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Mobile Samir


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mobile strategies use by Mobile companies

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Mobile Samir

  1. 1. MS Marketing (Session 2007-2009) Telecom Industry – Mobile Handsets Submitted To: Prof. Jagan Mohan Submitted by: Samir Anand (0911)
  2. 2. HISTORY <ul><li>Telephone history begins at the start of human history. Man has always wanted to communicate from afar. People have used smoke signals, mirrors, jungle drums, carrier pigeons and semaphores to get a message from one point to another. But a phone was something new. Some say Francis Bacon predicted the telephone in 1627, however, his book New Utopia only described a long speaking tube. A real telephone could not be invented until the electrical age began. And even then it didn't seem desirable. The electrical principles needed to build a telephone were known in 1831 but it wasn't until 1854 that Bourseul suggested transmitting speech electrically. And it wasn't until 22 years later in 1876 that the idea became a reality. But before then, a telephone might have been impossible to form in one's consciousness. </li></ul>
  3. 3. Contd… &quot;We picture inventors as heroes with the genius to recognize and solve a society's problems. In reality, the greatest inventors have been tinkerers who loved tinkering for its own sake and who then had to figure out what, if anything, their devices might be good for.&quot; Jared Diamond. On March 10, 1876, in Boston, Massachusetts, Alexander Graham Bell invented the telephone. Thomas Watson fashioned the device itself; a crude thing made of a wooden stand, a funnel, a cup of acid, and some copper wire. But these simple parts and the equally simple first telephone call – &quot;Mr. Watson, come here, I want you!&quot; With these historic words Alexender Graham Bell called to his assistant Thomas Augustus Watson over the so-called “Telephone”,and “ AN INDUSTRY WAS BORN”
  4. 4. Contd... &quot; . . . an inspired black-haired Scotsman of twenty eight, on the eve of marriage, vibrant and alive to new ideas.&quot; Alexander Graham Bell : The Life and Times of the Man Who Invented the Telephone : Intrigue aside for now, the story of the telephone is the story of invention itself. Bell’s original telephone which was invented on 9 th October 1876 In cooperation with Thomas Watson.
  5. 5. HISTORY OF CELL PHONES <ul><li>In 1973 Martin Copper came up with Motorola. He took the project and let the people of New York see it. In 1977 the first cell phone was made in Chicago . When it first came out 2000 people was given a free trial. Then other places started to make cell phones. When to cell phone first came out they were huge. The people did not know how to make the phone any more compact. In 1988 the big company's started to make cell phones. There were over 54 places all over the world. </li></ul>
  6. 6. Contd… Cell Phone Evolution
  7. 7. TECHNOLOGY <ul><li>In starting, the analogue system was followed for communication. But it had several shortcomings as </li></ul><ul><li>one of it is a serious lack of interoperability. </li></ul><ul><li>Mobile telecommunication technologies have developed in successive generations. The first generation (1G) appeared in the 1950’s. The second generation (2G) or GSM technology is used massively, but challenged globally by the next (third) generation (3G) technologies. This sequence of generations is characterized by increasing capacity (higher transmission speeds) and richer content of the message. </li></ul>
  8. 8. Contd… <ul><li>In today’s ongoing time basically 2-types of technology is being used. These are 2G and 3G. </li></ul><ul><li>In 2G there are GSM and CDMA(2000-1X). </li></ul><ul><li>And in 3G there are WCDMA and CDMA(2000-1X-DO). </li></ul>
  9. 9. Wireless Access Mapping to this Segmentation <ul><li>Voice-only </li></ul><ul><ul><li>2G (GSM, cdma2000 1X) </li></ul></ul><ul><li>Messaging and limited data services </li></ul><ul><ul><li>2G (GSM, cdma2000 1X) </li></ul></ul><ul><li>Advanced wireless </li></ul><ul><ul><li>2G (GSM, cdma2000 1X) </li></ul></ul><ul><ul><li>3G (WCDMA, cdma2000 1X-EV-DO) </li></ul></ul><ul><li>High-end business/multimedia </li></ul><ul><ul><li>3G (WCDMA, cdma2000 1X-EV-DO) </li></ul></ul><ul><ul><li>Complimentary access (WLAN a definite, maybe WiMAX) </li></ul></ul>
  10. 10. So Many Technology Choices WiBRO 2006 2007 2008 2009 3G+HSDPA 3.9G 2005 WiMAX (fixed) 3GPP2 systems (1X, EV-DO, nxDO, “Phase II” Evolution) Flash-OFDM 3G+HSUPA WiMAX (mobile) 802.20 WLAN Hotspots 1. 2. 3. 4. 5. 6.
  11. 11. OUTLOOK • Mobile devices are moving towards a dominant platform with broad consensus on supported features • Browsers are moving towards a “standards-based application container” • Local device features and capabilities are converting into services as well, simplifying access to local functionality • Mobile devices are becoming part of the global computing, data and services grid as servers as well as clients
  12. 12. Industry Overview Global Cell Phone Market
  13. 13. Discussions (continued) <ul><li>How much would it cost? Approximately, $400.00. </li></ul>50.00 Breakout Board 20.00 Passive components 8.00 Speaker 10.00 Enclosure 12.95 Battery 3.00 Microphone 2.64 Buzzer 7.44 Keypad Encoder 25.00 Keypad 17.00 LCD 12.95 Antenna 109.95 GM-862 114.00 Gumstix Connex 200
  14. 14. At the start of the decade, India was pretty much a telecom backwater. No more. Last year it actually grew at a faster rate than China for the first time in new mobile phone connections—and it is set to expand more than three times as fast as the mainland in 2007. According to a new study by London-based research firm Wireless Intelligence. Last year, the number of mobile connections in India more than doubled to 142.2 million and that figure is expected to expand 48% to roughly 211 million by the end of 2007. 74% of FDI is allowed in INDIA which has attracted more foreign players to invest more and more. INDUSTRY OVERVIEW IN INDIA
  15. 17. Karol Bagh market area of Delhi, India 200 + small indoor shops, and 100+ outdoor market stalls
  16. 18. this one building, approx. 60+ small shops spread over 4 stories wholesaling phone accessories and repair equipment small workshops actively repairing phones, and offering training
  17. 19. Market Trends <ul><li>Today Mobile market is emerging at a very fast and global pace. </li></ul><ul><li>Now a days Mobiles are used not only for communication but it has become a multi utility device. E.g.... It is used for office use, entertainment use,etc. </li></ul><ul><li>This industry has bring the world together in one span. </li></ul>
  18. 20. Changing Trends <ul><li>Many people think cell phone is the best thing since the sliced bread. Right? </li></ul><ul><li>It is an excellent hacking and application platform. However, we are not able to exploit its full potential. </li></ul>Grameen Phone Of course, Paris Hilton Cyber Shepherd
  19. 21. Socio-economic trends • Faster communications and information processing change our ways to cooperate • Towards better utilization of competences and resources in society at large • From standalone business models to networked business organizations • From products to services • Faster feedback cycles Services Competences Networks Ecosystems
  20. 22. ENVIRONMENT <ul><li>Some of the external macro environmental factor which affects purchases of cell phones are: </li></ul><ul><li>Demographics:- The changes in it affects the purchases of cell phones on the basis of size, distribution, gender, educational level, standard of living, etc. </li></ul><ul><li>Political:- It includes domestic and international politics. As in the case of cell phones our government has allowed 74% of FDI in telecom sector. </li></ul><ul><li>Economic:- This factor states that what is the economic strength of the customer and is he willing to buy the cell phone or not. </li></ul><ul><li>Socio-Cultural:- A consumer buys a cell phone on the basis that what he has got the feedback from his surrounding environment. </li></ul><ul><li>Technology:- Generally cell phones requires a good and better technology so that the costs could be cut down. R&D is the best method to determine the price, promotion, distribution of the handsets. </li></ul>
  21. 23. CONSUMER BUYING BEHAVIOR <ul><li>Consumer buying behavior depends on Marketing Offer + Environment. </li></ul><ul><li>The 4P’s of cell phones are:- </li></ul><ul><li>Type of products (models) which are offered by the company. </li></ul><ul><li>Price of the models of the handsets are according to the features or configuration offered. </li></ul><ul><li>Depends upon the place weather the type of cell phones suits the market or not. </li></ul><ul><li>Today every company is promoting their products in various ways. For E.g.. Promoting through Advertisements on TV's & radios , Hoardings, Newspapers, Internet, etc… </li></ul>
  22. 24. Distribution channel Illustration Advertising of new mobile phone models Mobile phone catalogue Advertising of new Nokia and other mobile phones Phone subsidies by operators, in store sales force Promotion of state-of-the art Nokia equipment Mobile phone catalogue Only Nokia USA Support, games, cartoons, ring tones Profile evaluator, phone comparison, product catalogue Support, games, cartoons, ring tones Nokia.xy (Country websites) Telecom operators Club Nokia (Web site per nation) Nokia Concept Stores CHANNEL Awareness Evaluation Purchase After sales Nokia Snowboard World cup, Beach volleyball Nokia Events Personalized support, games, ring tones, editors Qualified Nokia sales personnel In store sales of Nokia equipment In store sales of Nokia and other equipment Promotion of state-of-the art Nokia equipment Courses on the use of Nokia phone features Advertising of new mobile phone technology & models Advertising of new mobile phone technology & models Purchase of games, images, ring tones Support Support, games, SMS, MMS, ring tones Nokia Academy C U S T O M E R B U Y I N G C Y C L E R A N G E O F C H A N N E L S
  23. 25. FACTORS AFFECTICNG PURCHASING BEHAVIOR <ul><li>Socio-culture factors affects the purchasing behavior of consumers for cell phones. Basically social class affects the purchases decision of the consumers depending upon occupation, income, high/middle/low class. </li></ul><ul><li>Groups also influences the buying decision. As cell phone purchase includes cognitive buying. </li></ul><ul><li>Internal Stimuli:- A consumer analyzes that what is the basic need for a cell phone. </li></ul><ul><li>External Stimuli:- People purchases cell phones just to satisfy themselves as it gives a standard and status in the society. </li></ul>
  24. 26. Contd... <ul><li>Age & life-cycle of cell phones:- </li></ul><ul><li>Basically cell phone companies target on </li></ul><ul><li>Youth (students) </li></ul><ul><li>Middle aged (working & business class) </li></ul><ul><li>Old aged consumers. </li></ul><ul><li>In accordance with their incomes and standards. </li></ul><ul><li>Consumers follow Cognitive and up to some extents Impulsive buying (convenience due to plastic money). </li></ul>
  25. 27. Contd… an E.g. <ul><li>Mere paas gaadi hai, bangla hai, daulat hai... tumhare paas kya hai? </li></ul><ul><li>Mere paas latest mobile hai. You know the type. Youngest kid in the office, but the guy with the coolest cell phone. And not necessarily funded by Daddy Big Bucks. “I blew my entire salary on this phone” is an increasingly common story. Yet, there is no permanent purchase satisfaction. The owner of a Nokia N70 is already eyeing an N91 </li></ul>
  26. 28. Sharme (LifePod) Mobile device – Recording everything What we say What I hear What I feel etc . Where I am What I write What I see USES AND NEED FOR MOBILE PHONES
  27. 29. <ul><li>After making a decision of purchasing a cell phone a consumer also focuses on </li></ul><ul><li>POST PURCHASE EVALUATON. </li></ul><ul><li>As the cell phones are electronic gadgets it requires maintenance. </li></ul><ul><li>It requires Installation of softwares also because of a numerous features available in the market. </li></ul><ul><li>A proper servicing is also required. </li></ul>
  28. 30. minimal street customer care center = flat surface + screwdriver + new component + knowledge
  29. 31. Features or characteristic present in cell phones <ul><li>Apart from receiving and making calls and Sms following features are available. </li></ul><ul><li>Camera </li></ul><ul><li>Video Recording </li></ul><ul><li>Bluetooth </li></ul><ul><li>Infrared </li></ul><ul><li>Mp3 </li></ul><ul><li>Radio </li></ul><ul><li>Video Conferencing </li></ul><ul><li>Windows (in some ranges) </li></ul>
  30. 33. SEGMENTATION <ul><li>Cell phone companies have segmented their ranges in 3 groups: </li></ul><ul><li>Low-End consumer groups ( cell phone models pricing between Rs 2000 – 6000) </li></ul><ul><li>Middle-End consumer groups (cell phone models pricing between Rs 7000 – 15000) </li></ul><ul><li>High-End consumer groups (cell phone models pricing between Rs 16000 – 35000) </li></ul>
  31. 34. Enterprise/High-end Device Categorization Does this kind of categorization work For South Asia? Voice Advanced Wireless Services (e.g. E-mail) Messaging and Limited Wireless Services High-End Business End-User Needs Mobile Device Communicators Voice-centric devices Smartphones & messaging devices
  32. 35. TARGETING <ul><li>Basically, cell phones today has become a fashion and standard </li></ul><ul><li>Of social status for everyone. Its no more only a device of communication but it has become a source of entertainment and work. </li></ul><ul><li>So the cell phone companies are targeting on almost every class of consumers and in its minimal cost it is trying to give the best features. </li></ul><ul><li>But the main emphasis is given on the middle class of consumers as INDIAN market is a middle class market. (This statement has been given by the CEO of NOKIA-INDIA) </li></ul><ul><li>And the next comes youngsters (aged between 21 – 30) </li></ul>
  33. 36. POSITIONING <ul><li>Here in this stage companies like Nokia, SonyEricssion, Motorola, Samsung are trying to </li></ul><ul><li>Position there product in the eyes of consumers. </li></ul><ul><li>They are trying to build up an image while getting their advertisements done by recognized faces like film stars. For E.g.. For Motorola-Abhishek bachhan, Sony Ericssion-Hritick Roshan, Samsung-John Ibraham. </li></ul><ul><li>The companies are offering a variety of models available in all ranges (as per the concept of product differentiation) </li></ul>
  34. 37. COMPETITION <ul><li>Today every product is facing competition with each other and with the products of other types also. </li></ul><ul><li>There are 4 types of competition faced by any company. </li></ul><ul><li>Generic </li></ul><ul><li>Form </li></ul><ul><li>Industry </li></ul><ul><li>Brand </li></ul>
  35. 38. COMPETITIVE ANALYSIS Competitive analysis Bargaining power Bargaining power threats threats Rivalries among the Barriers to entries [Porter, 2001] Competitive forces competitors Substitute products (services) Customers (channels) New entrants Suppliers
  36. 39. COMPETITIVE POSITIONS <ul><li>MARKET LEADER – NOKIA </li></ul><ul><li>MARKET CHALLENGER – SAMSUNG, MOTOROLA. </li></ul><ul><li>MARKET FOLLOWER – SONY ERICSSION, LG. </li></ul><ul><li>MARKET NICHER – APPLE’S I-PHONES. </li></ul><ul><li>NEW PLAYERS – FLY, BIRD. </li></ul>
  37. 40. COMPETITIVE STRATEGIES <ul><li>As Nokia is the market leader in the cell phones market it has one basic strategy it attacks on the Telecom sector of the country which are still in its developing stage instead of being indulged in already developed country. </li></ul><ul><li>Nokia and Sony Ericssion have adapted Growth Strategy, Offensive strategy (specially Guerilla). </li></ul><ul><li>Motorola being the challenger for Nokia is playing Defensive. </li></ul><ul><li>In CDMA section the market leader is Samsung (adapted Growth Strategy, offensive) and LG (adapted Growth Strategy and Defensive) is the largest challenger. </li></ul><ul><li>Followers are Panasonic, Benq-Siemens, Mithubhishi, etc (these have adopted Defensive strategy). </li></ul><ul><li>Followers in the CDMA section is ZTE-Classic (It has adopted Growth Strategy and is been into Guerilla war)—E.g.:-RELIANCE , Spice, etc. </li></ul><ul><li>Companies like Apple, I-Mate, Virtue are market nichers in INDIA and are playing safe. </li></ul>