose of the internet
14.2.4. Source of information about the service provider
14.2.5. Most crucial deciding factor
14.2.6. Brand recall standing (absolute)
14.2.7. Brand recall ranking
14.3. Analysis of effectiveness and hypothesis testing
14.3.1. Analysis of effectiveness of various promotional methods
14.3.2. Analysis of effectiveness of ATL & BTL for diff. brands
14.3.3. Analysis of effectiveness of ATL & BTL ‘in toto’
14.3.4. Hypothesis testing
15. Conclusions
15.1. Research conclusion
15.2. Recommendations or Suggestions
15.3. Limitations
16. Appendices
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4. List of Appendices
Appendix 1: Link to questionnaire
Appendix 2: Z test, to test the significance of the results for effectiveness of ATL & BTL
5. Abbreviations and Definitions:
ATL: Above the line
Above the line(ATL) is a type of advertising through media such as TV, cinema, radio,
print, banners and search engines to promote brands
BTL: Below the line
BTL is a type of promotional activity which is targeted to a specific person or group of
people very similar in their characteristics. Tele-calling, launching a campaign, erecting
canopies, mailing, in-house promotions etc. come under BTL.
MTNL: Mahanagar Telephone Nigam Limited, broadband operators in Delhi.
NCR: National Capital Region
ROI: Return on Investment
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6. Introduction:
It’s said that the greatest invention of the millennium is Internet. It’s because of the extent
to which it has made an impact in our lives. Since its inception, Internet has come a long
way and the technology behind it is constantly improving at a very rapid pace.
The latest technology i.e. Broadband give great surfing as well as downloading speed to
the users which is why it has seen a boom in demand in the past 4-5 rears. This has also
brought in new players leading tough competition.
Everyone is trying to dominate by promoting its brand and product through TV, print,
launching campaigns, sending mailers and news-letters etc. methods to promote are
many but due to budgetary constraints, search of most effective method of promotion is
on, big time. Promotion is classified under two categories ATL and BTL and marketers are
quite curious to know which one has the last laugh, ATL or BTL.
This research is an attempt to unravel this suspense and come up with findings which not
only satiate this curiosity but also provides results that are commercially viable and help
our organization to gain significant market share thru application of those results in its
marketing strategy.
The report also tries to analyze the strength of association b/w Market share and ATL/BTL
activities. Few other parameters are also touched.
The research is broken into 5 main sections.
Research design, demographics, general findings, analysis of effectiveness & hypothesis
testing and results & recommendation.
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7. Literature Review
7.1. ATL & BTL : Promotional tools
Promotion can be loosely be classified as "above the line"(ATL) or "below the line"(BTL).
The term "below the line" (BTL) promotion or communications, refers to forms of non-
media communication, even non-media advertising. Below the line promotions, such as
Tele-calling, direct mailing, canopies, launching campaigns etc are becoming increasingly
important within the communications mix of many companies, not only those involved in
FMCG products, but also for industrial goods and telecommunication.
“Above the line” (ATL) is a type of advertising through media such as TV, cinema, radio,
print, banners and search engines to promote brands. Major uses include television and
radio advertising, web and Internet banner ads. This type of communication is
conventional in nature and is considered impersonal to customers. It differs from Below
the line advertising, which believes in unconventional brand-building strategies, such as
direct mail and printed media (and usually involves no motion graphics).
The term comes from accountancy and involves the way in which Procter and Gamble,
one of the world’s biggest advertising clients, was charged for its media in the 1950s and
1960s. Advertising agencies made so much commission from booking media for clients
that the creative generation and actual production costs of making TV ads was free –
hence above the line. Everything else they paid for was therefore below the line. Since
then, models have changed and clients are no longer charged for their media in that way.
Used loosely, ‘above the line’ means mass media. However the media landscape has
shifted so dramatically that advertisers have reconsidered the definitions of mass media.
What needs consideration is the definition of "What does the line divide? For some retail
giants the definition of the line is "their floor space" where they convert footfall to
purchase. Loosely put, everything done prior to a customer's actual entry into a retail
outlet is ATL for some retailers, as they define shop-floor activities as the true BTL set of
activities which decide on which brand sells eventually.
Below the line sales promotions are short-term incentives, largely aimed at consumers.
With the increasing pressure on the marketing team to achieve communication objectives
more efficiently in a limited budget, there has been a need to find out more effective and
cost efficient ways to communicate with the target markets. This has led to a shift from
the regular media based advertising.
Below the Line uses less conventional methods than the usual specific channels of
advertising to promote products, services, etc. than Above the Line strategies. These may
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include activities such as direct mail, tele-calling, public relations and sales promotions for
which a fee is agreed upon and charged up front. Below the line advertising typically
focuses on direct means of communication, most commonly direct mail and e-mail, often
using highly targeted lists of names to maximize response rates.
Above the line is much more effective when the target group is very large and difficult to
define. But if the target group is limited and specific, it is always advisable to use BTL
promotions for efficiency and cost-effectiveness.
Say, for example, if a pen manufacturer is going to promote its product, it may take the
ATL route, but if a company manufactures computer UPS, it will certainly take the BTL
route, as the target group is very limited and specific.
More recently, agencies and clients have switched to an 'Integrated Communication
Approach.' BTL is a common technique used for "touch and feel" products (consumer
items where the customer will rely on immediate information rather than previously
researched items). BTL techniques ensure recall of the brand while at the same time
highlighting the features of the product.
In a nutshell, while Above-the-Line promotions are tailored for a mass audience, BTL
promotions are targeted at individuals according to their needs or preferences. While
Above-the-Line promotions can establish brand identity, BTL can actually lead to a sale.
Above-the-line promotions are also somewhat impossible to measure well, while BTL
promotions are highly measurable, giving marketers valuable insights into their return-on-
investment.
According to EBS Worldwide, mainstream mass broadcast marketing is increasingly
being viewed as uneconomical, in terms of Return on Investment, which is where BTL
marketing fits in.
Examples of BTL promotion
Most of the big brands are following the suit of BTL promotion because of rising prices of
media based promotion, advertising clutter and increased impulse purchasing.
• Ring tones and music videos on cell phones are helping the entertainment industry
to promote for a music video or a movie for dirt-cheap rate as compared to media
promotion.
• Various companies sponsor sport events to promote their brand, but media
companies like Hindustan Times are holding weekly events throughout the country
in which companies can put up their stalls, display banners and posters and
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arrange for some fun activities. These events give the companies a platform at
very low price to promote their brand and increase visibility among target
consumer. These companies also give discount coupons to winners in the games,
which in turn boost the sales of the products and ensure that first time users try
these products as well.
BTL promotions are gaining popularity among all big companies nowadays considering
their effectiveness because of the "individual customer promotion" at a price, which is
much less than the normal media promotions.
7.2. Broadband operators and their promotional activity
Broadband operators are using both ATL and BTL for their brand Promotion which
eventually aims for higher sales and larger market share.
Major players in India such as Airtel, MTNL, BSNL, Reliance, Tata, Sify and few others
are in a cut-throat competition with each other.
Lately, broadband operators have realized the virtues of BTL and channelized their focus
as well advertising dollars to the BTL promotional activities due to its low revenue
requirements and high sales output. Moreover they can maintain precise information of
their returns on investment which is very difficult in case of ATL.
ATL has always been regarded as an easy tool to reach out to the masses instantly.
Broadband companies thus use ATL and BTL activities in a mix which they try to
homogenize according to their growth plan, revenue constraints, target area and
management’s discretion.
The present market leader Airtel is very good in using ATL (Mass promotion) and BTL
(Direct marketing) in a very balanced way to optimize its expenditure and maximize the
returns.It uses exhaustive ATL promotion to spread itself throughout the market. TV ads
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have a major strategic importance in airtel’s quest to be a leader. Not only TV ads, Airtel
is everywhere, newspapers, magazines, internet, banners, huge hoardings along roads
and highways, you name it.
At the same time they haven’t marginalized the virtues of BTL. Go to some residential
apartments, colonies or blocks and you can certainly find few Airtel canopies, giving
demos, handing out pamphlets and educating its prospective buyers.
On the other hand, there is Sify, which hardly give any Ads in TV or print but still boasts of
a significant market share. So which media works better is very company specific and
depends on its marketing strategy and targets.
8. Problem Definition
A broadband operator is just like any other company which a product or services to offer
and it works for profit. To market a product, it has to be promoted and advertised to its
target customers. Now there are many ways in which you promote a product, few are
certainly better more effective than others.
Promotional activities are broadly classified under ATL and BTL. Due to the inherent
difference in their nature, they work differently and outshine one another depending on
the industry and the target audience they are directed towards.
Tata Communications is broadband service provider. To gain a higher market share, they
want to promote their products / Services.
Here lies the problem, what type of promotional activity one should use. Whether one
should go with ATL or BTL?
Which one has greater effectiveness, ATL or BTL ?
If we could calculate the effectiveness of a particular media, the dilemma to choose
between ATL and BTL can be solved.
Now, how can we calculate effectiveness of a promotional activity?
Conventional way of revenue generated per unit expenditure was not an option, as we
didn’t have any date giving those figures. Nor did we have any sample data which gave
the information about the revenue generated or sales figure before and after the
application of a particular promotional tool.
Hence, new avenues had to be searched and a totally different approach was developed
to answer the question that which media is more effective.
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9. Approach to the problem
We basically had to answer the question that, “If a person had subscribed to a particular
service provider which promotional activity influenced him to do that.”
But this would not lave given us the effectiveness, as effectiveness is a ratio.
But if we also get the number of people we got the information about the service provide
through the same promotional activity, we can calculate effectiveness.
So,
Effectiveness = no. of people who chose a promotional activity as the crucial deciding factor for subscription
no. of people who got the information about the operator thru that promotional activity
To achieve this objective a questionnaire was devised, which explicitly asked these two
very important questions, accessorized with demographic and other supporting questions.
People who are already broadband users could have given the answer to the above two
questions, so only those people constitute our sample.
The collected data was later analyzed to get effectiveness of various media, which was
tested for its significance via Z- test.
10.Research Aim
To analyze the effectiveness of various promotional activities, which are broadly classified
as ATL and BTL, carried out by the broadband operators.
11.Research Hypothesis
Null Hypothesis, H0: “There is no significant difference between ATL and BTL activities”.
So, an alternative hypothesis would be,
H1: “There is significant difference between ATL and BTL activities”.
12.Research design
Once, the approach to the problem was zeroed down, a questionnaire was designed to
get the information from the respondents to calculate the effectiveness of ATL and BTL
promotional activities.
The target population was broadband users in Delhi/ NCR.
We were a team of 5 and a target sample size of 250 was decided with 50 sample
elements per member.