A

PROJECT REPORT ON
MARKETING STRATTEGIES OF TOP
FIVE COMPANIES OF

CELL PHONE
for the Partial fulfillment the
Degree of
MASTER OF BUSINESS
ADMINISTRATION
FROM DEPARTMENT OF BUSINESS
MANAGEMENT

SESSION -2013-15
UNDER GUIDANCE

SUBMITTED BY

MRS. NEHA DUBEY

SHISHUPAL RAJPOOT

MBA IST SEM.

ROLL NO.

PREFACE
Preparing a project of this nature is an arduous task and I was
fortunate enough to get support from a large number o persons. I wish to
express my deep sense of gratitude to all those who generously helped in
successful completion of this report by sharing their invaluable time and
knowledge.
It is my proud and privilege to express my deep regards to
Respected HOD Dr. Pramesh Gautam, Head
of Department of Business Management, SWAMI VIVEKANAND
UNIVERSITY , SAGAR for allowing me to undertake this project.
I feel extremely exhilarated to have completed this project under the
able and inspiring guidance of MRS. NEHA DUBEY he rendered me all
possible help me guidance while reviewing the manuscript in finalising
the report.
I also extend my deep regards to my teachers, family members,
friends and all those whose encouragement has infused courage in me to
complete to work successfully.

SHISHUPAL RAJPOOT
MBA 1 ST SEM..

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number o persons. I wish to express my
deep sense of gratitude to all those who generously helped in successful
completion of this report by sharing their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to Respected ,
Head of Department Dr.Pramesh Gautam, Department of Business
Management , SWAMI VIVEKANAND UNIVERSITY SAGAR for allowing
me to undertake this project.
I feel extremely exhilarated to have completed this project under the able
and inspiring guidance of He rendered me all possible help me guidance while
reviewing the manuscript in finalising the report.
I also extend my deep regards to my teachers , family members , friends
and all those whose encouragement has infused courage in me to complete to
work successfully.

SHISHUPAL RAJPOOT
MBA IST SEM.

DELCLARATION BY THE CANDIDATE

Date :
I declare that the project report titled " MARKETING STRATEGY OF
TOP FIVE BRANDS OF CELL PHONE" on Market Segmentation is nay
own work conducted under the supervision of MRS. NEHA DUBEY
Department of Business Management, SWAMI VIVEKANAND UNIVERSITY
SAGAR To the best of my knowledge the report does not contain any work ,
which has been submitted for the award of any degree , anywhere.

SHISHUPAL RAJPOOT
MBA IST SEM.

CERTIFICATE
The project report titled " " MARKETING STRATEGY OF
TOP FIVE BRANDS OF CELL PHONE " been prepared by SHISHUPAL
RAJPOOT MBA IST SEM., under the guidance and supervision of MRS.
NEHA DUBEY for the partial fulfillment of the Degree of MBA.

Signature of the

Signature of the

Signature of the

Supervisor

Head of the

Examiner

Department

CONTENTS

 PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION
CHAPTER I INTRODUCTION
ABOUT PROJECT
AN INSIGHTOF COMPANY HISTORY
MISSION AND VISION
STANDING POSITION OF COMPANY
BRAND VALUE
CHAPTER II OBJECTIVE OF THE STUDY
CHAPTER III RESEARCH METHODOLOGY
CHAPTER IV MARKET ANALYSIS
OVERVIEW
BRANDS
CHAPTER V CONSUMER GROUPS
CONSUMER BEHAVIOUR
CHAPTER VI PRODUCT PROFILE
PLAN FOR PRODUCT MIX
PRODUCT RANGE
CHAPTER VII MARKETING STRATEGY
PRICING
POSITION AND DISTRIBUTION
PROMOTION
CHAPTER VIII ABOUT COMPETITORS
COMPETITOR FOR PRODUCT
PRICE OF COMPETITOR PRODUCT
CHAPTER IX DATA ANALYSISAND INTERPRETATION
CHAPTER X LIMITATION
CHAPTER XI CONCLUSION & SUGGESTION
BIBLIOGRAPHY
QUESTIONNAIRE

CHAPTER - 1
Introduction
Background

The Indian telecommunication industry, with about 525 million mobile

phone connections (Dec 2009), is the third largest telecommunication network
in the world and the second largest in terms of number of wireless connections.
The Indian telecom industry is one of the fastest growing in the world and is
projected that India will have 'billion plus' mobile users by 2015. Projection by
several leading global consultancies is that Indias telecom network will
overtake Chinas in the next 10 years. For the past decade or so,
telecommunication activities have gained momentum in India. Efforts have
been made from both governmental and non-governmental platforms to
enhance the infrastructure. The idea is to help modern telecommunication
technologies to serve all segments of Indias culturally diverse society, and to
transform it into a country of technologically aware people.
The Mobile telecommunications system in India is the second largest in
the world and it was thrown open to private players in the 1990s. The country
is divided into multiple zones, called circles (roughly along state boundaries).
Government and several private players run local and long distance telephone
services. Competition has caused prices to drop and calls across India are one
of the cheapest in the world. The rates are supposed to go down further with
new measures to be taken by the Information Ministry. The mobile service has
seen phenomenal growth since 2000. In September 2004, the number of mobile
phone connections has crossed fixed-line connections. The dominant players
are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL.
There are many smaller players, with operations in only a few states.

CHAPTER -II
OBJECTIVES OF THE STUDY
The main objectives that the research is focusing is to find out
i.

To understand user preferences with respect to the features and the

service quality

ii.

To study the factors contributing to the new subscription

iii.

To study the competitiveness of the mobile service providers as per new

advancements in the technology

iv.

To study the factors affecting the service quality and the overall
satisfaction level among the user

v.

To study the market share of various mobile/ cell phone companies

CHAPTER - III
RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the overall
operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was designed
in accordance with our mentor in Ketchup. I chose a sample of about 50
corporate customers
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedures. It is a descriptive cross sectional design .It is the
conceptual structure with in which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study
by which it is clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research.
Sampling Plan

Sampling plan is a distinct phase of research process. In this stage I have to

determine who is to be sampled, how large should be the needed sample and
how sampling unit is to be selected.
Population
In my research, I have defined my population as a complete set of customers of
Sagar City.
Sample Survey
As compared to census study, a sample study has been conducted by us because
of:
Wide range of population, it was impossible to cover the whole
population
Time and money constraints.
Sample Unit.
In this survey I took the list of customers from the dealers of cell phone.
Sampling Technique
Sampling technique implies the method of choosing the sample items, the two
methods of selecting sample are:
Probability method.
Non-probability method.
Probability method is those in which every item of the universe has an equal
chance of the inclusion in the sample. Non-probability methods are those that
do not provide every item in the universe with known cause of being included
in the sample. The selection process is partially subjective.
For my study, I employed the Non-probability sampling technique, in which I
got the data of the customers from the dealer of cell phone.

CHAPTER - IV

MARKETING ANALYSIS
The real transformation came in the scenario of Indian telecom industry after
announcement of National telecom policy in 1994. The mobile services were
commercially launched in India in August 1995. In the initial 56 years the
average monthly subscribers additions were around 0.05 to 0.1 million only and
the total mobile subscribers base in December 2002 stood at 10.5 millions.
However, after the number of proactive initiatives taken by regulator and
licensor, the monthly mobile subscriber additions increased to around 2 million
per month in the year 2003-04 and 2004-05. In the last few years there has been
a huge exponential growth with addition of about 10 to 15 million subscribers
per month to customer base.
12. Current scenario of Mobile phone industry:
Following are the highlights of mobile phone industry in India as on December,
2009:
11. The penetration of mobile phones stands at about 30%.
22. 81% of mobile users are in urban area.
33. Indias rural teledensity stands at about 12.6%
44. India has about 517 million subscribers by December, 2009.
55. It is forecasted that sales of mobile handsets in rural India will grow at
CAGR of around 17% from 2009 to 2012
Above figures clearly indicate that although mobile phones might have made
significant inroads into the urban market & urban market may start moving
towards saturation but, still lot of potential is to be explored in the rural
segment.
Market Share of different Manufacturers as on Dec-2009 is given below:
As evident from above figures, Nokia is a major player in the Indian mobile
industry today.
Also to understand the satisfaction level which users of above brands express,
we look at a consumer satisfaction survey, the results of which are shown
below. The survey was done on Indian Urban mobile phone users with Sample
size of N=5,775.
The source of this data is website: www.vitalanalytics.in
Model

Users Likely to recommend

LG
Motorola

57.6%
41.0%

Nokia
68.6%
Samsung
55.7%
Sony-Ericsson 65.3%

The result shows Nokia users are the most satisfied with their product followed
by Sony-Ericsson and LG.
1Marketing Strategy: A holistic view (Nokia, Samsung):
Nokia:
Nokia, as a manufacture of mobile communication devices, was succeeded in
administrating marketing strategies in India markets. The reason is that Nokia
delivers better products which cater to the needs and preferences of Indian
consumers.
Nokia - Made in India A detailed analysis
In April 2005, Nokia India, a subsidiary of Finland-based Nokia, announced
that it was setting up a manufacturing facility for mobile devices in Chennai,
the state capital of Tamil Nadu in southern India. Nokia planned to invest US$
100-150 million in the facility, where the production was expected to begin in
the first half of 2006.
Pekka Ala-Pietil, President and Head of Customer & Market Operations,
Nokia Corporation said, Establishing a new factory in India is an important
step in the continuous development of our global manufacturing network.4
India was ideal for Nokia's new production facility. Each mobile handset has
more than 400 parts and the average production capacity of each manufacturing
unit of Nokia is around 20 million units.
This level of manufacturing involves a total of 8 billion components per
annum, requiring strong logistical support. Nokia's manufacturing facility
needed to be located close to a major international airport or sea port for quick
supply of components. India met all these requirements, and also enjoyed cheap
manpower costs and proximity to the rapidly growing Asia Pacific markets.
Besides, Nokia was the market leader in mobile communication devices in
India. The company has been carrying out sales & marketing, customer care
and research & development activities in the country. Nokia considers India to
be one of its most important markets. The company's Code Division Multiple
Access (CDMA) 5 facility is located in Mumbai and provides software and
technical support to CDMA consumers in India and other Asia Pacific
countries. In 2004, Nokia was chosen as the most respected consumer
durables company' by Businessworld 6. The magazine wrote, This Finnish

company's debut at the top of the heap says two things.

The Future Prospects
According to industry analysts, by 2010, the mobile phones industry in India
will be driven by voice, multimedia and mobile services for organizations. The
teledensity in India was estimated to increase to 18.2% by March 2009, with
mobile subscription rising to 148.77 million by that time. In many instances,
the cell phone has become the only basic telephone link of a
household/enterprise in India, rather than a landline phone. It was turning out to
be more economical and efficient than fixed line telephones. So, there was
great scope for further expansion with reduction in the cost of ownership
Samsung's Strategy to Gain Market Share in The Indian Mobile Phone
Market
The Samsung management has initiated a market-mapping exercise to get into
our fold distributors who have relevant knowledge of the market, credibility, a
good distribution network and will therefore contribute in strengthening
Samsung's reach in the market, the new distribution strategy would take its
penetration level in the market from the current 55 percent to 85 percent by the
end of the year.
On the retail front, it was taking initiatives to increase the number of retailers
enrolled as Samsung Mobile Privilege Partners (SMPPs) from around 100 in
2007 to around 400 by the end of the year. Single and multi-brand retailers had
shown an interest in becoming SMPP. In the same month, the company
launched five new mobile phone models and said that it would launch another
13 by the middle of the year. The models that were launched included
multimedia phones, phones for corporate customers, and a comparatively lower
priced model aimed at a bigger chunk of the market. The company as of early
2008, its mobile phones were priced between Rs. 1,700 and Rs. 28,000, but that
the company would launch more expensive mobile phones in the future

Recently to have an impact on international prospective mobile phone users,

Samsung has signed up Didier Drogba, playing in Chelsea Football Club, as its
2008 Mobile Phone category brand ambassador.
As part of this partnership, Drogba will appear in Samsung Mobile adverting
campaigns for a period of one year, and will also make public appearances to
promote Samsungs products and corporate activities.
Extending our association with Chelsea FC, we are now thrilled to partner
with Drogba as Samsungs brand ambassador, says Chi Won Suh, CEO,
Samsung Middle East and Africa region. Africa is a key market for Samsung
Electronics, with immense growth potential, and we are confident that our
association with an internationally and locally acclaimed football star like
Drogba will bring us closer to the football loving population throughout the
African continent.
Football sponsorship is one of the pillars of Samsungs sports marketing
strategy. It is derived from the belief that sport especially football unites people
of all ages,

Samsung bada to rival Android, Linux

Samsung entered into the mobile OS arena with bada . The software, whose
name is based on the Korean for "ocean," is designed to be open and will
compete directly against rivals like Android or LiMo. It will be based on
universal standards and won't consider even core aspects of the OS off-limits:
developers can not only use contacts, the dialer and other utilities but extend
them with new features of their own.
Most details are left vague, but bada will have a central app store. Carriers will
also have the option of customizing the OS to suit their own tastes. Samsung
expects the very first device using bada to show in the first half of 2010 along
with the initial app store. More phones should be ready by the second half of
that year while the app store will expand to 30 different countries, including
key countries in Europe. A more formal unveiling is due in the UK for
December and will be followed by first looks for developers both in December

and in January. The news backs analyst claims of Samsung moving to its own
platform

and adopting modern open platforms, including bada. If fully

representative, it also signals the likely ends of Symbian and Windows Mobile
at Samsung, as the forecast would have Symbian gone entirely by 2011 and
Microsoft's OS at just 20 percent by 2012 where it makes up 80 percent of
Samsung phones today. Such a gesture will also render closed platforms like
OS X iPhones and Windows Mobile the relative minority in numbers, though
not necessarily market share.
Recent happenings were the Samsung Corby, which is a full-touch handset that
places users at the centre of the social media revolution with full support for a
wide range of social networks. The new mobile compliments the Companys
existing touch screen strategy touch for every lifestyle by broadening the
market and targeting the youth audience.

CHAPTER - V
CONSUMER GROUPS
.Importance of consumer satisfaction
The needs to satisfy customer for success in any commercial enterprise isvery
obvious. The income of all commercial enterprise is derived from the payments
received for the products and services supplied to its customers. If there is no
customer there is no income and there is no business. Then the coreactivity of
any company is to attract and retain customers. It is therefore nosurprise that
Peter Drucker the renowned management Guru, has said to satisfythe
customers is the mission and purpose of every business.Satisfaction of
customer is essential for retention of customers and for continuous sales of the
products

and

services

of

the

company

to

customers.

Thisestablishes the needs for and the importance of customer satisfaction. Thes
atisfaction of consumers is different from one to another. Became, eachconsum
er has the different behaviour in their life. So, the marketer satisfy theconsumer,
he must very well know the behaviour of consumer.
Consumer behaviour:
The term consumer behaviour may be defined as the behaviour thatconsumer
displays in searching for purchasing, using, evaluating, producing,services and
ideas which they expect will satisfy their needs. In other words, Itis a study of
physiological, social, physical, behaviours of all potential customer as they
become aware of evaluation, purchase and consumption and tell other about
products and services

CHAPTER - VI
PRODUCT PROFILE
LG

LG Electronics Korean Consumer Electronics & Home Appliance

Manufacturer, have started mobile appliance business since 1996. Formerly
known as LG Information & Communication Co. (LGIC), which
former GoldStar Telecommunication Company successor, build the
first Korean made CDMA phones for Korean consumer market, and later it
merged to mother company as department and start GSM division for export
based mobile phone business. In 2002, LG UMTS Mobile division demonstrate
the World firstWCDMA Video Telephony at Korean-Japan World Cup Game
Opening Ceremony, the nominal growth of Mobile Communication have been
started. Currently LG MC Company produce CDMA, GSM, WCDMA
products and recent success of design based phone concept series Black Label
Series boosted its revenue since 2005.

Motorola

Motorola
Motorola, Inc. was an American multinational[5]telecommunications company
based in Schaumburg, Illinois. After having lost $4.3 billion from 2007 to
2009, the company was divided into two independent public
companies, Motorola Mobility and Motorola Solutions on January 4, 2011.
[6]
Motorola Solutions is generally considered to be the direct successor to
Motorola, Inc., as the reorganization was structured with Motorola Mobility
being spun off.[7]
Motorola designed and sold wireless network infrastructure equipment such as
cellular transmission base stations and signal amplifiers. Motorola's home and
broadcast network products included set-top boxes, digital video recorders, and
network equipment used to enable video broadcasting, computer telephony,
and high-definition television. Its business and government customers consisted
mainly of wireless voice and broadband systems (used to build private
networks), and, public safety communications systems like Astro and Dimetra.
These businesses (except for set-top boxes and cable modems) are now part of
Motorola Solutions.
Motorola's wireless telephone handset division was a pioneer in cellular
telephones. Known as the Personal Communication Sector (PCS) prior to 2004,
it pioneered the "flip phone" with the MicroTAC and, the "clam phone" with
the StarTAC in the mid-1990s. It had staged an enormously successful
resurgence by the mid-2000s with theRAZR; but, lost significant market share
in the second half of that decade. Lately, it has focused on smartphones
using Google's open-source Android mobile operating system. The first phone
to use the newest version of Google's open source OS, Android 2.0, was
released on November 2, 2009 as the Motorola Droid (the GSM version
launched a month later, in Europe, as the Motorola Milestone). The handset
division, (along with cable set-top boxes and cable modems) has since then
been spun off into the independent Motorola Mobility. On May 22,
2012, Google CEO Larry Page announced that Google closed on its deal to
acquire Motorola Mobility.[8]

History

Motorola started in Chicago, Illinois as Galvin Manufacturing

Corporation (at 847 West Harrison Street)[9] in 1928, with its first product
being a battery eliminator. At that time the radio had not yet been developed for
use in automobiles, but Bill Lear and Howard Gates of Zenith made a pair;
Lear designed the circuit and layout, Gates did the metal work and Lear
assembled them. Bill Lear presented Paul Galvin with the prototype, and he
first dismissed it. Later the idea was taken up by Galvin and a 200 unit
production run was made. In 1930 Galvin Manufacturing Corporation
introduced the Motorola radio, one of the first commercially successful car
radios. Company's founder Paul V. Galvin and investor Bill Lear created the
brand name Motorola. Galvin and Lear mulled over names for the product on a
cross-country trip and came up with "Motorola" which was a blend of "motor"
and the then popular suffix -ola used with audio equipment of the time (for
example "Victrola"). The product was such a success that Galvin changed the
name of the company to Motorola.[10][11]
The name "Motorola" was adopted in 1930, and the word has been used as a
trademark since the 1930s.[12]
Many of Motorola's products have been radio-related, starting with a battery
eliminator for radios, through the first walkie-talkie in the world in
1940, defense electronics, cellular infrastructure equipment, and mobile phone
manufacturing. In the same year, the company built its research and
development program with Dan Noble, a pioneer in FM radio and
semiconductor technologies joined the company as director of research. The

company produced the hand-held AM SCR-536 radio during World War II,
which was vital to Allied communication.
In 1943, Motorola went public and in 1947, the name changed to its present
name. At this time, Motorola's main business was producing and selling
televisions and radios.
In October 1946, Motorola communications equipment it has carried the first
calls on Illinois Bell telephone company's new car radiotelephone service
in Chicago, Illinois.
In 1955, years after Motorola started its research and development laboratory
in Phoenix, Arizona, to research new solid-state technology, Motorola
introduced the world's first commercial high-power germaniumbased transistor. The present "batwing" logo was also introduced in 1955
(having been created by award-winning Chicago graphic designer Morton
Goldsholl in late 1954).
Beginning in 1958, with Explorer 1, Motorola provided radio equipment for
most NASA space-flights for decades including during the 1969 moon landing.
A year later, it established a subsidiary to conduct licensing and manufacturing
for international markets.
Motorola created numerous products for use by the government, public safety
officials, business installments, and the general public. These products
include cell phones, laptops, computer processors, and radio communication
devices. The Motorola RAZR line has sold over 120 million units bringing the
company to the number two mobile phone slot in 2005.
Since the 1950s, used Motorola radio equipment has been popular with amateur
radio ("ham") operators. Known as "Ma Batwings," Motorola has provided
little to no support to hobbyists, who keep using these radios for years or even
decades after they were taken out of production.
The company began making televisions in 1947. The Cathode ray tube,
developed by the company in a joint venture with National Video Corporation
became the industry standard. In 1960, it introduced the world's first "largescreen" (19-inch), transistorized, cordless portable television. In 1963 it,
introduced the world's first truly rectangular color TV. In 1974, Motorola sold
its television business to the Japan-based parent company of Panasonic.

Nokia

Nokia
Nokia Corporation (OMX: NOK1V, NYSE: NOK) is a Finnish
multinational communications and information technology corporation that is
headquartered in Keilaniemi, Espoo, Finland.[4] Its principal products
are mobile telephones and portable IT devices. It also offers Internet services
including applications, games, music, media and messaging, and free-of-charge
digital map information and navigation services through its wholly owned
subsidiary Navteq.[5] Nokia has a joint venture with Siemens, Nokia Siemens
Networks, which provides network equipment and services.[6]
Nokia has around 97,798 employees across 120 countries, sales in more than
150 countries and annual revenues of around 30 billion.[2] It is the world's
second-largest mobile phone maker by 2012 unit sales (after Samsung), with a
global market share of 22.5% in the first quarter of that year.[7] Nokia is a public
limited-liability company listed on the Helsinki Stock Exchange and New York
Stock Exchange.[8] It is the world's 143rd-largest company measured by 2011
revenues according to the Fortune Global 500.[9]
Nokia was the world's largest vendor of mobile phones from 1998 to 2012.
[7]
However, over the past five years it has suffered a declining market share as
a result of the growing use of smartphones from other vendors, principally
the Apple iPhone and devices running onGoogle's Android operating system.
As a result, its share price has fallen from a high of US$40 in late 2007 to
under US$2 in mid-2012.[10][11] Since February 2011, Nokia has had a strategic
partnership with Microsoft, as part of which all Nokia smartphones will
incorporate Microsoft's Windows Phone operating system (replacing Symbian).
Nokia unveiled its first Windows Phone handsets, the Lumia 710 and 800, in
October 2011.[12]After this move, sales were not impressive and Nokia made 6consecutive loss-making quarters from Q2 2011 to Q3 2012. The Q4 2012
results saw Nokia return to profitgenerated mostly by Nokia Siemens Network
and helped by the sale of real-estate and the Vertu business unit. Smartphone
sales are still low with only 4.4 million Lumia and 2.2 Symbian sales and the
smart devices business unit is still loss making with a contribution of -264
million Euro to the total operating profit 439 million Euro.[13]
History
1865 to 1967

Fredrik Idestam, co- Statesman Leo

founder of Nokia.
Mechelin, co-founder
of Nokia.
The predecessors of the modern Nokia were the Nokia Company (Nokia
Aktiebolag),Finnish Rubber Works Ltd (Suomen Gummitehdas Oy)
and Finnish Cable Works Ltd(Suomen Kaapelitehdas Oy).[14]
Nokia's history started in 1865 when mining engineer Fredrik
Idestam established agroundwood pulp mill on the banks of
the Tammerkoski rapids in the town of Tampere, in southwestern Finland in
the Russian Empire and started manufacturing paper.[15] In 1868, Idestam built
a second mill near the town of Nokia, fifteen kilometres (nine miles) west of
Tampere by the Nokianvirta river, which had better resources
for hydropowerproduction.[16] In 1871, Idestam, with the help of his close friend
statesman Leo Mechelin, renamed and transformed his firm into a share
company, thereby founding the Nokia Company, the name it is still known by
today.[16]
Toward the end of the 19th century, Mechelin's wishes to expand into the
electricity business were at first thwarted by Idestam's opposition. However,
Idestam's retirement from the management of the company in 1896 allowed
Mechelin to become the company's chairman (from 1898 until 1914) and sell
most shareholders on his plans, thus realizing his vision.[16] In 1902, Nokia
added electricity generation to its

Samsung

Samsung Telecommunications
Samsung Telecommunications is one of five business units within Samsung
Electronics, belonging to the Samsung Group, and consists of the Mobile
Communications Division, Telecommunication Systems Division, Computer
Division, MP3 Business Team, Mobile Solution Centre and Telecommunication
R&D Centre. Telecommunication Business produces a full spectrum of
products from mobiles and other mobile devices such as MP3 players
and laptop computers

to

telecommunication

network

infrastructure.

Headquarters is located in Suwon, South Korea.

In 2007 Samsung Telecommunication Business reported over 40% growth and
became the second largest mobile device manufacturer in the world. [1] Its
market share was 14% in Q4 2007, growing up form 11.3% in Q4 2006.[2] At
the end of November 2011, Samsung sold more than 300 million mobile
devices which was a close second after Nokia with 300.6 million mobile
devices sold in the first three quarter of 2011. [3] As of Q3 2012, Samsung is the
largest manufacturer of devices running Google Android with a 46% market
share.[1]
History of Telecommunication Business
Initial stage (19771993)
In 1977 Samsung Electronics launched the Telecommunication Network, and in
1983 it initiated its mobile telecommunications business with the hope that this
would become the company's future growth engine. In 1986, Samsung was able
to release its first built-in car phone, the SC-100, but it was a failure due to the
poor quality. In spite of unsuccessful result Ki Tae Lee, the then-head of the
Wireless Development Team, decided to stay in the mobile business. He asked
the company to buy ten Motorola mobile phones forbenchmarking. After 2

years of R&D Samsung developed its first mobile phone (or "hand phone" in
Korea), the SH-100 in 1988. It was the first mobile phone to be designed and
manufactured in Korea. But the perception of mobile devices was very low and
although Samsung introduced new models every year, each model sold only
one or two thousand units.

Sony-Ericsson

Sony Mobile Communications

Sony

Mobile

Communications

Communications

AB)

is

AB (formerly Sony

a multinational mobile

Ericsson

Mobile

phone manufacturing

company headquartered in Tokyo,Japan, and a wholly owned subsidiary

of Sony Corporation. It was founded on October 1, 2001 as a joint venture
between

Sony

and

the Swedish telecommunications

equipment

company Ericsson, under the name Sony Ericsson.[1] Sony acquired Ericsson's
share in the venture on February 16, 2012.[5]
Sony Mobile Communications has research and development facilities
in Tokyo, Japan;Chennai, India; Lund, Sweden ; Beijing, China and Silicon
Valley, United States.[6] Sony Mobile is the world's 10th-largest mobile phone
manufacturer by market share in the first quarter of 2012. [7] It is the world's
third-largest smartphone manufacturer by market share in the third quarter of
2012.[8]
History
Origins
In the United States, Ericsson partnered with General Electric in the early
nineties, primarily to establish a US presence and brand recognition.
Ericsson had decided to obtain chips for its phones from a single source
a Philips facility in New Mexico. In March 2000, a fire at the Philips factory
contaminated the sterile facility. Philips assured Ericsson and Nokia (their other
major customer) that production would be delayed for no more than a week.
When it became clear that production would actually be compromised for
months, Ericsson was faced with a serious shortage. [9] Nokia had already begun
to obtain parts from alternative sources, but Ericsson's position was much
worse as production of current models and the launch of new ones was held up.
[10]

Ericsson, which had been in the mobile phone market for decades, and was the
world's third largest cellular telephone handset maker, was struggling with huge
losses. This was mainly due to this fire and its inability to produce cheaper
phones like Nokia. To curtail the losses, it considered outsourcing production to
Asian companies that could produce the handsets for lower costs.[citation needed]
Speculation began about a possible sale by Ericsson of its mobile
phone division, but the company's president said it had no plans to do so.
"Mobile phones are really a core business for Ericsson. We wouldn't be as
successful (in networks) if we didn't have phones", he said.[citation needed]
Sony was a marginal player in the worldwide mobile phone market with a share
of less than 1 percent in 2000. By August 2001, the two companies had
finalised the terms of the merger announced in April. The company was to have
an initial workforce of 3,500 employees

CHAPTER VI

MARKETING STRATEGIES
4. Pricing Strategies:
11. Penetration Pricing: This pricing strategy is followed by companies with
the intention to maximize their market share. They believe that a higher sales
volume will lead to lower unit costs & higher long-run profit.
Example: China Mobile Phones in India.
This is one of the fastest growing industries in India. China mobile phones are
cheap and offer the same features as a expensive mobile from some other well
known manufacturers.
Rs:
12000C
hinaJN269

Rs:
990
0Ch
inaMT
330
0

Rs:
9800Chin
a_Elitek_
8502

Rs:
9500China
-GTMD900

Rs:
9400Chin
a-6500S

Rs:
8700Chi
na_GT_
Q718

Rs:
613
7Ch
inaElit
ekX60
19

Rs:
5200Chin
a_Elitek_
X6011

Rs:
4900China
_ELITEK
_X6010

Rs:
4500Chin
a_Elitek_
X6012

A few samples of Chinese mobiles are shown above. Only problem that exist
for the Chinese mobile phones is that consumer generally have a low quality
perception associated with them and hence, do not trust their quality. However,
they are well suited to people who want to enjoy features of a high end mobile
without having a budget for the same.
1
2
3
4
52. Predatory Pricing

This pricing strategy is followed with the intention to wipe out the competition.
Example: In the year 2003, LG and Samsung along with Reliance came up with
Rs. 500/- mobile scheme where both handsets along with connections were
available for Rs. 500/-. This was something which revolutionized the mobile
phone and telecom industry.
13. Perceived value Pricing:
In this case the pricing is done based on the customers perception about the
company and its product. Perceived value is made up of several elements such
as buyers image of product performance, the channel deliverables, warranty,
quality and even softer attributes such as suppliers reputation.
Example: A good example for this kind of pricing is Apple iPhones. They are
offered in price range of Rs. 31,000/- to Rs. 42,500/-.
Their price is set based on image of brand apple & customer affinity towards it.
Comparable mobiles phones from other manufacturers like Sony Ericson,
Nokia are offered at relatively cheaper price. For example comparable N series
mobiles from Nokia are offered at prices below Rs. 30,000/- (Except for NokiaN9 & Nokia-8800 Carbon). Also, SONYERICSSON Satio is offered for Rs.
31,000/- & all other Sony brands are available for prices below it.
Apple can set higher prices since; it feels that its customers will be ready to pay
for it based on its perceived value.

Apple-iPhone-3G-S-32GB
Price | Rate Rs:
42,500/14. Value Pricing: This is pricing strategy in which a company wins loyal
customers by charging a fairly low price for a high quality offering.
Example: Nokia E 63 Mobile.
This mobile is priced at Rs. 11,260/-. This mobile offers a large number of high
end applications like: Web-Browsing, Email, Data Network, GPRS, GPS &
Navigation and lots of other facilities apart from serving the basic mobile
functions. At the same time it has a sleek body & robust structure.
A image of this mobile has been shown below.

15. Product form pricing: Different versions of the same product are priced
differently.
Examples: Nokia-5000 is priced at Rs. 4,300/- Whereas, Nokia-7210CSupernova is priced at Rs. 4,800/- offers almost the same features. The reason
for difference in pricing is due to the sleek structure of Nokia-7210C.
16. Promotional Pricing:
11. Special Event Pricing: In this case special prices are offered during special
occasions like festivals to increase the sales.
Example: Last Diwali (September, 2009) Samsung offered discounts on
Samsung Omnia mobile phone. Their market price at that time was Rs.
33,990/- whereas their discounted price for Diwali was Rs. Rs. 31,990/-.
12. Low-Interest financing:
Company can offer low interest financing to customer. This will reduce the
burden of initial cost to the customer.
Example: In 2009, Nokia piloted a scheme in two Indian states where it sold
handsets on a weekly instalment of 100 rupees ($2) over 25 weeks period.
13. Psychological Discounting:
This is done to make the customer believe that product is priced cheaply or
some cases just break the price barrier that customer has in his mind like price
at price Rs. 999/- which is priced just below Rs. 1,000/-.
Example:
MOTOYUVA - W156 prices at Rs. 1,099/Samsung Guru- Rs. 2,999/-

16. Future of Mobile Industry:

Demand Among Poor Farmers Keeps an Industry Growing as Other Sectors of

the Economy Are Jolted. Rural customers "have been hungry for mobile phones
for a long time, so demand will remain unaffected," by the global jitters, said
S.P. Shukla, chief executive officer of the mobile business at Reliance
Communications India Ltd., India's second-largest cellular company by number
of subscribers,
Even amid the global economic slowdown, one Indian industry continues to
boom: selling cellphones to the rural poor.
Economists have slashed Indian economic growth forecasts for this year and
the stock market is in the doldrums. But cellphone companies are signing
millions of new subscribers a month, making India the fastest growing mobilephone market in the world. There is no sign of a slowdown yet: figures to be
released later this month are expected to show that new subscriptions in
January reached a record 11 million.
The demand for cellphones is coming mainly from rural consumers, who
typically earn less than $1,000 a year. These buyers haven't been affected by
plunging stock and real-estate prices or tighter bank lending since they
typically don't own land and don't borrow. A large majority of them don't have
access to regular landline phone networks -- there are only about 40 million
landline subscribers in India -- so once cellular coverage comes to their towns
or villages they scramble to get their first phones.

CHAPTER - VII

ABOUT COMPETITORS
Following are the highlights of mobile phone industry in India as on December,
2009:
61. The penetration of mobile phones stands at about 30%.
72. 81% of mobile users are in urban area.
83. Indias rural teledensity stands at about 12.6%
94. India has about 517 million subscribers by December, 2009.
105. It is forecasted that sales of mobile handsets in rural India will grow at
CAGR of around 17% from 2009 to 2012
Above figures clearly indicate that although mobile phones might have made
significant inroads into the urban market & urban market may start moving
towards saturation but, still lot of potential is to be explored in the rural
segment.
Market Share of different Manufacturers as on Dec-2009 is given below:
As evident from above figures, Nokia is a major player in the Indian mobile
industry today.
Also to understand the satisfaction level which users of above brands express,
we look at a consumer satisfaction survey, the results of which are shown
below. The survey was done on Indian Urban mobile phone users with Sample
size of N=5,775.
Model

Users Likely to recommend

LG
Motorola

57.6%
41.0%

Nokia
68.6%
Samsung
55.7%
Sony-Ericsson 65.3%

The result shows Nokia users are the most satisfied with their product followed
by Sony-Ericsson and LG.

CHAPTER -VIII

DATA ANALYSIS AND INTEPRETATION

4.1 Gender

Male

52%

Female

48%

The sample is a good mix of both genders hence is giving the unbiased
view on the question.
4.2 How many different mobile service providers you use
AirTel
Vodaphone

9 20%
2 59%
6

Idea

1 2%

MTNL

7 16%

MTS

0 0%%

Aircel

1 2%

Reliance

6 14%

Tata

3 7%

Docomo
BSNL

2 5%

Other

2 5%

According to the survey conducted the maximum no of respondents have

favoured the Vodaphone Essar as favourite mobile operator in the Mumbai
region. The next preference is for the Airtel followed by MTNL & Reliance, the

new telecom operators have small market share in the market. This finding is
not according to the overall survey conducted in India, which profess Airtel
leads in the subscription. The average time duration of the use for each
Vodaphone Essar customer is 4 years the minimum time is being 2 years and
the maximum time being 7 years.
4.3

Average monthly spends on the phone?

Below 300 20.45%

301-800

54.54%

801-1200

15.90%

Above
1200

9.11%

The average monthly spending on the mobile is in between 301 to 800

Rs for around 55% of the respondents around 20% of respondents have their
monthly charges below 300 Rs. Thus around 75% of the respondents agree that
they spend less than 800 Rs per month on the mobile phones.

4.4 Will you change your provider if your mobile number remains same?

Yes

57.82%

No

43.18%

The above information shows that change in mobile number is the major
concern for majority users thus it was a discouraging factor for the majority
users. Thus now after announcement of new directions by TRAI, telecom
operators may observe change in the service providers.

4.5 Do you feel your service providers have fulfilled all promises?

Yes

50.0%

No

50.0%

According to the survey half the respondents believe that the mobile
operators have not fulfilled all the promises they have done to the customer.
Thus it is seen that there are some service gaps between the services offered
and the external communications done to the customer. These include the
problems as unclear billing policies,

4.6 What are the technologies which you are aware?

CDMA

4 100%

GSM

3
4 93%

Satellite Phones

0
1 42%

3G

8
4 93%

4G

0
1 28%

Other

2
0 0%

The above data represents that the all respondents are aware of the
CDMA technology, 93% of respondents are aware of the GSM technology and
3G mobiles. This statistics represents that awareness level of majority
respondents about new age technology is good. Less no of respondents are
aware about the 4G technology.

4.7 Are you willing to change the mobile service provider if your service
provider doesnt have 3G option?

Yes

25.0%

No

75.0%

This response shows that the majority of the respondents are not ready to
change their mobile services even if their service providers are not having the
3G licence. This is very interesting finding as if we see the awareness level of
the users is high but the willingness to change the service provider is not there,
even if the provider is not equipped with 3G facilities.
4.8 Please select the services you use on your mobile.
GPRS
Call
Divert
Call Ring
Tone
MMS

34.1%
6.8%
34.1%
11.3%

The above chart shows that out of different kind of services available,
customers use GPRS and Caller Ring Tone most widely. 34.1% of respondents
prefer GPRS and Caller ring tone and MMS service is used by 11.3% and call
divert services is used by 6.8% of the respondents.

4.9 Will you change the service provider if only one of the factors like
calling rates or SMS rate or VAS charges or better network coverage
or more accessible service centres or better technology?

Yes

34.1%

No

65.9%

The majority of the users which are around 66% say that they are ready
to change their service providers provided even only one of the parameters like
the Price, Network coverage or the better technology comes into the picture.
The others are happy with the kind of service they are receiving.
4.10 Are you satisfied with your service provider?

Very

16%

Satisfied
Satisfied

66%

Neutral

13%

Dis-

5%

satisfied

As per the survey, the Dissatisfied portion is only 5% and Neutral

opinion is given by 13% and 66% of the respondents say that they are Satisfied
with the services given by the service providers. 16% of the respondents are
Very Satisfied with the service they get. Thus it proves to be a challenge to the
telecom industry to target the neutral and the dissatisfied customer and the
thereby capture the competitors market share.

The respondents have major problem of the network coverage in some

area of Mumbai, unclear billing, cheating in bills, High call rates. The
users which are satisfied are satisfied by the good network coverage, good VAS
services, cheaper call rates etc. Thus it is clear that the users are mostly
satisfied by the good network coverage, low calling rates and good VAS. Hence
it can be seen that still users are being satisfied by the primary requirements
and the as seen in the Q.7 that users are not still looking for the high end
services on the phone.

CHAPTER - IX
LIMITATION
There are two limitations that need to be acknowledged and addressed
regarding the present study. The first limitation concerns the cross-disciplinary
nature of this research project. The commitment phenomenon was studied
within the context of software process improvement. There is an apparent
danger involved whenever concepts are borrowed from related
disciplines, i.e. from the fields of organizational behavior and information
systems, and then applied in the present context. The author of this thesis does
not have any degree in psychology, but he has had several discussions with
scholars specializing in psychological phenomena. These scholars thought that
it would be rather beneficial to have an outsider investigating the role of
commitment in the present context, since it has not been done before and the
present author does not represent any specific school of thought, which frees
him to make an attempt at bridging various views presented in contemporary
commitment research in a novel way. In addition, in the preparation phase for
the article V, the present author consulted a practicing psychologist about the
terminology used in this thesis. Furthermore, no new psychometric
measurement instruments have been constructed since the dominating research
approach has focused on gathering qualitative data. Finally, the commitment
nets model used in this study does not attempt at explaining how an individual
behaves, but rather provides the conceptual and operational tools for
investigating commitment in the context of software process improvement.
The second limitation has to do with the extent to which the findings can be
generalized beyond the cases studied. The number of cases is too limited for
broad generalizations. However, the four software process improvement cases
represent rather different aspects of the software development processes.
Therefore, software organizations performing SPI activities can benefit from
the findings. Further empirical evaluations, however, are needed to replicate the
findings in different contexts and surroundings.

CHAPTER - XI
Conclusion

In Mumbai, we came to know the mobile service providers are,

Vodaphone Essar, Airtel, MTNL, Reliance, Tata Indicom, Virgin Mobiles, Idea
and Aircel. As per the responses, the major subscriber in the Mumbai is
Vodaphone Essar and followed by AirTel. The majority of users say that the
network coverage is the very important factor for the consumer loyalty and
satisfaction. The mobile number portability will bring change in the service
providers.
It was found that the leading subscriber (Vodaphone) is scoring good on
customer loyalty, better serve delivery (in terms of VAS), better network,
leading brand awareness through the latest advertisement campaign of ZOOZOO.

The majority usage on mobile phone is restricted to talking and SMS till
date and other services like GPRS, MMS are not popular yet.
Majority of the users are still not looking for the revolution in the mobile
technology and they are satisfied with the current technologies and services
they are getting.

SUGGESTION

The study has given lot of important insights about the customer
expectations of mobile services. Based on the survey findings, there are few
recommendations for the service providers about the technology requirements,
changing norms and the current level of satisfaction level.
1. The very important factor which is deciding the satisfaction level among
the customer is network coverage which is considered more important
than the cost effectiveness. This is the important factor for increasing the
satisfaction level, followed by the price competitiveness and then the
VAS services. The other factor increasing the dissatisfaction level is less
clarity of the mobile bills thus mobile operators need to bring more
transparent services for paying the bills.
2. The Customers right now less worried about latest technology like 3G
operators, thus in short term to have more no of subscribers operators
should concentrate on better quality of basic services on mobiles.
3. The new mobile operators norms like mobile no portability, are going to
create good amount of turbulence in the industry thus it is very important
for the service providers to minimise their service gaps and increase the
service delivery to the customers as change in the mobile number is seen
as major barriers for those who want to change the service providers.

BIBLIOGRAPHY
7.1 Books
Kothari, C.R, Research Methodology, Second Edition, New Delhi,
Wishwa Prakashan, 1990
Zeithaml V A, Bitner M J, Pandit Ajay, Services marketing, third
edition,New Delhi, TMH publishing house, 2003
C Bhattacharjee, Services Marketing, First Edition, New Delhi, Excel
Books, 2006
7.2 WEBSITES
http://timesofindia.indiatimes.com/biz /sep
Portability-in-metros-A- Circle-by-Dec-31

23

2009/Mobile-No-

http://en.wikipedia.org/wiki/Indian_Telecommunication_Service
http://www.indiaprwire.com
http://web.ebscohost.com
http://www.trai.gov.in
http://www.trai.gov.in/StudyPapers_content.asp

7.3 OTHER REFERENCES

Afaqs! Reporter, Feb 15-28, 2010,Pg 28

QUESTIONNAIRE

Name...............................................

Occupation...........................

Gender M/F

Mobile No.