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COMPREHENSIVE POLICY GUIDELINES FOR MARKETING – 2009(For BSNL Corporate Office)

1. INTRODUCTION

The Indian telecom is the fastest growing sector in the country and is passing through a very stiff competition due to multiple-operator scenario. The telecom operators are vying for market share by spending huge amount for marketing and related activities. Hence, the marketing really becomes a very important function in order to remain in the competition.

BSNL is providing a wide range of telecom services. It has to enrich its brand image and aggressively promote its services to remain a leading player. Being a PSU, it has to follow transparent procedures. Therefore it is necessary to have a proper marketing policy / guidelines, which broadly define the activities to be undertaken and the approach thereto in a transparent manner.

Because of the intangibility associated with the marketing activities, the guidelines become even more important in a PSU working environment as it is very difficult to adapt the procedure laid down for the procurement of tangible products like telecom equipments etc. to the Marketing activities.

2. OBJECTIVES

The main objectives for comprehensive policy guidelines are as under:

(i) To build brand image of BSNL through communications across various media.(ii) To create awareness about BSNL’s products and services.(iii) Tactical advertising for sales promotion.(iv) Competitive advertising strategies to BSNL’s advantage.(v) Maintaining required PR to improve BSNL’s image.

3. POLICY FRAMEWORK

3.1 BSNL shall empanel competent and experienced Advertising / Media agencies, Outdoor Media agencies, PR agencies, Market Research agencies etc. to advise and assist BSNL in formulation of its marketing strategies, their implementation and other assigned activities. Such agencies shall be empanelled by inviting open Expression of Interest (EoI). The detailed terms and conditions including eligibility criteria, experience etc in each case, shall be stipulated in the respective EoI document.

3.2 As a part of marketing strategy, BSNL shall engage brand ambassadors for advertisements. BSNL may have single or multiple brand ambassadors at any point of time depending on the requirements.

3.3 For each financial year, the marketing budget should be fixed as per the trends in the industry and other specific requirements like launch of new products and services etc. The over all budget shall be bifurcated between corporate office and field units.

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3.4 The marketing activities by corporate office shall be mainly for Branding, All India launch of products and services, market research, PR and corporate communication etc.

3.5 The marketing activities by the field units shall be mainly for sales promotion through Above the Line (ATL) as well as Below the Line (BTL) advertising and other local PR activities etc.

3.6 The media wise expenditure, e.g. electronic, print, outdoor, digital, BTL etc. shall be fixed as a percentage of the total budget of corporate office and field units separately for each year. However the budget allocation among various media may vary as per requirements. Also heads of circles shall be authorized to revise the budget allocation among various media as per requirements.

3.7 The Empowered Committee on Marketing (ECM) of corporate office shall have the power to approve the marketing proposals up to Rs. 10 lakh per occasion within the framework of prescribed guidelines and the budget allocated.

3.8 For the proposals above Rs. 10 lakh, the cases shall be submitted to Director (C&M) for in principle approval and for authorizing the ECM to negotiate. The recommendations of the ECM, for the cases involving expenditure up to Rs. 3 Crore (excluding taxes), in each case, shall be submitted to Director (C&M) through ED (Finance) for final approval. The cases above Rs. 3 Crore and up to 5 Crore (excluding taxes), in each case, shall be submitted to CMD through Director (Finance) for final approval. All the proposals above Rs. 5 Crore (excluding taxes), in each case, shall be referred for approval to Management Committee.

3.9 These are the policy guidelines to streamline the procedures and to bring consistency in approach and shall normally be followed. Any new development / activities and the deviation from the laid policy will need approval of BSNL management.

4. MEDIA WISE DSETAILED GUIDELINES FOR BSNL CORPORATE OFFICE

4.1 ELECTRONIC MEDIA

4.1.1 TV Channels(i) The TV channels shall be mainly used for building the brand image of BSNL.

The media planning for TV advertising in Hindi, English and other prominent regional channels shall be the responsibility of corporate office.

(ii) The selection of channels should be based on the requirements, keeping in mind the segment to be targeted. The channels shall be selected based on their performance in terms of GRP, reach, frequency etc. Top few channels in each genre viz. entertainment, news, sports, movie, infotainment, music, spirituality etc. may be taken as per the requirements. A maximum of two main regional channels may be taken to ensure uniform branding across the country as decided by BSNL corporate office. Any method of media buying, be it FCT based or GRP based or a combination of both, may be resorted to as per the requirements. The value additions like program sponsorships, program branding, integrations etc. may also be taken based on merit on case to case basis.

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(iii) The work shall normally be awarded to the empanelled agencies based on competitive bidding and after ascertaining that the rates quoted are reasonable. BSNL can also enter into direct contract with the channels, if required, in those cases where it is beneficial for BSNL to have direct deal with such channels.

(iv) Spacing of spots should be planned in such a manner so as to avoid over exposure in a particular program or channel.

(v) Circles shall also make use of the presence of local channels for running scrolls in their respective circles for advertising local schemes.

4.1.2. Radio Channels(i) Radio is also a very powerful means of advertising and may be utilized for

brand building and sales promotion.

(ii) BSNL may take AIR channels and private FM channels for the above purpose. Since there is no bench mark available for rating of radio channels, the channels having larger foot prints and popularity shall be considered.

(iii) The work shall normally be awarded to the empanelled agency through competitive bidding and subsequent negotiations if required. However, a direct deal can also be entered into with the channels if required, in those cases where it is beneficial for BSNL to have direct deal with such channels.

4.2. PRINT MEDIA

4.2.1 Newspapers(i) Selection of national English and Hindi dailies shall be made based on

circulation and as per requirements. The circulation figures certified either by ABC, INS, IRS or NRS etc. shall be taken into account. In addition to the above, top two regional language dailies can be taken for release from corporate office. Allotment of work shall be on the basis of competitive bidding and negotiations, if necessary, keeping in view the current market rates and after ascertaining that the rates quoted are reasonable. The release shall be normally through empanelled agencies. However, BSNL reserves the right to release directly to the publications if required, in those cases where it is beneficial for BSNL to have direct deal with such publications.

(ii) While calling for competitive bidding, BSNL may call for rates on Per Sq. Cm/ Column cm or on CPT (Cost per Thousand) basis.

4.2.2. Magazines (i) The magazines/ periodicals are available for different genres namely Political,

Business, Financial, Telecom & IT, Sports, Lifestyle, In-flight etc.

(ii) The selection of magazines / periodicals shall be based on circulation or any other tactical requirements. The rates shall be finalized based on competitive bidding or negotiations after ascertaining that the rates quoted are reasonable.

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(iii) The release from corporate office shall be normally in English and Hindi magazines / periodicals. However, the release in regional language can also be done depending on the requirements.

4.3. INTERNET(i) Internet is also a powerful media for advertising and branding. Top few

portals shall be taken and the release be done either through agency or directly as per the requirement based on competitive bidding amongst the agencies or through direct negotiations with the portals

. (ii) The selection shall normally be based on number of hits and the offered

rates.

4.4. CINEMA HALLS Advertising in cinema halls gives more impact because of large screen size and captive audience and hence useful for brand building. Premier cinema halls can be considered for advertising. The rates shall be negotiated with the agency having sole and exclusives rights for advertising in various cinema halls.

4.5 OUTDOOR MEDIA (i) For outdoor media like hoardings, bus shelters, shop boards, glow sign

boards, out of home LCD screens, hoardings and translates at airports, railway stations, train branding (inside and outside) etc., the work shall be assigned to the empanelled outdoor media agency based on competitive bidding or negotiations based on exclusivity, after ascertaining that the rates quoted are reasonable.

(ii) The territorial circles can also utilize the same agencies for their outdoor advertising.

(iii) BSNL can also enter into direct marketing deals for exclusive outdoor properties with the agency having sole and exclusive rights for the same.

4.6 SPORTS & GAMES (i) BSNL shall target sports of national and international importance like Cricket,

Hockey, Tennis, Football, and / or the events like Asian Games, Olympic Games, Common Wealth games, World Cup etc. Further, BSNL can focus on brand building by creating an association with a particular sport / game.

(ii) For advertising on ground based properties, BSNL shall enter into direct deal with the agencies having exclusive rights.

(iii) Similarly, for advertising during the event on Television, a direct deal may be done with the channel having telecast rights or with Doordarshan, as the case may be.

(iv) The assistance of Advertising agencies may be taken wherever required or feasible.

4.7 IN FILM ADVERTISINGWith the increasing consumerism and availability of multiplexes, a film is watched by a large audience. Therefore, advertising within the film can also be considered.

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The selection of the film may be done either on the advice of empanelled agencies or taking presentation from the production house itself, on case to case basis.

4.8. EVENTS (i) Events of national and international importance, like International film festival,

fashion shows, Award ceremonies etc. where opportunities exist for branding, may be identified and be made use of.

(ii) BSNL can also organize its own series of events across the country using popular singers and / or other celebrities for branding.

(iii) BSNL should focus on certain specific events to create branding and associations.

(iv) Such proposals shall be considered on case to case basis.

4. 9 ACTIVATION / SERVICE LAUNCH (i) Whenever a new service is launched, there must be some Below The Line

(BTL) activities at local level and at established experience centres, static or moving, to enable the consumer to have first hand experience of the services.

(ii) BSNL may take assistance of Advertising agencies or Outdoor media buying agencies for this purpose.

4.10 BSNL shall endeavour to have innovative approach to exploit other new emerging media / methods in a proactive manner.

5. MARKET RESEARCH Focused and proactive market research shall be done through empanelled MR agencies for various works related to corporate level decision making for improving business interests of BSNL.

6. PUBLILC RELATIONS Following are the broad PR functions which can be carried out directly or with the help of PR empanelled agency:

(i) Hosting Press Conferences, preparing press notes and supplementing information to media.

(ii) Stopping and countering negative news.(iii) Writing letters to opinion leaders, commercially important customers (CICs),

political leaders etc. (iv) Works/ activities related to hospitality.(v) Information gathering from franchisees and using them for advertisements.(vi) Publishing house journal and BSNL news for franchisees.(vii) Attending of complaints and their quick redressal.

7. SPONSORSHIPSA budget shall be decided for sponsorship activities in the beginning of the financial year and shall be further sub divided in to various categories of activities as mentioned below. The sponsorship should be done within the budget allotted for specific category. Any deviation will require approval of the BSNL management.

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The proposal received on day to day basis can be considered based on following broad parameters:

7.1 Cultural Programme: (i) The cultural programmes of only renowned / reputed artists, organizations of

national level / repute should be considered. (ii) An assessment should be made about the deliverables and the value addition

to BSNL before taking a decision. (iii) Normally the programs held in Delhi shall be considered by corporate office. (iv) A particular group / artist / organization can be sponsored only once in a year. (v) No political / religious programmes should be sponsored.

7.2 Seminar / Conferences / Workshop etc. (i) The Seminars/ Conferences/ Workshops related to Science, Management

and Telecom should normally be considered. (ii) Such events / functions at Schools/ Colleges / Universities etc. can also be

considered. (iii) The speakers should be prominent persons (CEOs / CTOs, Experts etc.) (iv) An assessment should be made about the deliverables and the value addition

to BSNL before taking a decision.

7.3 Mela/ Medical Camps etc. (i) Such Mela / Camps may be organized wherever sponsored by either Govt. or

NGOs (Regd.)(ii) An assessment should be made about the deliverables and the value addition

to BSNL before taking a decision.

7.4. Exhibition / Road Shows(i) BSNL should participate in major national / international exhibitions related to

Telecom/ IT / Science / IITF / Convergence /Supecomm/ India Telecom / Management etc. BSNL management should, preferably decide the participation in the major exhibitions in the beginning of the year itself.

(ii) Any General / Consumer exhibition, where visitors can be large audience / groups for BSNL business.

(iii) Road-shows exclusively being conducted by BSNL, MTNL, DOT or related government organization.

7.5 Individual Advertisement RequestsAny individual request related to Telecom / IT/ Education / Management / Environment protection / Drinking water / Social causes and health related issues etc. can be considered by ECM / BSNL Management on its merit keeping in view the benefits likely to be accrued to BSNL wilthin the budget allotted under this category.

7.6 Advertisements in Special Issues BSNL may sponsor the specific issues in newspapers / magazines / souvenirs/ journals released on specific occasions like 15th August, 26th January, 2nd October, 17th May, Govt. days / PSU days/ various anniversaries / special events etc. Such sponsorships can be entered into through agencies or direct negotiations on case to case basis.

7.7 Training

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(i) The Marketing cell shall co-ordinate with ALTTC/ BRABRAIT to develop marketing related courses.

(ii) The cell shall also be responsible for the training to marketing heads of circles and other staff.

(iii) It shall also issue the required guidelines related to training in Marketing.

7.8. Printing(i) The printing of Corporate Brochures, Folders for each service, Tariff Booklets

and POP material for Sales points shall be done based on the requirements and budget allocated on case to case basis.

(ii) The printing of Diary / Calendar/ Corporate Gifts/ Press-notes / communication to subscribers etc. shall be the responsibility of the Marketing cell.

7.9 In-House Publications: (i) The Marketing cell shall be responsible for publishing In House Journal,

Annual Reports, Service brochures etc. as per requirement. (ii) The Marketing cell shall also be responsible for printing of Calendars, Diary,

Posters, Stickers, Greetings cards etc. as per the requirement and approval of Director (C&M), CMD or BSNL Management.

7.10 BSNL’s Website (i) Display of information on various services shall be done on BSNL’s website

as per the requirement. (ii) The information shall be presented on the website in such a manner that it is

easy to understand and user friendly.(iii) The information so displayed shall be updated on continuous basis.

8. The Indian telecom sector is passing through an extremely competitive phase. The revenues in the telecom are under strain and all the operators are trying to increase their market share and their bottom lines by adopting aggressive and innovative marketing strategies. The competition is likely to get further intensified with the entry of large number of new players in the market and, therefore, BSNL needs to review these policy guidelines periodically to synchronize with the market conditions.

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