Reserch report on Mobile Phones

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A Project Report on
“Customers Preferences on smart Phones”
Submitted By:
Anand Kumar Jha
Submitted to:
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE
OF
Master of Business Administration (MBA)
7th January, 2014

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Letter of Transmittal
Jan 7, 2013
Dear Reader,
Enclosed is the report we commissioned on 02 Dec 2013 on the Mobile Phones. The main Purpose of this
study is:
 To know the Inventory Management system of that particular Organization
 To know about the factor that affect the inventory system of organization
 To understand about the pmt system to suppliers.
 To know about the wastage management done by Organization.
 Factors affecting the Inventory Management.
 Effect of Inventory Management in Price of product.
We would like to acknowledge the assistance of our University “Chitkara Business School, Rajpura” and
particularly our Assistant Professor, Dr. Renuka Sharma, in write this report.
Regards,
Anand Kr. Jha
Sachin
Gurbhej Singh
Gurdeep
Sandeep

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Letter of Authorization
To whom it may concern
This is to certify that the students of MBA 1st Year Has successfully completed the live project
assigned to them as a part of their internal assessment.
The topic assigned to the students was: “Inventory Management System-A study of Vishali
Cycle Pvt. Ltd.”. The work is being submitted to the concerned department, Chitkara Univers ity
for the award of degree. The student has submitted the project in time.
Supervisor
____________________

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EXECUTIVE SUMMARY
1. Back ground of the study
Main purpose of this live project is to understand the inventory management done by
Manufacturing organization and how it affect the other aspect. The term inventory refers to the
goods or materials used by a firm for the purpose of production and sale. It also includes the items,
which are used as supportive materials to facilitate production. The objective of inventor y
management is to provide uninterrupted production, sales, and/or customer-service levels at the
minimum cost. Since for many companies inventory is the largest item in the current assets
category, inventory problems can and do contribute to losses or even business failures also called
inventory control. See also inventory analysis.
2. Objective of the study
 To know the Inventory Management system of that particular Organization
 To know about the factor that affect the inventory system of organization
 To understand about the pmt system to suppliers.
 To know about the wastage management done by Organization.
 Factors affecting the Inventory Management.
 Effect of Inventory Management in Price of product.
3. Company Profile:
Vishal Cycles (Pvt.) Ltd. is situated in the Manchester of India, i.e. Ludhiana in Punjab. The factory
sprawls over more than 5 lac square yard of land. It is a state of art plant which manufactures over
70% of bicycle components under one roof. The Company has an asset of more than 800 people,
who put in their all out to produce world class bicycles and bicycle parts.
4. Types of Inventory in Vishali Cycles Pvt. Ltd.
There are mainly five types of inventory in the company which are as follows:
 Raw Material
 Work in Progress
 Consumables
 Finished Goods
 Spares
 Other type of Inventory

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5. Average Inventory maintained by the Company.
The company has total capacity to produce 1500 cycles/day but currently they produce 1000
cycles/day. Company has its own strategy to keep the, in case of finished and Semi finished goods
normally they keep 30% of total finished goods in stock (spares & finished goods). In case of Raw
materials Company keep stock for 15 days. Since iron is the major raw materials which is used
and there is maximum chances to get rust in iron so they don’t keep it for longer time. In case of
Tyres, tubes, paints etc. they order in mass so that they got better price. Reorder of raw materials
depends upon demand of finished & semi finished goods.
6. Methods of Inventory Control Used by Vishali Cycle.
Normally company doesn’t follow any method completely but somehow they focus on following
Method:
• JIT
• Aging Schedule of Inventories
• ABC
• HML
• FIFO Method
7. Suggestion to the Organization
a) The organization should have to provide proper knowledge and training for unskilled
employees about their work.
b) In store department items should placed in their proper sequence and acknowledgement
c) There should be proper record of wastage. It is good for the company
d) Store manager give the proper knowledge about engineering and raw materials.
8. Conclusion
The goal of the wealth maximization is affected by the efficiency with which inventory is
managed. Inventory constitutes about 60% of current assets of companies. As the
manufacturing concern hold the inventory in the form of raw materials, work in progress and
finished good. Inventory facilitates smooth production and sales operation (transaction
motive), to guard against the risk of unpredictable changes in the usage rate and delivery time
(precautionary motive) and to take advantage of price fluctuation inventories represent

investment of a firm’s fund. The objective of the inventory management should be the
maximization of the value of the firm therefore, the firm should consider
a) Cost
b) Return
c) Risk factor
In inventory maintenance two types of costs are involved i.e. carrying cost as well as ordering
cost. The firm should minimize the total cost (carrying cost + ordering cost). The firm follows
inventory control techniques as JIT (Just in Time), ABC, EOQ and HML techniques for better
holding Inventories.
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ACKNOWLEDGEMENT
Management, the back bone of the economy is pertained to the act of running and controlling a
business or similar organization. Being a student of management, knowing the practical field of
our education besides the theoretical aspect is very necessary and this research project has been
one such opportunity for me to learn and analyze things in a practical front.
We were overjoyed when we came to know that all the theoretical experience learned in class was
going to be utilized in this fieldwork, which is required to be done by the students of MBA (2nd)
trimester studying under C.U. on the professional management course.
All our effort in this report concerns to study on “Inventory Management System-A study of
Vishali Cycle Pvt. Ltd.” We are deeply indebted to all those who have been a source of help,
guidance and inspiration to us while preparing this report. I would like to express my sincere thanks
to Dr. Renuka Sharma, Report teacher of Chitkara University for her kind support and
guidelines during the preparation of report.
We are sincerely acknowledging the help of our friends who directly and indirectly supported and
encouraged us to complete this report work. Finally, we would like to express our sincere thanks
to all those who directly and indirectly helped us to complete my report.

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Table of Contents
Title page
Letter of Transmittal ii
Letter of Authorization iii
Executive Summary iv
Acknowledgement vii
Table Of content ix
List of Chart viii
CHAPTER 1. INTRODUCTION Pages
1.1 Background of the study 1
1.2 Objective of the study 1
1.3 History of Bicycle 1
1.4 Introduction to the Company 2
1.4.1 Company Profile 2
1.4.2 Aim/Mission/Vision 2
1.4.3 Company’s Product 3
1.4.3.1 Bicycles 3
1.4.3.2 Spare parts 3
1.4.4 Raw Materials 4
1.4.5 Quality 4
1.4.6 Segment of Business 5
1.4.6.1 Customers 5
1.4.6.2 Industrial Products 5
1.4.7 Competitors 5
1.4.8 Relationship Building 5
1.4.9 Executive of the Company 6
CHAPTER 2. Distribution Channels of Vishali Cycles 7
CHAPTER 3. Inventory Management 9
3.1 Meaning 9
3.2 Types of Raw materials 9
3.3 Importance 10
3.4 Methods of Inventory Management 10

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CHAPTER 4. Types of Inventory in Vishali Cycles 13
CHAPTER 5. Analysis of Inventory Management
5.1 Types of Inventory used by Vishali Cycles 16
5.2 Average inventory maintained by the company 16
5.3 Decision about the optimum level of Inventory 17
5.4 Life of Raw materials used by the company 18
5.5 Factor affecting the Inventory Level 18
5.6 Inventory stored and cost related to it 19
5.7 Management of Cost involved in wastage 19
5.8 Methods of Inventory Control 19
5.9 Inventory management by Company during crisis 21
5.10 Charts on the basis 22
5.10.1.1 Working Capital Management 22
5.10.1.2 Inventory turnover ratio 23
5.10.1.3 Inventory conversion period 23
5.10.1.4 Investment on inventory and sales 24
5.10.1.5 Determination of stock level 25
5.11 Position of suppliers of raw materials 26
5.12 Effect of inventory on customers satisfaction 27
5.13 Challenges involved in Inventory management 29
CHAPTER 6. Conclusion and Recommendation
6.1 Problem in the Company 30
6.2 Suggestion to the Organization 31
6.3 Conclusion 31
BIBLIOGRAPHY

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List of figure
Chart No. Details Page No:
1 Working Capital Management 22
2 Inventory turnover ratio 23
3 Inventory conversion period 23
4 Investment on inventory and sales 24
5 Determination of stock level 25
6 Company & Suppliers 27
7 Negotiation 27
List of Table
Chart No. Details Page No:
1 Working Capital Management 22
2 Inventory turnover ratio 23
3 Inventory conversion period 23
4 Investment on inventory and sales 24
5 Determination of stock level 25

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1. INTRODUCTION
1.1Background of the Study:
The Mobile phone market is increasing very fast with today’s ever-emerging technology and
innovation in improving Mobile phones. Today, society is living with advance technology and
everyone wants to keep pace with the new technologies. Mobile phone industry is growing larger
because it has become a necessity. Parents are getting mobile phones for their teens because they
want to communicate in case of an emergency and the wireless carriers have made it easy to add
users to their existing plans. And carriers are becoming successful in getting parents to expand
their plans to include their teens. This increases buyers and increases market size worldwide. So,
this research is conduct for a new company in Punjab to know the consumer preferences about the
Mobile phones in present scenario.
2. Research focus
The main focus of this research is to know about the dominant factors of Mobile phones
with the help of which the mobile phones company get success to attract the customers. There
are number of dominant economic indicator which has to be considered.
3. Dominant Economic Indicators
1.3.1 Market Size:
The Mobile phone industry is one of the fastest growths besides the Internet. Mobile phones have gone
through a huge change and its market has expanded globally. The Mobile phone industry has become
increasingly larger within the last three years as a result of more affordable cellular phones as well as lower
service costs. Companies are competing in an advance technology and communication sector in which
success attracts customers to buy their products and services. The market is very competitive because they
offer the same products and services, but has different physical attributes to the phones and different costs,
which buyers have choices to choose from. Companies want to provide the best products and services to
attract buyers by lowering cost and improving products, which makes the Mobile phone industry very
competitive. The main point is that eventhough the competition increase among the companies but the
market of Mobile phones is increasing day by day
1.3.2 Scope of Competitive Rivalry:
Here are the main factors of competitive rivalry:
 Mobile phone cost: Customers wants better services and products at a lower cost.
 Bundle functions into just one Mobile phone: For example E-mail, text messaging, internet
 New technology improvement: For example camera phones, wi-fi, android, windows operating
system etc

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1.3.3 Stage in Life Cycle:
The Mobile phone industry is in the Mature Life Cycle Stage, where nearly all-potential customers are
already users of the industry’s product. The Mobile phone industry’s growth and profitability depends
entirely on its ability to attract new customers. By increasing and improving the Mobile phones and
services, it will attract more potential buyers, because technology alone will not attract buyers, instead
companies want value-added services for mobile-phone securities.
Mobile Phone companies attract buyers in two ways during the Mature Life Cycle State:
 Service: Making Mobile phone more affordable will attract buyers to buy more Mobile phones and
increase competition between companies to lower service fee.
 Innovative Phone Style: The new designs and improvement in the physical appearance of the
Mobile phones, and more add-on features attracts customers to buy it at a higher rate.
4. Numbers of Companies in the Industry:
There are over 50 companies with only six top companies in the Mobile phone industry in india that
controls 80 percent of the market. Even though there are emerging new companies into the market, they
are relatively small. The six top companies are rank as follow as the largest to the smallest Mobile phone
company:
1. I-Phone (Apple)
2. Samsung
3. Nokia
4. Micromax
5. Karbonn
6. Sony Xperia
5. Customers:
With the list of features and data applications available on mobile phones, the customers are continuing
to grow and emerge. Mobile phones are not only a luxury but also necessity. Mobile phone users use
Mobile phones for more than just talking; the mobile services consumer wireless usage study found that 56
percent of customers used their Mobile phones as cameras, clocks, calendars, music players, internet and
other non-talk functions. Also, most Mobile phone owners are between the ages of 18 to 34. However,
consumers’ dependency on Mobile phones can pose a threat that force users to be vic tims of paying too
much for Mobileular phone services.

There are numerous complaints about low quality service in the industry due to the competition between
companies. By lowering costs for the services, the company will lose profits and reduce their shares.
Customers today, typically complain about the high cost for the services of having to stay on a contract for
a long time and paying an early canMobileation fee. Also, with low service line, customers rather pay
higher price for better services.
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6. Technology/Innovation:
Technology and innovation are advanced every year making the industry even more competitive.
Mobile phone companies that design and make evolutionary upgrades are emerging into the market to be
more competitive. Today, with more technology enhancement, the products in different companies are
essentially similar. Since this is a Mobile phone industry, there is a maximum amount of products and
services that consumers can choose from. Yet, consumers do not want to purchase Mobile phones at a
higher price value unless the companies are able to make it attractive.
1.6.1 Camera Mobile phones:
The key factor consumers consider when choosing a device is their context. Phones with the ability to
take images, both still and video have captured about 40% of the wireless phone market. But despite the
product’s popularity, customer users want higher resolution, the ability to use storage media, and many
other state of the art features found in modern digital camera. With consumers’ desire for high resolution
digital camera, the market for camera and camcorder phones will peak in 2007.
1.6.2 Downloadable Application:
Mobile phones are programmed allowing users to download applications onto their Mobile phones.
Such common downloads are of games such as JAMDAT Bowling. Most applications are large, between
40 KB to 550KB, and with applications ever growing-in-size and very-more-appealing, better multimedia
and larger memory in the phones, and better network capabilities for economic high-speed data access.
1.6.3 Video (Streaming):
Video Streaming is when videos are sent over a wireless network to a Mobile phone. The Video
streaming with 3G helps in ways that is usable and cost effective by the consumer, and economical viable
for the wireless operator.

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1.6.4 Internet Access via PC Card:
Wireless PC Cards in smaller form will be produced for handhelds. IT wants access through the internet
at the fastest data rates possible, and at the lowest costs. Operator wireless also wants to keep consumers
happy with internet access which will maximize revenues and reduce their costs.
1.6.5 Phone Design
Cell phones will become much more powerful, and designs will continue to morph into ever more
complex, multi-purpose personal communication devices, including the growing use of the cell phone as a
financial transaction device (see Mobile Commerce below). Batteries for wireless devices will begin to last
much longer as well.
7. Capital Requirements:
The Mobile phone companies require large capital to enter and remain in the market successfully.
Companies require capital to create products that attracts consumers and for total assets and revenues to
enlist other products and services that are featured with Mobile phones. Mobile phone companies work
with manufacturers to create new technological and innovative Mobile phones in the market today to attract
consumers. A valuable capital in the Mobile phone industry is the consumers because revenue and profits
depends on them who buy the companies’ Mobile phones.
New products are introduced continually, technology evolves on a daily basis, and customers are eager
to become part of the future of a wireless society. This makes the market very competitive and large
companies that have big economies of scale provide a highly automated service to a large number of
customers, and have the financial resources required in building and maintaining a large network of
communications devices. Smaller companies can also compete, but only in small markets or by provide
specialty services.
8. Industry Profitability:
The profitability of individual companies is driven mainly by their ability to develop new products,
providing better service, making their products affordable for consumers. Profitability of companies is
achieved also by taking advantage of marketing their products, have access to capital, and by inquiring the
expertise to improve the Mobile phones.
The profitability of the Mobile phone industry is dependent on the volume of consumer they can attract.
The profitability of companies has increased drastically since 2002 and will continue to increase as new

Mobile phones are improved. Since 2004, the financial markets of Mobile phone companies seem to
increase fast because of the new technologies and services that companies are offering consumers, and at
the same time they compete for customers. Although there are complaints and dissatisfaction from
consumers, Mobile phone and the service along with it has become a necessity which companies use as an
advantage by charging consumers higher price.
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9. Six Forces of Competition
When compared to the general environment, the industry environment often has a direct effect on the
firm’s strategic actions. Our textbook discusses Porter’s five forces of competition in most industries.
However, in analyzing the Mobile Phone Industry, not only do we cover the five forces model which
includes the threat of new entry, the power of suppliers, the power of buyers, product/service substitutes,
and the intensity of rivalry among competitors, we are adding the sixth force of another stakeholder group
– the Unions.
1.9.1 Threat of New Entrants
Since start-up costs for Mobile phone industries are extremely high, the threat of new entrants is low.
A great sum of money must be invested to attain the economies of scale, and it is difficult to enter the
market with existing firms already operating on cost and differentiation strategies.
1.9.2 Bargaining Power of Suppliers
It is also one of the reasons to increase the competition of Mobile phones Companies. Suppliers of the
different input materials increase the price of the input materials in low masses due to which companies
have to order huge mass to lower the cost of final product.
1.9.3 Bargaining Power of Buyers
It is one of the most important threats for the companies, since due to the maximum number of brands
in market the bargaining power of customers also increases by comparing the features of different brands
with other brands which directly affect the profitability of companies.
1.9.4 Threat of Substitute Products/Services
It’s the main threat for the all mobile Companies since there are so many different mobile brands
available in the market and each product have same advanced technology with advanced features which
makes easy for the customers to switch off to new brands .

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5. Intensity of Rivalry among Competitors
Almost all companies are implementing the advanced technology to their product and they make
different strategy to get the market share so rivalry companies is major threat for all other companies.
6. Unions
The idea that labor unions and their attendant collective bargaining privileges are necessary to
workers’ welfare is all but assumed in many corners in the world labor movement. Several
companies, however, are reviving a model whereby an employer proactively provides its workers
a good deal of economic security and benefits even without a union presence. Still labor makes
Union to pressurize the company for their personal benefit. So, somehow Union is also another
important competitive factor for mobile companies.

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2. Literature Review
Veronica V. Galván mail, Rosa S. Vessal, and Matthew T. Golley combinely conducted a
Study on The Effects of Cell Phone Conversations on the Attention and Memory of Bystanders on
march 13, 2013. According to them The pervasive use of cell phones impacts many people–both
cell phone users and bystanders exposed to conversations. This study examined the effects of
overhearing a one-sided (cell phone) conversation versus a two-sided conversation on attention
and memory. In our realistic design, participants were led to believe they were participating in a
study examining the relationship between anagrams and reading comprehension. While the
participant was completing an anagram task, the researcher left the room and participants
overheard a scripted conversation, either two confederates talking with each other or one
confederate talking on a cell phone. Upon the researcher’s return, the participant took a recognit io n
memory task with words from the conversation, and completed a questionnaire measuring the
distracting nature of the conversation. Participants who overheard the one-sided conversation rated
the conversation as significantly higher in distractibility than those who overheard the two-sided
conversation. Also, participants in the one-sided condition scored higher on the recognition task.
In particular they were more confident and accurate in their responses to words from the
conversation than participants in the two-sided condition. However, participants’ scores on the
anagram task were not significantly different between conditions. As in real world situations,
individual participants could pay varying amounts of attention to the conversation since they were
not explicitly instructed to ignore it. Even though the conversation was irrelevant to the anagram
task and contained less words and noise, one-sided conversations still impacted participants’ self-reported
distractibility and memory, thus showing people are more attentive to cell phone
conversations than two-sided conversations. Cell phone conversations may be a common source
of distraction causing negative consequences in workplace environments and other public places.
Timothy Meyer, Thomas Donohue and Rebecca Ortiz combine conducted a research on
Technology, Knowledge and society on 30 April, 2009. Their findings showed key differences

between males and females. Females were far more likely to use and prefer interpersonal
communication features (e.g., synchronous phone calls, voice mail messaging, text messages,
instant messaging, and photo exchanges) while males used interpersonal options far less
frequently. Males were more likely than females to prefer non-human interactive features like
downloading music or streaming videos. They also found that value perceptions dominated
purchase decision-making for both males and females. What does a given feature cost given how
much they will use it in the context of other choices? Decisions on which cell phone or features to
purchase and re-purchase are the result of a complex array of such factors revolving around value.
A third finding is type of use. Value was tied to cost effectiveness when gaining access to features
that were most in demand for frequency and duration of use. They also discuss implications beyond
the marketing perspective to include the social implications of an increasing reliance on non-face-to-
face communication channels and how such reliance may be leading to the erosion of human
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relationship building, maintenance, and change.
Peter W. Turnbull, Sheena Leek & Grace Ying combinely did a research on Customer
Confusion: The Mobile Phone Market on 01 Feb 2010. According to them The consumer
confusion phenomenon is associated with highly turbulent industries, which are characterised by
rapid, technological change and evolving competition. These factors impede consumers'
understanding of such markets and consequently effect their decision making process. This
research focuses on the effect of confusion on information search behaviour which is part of the
decision making process in the mobile phone market. Understanding search behaviour is of great
importance to marketers, especially in designing marketing strategy and tactics. The findings
reveal that although consumer confusion exists in the mobile phone market, it does not have a
detrimental effect on the market. In addition, the findings also suggest that suppliers should
buildup a strong brand image and be aware of the importance of word of mouth sources since both
of these are considered to be very significant reference points for consumers. Finally, further
reductions in call charges, the maintenance of good quality service and customer care are essential
for customer retention.

Sheetal Singla did a research on Mobile Phone Usage Patterns among Indian consumer on 2010.
In her research she founds that In recent years, the adoption of mobile phones has been rapid so
fast not only in India but also in the whole world. Owning a mobile phone was considered a luxury
in India till the late 1990’s. However with the reduction in service charges & the cost of handsets
the number of mobile users in India soon increased. Mobile phones have become a need than a
fashion accessory. The aim of the study is to investigate & understand the behavior of consumers
of mobile phones in Ludhiana district & the Sangrur District. And further capture their satisfact ion
level that is influenced by various technical & non technical factors. The study indicates that while
price & features are the most influential factors affecting the purchase of a new mobile phone, its
price, audibility, network accessibility, are also regarded as the most important in the choice of the
mobile phones. The prime objective of the study is to understand the difference in the importance
given by different gender groups to the selected factors while buying mobile handsets. The study
concludes 57% of male has given importance to Quality of mobiles followed by price, features,
Brand & style of mobiles.
Lalit Mohan Kathuria did an empirical research among Rular consumer on Factors Influencing the
Selection of a Mobile Phone Service Provider on 2011. In his research he found that Rural
consumers form a formidable block of over one-fifth of the total mobile phone user-base in India.
In comparison to a tele-density of more than thirty per cent in urban areas, it is less than ten per
cent in the rural areas, thereby indicating a huge scope for future growth. The study was conducted
with an objective to identify the factors influencing the selection of mobile phone service provider
among rural users. The study brought out clearly that the major factors influencing the choice of
service provider were network coverage, price, value-for-money and billing integr it y,
recommendations from family and friends, customer service and company image. Network
problem was observed to be the most important reason for switching over to other mobile phone
service provider.
Hande Kimiloglu, V. Aslihan Nasir and Süphan Nasir conducted a research on “Discover ing
behavioral segments in the mobile phone market” on 2010. The purpose of the study is to discover
consumer segments with different behavioral profiles in the mobile phone market. For this
purpose, it seeks to analyze the decision-making criteria of 302 mobile phone consumers in Turkey
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and cluster the sample meaningfully into four behaviorally different groups. They found that
Pragmatic consumers are found to give high importance to the functional, physical and
convenience-based attributes of the product. The abstemious group also gives importance to
functionality along with design. While value-conscious consumers focus strongly on price, the
charismatic segment represents the want-it-all group valuing many attributes such as technologica l
superiority, practicality, durability, functionality, and design. The study also includes findings and
discussions about the differences these clusters display in terms of their involvement and loyalty
styles.
Luca Petruzzellis did a research on "Mobile phone choice: technology versus marketing. The brand
effect in the Italian market" on 2010. The main question of his study is to determine whether
technology nowadays is overcome by customer preferences and needs. In particular, the role of
the brand is to be analysed with respect to its influence in shifting customer preferences from the
technical performances (tangible elements) to the emotional/symbolic ones (intangible elements).
in his research Consumer behavior was analyzed by interviewing a random (but well stratified)
sample of mobile phone users in order to study their consumption style and the motivat ions
underlying the buying process in order to understand, on the one hand, the variables that influence
people in the usage of mobile phones and, on the other, those that influence firms in launching
new products, both from a technological point of view and from a marketing one. In his research
The findings show various dimensions that are relevant in consumer minds when considering
decisions regarding technological products. Brand attitudes do relate positively to consumer
intention to use (purchase) specific mobile phones over others.
Reuben Abraham did a study on 2006 on Mobile Phones and Economic Development: Evidence
From the Fishing Industry in India. According to him there is considerable speculation about the
correlation between investments in telecommunications and economic development. Yet, there has
been very little research on whether there is a connection between information and communica t ion
technologies (ICTs) and economic growth, and if indeed a connection can be established, how it
works. Vast populations in developing countries live in rural areas and are subject to the vagar ies
of their highly inefficient markets. Mobile phones, by virtue of their role as carriers and conduits
of information, ought to lessen the information asymmetries in markets, thereby making rural and
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undeveloped markets more efficient. This article tests this assumption using a case-study from
India, where the fishing community in the southwestern state of Kerala has adopted mobile phones
in large numbers. Using mobile phones at sea, fishermen are able to respond quickly to market
demand and prevent unnecessary wastage of catch—fish being a highly perishable commodity—
a common occurrence before the adoption of phones. At the marketing end, mobile phones help
coordinate supply and demand, and merchants and transporters are able to take advantage of the
free flow of price information by catering to demand in undersupplied markets. There is also far
less wastage of time and resources in all segments of the fishing community. Fishermen spend less
time idling on shore and at sea, whereas owners and agents go to the landing centers only when
they receive information (via mobile phones) that their boats are about to dock. We find that with
the widespread use of mobile phones, markets become more efficient as risk and uncertainty are
reduced. There is greater market integration; there are gains in productivity and in the Marshallia n
surplus (sum of consumer and producer surplus); and price dispersion and price fluctuations are
reduced. The potential efficiencies are, however, subject to easy access to capital, especially at the
production end of the supply chain, without which the market remains less efficient than it could
be. Finally, the quality of life of the fishermen improves as they feel less isolated and less at risk
in emergencies.
John Weber did a research on "Mobile phones and it’s Technology " on 2004. The main question
of his study is to determine whether technology nowadays is overcome by customer preferences
and needs. In particular, the role of the brand is to be analysed with respect to its influence in
shifting customer preferences from the technical performances (tangible elements) to the
emotional/symbolic ones (intangible elements). in his research Consumer behavior was analyzed
by interviewing a random (but well stratified) sample of mobile phone users in order to study their
consumption style and the motivations underlying the buying process in order to understand, on
the one hand, the variables that influence people in the usage of mobile phones and, on the other,
those that influence firms in launching new products, both from a technological point of view and
from a marketing one. In his research The findings show various dimensions that are relevant in
consumer minds when considering decisions regarding technological products. Brand attitudes do
relate positively to consumer intention to use (purchase) specific mobile phones over others.
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Ajay Devan, Laxminandan Khajuria and Ramesh singh Thakuri Combinely did an empirica l
research among Young consumer on Factors Influencing the Selection of a Mobile Phone Service
Provider on 2011. In his research he found that Rural consumers form a formidable block of over
one-fifth of the total mobile phone user-base in India. In comparison to a tele-density of more than
thirty per cent in urban areas, it is less than ten per cent in the rural areas, thereby indicating a huge
scope for future growth. The study was conducted with an objective to identify the factors
influencing the selection of mobile phone service provider among rural users. The study brought
out clearly that the major factors influencing the choice of service provider were network coverage,
price, value-for-money and billing integrity, recommendations from family and friends, customer
service and company image. Network problem was observed to be the most important reason for
switching over to other mobile phone service provider.
Ahmed Tareq Rashid, Laurent Elder did a research on “Mobile Phones and Development: An
Analysis of IDRC-Supported Projects”. According to them In the context of the rapid growth of
mobile phone penetration in developing countries, mobile telephony is currently considered to be
particularly important for development. Yet, until recently, very little systematic evidence was
available that shed light on the developmental impacts of mobile telecommunication. The
Information and Communication Technology for Development (ICT4D) program of the
International Development Research Centre (IDRC), Canada, has played a critical role in filling
some of the research gaps through its partnerships with several key actors in this area. The
objective of this paper is to evaluate the case of mobile phones as a tool in solving development
problems drawing from the evidence of IDRC supported projects. IDRC has supported around 20
projects that cut across several themes such as livelihoods, poverty reduction, health, education,
the environment and disasters. The projects will be analyzed by theme in order to provide a
thematic overview as well as a comparative analysis of the development role of mobile phones. In
exploring the evidence from completed projects as well as the foci of new projects, the paper
summarizes and critically assesses the key findings and suggests possible avenues for future
research.
xxii

xxiii
3. METHODOLOGY
Research methodology is the main body of the study. It is the process of arriving to the Solution
to the problem through plans and systematic dealings with the collection analysis and
interpretation of facts and figures. As the research entirely concerns about the market of the
Mobile phones.
3.1 Research Objective
The main objectives of this Research are as follows.
1) To know how age group affect the demand of Mobile phones.
2) To know what type of Mobile phones are Popular among the customers.
3) To know which features/Designs of mobile phones are more demanding.
4) To know the customers expectation in mobile phones.
5) How income levels affect the choice of the Mobile phones?
6) To know the customers view about smart phones & Normal Phones.
3.2 Research Design
In order to gather the data and information for the Report, the study approach that we mainly focused is
the exploratory research and observation. This Research helps us a lot to prepare the Report and also it
helped to a better understanding of the local people’s participation and perception about the product.
While doing the exploratory research at the same time I did the secondary research which helped us in our
initial stage of the study for getting an in depth view about Mobile market in India and various products
offered. For this, first the study topic was described then the sample size of 200 peoples is selected
to conduct the research. The sample size is divided on different basis for example: on the basis of
age, sex, occupation, income level etc.
3.3 Data Collection Method
In order to complete the study data were collected from both the primary sources as well as from
the secondary sources.
Data from primary sources were collected by
 Online questionnaire filling. (Google Docs)
Out of 200 samples 80 samples are separated to fill the questionnaire online with the help
of Google docs

xxiv
 Offline questionnaire (Field work)
Rest sample i.e. 120 sample have to filled the paper questionnaire. So we have to go to the field to
collect the data.
Data from the secondary sources were collected by
 Surfing the Internet:
Internet has also become one of the important methods of data collection. Since, the basic things
are already published on the internet, so surfing net becomes one of the useful sources to collect
data. We analyzed the publication of the central Bureau related to the mobile market as well as the
report given by the company’s market research published in internet to get the relevant
information.
3.4 Presentation and Analysis of Data
The collected data are presented and analyzed so as to understand the finding easily about the
mobile industries specially regarding to market analysis. In order to clarify and analyze historica l
data and survey findings, I have used tabular and graphical presentation. Findings,
recommendations, and conclusion are drawn on the basis of the analysis.
3.4.1 Data analysis tools and techniques
Without the proper analysis of data in a systematic way it is difficult to determine
anything of any Industries . To determine anything or any policy of any Industries, we must
properly analyze the data in systematic way. So, likewise to study about the market structure
of mobile phones corrective and proper analysis of collected data is needed for which proper
financial tools and techniques are used.
Techniques and tools consists of statistical and mathematical tools and techniques.
Statistical tools like percentage change, trend analysis and mathematical results of data are
also presented in graphical figures like Figure, bar diagram, line graph etc. so that it would
be better and easier to understand.
3.4.2 Classification and Tabulation of data
The data collected are classified, tabulated and arranged in a manner to make it easy to understand
with the use of tables.
3.4.3 Diagrammatic Representation of Data
The various diagrams are used to present the data more clearly. The diagrams used are as follows :

xxv
a. Figure
b. Pie Chart
c. Line graph
d. Bar diagram
e. Histogram
3.5 Limitation of the Study
Every study must have the characteristics of limitation. In today’s dynamic world nothing remains
constant. This study is also berried by the following limitation:
 This is not the result of experiment, but is the result of the field based study, observation
and data analysis.
3.6 Problem faced in data collection
There are so many problem which we have faced in our Research. Some of which are as follows:
 This fieldwork report of being the process of inquiry, investigation, observation and
examination takes a long span of time. However, this report has been prepared within a
tight time boundary in selected topics with limited requirement.
 Secrecy Policy: The respondent hesitates to give the information. Especially, the
company officials were not giving the required information which limited the in-depth
study of Topic.
 Location Constraints: Due to time and cost constraints, our survey was only focused to
limited area. We couldn’t collect data outside the valley.

xxvi
3.7 Study Process
First of all the Study
approach has been
identified
Collection of all the
relevant information about
Mobile Phones through
papers and websites
Preparation of the
Research Models
In-depth planning for
the Questionnaires
preparation
Questionnaire
Preparation
Questionnaire
Administration
Data Analysis and
interpretation
Report Preparation
Recommendation

xxvii
Study Process
4 Presentation and Analysis
Q1. Please select your gender group?
70
130
Female Male
Chart: 1
Female 70
Male 130
Interpretation: The above diagram shows us that that there were 130 Males and 70 females who
filled up our questionnaire for setting up standards and to check the tastes and preferences of
mobile phones used by the customers.
Q2. Please select your marital status?
129
71
Single Married
Chart: 2
Single 129
Married 71
Interpretation: From the people who filled the questionnaire 129 were single and 71 were
married.
Q3. Please select the age group?
12 to 18 32
19 to 30 120
31 to 40 34

40 to 49 6
50+ 8
Flip Phone 6
Normal Phone 30
Slide Phone 28
Touch screen 28
Smart Phone 92
xxviii
34
31 to 40
Chart: 3
32
12 to 18
120
19 to 30
6
40 to 49
8
50 - above
Interpretation: From the above graph we can see that our questionnaire was filled mostly by the
age groups from 19-30 which is 120 followed by 31-40 which is 34, followed by 12-18 which is
32, followed by 50+ which is 8 and then by 40-49 which is 6.
Q4. What type of phone would you like to have?
Flip Phone Normal Phone Slide Phone
Touch screen Smart Phone
3%
15%
Chart: 4
17%
15%
50%
Interpretation: According to the pie chart above it is evident that majority of the people would
like to have smart phones which is 50% followed by Normal phones at 17%, Slide phones and
Touch screen phones at 15% and flip phones at 3%.
Q5. What part of the “look and fee l” of a mobile phone are important to you when you
choosing one?
Screen Size 63
Button /
Keypad 21

xxix
Chart: 5
100
80
60
40
20
Interpretation: The above graph shows us the importance of each feature of the “look and feel”
of mobile phones by the customer. Majority have given importance to touch screen and screen size
than keypad, colors and weight while choosing a mobile phone.
Q6. How important is the design or style of mobile phone to you as opposed to functionality?
Chart: 6
Interpretation: From the above diagram we can observe that out of the 200 respondents 101 feel
design or style is very important, 31 feel it’s extremely important, 43 feel it’s fairly important and
25 feel design or style is not important opposed to the functionality.
Q7. What size of hand set would you prefer?
Small Medium Large
Chart: 7
0
63
21 17 15
84
Series1
Not
Important
Fairly
Important
Very
Important
Extremly
Important
25
43
101
31
12%
41%
47%
Colors 17
Weight 15
Touch screen 84
Not Important 25
Fairly Important 43
Very Important 101
Extremely
Important 31
Small 12
Medium 41
Large 47

Interpretation: According to the above pie chart 47% of the respondents prefer large mobile
phones, 41% prefer medium sizes and 12% prefer small mobile phones.
small(1.0 to
2.4) 23
medium(2.5
to 3.5) 81
large(3.5+) 96
Touch
Screen 106
Key Pad 49
Physical
Button 45
xxx
Q8. What size would you prefer your screen to be?
Series1
81 96
large(3.5+)
Chart: 8
23
small(1.0 to
2.4)
medium(2.5 to
3.5)
Interpretation: According to the diagram above 96 respondents prefer large(3.5+) screen sizes,
82 prefer medium(2.5-3.5) and 23 prefer small(1.0-2.4).
Q9. What method of interaction do you prefer when using mobile phone?
106
49 45
Touch Screen Key Pad Physical Button
Chart: 9
Interpretation: The above bar graph shows that 106 of the respondents prefer touch screen while
interacting, 49 prefer key pad and 45 prefer physical buttons.
Q10.Would you prefer a single button that will start and end a call, or would you pre fer
two distinct buttons for starting and stopping a call?

Single
Button 71
Two
Button 129
listed
together 102
listed
group 98
xxxi
Single Button Two Button
Chart: 10
35%
65%
Interpretation: From the questionnaire majority that is 129 respondents prefer to have two distinct
buttons for starting and stopping a call and 71 of the respondents prefer a single button for starting
and stopping a call. The pie chart shows us that 65% of the respondents prefer two buttons for
starting and ending a call and 35% prefer a single button for starting and ending a call.
Q11 Would you prefer having all of your incoming, outgoing and miss calls listed together
in your call log or would you prefers them to be grouped accordingly?
102
98
Series1
listed together listed group
Chart: 11
Interpretation: From the above bar graph we have observed that 102 respondents prefer having
all of their incoming, outgoing and miss calls listed together in their call log and 98 would prefer
it to be listed in groups.
Q12. Would you prefer your mobile to have its main menu presented as a numbered list or
with icon?

xxxii
Chart: 12
Interpretation: The above pie chart shows us that 61% of the respondents would prefer their
mobile to have its main menu presented with icons and 39% would prefer it in lists.
Q13. What functionality would you prefer to have on your mobile phone?
A. Send /Receive call and SMS
Chart: 13 (a)
Interpretation: According to the graph above 138 respondents ranked call and SMS sending
and receiving 5(most important), 39 respondents ranked it 4, 21 ranked it 3, 1 ranked it 2 and
1 ranked it 1(least important).
B. Camera
39%
61%
List Icons
1 1
21
39
138
Series1
List 79
Icons 121
1(least
Important) 1
2 1
3 21
4 39
5(Most
Important) 138

cam. 1
least most 1
2 13
3 27
4 45
5 most
important 114
MP3 1 least
imp. 21
2 27
3 35
4 53
5 Most Imp. 64
xxxiii
13
Series1
27
45
114
2 3 4 5 most
Chart: 13 (b)
1
cam. 1
least most
important
Interpretation: According to the graph above 114 respondents ranked the camera
functionality 5(most important), 45 ranked it 4, 27 ranked it 3, 13 ranked it 2 and 1 respondent
ranked it 1(least important).
C. MP3 Player
Series1
21 27 35
53 64
2 3 4 5 Most
Chart: 13 (c)
MP3 1
least
imp.
Imp.
Interpretation: According to the graph above 64 respondents ranked the Mp3 functiona lit y
5(most important), 53 ranked it 4, 35 ranked it 3, 27 ranked it 2 and 21 respondents ranked it
1(least important).
Bluetooth 1 least
imp. 29
2 25

xxxiv
D. Bluetooth
Chart: 13 (D)
Blutooth
1 least
imp.
Interpretation: According to the graph above 64 respondents ranked the blue tooth
functionality 5(most important), 45 ranked it 4, 37 ranked it 3, 25 ranked it 2 and 29
respondents ranked it 1(least important).
E. Social media apps
Series1
33 25 21
Chart: 13 (E)
37
84
Interpretation: According to the graph above 84 respondents ranked the social media apps
F. Email Apps
2 3 4 5 most
imp.
29 25
37 45
64
Series1
social media 1 least im2p. 3 4 5 Most imp.
3 37
4 45
5 most imp. 64
Social media 1
least imp. 33
2 25
3 21
4 37
5 Most imp. 84

xxxv
Chart: 13 (F)
email
appmedia
1 least
imp.
Interpretation: According to the graph above 90 respondents ranked the Email apps
G. Games
Chart: 13 (G)
Interpretation: According to the graph above 78 respondents ranked the games functiona lit y
5(most important), 35 ranked it 4, 21 ranked it 3, 25 ranked it 2 and 41 respondents ranked it
1(least important).
H. Organizer
2 3 4 5 Most
imp.
21
47
19 23
90
Series1
games 1
least imp.
2 3 4 5 Most
imp.
41
25 21
35
78
Series1
email
aphelia 1
least imp. 21
2 47
3 19
4 23
5 Most imp. 90
games 1
least imp. 41
2 25
3 21
4 35
5 Most imp. 78

xxxvi
Chart: 13 (H)
Interpretation: According to the graph above 58 respondents ranked the organizer
Q14. What do you consider important when choosing a mobile phone?
A. Functionality
Series1
Chart: 14 (A)
Interpretation: According to the graph above 60 respondents consider functionality 5(most
important), 43 ranked it 4, 43 ranked it 3, 23 ranked it 2 and 31 respondents consider it 1(least
important).
B. Name of Brand
Series1
1 1 11
Chart: 14 (B)
organiz. 1
least imp.
2 3 4 5 Most
imp.
39
33
25
45
58
Series1
31 23 43 43 60
47
140
brand name 1least imp 2 3 4 5 Most imp.
organize.
1 least
imp. 39
2 33
3 25
4 45
5 Most
imp. 58
1 for least
imp 31
2 23
3 43
4 43
5 Most imp. 60
brand
name
1least imp 1
2 1
3 11
4 47
5 Most
imp. 140

Interpretation: According to the graph above 140 respondents consider name of the brand 5(most
important), 47 ranked it 4, 11 ranked it 3, 1 ranked it 2 and 1 respondent consider it 1(least important).
xxxvii
C. Look & Feel
1 7 17
looks & feel 1least imp2 3 4 5 Most imp.
Chart: 14 (C)
According to the graph above 106 respondents consider look and feel 5(most important), 69 ranked it
4, 17 ranked it 3, 7 ranked it 2 and 1 respondent consider it 1(least important).
D. Apps Store
Series1
25 25 24
41
Chart: 14 (D)
85
According to the graph above 85 respondents consider app store 5(most important), 41 ranked it 4, 24
ranked it 3, 25 ranked it 2 and 25 respondents consider it 1(least important).
E. Interoperability
69
106
Series1
apps store 1least i2mp 3 4 5 Most imp.
1least imp 1
2 7
3 17
4 69
5 Most
imp. 106
apps store 1least imp 25
2 25
3 24
4 41
5 Most imp. 85

xxxviii
21 25 13 39
Chart: 14 (E)
Interpretation: According to the graph above 102 respondents consider Interoperability 5(most
important), 39 ranked it 4, 13 ranked it 3, 25 ranked it 2 and 21 respondents consider it 1(least important).
F. Connectivity
Chart: 14 (F)
Interpretation: According to the graph above 88 respondents consider connectivity 5(most important),
53 ranked it 4, 25 ranked it 3, 15 ranked it 2 and 19 respondents consider it 1(least important).
G. Pricing
Chart: 14 (B)
102
Series1
19 15 25
53
88
Series1
pricing
1least
imp
2 3 4 5 Most
imp.
11 11 7
43
128
Series1
1least
imp 19
2 15
3 25
4 53
5 Most
imp. 88
1least
imp 11
2 11
3 7
4 43
5 Most
imp. 128

xxxix
According to the graph above 128 respondents consider pricing 5(most important), 43 ranked it 4, 7
ranked it 3, 11 ranked it 2 and 11 respondents consider it 1(least important).
Q15. How much are you willing to spend on a mobile phone (In Rs)?
Series1
47
10000 -
15000
Chart: 15
21 19
1000 -
5000
5001 -
10000
60
15001 -
20000
23
20001 -
25000
Interpretation: According to the diagram above majority of 60 respondents are willing to spend
15001-20000 on mobile phones, 47 are willing to spend 10000-15000, 23 are willing to spend 15001-
20000, 21 are willing to spend 1000-5000, 19 are willing to spend 5001-10000 on mobile phones.
Q16. What do you think?
A. Smart Phone are better than Normal phone
37
Series1
9 11
1
agree neutral disagree strongly
Chart: 16 (A)
142
strongly
agree
disagree
According to the graph above 142 respondents strongly agree that smart phones are better than normal
phones , 37 only agree, 9 are neutral, 11 disagree and 1 respondent strongly disagree.
B. Smart Phone Supports Application better than other phone
1000
-
5000 21
5001
-
10000 19
10000
-
15000 47
15001
-
20000 60
20001
-
25000 23
strongly
agree 142
agree 37
neutral 9
disagree 11
strongly
disagree 1

xl
59
Series1
30
7 5
Chart: 16 (B)
99
strongly
agree
disagree
According to the graph above 99 respondents strongly agree that smart phones supports application better
than other phones, 59 only agree, 30 are neutral, 7 disagree and 5 respondents strongly disagree.
C. Cheaper Mobile phone have fewer function than the luxurious phone
77 68
Series1
19 19 17
Chart: 16 (C)
strongly
agree
disagree
Interpretation: According to the graph above 77 respondents strongly agree cheaper mobile phones
have fewer function than the luxurious phones, 68 only agree, 19 are neutral, 19 disagree and 17
respondents strongly disagree.
D. Mobile Phone with touch screens are more common than other phone
strongly
agree 99
agree 59
neutral 30
disagree 7
strongly
disagree 5
strongly
agree 77
agree 68
neutral 19
disagree 19
strongly
disagree 17
strongly agree 5
agree 13
neutral 76
disagree 77

xli
5 13
Series1
76 77
29
Chart: 16 (D)
strongly
agree
disagree
Interpretation: According to the graph above 5 respondents strongly agree that mobile phone with
touch screens are more common than other phones , 13 only agree, 76 are neutral, 77 disagree and 29
respondents strongly disagree.
E. Expensive mobile reflect the status of individuals
77
Series1
89
21
7
Chart: 16 (E)
6
strongly
agree
disagree
Interpretation: According to the graph above 6 respondents strongly agree that expensive mobile
reflect the status of individuals, 77 only agree, 89 are neutral, 21 disagree and 7 respondent strongly
disagree.
F. Surfing internet is a major reason to buy expensive mobile
strongly
disagree 29
strongly agree 6
agree 77
neutral 89
disagree 21
strongly
disagree 7
strongly agree 114
agree 53
neutral 31
disagree 1
strongly
disagree 1

xlii
53
Series1
31
1 1
Chart: 16 (F)
114
strongly
agree
disagree
Interpretation: According to the graph above 114 respondents strongly agree that surfing internet is
a major reason to buy expensive mobile, 53 only agree, 31 are neutral, 1 disagree and 1 respondent
strongly disagree.
6 CONCLUSION, FINDINGS & RECOMMENDATION
5.1 Conclusion
200 individuals were randomly selected between November and March, 2013 to check the tastes
and preferences and standards of customers towards mobile phones. All of the respondents used
or are aware of mobile phones.
The questionnaire was designed to gather information on the features, functionality, price and apps
the customer needs and wants while using and purchasing a mobile phone. Questions were
suggested and reviewed by all of the group members.
Hence from the data collection and analysis from the questionnaire we would like to conclude that
majority of our respondents were from the age groups ranging from 15-35. Most of the customers
would like smart and touch phones that are stylish and fashionably designed with large screens
and handsets. Majority prefer organized phones with icons and with two buttons to start and end
calls. Majority of the customers buy phones that have either great and fast calling and smashing

features, a powerful camera , good mp3 player, fast Bluetooth , with the latest apps and games,
and easy to use organizers, with affordable prices mostly ranging from 15001-20000 or all in one.
xliii
5.2. FINDINGS
 Smart Phones are more popular among Customers.
 Phones with Touch screens are more demanding.
 Design of the Mobile gives the additional attraction to Customers to influence their
buying behavior.
 Size of the Phones also plays a vital role, Medium & Large size of Phones and Screen
are more demanding.
 Most people prefer single Button to receive and End the call.
 Following features are more demandable among customers, i.e.
 Camera
 MP3 Player
 Bluetooth
 Internet apps/ Wi-Fi etc
 Most people love to buy Branded Mobile Phones.
 Price of Mobile is a major concern at the time of Buying Mobile phones.
 Most people are investing 15000 to 20000 to buy the Mobiles.
5.2 RECOMMENDATION
The below recommendations are suggested as per the questionnaire survey, keeping in mind that
the target group of respondents are of age groups ranging from 15-35.
The recommendations are:
 To make stylish and fashionably designed smart phones at cheaper rates by cutting costs
on features like radio since it is not used anymore.
 To focus more on connectivity of the internet, games and picture quality of mobile phones.
 To advertise phones with better and clearer call and Sms handlings, great camera, mp3
player, organizers and internet facilities.
 To give more importance to functionality, look and feel and pricing of the phones.

xliv
 To focus on additional function of phones will add more value.
 Focusing on the advertise help to create brand on customers which ultimately gives the
direct benefit to customers.
6.Bibliography
“Consumer Perception on Mobile Phones”, jan 2007. Journal of Consumer Marketing.1984
< http://www.emeraldinsight.com/journals.htm?articleid=186: >
“Discovering behavioral segments in the mobile phone market”, july 2010. Journal of Consumer
Marketing.1984 <http://www.emeraldinsight.com/journals.htm?articleid=1875957>
“An Empirical Study among Rural Consumers”, Nov 2008. Management Research &
Innovation.2002 < http://abr.sagepub.com/content/5/4/128.abstract>
“Factors Influencing the Selection of a Mobile Phone Service Provider”, jan 2010. Asia Pecific
Journal.2003 < http://www.tandfonline.com/doi/abs/10.1362/026725700785100523#.UppBSaNbzFg>
“Mobile market in Rural area”, March 2006. Asian Journals,
2003 < http://ijt.cgpublisher.com/product/pub.42/prod.624 >

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