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Dissertation

                     On
   “Analysis of market potential for
Samsung CDMA Mobile in Mumbai Region”

      Submitted in partial fulfillment of PGPBM from

      International School of Business & Media, Pune



                       Guided by:
                         A S Iyer
           Professor of ISB&M (Viman Nagar)

                     Submitted by:

                    Supriya Kumari
                     Roll No: V2100
             PGPBM(Marketing & Finance)



                                                       1
ACKNOWLEDGEMENT

My Dissertation on the topic Samsung India Electronics Limited (SIEL)’ would not
have been possible and the learning experience would not have been the same
without the guidance and care of certain people. Here I would like to acknowledge
those important people.

My special thanks go to my mentor Prof. A S Iyer who have molded me to handle
such Topic. I am deeply indebted for his guidance.

Irrespective of all other benefits, it was the unconditional support and aid of my
family, which enabled me to achieve to the fullest extent of my endeavor.

I am also indebted to all the store manager/executive for their cooperation rendered
whiles my course of investigation. Now I conclude the passage with sincere thanks
to any and all, I may have forgotten to mention.




EXECUTIVE SUMMARY

During the preparation of my dissertation, I traveled extensively to try & cover
maximum dealers of CDMA market of mumbai.

The main objective of the survey was to know the position of Samsung in market
and present scenario of CDMA mobile market.


The project was done in coordination with the dealers of CDMA mobile market.




                                                                                  2
CONTENTS                                                Page
no.

 1. Introduction                                               6

      A. Mobile Market in India                                7
      B. Company Profile                                       8
      C. Vision of company                                     9
      D. Samsung in mobile business and CDMA business
            10
      E. Product profile
            11

 2. Project Design
            13

      A. Problem identification
             14
      B. Development of an approach to the problem
             15
      C. Research design formulation
             17
      D. Field work or data collection
             18
      E. Analysis of data.
             19

 3. Marketing View
          35

      A. Competitor analysis
            36
      B. SWOT Analysis
            40
      C. 5 Force model
            41

 4.


                                                               3
A. Conclusion And Recommendations
             43
       B. Questionnaire
             47
       C. Bibliography
             49




List of figure and charts

   1. Indian Telecom GSM Vs CDMA           6

   2. Mission of company                   8

   3. Samsung CDMA mobile business         9

   4. Samsung handsets
            10

   5. Product life cycle
             13

   6. Availability of handsets
             17

   7. CDMA market share
          18




                                           4
8. Handset wise market share
         18

9. Comparative market share
        19

10. Consumer demand pie chart
          21

11. Comparative study of consumer demand
         22

12. Consumer pull bar chart
          29

13. After sales service bar chart
            29

14. Distribution bar chart
           30

15. Interpretation charts for Samsung
            31




1. INTRODUCTION


A. Mobile Market in India



                                           5
India is one of the fastest growing mobile markets in the world, having more than
400+ million mobile subscribers. Currently in India 2.5G and 2.75G are in the
existence in GSM Technology. Whereas another technology is CDMA (code
division multiple access), 3G is coming into the existence.

As per as mobile market in India is concerned there are number of GSM service
provider such as:
    o Airtel
    o Vodafone
    o Idea
    o BSNL
    o TATA DOCOMO etc.

Whereas in CDMA there are few number of player as compare to GSM mobile,
such as:
   o TATA (TTSL/TTML)
   o Reliance India mobile
   o Virgin
   o MTS.

In India GSM is more popular than CDMA.




In this sector number of equipment manufacturer or mobile manufacturer presents
such as:
    o Nokia



                                                                               6
o   Samsung
o   LG
o   Mototola
o   Sony
o   Haier
o   Intex
o   HTC
o   I-star
o   Chinese mobiles




B. Company Profile


                      7
INDIA

Samsung India is the hub for Samsung's South West Asia Regional operations. The
South West Asia Headquarters, under the leadership of Mr. J S Shin, President &
CEO, Samsung India which commenced its operations in India in December 1995
enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the
country.

Headquartered in New Delhi, Samsung India has widespread network of sales
offices all over the country. The Samsung manufacturing complex housing
manufacturing facilities for Color Televisions, Mobile phones, Refrigerators and
Washing Machines is located at Noida, near Delhi.

Employing approximately 138,000 people in 124 offices in 56 countries,

Company consists of five main business units:

   o   Digital media Business
   o   LCD Business
   o   Semiconductor Business
   o   Telecommunications
   o   Digital Appliance Business

Samsung India Mobile:

Samsung India Mobile a telecom equipment manufacturer, head office in New Delhi
and country head Mr. Sunil Dutt. Samsung has divided the mobile business in to
areas:

    GSM Mobile Business.

    CDMA Mobile Business.




                                                                              8
C. Vision Of Company


Samsung is guided by a singular vision: to lead the digital convergence movement.

Samsung believe that through technology innovation today, we will find the
solutions we need to address the challenges of tomorrow.

From technology comes opportunity—for businesses to grow, for citizens in
emerging markets to prosper by tapping into the digital economy, and for people to
invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create
new markets, enrich people’s lives and continue to make Samsung a trusted market
leader.



     Mission of Company

Everything we do at Samsung is guided by our mission: to be the best “digital-
εCompany”.




                                                                                    9
D. Samsung CDMA Mobile Business


In CDMA segment Samsung is in market with two functional area that are:

    Operator handsets.

    Open handsets


   o Operator handsets are handsets manufacture by Samsung but it is
     collaborated with any network operator.
               Samsung india has collaboration with following telecom service
     provider in different telecom circles.

             TATA (TTSL / TTML)
             MTS (SSTL)
             Virgin Mobile (VMI)

   o Open handsets are handsets manufacture by Samsung and handsets is
     compatible to any CDMA network, there is no restriction of any specific
     CDMA network.




                                                                          10
E. Product Profile

Samsung has wide range of CDMA products in the market….




                                                          11
12
2. PROJECT   DESIGN




                      13
A. Problem identification / Objective

 Find Out Dealers expectation to sell, promote a particular brand of CDMA
  mobile.

 Find Out the consumers expectation to buy a particular brand of CDMA
  mobile.

 How a consumer choose a new CDMA handset, how does a CDMA mobile
  consumer upgrade handset choice, it mean what features he/she wants in
  handset.

 What features customer likes more in handset?

 Analysis regarding customers complains.

 Samsung rating on dealers and consumers expectations.

 Need gap analysis.




B. Approach To The Problem




                                                                             14
 In Indian Mobile CDMA Market the SAMSUNG CDMA mobile is in
  growth stage.

 In growth stage we need to do following type of market studies.


        Awareness studies: In this study we need to know how much
         customer awareness about the availability/lucrative features of
         Samsung handsets in the market.

        Attitude studies: This study elaborates the expectations and
         thinking’s of seller and consumer as far as the CDMA mobile
         handset is concern.

        Positioning: By this study we would know positioning of Samsung
         CDMA mobile handsets in the mobile market.

        Promotion test: By this study we would know what are the factors
         that improve the sales of Samsung CDMA mobile handsets?

        Tracking studies: This study shows how Samsung CDMA mobile is
         competing with the competitors is. What are the factors we need to
         change/improve to beat the competitors?


   Type of meeting: It would be personal visit/interview to retailers and
    distributors.

   Advantage of Personal visit:

          High response rate.

          Can ask difficult Questions.




                                                                        15
 We have to visit the whole Mumbai: for the proper plan of action of the
  project we divided the Mumbai into the following regions:

       South Mumbai:

       Central Mumbai:

       Western Mumbai:

       Thane:

       Navi Mumbai:

       Dombivali, Vilas nagar.


 Where to visit: Web worlds, TVH, TVS, Modern Trade, Retailers, and
  Distributors.



 Purpose of visit:

       Want to know the customer thinking.

       Their liking and disliking about handsets.

       Sellers/retailers expectation about handsets.

       What improvement is needed in the existing handsets?

       Where the major problem arises in distributions of handsets.

       Where the Samsung CDMA mobile is, in Customers and Sellers
        mind.

  Plan of action:

          There are 14 working days in data collection phase.
          The target is to visit of 140 retailers.
          We have to visit 10-12 retailers/distributors per day.
          Timing would be between 11:00 am to 04:00 pm.
          Every day 1-2 hours for the data entry into excel.




                                                                       16
 After that next 10 days is for data analysis and preparation of
                  reports.
                 29th October would be final submission day of reports and final
                  presentation at Samsung.
   C. Research Design
          Introduction

The research was conducted in Mumbai to find the market potential of CDMA
handsets. The study determines the future potential of CDMA handsets in a
booming economy where organization is going for new technologies in order to
maintain their supremacy over other.

        Scope study

The internship was done under Samsung India Electronics Limited Mumbai. The
CDMA mobile market is going for a boom in world market. This study provides an
insight to the current scenario as well as the future trends of CDMA market. Thus it
can help to find out or to predict the future of CDMA in Indian market.

        Sample Size

           The sample size was 132 respondents taken.

        Questionnaire would be:

                 It would be maximum 15 questions.

                 Maximum questions would be open ended questions.

                 Except one or two questions would be closed ended questions.

                 Time spent to retailers and distributors would be 5 to 10
                  minutes.

    Limitations of Study

              Lack of time
              Constraints in getting appointments
              Low awareness
              Lack of time to cover all the accounts
   D. Field work & Data Collection


                                                                                  17
In the data collection phase I traveled extensively to try & cover maximum dealers
of CDMA market of Mumbai.

Following are the list of locations where I visited during data collection phase:

   o Dahisar.
   o Matunga
   o Matunga Road
   o Mahim
   o Santacruz
   o Fort
   o CST
   o Churchgate
   o Kandivili
   o Kurla
   o Vile parle
   o Thane
   o Andheri
   o Ghatkopar
   o Dadar
   o Borivali
   o Bandra
   o Malad
   o Mulund




                                                                                    18
3. ANALYSIS OF DATA
In this market survey, we have collected data from 132 dealers/retailers (sample
size) of Mumbai region. All data is base on the market research of the 132 retail
store.


Brands presents at the dealers:

                                   SAMSUNG
                                   LG
                                   SPICE
                                   HUAWEI
                                   MICROMAX
                                   HAIER
                                   ZTE
                                   NOKIA
                                   OTHERS (INTEX, HTC, I-STAR etc.)


Collected data (from 132 shops)

      Brands           H/S Availability in shops (out of 132)      % Availability

         LG                         In 122 shops                       93.39 %

      Samsung                       In 126 shops                       95.28 %

        Spice                        In 98 shops                       74.52 %

      Huawei                         In 84 shops                       63.65 %




                                                                              19
Micromax                      In 25 shops                     18.86 %

        ZTE                         In 8 shops                       5.66 %

        Haier                       In 95 shops                     71.69 %

        Nokia                       In 12 shops                      9.43 %

       Others                       In 34 shops                     25.47 %




Availability of handsets in shops




    Above figure shows that Samsung is most preferred brand in CDMA mobile
     handsets among all the brands.

    LG is close competitor of Samsung with 93%+ availability in retail mobile
     stores.

    The availability of Spice, Huawei and Haier is also good in CDMA market
     with availability more than 50% mobile retail stores.



                                                                              20
CDMA Mobile Market Share




    Zigzag line shows CDMA market shares in retail stores.

    CDMA mobile market share is vary in different stores.

    Majority of CDMA mobile market share in stores vary between 20% - 40%.


CDMA Mobile Market Share (Handset wise) in 132 shops

Collected data (from 132 shops)

Market Share       Samsung              LG              Haier         Spice

Less than 20%        1 shop           2 shops         79 shops       28 shops

20% - 30%           23 shops         33 shops         22 shops       39 shops

30% - 40%           38 shops         42 shops         22 shops       21 shops

40% - 50%           39 shops         23 shops          3 shops       21 shops

More than 50%       36 shops         29 shops          5 shops        5 shops




                                                                         21
 Samsungs market share is high among all the brands. In majority of mobile
  retail stores Samsungs CDMA mobile market share is half or more than
  50%.

 In most of the mobile stores Samsungs CDMA mobile market share is 30% -
   40%.

 LG is close competitor of Samsung; in majority of mobile shops market
   share of both of the brand is almost equal.




                                                                        22
Comparative study of Market Share




   As per the above figure the market share of Samsung and LG are overlaping
    in some of the stores. It mean where demand of both the brand is equal.
   The above figure indicated that LG and Samsung are the close competitors.
   Somewhere LG is leading in CDMA market share, somewhere Samsung is
    leading.




                                                                          23
 Majority of availability of Spice mobile in retail stores is less than 20% of
  market share.

 Where as almost Samsungs market share in mobile stores is more than 20%.




 Sales of Haier mobile are very good in some of mobile stores because of low
  price of handsets available in Haier.
 In some of the stores Haier mobile market share is more than 40%.
 But its market share is less as compare to Samsung.




                                                                            24
 The above figure shows that Samsung is most preferred brand in the CDMA
     segment by consumers.

    Samsung has the direct competition with LG.



Consumer Demand of CDMA handsets of different brands (in 132
shops)

Collected data (from 132 shops)

Consumer        Samsung           LG            Haier          Spice         Huawei
 Demand

Extremely       12 (9.4%)     10 (10.3%)       3 (2.6%)           -              -
  High
Very High       80 (61%)      63 (48.2%)     25 (18.6%)       3 (2.6%)           -

   High        28 (21.7%)     40 (31.5%)     50 (38.3%)      44 (38.2%)      9 (6.2%)

  Average        3 (2.4%)       6 (4.7%)     14 (10.3%)      38 (33%)       64 (53.2%)

    Less          2 (2%)         3 (2%)        8 (5.6%)      39 (32.3%)       4 (3%)

 Very less           -           1(1%)         3 (2.6%)       4 (3%)          1 (1%)

No demand            -              -           1 (1%)        3 (2.6%)       5 (3.5%)

 No resp./       9 (5.9%)      12 (8.8%)     27 (22.4%)      37(30.3%)       38 (28.9)
 Product is
    not
 available


The above tables shows the number of retail mobile stores where consumer demand
of each brand of handsets.

In brackets the percentage is given of consumer demand for each brand of handsets.




                                                                                25
Extremly high   Average   Less        No response or product is not
available

   Very high                  Very Less

   High                       Not at all demand




                                                                          26
In more than 70% of stores Samsungs demand is high/very high.

Comparative Study of Consumer demand:




                                                                27
 Above figure shows consumer demand of Samsung CDMA mobile is very
     high. In 61% of retail mobile stores consumer demand is very high.

    Approximate in 10% of retail mobile stores Samsung consumer demand is
     extremely high.

    LG is close competitor of Samsung CDMA mobile, having 48% of very high
     consumer demand.

    Haier demand is also very good among the consumer because of low price
     handsets.




Consumer pull

Collected data (from 132 shops)

Consumer       Samsung         LG          Spice         Haier        Huawei
  pull
Very high       71 shops    50 shops      24 shops      1 shops          -

Above avg       37 shops    58 shops      42 shops      9 shops      23 shops

 Average        12 shops     9 shops      30 shops      36 shops     46 shops

Below avg          -            -          3 shops      49 shops     19 shops

 Not at all        -            -            -          8 shops       5 shops

Pdt not avl.    12 shops    15 shops      33 shops      30 shops     39 shops
No response




                                                                        28
 More than 50% of mobile retail stores in Mumbai where consumer pull for
     Samsung CDMA handsets is very high.

    Almost 80% of the mobile retail stores where consumer pull for the Samsung
     mobile is satisfactory.

    But in 10% stores the distribution of Samsung is not satisfactory.


After sales service

Collected data (from 132 shops)

Consumer        Samsung         LG            Spice         Haier         Huawei
  pull
Very high       8 shops       7 shops        3 shops          -                -

Above avg       79 shops      81 shops      75 shops      22 shops        37 shops

  Average       29 shops      27 shops       9 shops       74 shops       42 shops

 Below avg      4 shops       4 shops        7 shops       8 shops        13 shops

 Not at all     2 shops        1 shop       3 shops        3 shops        10 shops

Pdt not avl./   9 shops       13 shops      35 shops       25 shops       29 shops
no response




                                                                               29
 From the above graph we can conclude that after sales service of LG CDMA
     mobile is some what better than Samsung CDMA mobile.

    After sales service is not satisfactory for all the brands.




Distribution

Collected data (from 132 shops)

Consumer        Samsung            LG             Spice             Haier     Huawei
  pull
Very high        39 shops        34 shops        32 shops          23 shops   29 shops

Above avg        41 shops        47 shops        26 shops          34 shops   51 shops

  Average        28 shops        26 shops        29 shops          12 shops   14 shops

 Below avg       9 shops         7 shops         6 shops           4 shops    6 shops

 Not at all      5 shops          5 shop         3 shops           2 shops    3 shops

Pdt not avl./    9 shops         13 shops        36 shops          25 shops   29 shops



                                                                                 30
no response




    In some mobile stores of the Mumbai region where distribution of Samsung
     is not up to the mark.

    There are few places where distribution of Samsung is worst.



     Interpretations / Conclusion for Samsung (By SPSS software)

Consumer pull – After sales service




                                                                            31
Note: This is conclusion concluded by Chi square test by SPSS software.
      Only major component has taken.


                                            After sales service
       Consumer pull




                                  Very Good                   Good            Average

                       High            4                          38            14

                       Medium          2                          25            9

                       Average          -                         4              -



    There is no significance impact of after sales service to consumer pull.

    There is very high consumer pull despite average after sales services.

    In most of the shops after sales service is good but not very good despite this
     consumer pull is high, where as in some shops after sales service is just
     average but consumer pull is high.

    So we can say that there is no significance impact of after sales service to
     consumer pull.
Consumer pull – Distribution




                                                                                     32
Note: This is conclusion concluded by chi square test by SPSS software.
  Only major component has taken.

                                          Distribution
    Consumer pull




                              Very Good    Good          Average      Below avg

                    High         29         26              3                1

                    Medium       24         14              1                -

                    Average      1           2              1                -




 There is no significance impact of distribution to consumer pull.

 Very high consumers pull despite average distribution of Samsung.

 Very good distribution in some places but there is medium consumer pull.




                                                                             33
Key challenges in CDMA facing by dealers.

   Handsets:

                Very limited model is available.
                Existing models are not attractive.
                CDMA handsets software is slow.
                More handsets problem comes in CDMA as compare to GSM
                 handsets.
                Battery problem and network problem are most.
                Another problem like slow software problem and handset is warm
                 while talking.
                In existing model FM + color display phones are in demand.
                LG/Samsung/Haier are in demand.
                Handset restriction in CDMA.
                It requires quality of handsets
                Nokia handsets should come in CDMA also.

   Market:
              It is main market for first time buyer.
              Very good market for low income people.
              Very limited selling of high range phones.
              But Sales is increase day by day.
              Good market for price range 900-3000 Rs phones.
              Good Market because FM + color display is available in just 1300
               Rs.
              Some of the models are not coming in the market.
              Nokia is not available in CDMA market, except single model.

   Price:
              CDMA is low price handset market.
              Only 1k-2k models are in demand.
              Very less selling of more than 3000 Rs handset.
              LG/Haier is cheaper handsets.
              Samsung is little bit costlier than LG/Haier.
              Price of CDMA handsets are high compare to GSM handsets.
              Recently price is increased that impacted the CDMA market.
              High switching cost in CDMA.
              Nokia is giving Bluetooth + Camera + FM in just 3000 Rs.
               CDMA customer also expect it.
              Price of CDMA handsets should reduce.


   Network:



                                                                            34
 Reliance and TATA are doing good in CDMA market.
              More operator should come in CDMA.
              There are very limited plan and scheme are available in CDMA.

Key motivator for dealers to sell a particular operator CDMA handsets

    Variety of handsets of same range.

    Quality of handsets with additional features.

    Stylish, good looking, fancy, attractive handsets.

    Best voice, display and battery quality.

    2k Rs model.

    FM, color display, speaker phones demand is most.

    Models with good features in least price.

    Better quality phones, sound quality should be like sony erriction and battery
     quality should be like Nokia.

    Price should be 1k to 2k Rs.

Dealers suggestions for Operators CDMA handsets

    Any new feature should come in CDMA.

    Price should less then GSM phones.

    Camera, Bluetooth, memory, music should come in 3k-3.5k Rs.

    Camera also comes in 2k Rs mobile.

    Data cable comes in 2k Rs range.

    Display size should bigger than existing size.

    New functions should come in basic handsets.

    Good quality of software should come in operator handsets.

    At least some memory should also give to the operator handsets




                                                                                35
 Only basic model should come in 700 Rs.




Key motivator for dealers to sell particular open CDMA handsets

    Quality of display and size of display.

    Software uses in handsets.

    Sleek, thin and good looking attractive model.

    Good sound, battery and display quality.

    At least 2 Mega pixel camera and 1 GB memory.

    It should be extendable memory.

    Music phones with 5k range model.

    Slide mobile is also in high demand.

    5k Rs = camera (at least 2 MP) + 1GB memory + Bluetooth + slide shape.

    CDMA + GSM phones customer likes more than GSM + GSM.

    Extra accessories like headphones, data cables, cds.

    Generally customer asks for memory, how many songs can be stored.

    3.5k to 7k Rs model are good in demand.


Dealer’s suggestions for open CDMA handsets

    3k-5k Rs model should available in more variant.

    More variant of slide phones and touch screen phones should available.

    Touch screen phones should come in 8k Rs range.




                                                                              36
Key factor that motivate consumer to buy CDMA handsets

   Customer goes for feature and function of handsets.

   Very few customers go for brand of handsets.

   Operators brand is matter while buying.

   Customer wants good looking, sleek, light weight handsets.

   Customer wants better display, good battery backup, good sound quality.

   Customer chooses the model according to features and price of handsets.

   Mainly in CDMA customer prefer 1k-3k Rs range mobile.

   Very few times customer goes for above 3k range mobile.

   Still CDMA + GSM mobiles are very good in demand.

   Customer pays 1000 Rs for basic handsets, 1500 Rs for handsets with FM
    and in 3000 Rs customer expects camera and memory.

   Customer CDMA handsets feature and quality should better than GSM
    handsets.

   Very important is network operators plan and scheme.




                                                                              37
Key Factor that consumer consider while making 1st time handsets
purchase

    Customer wants 1k-2k Rs range mobile.

    Customer goes for basic models but if FM facility is there than prefer that.

    Basic model + color display + FM + speaker phone in 2K Rs range is most
     prefer handsets.

    Customer pays 1000 Rs for basic models and more than that amount they
     expect FM.

    Display of handsets and software of handsets is also play major role while
     purchasing.

    Other features like phone book memory at least 500 contacts storage should
     be there.

    In message storage at least 150 messages storage should be there.

    Customer goes for the look of the handsets.

    Customer expects headphones with the models.

    Customer always asks for battery backup while purchasing.




                                                                                    38
Key Factor looked in handsets by consumer while upgrade of handsets

    Slide mobile is in demand of this segment.

    CDMA + GSM handsets have more no of selling than GSM + GSM
     handsets.

    Attractive model look, thin model and light weight model customer want.

    Customer goes for display quality, clarity of display and software used in
     model.

    4k-8k Rs range model are good in market.

    Camera clarity in megapixels, at least 2 MP should be there but 3.2 MP is
     preferred.

    At least 1GB memory should be in model, extendable memory should be
     there.

    Bluetooth is must.

    Recorder should be present in model.

    Internet/ GPRS facility should be in model.

    Multimedia phones are also in demand.

    Good battery backup.




                                                                               39
 Extra accessories like head phones, data cables CDs should provide by
    company.

   Free ringtones, songs and software should provide by dealers.




Dealers Suggestions to promote CDMA handsets

Handsets:

   Quality of handsets should available.
   Variety of handsets should available in CDMA.
   Good looking, stylish, attractive handsets like sony & Nokia should available
    in CDMA.
   New model should launched by the company, frequently.
   Battery backup and handset functionality should improve.
   Voice quality should improve.
   Change/improve the quality of software; come up with good quality of
    software.
   More number of 4k-5k Rs model should available
   Song as ring tone should come in CDMA basic models.
   Camera, music, recorder, memory should also come in 3k-4k Rs range.
   Camera should also come in basic handsets
   Handsets should use in both CDMA as well as GSM network.



                                                                              40
 Every operator comes up with variety of handsets.
    Price should reduce.


Offers / Marketing

    Company should provide free ring tones, wallpapers, and softwares in
     CDMA.
    Company should provide extra accessories like headphone, data cable &
     CDs.
    Create awareness about CDMA brands.
    Advertisement, branding is requiring of CDMA handsets.
    Large advertisement board is required.
    Offers, consumer offers, festive offers.
    Improve the distribution of CDMA handsets.




  4.   MARKETING VIEW




Competitors Analysis

Following are the main competitors of Samsung CDMA Mobile:

   o LG

   o Huawei

   o Haier




                                                                             41
o Micromax

  o Nokia

  o Spice

  o Intex

  o HTC

  o I-Star




Competitor’s Model Analysis

   1. Product LG 3100
             :
        Name CDMA Handset
                FM Radio Speaker 32 Polyphonic
                Ringtones Long Battery Life,
                1 e-mail 3 Way Calling and more..


     Category : CDMA Handsets
        Brand : LG
   Price Range : Rs. 1710* ( * approx. price)




                                                    42
2.    Product LG 3500
             :
        Name CDMA Handset
              LG 3500 Mobile phone comes with Reliance have the distinguish
              Features as good battery backup ...


     Category : CDMA Handsets
       Brand : LG
Price Range : Rs. 999 to 1,999




 3. Product LG RD 3000
           :
      Name , CDMA Handset
               Stylish looking bar type color phone High capacity battery 32
               polyphonic rington ...
               [ Read More ] [ Specifications ] [ Description ]
     Category : CDMA Handsets
        Brand : LG
 Price Range : Rs. 1199* ( * approx. price)




                                                                       43
4. Product
           : LG VX8300 Cellular Phone, CDMA Handset
     Name
             This slim and sleek VX8300 is built for serious mobile fun.
             Exchange vCards ...


  Category : CDMA Handsets
     Brand : LG
Price Range : Rs. 3200* ( * approx. price)




5. Product
           : LG Chocolate VX8500 Cellular Phone CDMA Handset
     Name
             LGs mobile treat, the VX-8500 Chocolate offers minimalist-inspired
             style and more…
  Category : CDMA Handsets
     Brand : LG
Price Range : Rs. 12000* ( * approx. price)



                                                                         44
6. Product name : Haier Sumukha CDMA

     Features: Network CDMA 800 MHz
               Dimensions 100x42x15 mm
               Weight 80grams
               Type 1.5'', 65K CSTN
               Size 128x128 pixels
               Phonebook 200 entries
               Call Records 10 missed, 10 dialled, 10 recevied calls
               Messaging SMS, MMS
               Clock Yes
               Alarm Yes
               Games Yes
               T9 Dictionary
               Stand-by Up to 115.00hrs
               Talk time Up to 3 hrs 00 min




5 Force Model




                                                                       45
-

-   Threat of new entrants [ High ]

    There are lot of competition in Indian telecom market ,Chinese mobile companies
    are also entering into the sector. In Indian telecom market having more than 400+
    million subscribers with 42% of teledensity, still there is lot of potential is
    remaining.


-   Bargaining power of suppliers [ Low]
    As we know that there is very difficult to switch in B2B Market.

-   Bargaining power of buyers [ High]

    Indian market is very price sensitive market. Awareness about the mobile is very
    high so that bargaining power of the customer is also very high.


-   Threat of substitute products [ High ]

    GSM is as a substitution for the CDMA mobile so threat of substitute is high.



                                                                                       46
-

-   Rivalry among competing firms [ High ]

    There if very high competition among the mobile equipment manufacturer. Chinese
    companies also coming in Indian market.

    SWOT Analysis
          SWOT analysis of Samsung CDMA mobile:

                      Strength:

                            o Samsung is well known brand in electronic market.

                            o Samsung is in both direct market as well as open
                              market in mobile segment.

                            o Collaborations with TATA, MTS (SSTL), Virgin
                              mobile.

                            o Large range of CDMA mobile product from 1K to
                              14K.

                            o Strong National distribution channels.

                      Weakness:

                            o Samsung’s late entry in Indian mobile market.

                            o Samsung is not market leader in mobile market
                              segment.

                      Opportunity:

                            o Tele density is increasing in Indian telecom market.

                            o CDMA mobile would play a major role in rural
                              penetration.

                            o 3G is coming into existence.

                            o Falling ARPU’s of Indian telcos.

                            o Foreign telcos are coming into Indian market would
                              be opportunity for direct market.



                                                                                     47
 Threats:

                         o Popularity of GSM mobile.

                         o Competitors are focusing only in telecom segment.

                         o Entry of foreign player in mobile equipment market.

                         o Threats from Chinese mobile market




5. CONCLUSIONS                 & RECOMMENDATIONS


  Conclusions

     CDMA market has 30-35% of total mobile market share.
     CDMA sales are increase day by day.
     Samsung Market share is high among all the brands.
     Market share of LG is very much similar to Samsung in mobile stores.
     CDMA mobile market is very price sensitive market.
     Maximum selling of 1k-2k Rs lower range handsets.
     A handsets restriction is biggest problem in CDMA segment.
     Customers are very much aware about every feature of handsets.
     In CDMA mobile market there are limited player are available.
     There are very close competition among some players of handsets
      manufacturer.
     In CDMA very limited handsets is available.
     In CDMA variety of handsets is required.
     In CDMA handsets battery problem is biggest problem.
     Price of CDMA handsets is high as compare to GSM handsets.
     Basic handsets + FM + speaker are most demand model in operator handsets.




                                                                               48
 Camera (>=2 mp), memory (>=1GB), slide model are important factor that
    influence the customer.
   Samsung is most preferred brand among the consumers.
   After sales service of Samsung CDMA mobile is average.




Recommendations

   Variety of handsets should available.
   Company should provide free ring tones, wallpapers, and softwares in
    CDMA.
   Company should provide extra accessories like headphone, data cable &
    CDs.
   Create awareness about CDMA brands.
   Advertisement, branding is requiring of CDMA handsets.
   Large advertisement board is required.
   Offers, consumer offers, festive offers.
   Improve the distribution of CDMA handsets.
   3k-5k Rs model should available in more variant.
   More variant of slide phones and touch screen phones should available.
   Touch screen phones should come in 8k Rs range.
   Any new feature should come in CDMA.
   Price should less then GSM phones.
   Camera, Bluetooth, memory, music should come in 3k-3.5k Rs.
   Camera also comes in 2k Rs mobile.
   Data cable comes in 2k Rs range.
   Display size should bigger than existing size.



                                                                             49
 New functions should come in basic handsets.
      Good quality of software should come in operator handsets.
      At least some memory should also give to the operator handsets
      Only basic model should come in 700 Rs.




                   QUESTIONNAIRE


                   CDMA Mobile Market Survey

Retailer
Name___________________________________________________________

Location______________________ Date______________
Time__________________

Type MBO           WW          WWE         TVH           TVS        Modern Trade


1.
     a. Total Handset Sales : ____________________________
     b. CDMA handset sales, total : _______________________
     c. CDMA Handset Sales share in % of the following brands

LG_______       Spice ______     Samsung_______       Micromax____________

         Huawei____________       ZTE_______________       Others__________________




                                                                              50
2. Please rank the following CDMA brand in terms of best consumer demand for the brands.


LG____, Samsung___, ZTE_____, Huwaei_____, Spice_____, Micromax_____, Haier_____

Others ________

3. What are the key Challenges that you are facing in CDMA?




4. What are the key motivators for you to sell particular CDMA handsets? Also Rank the order
of importance?

            Operator Handsets                                  Open Handsets




5. What are the key factors that motivate a consumer to buy a particular brand of CDMA
   Handset? Also Rank the order of importance.




6. What are the key factors looked in handsets by a consumer who upgrades in CDMA?




8. Please rank the brands on the below parameters

7. What are the key factor that consumer consider whileservice a first time handset
       Brand            Consumer pull       After sales making           Distribution
purchase from an operator.


                                                                                 51
LG                    ________             ___________            ___________
Samsung               ________             ___________            ___________
Huwaei                ________             ___________            ___________
ZTE                   ________             ___________            ___________
Spice                 ________             ___________            ___________
Haier                 ________             ___________            ___________
Other


9. What are the key steps any brand should take to increase the sales of CDMA handsets
from your shop?




                                                         Thanks for your
cooperation.

Bibliography

www.samsung.com

www.themobilestore.com

www.mobileindia.com

www.spssinc.com

www.compareindia.com

Philip Kotler Marketing Management

Naresh Malhotra Marketing Research

Tull & Hokins Marketing Research.




                                                                                52
53

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Samsung project report

  • 1. Dissertation On “Analysis of market potential for Samsung CDMA Mobile in Mumbai Region” Submitted in partial fulfillment of PGPBM from International School of Business & Media, Pune Guided by: A S Iyer Professor of ISB&M (Viman Nagar) Submitted by: Supriya Kumari Roll No: V2100 PGPBM(Marketing & Finance) 1
  • 2. ACKNOWLEDGEMENT My Dissertation on the topic Samsung India Electronics Limited (SIEL)’ would not have been possible and the learning experience would not have been the same without the guidance and care of certain people. Here I would like to acknowledge those important people. My special thanks go to my mentor Prof. A S Iyer who have molded me to handle such Topic. I am deeply indebted for his guidance. Irrespective of all other benefits, it was the unconditional support and aid of my family, which enabled me to achieve to the fullest extent of my endeavor. I am also indebted to all the store manager/executive for their cooperation rendered whiles my course of investigation. Now I conclude the passage with sincere thanks to any and all, I may have forgotten to mention. EXECUTIVE SUMMARY During the preparation of my dissertation, I traveled extensively to try & cover maximum dealers of CDMA market of mumbai. The main objective of the survey was to know the position of Samsung in market and present scenario of CDMA mobile market. The project was done in coordination with the dealers of CDMA mobile market. 2
  • 3. CONTENTS Page no. 1. Introduction 6 A. Mobile Market in India 7 B. Company Profile 8 C. Vision of company 9 D. Samsung in mobile business and CDMA business 10 E. Product profile 11 2. Project Design 13 A. Problem identification 14 B. Development of an approach to the problem 15 C. Research design formulation 17 D. Field work or data collection 18 E. Analysis of data. 19 3. Marketing View 35 A. Competitor analysis 36 B. SWOT Analysis 40 C. 5 Force model 41 4. 3
  • 4. A. Conclusion And Recommendations 43 B. Questionnaire 47 C. Bibliography 49 List of figure and charts 1. Indian Telecom GSM Vs CDMA 6 2. Mission of company 8 3. Samsung CDMA mobile business 9 4. Samsung handsets 10 5. Product life cycle 13 6. Availability of handsets 17 7. CDMA market share 18 4
  • 5. 8. Handset wise market share 18 9. Comparative market share 19 10. Consumer demand pie chart 21 11. Comparative study of consumer demand 22 12. Consumer pull bar chart 29 13. After sales service bar chart 29 14. Distribution bar chart 30 15. Interpretation charts for Samsung 31 1. INTRODUCTION A. Mobile Market in India 5
  • 6. India is one of the fastest growing mobile markets in the world, having more than 400+ million mobile subscribers. Currently in India 2.5G and 2.75G are in the existence in GSM Technology. Whereas another technology is CDMA (code division multiple access), 3G is coming into the existence. As per as mobile market in India is concerned there are number of GSM service provider such as: o Airtel o Vodafone o Idea o BSNL o TATA DOCOMO etc. Whereas in CDMA there are few number of player as compare to GSM mobile, such as: o TATA (TTSL/TTML) o Reliance India mobile o Virgin o MTS. In India GSM is more popular than CDMA. In this sector number of equipment manufacturer or mobile manufacturer presents such as: o Nokia 6
  • 7. o Samsung o LG o Mototola o Sony o Haier o Intex o HTC o I-star o Chinese mobiles B. Company Profile 7
  • 8. INDIA Samsung India is the hub for Samsung's South West Asia Regional operations. The South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, Samsung India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the country. The Samsung manufacturing complex housing manufacturing facilities for Color Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near Delhi. Employing approximately 138,000 people in 124 offices in 56 countries, Company consists of five main business units: o Digital media Business o LCD Business o Semiconductor Business o Telecommunications o Digital Appliance Business Samsung India Mobile: Samsung India Mobile a telecom equipment manufacturer, head office in New Delhi and country head Mr. Sunil Dutt. Samsung has divided the mobile business in to areas:  GSM Mobile Business.  CDMA Mobile Business. 8
  • 9. C. Vision Of Company Samsung is guided by a singular vision: to lead the digital convergence movement. Samsung believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunity—for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities. It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make Samsung a trusted market leader. Mission of Company Everything we do at Samsung is guided by our mission: to be the best “digital- εCompany”. 9
  • 10. D. Samsung CDMA Mobile Business In CDMA segment Samsung is in market with two functional area that are:  Operator handsets.  Open handsets o Operator handsets are handsets manufacture by Samsung but it is collaborated with any network operator. Samsung india has collaboration with following telecom service provider in different telecom circles.  TATA (TTSL / TTML)  MTS (SSTL)  Virgin Mobile (VMI) o Open handsets are handsets manufacture by Samsung and handsets is compatible to any CDMA network, there is no restriction of any specific CDMA network. 10
  • 11. E. Product Profile Samsung has wide range of CDMA products in the market…. 11
  • 12. 12
  • 13. 2. PROJECT DESIGN 13
  • 14. A. Problem identification / Objective  Find Out Dealers expectation to sell, promote a particular brand of CDMA mobile.  Find Out the consumers expectation to buy a particular brand of CDMA mobile.  How a consumer choose a new CDMA handset, how does a CDMA mobile consumer upgrade handset choice, it mean what features he/she wants in handset.  What features customer likes more in handset?  Analysis regarding customers complains.  Samsung rating on dealers and consumers expectations.  Need gap analysis. B. Approach To The Problem 14
  • 15.  In Indian Mobile CDMA Market the SAMSUNG CDMA mobile is in growth stage.  In growth stage we need to do following type of market studies.  Awareness studies: In this study we need to know how much customer awareness about the availability/lucrative features of Samsung handsets in the market.  Attitude studies: This study elaborates the expectations and thinking’s of seller and consumer as far as the CDMA mobile handset is concern.  Positioning: By this study we would know positioning of Samsung CDMA mobile handsets in the mobile market.  Promotion test: By this study we would know what are the factors that improve the sales of Samsung CDMA mobile handsets?  Tracking studies: This study shows how Samsung CDMA mobile is competing with the competitors is. What are the factors we need to change/improve to beat the competitors?  Type of meeting: It would be personal visit/interview to retailers and distributors.  Advantage of Personal visit:  High response rate.  Can ask difficult Questions. 15
  • 16.  We have to visit the whole Mumbai: for the proper plan of action of the project we divided the Mumbai into the following regions:  South Mumbai:  Central Mumbai:  Western Mumbai:  Thane:  Navi Mumbai:  Dombivali, Vilas nagar.  Where to visit: Web worlds, TVH, TVS, Modern Trade, Retailers, and Distributors.  Purpose of visit:  Want to know the customer thinking.  Their liking and disliking about handsets.  Sellers/retailers expectation about handsets.  What improvement is needed in the existing handsets?  Where the major problem arises in distributions of handsets.  Where the Samsung CDMA mobile is, in Customers and Sellers mind.  Plan of action:  There are 14 working days in data collection phase.  The target is to visit of 140 retailers.  We have to visit 10-12 retailers/distributors per day.  Timing would be between 11:00 am to 04:00 pm.  Every day 1-2 hours for the data entry into excel. 16
  • 17.  After that next 10 days is for data analysis and preparation of reports.  29th October would be final submission day of reports and final presentation at Samsung. C. Research Design  Introduction The research was conducted in Mumbai to find the market potential of CDMA handsets. The study determines the future potential of CDMA handsets in a booming economy where organization is going for new technologies in order to maintain their supremacy over other.  Scope study The internship was done under Samsung India Electronics Limited Mumbai. The CDMA mobile market is going for a boom in world market. This study provides an insight to the current scenario as well as the future trends of CDMA market. Thus it can help to find out or to predict the future of CDMA in Indian market.  Sample Size The sample size was 132 respondents taken.  Questionnaire would be:  It would be maximum 15 questions.  Maximum questions would be open ended questions.  Except one or two questions would be closed ended questions.  Time spent to retailers and distributors would be 5 to 10 minutes.  Limitations of Study  Lack of time  Constraints in getting appointments  Low awareness  Lack of time to cover all the accounts D. Field work & Data Collection 17
  • 18. In the data collection phase I traveled extensively to try & cover maximum dealers of CDMA market of Mumbai. Following are the list of locations where I visited during data collection phase: o Dahisar. o Matunga o Matunga Road o Mahim o Santacruz o Fort o CST o Churchgate o Kandivili o Kurla o Vile parle o Thane o Andheri o Ghatkopar o Dadar o Borivali o Bandra o Malad o Mulund 18
  • 19. 3. ANALYSIS OF DATA In this market survey, we have collected data from 132 dealers/retailers (sample size) of Mumbai region. All data is base on the market research of the 132 retail store. Brands presents at the dealers:  SAMSUNG  LG  SPICE  HUAWEI  MICROMAX  HAIER  ZTE  NOKIA  OTHERS (INTEX, HTC, I-STAR etc.) Collected data (from 132 shops) Brands H/S Availability in shops (out of 132) % Availability LG In 122 shops 93.39 % Samsung In 126 shops 95.28 % Spice In 98 shops 74.52 % Huawei In 84 shops 63.65 % 19
  • 20. Micromax In 25 shops 18.86 % ZTE In 8 shops 5.66 % Haier In 95 shops 71.69 % Nokia In 12 shops 9.43 % Others In 34 shops 25.47 % Availability of handsets in shops  Above figure shows that Samsung is most preferred brand in CDMA mobile handsets among all the brands.  LG is close competitor of Samsung with 93%+ availability in retail mobile stores.  The availability of Spice, Huawei and Haier is also good in CDMA market with availability more than 50% mobile retail stores. 20
  • 21. CDMA Mobile Market Share  Zigzag line shows CDMA market shares in retail stores.  CDMA mobile market share is vary in different stores.  Majority of CDMA mobile market share in stores vary between 20% - 40%. CDMA Mobile Market Share (Handset wise) in 132 shops Collected data (from 132 shops) Market Share Samsung LG Haier Spice Less than 20% 1 shop 2 shops 79 shops 28 shops 20% - 30% 23 shops 33 shops 22 shops 39 shops 30% - 40% 38 shops 42 shops 22 shops 21 shops 40% - 50% 39 shops 23 shops 3 shops 21 shops More than 50% 36 shops 29 shops 5 shops 5 shops 21
  • 22.  Samsungs market share is high among all the brands. In majority of mobile retail stores Samsungs CDMA mobile market share is half or more than 50%.  In most of the mobile stores Samsungs CDMA mobile market share is 30% - 40%.  LG is close competitor of Samsung; in majority of mobile shops market share of both of the brand is almost equal. 22
  • 23. Comparative study of Market Share  As per the above figure the market share of Samsung and LG are overlaping in some of the stores. It mean where demand of both the brand is equal.  The above figure indicated that LG and Samsung are the close competitors.  Somewhere LG is leading in CDMA market share, somewhere Samsung is leading. 23
  • 24.  Majority of availability of Spice mobile in retail stores is less than 20% of market share.  Where as almost Samsungs market share in mobile stores is more than 20%.  Sales of Haier mobile are very good in some of mobile stores because of low price of handsets available in Haier.  In some of the stores Haier mobile market share is more than 40%.  But its market share is less as compare to Samsung. 24
  • 25.  The above figure shows that Samsung is most preferred brand in the CDMA segment by consumers.  Samsung has the direct competition with LG. Consumer Demand of CDMA handsets of different brands (in 132 shops) Collected data (from 132 shops) Consumer Samsung LG Haier Spice Huawei Demand Extremely 12 (9.4%) 10 (10.3%) 3 (2.6%) - - High Very High 80 (61%) 63 (48.2%) 25 (18.6%) 3 (2.6%) - High 28 (21.7%) 40 (31.5%) 50 (38.3%) 44 (38.2%) 9 (6.2%) Average 3 (2.4%) 6 (4.7%) 14 (10.3%) 38 (33%) 64 (53.2%) Less 2 (2%) 3 (2%) 8 (5.6%) 39 (32.3%) 4 (3%) Very less - 1(1%) 3 (2.6%) 4 (3%) 1 (1%) No demand - - 1 (1%) 3 (2.6%) 5 (3.5%) No resp./ 9 (5.9%) 12 (8.8%) 27 (22.4%) 37(30.3%) 38 (28.9) Product is not available The above tables shows the number of retail mobile stores where consumer demand of each brand of handsets. In brackets the percentage is given of consumer demand for each brand of handsets. 25
  • 26. Extremly high Average Less No response or product is not available Very high Very Less High Not at all demand 26
  • 27. In more than 70% of stores Samsungs demand is high/very high. Comparative Study of Consumer demand: 27
  • 28.  Above figure shows consumer demand of Samsung CDMA mobile is very high. In 61% of retail mobile stores consumer demand is very high.  Approximate in 10% of retail mobile stores Samsung consumer demand is extremely high.  LG is close competitor of Samsung CDMA mobile, having 48% of very high consumer demand.  Haier demand is also very good among the consumer because of low price handsets. Consumer pull Collected data (from 132 shops) Consumer Samsung LG Spice Haier Huawei pull Very high 71 shops 50 shops 24 shops 1 shops - Above avg 37 shops 58 shops 42 shops 9 shops 23 shops Average 12 shops 9 shops 30 shops 36 shops 46 shops Below avg - - 3 shops 49 shops 19 shops Not at all - - - 8 shops 5 shops Pdt not avl. 12 shops 15 shops 33 shops 30 shops 39 shops No response 28
  • 29.  More than 50% of mobile retail stores in Mumbai where consumer pull for Samsung CDMA handsets is very high.  Almost 80% of the mobile retail stores where consumer pull for the Samsung mobile is satisfactory.  But in 10% stores the distribution of Samsung is not satisfactory. After sales service Collected data (from 132 shops) Consumer Samsung LG Spice Haier Huawei pull Very high 8 shops 7 shops 3 shops - - Above avg 79 shops 81 shops 75 shops 22 shops 37 shops Average 29 shops 27 shops 9 shops 74 shops 42 shops Below avg 4 shops 4 shops 7 shops 8 shops 13 shops Not at all 2 shops 1 shop 3 shops 3 shops 10 shops Pdt not avl./ 9 shops 13 shops 35 shops 25 shops 29 shops no response 29
  • 30.  From the above graph we can conclude that after sales service of LG CDMA mobile is some what better than Samsung CDMA mobile.  After sales service is not satisfactory for all the brands. Distribution Collected data (from 132 shops) Consumer Samsung LG Spice Haier Huawei pull Very high 39 shops 34 shops 32 shops 23 shops 29 shops Above avg 41 shops 47 shops 26 shops 34 shops 51 shops Average 28 shops 26 shops 29 shops 12 shops 14 shops Below avg 9 shops 7 shops 6 shops 4 shops 6 shops Not at all 5 shops 5 shop 3 shops 2 shops 3 shops Pdt not avl./ 9 shops 13 shops 36 shops 25 shops 29 shops 30
  • 31. no response  In some mobile stores of the Mumbai region where distribution of Samsung is not up to the mark.  There are few places where distribution of Samsung is worst. Interpretations / Conclusion for Samsung (By SPSS software) Consumer pull – After sales service 31
  • 32. Note: This is conclusion concluded by Chi square test by SPSS software. Only major component has taken. After sales service Consumer pull Very Good Good Average High 4 38 14 Medium 2 25 9 Average - 4 -  There is no significance impact of after sales service to consumer pull.  There is very high consumer pull despite average after sales services.  In most of the shops after sales service is good but not very good despite this consumer pull is high, where as in some shops after sales service is just average but consumer pull is high.  So we can say that there is no significance impact of after sales service to consumer pull. Consumer pull – Distribution 32
  • 33. Note: This is conclusion concluded by chi square test by SPSS software. Only major component has taken. Distribution Consumer pull Very Good Good Average Below avg High 29 26 3 1 Medium 24 14 1 - Average 1 2 1 -  There is no significance impact of distribution to consumer pull.  Very high consumers pull despite average distribution of Samsung.  Very good distribution in some places but there is medium consumer pull. 33
  • 34. Key challenges in CDMA facing by dealers.  Handsets:  Very limited model is available.  Existing models are not attractive.  CDMA handsets software is slow.  More handsets problem comes in CDMA as compare to GSM handsets.  Battery problem and network problem are most.  Another problem like slow software problem and handset is warm while talking.  In existing model FM + color display phones are in demand.  LG/Samsung/Haier are in demand.  Handset restriction in CDMA.  It requires quality of handsets  Nokia handsets should come in CDMA also.  Market:  It is main market for first time buyer.  Very good market for low income people.  Very limited selling of high range phones.  But Sales is increase day by day.  Good market for price range 900-3000 Rs phones.  Good Market because FM + color display is available in just 1300 Rs.  Some of the models are not coming in the market.  Nokia is not available in CDMA market, except single model.  Price:  CDMA is low price handset market.  Only 1k-2k models are in demand.  Very less selling of more than 3000 Rs handset.  LG/Haier is cheaper handsets.  Samsung is little bit costlier than LG/Haier.  Price of CDMA handsets are high compare to GSM handsets.  Recently price is increased that impacted the CDMA market.  High switching cost in CDMA.  Nokia is giving Bluetooth + Camera + FM in just 3000 Rs. CDMA customer also expect it.  Price of CDMA handsets should reduce.  Network: 34
  • 35.  Reliance and TATA are doing good in CDMA market.  More operator should come in CDMA.  There are very limited plan and scheme are available in CDMA. Key motivator for dealers to sell a particular operator CDMA handsets  Variety of handsets of same range.  Quality of handsets with additional features.  Stylish, good looking, fancy, attractive handsets.  Best voice, display and battery quality.  2k Rs model.  FM, color display, speaker phones demand is most.  Models with good features in least price.  Better quality phones, sound quality should be like sony erriction and battery quality should be like Nokia.  Price should be 1k to 2k Rs. Dealers suggestions for Operators CDMA handsets  Any new feature should come in CDMA.  Price should less then GSM phones.  Camera, Bluetooth, memory, music should come in 3k-3.5k Rs.  Camera also comes in 2k Rs mobile.  Data cable comes in 2k Rs range.  Display size should bigger than existing size.  New functions should come in basic handsets.  Good quality of software should come in operator handsets.  At least some memory should also give to the operator handsets 35
  • 36.  Only basic model should come in 700 Rs. Key motivator for dealers to sell particular open CDMA handsets  Quality of display and size of display.  Software uses in handsets.  Sleek, thin and good looking attractive model.  Good sound, battery and display quality.  At least 2 Mega pixel camera and 1 GB memory.  It should be extendable memory.  Music phones with 5k range model.  Slide mobile is also in high demand.  5k Rs = camera (at least 2 MP) + 1GB memory + Bluetooth + slide shape.  CDMA + GSM phones customer likes more than GSM + GSM.  Extra accessories like headphones, data cables, cds.  Generally customer asks for memory, how many songs can be stored.  3.5k to 7k Rs model are good in demand. Dealer’s suggestions for open CDMA handsets  3k-5k Rs model should available in more variant.  More variant of slide phones and touch screen phones should available.  Touch screen phones should come in 8k Rs range. 36
  • 37. Key factor that motivate consumer to buy CDMA handsets  Customer goes for feature and function of handsets.  Very few customers go for brand of handsets.  Operators brand is matter while buying.  Customer wants good looking, sleek, light weight handsets.  Customer wants better display, good battery backup, good sound quality.  Customer chooses the model according to features and price of handsets.  Mainly in CDMA customer prefer 1k-3k Rs range mobile.  Very few times customer goes for above 3k range mobile.  Still CDMA + GSM mobiles are very good in demand.  Customer pays 1000 Rs for basic handsets, 1500 Rs for handsets with FM and in 3000 Rs customer expects camera and memory.  Customer CDMA handsets feature and quality should better than GSM handsets.  Very important is network operators plan and scheme. 37
  • 38. Key Factor that consumer consider while making 1st time handsets purchase  Customer wants 1k-2k Rs range mobile.  Customer goes for basic models but if FM facility is there than prefer that.  Basic model + color display + FM + speaker phone in 2K Rs range is most prefer handsets.  Customer pays 1000 Rs for basic models and more than that amount they expect FM.  Display of handsets and software of handsets is also play major role while purchasing.  Other features like phone book memory at least 500 contacts storage should be there.  In message storage at least 150 messages storage should be there.  Customer goes for the look of the handsets.  Customer expects headphones with the models.  Customer always asks for battery backup while purchasing. 38
  • 39. Key Factor looked in handsets by consumer while upgrade of handsets  Slide mobile is in demand of this segment.  CDMA + GSM handsets have more no of selling than GSM + GSM handsets.  Attractive model look, thin model and light weight model customer want.  Customer goes for display quality, clarity of display and software used in model.  4k-8k Rs range model are good in market.  Camera clarity in megapixels, at least 2 MP should be there but 3.2 MP is preferred.  At least 1GB memory should be in model, extendable memory should be there.  Bluetooth is must.  Recorder should be present in model.  Internet/ GPRS facility should be in model.  Multimedia phones are also in demand.  Good battery backup. 39
  • 40.  Extra accessories like head phones, data cables CDs should provide by company.  Free ringtones, songs and software should provide by dealers. Dealers Suggestions to promote CDMA handsets Handsets:  Quality of handsets should available.  Variety of handsets should available in CDMA.  Good looking, stylish, attractive handsets like sony & Nokia should available in CDMA.  New model should launched by the company, frequently.  Battery backup and handset functionality should improve.  Voice quality should improve.  Change/improve the quality of software; come up with good quality of software.  More number of 4k-5k Rs model should available  Song as ring tone should come in CDMA basic models.  Camera, music, recorder, memory should also come in 3k-4k Rs range.  Camera should also come in basic handsets  Handsets should use in both CDMA as well as GSM network. 40
  • 41.  Every operator comes up with variety of handsets.  Price should reduce. Offers / Marketing  Company should provide free ring tones, wallpapers, and softwares in CDMA.  Company should provide extra accessories like headphone, data cable & CDs.  Create awareness about CDMA brands.  Advertisement, branding is requiring of CDMA handsets.  Large advertisement board is required.  Offers, consumer offers, festive offers.  Improve the distribution of CDMA handsets. 4. MARKETING VIEW Competitors Analysis Following are the main competitors of Samsung CDMA Mobile: o LG o Huawei o Haier 41
  • 42. o Micromax o Nokia o Spice o Intex o HTC o I-Star Competitor’s Model Analysis 1. Product LG 3100 : Name CDMA Handset FM Radio Speaker 32 Polyphonic Ringtones Long Battery Life, 1 e-mail 3 Way Calling and more.. Category : CDMA Handsets Brand : LG Price Range : Rs. 1710* ( * approx. price) 42
  • 43. 2. Product LG 3500 : Name CDMA Handset LG 3500 Mobile phone comes with Reliance have the distinguish Features as good battery backup ... Category : CDMA Handsets Brand : LG Price Range : Rs. 999 to 1,999 3. Product LG RD 3000 : Name , CDMA Handset Stylish looking bar type color phone High capacity battery 32 polyphonic rington ... [ Read More ] [ Specifications ] [ Description ] Category : CDMA Handsets Brand : LG Price Range : Rs. 1199* ( * approx. price) 43
  • 44. 4. Product : LG VX8300 Cellular Phone, CDMA Handset Name This slim and sleek VX8300 is built for serious mobile fun. Exchange vCards ... Category : CDMA Handsets Brand : LG Price Range : Rs. 3200* ( * approx. price) 5. Product : LG Chocolate VX8500 Cellular Phone CDMA Handset Name LGs mobile treat, the VX-8500 Chocolate offers minimalist-inspired style and more… Category : CDMA Handsets Brand : LG Price Range : Rs. 12000* ( * approx. price) 44
  • 45. 6. Product name : Haier Sumukha CDMA Features: Network CDMA 800 MHz Dimensions 100x42x15 mm Weight 80grams Type 1.5'', 65K CSTN Size 128x128 pixels Phonebook 200 entries Call Records 10 missed, 10 dialled, 10 recevied calls Messaging SMS, MMS Clock Yes Alarm Yes Games Yes T9 Dictionary Stand-by Up to 115.00hrs Talk time Up to 3 hrs 00 min 5 Force Model 45
  • 46. - - Threat of new entrants [ High ] There are lot of competition in Indian telecom market ,Chinese mobile companies are also entering into the sector. In Indian telecom market having more than 400+ million subscribers with 42% of teledensity, still there is lot of potential is remaining. - Bargaining power of suppliers [ Low] As we know that there is very difficult to switch in B2B Market. - Bargaining power of buyers [ High] Indian market is very price sensitive market. Awareness about the mobile is very high so that bargaining power of the customer is also very high. - Threat of substitute products [ High ] GSM is as a substitution for the CDMA mobile so threat of substitute is high. 46
  • 47. - - Rivalry among competing firms [ High ] There if very high competition among the mobile equipment manufacturer. Chinese companies also coming in Indian market. SWOT Analysis  SWOT analysis of Samsung CDMA mobile:  Strength: o Samsung is well known brand in electronic market. o Samsung is in both direct market as well as open market in mobile segment. o Collaborations with TATA, MTS (SSTL), Virgin mobile. o Large range of CDMA mobile product from 1K to 14K. o Strong National distribution channels.  Weakness: o Samsung’s late entry in Indian mobile market. o Samsung is not market leader in mobile market segment.  Opportunity: o Tele density is increasing in Indian telecom market. o CDMA mobile would play a major role in rural penetration. o 3G is coming into existence. o Falling ARPU’s of Indian telcos. o Foreign telcos are coming into Indian market would be opportunity for direct market. 47
  • 48.  Threats: o Popularity of GSM mobile. o Competitors are focusing only in telecom segment. o Entry of foreign player in mobile equipment market. o Threats from Chinese mobile market 5. CONCLUSIONS & RECOMMENDATIONS Conclusions  CDMA market has 30-35% of total mobile market share.  CDMA sales are increase day by day.  Samsung Market share is high among all the brands.  Market share of LG is very much similar to Samsung in mobile stores.  CDMA mobile market is very price sensitive market.  Maximum selling of 1k-2k Rs lower range handsets.  A handsets restriction is biggest problem in CDMA segment.  Customers are very much aware about every feature of handsets.  In CDMA mobile market there are limited player are available.  There are very close competition among some players of handsets manufacturer.  In CDMA very limited handsets is available.  In CDMA variety of handsets is required.  In CDMA handsets battery problem is biggest problem.  Price of CDMA handsets is high as compare to GSM handsets.  Basic handsets + FM + speaker are most demand model in operator handsets. 48
  • 49.  Camera (>=2 mp), memory (>=1GB), slide model are important factor that influence the customer.  Samsung is most preferred brand among the consumers.  After sales service of Samsung CDMA mobile is average. Recommendations  Variety of handsets should available.  Company should provide free ring tones, wallpapers, and softwares in CDMA.  Company should provide extra accessories like headphone, data cable & CDs.  Create awareness about CDMA brands.  Advertisement, branding is requiring of CDMA handsets.  Large advertisement board is required.  Offers, consumer offers, festive offers.  Improve the distribution of CDMA handsets.  3k-5k Rs model should available in more variant.  More variant of slide phones and touch screen phones should available.  Touch screen phones should come in 8k Rs range.  Any new feature should come in CDMA.  Price should less then GSM phones.  Camera, Bluetooth, memory, music should come in 3k-3.5k Rs.  Camera also comes in 2k Rs mobile.  Data cable comes in 2k Rs range.  Display size should bigger than existing size. 49
  • 50.  New functions should come in basic handsets.  Good quality of software should come in operator handsets.  At least some memory should also give to the operator handsets  Only basic model should come in 700 Rs. QUESTIONNAIRE CDMA Mobile Market Survey Retailer Name___________________________________________________________ Location______________________ Date______________ Time__________________ Type MBO WW WWE TVH TVS Modern Trade 1. a. Total Handset Sales : ____________________________ b. CDMA handset sales, total : _______________________ c. CDMA Handset Sales share in % of the following brands LG_______ Spice ______ Samsung_______ Micromax____________ Huawei____________ ZTE_______________ Others__________________ 50
  • 51. 2. Please rank the following CDMA brand in terms of best consumer demand for the brands. LG____, Samsung___, ZTE_____, Huwaei_____, Spice_____, Micromax_____, Haier_____ Others ________ 3. What are the key Challenges that you are facing in CDMA? 4. What are the key motivators for you to sell particular CDMA handsets? Also Rank the order of importance? Operator Handsets Open Handsets 5. What are the key factors that motivate a consumer to buy a particular brand of CDMA Handset? Also Rank the order of importance. 6. What are the key factors looked in handsets by a consumer who upgrades in CDMA? 8. Please rank the brands on the below parameters 7. What are the key factor that consumer consider whileservice a first time handset Brand Consumer pull After sales making Distribution purchase from an operator. 51
  • 52. LG ________ ___________ ___________ Samsung ________ ___________ ___________ Huwaei ________ ___________ ___________ ZTE ________ ___________ ___________ Spice ________ ___________ ___________ Haier ________ ___________ ___________ Other 9. What are the key steps any brand should take to increase the sales of CDMA handsets from your shop? Thanks for your cooperation. Bibliography www.samsung.com www.themobilestore.com www.mobileindia.com www.spssinc.com www.compareindia.com Philip Kotler Marketing Management Naresh Malhotra Marketing Research Tull & Hokins Marketing Research. 52
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