Minor Project of Samsung and Nokia
Minor Project of Samsung and Nokia
Minor Project of Samsung and Nokia
ON
MARKETING STRATEGY OF SAMSUNG AND NOKIA
Submitted in partial fulfillment for the award of the degree of
BACHELORS OF BUSINESS ABMINISTRATION
Under the guidance of
MS. ANKITA POPLI
ASSISTANT PROFESSOR, RDIAS
Submitted By
TWINKLE KASHYAP
Enroll. No. 04815901714
BBA, SEMESTER 3rd
Batch 2011-2014
PROJECT REPORT
ON
MARKETING STRATEGY OF
NOKIA & SAMSUNG
ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported
me during the writing of this assignment. My deepest thanks to Lecturer Ms.
Ankita Popli the Guide of the project for guiding and correcting various
documents of mine with attention and care. She has taken pain to go through
the project and make necessary correction as and when needed. I express my
thanks to the Prifor extending his support. Thanks and appreciation to the
helpful people at Rukmini Devi Institute Of Advanced Studies, for their
support. I would also thank my Institution and my faculty members without
whom this project would have been a distant reality. I also extend my
heartfelt thanks to my family and well-wishers.
TABLE OF CONTENTS
CHAPTER 1
INDUSTRY PROFILE
CHAPTER 2
COMPANY PROFILE
9
CHAPTER 3
RESEARCH METHODOLOGY
38
CHAPTER 4
COMPARISON BETWEEN NOKIA AND SAMSUNG
42
Questionnaire
FINDINGS
58
LIMITATIONS
59
RECOMMENDATION
60
CONCLUSION
61
BIBLIOGRAPHY
63
CHAPTER 1
INDUSTRY PROFILE
INDUSTRY PROFILE
Growth in India's mobile sector, from a humble start in the mid-1990s, has
really picked up pace in recent years, aided by higher subscriber volumes,
lower tariffs and falling handset prices. Home to a clutch of global operators
working with local companies, India had almost 350 million mobile
subscribers (including GSM & CDMA) in early 2008.
The market was growing at an annual rate of around 60% and while the
ARPU has been steadily declining as competing operators offer cheaper
tariffs the usage levels have been high, thus slowing the decline of ARPU.
By 2008 there was a major push to take mobile services into the poorer and
rural areas of the country. Driven by cheap call rates, low handset prices and
rising incomes among the estimated 300 million of the population that are
described as the country's middle class, the boom in India's mobile market
was continuing into 2008. Also operators were increasingly eyeing the
poorer rural areas a potential markets for their services. India has continued
to attract a lot of attention in the global telecom sector, especially from
foreign players interested in entering the Indian market.
India's mobile market finished in the 2007 year strongly with over 233
million subscribers in the sector according to the telecom regulator's figures
which cover GSM, CDMA and Wireless Local Loop (WLL). The Telecom
Regulatory Authority (TRAI) announced that the country had added a record
5
8.32 million subscribers during November 2007, up from 8.05 million one
month previously. This was followed by 8.16 million in December.
India's mobile operators have been attracting new customers with call rates
ass low as US$0.01 a minute and by offering cheap handsets. While offering
some of the lowest tariffs in the world, the market also had the highest usage
in the world with the average customer using 500 minutes a month. In the
meantime, the fixed line segment experienced falling numbers, with the
overall base dropping to 39.3 million by the year end.
There was much evidence by early 2008 of the continuing global interest in
the Indian telecom market. With the market showing some of the most
consistent growth in the world throughout 2007, it has been the focus of
much attention by both foreign and domestic players. Vodafone arrived on
the scene with a considerable impact, having successfully acquired
Hutchison Telecom's 67% stake in Hutchison Essar for US$11.1 billion -one of the largest ever single foreign investments in India. UK incumbent
BT also boosted its presence in India in 2007, expanding the footprint of its
managed network services and IT operations in the country through its
acquisition of i2i Enterprise.
By the end of 2004 and ten years after India had launched mobile services,
India had 47.4 million mobile subscribers, up from 28 million a year earlier,
after the national subscriber base had grown by 168per cent in 2004. A total
of 19.2 million mobile subscribers were added in 2004, compared with 17.5
million in 2003. GSM operators added more than 1.5 million subscribers in
2004 to end up with 37.4 million at the end of the year. CDMA operators
had 9.9 million at end-2004, up from 6.2 million at the end of 2003.
The Telecom Regulatory Authority (TRAI) announced in April 2005 that the
fiscal year ending March 2005 had seen what it described as 'unprecedented
growth' in telecoms service in India, with mobiles leading the way with 55
per cent growth rate. The main driver for the continuing high growth since
1996 had been the falling tariffs in a sector where the mobile operators have
been prepared to lose money to keep or win market share and have
consequently been fighting a fierce price war. Facing the prospect of
subscriber growth reaching saturation point in the larger cities, the country's
mobile operators were increasingly eyeing the vast rural market in the next
step in boosting mobile phone growth.
In March 2005 it was reported that the average per minute charge for mobile
services in India declined by 58 per cent to 1.20 rupee (US$0.27) during the
quarter ending December 2005, compared with 1.90 Rupee (US$0.043
during the previous quarter.
As an indication of how the Indian mobile market was expanding, In May
2005 LG Electronics India announced plans to build a GSM handset
manufacturing plant in Ranjangaon near Pune as part of plans to produce 20
million GSM handsets by2010. The company said the facility was part of
LG's plans to make India its global export hub. Sony-Ericsson also said it
saw significant new growth areas in emerging markets like India which were
helping drive sales of mobile phones.
The subscriber base has developed into a fairly stable mix of GSM
subscribers, (74 per cent market share at end-2007) and CDMA subscribers
(24 percent). The regulator initially referred to these CDMA service as WLL
(Mobile), or WLL (M). These CDMA services were differentiated from
WLL (Fixed), or WLL (F) services, which at the time were being included as
part of the fixed-line segment of the market. In 2006, TRAI started putting
the emphasis on the 'wireless' in WLL in WLL (F) and grouped all WLL
services with 'mobile' services.
Although well behind China a terms of the total size of its mobile subscriber
base, a comparison of net growth by end 2006 was interesting. Chain added
a total of just fewer than 6.1 million subscribers in December 2006, bringing
the total additions for the December quarter to just less than 18 million;
India, by contrast, added 6.25 million in December to being the total number
of additions to 19.5 million for the quarter.
Key players of mobile phones
L.G.
Nokia
Motorola
Samsung Mobile
Tata
Reliance
Sony Ericsson
Virgin mobile
Sony
CHAPTER 2
COMPANY PROFILE
10
Story of Nokia
Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is an
international communications company, focused on the key growth areas of
wire line and wireless telecommunications. Nokia is currently the world's
largest manufacturer of mobile telephones, with a global device market share
of approximately 38% in Q2 of 2007. Nokia produces mobile phones for
every major market segment and protocol, including GSM, CDMA, and WCDMA (UMTS). The corporation also produces telecommunications
network equipment for applications such as mobile and fixed-line voice
telephony, ISDN, broadband access, voice over IP, and wireless LAN.
Nokia's headquarters are located in Espoo, a neighbouring city of Finland's
capital Helsinki. It has R&D, manufacturing, and sales representation sites
in many continents throughout the world. Nokia Research Center, the
corporation's industrial research laboratories, has sites in Helsinki; Tampere;
Toijala; Tokyo; Beijing; Budapest; Bochum; Palo Alto, California and
Cambridge, Massachusetts. Major production factories are located at Salo,
Finland; Beijing, China; Dongguan, China; Chennai, India; Komrom,
Hungary and the Ruhr region at Germany. In March 2007, Nokia signed a
memorandum with Cluj-Napoca City Council, Romania to open a new plant
near the city in Jucu commune. Nokia's Design Departure has stayed at Salo.
Nokia plays a very large role in the economy of Finland. Nokia is by far the
largest Finnish company, accounting for about a third of the market
capitalization of the Helsinki Stock Exchange (OMX Helsinki); a unique
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colour display, a radio, some value added games, and many more such
features.
Our Companies Augmented Product: N Series- This series has been lately
introduced and has some extraordinary functions but for a cost which is its
price. These phones can adapt to various devices, further some of these
phones are Wi-Fi enabled.
Our Companies Potential Product: Nokia provides its users with even the
option of customization. Though these phones are not officially launched but
they are sold under the same brand Nokia. Examples: Voice operated
phones, Nokia Sirocco Gold phones, etc.
PRODUCT CLASSIFICATION
Based on functional life (Durable or Consumable): Phones are basically
durables which last for a long period. Based on utility (Consumer goods or
Industrial goods): Phones are consumer good. They can be put under
Homogeneous Shopping goods.
Intangible): They can be touched and seen hence they are tangible. Based on
price and quantity (Mass or Premium product): Premium products as they
are.
Product Assortment
Product Width- 1
Nokia is only into Manufacturing of mobile handsets hence its product width
is 1.
Product Length - (No. Of products)
Presently Nokia provides its customers with 111 various cell phones,
excluding the prototypes in it.
Product Depth- (No. of products into colours)
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Nokia provides its products in various colours. Though the product may be
the same but panels of various colours are available. Further it also provides
with small variations such as presence or absence of camera. Product
Consistency- Not applicable as Nokia is only in 1 field having no other
product lines
Branding Decisions
Nokia follows Umbrella as well as Company brand name strategy. Example
for Umbrella branding- N Series and E Series Example for Company brand
name Nokia ****
Brand Equity
Nokia uses Line extension as well as Multi branding. Its most common way
of introducing phones is by line extension, though it may sometimes evolve
a new brand which it has done in case of N-Series and lately in case of ESeries. In reality a multi brand turns into line extension over a period of
time. Co-Brands- Nokia had incorporated with Renault and had made a joint
advertisement. This advertisement promoted both.
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Product Category
Old
Old
New
Line Extension
Nokia ****
Brand Extension
Not applicable
Brand Name
Multi Brand
N-Series, E-Series
New
Pricing Strategy
15
New Brand
Not applicable
Nokia uses a pricing strategy that best suits the product. Keeping the product
in mind the company may go for mass distribution (Penetration) or else may
just tap a selected group (Skimming).
Market Skimming- N-95: As in case of this phone Nokia deliberately
focuses on only a selected rich group of consumers. The price is kept high as
their target is only to sell a limited number of phones at a higher margin.
Market Penetration- Nokia: The price of this phone is kept nominal. The
objective that Nokia wants to achieve through this phone is high market
penetration. The desired profits are attained by dealing in volumes.
P1
P2
Price/C
ost
P3
Experience Curve
T1
T2
T3
Analysing competitors cost price and offers- When 6610 was introduced,
other players namely Motorola and Sony Ericssons phones were not
considered to be reliable and user friendly, even though they were
marginally cheap. Further as Nokia was the market leader, the prices were
regulated by Nokia and other companies followed Nokia pricing decision
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making i.e. if Nokia reduced its price than other companies also ought to
reduce their prices.
Methods- Initially it was VALUE PRICING and now it is GOING RATE
PRICING
Selecting final price- Using all the above, the final price is arrived at.
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Promotion Mix
Use of AIDA model in Nokia N Series:
When Nokia launched its N Series of phones, it used the AIDA model to
great perfection. Before N Series phones came in the market, cell phones
were primarily used as a communication tool. Features like cameras, MP3
Players, Radio, and Bluetooth were the ones which used to catch attention of
the users. N Series phones revolutionised the cell phone industry with
features such as High Data Storage, High Quality camera, amazing sound
quality, professional usage etc.
Nokia first gained ATTENTION by highly publicising N Series phones as a
lifestyle product. Then it began to hold INTEREST of the people by coming
up with new models and variety of features in the N Series. This also helped
in arousing DESIRE in the market, which helped the company to make N
Series a great success despite the high prices of the phones.
a) Advertising
One of the strongest aspects of Nokia is its advertising strategy. Nokias ad
campaigns are have a short shelf life as they are known to be coming up with
one new model for each class(basic, mid, high end) in two months. So they
have something or the other new for the consumers, thanks to their excellent
innovation.
Nokia also come up with customised ads during specific events and
festivals. For example, they came up with an ad for Nokia 1110 during Holi
last year, with the concept that its a colour phone for the festival of colours.
b) Sales Promotion
Nokia does not stress much on Sales Promotion. This is because today the
cell phone market is moving really very fast with new models coming up
every third month, and even the consumers are ready to change at such a
short period.
c) Public Relations (PR)
Nokia has strong PR. They keep on doing some or the other new events,
programmes and publicity, so as to keep up with the brilliant image of the
company and also to enhance the brand equity.
One of the instance is they sponsored the COUNTDOWN event for NEW
YEAR 2007, wherein they used Nokia 5200 as their prime product. The
event featured NELLY FURTADO performing live. The event also
concentrated on GLOBAL WARMING.
d) Direct Marketing
Nokia does not perform Direct Sales activities on its official website
www.nokia.com. However, they do have contractual tie ups with other ecommerce websites like www.ebay.com, www.amazon.com etc.
19
Nokia does use DEMO style of Direct Marketing. They set up kiosks
extensively at various locations such as malls; business parks etc. and had its
latest product N 95 for demo. Nokia does not use Direct Mail or
Telemarketing styles of Direct Marketing.
Consumer Behaviour
1.
Social Factors
Social factors like feedback on a specific product from family, friends and
peers influence the decision of a person whether to buy a product or not. For
example, Nokia 6800 is technically one of the best phones by Nokia.
However, in terms of features it is similar to Nokia 6610. So, the review was
not good and hence it affected the sales of Nokia 6800.
2.
Personal Factors
3.
Psychological Factors
4.
Cultural Factors
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Place Mix
Market Channels- Nokia uses both dealership as well as direct selling
strategy. It has opened its retail outlet Nokia Priority as well has many
authorised dealers at various places. So Nokia uses 0 level, 1 level & 2 level
Market channel levels.
Consumer
Manufacturer
Dealer
Market Channel Levels 0 level (outlets and internet) - Nokia has their retail outlets Nokia
Priority also although they directly dont sell product on their website
but they have contractual tie ups with other e-commerce websites like
www.ebay.com, www.amazon.com etc.
1 level (Dept stores- Hypercity) - Nokia has authorised dealers at
various places it also provide their product at super malls like
Hypercity.
2 level (Wholesaler Retailer channel followed) This is the traditional
way of selling which Nokia does follow. Nokias products today are
available at almost all retail outlets dealing in mobile phones.
Vertical Marketing System
Administered (Nokia Priority Dealer) and Contractual (Various Dealership)
E-Series
Analysing customer needs and expectations- breakthrough technology and
utility
a) Objectives and constraints- high profit (market skimming) and
(constraint) low volumes
b) Identifying channel alternatives- 0, 1 and 2 level
c) Evaluating major alternatives- high profits by catering to the needs of
higher level income customers, which are increasing in towns and cities
d) Selecting channel members
e) Training channel members
f) Motivating channel members
g) Evaluating channel members
h) Modify channel arrangements
E-Series
Market segmentation and targeting strategy
Target marketing
The market today has large number of customers and to satisfy each of them
individually is impossible of any company. So what any company does is it
comes out with a product which satisfies majority of its consumers. This is
known as target marketing. The target marketing done by Nokia is also the
same it targets major portion of the market whose preferences are similar. It
does a market survey of understanding the consumers. It is not actually a
survey but look at the type of cell phone which a consumer is looking for in
the market through the consumers demand. Nokia targets the market by
targeting groups holding major part of demand and accordingly manufacture
the product.
22
Example: - Targeting the lower income group who are looking for a cheaper
cell phone in the market like Nokia 1100. In market targeting strategy Nokia
falls in product specialization pattern .As it specializes in the same product
line.
Market segmentation
Dr Philip Kotler defines market segmentation as a process of identifying
groups of buyers with different desires or requirements.
Levels of market segmentation:Mass marketing: - Nokia uses mass marketing techniques by manufacturing
cell phones which is suitable for major portion of market. Considering the
fact that there are a large number of families falling in the middle income
group in India, so their buying capacity is kept in mind and accordingly cell
phones are introduced in the market. In this way large number of market is
target and mass marketing is done by Nokia.
Segment marketing: - In segment marketing Nokia identifies groups having
similar wants, purchasing power, buying attitude etc and then comes out
with phones catering to different major groups and thus satisfying every part
of market with its product.
Example: - Cell phones 6610, 6610i, 2310 which have fm facilities and are
less expensive for middle class service people who travel in trains or via any
means of transport. This fm facility will attract such group of people and
will indulge such people in buying fm cell rather than normal simple cell
phones.
Niche marketing: - The latest E-series and N-series phones introduced by
Nokia are a classic example of niche marketing. Nokia with these latest cell
phones targeted the higher class businessmen in the society. These cell
23
phones had features like internet access, a large screen and all the possible
latest technology introduced till date. These cell phones are expensive and so
it clearly shows that Nokia target a small fraction of higher income group in
the urban society.
Local marketing: - When it comes to local marketing Nokia is not into
local marketing. But country wise products are manufactured i.e. according
to the demand of product in the market.
Individual marketing: - Nokia in not into manufacturing of product
according to customer specifications. Therefore Nokia is still not into
customized marketing.
Basis of market segmentation:a) Geographic segmentation
1) Urban
2) Semi urban
3) Rural
b) Demographic segmentation
1) Age
2) Income
c) Psychological segmentation
1) Personality
On the basis of the above factors market segmentation in Nokia takes place.
Positioning strategy
Positioning strategy is an image which a marketer develops in the minds of
the customer in other words perception about the product in the minds of
consumer which is formed by the positioning strategy of the marketer. Any
company prefers one consistent positioning message.
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25
As part of its distribution strategy, Nokia has ensured that it has a presence
in all 2,000 cities and towns that have cellular coverage. Nokia's distribution
network of over 30,000 outlets is roughly double that of its rivals, according
to industry sources. The other edge that Nokia has over its rivals is the large
portfolio of phones Unlike other consumer durables, a mobile phone is a
style statement much like the wristwatch. The design, style and colour
elements play an important role when consumers are choosing a phone.
Today it has the largest range of handset models to choose from. Nokia has
introduced phones at all price points, right from the mass market entry-level
phones to the mid-market colour and camera ph ones and also the high-end
exclusive phones. Nokia empowers the consumer in that it offers a choice
of more than one phone at every price point, says Kobita Desai, principal
analyst, telecom, with research firm, Gartner. Thus, in the mid-market
range, you can have a phone suited for the corporate types while another
would be aimed at techno-loving teenagers. Nokia lost its edge when
GSM's rival technology, CDMA, made its entry in 2009.
SAMSUNG
Emerging Markets (EMs) with large consumer bases and untapped demand
constitute the major growth opportunities for the multinationalsand global
companies. However, not all companies are successful in establishing a
foothold, leave alone operating profitably, in such markets. For most, it takes
26
automobile industry, Ford and GM launched their outdated models like Ford
Ikon and Opel Astra in the Indian market. When these models did not sell
well, the companies changed course and decided to launch newer models in
India. In the case of Samsung, the company from the very beginning
launched its whole range of high technology products, which included
CTVs, audio and video products, information technology products, mobile
phones and home appliances in India. It introduced products such as the
Bio range in CTVs, high-powered Woofer series of colour televisions in
21-inch and 29-inch conventional and 21-inch flat TV segments. And not to
forget the lateset DNie television.
By positioning itself on the technology platform, Samsung was able to
differentiate itself from its competitors. Differentiation today is the key for a
brand to be preferred by the consumers, when there are so many other
brands within the same product category. Without differentiation, its loyal
customer base cannot be created or sustained. But to be a true differentiator,
a company must provide features that are meaningful to customers. Which is
what exactly Samsung has been doing.
Home appliances
Microwave Oven
Refrigerator
Air Conditioner
Washing Machine
TV, video & audio
TV
DVD Player
Camcorder
Audio
Home Theater
Digital Audio Player
Digital Still Camera
Mobile Phones
GSM
CDMA
Information technology products
Note PC
29
HDD
CD Rom & DVD Rom Drive
CD & DVD Read & Write Solution
Monitors
Laser Printers & Laser Based MFPs
Fax
Samsung by launching innovative products and using proprietory technology
was able to gain market share. Samsung has therefore set up Samsung India
Software Centre (SISC) and Samsung India Software operations unit (SISO)
for software development at Noida and Bangalore respectively. While the
Samsung India Software Centre in developing software solutions in
Samsungs global software requirements for hi-end television like Plasma
and LCD TVs. SISO is working on major projects for Samsung Electronics
in the area of telecom: wireless terminals and infrastructure, Networking,
SoC (System on Chip) Digital Printing and other multimedia/digital media
as well as application software. In addition to working on global R&D
projects, SISO is also helping Samung Indias CDMA business by focusing
on product customization for the Indian market
MOBILE SEGMENT OF SAMSUNG
Samsung India has created an independent vertical to handle its digital
mobile business. Under this vertical, the company expects to grow volumes
of these products (MP3, digital still cameras and digital camcorders) by over
400% this year. "Looking at the strong growth potential of these product
categories in the Indian market and our strong product lineup, we decided to
30
set up a new team which will put a fresh focus on this business," says R
Zutshi, deputy managing director, Samsung India Electronics. A team of 18
people and a general manager will lead the vertical. The company's
consumer electronic business now has three verticals audio-visual (TVs),
home appliances (washing machines) and digital mobile.
Samsung is
innovative, consumer
on
products, Samsung today announced its new brand positioning for Samsung
Mobiles, which is reflected in its new, spunky, tagline - Next is What ?
being used in all its communication material for mobiles.
exemplify cutting edge technology and design innovation. The new handset
range targets consumers across the multimedia (Imaging and Music),
Business Lifestyle and Popular segments.
The highpoint of Samsungs Multimedia Phone range in the Music Phone
segment is the Samsung SGH i450, which seeks to give users a Mobile
Theatre experience. Combining the next level in form and function, the i450
brings alive the pulsating experience of 3D surround sound powered by ICE
Power amplifiers by Bang & Olufsen. Storing, accessing and juggling music
on this mobile phone gives the users a new high because of the revolutionary
Music wheel and the Dual-Slider form factor. The SHG i450 has been
priced at Rs.15, 000/The Samsung SGH-G800, the worlds first 5 mega pixel camera phone with
3x optical zoom, is the answer for customers needs to have the perfect
digital camera and the multimedia mobile phone combined into one single
device. A sleek camera phone, the G800 from Samsung Metal series is
equipped with advanced camera features such as face detection , Xenon
flash and Wide Dynamic Range (WDR), and also provides a very easy tool
for sharing images and videos. The Samsung G800 is priced at Rs.21, 799/-.
Samsung i550, D 880 address the needs of the business consumer. Powered
by Symbian S60 operating system, the sleek and stylish Samsung i550
comes with an in built GPS Receiver and five hot keys provided for music,
camera, navigation, internet and main menu. The trackball provided in the
phone allows for 360 degrees movement on the screen for navigation and
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HD TV/DVD
LCD
Mobile
Digital Appliance
High Perceive
Value
Semi Conductor
The substitutes in the telecom industry are landline phones and email. At the
moment, landline phones are losing popularity because of lower prices and
34
popularity of cell phones and internet calling programs. In the cell phone
industry, Apple's I phone has the latest technology with its Touch screen, but
companies are following and introducing new phones. Technology is very
important in this market. Samsung has just introduced new line of innovative
cell phones for 2009. Cell phones and PDA's have standard features and the
only product differentiation lies with adding services such as Bluetooth, gaps
and other communication applications and tools that are important for
customers in the cell phone industry. it is important to know that there are
several companies who compete based on price in the cell phone industry
because it is a product that all kind of customers want. Samsung provides an
affordable PDA with the modern features to satisfy the average telecom user.
Apple and Nokia are selling mobile phones with new technology for a high
price for customers who are willing to pay more. There are not many
substitutes for PDA's. The main one is using a cell phone or computer,
laptop to call someone using e.g. Skype.
patented TouchWiz user interface is a stylish and fully loaded handset that
could be tough competition to some HTC touch phones.
Specs:
High resolution screen
3.2-inch WQVGA LCD screen
On-screen QWERTY keyboard
Windows Mobile 6.1 Professional operating system
MS Office documents such as PowerPoint, Excel and Word
Outlook Express
12.5-mm
16 GB Internal Memory
16 GB microSD card from Sandisk
Features:
Dedicated dome key to control communications
DivX, Xvid and other video formats
GPS
Geo-tagging
36
37
which had firmly established itself as the No.2 player in the global arena in
2008 with a 14.3 percent market share,3 trailed Nokia, Motorola, and Sony
Ericsson in India. With Nokia's market share dropping from 78 percent in
2005 to 48 percent in 2008 and its stranglehold on the Indian market
loosening, its rivals including Samsung were gearing up to boost their
market share further.4 Analysts expected fierce competition in this market
as all the companies viewed India, which had emerged as the world's fastest
growing mobile phone market, as a key market.
Earlier in 2008, Samsung India had planned to increase its market share to
20 percent by 2009, focusing primarily on the mobile phone replacement
market6.7 With this in mind, the company had discontinued its cheaper
monochrome-screen models and focused on offering sleek and stylish
mobile phones. Its slim phones, in particular, were popular with a segment
of the youth population. However, its market share continued to hover at
around 10 percent. In March 2009, True to its brand positioning Next is
What?, the new Samsung mobile phone launches exemplify the latest in
terms of cutting edge technology and design innovation. Addressing the
needs of the business users , are the Samsung SGH-i780 and the Samsung
D780.The
QWERTY keyboard and full touch screen. The Windows Mobile 6.0 device
features push email, MS Office, MSN Chat; GPS capabilities, an optical
mouse, Wi-fi support and 2-megapixel camera.
39
CHAPTER 3
RESEARCH
METHODOLOGY
40
Meaning of Research
Redman and Mory define research as a systemized effort to gain new
knowledge. Some people consider research as a movement, a movement
from the known to the unknown.
Research is an academic activity and as such the term should be used in a
technical sense. According to Clifford Woody, research comprises defining
and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.
Objectives of Research
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out
the truth which is hidden and which has not been discovered as yet. Though
each research study has its own specific purpose but the research objectives
can be listed into a number of broad categories, as following
1. To gain familiarity with a phenomenon or to achieve new insights into
it. Studies with this object in view are termed as exploratory or
formulative research studies.
2. To portray accurately the characteristics of a particular individual,
situation or a group. Studies with this object in view are known as
descriptive research studies.
41
Research Methodology
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. In it we study the various steps that are generally adopted by a
42
researcher in studying his research problem along with the logic behind
them. It is necessary for the researcher to know not only the research
methods or techniques but also the methodology.
Data Collection Source
Information was collected through both primary and secondary sources.
Primary Data: In some cases the researchers may realize the need for
collecting the first hand information. As in the case of everyday life, if we
want to have first hand information or any happening or event, we either ask
someone who knows about it or we observe it ourselves, we do the both.
Thus, the two methods by which primary data can be collected is
observation and questionnaire.
Secondary Data: Any data, which have been gathered earlier for some other
purpose, are secondary data in the hands of researcher.
The data collected for this project has been taken from the secondary
source.
Sources of secondary data are: Internet
Magazines
Publications
Newspapers
Broachers
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CHAPTER 4
COMPARISON
BETWEEN NOKIA
AND SAMSUNG
44
QUESTIONNAIRE
Q1. Which brand comes to your mind when you think of high end mobiles?
a.
b.
c.
d.
e.
Nokia
Sony Ericson
Samsung
Motorola
Other
Price
Safety
Looks
Brand name
Reliability
Q4. Which mode has motivated your purchase for the particular brand?
a) Newspaper
b) Television
c) Family and friends
d) dealers
e) Others
Q5. Are you satisfied with the current purchase?
a. Fully Satisfied
b. Somewhat Satisfied
c. Not Satisfied
45
Q6. Which brand are you looking for the purchase in future and why?
a.
b.
c.
d.
e.
Nokia
Sony Ericson
Samsung
Motorola
Other
a. Nokia
b. Samsung
c. Others
Q.9 Place of purchase
a. Wholesalers
b. Retailers
Q.10 What you liked about that showroom ?
a. Reach of Outlet
b. Availability of designs
c. Price of models
d. Pride in Ownership
e. Special offers like discount
f. Behavior/ Helpfulness of staff
Q1. Which brand comes to your mind when you think of high end mobiles?
Nokia
Sony Ericson
Samsung
65
28
59
46
Motorola
Other
32
16
As per this study suggested that Nokia is still has market leadership in India
because 32% of the people has recalled Nokia adding to this 30% of the
people suggested that they have Samsung in top of the mind recall activity
similar to the that 16% of the people like Motorola and 14% of the people
suggested that Sony Ericson.
47
123
14
30
23
10
As per this study suggested that 61% of the people currently using Nokia
which show there market leadership in the Indian market, and 15% of the
people using Samsung and 12% of the people using Motorola this kind of
output is also we are getting because of the People perceiving that Nokia is
the best brand which can be used for.
Most Important
Somewhat Important
Least Important
Price
Safety
Looks
Brand Name
98
78
134
141
35
87
23
32
67
35
43
27
Reliability
88
99
13
As per our study suggested that 98 people out of 200 are suggested that
Price is the most important factor to choosing the Any Mobile Phone adding
to this 67% of the people suggested that Price is the Least important for
them when purchasing to the Mobile phone. It is found that Indian consumer
are very price sensitive, 87 people suggested that safety is the somewhat
important for the Mobile purchasing 134 people out of 200 suggested that
they purchase the Mobile phone according to the Looks wise where an
Brand name is playing very important role to purchasing the Mobile.
Q4. Which mode has motivated your purchase for the particular brand?
49
Newspaper
Television
Family & Friends
Dealers
Others
46
76
43
22
13
50
Fully Satisfied
Somewhat Satisfied
Not Satisfied
87
77
36
This question suggested and judge the satisfaction level of the existing
consumer towards their Mobile phone, 43% of the people who contributed
their views in the survey suggested that the that they are fully satisfied with
the mobile phone which they are using adding to this 39% of the people
suggested that they are somewhat satisfied with their current Mobile phone,
18% of the people suggested that they are not happy with the current handset
which they are using. It is very great opportunity for the mobile phone
company to use unsatisfied customer to turn them out to their potential
customer.
Q6. Which brand are you looking for the purchase in future and why?
Nokia
Sony Ericson
Samsung
87
23
80
51
Motorola
Other
8
2
May be
Unlikely
136
39
25
52
Word to mouth publicity always helps company to retain more and more
customer as per our study suggested that 68% of the people prefer to tell
other people about the features , and there new purchased mobile phone.
Adding to this 19% of the people they are not prefer any show off business
so they did not tell anybody for their new mobiles.
Brands
Nokia
1
2
Samsung
Particulars
price
Config.
style
After
sale
excellent
108
87
56
V good
12
45
67
good
32
36
65
average
43
26
9
poor
5
6
3
service
price
Config.
style
45
68
49
87
55
69
67
49
59
43
39
47
34
13
29
16
7
7
16
1
53
After
others
3
service
price
Config.
style
sale
78
101
67
77
49
57
39
45
23
34
23
32
30
3
56
30
20
5
15
16
Particulars
Brands
Nokia
Samsung
V.Good
49
87
Good
67
49
Average
39
47
Poor
29
16
V.Poor
16
1
S.Ericson
Others
Nokia
Samsung
78
102
77
111
49
57
43
12
23
33
64
28
30
3
11
32
20
5
5
17
S.Ericson
Availability of Designs Others
Nokia
Samsung
143
99
87
138
36
78
94
32
3
11
9
22
6
9
3
5
12
3
7
3
S.Ericson
Others
Nokia
Samsung
67
89
78
68
59
48
49
34
18
49
53
32
46
10
12
45
10
4
8
21
S.Ericson
Others
Nokia
Samsung
49
68
120
78
57
67
35
49
23
25
12
27
48
35
23
21
23
5
10
25
discounts.
S.Ericson
Others
59
98
69
32
45
43
22
12
5
15
Behavior/helpfulness
Of staff
Nokia
Samsung
87
56
32
67
36
65
26
9
19
3
S.Ericson
Others
45
68
55
69
59
43
34
13
7
7
Reach of outlet
Price of models
Pride in Ownership
Special
5
offers
like
55
As this study suggested that the customer preference towards the various
parameter before the purchasing of Luxurious mobile handset , as per our
data suggested that Nokia has a strongest Reach of outlets, Samsung has the
Availability of the phone Is better than other while price of the model have
preference of NOKIA by the various consumer group.
56
FINDINGS
We have compared both products on many bases like image quality, internal
and external memory, screen resolution, sound quality, camera and other
multimedia functions.
On comparing on the above basis we can say 6that Nokias n series is a
better product than Samsung in following ways Better image quality
Better internal as well as external memory
Better screen resolution
Better camera with flash
Better software
Have bigger market shear in India
Clearly Nokias n series have a upper hand in all the above features but if we
compare in terms of sound quality then we can say that Samsungs walkman
series is a better product.
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LIMITATIONS
Many constraints were involved in doing this study. Some of them are as
follows.
The most significant limitation has been the individuals involved in
this study were very busy and did not spare much time in discussion.
The sample size selected for the survey was too small as compared to
large population.
The project was carried out only in the Delhi, so findings on data
gathered can be best true for Delhi only and not applicable to other
parts of state and country.
Indian stock market is a market where sentiments play a major role in price;
hence 100% accurate predictions cannot be made about its future path
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RECOMMENDATION
The study reflects that the use of sales promotion undeniably has increased
over the years in India. Future holds lot of promise for such schemes across
wider range of product-markets. Sales Promotion has ceased to be major
differentiator at least in the metros, with almost all companies offering
similar freebies and gifts. As a result now marketers have to find out some
innovative ways of sales promotion to differentiate from competitors.
Currently Price off and Bye one get one free offers are very effective to
attract the consumers towards the products. We have noted that these kind
of promotional tools are useful for short term increase in sales and to induce
first trial. These types of promotional schemes should be consistent and
changed from time to time depending upon season and competitors
schemes. With the Increasing number of supermarket, the branded packaged
goods work as silent sales person. So in such stores, sales promotion plays a
more effective role in stimulating consumers demands. One of the very
important facts we came to know from this project is that sale of goods
which contain large quantity and having big packaging e.g. detergent are
stagnating because consumer prefer to buy small pack goods, the reasons
are: small pack goods reduce risk of bad quality, It had low cost or say price,
and last but important factor i.e. mentality to purchase just to try first. Sales
of small pack goods are quite high, but from the companys point of view
small pack goods is less profitable compare to large pack goods.
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CONCLUSION
Introduce the product with the offer of one free toothbrush with the
purchase of a brush which will help in blocking and prepointing the
purchase of the buyer.
As the target segment is the premium segment therefore, premium pricing
of the product is necessary.
Add value to the product by giving tips on taking good oral care, in the
back side of the package or a free pamphlet with the purchase of a brush,
like brushing twice a day, flossing, polishing, regular dental check-up by
your dentist, this shows a caring and concerned attitude by the company.
With the purchase of a toothbrush, give a free coupons which is to be
filled in by the consumer and can be used by him or her for getting a free
dental check-up as when and where specified in the advertisement in the
newspaper. This kind of scheme can be implemented by the company
once in two three months.
However, these suggestions can be used by the big players in the market or
the new entrant, who has to be a big player because a large investment is
needed for such heavy sales promotion and also an attempt should be made
to convert this low involvement product into a high involvement as it is
concerned with personal card and hygiene and a product of daily use. The
findings of the empirical study indicate that unless the brand to be promoted
is in the consideration set of the consumer, sales promotion by itself is
unlikely to have any major impact. Clearly this shows that managers need to
invest into brand building exercise so that his/her brand appears in the
consideration set of the target consumers. Only after this should he spend
60
Sales
promotion
should not be used in isolation but need to be integrated with other tools and
in line with the overall positioning of the brand. Also the importance of the
role of mass media came out clearly in the study.
Companies need to create sufficient awareness about sales promotion
schemes through mass media in order to create awareness. Mobile products
are low involvement products characterized by switching behavior. Also the
person going to the shop for the purchase of soap is the final decision maker
of the brand. Hence it is essential that companies need to design attractive,
striking, visible POPs for scheme announcements. With respect to nature of
scheme, the finding suggested that premium (free gift) was popular with
companies. While both retailers and consumers preferred price offs. So it is
necessary that the perceived value of a free gift has to be appealing and high
for the target consumers.
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BIBLIOGRAPHY
The above data is collected from the following sources:
Internet
www.nokia.world.com
www.sonyericsson.india.in
www.comparemyphone.com
www.mycellphone.com
Book
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