CHAPTER-1

INTRODUCTION

CONSUMER BUYING BEHAVIOUR

The consumer buying behavior varies from consumer to consumer. Some

consumers are involved in extensive bargaining and are price conscious. Some are

leisure driven shoppers. While others are recreational shoppers and they search for

recreation and experience. Some others fall in the hedonism domain of shopping i.e.

the product image significantly influenced the price consumers were willing to pay for

the product. Hence, the common categories of shoppers are the price consciousness,

hedonism and price quality. Apart from these there are fashion conscious, bargain

conscious, brand loyal and non-brand loyal customers.

Due to fierce competition, the rising costs of attracting new customers, most firms

endeavor to retain existing customers. Since all companies depend on repeat business,

there is growing need for a greater understanding of the factors determining

customer’s loyalty. In case of repeat purchases of low-involvement products, the

customers have neither the time, the resources nor the motivation to engage in a

complex decision-making process or Extended Problem Solving (EPS) processes and

so they usually engage in the process of habitual buying.

Definition of Buying Behavior:

Buying Behavior is the decision processes and acts of people involved in

buying and using products.

Need to understand:

Why consumers make the purchases that they make?

What factors influence consumer purchases?

The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A

firm needs to analyze buying behavior for:

Buyer’s reactions to a firms marketing strategy has a great impact on the

firm’s success.

The marketing concept stresses that a firm should create a Marketing

Mix(MM) that satisfies (gives utility to) customers, therefore need to analyze

the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing

strategies.

Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions).

Actual purchasing is only one stage of the process. Not all decision processes lead to a

purchase. All consumer decisions do not always include all 6 stages, determined by

the degree of complexity. The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired

state and the actual condition. Deficit in assortment of products. Hunger Food

Hunger stimulates your need to eat.Can be stimulated by the marketer through

product information--did not know you were deficient? I.E., see a commercial

for a new pair of shoes, stimulates your recognition that you need a new pair

of shoes.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping;

public sources etc.

A successful information search leaves a buyer with possible

alternatives, the evoked set. Hungry, want to go out and eat, evoked set

is

o Chinese food

o Indian food

o burger king

3. Evaluation of Alternatives--need to establish criteria for evaluation, features

the buyer wants or does not want. Rank/weight alternatives or resume search.

May decide that you want to eat something spicy, Indian gets highest rank etc.

If not satisfied with your choice then returns to the search phase. Can you

think of another restaurant? Look in the yellow pages etc. Information from

different sources may be treated differently. Marketers try to influence by

"framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product, package,

store, method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product

availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.

Cognitive Dissonance, have you made the right decision. This can be

reducedwarranties, after sales communication etc.After eating an Indian meal,

may think that really you wanted a Chinese meal instead.

Types of Consumer Buying Behavior

High involvement purchases--Honda Motorbike, high priced goods, products visible

to others, and the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior--buying low involvement frequently

purchased low cost items; need very little search and decision effort;

purchased almost automatically. Examples include soft drinks, snack foods,

milk etc.

Limited Decision Making--buying product occasionally. When you need to

obtain information about unfamiliar brand in a familiar product category,

perhaps. Requires a moderate amount of time for information gathering.

Examples include Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of

economic/performance/psychological risk. Examples include cars, homes,

computers, education. Spend alot of time seeking information and deciding.

Information from the companies MM; friends and relatives, store personnel

etc. Go through all six stages of the buying process.

Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying

Behavior.Product can shift from one category to the next.

For example:

Going out for dinner for one person may be extensive decision making (for someone

that does not go out often at all), but limited decision making for someone else. The

reason for the dinner, whether it is an anniversary celebration, or a meal with a couple

of friends will also determine the extent of the decision making.

Factors Influencing Buying Behavior

Marketing

Stimuli

Other Stimuli

Product

Price

Promotion

Place

Economical

Technological

Political

Cultural

This figure explains some of the factors which influence

habitual buying behavior.

Consumers buying behavior is influenced by cultural, social, personal and

psychological factors.

Cultural Factors

Culture is the most fundamental determinant of person’s wants and desires.

Buyer

Characteristics

Buyer Decision

Process

Cultural Factors

Social Factors

Personal Factors

Psychological Factors

Problem Recognition

Information Search

Evaluation of

Alternatives

Purchase Decision

Post Purchase

Behaviour

Buyer Decision

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase Amount

Subculture includes nationality religion, racial group and the geographic

region.

Social Class is the homogeneous and hierarchically ordered members of the

interest and behavior.

Social Factors

Reference Groups consist of all the groups that have a direct or indirect influence on

a person’s attitudes and behavior

Primary groups such as friends, family, neighbors and co-workers have a

regular interaction, which is informal in nature. Family members constitute the

most influential primary reference group.

Secondary groups such as religious, professionals and trade union groups

tend to be more formal and require less continuous interaction.

Personal Factors

Age and stage in the life cycle:

- Family life cycle

- Psychological life cycle, divorce, widowhood, remarriage

- Occupation and economic circumstances

Lifestyle

- Lifestyle is defined as a person’s pattern of living in the world as

expressed in activities, interest and opinions

- Psychographics is the science of measuring and categorizing consumer

lifestyles. VALS is the most popular classification based on psychographic

elements

Personality is the distinguishing psychological characteristics of a person that

lead to relatively consistent and enduring responses to environment.

Self-concept is how he views himself. Ideal self-concept is how he would like

to view himself and others self-concept is how he thinks others see him.

Psychological Factors

Motivation: There are different types of motivational needs for a person:

- Biogenic which arise from physiological states of tension such as hunger,

thirst and discomfort

- Psychogenic which arise from psychological states of tension such as need

for recognition, esteem or belongings. A need becomes a motive when it is

aroused to a sufficient level of intensity. A motive is a need that is

sufficiency pressing to drive the person to act.

Perception is the process by which an individual selects, organizes and

interprets information to create a meaningful picture of the world. How a

motivated person actually acts is influenced by his perception of the situation.

Learning involves changes in an individual’s behavior arising from

experience.

MOBILE PHONES INDUSTRY- AN OVERALL VIEW

The mobile phone has become a uniquely personal item: many people take

theirs with them even when leaving wallets or keys behind. Some phones designed for

business users can send and receive e-mail, and have tiny keyboards; others aimed at

outdoor types have built-in torches; still others have satellite-positioning functions,

high-resolution cameras with flash and zoom, and even the ability to record and play

video clips. Clearly, phones are not what they used to be.

This spectacular outward transformation of the mobile phone is being reflected by an

internal transformation of the industry that makes what have now become the most

ubiquitous digital devices on the planet. Over half a billion mobile phones are sold

every year, and despite sluggishness in other parts of the technology industry, the

number continues to grow. Sales are being driven, in part, by the surge of new

subscribers in the developing world, particularly in India and China. In the developed

world, meanwhile, where markets are so saturated that most adults already carry a

mobile phone, existing subscribers are switching in droves to today's more advanced

models. Meanwhile, the number of mobile phones in use, at around 1.4 billion,

overtook the number of fixed-line phones last year.

No wonder so many firms now want a piece of the action. The mobile phone sits at

the intersection of three fast-moving industries: it is a communications device,

computer and, with the addition of new media functions, consumer-electronics

product. Indeed, it is the best selling device in all three categories.

As a result, the firms that have historically dominated the industry-large, specialized

firms such as Nokia and Motorola - now face a host of new challengers as well as

opportunities. The desire for “ownership” of each mobile-phone subscriber poses

another threat to the incumbent handset-makers, as mobile-network operators seek to

promote their own brands and to differentiate themselves from their rivals. The result

is a little-seen, but almighty, struggle for control of a $70 billion industry: a battle, in

short, for the palm of your hand.

An extensive discussion on how ODMs (original design manufacturers) are changing

the industry and the threat they pose to the existing branded handset makers. Handset-

makers, like car makers, build some models themselves and outsource the design and

manufacturing of others. Specialist firms supply particular sub-assemblies in both

industries. Outwardly different products are built on a handful of common underlying

“platforms” in both industries, to reduce costs. In each case, branding and design are

becoming more important as the underlying technology becomes increasingly

interchangeable. In phones, as previously happened in cars, established western

companies are facing stiff competition from nimbler Asian firms. Small wonder then

that Nokia, the world's largest handset-maker, recruited its design chief, Frank Nuovo,

from BMW."

MOBILE PHONES MIGRATE TO TFT-LCD DISPLAYS

An analysis of mobile-phone designs Mobile Phone Display Teardown

Service in 2004 confirms that handsets are making increased use of more advanced

display technology, specifically color TFT-LCD displays and higher-resolution

screens.

1 One of the most significant changes in mobile phone display design in 2004

was the migration from monochrome to color screens.

2 In 2004, 68 percent of all mobile phones shipped worldwide used color

displays, with the remaining 32 percent being monochrome. By 2008, color

displays will be virtually ubiquitous in new mobile phones, with a 96 percent

penetration rate.

3 Among the color-display phones, the mix is shifting toward higher-quality

TFT displays, as price decreases make them a more viable alternative to the

Color-STN (C-STN) screens most commonly used now. iSuppli estimates that

the market for TFT-LCD displays for mobile phones amounted to 241 million

units in 2004. In 2005, the mobile phone TFT- LCD market will swell by 50

percent to reach 367 million units.

4 Mobile Phone Display Teardown Service dissected 42 handsets in 2004.

Among those, only one—the Nokia 1100—used a monochrome main display.

5 Among the various manufacturers of mobile phones, there was significant

variation in the usage of TFT-LCDs

6 Sony Ericsson announces plans to manufacture mobile phones in India 31

January 2007

7 Annual production capacity in India expected to reach 10 million by 2009.

8 Sony Ericsson today announced its plans to manufacture mobile phones in

India, through manufacturing agreements with Flextronics and Foxconn, the

company’s global outsourcing manufacturing partners.

Initially the focus will be to manufacture basic color phones and mid-level

music enabled phones, for local distribution. In addition to competitive pricing, these

phones will offer customized features for the Indian market, such as local content and

customized keypads.

Since its establishment in India in 2002, Sony Ericsson has built strong brand

awareness and has significantly expanded its geographic presence with distribution

partners. Today, Sony Ericsson is amongst the top 3 GSM handset players in the

country. As part of a strategic and longer term growth plan, the company will increase

its presence in important growth markets around the world, for greater manufacturing

flexibility and competitiveness. The decision to manufacture in India is part of this

strategic decision. With a GSM subscriber base of 105.4 million, India is one of the

fastest growing mobile markets in the world, and forms a priority growth market for

Sony Ericsson worldwide.

“Sony Ericsson’s success in India and indeed globally has been based on our

strong commitment to address both operator and user needs. “Local manufacturing in

India will result in improved cost efficiencies and enable us to offer attractive

products at even more competitive price points. Sony Ericsson has witnessed

encouraging growth in India, enabling us to reach a top 3 position in the GSM handset

category in this market, and in line with our overall aim of becoming a top 3 global

player in the future,” he added.

Where are we now?

India is one of the fastest growing markets for mobile telecom, and there are

great opportunities for manufacturing services. With a population of over one billion

people, India represents one of the most exciting and fastest growing areas for handset

and network equipment OEMs and EMS providers.

India has become an extremely attractive location for manufacturing because of its

talent pool of engineers, software developers, designers and a highly skilled

workforce with global quality standards. The trend for global EMS companies has

been to establish manufacturing capacities in countries with growing markets or

proximity to vast markets, favorable costs and a large pool of technical talent.

According to recent reports, telecom manufacturing is cheaper in India than in other

neighboring countries. If the supply chain is based out of India, it is possible to make

a mobile phone that is five to seven percent cheaper in India than in other neighboring

countries. India also has R&D capabilities, which bring down development costs.

Over the last five to seven years, India has emerged as one of the leading R&D and

design bases for multinational IT companies like Texas Instruments, IBM and

Microsoft and telecom companies like Motorola, Alcatel and Ericcson. With R&D

and design capabilities already existing in India, costs in India become significantly

lower than in developed countries, and setting up a manufacturing base in India is a

form of backward integration for global telecom companies.

Another possibility for equipment manufacturers is exports, particularly of mobile

handsets. During 2004, Indians purchased 25 million mobile handsets worth US $2.8

billion. That figure is expected to go up to 65 million in 2006 and 100 million by

2010. Now, if the announced plans of companies like Elcoteq, Nokia, Samsung and

LG are on target, starting 2010, upward of 125 million handsets will be rolled out of

Indian factories every year. That opens up the possibility of exporting cheap India-

made phones to other emerging markets. LG, for instance, expects to export 50

percent of its production in India by 2010. India's R&D capabilities are one of the

most advanced in the world and 60 percent of the world's leading product companies

and OEMs source a part of their technology from India.

TRENDS IN HANDSET DESIGN

There had been rapid changes in the form and features of the mobile phone.

The trend is very clear in form as there had been shift in focus from static Bar phones

to dynamic clamshell and slider phones. Samsung is a trendsetter with its "slim and

wide" design phone concept that offers better portability with its lightweight and

thinness, as well as enriches multimedia features in a mobile environment with larger

screens.

The latest trends in cell phones’ features reflect a convergence of voice, video and

data communications. By blending information with entertainment, cell phones are

center-stage in the evolving trend of mobile infotainment. The companies are

bundling their phones not only with MP3, polyphonic ringtones, video recorder, photo

shoot, GPRS and radio-TV programs at push button, but also adding up aura features

making phones more emotive.

“To satisfy the appetites of the demanding mobile marketplace, vendors are

offering latest technological advances in intelligent design which are sleeker these

days, colorful displays, customizable music and interactive gaming - all brought

together in vibrant color body. We also see a great opportunity for fashion

brands/companies to independently produce their own-designed phones, in

collaboration with the operator and handset vendors.”

FEATURES DRIVING MOBILE USAGE

GSM phones, LG Electronics, feature usage is specific to a segment. For a

basic segment, color screen would be a driving force. For a mid segment, Bluetooth,

MP3, video would be the driving force. For high-end customers, Mega Pixel camera

loaded with features and a matching design does the trick.

Increasingly, customers are looking for a single handset that can meet a multiplicity of

criteria, such as offering the longest talk time, the applications most suited to their

needs and the best price. Although most of the conventional features are going to stay

there will be ever growing demand for GRPS, Bluetooth, enterprise need of

computing, media presentation, etc. Nowadays, mobility is not an add-on but

becoming fundamental aspect of many services, creating huge demand for high-speed

access to the Internet, entertainment, information and electronic commerce (e-

commerce) services anywhere. Features like TV streaming, high-speed Web

navigation and videoconferencing, etc. are fueling the need for 3G services.As 3G

services are set to deploy, the demands on the handsets and applications will increase

exponentially. Without advanced functionality in the mobile handset to deliver the

best quality experience possible, 3G-service deployment and user adoption rate will

be slowed.

The business challenge is to keep constantly launching widely popular feature phones

matching the upcoming trends and simultaneously increasing the profitability. With

clamshell and sliding forms, features such as TV, GPRS messaging, MP4, video

streaming, etc. will shape the future business model. All these requires careful

management of video-clip services and content costs in the short-term, followed by

evolution to advanced cellular technology, such as HSDPA, and integration with

DVB broadcast technology. The market will only grow if latest technology is made

available at an affordable price.

Consumers are becoming more sophisticated in their selection of handset, and this is

driving the market for stylish and fashionable mobile phones. Independent study

shows that there will be sufficient consumer demand to support the sale of 23 million

fashion handsets by 2010. Also, as technology gets more and more standardized, it

will be hard to differentiate handsets based only on enhanced technology features.

Mobile manufacturers will have to rely on the aesthetic GUI, which can generate an

emotional response for which consumers will be willing to pay the premium.

The Opportunities

Every operator in India is undertaking massive expansions trying to boost

subscribers and market share. Network capacity is expected to nearly double in 2006.

All five national operators are spending up to US$ 1 billion on network expansion

over the next 12-15 months. With equipment prices already at the world's lowest it's a

competitive market for handset makers. BSNL has decided to issue a single tender for

installing an additional 60 million GSM lines. This will possibly be the largest-ever

telecom expansion deal in the world and is estimated to be worth over US$ 5 billion -

that covers towers, electronics, integration and installation; leading to immense

opportunity for OEMs operating in India. The Company Board had earlier decided to

allow all equipment vendors to bid for its tenders. It had also set aside the

recommendations of a high-level committee, which had proposed that only the

existing vendors - N ment vendors like Siemens, Lucent as well as Huawei

Technologies and ZTE of China.

Ericsson and have recently started indigenous manufacture of base stations, while

Nokia has set up a unit in Chennai to manufacture both handsets and Nokia, Motorola,

Nortel, Ericsson and ITI-Alcatel - be allowed to bid. This decision benefits global

telecom equips ITI-Alcatel network equipment. Siemens, Motorola and Huawei

Technologies have also announced that they plan to make substantial investments in

the manufacturing sector in India. Indian R&D companies now have substantial

number of employees working on custom software, legacy product roadmaps,

embedded systems and running back office functions for operators. Nearly 10 per cent

of telecom equipment R&D is now done in India, but growing 40 per cent per annum.

At this pace, Indian IT vendors could have 50 per cent of industry R&D headcount by

2010. In the next 22 to 31 months, Indian telecom companies will invest around US$

15.8 billion on network equipment alone. A substantial amount of this will be done by

State owned BSNL and MTNL.

Given the demand in the country, the emphasis has now shifted to low cost products -

handsets and equipment - and that is the reason for large-scale investment in

manufacturing in India. With the entire telecom industry valued at over US$ 27.2

billion and with leading OEMs and EMS companies setting up operations in India, the

telecom boom will also lead to a boom in the ancillary industry. Nokia establishing a

manufacturing facility in Chennai and announcing that it will rollout India-made

Nokia handsets, with an investment of between US$100-150 million is another

milestone that establishes India on the world's telecom manufacturing map. In the

GSM category, Nokia holds over 55 per cent market share in India and India is the

Company's fifth largest market.

Nokia has also received a contract worth around US$141 million from BSNL for

GSM/EDGE and GPRS network expansion in North India. Besides global companies

investing in manufacturing in India, the Government has announced a US$ 23 billion-

revival plan for the State-owned Indian Telephone Industries (ITI) Bangalore. ITI will

start manufacturing mobile phones with help from global equipment major Alcatel at

its facility in Uttar Pradesh, which has a capacity of manufacturing three million units.

Motorola has also announced that it will begin manufacturing in India by assembling

its hottest selling and popular low cost C115 mobile handset (less than US$ 45)

"Made in India" through a third party equipment vendor. This will also help Motorola

comply with the stipulation of BSNL that prospective bidders for its equipment

tenders should have a manufacturing facility in India. Another key trend has been the

investments being made by global companies to leverage India's R&D and design

capabilities. Companies like Intel have announced investments for high-end design

and development work on chips.

Texas Instruments' R&D centre in Bangalore is working on analogue and digital

signal processor digital chip design. Other companies like Motorola, Hyundai, ZTE

Corporation, Qualcomm, Huawei, Nokia and Ericsson have all committed investment

to leverage India's capabilities in design. The last 12 months have been witness to

announcements by global companies like Elcoteq and Nokia that will redefine

telecom manufacturing in India, and signal the emergence of a new industry that is

likely to benefit the Indian economy. Elcoteq, with its ODM capabilities globally, acts

as a one-stop shop for world class product design and offers flexibility of business

models for customers including New Product Introduction, Original Design and

Manufacturing, Collaborative Design and Manufacturing and Joint R&D and Contract

Manufacturing. All of this will benefit global companies setting up base in India, who

can leverage Elcoteq's expertise to manufacture in India or for the Indian market.

Nokia and Vodafone to expand use of S60 as a standard platform

Nokia Flexi WCDMA Base Station to support large portfolio of frequency

bandsNokia start making Windows Mobile phones or forget North American market

altogether. Microsoft and Nokia will announce that from now on Nokia will be

making Windows Mobile phones, but the facts are that now in the USA with regard to

mobile phone market share, Nokia is totally losing the battle … both in regular mobile

phones area and in smartphone market.

1 Worldwide Mobile Phone Sales Grew 21 Percent in 2006

2 One billion mobile phones sold but not to end users

3 Vendors outside the top six continued to lose market share

4 BenQ dropped out of the top six vendors into ninth place

India is all set to become the second largest market of mobile handsets by 2010,

according to an official of Nokia, the world's largest mobile manufacturer. "India is

the fastest growing mobile market in the world with six million subscribers adding

every month," Nokia India.

"The mobile industry in India, which is now holding the third position in the

world after China and the US, will be in the second position by next three years - in

terms of handsets sold in this country," he said while launching the new 6300 Nokia

model here.US will hopefully be in the third position after China and India. "The

mobile industry in India has taken off in a big way,".

Nokia will keep expanding its venture in this country keeping in mind the

requirements of the Indian market.

WHY MOBILE AND MEDIA WANT IT

Airtel started offering services like Dial-a-Pizza or travel information in 1995.

It launched Hello Tunes in 2004. That, says HemantSachdev, director (marketing and

communications), Bharti Tele-Ventures, was the first big learning on mobile data.

"The Indian consumer is willing to pay a premium for VAS," he says. And mobile

companies need that premium as the pressure on voice revenues keep increasing.

Consider the math. The effective rate per minute has moved from Rs 1.50 to Re 0.95.

Most telecom operators have squeezed costs as much as possible.

According to Don Price, director (networks), costs per minute have been chopped

from Rs 1.25 to Re 0.87. "It is on its way to becoming Rs 0.8.," he says. Yet average

revenues per user and margins keep falling. The sheer momentum of growth, the

number of operators and the volume of usage means that the downward pressure on

costs continues. At Rs 6 per minute, Airtel's 646 services make much more money

than the average Rs 1-2 per minute that voice does.

Typically, data sells at anywhere between Rs 3-30. The Lehman Brothers report says

that as data share goes up to 60 per cent or more, the earnings before interest, taxes,

depreciation and amortisation (EBITDA) from data revenue could go up to 65 per

cent or more. Compare that to 30 per cent or so from voice.

Getting those margins is a bit chicken and eggish. Till there are enough subscribers, it

makes no sense to invest and subscribers will not ask for it if there isn't enough on

offer. If data revenues jump substantially, then a 3G network (with more bandwidth or

ability to carry data) is a necessity.

That would mean an investment of about $50 million-88 million depending on the

options. This is just for one operator. Does a Rs 2,300-crore market, growing at 30 per

cent, justify it? Yes, say operators across the world. All of them have bid crazy prices

for 3G licences.

For media companies, currently, the mobile connection is more about interactivity and

less about revenues. Radio Mirchi gets 40,000-45,000 SMSes a day. As a radio

station, it is a great tool for engaging listeners. Ditto for TV, newspaper or outdoor

companies. Even within this interactivity, there is some money to be made like Star

did with KBC2. For media buying and planning firms such as Group M, all the work

with mobile phones is "brand centric," says TusharVyas, its national director

(interaction).

That means that if Fa's creative and media plan demands that there should be a mobile

play, say, a contest, poll or plain branding, then Group M will look at content or

partnerships where it can promote Fa on the mobile phone. The only segment where it

has converted into serious money is music. Now music companies are moving a step

further.

Saregama makes half its money on ringtones through its catalogue. It "sells nothing

but ringtones. With new releases, we have the rights to images and wallpapers", says

Sarkar. That brings in more revenue from mobile rights.

WHY DO THEY FIGHT?

Of Reliance's 18 million subscribers, more than 10 million use data regularly.

At the end of December 2005 R World, its mobile portal had 5.3 million visitors.

About 32 per cent of the portal's (undisclosed) revenues came from ringtones and 20

per cent from films. That means roughly half the data revenues of one of the largest

operators in India come from film-related content. Games and cricket form a

respectable 8-9 per cent each.

That is one of the reasons why the Anil DhirubhaiAmbani Enterprises find that having

a share in all pieces of the media pie -- TV, radio, film production, distribution and

retail -- makes sense. Other operators, too, are trying to create in-house content, some

to avoid commoditisation and others to keep a higher share of revenue. This is where

we come to the big bugbear between the two; revenue sharing.

Currently, the Indian market is split roughly at 60:30:10 between mobile operators,

media companies and aggregators. Mobile operators argue that they make the

investment and control the consumer, so they should keep a lion's share of the mobile

data pie.

Prasad of Reliance says that internationally, operators pay revenue share only on the

basis of actual downloads. In India, the figure on which this is calculated includes

network usage and subscription fee and, therefore, the percentage that comes back to

the operator has to be larger. Media companies protest about this but are largely

helpless. That is because mobile companies simply use the fact that media is a

fragmented business, where the next guy will undercut you to its advantage.

Eventually, this will change. "In most developed mobile entertainment markets, we

have seen operator share come down to the 10-20 per cent range. It has in

consequence led to fantastic growth," says Sarronwala.

In Japan, the operator share is 9 per cent, in the Philippines, it is 60-70 per cent and in

China, the second largest VAS market after Japan, it is 15 per cent. As the total

amount of data revenues go up, the operator share goes down and his dependence on

the content companies increases. So, expect the friction levels to rise as mobile TV

and much more richer content come closer.

WHAT IS THE WAY OUT?

Mobile companies might do well to take a leaf out of media companies' books

-- owning a platform does not necessarily make you good at content. Many of the

good film companies and almost all the music companies do not own any retail

presence. A user is willing to pay to watch on Ten Sports the same cricket match that

he gets on Doordarshan for free.

It is not control over content, but the ability to offer loads of it that is relevant and

connects, which will distinguish one good mobile data service from another. Maybe

joint ventures or equity stakes in content companies will help. But they are just

security blankets. Ultimately, in a fragmented, oversupplied content market, it should

be easy to get good stuff if you have a sense of what will work and what won't. Media

companies have a nose for it, mobile companies don't. You could argue that, maybe,

even media companies are not clear on how to create programming for this new

'mobile snacker'.

There are several things that could happen. Mobile and media companies could build

the skills (difficult) or buy the talent to do it. They could join hands to do it. A third

set of companies such as Hungama or Soundbuzz might turn out to be better at

picking and digitising what works best.

So, as the need for differentiated content, especially with TV, songs, news and more

audio-visual content becoming important, expect much more poaching from

programming departments of TV channels, and lots and lots of loose alliances.

Why TV is not yet mobile

The moment you start discussing mobile TV is when all the debates over mobile data

services or its possibilities come to a halt. That is because showing TV on the mobile

is essentially about high-powered terrestrial broadcasting that demands two things.

One is spectrum or the space on the airwaves that mobile networks need, and two is

handset capability.

Take the first one. Spectrum determines the quantity of data that networks can send

over the airwaves or the bandwidth. A good mobile TV experience needs 256 kpbs.

That will allow you to watch the complete video of a song or a short mobile film or a

8-10 minute episode of a popular show.

Spectrum, however, is allocated by the government "in eyedrops," says Bharti's Price.

Much of it, due to GSM operators such as Hutch and Bharti, has not yet been freed by

the defence services. The result is that India has one of the lowest spectrum allocation

per GSM operator in the world, about 6 Mhz against, say, over 25 in the UK or over

20 in China. Most of them fool around with the existing spectrum sometimes at the

cost of voice quality, to offer data services.

"Where 3G (high-bandwidth networks) comes is when mobile TV will happen in

India," says Popli. The 'when', says Neeraj Roy, CEO, Hungama, "has to be addressed

in 12 months."That is if data has to keep growing. The European experience shows

that mobile TV can push up the data revenues from 10 per cent to 15 per cent for

operators. The usage is similar to what people do at home, says Olivier Pascal,

consultant, Analysys Consulting.

In the UK or Japan, handsets are sold with pre-configured buttons. So if you buy a

Nokia handset, it has a button with an Internet icon. All you have to do is press that.

In India, since bundling is not encouraged, the kind of work that operators and

handset manufacturers can do to customise handsets for ease of actual use of operator

linked services is limited.

The third, albeit smaller, challenge is "the size of real estate (screen) on which the

message or content can be displayed," says Singh. But even he and most others agree

that eventually mobile TV will be about plugging into entertainment or information

on the go. You will watch TV at home, listen to radio in the car, and so on. The

mobile cannot replace other media, it will simply complement it, like the iPod.

So, can TV go mobile and can mobile become media? There's no doubt that

TV/entertainment will be the flagship product or the driver for other products on the

mobile. The likelihood that you will spend money clicking the 'buy' option on

something while watching a good quality short sitcom is higher than if you were just

downloading a song. The ability to make consumers spend more time and money will

depend on the mobile operators' ability to crack the content game.

INTRODUCTION TOMOBILE MANUFACTURING COMPANIES MAJOR

KEY PLAYERS IN MOBILE PHONE INDUSTRY

NOKIA

SAMSUNG

SONY ERICSSON

LG

NOKIA

Nokia Corporation is a Finnish multinational communications corporation

headquartered in Keilaniemi, Espoo, a city neighbouring Helsinki. It manufactures

mobile electronic devices, mostly mobile telephones and other devices related to

communications, and in converging Internet and communications industries, with

130,000 employees in 120 countries, sales in more than 150 countries and global

annual revenue of over €38 billion and operating loss of €1 billion as of 2011. It was

the world's largest manufacturer of mobile phones in 2011, with global device market

share of 23% in the second quarter. Nokia produces mobile devices for every major

market segment and protocol, including GSM, CDMA. Nokia offers Internet services

such as applications, games, music, maps, media and messaging through its Ovi

platform. Nokia's joint venture with Siemens, Nokia Siemens Networks produces

telecommunications network equipment, solutions and services. Nokia also provides

free-of-charge digital map information and navigation services through its wholly

owned subsidiary Navteq.

Nokia is a public limited-liability company listed on the Helsinki, Frankfurt, and New

York stock exchanges, and plays a very large role in the economy of Finland,

accounting for about a third of the market capitalization of the Helsinki Stock

Exchange (OMX Helsinki) in 2007.

The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global

brand in the Interbrand/BusinessWeek Best Global Brands list of 2011. It is the 14th

ranked brand corporation in Europe (as of 2011), the 8th most admirable Network and

Other Communications Equipment company worldwide in Fortune's World's Most

Admired Companies list of 2011, and the world's 143rd largest company as measured

by revenue in Fortune Global 500 list of 2011.

On 11 February 2011 Nokia announced a partnership with Microsoft; all Nokia smart

phones introduced since then were to run under Microsoft's Windows Phone (WP)

operating system. On 26 October 2011 Nokia unveiled its first Windows Phone

handsets, the WP7.5 Lumia 710 and 800.

Type - Public company

Industry- Telecommunications, Internet, Computer software

Founded - Tampere, Finland, Russian Empire (1865) incorporated in Nokia (1871)

Founders - Fredrik Idestam, Leo Mechelin

Headquarters - Espoo, Finland

Area served - Worldwide

Keypeople - JormaOllila (Chairman), Stephen Elop (President & CEO)

Products - Mobile phones, Smartphone’s, Mobile computers, Networks Services,

Maps and navigation, music, messaging and media Software solutions

Website - www.nokia.com

SAMSUNG

Samsung Group is a South Korean multinational conglomerate company

headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and

affiliated businesses, most of them united under the Samsung brand, and is the largest

South Korean chaebol.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's

largest information technology company measured by 2011 revenues) Samsung

Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues)

and Samsung Engineering and Samsung C&T (respectively the world's 35th- and

72nd-largest construction companies). Other notable subsidiaries include Samsung

Life Insurance (the world's 14th-largest insurance company), Samsung Everland (the

oldest theme park in South Korea) and Cheil Worldwide (the world's 19th-largest

advertising agency measured by 2010 revenues).

Samsung produces around a fifth of South Korea's total exports and its revenues are

larger than many countries' GDP; in 2006, it would have been the world's 35th-largest

economy. The company has a powerful influence on South Korea's economic

development, politics, media and culture, and has been a major driving force behind

the "Miracle on the Han River".

Type- Public

Industry - Conglomerate

Founded - 1938

Founders - Lee Byung-chull

Headquarters - Samsung Town, Seoul, South Korea

Area served - Worldwide

Key people - Lee Kun-hee (Chairman and CEO), Lee Soo-bin (President, CEO

ofSamsung Life Insurance)

Products - Consumer electronics, shipbuilding, telecom, engineering and

construction, financialservices, chemicals, retail, heavy industries,

entertainment, apparel, medical services

Subsidries- Samsung Electronics, Samsung Life Insurance, Samsung Heavy Industry,

Samsung C & T etc.

Website- www.samsung.com

SONY ERICSSON

Sony Mobile Communications AB (formerly Sony Ericsson Mobile Communications

AB) is a multinational mobile phone manufacturing company headquartered in

London, United Kingdom 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 company Ericsson. Sony acquired Ericsson's share in the venture

on February 16, 2012.

Type - Aktiebolag

Industry - Telecommunications

Founded - October 1, 2001 (as Sony Ericsson) February 16, 2012 (as Sony Mobile)

Headquarters - Hammersmith, London, United Kingdom

Area served - Worldwide

Key people - Kunimasa Suzuki (President and CEO), Bob Ishida (EVP and Deputy

CEO)

Products - Mobile phones, Mobile music devices, Wireless systems, Wireless voice

devices

Parent- Sony Corporation

Website-www.sonymobile.om

LG

LG Corp. is the second-largest South Korean conglomerate company following

Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong,

Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and

telecommunications products and operates subsidiaries like LG Electronics, LG

Display, LG Telecom and LG Chem in over 80 countries.

LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in

1947. In 1952, Lak-Hui (pronounced "Lucky", currently LG Chem) became the first

Korean company to enter the plastics industry. As the company expanded its plastics

business, it established GoldStar Co. Ltd., (currently LG Electronics Inc.) in 1958.

Both companies Lucky and Goldstar merged and formed Lucky-Goldstar.

Goldstar produced South Korea's first radio. Many consumer electronics were sold

under the brand name GoldStar, while some other household products (not available

outside South Korea) were sold under the brand name of Lucky. The Lucky brand

was famous for its line of hygiene products such as soaps and HiTi laundry

detergents, but most associated with its Lucky and Perioetoothpaste.

Type - Public

Industry - Conglomerate

Founded - 1947 Headquarters Seoul, South Korea

Area served - Worldwide

Key people - Koo Bon-Moo (Chairman & CEO), Yu Sig Kang (Vice Chairman &

Co-CEO)Juno Cho (EVP& COO)

Products - Electronics, chemicals, telecommunications, engineering Revenue

Subsidiaries - LG Electronics, LG Display, LG Telecom, LG Chem, LG Life

Sciences, LG Solar Energy

Website - www.lgcorp.com

RESEARCH METHODOLOGY

“All progress for born of inquiry. Doubt is often better than over confidence for it

leads to inquiry and inquiry leads invention”.

Research has its significance in solving various operational and planning

problems of business and industry. Operational Research and Market research along

with Motivational Research are considered crucial and their results exist in more that

one way in taking business decisions.

Market Research is the investigation of the structure and development of

market for the purpose of formulating efficient policies for the purchasing, production

and sales. Operational research refers to the application of mathematical, logical and

analytical techniques to the solution of business problems for cost minimization or

maximization for the profit which can be termed as optimization problems.

Motivational Research of defining why people behave as they do is mainly

concerned with the determination of motivations underlying their consumer behavior.

Research Methodology is a way to systematically solve the research problem,

which is a science of studying how research is done scientifically. Thus research

methodology encompasses the research methods or techniques research results are

capable at being evaluated either by the researcher himself or by others.

OBJECTIVES OF THE STUDY:

To know about the consumer behavior level associated with different mobile

phones

To find out the consumer satisfaction towards the various Mobile Phones

To know how consumer preferences changes as technology changes

To know impact of income level, living standard, education on consumer

prefaces regarding various mobile phones

RESEARCH DESIGN: A research design is an arrangement of condition for

collection and analysis of data in a manner that aims to combine relevance to research

purpose with economy in procedure.

In fact the research design is the conceptual structure with in which the research is

conducted. Research design is needed because it facilitates the smooth sailing of the

various research operations. There by making research as efficient as possible

yielding maximal information with minimal expenditure of efforts, time and money.

Area of Study: Kurukshetra

A survey is done on users of mobile-handsets.

DATA COLLECTION

To get the views of the customers towards the preferences of the mobile phones, the

primary data has been collected with the help of questionnaire addressed to the 200

hundred randomly selected customers of the selected players in mobile phones i.e

Samsung, Nokia, Sony Ericson and LG. Secondary data has been collected with the

help of websites of the selected companies.

ANALYSIS OF DATA

The collected data has been analyzed with the help of various statistical tools such as

Bar diagrams, pie charts, Tables etc.

LIMITATIONS OF THE STUDY

Though every effort was put in to make this report authentic in every sense,

yet there were few factors, which might have their influence on the final report.

1. The study was confined only to the Kurukshetra and the sample size is about

200 mobile users. As such the findings are not generalizable.

2. Some respondents might not reply well to some of the questions and hence

their response may not reflect the real picture.

3. Because of the time limitation and money constraint to complete the project, I

could collect the data from 200 mobile-users only.

4. Sample size, which was taken, may not be the true representatives of the

population.

CHAPTER-2

REVIEW OF LITERATURE

1. Robins (2008) the paper is about marketing the next generation of mobile

telephones. The study is about third generation of cell phone technology,

what is usually known as “3G” for short. There are various issues about that

new innovative. One is how to price 3G handsets and services at a level

which will enable telephone operating companies to recoup the high prices

they have already paid to governments for operating licenses. Second the

technology is not yet complete, there are no agreed international standards

and companies do not yet know what new services the technology will prove

capable of delivering effectively. All variants of 3G remain dependent on

largely unproven technology. Marketing 3G is going to be about services

which are new and in many cases, yet to be designed. At the same time, it

will involve services which can also be obtained by computer and other

means. It follows that the marketing task will be high risk. First, 3G has no

obviously unique selling proposition to build on except, perhaps, the

combination of live video and easy portability. Second, the potential

customers have not yet had adequate opportunity to signal their service likes

and dislikes. Third, the cost and complexity of service provision leave doubt

about the market’s reaction to price.

2. Debnath (2008)This study explain that the prime focus of the service

providers is to create a loyal customer base by benchmarking their

performances and retaining existing customers in order to benefit from their

loyalty. With the commencement of the economic liberalization in 1991, and

with a view to expand and improve telecom infrastructure through the

participation of the private sector, the Government of India permitted foreign

companies holding 51 percent equity stake in joint ventures to manufacture

telecom equipment in India. The Indian Government has announced a new

policy, which allows private firms to provide basic telephone services. There

had been a monopoly of the state-owned department of telecommunications.

However, several companies are expected to benefit from the policy change.

3. Bhatt (2008), in his study titled “A Study of Mobile Phone Usage Among the

Post Graduate Students”analyzed that it is important for mobile carriers,

service providers, content developers, equipment manufacturers, as well as

for parents and young people alike that the key characteristics of mobile

technology is well understood so that the risks associated with its potentially

damaging or disruptive aspects can be mitigated. This paper has tried to

compare the usage difference by gender with respect to the difference

manufacturing and service provider companies.

4. Jha (2008),in his study analyzed thatit is the youth which is the real growth

driver of the telecom industry in India. Considering this fact, the paper is an

attempt to give a snapshot of how frequently young people use their mobile

phones for several embodied functions of the cell phones. Data was collected

from a sample of 208 mobile phone owners, aged between 20 and 29. The

study sheds light on how gender, monthly voucher amount and years of

owning mobile phones influence the usage pattern of this device.

5. Kalavani (2006)in their study analyzed that majority of the respondents have

given favourable opinion towards the services but some problems exist that

deserve the attention of the service providers. They need to bridge the gap

between the services promised and services offered. The overall customers’

attitude towards cell phone services is that they are satisfied with the existing

services but still they want more services to be provided.

6. Kumar (2008),in their study titled “Customer Satisfaction and

Discontentment vis-a-vis BSNL Landline Service: A Study”analyzed thatat

present, services marketing plays a major role in the national economy. In the

service sector, telecom industry is the most active and attractive. Though the

telecom industry is growing rapidly, India's telecom density is less than the

world's average telecom density as most of India's market is yet to be

covered. This attracts private operators to enter into the Indian telecom

industry, which makes the Bharat Sanchar Nigam Limited (BSNL) more alert

to run its business and survive in the market.

7. Seth et al (2008), in their study titled “Managing the Customer Perceived

Service Quality for Cellular Mobile Telephone: an Empirical

Investigation”analyzed that there is relative importance of service quality

attributes and showed that responsiveness is the most importance dimension

followed by reliability, customer perceived network quality, assurance,

convenience, empathy and tangibles. This would enable the service providers

to focus their resources in the areas of importance. The research resulted in

the development of a reliable and valid instrument for assessing customer

perceived service quality for cellular mobile services.

8. Fernandez (2007) in their study titled “Understanding Dynamics in an

EvolvingIndustry: Case of Mobile VAS in India”analyzed that Mobile Value

Added Services (VAS) is a rising star in the fast growing wireless business.

In the paper, attempt is made at understanding the strategic dynamics of the

evolving environment within which the Indian players are operating, the

challenges and structure of the same. Our literature and industry review

indicates that - while the value chain of industry is complicated yet one can

observe the bipolar nature of bargaining powers between mobile network

operators and content aggregators.

9. Bismut (2006)in his study titled “Competition in European Telecom

Markets”analyzed thatin recent years the European telecommunications

market has witnessed major developments, with rapid expansion in access to

telecommunications networks and a surge in the number of available services

and applications. While many factors have contributed to the transformation

of the telecommunications industry, competition has played a key role in

driving telecom players to invest in new technologies, to innovate and to

offer new services.

10. Kalpana and Chinnadurai (2006) in their study titled “Promotional

Strategies of Cellular Services: A Customer Perspective” analyzed that the

increasing competition and changing taste and preferences of the customer’s

all over the world are forcing companies to change their targeting strategies.

The study revealed the customer attitude and their satisfaction towards the

cellular services in Coimbatore city. It was found that advertisement play a

dominant role in influencing the customers but most of the customers are of

opinion that promotional strategies of cellular companies are more sale

oriented rather than customer oriented.

11. Fredric (2008) analyzed the importance of yield management and

discrimination pricing in telecommunication sector. Yield management is the

process of allocating the right type of capacity or inventory unit to the right

kind of customer at the right price so as to maximize revenue or yield. Yield

management and dynamic pricing strategies could be usefully applied to

preserve and increase profitability. Yield management techniques can help

telecom operators and similar companies to optimize the benefits they can

derive from a subtle management of information networks and partnerships.

However, such an approach is more difficult to implement in the

telecommunications industry than in the airlines sector because of the

difficulty to control (and sometimes to refuse) network access to customers

12. Chris (2003) has analyzed ‘Telecom advertising in print media.’ This

research attempted to investigate why Telecom theme are used in

advertisement, and the motives that lead companies and advertisers to use

sport celebrities and sport concept in advertisements. From study it has been

revealed that the appearance of sport celebrities in advertising endorsement

occurred more often in Telecom magazines than in other magazines, because

their target group is more acquainted with athletes. The sport celebrities that

dominated each printed media are related with their target group

characteristics.

CHAPTER-3

DATA ANALYSIS & INTERPRETATION

Q. What is your respondent classification?

Classification %age

Student 47 %

Private Service 28 %

Govt. Service 20 %

Self-employed 5 %

Student Private Service Govt. Service Self-employed0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%47%

28%

20%

5%

ANALYSIS:

The analyzed data reveals that 47% students were attended to filling the

questionnaire that stands 1st, 28% private servicemen which stands 2nd, 20% Govt.

Employees which stands 3rd and rest 5% businessmen were attended in survey to fill

the questionnaire which stands 4th.

Q. Which Mobile Handset do you have?

BRAND %age

NOKIA 47%

SAMSUNG 39%

SONY ERICSON 10%

LG 4%

NOKIA SAMSUNG SONY ERICSON LG

47%39%

10%4%

ANALYSIS:

47% of the users having a Nokia Mobile phone, 39% have Samsung Mobile Phone

and 10% users have Sony Ericsson. Rest of them has LG. It indicates that Nokia has

highest Share in the market.

Q. How long you are using Cellphones?

Uses Timings %age

Since 5 yrs. 8%

Since 3 yrs. 18%

Since 2 yrs. 35%

Since 1 yrs. 39%

Since 5 yrs. Since 3 yrs. Since 2 yrs. Since 1 yrs.

8%

18%

35%

39%

ANALYSIS:

The analyzed data reveals that 39% customers are using cellphone since 1 year

which stands 1st, 35% customers are using the cellphone since 2 years which stands

2nd, 18% customers are using the cellphone since 3 years which stands 3rd and rest 8%

customers are using mobile phones since 5 years which stands 4th

Q. Which type of mobile you have?

Type of Mobiles %age

Black & White 32%

Colored 68%

32%

68%

Black & WhiteColored

Analysis:

The above diagram shows that 32% respondents have Black & White mobiles

and 68% respondents said that they have colored mobiles.

Q. Do you want to replace your present mobile with new mobile?

Options No. of Respondents

Yes 89%

No 11%

Analysis:

Mostly Respondents wants to change their Mobile phone with latest version of

Handset. Only 11% Respondents says that they will not change their handset with

new Mobile phone.

Q. Why are you using a Mobile Phone?

Categories %age

Multimedia 16%

Status Symbol 30%

Simple 27%

Business 15%

New version 12%

MultimediaStatus

Symbol SimpleBusiness

New version

0

5

10

15

20

25

30

16

30

27

15

12

ANALYSIS:Mostly persons used the cells for Status Symbol. After that there is a share of Simple

users. 15% users using the handsets for the business purpose.Rest of the users use

because of launching the new version in the market.

Q. What kind of services you are using?

Services %age

GSM 55%

CDMA 45%

GSMCDMA

ANALYSIS:

The analyzed data reveals that 55% respondents are using the GSM (Global

System for Mobile Communication) technology which stands 1st and rest 45%

respondents are using CDMA technology on their handsets which stands 2nd.

Q. What features do you see while purchasing a Mobile Phone?

Categories %age

Internet 17%

Price 28%

Applications 32%

Battery Backup 7%

Camera Clarity 16%

Internet Price Applications Battery Backup Camera Clarity

17%

28%

32%

7%

16%

Analysis:

Applications is the most important feature that users see while purchasing a new

handset. 28% users consider the price factor to purchase a handset. After that they will

see the Internet & Camera clarity. Rest of the consumers see battery backup.

Q. Who Influence you to purchase a Mobile Phone?

Categories %age

Friends 34%

Advertisement 28%

Family 22%

Dealers 11%

Others 5%

Friends Advertisement Family Dealers Others

34

28

22

11

5

ANALYSIS:

Friends influencing the most while purchasing a mobile phone. 28 of the users

influenced by Advertisement. Family and Dealers are also a important source of

influencing the buying decision. Rest of the users are influenced by others.

Q. How much are you willing to spend on new handset?

Expense % age

0 – 5000 45%

5001-10000 44%

10001-15000 8%

15001 & above 2%

ANALYSIS:

The analyzed data reveals that 46% customers are willing to spend upto

Rs.5000 on their handsets which stands 1st, 44% customers are willing to spend from

Rs.5001 to Rs.10000 range on mobile sets which stands 2nd, 8% customers are willing

to spend from Rs.10001 to Rs.15000 range on mobile sets which stands 3rd and rest

2% customers are willing to spends more than Rs.15000 on mobile sets which stands

4th. Those customers who are willing to spend more than Rs.15000 on mobiles set

they think that these sets are luxury goods for them.

Q. Where do you prefer to buy mobile handsets?

Buying Place %age

Showroom 76%

Local Market 24%

ShowroomLocal Market

ANALYSIS:

The analyzed data reveals that 76% customers prefers to buy their mobile

handsets from company showrooms which stands 1st and rest 24% customers prefers

to buy their mobile handsets from local market or retailers which stands 2nd.

Q. Which handset manufacturer provides mobile at competitive prices?

Brands %age

Nokia 48%

Samsung 33%

LG 6%

Sony-Ericsson 13%

NokiaSamsung

LGSony-Ericsson

0%

5%10%

15%20%

25%30%

35%40%

45%50%

48%

33%

6%13%

ANALYSIS:

The analyzed data reveals that 48% customers are having ideal Nokia mobile phone

for their present and future aspect which stands 1st, 33% customers said that their ideal

mobile set is Samsung which stands 2nd, 13% customers said their ideal mobile set is

Sony-Ericsson which stands 3rd, 6% customers said their ideal mobile set is LG which

stands 4th.

CHAPTER-4

FINDINGS, SUGGESTION & CONCLUSION

FINDINGS

Most of the mobile users are using the GSM technology. Most of the

respondents said that the features of their mobile-handset are good.

People like Mobile Phones because of their different features.

From my survey the highest market share is of Nokia and after that Samsung,

Sony-Ericsson and rest is of LG.

Less variety of handset of the other mobile companies make Nokia gives very

good position in the market.

Applications are the most important factor which is consider by the consumers

of mobile handset.

Indian respondent mindset is in favour of Nokia handset due to low cost and

high durability.

SUGESSTIONS

Through almost everyone think of the mobile in good terms, there is

something holding them back from actually going for it. The reasons and possible

recommendations can be-

Mobile handsets should be engaged in some sales promotion methods, some

schemes etc. to generate more customers. The reason behind the success of Nokia

is some scheme like add-ons and free connections along with new mobiles. The

organizations should come with new, innovative promotional methods and

schemes in order to boost their sales.

Advertising standard should be maintained, if possible improved, as advertisement

have contributed immensely to the awareness and usage of new methods with new

features.

Lower end models should also be manufactured with only essential features for

more rural market penetration.

Manufacturer should come up with more colorful, body covers and even

customized

Manufacturer should come up with more colourful, body

covers and even customized body covers, as a large number of

consumers give lot of importance to the same.

Manufacturers should also supply a feed back form along with

the handset, so as to have a first hand knowledge about the

needs of the customers.

CONCLUSION

The Indian mobile-handset industry as we see is relatively recent in growth.

The market is growing & different target markets are emerging. According to a

survey, demand will grow tremendously as in rural India, the lower middle class will

expand rapidly. There is still tremendous untapped potential in providing value to

customers through operational excellence.

It has been concluded that on the one hand the customers are somewhat satisfied but

on the other hand, still some improvements are required. So, the mobile-handset

segment is flooded with the new models from new & existing players and moreover,

lot many models are waiting to hit the ramp in the coming years.

The main reason behind people not wanting to have mobile set is the lack of

proper information. Moreover, people don’t want to come out of cocoon of their

seemingly uncomplicated life. They seem satisfied with their old ways and are

wary of modern, new age products.

The most important factor that attracts the people towards mobile sets is the

Battery backup factor. This is the most important reason and for this, people feel

persuaded to buy it.

Most of the people who do not want to have one side it is a hassle and total waste

of money.

Out of the mobile sets, one that emerged the favorite of people is the Nokia

Handset, which is followed by Samsung, Sony-Ericsson.

Not much difference was seen in expectations of different categories of people i.e.

Students, businessmen, Govt. servants and Private Service. Though every one had

one’s own opinion but the results were almost the same for all the categories.

BIBLIOGRAPHY

AUTHOR NAME, STUDY NAME, JOURNAL NAME, VOL.NO,

ISSUE. NO , PAGE NO.

Schiffman & Kanuk, “Consumer Behaviour”, Edition, Publisher

Consumer Behavior by Schiffman&Kanuk

Marketing Management by C.N. Sontakki

Marketing Management by Philip Kotler

Research Methodology by C.R. Kothari

www.samsung.com

www.sonymobile.com

www.nokia.com

www.lg.com

www.wikipedia.org

QUESTIONNAIRE

Name : __________________________________

Age : __________________________________

Income : __________________________________

Gender : M F

1. What is your respondent’s classification?

Student Private Service

Govt. Service Self-employed

2. Which Mobile Handset do you have?

Nokia Samsung LG

Sony-Ericsson

3. How long you are using Mobile phones?

Since 5 yrs. Since 3 yrs.

Since 2 yrs. Since 1 yrs.

4. Which type of mobile you have?

Black & White Color

5. Do you want to replace your present mobile with new mobile?

Yes No

6. Why are you using a Mobile Phone?

Multimedia Status Symbol Simple

Business New version

7. What kind of services you are using?

GSM WLL

8. What features do you see while purchasing a Mobile Phone?

Internet MMS Applications

Battery Backup Camera Clarity

9. Who Influence you to purchase a Mobile Phone?

Friends Advertisement Family

Dealers Others

10. How much are you willing to spend on new handset?

0 – 5000 5001-10000

10001-15000 15001 & above

11. Where do you prefer to buy mobile handsets?

Showroom Local Market

12. Which handset manufacturer provide mobile at competitive prices?

Nokia Samsung LG

Sony-Ericsson