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Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
Anoop k r 0314-mobile phone consumers revealed preferences
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Anoop k r 0314-mobile phone consumers revealed preferences

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  • 1. MOBILE PHONES – A STUDY OF CONSUMERS’ REVEALED PREFERENCE IN BANGALORE CITY A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY. Submitted By Mr. Anoop K R Reg.No-03XQCM6006 UNDER THE GUIDANCE OF DR. N.S. VISWANATH RESIDENT DIRECTOR INTERNAL GUIDE M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARTIYA VIDYA BHAVAN. BANGALORE-560001 2003-2005_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 1 of 80
  • 2. DECLARATION I hereby declare that the research work embodied in this dissertation entitled“MOBILE PHONES – A STUDY OF CONSUMERS’ REVEALED PREFERENCEIN BANGALORE CITY”, has been carried out by me under the guidance andsupervision of Dr.N.S.Viswanath, Resident Director, M.P.Birla Institute ofManagement, Bangalore (Internal Guide). I also declare that this dissertation has not been submitted to anyUniversity/Institution for the award of any Degree/Diploma.Place: Bangalore (ANOOPK R)Date: 17th June 2005 Reg No.03XQCM6006_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 2 of 80
  • 3. GUIDE’S CERTIFICATE I hereby declare that the research work embodied in this dissertation entitled“MOBILE PHONES – A STUDY OF CONSUMERS’ REVEALED PREFERENCEIN BANGALORE CITY”, has been undertaken and completed by Mr. Anoop K Runder my guidance and supervision. I also certify that he has fulfilled all the requirements under the covenantgoverning the submission of dissertation to the Bangalore University for the award ofMBA degree.Place: Bangalore(Dr.N.S.Viswanath)Date: 17th June 2005 ResidentDirector_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 3 of 80
  • 4. PRINCIPAL’S CERTIFICATE I hereby certify that this dissertation is an offshoot of the research workundertaken and completed by Mr. Anoop K R under the guidance ofDr.N.S.Viswanath, Resident Director, MPBIM, Bangalore (Internal Guide). I also certify that he has fulfilled all the requirements under the covenantgoverning the submission of dissertation to the Bangalore University for the award ofMBA degree.Place: Bangalore (Dr. N.S. Malavalli) thDate: 15 June 2005. Principal_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 4 of 80
  • 5. ACKNOWLEDGEMENT I am extremely grateful to all those who have shared their views,opinions, ideas and experiences which have significantly improved this ProjectReport. I would like to express my sincere thanks to, Dr. N.S.Viswanath,Resident Director, M P Birla Institute of Management, Bangalore for hisguidance and sincere efforts towards bringing in years of his vast industrialexperience into this project. I am very thankful to all the respondents and the employees for theircooperation in the course of my study. A special thanks to my friends and family for their encouragement andhelp in the successful completion of the study. ANOOP K R_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 5 of 80
  • 6. CONTENT SHEET Chapter No Topics Page No Abstract 1 1 Introduction 2 3 Literature Review 3 7 Research Design 4 15 Data Analysis and 19 5 Interpretations Findings of the Study 60 6 Suggestions and 64 7 Recommendations Annexure 66_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 6 of 80
  • 7. LIST OF TABLESTable no Topic T1 Brand currently used by the respondent T2 Consumers’ mindset T3 Frequency of changing handset T4 Consumers’ top preferred brand T5 Rating different parameters T6 Features preferred by the consumers T7 Consumers’ satisfaction level T8 Other handset preference T9 Source of awareness T10 CONSUMER ATTITUDES about different brands T10.1 Price T10.2 Ability to pay T10.3 Brand name and Make T10.4 Quality_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 7 of 80
  • 8. T10.5 User – friendliness T10.6 Reliability T10.7 Technological superiority T10.8 Pride T10.9 Utility T10.10 Brand Power T10.11 Spread Effect_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 8 of 80
  • 9. LIST OF GRAPHSTable no Topic G1 Brand currently used by the respondent G2 Consumers’ mindset G3 Frequency of changing handset G4 Consumers’ top preferred brand G5 Rating different parameters G6 Features preferred by the consumers G7 Consumers’ satisfaction level G8 Other handset preference G9 Source of awareness G10 CONSUMER ATTITUDES about different brands G10.1 Price G10.2 Ability to pay G10.3 Brand name and Make Quality G10.4_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 9 of 80
  • 10. G10.5 User – friendliness G10.6 Reliability G10.7 Technological superiority G10.8 Pride G10.9 Utility G10.10 Brand Power G10.11 Spread Effect_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 10 of 80
  • 11. ABSTRACT_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 11 of 80
  • 12. ABSTRACT Mobile phones in today’s world have become a necessity in the lives ofcommon man. When a person decides to buy a mobile phone, he looks into variousaspects like technology, make, features, price etc. Since the mobile phone market isvery dynamic i.e. new models are introduced very frequently into the market, theconsumers’ needs, tastes and preferences will also change accordingly. This survey provides valuable data in providing the necessary informationregarding the changing trends in the mobile phone market. This survey aims to throwlight on the consumers’ attitudes towards the different brands and his/her expectationsfrom the product and, then estimate his/her level of satisfaction after using theproduct. The survey also tries to find out which are the brands preferred by theconsumers and the preference they give to different parameters like Price, Quality,Brand name and Make etc, while choosing a mobile phone. Taking into account the above mentioned objectives, we can say in short thatthe study is being conducted to know the consumer buying decisions while choosing amobile phone._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 12 of 80
  • 13. INTRODUCTION_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 13 of 80
  • 14. HISTORY OF MOBILE PHONES The mobile phone is becoming ubiquitous even in India. With a user base ofmore than 12 million today, and growing at a rate of 600,000 every month, oneexpects India’s mobile phones to match the installed base of 40 million land lines inthe next couple of years. But even this growth is dwarfed by a cellular user base ofmore than 200 million and growth of nearly three million per month in China. Withglobal sales of 423 million phones in the year 2002 and 112 million in the first quarterof year 2003, mobile phones reach nearly a billion people today. Naturally, the mobilewith its potential to touch practically every human being on earth, is a remarkableinvention in human history. What is amazing about the cell phone is that it is just 30 years old. It was onApril 3, 1973, that Martin Cooper of Motorola invented a device which had thefunctionality of what is known today as a cellular phone. At that time, AT&T, theglobal leader in telecom, was focusing on the car phone — a bulky device targeted atthe up-market user who could afford to spend thousands of dollars. Motorolaengineers, on the other hand, under the pioneering leadership of Marty (who at age 74continues to invent next generation telephony through his company Array.com)focused on a device that allowed people to talk as they moved to those who were alsoon the move. Of course, the first version of the cellular phone was a bulky instrumentweighing 30 ounces, measuring 3” deep and 1.5” wide and with a huge height(compared to today’s instruments) of 10”. Several independent developments havecreated an amazing maturation of the original invention. These include millions ofdollars devoted to R&D (Motorola alone spent $150 million over 10 years); creativecompanies like Nokia & Ericsson which systematically perfected the technologythrough several innovations; universal standardization (GSM) and the widespreadadoption of standards by global telecom companies; amazing developments in micro-electronic devices that include micro-processors, DSP and memory devices; displaytechnology such as color LCD; electronics and semiconductor manufacturing_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 14 of 80
  • 15. expertise of Japanese, Korean and Taiwanese companies; unbelievable economics ofmanufacture, logistics and retail; and, of course, the IT/internet hype of the lastdecade. Just as plain telephony evolved over the years — from mechanical, electro-mechanical, electronic, and finally to digital telephony — mobile telephony hasevolved from first generation (1G) analog phones to second generation (2G) digitalphones (GSM, CDMA and WLAN phones). The next generation phones such asGPRS (2.5G) and third generation (3G) phones are round the corner too. Differentcountries adopt different frequency standards, the dominant ones being800/1800/1900 MHz. Thanks to the falling prices of cell phones, countries like China,India and Vietnam could bridge the digital divide. Mobile phones today have gone beyond simple telephony. They combine PDA(personal digital assistant) functions, Internet browsing/e-mail functions andoptionally even a camera, FM radio receiver or MP3 player, and games. Specialfeatures of mobile phones that are widely used include SMS (short messagingservice), MMS (multimedia messaging service), WAP/Bluetooth/Infrared/USBconnectivity and ring tones. Advanced feature phones include GPS (globalpositioning system) and GIS (geographic information system) to provide location-aware services for tracking, navigation and positioning. Cell phones today are available in a variety of sizes, shapes, colors, weight,features, and battery. You have inexpensive varieties in the Rs 2,000 to Rs 4,000range; slim phones with color cost Rs.5, 000 to Rs.15, 000; feature-rich, highresolution, color display-equipped phones cost in the Rs 10,000 to Rs 20,000 range;integrated PDA/internet/office features, camera, MP3 player functionality pushesprices to the Rs 20,000 to Rs 40,000 range; for the super-rich there are platinumphones with diamond-studded keys in the $20,000 to $1 million range. There arethrowaway phones too, that cost just about Rs 1,000. Truly the 30-year “young” cellphone has changed the world!_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 15 of 80
  • 16. Today, Mobile phones have already started functioning as more than justcommunication devices. No wonder, lately these devices are becoming indispensable. In addition to making or receiving calls, SMS, mobile users are now able toread e-mail, news headlines, weather forecasts, click pictures and listen to music. Thats not all. These features could sound routine. The Japanese have nowfound another use for cell phone. Sometime later, one could pore over full-lengthnovels on the tiny screens. Japanese have begun to import novels of considerable sizeon the mobile phone memory. Thus, making them readable on the cell display. Butonly a few lines pop up at a time due to the small size of the phone screen. However, improvements in the quality of liquid-crystal displays and featuressuch as automatic page-flipping, or scrolling, make the endeavor far more enjoyable. Several surveys indicate that most users take advantage of this offer in order toread classical novels, previously abandoned during school, and that they find that thesmall displays not only induce less fatigue, but they also enable them to read in darkerconditions, for instance when reading bedtime stories to their children at home.However few ponder on how feasible it would turn out to be. Well, one has to waitand see on how an increasing number of users will adopt this habit._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 16 of 80
  • 17. LITERATURE REVIEW_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 17 of 80
  • 18. LITERATURE REVIEW The Indian Cellular Market is entering a boom period after years of quasi-stagnation. Gartner estimates that by 2005, cellular subscribers in the country willnumber 30.9 million, up form 6.4 million at the end of March 2002. By then, Indiawill be the fastest growing cellular market in Asia Pacific (in 2000, it was thePhilippines and China) with 36 percent growth over the previous year Mobile operators will provide an estimated 45 per cent of additional telephoneconnections during the year. Cellular subscribers are expected to grow 80 per cent bythe end of financial year 2003 to touch 1.15 crore, up from 64 lakh subscribers infiscal 2002, according to an ICRA report on telecom industry. This would mean that cellular telephones would account for 20.5 per cent ofthe total telephone connections in India compared to 14.4 per cent last year. However,the cellular density would still remain a low 1.1 per cent compared to the fixedteledensity of 4.3 per cent. However, the report points out that, growth in cellulartelephony could vastly exceed these projections, if the system of calling party pays isimplemented. Doing some more crystal ball gazing, the ICRA report points out that thecellular subscriber figure is expected to touch three crore by 2005. At the same time,the fixed line network is expected to expand to about six crore by 2005 from 3.84crore lines by 2002.Revenue growth, however, will lag the growth in subscriptions.Such is the massive demand for SMS globally that the GSM Associations, a wirelessand cell-phone organization envious forecast of 10 Billion messages a month by end2000 was achieved during September - three months earlier than predicted. TheAssociation has now revised its year-end forecast for December to 15 Billionmessages per month. According to the GSM Association, text messages sent acrossthe world hit a staggering 50 billion in Q1 this year. This represents an impressiverise. During the same period in 1999 there were only 3 billion text messages sent, Q1_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 18 of 80
  • 19. 2000 saw around 10 billion, and now theres five times that figure being sent acrossmore than 500 million global GSM users. In India also, Mumbaites are also sending more than 28 Lakh SMS messagesper day. SMS reached its peak on New Years Day (2000) when cell phone users wereflooded with New Year greetings. The AirTel network in New Delhi handles around 6Lakh SMS messages on an average. Just before the arrival of the New Year, thenetwork handled more than 74,000 calls between 11 p.m. (31 Dec 2000) and 1 a.m. (1Jan 2001). Essar Cell phone claims that it handled more than 9 Lakh SMS messageson that day. In Mumbai on New years day over 15 Lakh SMS Messages were sent between10pm and 3am. On Valentines day 9 Lakh messages were sent. Over weekends, BPLand Orange witness traffic to the extent of eight Lakh messages daily, with thenumber peaking in the evening. Of an average traffics of 60 Lakh cellular calls a day,SMS accounts for 5 Lakh messages a day. 60,000 messages flow down the AirTel channel and another 65,000 getsprocessed through Spice Telecom. In short, it is rush hour for SMS traffic inKarnataka. In Manipal, SMS is believed to be doing roaring business as some 80 per centof cellular users in the town are students. When AirTel launched SMS in April 2000, the initial average response wasaround 18,000 messages. Similarly, when Spice Telecom had carried out a study twomonths ago it was found that 37,000 SMS messages were received per day. The bigjump has happened over the last couple of months. And emoticons - those symboldenoting emotions - have helped. BPL Mobile which conducted a consumer research survey across its Keralacircle found that 75 per cent of its total subscriber base used SMS as a frequent mode_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 19 of 80
  • 20. of communication. It was found that 35 per cent of the users were youngsters, and that50 per cent of them used the facility for romance. BPL Mobile today clocks 7 lakhmessages a day across all its circles. Shopping is moving to the mobile world, giving everybody with a mobilephone access to a real-time shopping experience, regardless of his or her location.But theres much more to mobile e-commerce than just on-line shopping. It presents anew way to compare deals; pick-up impulse purchases and reaches the consumerwherever they are making their buying decision, be that, in the local high street, onthe bus, at a friends home with a catalogue in hand. For operators and mobile portalsadvancing the boundaries of mobile internet services the search is on to createinnovative new sources of revenue. Mobile Marketing and Advertising is the way to invest money today, and isprojected as the optimum source of high growth revenue combined with high appealto users. The current competitive business environment has lead to a growing demandfor mobility, and for 24/7 access to information and services. Organizations whichcapitalize on this demand will be leaders in the Internet market of the future. IndusMobile is proven wireless solutions for business can gain your organization thatcompetitive advantage.Mobile Strategy • Capture maximum telecommunications revenue potential with minimum geographical coverage to maximize its revenues and margins. • Build high quality mobile networks by deploying state-of-the-art technology to offer superior services. • Use the experience it has gained from operating its existing mobile networks to develop and operate other mobile networks in India and to share the expertise across all of its existing and new circles._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 20 of 80
  • 21. • Attract and retain high revenue generating consumers by providing competitive tariffs, offering high quality consumer support, proactive retention programs and roaming packages across all of its mobile circles. • Provide affordable tariff plans to suit each segment of the market with a view to expand the reach, thereby increasing the mobile consumer base rapidly.DOMESTIC SCENARIO South Koreas Samsung and LG, already challenging top handset maker Nokia inthe worlds biggest markets, are taking the fight to the fastest-growing market,offering fancy phones and aggressive marketing in India. Rock bottom tariffs, a room-to-boom phone ownership rate of just four in 100people and galloping demand have attracted global players such as Nokia, Motorola,Samsung Electronics and LG Electronics to Indias $2.5 billion market. The Indian market is growing rapidly and the mobile penetration rate is still low.Its got great potential. India is a market that Samsung and LG really care aboutbecause of the sheer volume thats involved. About 1.6 million users sign up each month, and the 45-million subscriber base isforecast to more than double by December 2005, with call rates as low as 2 U.S. centsa minute. Song estimates more than 37 million mobile phones will be sold in India in 2005,with the annual number likely to rise to 50 million by 2008. Korean firms entered India late, but Samsung quickly built market share withstylish phones and color screens aimed at the high-margin sector, while LG aimed forthe low- to middle range. Nokias offerings cross the spectrum, but it has stuck mainlyto low- to medium-priced bar phones._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 21 of 80
  • 22. The Koreans are very serious contenders for the leadership position in India asthey have demonstrated the ability to take share away in an exploding market.FANCY PHONES SELL Analysts say Samsung and LG have won a following by aggressively hawkingflip-tops and clamshells with polyphonic ring tones and color screens. Both have a lotmore advertising and marketing spend compared to other players. No precise market data is available, but analysts say Nokia, with an estimated45 percent share, is still leading. Even so, Samsung is the largest player in the color screens and photo-snappinghandset niche, selling 100,000 units a month. With more than half of Indias billion-plus population below age 25, the market is ripe for experimentation and newtechnologies. The future is color and cameras. Mobile phones are now a tool forentertainment as well as connectivity in terms of voice and data. Over the past two years, the Korean firms have piggybacked on a hugeexpansion drive by Reliance Infocomm Ltd., the CDMA-based mobile services armof the Reliance group that tops the Indian market. Reliance, which has more than 10 million users, is expanding its network to5,000 towns from 1,100 at present, and analysts say half the firms CDMA handsetpurchases are through LG. LG first shipped CDMA handsets to India in late 2002, followed by colorhandsets in April 2003 and camera phones in January 2004. By March it had over halfof Indias CDMA market. LG aims to sell 3 million handsets in India in 2004, or about 7 percent of itsglobal volume sales, said a spokeswoman._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 22 of 80
  • 23. Samsung India expects to sell 2.8 million mobile phones in 2004, up from 2.5million last year. Analysts expect handset revenue to rise 16.6 percent on the year toabout $350 million. Nokia has fought back by entering the CDMA market and also by offering alarger menu of low-priced mobile phones in a market where more than 60 percent ofphones sell for about $70. Samsung, the third-largest mobile phone maker after Nokia and Motorola,raised its global market share to 13.5 percent in the third quarter from 11.2 percent ayear ago, according to Strategy Analytics. LG, meanwhile, overtook Japanese-Swedish joint venture Sony Ericsson as the fifth largest. Its share rose to 7 percentfrom 5.7 percent.SALES NETWORK ADVANTAGE The South Korean firms enjoy another edge -- their nationwide distributor andretail presence in the domestic consumer durables market. South Korean firms withleadership positions in the $4 billion consumer electronics market have changed thedynamics of the booming sector. Both companies are now setting up plants to manufacture phones in India.Although Samsungs investment plans are not known, LG will plough $60 million intoa mobile phone plant that will make 20 million GSM and CDMA phones a year by2010. Half of those would be earmarked for export. There is the huge domestic market to cater to and in the longer run; theopportunity to address the needs of the global market is there.MOTOROLA TAKES AWAY MARKET SHARE FROM NOKIA Nokia is the world leader when it comes to mobile phones. However, they arecontinuing to lose this advantage to competition as Motorola chips away some of their_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 23 of 80
  • 24. market share in the last couple of months. Finland based Nokia saw their market sharefell to 30.4% during the first three months of the current year. This is a drop from 33% market share they had at the end of last year. Thereport was released by the market analysts Garner Incorporation. On the other hand,Motorola witnessed a growth in their market share as they now have captured 16.8%of the mobile market. This share is up from 16.3% at the beginning of the year. Samsung also didgood as they now rule 13.3% of the market up from 12.2%. The market is continuingto see aggressive pricing from the various companies trying to woo the consumersaway from each other. Nokia itself has taken a lot of measures to cut costs and lowerthe prices of their models. Some of the plans include opening manufacturing units in Asian countries tomanufacture cheaper mobile phones. One of the major markets where they fail topenetrate is the North America and they would love to expand their range in the US toentice more consumers. Their long-term goal is to achieve a market dominance of40%, which looks like a tough deal now._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 24 of 80
  • 25. RESEARCH DESIGN_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 25 of 80
  • 26. RESEARCH FOCUSSpecifically, the research investigation will convey the following foci: - the study will bring out the extent of consumer satisfaction as a result of their experience - the consumer expectations from the mobile phones they are using or intending to buyOBJECTIVE OF THE RESEARCH - to analyze the buying behavior of consumers - to assess the consumer ’s expectations from the product - to examine the consumer ’s attitudes towards different mobile phones - to estimate the level of consumer satisfaction after using the productRESEARCH DESIGN The research designs to find out the consumers’ needs while using a mobilephone and his/her buying behavior when he/she decides to purchase a mobile phone.The various consumer needs and his/her buying decisions are found out based onsurvey with the aid of a structured questionnaire with both open ended and close-ended questions.RESEARCH METHODOLOGY The target respondents of the survey are the mobile phone users in Bangalorecity between the age group 22 – 30 years. The study being qualitative, survey is thefocal point. The primary data will be collected through in-depth interview techniquewith the aid of a structured questionnaire. The choice of this technique was based onthe assumption that the responses are relatively true. It is believed that this techniquesubstantially helps to gather information regarding the consumer preferences and their_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 26 of 80
  • 27. expectations. It is proposed to take a sample of 50 respondents in Bangalore city andto draw the inferences depending upon the data distribution obtained after the survey.TYPE OF RESEARCHSurvey Research Surveys are best suited for exploratory and descriptive research. Companiesshould take up surveys to learn about consumers’ expectations, tastes and preferences,and their level of satisfaction.SAMPLING TECHNIQUE Simple Random Sampling technique is used. This type of sampling avoids anybias in choosing the sample.SAMPLE SIZE The chosen sample size for research is 50. The sample is derived fromrespondents within Bangalore city.SAMPLE DESCRIPTION The sample is chosen at random from among a number of respondents.INSTRUMENTATION TECHNIQUES The questionnaire technique is used for the survey and the reasons for using thisapproach are; • It covers wide area • It is not an expensive affair • Original data could be obtained • It is free from all bias • Easy to tabulate and understand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 27 of 80
  • 28. COLLECTION OF DATA Data has been collected from both primary and secondary sources. Primarydata is collected using the questionnaires and Secondary data is collected from books,internet, magazines, etc,LIMITATION - Responses are made as authentic as possible. - Non response errors could be present although efforts are on to minimize it - Response errors have not been estimated - The study is exploratory - The study is limited to consumer s within Bangalore city._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 28 of 80
  • 29. DATA ANALYSIS AND INTERPRETATION_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 29 of 80
  • 30. 1. Brand currently used by the respondentTABLE – T1 Brand No. of Respondents Percentage LG 1 2.0 Nokia 38 76.0 Samsung 6 12.0 Sony 5 10.0 Total 50 100.0GRAPH – G1 80 70 60 50 LG Percentage 40 NOKIA of Users 30 SAMSUNG 20 SONY ERICSSON 10 0 Mobile phone brands_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 30 of 80
  • 31. OBSERVATION: Among the various companies manufacturing mobile phone,Nokia has the best Marketing Mix strategy and it is designed to suit specific segmentsto catch up with the world market. Consumers always prefer a reliable product atoptimum cost, majority prefers products, which are widely advertised and areavailable at convenient locations. Nokia cell phones meet all this criteria and hence,from the user’s angle it is the highest sold commodity in this competitive market. It isbeen observed that majority of the respondents use Nokia i.e. 76%. 12% are usingSamsung, 10% are using Sony and a very small percentage of respondents areinterested in using LG.INFERENCE: The performance criteria in terms of reliability, durability andmaintainability appear to be the key factors in influencing consumers to buy theproduct. With continuous R&D efforts and cost-effective means of manufacturing thecell phones, Nokia’s market share is quite high and undoubtedly Nokia is the marketleader in this category. Consumers, who decide to buy a cell phone for the first time,prefer to go in for Nokia phones because of the availability in a wide range of varietyand price ranges. It can be inferred from the above data that consumers are moreinclined towards Nokia mobile phones than Samsung and Sony._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 31 of 80
  • 32. 2. The first thing that comes to the mind of the consumer when he hears theword ‘Mobile Phone’.TABLE – T2 No. of Respondents Percentage Calls 15 30.0 Messages 12 24.0 Necessity 21 42.0 Status Good 2 4.0 Total 50 100.0GRAPH – G2 45 40 35 30 Calls 25 Messages 20 Necessity 15 Status good 10 5 0_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 32 of 80
  • 33. OBSERVATION: After the introduction of mobile phones a decade ago,accessibility of individuals within the city or outside the city became easier. Initially,the cost of cell phones was quite high and as the sales volume picked up; the rateswere brought down and were affordable by all income groups. With the mobility ofpersons in discharging their work, the need to contact consumers, office staff, andhouseholds became an important issue. The need for cell phone became a necessityright from the top executive of the company to a vendor on the street. The serviceproviders like Airtel, Spice, Hutch, etc also reduced the tariffs to attract moreconsumers. The incoming calls were made free about 5 years back. With this, theneed for cell phones increased and today it is considered as an item of possession,even for students and professionals.INFERENCE: Mobile phones facilitate making and receiving calls to any destinationat any time. The facility of call registers enables users to know the called numbers incase they are unable to receive their calls while the phone rings. With calleridentification facilities, a receiver has the option to either receive or reject a callaccording to his criteria. The latest version of the cell phones, which only weighs 75to 80 grams, appears to have further increased the passion for the usage of a cellphone by many consumers. The necessity factor is augmented because of theavailability of handsets on installments and low interest rates. For top-levelexecutives, it is certainly a status symbol. For many others it is a necessity and for afew it is a pride._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 33 of 80
  • 34. 3. Frequency of changing the handsetTABLE – T3 No. of Respondents Percentage <6 months 2 4.0 6 months 3 6.0 1 year 23 46.0 > 2 years 22 44.0 Total 50 100.0GRAPH – G3 <6 months 6 months 4% 6% >2 years 44% 1 year 46%_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 34 of 80
  • 35. OBSERVATION: The advent of technological changes and continuous efforts byR&D Engineers result in introduction of handsets with newer and latest features. Thepace at which new models are getting into is quite fast. A time period of 6 months to 1year appears to be reasonably the life cycle of a mobile phone for manymanufacturers. Although many consumers prefer to change the handset to satisfy theirurge to go in for new models, many postpone the decisions since the exchange valueis quite low. A usage period of 1 to 2 years appears to be normal before a consumerdecides to go in for a new handset. This is one of the main reasons why 46% of therespondents have expressed their view that the frequency of changing handset isapproximately 1 year. Many consumers prefer to retain their sets since they are usedto various operations and might not have faced any problems with their present sets.INFERENCE: Companies manufacturing cell phones should openly advertise “Buyback schemes” which creates interest in the consumers to go in for a change. Enoughawareness should also be created highlighting technological improvements and cost-advantage to initiate the buyers for changing the handset._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 35 of 80
  • 36. 4. Top Brand that is most preferred by the consumersTABLE – T4 No. of Respondents Percentage Nokia 43 86.0 Samsung 3 6.0 Sony 4 8.0 Total 50 100.0GRAPH – T4 8 6 86 0 20 40 60 80 100 Nokia Samsung Sony_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 36 of 80
  • 37. OBSERVATION: Nokia phones have become popular through out the world. Thecompany has started manufacturing these phones in India and also in other countries.The number of varieties and models available in Nokia is quite high. Keeping thesefactors in view, Nokia has also strengthened its distribution activities and havefranchised many dealers who sell those phones at convenient locations. The mediaadvertisement publicity as well as sales promotion has created the brand image. Theseare the reasons why 86% of the respondents feel that Nokia is one of the mostpreferred brands by consumers.INFERENCE: The marketing efforts by Nokia manufacturing company areextremely good. They make use of all forms of marketing such as Direct Marketing,Marketing through franchise distributors, dealers and retailers. The Hoardings andAdvertisements on print and electronic media are very impressive and rewind thememory space of consumers for a very long time. It has become the most preferredbrand because of technical superiority, marketing capabilities, price control and alsoeffective after sales service._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 37 of 80
  • 38. 5. Consumers’ rating on the various parameters they take into account whilepurchasing a mobile phoneTABLE – T5 Brand name User- TechnologicalParameter Price Quality Reliability & friendliness Superiority makeVery low 2 4 2 2 2 2 Low 10 0 6 2 0 8Moderate 36 16 4 14 14 16 High 24 40 26 30 40 40Very high 28 40 62 52 44 34GRAPH – G5 70 60 50 Very low 40 Low Moderate 30 High 20 Very High 10 0 Price Brand Quality User-friendly Reliability Technology_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 38 of 80
  • 39. OBSERVATION: The research carried out has brought out the fact that theconsumers in the process of selecting a handset give importance for quality since it isone of the characteristics which influences product buying. Quality is defined a fitnessfor use and this aspect is incorporated in the handset made by most of themanufacturers. Consistency in performance each time and all times is reliability. The phonesneed to be reliable and must be designed to operate under extremes of conditions suchas high temperature, cold and rainy conditions, etc. Consumers’ ultimate choice ofbuying a cell phone is based on cost competitiveness and brand popularity.The phones must be capable of being handled by all kinds of consumers irrespectiveof whether they are qualified or unqualified. The survey has brought out the fact thatuser-friendliness is the most important criteria in the selection of a mobile phone.Consumers are aware that, when they expect more or better features, they must beprepared to pay more cost and that is how cost is the least preferred factor.INFERENCE: The above facts necessitates that all manufactures need to give dueimportance by incorporating quality in design to make the handset more and morerobust. Before launching any new models, a pre-testing may be undertaken toascertain that the users are comfortable in handling and using the cell phones. Aone/two page voucher may also be supplied highlighting important facilities available.This reduces the monotony of the consumers to pick user manuals and understand theuser-friendly characteristics. Since the volume of consumption is increasinggradually, manufacturers must be able to hold on to the present prices that extendmore facilities. Continuous updation to match the present and future technological changesand innovations must be considered by manufacturers. New models shall invariablybe brought into the market but spares support must continue to be provided to theearlier models._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 39 of 80
  • 40. 6. The features that are most preferred by the Mobile phone usersTABLE – T6 Features No. Of Respondents Percentage Color display 31 62% Radio 29 58% Camera 28 56% Infra red & Blue tooth 25 50% GPRS 19 38% Others 5 10%GRAPH – G6 70 60 50 Percentage of 40 Users 30 Features 20 10 0 Color Radio Camera IR & BT GPRS Others display_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 40 of 80
  • 41. OBSERVATION: It can be observed from the data given above that majority of therespondents prefer cell phones with Color display i.e. 62%. With the advent intechnology, the consumers’ also demands keep increasing. Many of the respondentshave also given good preference to other features like Radio, Camera, Infra-red, Blue-tooth, GPRS etc. These are the features that the consumers are basically lookingforward to in future when they buy a mobile phone.INFERENCE: From the above data, it can be inferred that the consumers’ needs arenever ending. They always demand more and more. Nowadays, almost all thecompanies are coming up with phones with latest features. But the ones in thissegment are priced very high. As a result, it cannot be afforded by the common man.Companies should make efforts to bring down the cost of such mobiles to increase itssales._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 41 of 80
  • 42. 7. Consumers’ satisfaction level with their present handsetTABLE – T7 No. of Respondents Percentage Yes 46 92.0 No 4 8.0 Total 50 100.0GRAPH – G7 No 8% Yes 92%_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 42 of 80
  • 43. OBSERVATION: Consumer satisfaction is one of the main objectives of marketing.The level of satisfaction is a combination of production, price, promotion, distributionand after sales service. As per the earlier tables, majority of the cell phone users areusing Nokia small percentages who use the other brands have generally expressed thatthey are satisfied with their handsets. This indicates that they are getting the value forthe money spent.INFERENCE: It shall be the endeavor of manufacturers to delight the consumer byoffering more facilities and also by continuous improvements; they can aim at higherlevels of satisfaction._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 43 of 80
  • 44. 8. The handset that the consumers would prefer buying in futureTABLE – T8 No. of Respondents Percentage LG 2 4.0 Nokia 33 66.0 Panasonic 1 2.0 Samsung 7 14.0 Sony 7 14.0 Total 50 100.0GRAPH – G8 70 60 50 Sony 40 Samsung Panasonic 30 Nokia LG 20 10 0_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 44 of 80
  • 45. OBSERVATION: In order to know the views of consumers regarding theirperformance on any other brand other than what they possess, it was mentioned thatconsumers have once again preferred Nokia as the best choice. This shows the strongbrand affinity and continues use of Nokia as the preferred choice. A small percentagehave only expressed that they prefer Samsung, Sony and LG.INFERENCE: Nokia as a market leader, enjoys the highest brand popularity, brandloyalty and brand image. The first preferred of any consumer is Nokia which marketsits product on the keyword “Connecting people”. The ergonomic features andaesthetic characteristics have enabled this brand to enjoy the highest market share.The other brands like Samsung and LG may adopt a total shift in their marketingapproach to compete with the present market._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 45 of 80
  • 46. 9. Medium for consumers’ awareness about their handsetTABLE – T9 No. of Respondents Percentage Friends 25 50.0 Relatives 6 12.0 Ads 16 32.0 Others 3 6.0 Total 50 100.0GRAPH – G9 Others 6% Ads 32% Friends 50% Relatives 12%_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 46 of 80
  • 47. OBSERVATION: The source of awareness of the brands selected by the users isthrough Word of Mouth advertising. Friends and family members play a dominantrole in influencing buyers. Advertisement in print and electronic media createsawareness on the availability of brands. The out door advertisement throughHoardings provides additional information and helps the consumers to select theirbrands.INFERENCE: Brand popularity is a direct measure of the attitudes, beliefs andperception of users. Satisfactory performance of the handsets initiates the buyers toinfluence others to buy the same brands owned by them. This creates a chain effect ina few people telling many and many telling many more. It also depends on how thedealers and retailers help the buyers in the process of selection and decision making.Manufacturers should give equal importance not only for media advertising but alsofor sales promotion and personal selling. Sufficient resources should be providedtowards advertising budget to make the brands popular and stand out in the market._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 47 of 80
  • 48. 10. CONSUMER ATTITUDES TOWARDS DIFFERENT BRANDS10.1 Consumers’ attitude about the Price of some of the top brands of mobilephoneTABLE – T10.1 Sony Nokia Samsung Motorola Ericsson LG Very low 2 1 3 1 2 Low 5 5 6 3 8 Moderate 11 17 24 22 23 High 21 24 13 16 13 Very high 11 3 4 8 4 Total 50 50 50 50 50GRAPH – G10.1 50 45 40 35 30 Very low Percentage of 25 Respondents Low 20 15 Moderate 10 High 5 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brands_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 48 of 80
  • 49. OBSERVATION: It can be observed from the above given data that most of therespondents found the Price of Nokia and Samsung high i.e. 21% and 24%,respectively. They found the Price of Motorola, Sony Ericsson and LG moderate.24%, 22% and 23% respectively felt so. Very few people felt that the prices of thesebrands are either very low or very high.INFERENCE: Price is one of the most important factor consumers take intoconsideration when purchasing a mobile phone. They prefer products that are pricedoptimum. The price of the product measures their ability to pay. Companies shouldmake efforts to ensure that their products are priced optimum so that it can beafforded by he common man._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 49 of 80
  • 50. 10.2 Consumers’ attitude about their Ability to pay for the below listed brands ofmobile phonesTABLE – T10.2 Sony Nokia Samsung Motorola LG Ericsson Very low 3 1 1 5 6 Low 2 10 10 12 11 Moderate 11 12 15 14 15 High 18 17 14 14 17 Very high 16 10 10 5 1 Total 50 50 50 50 50GRAPH – G10.2 40 35 30 25 Percentage of Very low 20 Respondents Low 15 Moderate 10 High 5 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brands_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 50 of 80
  • 51. OBSERVATION: It can be observed from the above given data that the consumersgenerally have a high and moderate ability to pay for the different mobile phonebrands. It shows that most of the brands are placed at an optimum price. Even quite anumber of respondents have mentioned that they have a very high ability to pay forthese brands. People saying that they have either a very low or low ability to pay arevery few.INFERENCE: It can be inferred from the facts given above that most of the mobilephone brands are priced properly and can be afforded by most of the people. Howevercontinuous efforts have to be made to reduce the costs of phones that technologicallyvery superior._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 51 of 80
  • 52. 10.3 Consumers’ attitude about the Brand name and Make of some of the topbrands of mobile phoneTABLE – T10.3 Sony LG Nokia Samsung Motorola Ericsson Very low 3 0 2 2 4 Low 1 11 12 7 11 Moderate 1 16 19 16 19 High 12 18 15 16 14 Very high 33 5 2 9 2 Total 50 50 50 50 50GRAPH – G10.3 70 60 50 Percentage of 40 Very low Respondents 30 Low Moderate 20 High 10 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brands_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 52 of 80
  • 53. OBSERVATION: It can be observed from the above data that most of therespondents felt that Nokia has a very good Brand name and make i.e. about 66% ofthem felt so. They felt that the other brands normally have a moderate Brand nameand make. Consumers always prefer a reliable product at optimum cost, majorityprefers products, which are widely advertised and are available at convenientlocations. Nokia cell phones meet all this criteria and hence, from the user’s angle it ishas a very superior Brand name in this competitive market.INFERENCE: One of the key factors that influence consumers to buy a product is itsBrand name and make. Nokia’s market share is quite high and undoubtedly Nokia isthe market leader in this category. Consumers, who decide to buy a cell phone for thefirst time, prefer to go in for Nokia phones because of the availability in a wide rangeof variety and price ranges. It can be inferred from the above data that consumers aremore inclined towards Nokia mobile phones than Samsung and Sony._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 53 of 80
  • 54. 10.4 Consumers’ attitude about the Quality of some of the major mobile phonebrandsTABLE – T10.4 Sony Nokia Samsung Motorola LG Ericsson Very low 2 2 2 1 6 Low 3 5 11 7 12 Moderate 5 18 24 10 18 High 17 16 10 20 12 Very high 23 9 3 12 2 Total 50 50 50 50 50GRAPH – G10.4 50 45 40 35 30 Percentage of Very low 25 Respondents Low 20 Moderate 15 High 10 Very high 5 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 54 of 80
  • 55. OBSERVATION: The research carried out has brought out the fact that almost 50%of the consumers feel that the Quality of Nokia phones are much more superior whencompared to Samsung, Sony Ericsson, LG, and Motorola. In the process of selecting ahandset, consumers give utmost importance for quality since it is one of thecharacteristics which influence product buying. Quality is defined a fitness for useand this aspect is incorporated in the handset made by most of the manufacturers. Thephones must be capable of being handled by all kinds of consumers irrespective ofwhether they are qualified or unqualified.INFERENCE: The above facts necessitates that all manufacturers need to give dueimportance by incorporating quality in design to make the handset more and morerobust. Continuous updation to match the present and future technological changesand innovations must be considered by manufacturers. New models shall invariablybe brought into the market but spares support must continue to be provided to theearlier models._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 55 of 80
  • 56. 10.5 Consumers’ attitude about the User - Friendliness of some of the majormobile phone brandsTABLE – T10.5 Sony Nokia Samsung Motorola Ericsson LG Very low 3 1 5 7 6 Low 1 9 15 7 10 Moderate 4 21 20 19 27 High 12 10 10 16 4 Very high 30 9 0 1 3 Total 50 50 50 50 50GRAPH – G10.5 60 50 40 Percentage of Very low 30 Respondents Low Moderate 20 High 10 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 56 of 80
  • 57. OBSERVATION: It can be observed from the above data that Nokia is more user-friendly when compared to the other brands. 60% of the respondents felt so. They feelthat the user-friendliness of the other brands is quite moderate and not exceptional.People prefer using phones that are user-friendly so that anybody can easily operate.INFERENCE: The above facts necessitates that all manufacturers need to give dueimportance by incorporating user-friendliness in the handset to make it more andmore robust. Before launching any new models, a pre-testing may be undertaken toascertain that the users are comfortable in handling and using the cell phones. Aone/two page voucher may also be supplied highlighting important facilities available.This reduces the monotony of the consumers to pick user manuals and understand theuser-friendly characteristics. Since the volume of consumption is increasinggradually, manufacturers must be able to hold on to the present prices that extendmore facilities._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 57 of 80
  • 58. 10.6 Consumers’ attitude about the Reliability of some of the major mobilephone brandsTABLE – T10.6 Sony Nokia Samsung Motorola Ericsson LG Very low 3 4 1 2 7 Low 1 3 13 7 13 Moderate 1 17 23 15 17 High 26 23 12 21 10 Very high 19 3 1 5 3 Total 50 50 50 50 50GRAPH – G10.6 60 50 40 Percentage of Very low 30 Respondents Low Moderate 20 High 10 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 58 of 80
  • 59. OBSERVATION: Among the various companies manufacturing mobile phone,Nokia has the best Marketing Mix strategy and it is designed to suit specific segmentsto catch up with the world market. Consumers always prefer a reliable product atoptimum cost, majority prefers products, which are widely advertised and areavailable at convenient locations. Nokia cell phones meet all this criteria and hence,from the user’s angle it is the highest sold commodity in this competitive market. It isbeen observed that majority of the respondents feel that Nokia is highly reliable i.e.52%. 38% feels that Nokia’s reliability is very high. Around 46% of the respondentsfeel that Samsung is also highly reliable. Regarding the reliability of Sony Ericsson,LG and Motorola, they feel that is either moderate or low.INFERENCE: The performance criteria in terms of reliability, durability andmaintainability appear to be the key factors in influencing consumers to buy theproduct. With continuous R&D efforts and cost-effective means of manufacturing thecell phones, Nokia’s market share is quite high and undoubtedly Nokia is the marketleader in this category. Consumers, who decide to buy a cell phone for the first time,prefer to go in for Nokia phones because of its high reliability and also its availabilityin a wide range of variety and price ranges. It can be inferred from the above data thatconsumers are more inclined towards Nokia mobile phones than Samsung and SonyEricsson._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 59 of 80
  • 60. 10.7 Consumers’ attitude about the Technological Superiority of some of themajor mobile phone brandsTABLE – T10.7 Sony Nokia Samsung Motorola Ericsson LG Very low 4 3 2 2 6 Low 1 4 8 4 9 Moderate 4 8 20 12 21 High 22 22 16 20 10 Very high 19 13 4 12 4 Total 50 50 50 50 50GRAPH – G10.7 45 40 35 30 Percentage of 25 Very low Respondents 20 Low Moderate 15 High 10 Very high 5 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 60 of 80
  • 61. OBSERVATION: The advent of technological changes and continuous efforts byR&D Engineers result in introduction of handsets with newer and latest features. Thepace at which new models are getting into is quite fast. A time period of 6 months to 1year appears to be reasonably the life cycle of a mobile phone for manymanufacturers. It can be observed from the data that about 44% of the respondentsfeel that both Nokia and Samsung have got a highly superior technology whencompared to others which the respondents felt has a moderately superior technology.38% feels that Nokia has got a very high superior technology. That is why it hasbecome the most preferred brand.INFERENCE: Continuous updation to match the present and future technologicalchanges and innovations must be considered by manufacturers. New models shallinvariably be brought into the market but spares support must continue to be providedto the earlier models. Enough awareness should also be created highlightingtechnological improvements and cost-advantage to initiate the buyers for changing thehandset._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 61 of 80
  • 62. 10.8 Consumers’ attitude about the Pride of some of the major mobile phonebrandsTABLE – T10.8 Sony Nokia Samsung Motorola Ericsson LG Very low 4 2 2 0 10 Low 0 5 19 5 14 Moderate 8 18 17 24 16 High 13 19 10 16 8 Very high 25 6 2 5 2 Total 50 50 50 50 50GRAPH – G10.8 50 45 40 35 30 Percentage of Very low 25 Respondents Low 20 Moderate 15 High 10 Very high 5 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 62 of 80
  • 63. OBSERVATION: After the introduction of mobile phones a decade ago,accessibility of individuals within the city or outside the city became easier. With themobility of persons in discharging their work, the need to contact consumers, officestaff, and households became an important issue. The need for cell phone became anecessity right from the top executive of the company to a vendor on the street. It canbe observed from the data above that almost 50% of the respondents feel that owninga Nokia handset is a matter of very high Pride. 38% feels that Samsung handset bringsabout a sense of Pride in you. Most of them have rated owning a Motorola or a SonyEricsson or an LG phone as a matter of Moderate pride. With this, the need for cellphones increased and today it is considered as an item of possession, even for studentsand professionals.INFERENCE: The latest version of the cell phones, which only weighs 75 to 80grams, appears to have further increased the passion for the usage of a cell phone bymany consumers. For top-level executives, it is certainly a status symbol. For manyothers it is a necessity and also a matter of pride._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 63 of 80
  • 64. 10.9 Consumers’ attitude about the Utility of some of the major mobile phonebrandsTABLE – T10.9 Sony Nokia Samsung Motorola Ericsson LG Very low 3 1 3 1 7 Low 1 8 9 7 15 Moderate 5 14 23 21 16 High 19 21 12 16 9 Very high 22 6 3 5 3 Total 50 50 50 50 50GRAPH – G10.9 50 45 40 35 30 Percentage of Very low 25 Respondents Low 20 Moderate 15 High 10 Very high 5 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 64 of 80
  • 65. OBSERVATION: It can be observed from the above data that 44% of therespondents have rated the Utility of Nokia phones as very high and about 38% haverated it high. 42% of them feel that Samsung handsets are highly useful and around46% feels that the utility of Motorola is moderate. Most of them have rated the utilityof other brands to be moderate. After the introduction of mobile phones a decade ago,accessibility of individuals within the city or outside the city became easier. Initially,the cost of cell phones was quite high and as the sales volume picked up; the rateswere brought down and were affordable by all income groups. With the mobility ofpersons in discharging their work, the need to contact consumers, office staff, andhouseholds became an important issue. The need for cell phone became a necessityright from the top executive of the company to a vendor on the street. The serviceproviders like Airtel, Spice, Hutch, etc also reduced the tariffs to attract moreconsumers. The incoming calls were made free about 5 years back. With this, theneed for cell phones increased and today it is considered as an item of possession,even for students and professionals.INFERENCE: Mobile phones facilitate making and receiving calls to any destinationat any time. The facility of call registers enables users to know the called numbers incase they are unable to receive their calls while the phone rings. With calleridentification facilities, a receiver has the option to either receive or reject a callaccording to his criteria. The latest version of the cell phones, which only weighs 75to 80 grams, appears to have further increased the passion for the usage of a cellphone by many consumers. The necessity factor is augmented because of theavailability of handsets on installments and low interest rates. For top-levelexecutives, it is certainly a status symbol. For many others it is a necessity and for afew it is a pride._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 65 of 80
  • 66. 10.10 Consumers’ attitude about the Brand Power of some of the major mobilephone brandsTABLE – T10.10 Sony Nokia Samsung Motorola Ericsson LG Very low 3 2 4 0 10 Low 1 7 15 9 12 Moderate 2 18 18 10 13 High 16 13 11 21 13 Very high 28 10 2 10 2 Total 50 50 50 50 50GRAPH – G10.10 60 50 40 Percentage of Very low 30 Respondents Low Moderate 20 High 10 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 66 of 80
  • 67. OBSERVATION: It can be observed that 56% of the respondents felt that Nokia hasgot a very high Brand Power when compared to its competitors. Most of them haverated the Brand power of other brands as either high or moderate. Among the variouscompanies manufacturing mobile phone, Nokia has the best Marketing Mix strategyand it is designed to suit specific segments to catch up with the world market. Themedia advertisement publicity as well as sales promotion has created the brand image.Consumers always prefer a reliable product at optimum cost, majority prefersproducts, which are widely advertised and are available at convenient locations.Nokia cell phones meet all this criteria and hence, from the user’s angle it is thehighest sold commodity in this competitive market.INFERENCE: The performance criteria in terms of reliability, durability andmaintainability appear to be the key factors in influencing consumers to buy theproduct. With continuous R&D efforts and cost-effective means of manufacturing thecell phones, Nokia’s market share is quite high and undoubtedly Nokia is the marketleader in this category. Consumers, who decide to buy a cell phone for the first time,prefer to go in for Nokia phones because of its quality, user-friendliness and reliabilityand also its availability in a wide range of variety and price ranges. It can be inferredfrom the above data that consumers are more inclined towards Nokia mobile phonesthan Samsung and Sony. The marketing efforts by Nokia manufacturing company are extremely good.They make use of all forms of marketing such as Direct Marketing, Marketingthrough franchise distributors, dealers and retailers. The Hoardings andAdvertisements on print and electronic media are very impressive and rewind thememory space of consumers for a very long time. It has become the most preferredbrand because of technical superiority, marketing capabilities, price control and alsoeffective after sales service._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 67 of 80
  • 68. 10.11. Consumers’ attitude about the Spread Effect of some of the major mobilephone brandsTABLE – T10.11 Sony Nokia Samsung Motorola Ericsson LG Very low 5 5 7 2 7 Low 1 7 15 8 16 Moderate 6 23 16 22 16 High 11 8 8 15 10 Very high 27 7 4 3 1 Total 50 50 50 50 50GRAPH – G10.11 60 50 40 Percentage of Very low 30 Respondents Low Moderate 20 High 10 Very high 0 Nokia Samsung Motorola Sony LG Ericsson Brand_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 68 of 80
  • 69. OBSERVATION: It can be observed from the data that 54% of the respondents feelNokia has got a very high spread effect when compared to others which they felt havegot a moderate spread effect. This shows the strong brand affinity of Nokia andcontinuous use of Nokia as the preferred choice. The source of awareness of thebrands selected by the users is through Word of Mouth advertising. Friends andfamily members play a dominant role in influencing buyers. Advertisement in printand electronic media creates awareness on the availability of brands. The out dooradvertisement through Hoardings provides additional information and helps theconsumers to select their brands. Satisfactory performance of the handsets initiates thebuyers to influence others to buy the same brands owned by them. This creates achain effect in a few people telling many and many telling many more.INFERENCE: Nokia as a market leader, enjoys the highest brand popularity, brandloyalty and brand image. The ergonomic features and aesthetic characteristics haveenabled this brand to enjoy the highest market share. The other brands like Samsungand LG may adopt a total shift in their marketing approach to compete with thepresent market. Brand popularity is a direct measure of the attitudes, beliefs and perception ofusers. Satisfactory performance of the handsets initiates the buyers to influence othersto buy the same brands owned by them. This creates a chain effect in a few peopletelling many and many telling many more. It also depends on how the dealers andretailers help the buyers in the process of selection and decision making.Manufacturers should give equal importance not only for media advertising but alsofor sales promotion and personal selling. Sufficient resources should be providedtowards advertising budget to make the brands popular and stand out in the market._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 69 of 80
  • 70. FINDINGS OF THE STUDY_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 70 of 80
  • 71. MAJOR FINDINGS 1. Consumers, who decide to buy a cell phone for the first time, prefer to go in for Nokia phones because of the availability in a wide range of variety and price ranges. It can be found from the study that consumers are more inclined towards Nokia mobile phones than Samsung and Sony. This shows the strong brand affinity and continues use of Nokia as the preferred choice. 2. Consumers consider mobile phones as something very necessary and indispensable in their lives. They use it as the most important means of communication. Some people find cell phones as a status symbol and something they can be proud of. 3. A time period of 6 months to 1 year appears to be reasonably the life cycle of a mobile phone for many manufacturers. Although many consumers prefer to change the handset to satisfy their urge to go in for new models, many postpone the decisions since the exchange value is quite low. A usage period of 1 to 2 years appears to be normal before a consumer decides to go in for a new handset. 4. The marketing efforts by Nokia manufacturing company are extremely good. They make use of all forms of marketing such as Direct Marketing, Marketing through franchise distributors, dealers and retailers. The Hoardings and Advertisements on print and electronic media are very impressive and rewind the memory space of consumers for a very long time. It has become the most preferred brand because of technical superiority, marketing capabilities, price control and also effective after sales service. 5. Consumers in the process of selecting a handset give importance for quality since it is one of the characteristics which influence product buying. Quality is defined a fitness for use and this aspect is incorporated in the handset made by most of the manufacturers. 6. With the advent in technology, the consumers’ also demands keep increasing. Consumers prefer having the latest features in their phones like Color display, Radio, Camera, Infra-red, Blue-tooth, GPRS etc. These are the features that_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 71 of 80
  • 72. the consumers are basically looking forward to in future when they buy a mobile phone. 7. Majority of the cell phone users are using Nokia small percentages who use the other brands have generally expressed that they are satisfied with their handsets. This indicates that they are getting the value for the money spent. 8. The source of awareness of the brands selected by the users is through Word of Mouth advertising. Friends and family members play a dominant role in influencing buyers. Advertisement in print and electronic media creates awareness on the availability of brands. The out door advertisement through Hoardings provides additional information and helps the consumers to select their brands. Satisfactory performance of the handsets initiates the buyers to influence others to buy the same brands owned by them. 9. Consumers find the price of brands like Nokia and Samsung a bit high when compared to others but taking into consideration the quality and performance of these handsets, most of them are able to pay for them. 10. Consumers always prefer a reliable product at optimum cost, majority prefers products, which are widely advertised and are available at convenient locations. Nokia cell phones meet all this criteria and hence, from the user’s angle it is has a very superior Brand name in this competitive market. 11. The performance criteria in terms of quality, user-friendliness, reliability, durability and maintainability appear to be the key factors in influencing consumers to buy the product. Nokia’s market share is quite high and undoubtedly Nokia is the market leader in this category. Consumers, who decide to buy a cell phone for the first time, prefer to go in for Nokia phones because of its high reliability and also its availability in a wide range of variety and price ranges. 12. The source of awareness of the brands selected by the users is through Word of Mouth advertising. Friends and family members play a dominant role in influencing buyers. Advertisement in print and electronic media creates awareness on the availability of brands. The out door advertisement through Hoardings provides additional information and helps the consumers to select their brands. Nokia has got a very good Brand power. Its ability to convert_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 72 of 80
  • 73. itself into a brand is quite impressive and that’s why consumers have got a strong preference towards Nokia phones when compared to its competitors._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 73 of 80
  • 74. SUGGESTIONS AND RECOMMENDATIONS_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 74 of 80
  • 75. SUGGESTIONS AND RECOMMENDATIONS 1. Companies manufacturing cell phones should openly advertise “Buy back schemes” which creates interest in the consumers to go in for a change. Enough awareness should also be created highlighting technological improvements and cost-advantage to initiate the buyers for changing the handset. 2. All manufactures need to give due importance by incorporating quality in design to make the handset more and more robust. Before launching any new models, a pre-testing may be undertaken to ascertain that the users are comfortable in handling and using the cell phones. A one/two page voucher may also be supplied highlighting important facilities available. 3. Continuous updation to match the present and future technological changes and innovations must be considered by manufacturers. New models shall invariably be brought into the market but spares support must continue to be provided to the earlier models. 4. Nowadays, almost all the companies are coming up with phones with latest features. But the ones in this segment are priced very high. As a result, it cannot be afforded by the common man. Companies should make efforts to bring down the cost of such mobiles to increase its sales. 5. Manufacturers should give equal importance not only for media advertising but also for sales promotion and personal selling. Sufficient resources should be provided towards advertising budget to make the brands popular and stand out in the market._____________________________________________________________________M P Birla Institute of Management, Bangalore Page 75 of 80
  • 76. ANNEXURE_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 76 of 80
  • 77. Select BibliographyBooks: o Marketing Management by Philip H Kotler o Principle of marketing by Philip H Kotler o Consumer Behavior by Schiffman o Advertising Management by Rajiv BatraMagazines: o American Marketing Association Journal o Indian Journal of Marketing Published by ICFAIWebsite: o www.marketingterms.com o www.google.com o www.bsnl.in o www.techtree.com o www.marketpower.com o www.marketingstrategy.com_____________________________________________________________________M P Birla Institute of Management, Bangalore Page 77 of 80
  • 78. MOBILE PHONE RESEARCH Name: Occupation: Age group: Below 22 22-30 30-40 40-50 50 & above 1. Do you possess a mobile phone? Yes No 2. Which brand are you using? __________________ 3. What is the first thing that comes to your mind when you hear the word ‘MOBILE PHONE’? Calls Messages Necessity Status good If others, please specify ______________________ 4. How often do you change your handset? < 6 months 6 months 1 yr > 2 yrs 5. Name the top 3 brands in your order of preference? ________________ , ________________ , ________________ 6. Rate the following parameters while choosing a mobile phone? (Rate on scale 1 to 5; 1 = Low, 5 = High) Parameter Rating Rate your Mobile (in use)PriceBrand Name and MakeQualityUser- friendlinessReliabilityTechnological Superiority _____________________________________________________________________ M P Birla Institute of Management, Bangalore Page 78 of 80
  • 79. 7. If you are planning to buy another Mobile phone, what features would you go for? Color display Radio Camera Infra-red and Blue – tooth GPRS compatible Others If others, please specify ______________________8. Are you satisfied with your Handset? Yes No If NO, why?__________________________________________________________________________________________________________________________________________9. Which other Handset would you like to go for?_______________________________________ Why?__________________________________________________________________________________________________________________________________________10. How did you come to know about your Handset? Friends Relatives Ads Others If others, please specify ___________________________________________________________________________________________M P Birla Institute of Management, Bangalore Page 79 of 80
  • 80. 11. Rate the various Brands list below on the following parameters? (Rate on scale 1 to 5; 1 = Low, 5 = High) BrandAttributes Nokia Samsung Motorola Sony LGPriceAbility to payBrand Name andMakeQualityUser-friendlinessReliabilityTechnologicalSuperiorityPrideUtilityBrand PowerSpread Effect Thank you Have a Nice Day _____________________________________________________________________ M P Birla Institute of Management, Bangalore Page 80 of 80

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