DECLARATION


I GIBI JOHN hereby declare that this project

A STUDY ON EFFECTIVENESS OF INNOVATIVE ADVERTISING WITH REFERENCE TO VODAFONE -ZOOZOO is a

entitled genuine and bonfide record of research work carried out by me and is submitted to M.G University, Kottayam in partial fulfillment of requirement for the award of the degree of Bachelor of Business Administration.

GIBI JOHN

ACKNOWLEDGEMENT

There are several hands and hearts behind this work to bring it to bring it to this final shape for which I would like to express my gratitude.

First, I wish to acknowledge our heartfelt gratitude to Almighty God of all the wisdom and knowledge for guidance, direction, physical and mental strength to sustain my ambition even during time of lapses.

I extend my deep sincere thanks to Rev.Fr.REGI PLANTHOTTAM coordinator, PROF.K.C.JOSEPH, PROF.P.C. JOSE, head of the department, Management studies, St.Berchmans College, changanacherry for their valuable support and guidance throughout this endeavor.

I owe my special thanks to my guide PROF.P.C. JOSE whose unfailing encouragement, support and guidance to made this project a success. I am grateful to the authorities

of

VODAFONE ESSAR

COMPANY,KOTTAYAM
the project.

for providing with necessary information for

An

expression

of

warm

thanks

to

my

CLASSMATES,

PARENTS,

for their support in times of need & those who helped

indirectly towards the completion of the project.

GIBI JOHN

TABLE OF CONTENTS
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LIST OF FIGURES

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INTRODUCTION
Adver tising has pla yed a m ajor r ole in consu m e r m a r k e t i n g , a n d h a s e n a b l e d c om p an i es t o m ee t c om m u n i c a ti o n a n d o t he r m ar k et i ng o bj ec t i ve s . T yp i ca l l y, advertising is used to inform, p e r s u a d e , a n d r e m i n d c o n s u m e r s . I t i m p o r t a n t l y r e i n f o r c e s t h e i r a t t i t u d e s a n d percep tions. Advertising has been a target of criticism for decades. Advertising has been hailed as a capitalistic virtue, an engine of free market economy, and a promoter of c on s um er w e l f ar e. I ts d e tr a ct or s o n t he ot h er h an d a c cu s e i t o f an ar r a y of si n sranging from an economic waste to purveying of harmful products, from sexism todeceit and manipulation, from triviality toi n t el l e c t ua l a n d m or a l p o l l u ti o n (M i tt a l , 1 99 4 ). A d ve r t i s i n g i s s e en b y m a n y a s at hr ea t t o t h e c ul t ur a l i de n ti t y a n d s el f r ea l i s at i o n o f m a n y d e vel o p i n g c ou n tr i e s: i t br i n g s to many p eo p l e al i e n e t hi c al va l u e s; it ma y d e vi a t e c o ns um er d em a n ds i n developing countries to areas which can inhibit development priorities; it affects andc a n o ft e n d e f or m w a ys o f l i fe a nd l i f e s t yl e s (M ac B r i d e , 19 8 0 ). A d ve r t i s i n g i s c o ns i der e d u n et h i c al w h en it d egr a d es r i val s pr o d u ct or s ub s ti t ut e pr o d uc t, gi ve smisguiding information, gives false information, conceals information that vitally affects human life (e.g., side effects of drugs), makes exaggerated

claims, is obsceneor immoral or is against broad national interest. While comparative advertising may be considered legal and its widespread use may have granted it acceptance, the debateo n w h e t h e r o r n o t i t i s e t h i c a l , s t i l l c o n t i n u e s . T h e r e i s n o u n a n i m i t y a m o n g advertisin g professionals and marketing clients regarding such questionable practices.H o w e ve r , a l l agr e e t o o ne a s pe c t t h at w hi l e c o n si d e r i n g t he q u es ti o n o f u ne t hi c al practices, the focus must be to safeguard the interest of buyers at the micro level and the society at the macro level as their satisfaction is the key to the marketing success. The criticism has been related not only to its intended effects on society, but also to its unintended effects. Whereas criticisms of advertising have generally originated from the highest socio-economic classes since the earliest days of the modern marketing era and before, lower and middle class people have historically been more positive toward advertising. This critic and positive attitude evolves completion each other.So in order to stand above your competitors your advertisements will have to be innovative, creative and really out of the box. Innovative advertisements being a memorable ad makes one really interact with life itself and are connecting to in an emotional way.These advertisements are most likely to remember simply because customers have never seen them done before. .

RESEARCH MEHODOLOGY

This chapter presents description of research topic, research problem, variables, research design, universe, unit of study, setting of the study, sampling, methods of data collection, statistical tools used, pilot study &limitations. TOPIC A Study on effectiveness of innovative advertising with special reference to Vodafone . RESEARCH PROBLEM

OBJECTIVES

*General objectives

*Specific objectives
VARIABLES

(a)Dependent variables
.

(b)Independent variable
RESEARCH DESIGN Research design a blueprint for conducting a study that minimizes control over the factors that could interfere with the validity of the findings or it is a conceptual frame work within which the research is to be conducted. A non experimental design using descriptive approach was used to conduct the study. UNIVERSE OF THE STUDY UNIT OF THE STUDY .

SETING UP OF THE STUDY

SAMPLING METHODS OF DATA COLLECTION

(1)Primary data
. (2)Secondary

data

STSATISTICAL TOOLS USED DEVELOPMENT AND DESCRIPTION OF TOOL PILOT STUDY Pilot study is a careful empirical checking of all phases From the collection of data to their tabulation and analysis. The purpose of the pilot study was y To find feasibility y To make improvement and modification in the research plan before the main study is attempted. The pilot study was carried out on 10 samples from St.josephs girls higher secondary school, changanacherry who are having same characteristics of the subject of the main study which proved helpful to determine the feasibility of the study.

LIMITATIONS 1. The span of the study was very short so that researcher may not be able to conduct a detailed study on topic. 2. The respondents were reluctant to express precisely to some questions.

3. The study is limited only to 50 students. 4. The study considered students in11th&12th
.

standards

COMPANY PROFILE
C OMPANY D ESCRIPTION
Vodafone Group Plc provides mobile telecommunication services. The company provides voice services, such as mobile voice communications and voice roaming, messaging services, including text picture and video messaging on mobile devices, data services, such as
email, mobile connectivity, Internet on ...

V ALUATION
P/E Current 11.56 P/E Ratio (with extraordinary items) 12.64 P/E Ratio (without extraordinary items) 11.61 Price to Sales Ratio 2.02 Price to Book Ratio 1.04 Price to Cash Flow Ratio 6.85 Enterprise Value to EBITDA 8.15 Enterprise Value to Sales 2.53 Total Debt to Enterprise Value 0.30

E FFICIENCY
Revenue/Employee 0.55 Income Per Employee 0.10

Receivables Turnover 7.80 Total Asset Turnover

0.30

L IQUIDITY
Current Ratio

0.63 Quick Ratio 0.61 Cash Ratio

0.26

P ROFITABILITY
Gross Margin 32.84 Operating Margin 14.57 Pretax Margin 9.80 Net Margin 17.49 Return on Assets 5.19 Return on Equity 8.96 Return on Total Capital 6.27 Return on Invested Capital
6.83

C APITAL S TRUCTURE
Total Debt to Total Equity 42.39 Total Debt to Total Capital 29.49 Total Debt to Total Assets 24.54 Long-Term Debt to Equity

31.07 Long-Term Debt to Total Capital 21.62

LITERARUTE REVIEW
Advertising has played a major role in consumer marketing, and has enabledcompanies to meet communication and other marketing objectives. Typically,advertising is used to inform, persuade, and remind consumers. It importantly reinforces their attitudes and perceptions.
The word advertising originates from a Latin word advertise, which means to turn to.The dictionary meaning of the term is to give public notice or to announce publicly.Advertising may be defined as the process of buying sponsor-identified media spaceor time in order to promote a product or an idea.The American Marketing Association, Chicago, has defined advertising as any formof nonpersonal presentation or promotion of ideas, goods or services, by an identifiedsponsor. What is Included in Advertising? (i) The information in an advertisement should benefit the buyers. It should give thema more satisfactory expenditure of their rupees.(ii) It should suggest better solutions to their problems.(iii) The content of the advertisement is within the control of the advertiser, not themedium.(iv) Advertising without persuasion is ineffective. The advertisement that fails toinfluence anyone, either immediately or in the future, is a

waste of money.(v) The function of advertising is to increase the profitable sales volume. That is,advertising expenses should not increase disproportionately. Advertising includes the following forms of messages : The messages carried inNewspapers and magazines; On radio and television broadcasts; Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen,or by inserts in packages); Dealer help materials, window display and counter display materials and efforts; Store signs, motion pictures used for advertising, Novelties bearing advertising messages and Signature of the advertiser, Label stags and other literature accompanying the merchandise.

INNOVATION
Innovation is a result of a planned culture designed to encourage, develop and market innovative products and services. Innovation happens under certain conditions and does not happen under other cultural conditions. The conditions can be described and they can be replicated. Organizational leaders create the culture of innovation by their, systems,policies and actions. They are responsible for creating or destroying innovation in organizations. Innovation is not hard to do. The ability to innovate is widely distributed in society and in business organizations. Structures and systems designed to make the organization efficient and designed to serve customers can impede innovation. What is Innovation? Innovation is not another name for creativity. Innovation is not another name for Invention. Innovation is not an accident. Innovation is not the job of a few scientists or inventors. Innovation is not continuous improvement. The Art Fry definition of innovation is Innovation where people switch to a new practice or use a new product.

INNOVATION IN ADVERTISING

In a review of creativity definitions in psychology, Mumford and Gustafson (1988) identified three major approaches. The common thread was that both divergence and relevance are needed for creativity In the marketing/advertising literature, creativityor innovation has been approached from a variety of perspectives. Similar to definitions in psychology, Innovation in marketing is usually defined as having two characteristics: divergence and relevance (sometimes called effectiveness). The relationship between innovation and advertising is long, rich and textured. Innovation is considered to be an important determinant of advertising effectiveness . Major industry awards (e.g. Clios) are given to innovative advertisements and salaries to creative personnel represent a considerable portion of ad agencies expenses. In addition, there is a strong focus on innovation in advertising trade papers like Advertising Age, Ad Week etc Conceptualization of divergence and creativity Based on the psychological and marketing literature reviewed, innovative ads are defined as those that are both divergent and relevant. DIVERGENCE The first and most fundamental characteristic of ad innovation is divergence the ad must contain elements that are novel, different, or unusual in some way. While the concept of divergence is clearly central to creativity it has received surprisingly little development in marketing/advertising. Usually, it is represented as a one dimensional construct (e.g. originality or novelty) with little conceptual development. This is an important omission because divergence plays a major role and is a complex construct. RELEVANCE While divergence is central to any definition of creativity&innovation, the ad also must be relevant it must be meaningful, appropriate or valuable to the audience. Thus,

relevance can be thought of as a stimulus property where some aspect of an advertisement is important, meaningful, or valuable to the consumer. Normally, relevance would be expected to be related to the brand/informational properties of the ad (e.g. was useful information attained). However, relevance can also be produced by execution elements such as music. Indeed, at least two specific types of relevance can be important for advertising: Adconsumer relevance This type of relevance is achieved when stimulus properties of the ad create a meaningful link to the consumer. For example, using Beatles music in an ad could create a meaningful link to Baby Boomers and, thereby, make the ad relevant to them. Brandconsumer relevance This type of relevance occurs when an ad creates a meaningful link between the brand and the consumer. For example, the ad could make the brand seem right by showing it being used in circumstances familiar to the consumer. In the creativity literature, Guilford (1950, 1956) was one of the first to focus on divergence and proposed several facets of innovation&creativity that reflect the divergence and relevance components. Of the factors, seven were related to divergence: sensitivity to problems, fluency (number of ideas), novelty, flexibility, synthesis, redefinition/reorganization, and complexity; and one factor was related to relevance: evaluation/shaping.

DETERMINANTS OF DIVERGENCE
Fluency: The ability to generate a large number of ideas more than expected.
.

Flexibility: The ability to generate different ideas. The ability to shift from one type of subject matter to another. Ideas that fall outside the logical or expected Originality: Ideas that are rare, surprising, or move

away from the obvious and commonplace. The ability to break away from habit-bound and stereotypical thinking.

Elaboration: Thinking of unexpected details. The ability ,

to finish, extend, and detail basic ideas so they become more intricate, complicated or sophisticated.

Resistance to premature closure :The ability to keep ideas open and resist quick, easy
or obvious solutions. The: ability to keep working is essential for the incubation processes to function.. Unusual perspective: Seeing things from a different or unusual outlook. Ability to produce internal visualizations (see beneath the surface), rich imagery, break or extend normal perspective boundaries, and provide unusual contexts. Synthesis: The ability to bring together items by combining, connecting, or blending normally unrelated objects or ideas. Includes bold mental leaps and merging ideas freely without self-imposed restrictions. Humor: The ability to be expressive in a comical, way, to amuse people and make them laugh.

Richness and colorfulness of imagery: The ability to arrange shapes and colors in an attractive way. The ability to produce artistic impressions or art of any kind. Fantasy: The ability to generate non-real ideasworlds, or creations, often marked by
highly fanciful or supernatural elements. Expression of emotion: The ability to convey an idea through the feeling and use of emotional, poignant, and/or sensitive material.

DETERMINANTS OF DIVERGENCE
Factor Definition Advertising example

Empathic perspective:The ability to use an attitude or viewpoint,

that understands the thoughts and feelings Provocative questions: he ability to use analysis and queries are intended to incite, arouse, or elicit an
interesting response.

Future orientation: The ability to prospect or envision Whats

future possibilities; to see and express Next, Sharper Image ads future events.

Conclusion Innovation is sometimes considered the artistic side of marketing/advertising that is difficult to measure and assess. Some marketing executives wisely subcontract the creative function to specialists outside the firm (ad agencies, creative boutiques, etc.) but ultimately they must somehow determine if creative goals are being achieved. A conceptual understanding of ad creativity is required before this important goal can be realized.