I. INTRODUCTION
PROBLEM STATEMENT
Any research requires a proper understanding of the problem. A
well-defined problem is half work done. Statement of problem is
this section was the reason for taking up a particular topic for
research is justified. Many creative efforts fail because the
problem is either unclear or it is focused in the wrong place. If
people have different opinions of what the problem really is, they
will constantly diverge and never be able to find closure on a
suitable solution The project entitled A Comparative study -
Samsung vs. Nokia mobile is an attempt to understand the marketing
strategies adopted by the companies and also to understand the
brand image of the company in India. This research studies the
marketing strategies of Nokia and Samsung in India. The study
Attempts to check the role of marketing activities in success of
Nokia and Samsung in India. After studying the past of the company
and the history of Indian mobile industry, marketing strategies are
examined through secondary resources. A sample of 50 consumers was
taken of Bangalore city, on mobile phone users. Although this
sample is very small to represent the whole market but there is no
choice because of time constraints. Yet we have tried to take
consumers from every age group, every income group, and every
occupation group. Responses were generated from approximately all
the areas of Bangalore in order to minimize any bias. We have
demonstrated the data gathered through various bar chart, pie
charts & cone charts. We have also done the variety analysis as
it is applicable. On the basis of this finding & conclusion has
been presented
COMPANY PROFILESamsung In 1938 the Samsungs fonder byung -chull
lee ser up a trade export company in Korea, selling fish vegetables
and fruit to china .within a decade Samsung had flour mills and
confectionary machines and become a co-operation in 1951. The
history of Samsung and mobile phones stretches back to over 10
years. In 1993 Samsung developed the lightest mobile phone of its
era the SCH 800 and it was available on CDMA networks. Then they
developed smart phone and a phone combined mp3 player towards the
end of the 20th century to this date Samsung is dedicated to the 3g
industry. making video, camera phones at a speed to keep up with
consumer demand .Samsung has made steady growth in the mobile
industry and are currently second but competitor Nokia is ahead
with more than 100%increase in shares.
VISION OF THE COMPANY Leading the digital convergence revolution
GROWING TO BE THE BESTAs a part of vision Samsung has mapped out a
specific plan of reaching $400 billion in revenue & becoming
one of the worlds top 5 brands by 2020
MISSION OF THE COMPANY DIGITAL -E COMPANY excited about future
to serve better services to the people in the market of
telecommunications
Nokia
Nokia's history starts in 1865, Due to the European
industrialization and the growing consumption of paper and
cardboard Nokia soon became successful. Nokias Cable Work's
Electronics department started to conduct research into
semiconductor technology in the 1960s. This was the beginning of
Nokias journey into telecommunications.The company operates in four
segments: Mobile Phones, Multimedia, Enterprise Solutions, and
Networks. The Mobile Phones segment offers mobile phones and
devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular
technologies. The Multimedia segment enables to create, access, and
share multimedia in the form of advanced mobile multimedia
computers and applications with connectivity over multiple
technology standards. The Enterprise Solutions segment offers
various products and solutions, including enterprise-grade mobile
devices, underlying security infrastructure, software, and services
for businesses and institutions.
Corporate responsibility
Corporate responsibility is a fundamental element in Nokias
business, brand and culture. Nokia aims to set the standards for
the industry through initiatives that not only make a positive
impact, but also make good business sense. The Nokia Code of
Conduct commits us to uphold high ethical principles in everything
we do. We respect the principles set in Universal Declaration of
Human Rights and by the International Labor Organization and the
United Nations Global Compact. Communications is a relatively
"clean industry. It is not a high energy user, does not generate
substantial pollution, and does not endanger people or communities.
But a responsible business needs to address its impacts and aim to
make a positive contribution wherever possible. Environmental
issues are our main priority. Climate change is a serious threat
which requires everyone to contribute to building a low carbon
economy.
II. RESEARCH OBJECTIVESThe present study is quite significant
because it discusses values cultures vision, mission and strategies
of two companies .Nokia and Samsung to make comparative analysis
between these two companies it identifies the current positions of
the company .
To understand the marketing strategy of Nokia and Samsung mobile
in India To know about the brand Nokia and the Samsung their
products, market strategies, values mission adopted in the cellular
companies. To know consumer behavior towards Nokia and Samsung. To
recognize the expectation of customer.
HYPOTHESIS
Null Hypothesis (H0): Customer satisfaction regarding their
mobile phone is independent of the brand they own.
Alternate Hypothesis (H1): Customer satisfaction regarding their
mobile phone is dependent of the brand they own.
For detailed tabulation of hypothesis see table 0.1
III. Research Methodology
Research comprise 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. In short, the search for Knowledge
through Objective and Systematic method of finding solutions to a
problem is r esearch.
Research Design:Type of Research: - Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of
different kinds. The main characteristic of this method is that the
researcher has no control over the variables; he can only report
what has happened or what is happening. Data Source: Primary data:
Through Questionnaire. Secondary data: Through internet and
magazines
Sample Design
Sample Unit: Mobile phone users of different age Sample Size:
This study involves 100 respondents Sampling Type: The sample size
has been taken by random convenience sampling technique The sample
Unit taken is General public of different age group, different
gender and different professions of Bangalore.Research Instrument:
Questionnaire.Questionnaire :Questions are multiple choice answers
with predefined answers and few of them offer respondents the
possibility of grading progress across 0-5 scale.Statistical
tools:Graphical analysis, comparative rating
IV. LIMITATIONS
Sample size taken is small The study only conducts in one
geographical area Bangalore Respondent bias and sampling error Does
not evaluate the importance of location.
CHAPTER -I LITERATURE REVIEW
2.1.1 LITERATURE REVIEW
PURPOSE:The literature review section examines the importance of
search studies, company data orindustry reports that serve as a
foundation for the setup of study. The research dimension of the
related literature and the relevant information begins from an
explanatory perspective, approaching towards specific studies which
do related to the judge the limitations and informational gaps in
data from the secondary sources.While the Finnish phone maker has
updated its handset portfolio at the high end to compete better
with Samsung's super-successful Razor phone, the refresh has been
less than inspired. ..."[Nokia's] high-end phones are small, but
they're boxy. Samsung's high-end [models] are thin and slick."
Samsung went for the wow effect, creating got to-have-it phones.
Now, Nokia is playing catch-up. "It all comes down to innovation
and product development," says Hoffman. "Right now, Samsung is head
and shoulders above Nokia in creating products that consumers
desire. Nokia has maintained their market share, but theyre using
price and marketing dollars as the weapon. Surely the RAZR was a
brilliant move. Something as simple as naming a phone Razor has
created enormous buzz for the company, says Kelleher. Granted, the
Razr is a sleek little piece of telephonic technology, but the
Branding has given the phone cache. Kelleher makes a good point.
When you mention Razr, people know what you're talking about. Just
try and picture what the Nokia 6170 looks like. But just a piece of
anecdotal evidence- the Nokia brand is still quite strong in Asia.
And according, Nokia's pushing hard into emerging markets with
low-cost phones, which while hitting margins, are building presence
for the long term. 34% increase in handset volumes versus a 25%
sales increase. To find growth, Nokia is venturing into emerging
markets, such as China and Russia. Nokia is looking out for the
long term by penetrating emerging markets. But it will take some
time for the margins to improve as these consumers upgrade to
premium handsets.More specifically, the areas of competitive
advantages and dynamic capabilities of firms, innovation and
strategy design and implementation will be explored. Furthermore,
theobjective of this literature review is to identify and draw
theoretical grounds which can be used as a baseline for the
development of conceptual framework in order to answer the research
has three sub-question and ultimately the research main question
which is how to re-gain the leader position in the mobile smart
phone market? Although theories of firms are considered an
abstraction of the real business world they Certainly address some
firmscharacteristics and behavior. The fact that different theories
of the firm address different aspects usually makes then
complementary to each other. Economic theories of the firm, for
example cover the firms behavior in external market while
organizational theories of the firm comprise the analysis of the
firms internal structure and the relationship among its unit.
Still, the resource - based view of the firm attempts to explain
why some firms succeed in establishing sustainable competitive
advantages and consequently, conquering superior position in the
market place compared to the competitors. Moreover the emerging
knowledge based view which is not considered a theory as such can
be thought of as an outgrowth to the resource based view since it
focus on knowledge as being the most important strategic resource
of a firm.
Competitive advantages and dynamic capability
A firm aiming to leverage and maintain superior performance
needs to understand what the source of competitive advantages are
as well as how to sustain them. Since competitive advantages can
emerge from many sources, there are a number of different
perspective for a firm to take when analyzing those aspects as for
ex from a resource and from a product perspective, to name a couple
of them. As a consequence of the importance to understand such
causal effect relations, this area of research has become has
become a major one in strategic management.
V. Krishnan a review of research in product development, which
we define as thetransformation of a market opportunity into a
product available for sale. Our review is broad, encompassing work
in the academic fields of marketing, operations management, and
engineering design. The value of this breadth is in conveying the
shape of the entire research landscape. We focus on product
development projects within a single firm. We also devote our
attention to the development of physical goods, although much of
the work we describe applies to products of all kinds. We look
inside the black box of product development at the fundamental
decisions that are made by intention or default. In doing so, we
adopt the perspective of product development as a deliberate
business process involving hundreds of decisions, many of which can
be usefully supported by knowledge and tools. We contrast this
approach to prior reviews of the literature, which tend to examine
the importance of environmental and contextual variables, such as
market growth rate, the competitive environment, or the level of
top-management support.
John R. Hauser Quality function deployment (QFD) is a
product-development methodology that deploys the Voice of the
Customer (VOC) throughout the product-development process. A
cross-functional team implements QFD by creating a series of one or
more matrices, the first of which is referred to as the House of
Quality (HOQ). These matrices relate customer wants and needs to an
extensive set of product features. A set of metrics is developed to
measure how well sets of product features are meeting customer
needs, and then the product's design specifications are identified
and prioritized. QFD enables the entire product-development team to
prioritize their development activities in a systematic, analytical
way. It helps them work together to achieve a common view of the
relationship between customer needs and product design. It provides
an audit trail that reminds people, both new and old to the
project, as to why past decisions were made. The QFD process
stretches the product-development team's thinking as to which
activities are most critical toward creating a winning product or
service. It also improves communication among members of the
product-development team. The result is a product that is
thoughtfully designed right from the ginning, cutting down the need
for later rework and reducing development time and costs.
B. Zafer Erdogan According to the research, Use of celebrities
as part of marketing communications strategy is a fairly common
practice for major firms in supporting corporate or brand imagery.
Firms invest significant monies in juxtaposing brands and
organizations with endorser qualities such as attractiveness,
likeability, and trustworthiness. They trust that these qualities
operate in a transferable way, and, will generate desirable
campaign outcomes. But, at times, celebrity qualities may be
inappropriate, irrelevant, and undesirable. Thus, a major question
is: how can companies select and retain the 'right' celebrity among
many competing alternatives, and, simultaneously manage this
resource, while avoiding potential pitfalls? This paper seeks to
explore variables, which may be considered in any celebrity
selection process by drawing together strands from various
literatures
Alexander Krasnikov The impact of the marketing function on firm
performance has been the focus of much recent research in
marketing. Thus, the effect of marketing capability on firm
performance, compared with that of other capabilities, such as
research and development and operations, is an issue of importance
to managers. To examine this issue and generate empirical
generalizations, the authors conduct a meta-analysis of the firm
capability-performance relationship using a mixed-effects model.
The results show that, in general, marketing capability has a
stronger impact on firm performance than research-and-development
and operations capabilities. The results provide guidelines for
managers and generate directions for further research.
MARKET AND MARKETING
The root word in the term marketing is market. Market is a group
of potential customers for a particular product who are willing and
able to spend money or exchange other resources to obtain the
product. Marketing is focused on the market place. Infect the
shoppers of post generations, the words marketing meant to buy
groceries. Function of marketing activities is to bring buyers and
sellers together.Consists of consumer oriented mix of business
activities planned and implemented by the marketer to facilitate
the exchange or transfer of goods, services, and ideas, so that
both parties profit in some way.A market is a group of potential
customers for a particular product who are willing and able to
spend money or exchange other resources to obtain the product. Good
or service is a consumer product sold in the consumer market
organization is buying an organizational or business. Market
conditions more conducive the sale prospects. The transport work
and its expansion are necessary for the easy flow of goods for the
market. Market, can be classified into Rural market, Agricultural
market, primary village market, primary whole sale market etc.,
Consumer market refers to the market for goods and services
purchased by individual and households to satisfy their consumption
desires. The term market does not mean any particulars market place
in which things are bought and sold but the whole of any region in
which the buyers and sellers are in such inter course with one
another that the prices of the same goods tend to be equalized
easily and quickly. It is the process of planning executing the
conception, pricing, promotion and distribution of ideas and
services to crate exchange will satisfy individual and
organizational objectives keeping customers and building
relationship. Marketers want customers for life. Effective
marketers work to build long term relationships with their
customers. Marketing as an activity involved in getting and keeping
customers. Definition of 'Market Segmentation'A marketing term
referring to the aggregating of prospective buyers into groups
(segments) that have common needs and will respond similarly to a
marketing action. Market segmentation enables companies to target
different categories of consumers who perceive the full value of
certain products and services differently from one another.
Generally three criteria can be used to identify different market
segments:
1) Homogeneity (common needs within segment)2)Distinction
(unique from other groups)3)Reaction (similar response to
market
MARKET SEGMENTATION The purpose for segmenting a market is to
allow your marketing/sales program to focus on the subset of
prospects that are "most likely" to purchase youre offering. If
done properly this will help to insure the highest return for your
marketing/sales expenditures. Depending on whether you are selling
your offering to individual consumers or a business, there are
definite differences in what you will consider when defining market
segments. Segmentation is beneficial because of better
predictability of the target consumer group, minimization of risk
exposure, better ability to fine-tune a product/service to the
requirement of target buyer and the resultant ease in designing a
proper designing marketing mix strategy In this case segmentation
is on the bade of income .
TARGET MARKET SEGMENT Companies target the premium and upper
middle class. The rationale behind it is that only those segments
should be targeted who value time and have the paying capacity. It
is also planning to target the business tourists during their stay
in the capital.
About 60% of the clientele are top executives of corporate
houses. About 15% are foreign organizations and the rest are
professionals and small businessmen. During the introduction stage
there was intense pressure to get consumers across to hook up with
their brand, because getting them.
POSITIONING The product is sought to be positioned as a business
efficiency tool. A lifestyle revolution and a status symbol the
emphasis is to remove misconception that the cellphone is an
expensive means actually a day-to-day utility.PRODUCT POLICY AND
PLANNING The product or service is the heart of the marketing mix.
Without a product or service customers' needs cannot be satisfied.
The basic product promise by company is ability. Company's main
marketing strategy is to be a first mover all the time. It has
recognized the significance of making the first move because in the
field of Communication & Information Technology changes occur
at a tremendous pace . Effective product segmentation has to be
carried on continuously because basic services can be and will be
copied and in time become expected component of the product.
Company seeks to carry out this segmentation through provision of
new information services and making new facilities available . The
product policy and planning depends on the stage of the product
life cycle . At present the cellular phone market has reached the
maturity stage . Since , the premium segment is nearing saturation
the company targeting the upper middle and middle -middle class. In
order to do so company is trying to optimize the price performance
package by offering suitable "product bundling" and its software
(its services) with reasonable price in order to deliver maximum
price performance to its customers. In addition, it offers free
Airtime services and other concessions to make the prices and thus
the product more attractive. Only price doesn't serve as an
effective differentiator, value added services become the effective
differentiator.
CUSTOMER SATISFACTION Companys first task is to create customers
but today customers face a vast array of product and Brand choices,
prices and suppliers. How do customers make their choices? We
believe that customers estimate which offer will deliver the most
value. Customers are value maximizes within the bound of search of
cost and limited knowledge, mobility and income. They form an
expectation of value and act on it. Whether or not the offer leaves
up to the value expectation affects customers satisfaction and
their repurchase probability.ATTRACTING AND RETAINING CUSTOMER To
improve their relations with their partners in the supply chain,
many companies are intent on developing stronger bonds and loyalty
with their ultimate customers. In the past many companies took
their customers for granted. Their customers may not have had many
alternatives of supply or all suppliers were equally deficient in
the service or the market was growing so fast that the company did
not worry about satisfying its customers. Clearly things have
changes
THE NEED FOR CUSTOMER RETENTION
The cost of attracting a new customer is estimated to be 5 times
the cost of keeping a current customer happy. It requires a great
deal of effort to induce satisfied customers to switch away from
their current suppliers. Unfortunately most marketing theory and
practice centered on the art of attracting new customers rather
than retaining existing ones. The emphasis traditionally has been
on making sales rather than building relationship. The focus has
been on reselling and selling rather than on caring for the
customer afterwards. Today however, most of the companies are
recognizing the importance of satisfying and retaining current
customers. There are two ways to strengthen customer retention:
-[1] One is to erect high switching barriers. Customers are less
inclined to switch to another suppliers when this would involve
high capital cost, high search cost and the cost of loyal customer
discounts and so on [2] The better approach is to deliver high
customer satisfaction. This makes it harder for competitors to
overcome switching barriers by simply offering lower prices. The
task of creating strong customer loyalty is called Relationship
Marketing. Relationship Marketing embraces on those steps that
companies undertake to know and serve better their valued
individual customers.
Some cautions in measuring customer satisfaction level When
customer rates their satisfaction with element of the companys
performance the Company needs to recognize that two customers can
report being highly satisfied for Different reasons. One may be
easily satisfied most of the time and the other might be hard to
please but was pleased on this occasion. Company should also note
that manager and sales people could manipulate their ratings and
customer satisfaction. They can also try to exclude unhappy
customers from the survey. Another danger is that if customers know
that the company will go out of its way to please customers many
express high dissatisfaction in order to receive more
concession.
For businesses: Strategic - your offering is in some way
important to the enterprise mission, objectives and operational
oversight. For example, a service that helped evaluate capital
investment opportunities would fall into this domain of influence.
The purchase decision for this category of offering will be made by
the prospect's top level executive management. Operations - your
offering affects the general operating policies and procedures.
Examples might be an employee insurance plan or a corporate wide
communications system. This purchase decision will be made by the
prospect's top level operations management. Functional - youre
offering deals with a specific function within the enterprise such
as data processing, accounting, human resources, plant maintenance,
engineering design, manufacturing, inventory control, etc. This is
the most likely domain for a product or service,but you must
recognize that the other domains may also get involved if the
purchase of the product or service becomes a high profile decision.
This purchase decision will be made by the prospect's functional
management.
Marketing strategy A strategy is a long-term plan to achieve
certain objectives. A marketing [link] strategy is therefore a
marketing plan designed to achieve marketing objectives. For
example, marketing objective may relate to becoming the market
leader by delighting customers. The strategic plan therefore is the
detailed planning involving marketing research, and then developing
a marketing mix to delight customers. Every organization needs to
have clear marketing objectives, and the major route to achieving
organizational goals will depend on strategy. It is important,
therefore, to be clear about the difference between strategy and
tactics. These terms originate from military use (military strategy
before and during a military campaign is the general policy
overview of how to defeat the enemy). Developing a strategy
involves establishing clear aims and objectives around which the
framework for a policy is created. Having established its strategy,
an organization can then work out its day-to-day tools and tactics
to meet the objectives. Marketing can thus be seen as the process
of developing and implementing a strategy to plan and coordinate
ways of identifying, anticipating and satisfying consumer demands,
in such a way as to make profits. It is this strategic planning
process that lies at the heart of marketing. In 1985, the Chartered
Institute of Marketing adopted the dynamic slogan: 'Marketing means
Business'
Strategic discipline Marketing is now accepted as a strategic
discipline or general management function and in this respect must
care for the health of a business in the future - especially
against competitive influences. This is because it is increasingly
realized that although making a profit is important, an
organization should also develop its market share and search for
brand leadership as well. So the marketer must monitor the
profitability of the business and attempt to anticipate the likely
trends. At the same time rival companies should be monitored and
examined for vulnerable points. Successful marketers must therefore
be concerned with every aspect of their business, including future
project and other areas of their industry. Successful companies
plan five or ten years and more in advance and often know as much
about their competition as they know about themselves. Marketing is
not just a series of business-related functions, but more
wide-reaching than this. It is a business philosophy designed to
develop an attitude of mind which should be shared by everyone in
an organization and is often enhanced by both frequent and open
communication. Developing such an attitude of mind reduces the
likelihood of crisis and contributes to the development of the
overall future of an enterprise at both strategic and tactical
levels. At the heart of marketing lies the degree to which an
organization becomes marketing orientated. The more committed a
company is to its marketing activities; the more able it will be to
pursue its corporate objectives and develop and retain customers.
Every business in existence relies upon its customers for survival,
and those who best meet customer needs will always survive a period
of change. The marketing function is therefore an essential
ingredient of corporate strategy, and this marketing focus should
be communicated through marketing planning into all aspects of
business activity. In choosing a marketing strategy a frequent
distinction that is made is between undifferentiated marketing and
differentiated marketing. Undifferentiated marketing is where a
single marketing mix is offered to the total market. In contrast
differentiated market is the process of attacking the market by
tailoring separate product and marketing strategies to different
segments of the market, for example, the spectacles market can be
broken down into fashion segments and functional segments, high
price and low price segments, and segments for individuals with
different types of vision problems. Objectives The ends which an
organization focuses its plans and activities towards
achieving.
Strategies
The means to achieve the ends. Usually long term plans.
WHY MARKETING STRATEGIES ARE IMPLENTED IN THE ORGANIZATION
Strategy implementation is the translation of chosen strategy
into organizational action so as to achieve strategic goals and
objectives. Strategy implementation is also defined as the manner
in which an organization should develop, utilize, and amalgamate
organizational structure, control systems, and culture to follow
strategies that lead to competitive advantage and a better
performance. Organizational structure allocates special value
developing tasks and roles to the employees and states how these
tasks and roles can be correlated so as maximize efficiency,
quality, and customer satisfaction-the pillars of competitive
advantage. But, organizational structure is not sufficient in
itself to motivate the employees. An organizational control system
is also required. This control system equips managers with
motivational incentives for employees as well as feedback on
employees and organizational performance. Organizational culture
refers to the specialized collection of values, attitudes, norms
and beliefs shared by organizational members and groups .Following
are the main steps in implementing a strategy: Developing an
organization having potential of carrying out strategy
successfully. Disbursement of abundant resources to
strategy-essential activities. Creating strategy-encouraging
policies. Employing best policies and programs for constant
improvement. Linking reward structure to accomplishment of results.
Making use of strategic leadership.
Excellently formulated strategies will fail if they are not
properly implemented. Also, it is essential to note that strategy
implementation is not possible unless there is stability between
strategy and each organizational dimension such as organizational
structure, reward structure, resource-allocation process, etc.
CHAPTER 2INDUSTRY & COMPANY PROFILE
2.2.1 Company ProfileSamsung In 1938 the Samsungs fonder byung
-chull lee ser up a trade export company in Korea, selling fish
vegetables and fruit to china .within a decade Samsung had flour
mills and confectionary machines and become a co-operation in 1951.
The history of Samsung and mobile phones stretches back to over 10
years .in 1993 Samsung developed the lightest mobile phone of its
era the SCH 800 and it was available on CDMA networks. Then they
developed smart phone and a phone combined mp3 player towards the
end of the 20th century to this date Samsung is dedicated to the 3g
industry. making video, camera phones at a speed to keep up with
consumer demand .Samsung has made steady growth in the mobile
industry and are currently second but competitor Nokia is ahead
with more than 100%increase in shares.
VISION OF THE COMPANY
Leading the digital convergence revolution GROWING TO BE THE
BEST As a part of vision Samsung has mapped out a specific plan of
reaching $400 billion in revenue & becoming one of the worlds
top 5 brands by 2020
MISSION OF THE COMPANY
DIGITAL -E COMPANY excited about future to serve better services
to the people in the market of telecommunications
OVERVIEW OF INDUSTRY AS A WHOLE
In today's world, most people communicate through the use
cellular phones. It's hard to believe that fifteen years ago cell
phones were a rarity. Below is a history chronicling the dawn of
the cell phone to its current state.
1843 - Faraday exposed his great advances of nineteenth-century
science and technology and his discoveries have had an incalculable
effect on technical development toward cellular phone
development.
1865 - Dr. Mahlon Loomis of Virginia, a dentist, may have been
the first person to communicate through wireless via the
atmosphere. Between 1866 and 1873 he transmitted telegraphic
messages at a distance of 18 miles between the tops of Coshocton
and Beorse Deer Mountains, Virginia. 1973 - Dr Martin Cooper is
considered the inventor of the first portable handset. Dr. Cooper,
former general manager for the systems division at Motorola, and
the first person to make a call on a portable cellular phone.
1973 - Dr. Cooper set up a base station in New York with the
first working prototype of a cellular telephone, the Motorola
Dynastic. Mr. Cooper and Motorola took the phone technology to New
York to show the public.
1977 - Cell phones go public. Public cell phone testing began.
The city of Chicago was here the first trials began with 2000
customers and eventually other cell phone trials appeared in the
Washington D.C. and Baltimore area. Japan began testing cellular
phone service in 1979.
1988 - This year changed many of the technologies that had
become typical in the past. The Cellular Technology Industry
Association (CTIA) was developed to lay down practical goals for
cellular phone providers. According to the Cellular
Telecommunications Industry Association, today there are more than
60 million customers with cellular phones, eventhough wireless
service was just invented nearly 50 years ago. The cellular
business was a $3 million market 25 years ago and has grown
increasingly to close to a $30 billion per year industry .
About the Industry
The cell phone industry has evolved greatly in the past 10
years. 10 years ago only the rich could afford cell phones, and
they looked like boxes more than something that could fit in your
pocket. Today, more people have cell phones than fixed telephone
lines, both in the United States and internationally. There are
more than one billion cell phone users worldwide." Cell phones have
now become a part of everyday life. Without cell phones we would be
lost in our high tech world. Americans spend 7 hours a month on
cell phones. The effects of new technology have had positive
effects in school, too. Cell phone use is getting more and popular.
"Some 85 million U.S. residents30 percent of the populationhave
joined the mobile-phone revolution. There are already 1 billion
cell phone users worldwide. Between 2010 and 2020 it will be hard
to find a person without a cell phone.
They are now bought for the fact that they are used in emergency
situations. Nearly 156,000 wireless emergency service calls were
made every dayabout 108 calls per minute. Parents are now buying
them for their children so they know where they are all the time.
Every company has their different Marketing Strategies. Now I am
going to discuss the Marketing strategies of Nokia.
Indias Tele-density in January 2008 neared 12% with the
subscriber base nearing the 130mn mark. During January 2008, record
5mn subscribers were added as against 4.92mn subscribers in
December 2007. This strong growth could be attributed to lifetime
validity cards launched by almost all operators. During the first
10 months of FY06, 31.41mn subscribers have been added. In the
fixed segment, a total of 0.28mn subscribers were added during
January 2008, taking the subscriber base of fixed line services to
49.21mn. In the mobile segment, total additions during the month
summed up to 4.69mn with highest ever
GSM additions of 3.52mn and CDMA additions of 1.17mn. During the
first 10 months of FY08, 28.39mn subscribers have been added
Mobile phones in India
Smartphones are much different than regular feature phones.
These phones are built on mobile operating system. With the changes
happening all over the world changes in a mobile phone is must. The
world is moving fast and so has technology to. The invention of a
Smartphone is the best thing that could have been done to human
kind. Smartphones India market is huge. All over you will people
using this. The Smartphones in India that are more famous are the
ones that have high resolution touch screen and web browsers that
making life easy and fast moving. Using the best Smartphone has
become a style icon for today's generation. Best Smartphones can be
found in best brands like Samsung, Sony, HTC, LG, Nokia, etc. These
phones are very common among the professionals, students and other
users as it allows them to check mails, stay connected on social
media and browse the net. A Smartphone price is different and more
than a feature phones because it has Operating System in the Mobile
and makes life simple, easy and hassle freeAmong the popular
smartphones in India are: Samsung SmartPhones Samsung Smartphone
India market is more than expected by anyone. Here everyone wants
to have a Samsung Smartphone. Operating your office from your phone
makes life so exciting. You may be anywhere in the world Samsung
Smartphone allows you to be ready all the time. The latest Samsung
Smartphone - Samsung Galaxy Note II gave a new definition to the
world of communication. You don't require a laptop or a desktop as
this can do all that the two have been doing for you all these
years. Samsung Smartphone price makes all this affordable for you
buy and have the world in your palms.
Sony Smartphones Sony is a brand leader in electronics. And a
Sony Smartphone is stylish and durable. Sony Xperia Smartphones
have captured the market very fast. The features and the technology
used make it different from all the mobiles. All Sony Smartphones
Mobiles are good and have been built after a lot of research and
development. Sony Smartphones in India is famous among the
professionals and students. It has made life easy and hassle free
for them. See your mails, reply to them, Updating status on
Facebook, etc is done with a click. Sony Smartphone price is far
less than the features given to you in the mobile.
Nokia SmartPhones Nokia is known for connecting people since it
was launched. Now Nokia Smartphones have made life easier for those
who don't like any other brand. Users are least interested in the
Nokia Smartphone price as they trust that Nokia will give them the
best. With Nokia Smartphone India you can share more than you
thought of. It allows you to do multitasking. The Latest Nokia
Smartphones come with enhanced processing power that makes
multitasking fast and easy. HTC SmartPhones With the recent launch
of the HTC Smartphones the market is now filled with beautiful and
useful Smartphones. HTC Smartphones India has captured the hearts
of many consumers as it loaded with world class features and has
high speed that the young generation is looking for. The best HTC
Smartphones allow you to customize your phone through the internet.
HTC Smartphone price is less compared to the features available in
the mobile.
LG SmartPhones LG Smartphones India has launched the best
Smartphones ever. LG Smartphones have been designed uniquely with
the NOVA display technology that offers clear outdoor visibility,
readability, and perfect colors. The Latest LG Smartphones have
Wi-Fi Direct that allows access to net without any Access Point.
You will find LG Smartphones price differing from mobile to mobile
depending on the features.
Android Smartphone Android Smartphones are on the go and most
popular among professionals and students all across the globe.
Android Smartphone India runs on a platform that allows the users
to install applications as per their requirement. Every new Android
Smartphone that has been launched in the last few months has
captured the market and is giving tough competition to other
brands. Android Smartphones prices are much less compared to other
Smartphones grabbing the crowd more and increasing the revenue.
3G SmartPhones
The 3G Smartphone Collections are most in demand today. The 3G
Smartphones networks allow the network operators to provide its
valuable users with huge of advanced series like internet, video
calling, and voice calling from a mobile phone. Latest 3G
Smartphone cab be found in brands like HTC, Samsung, Nokia, etc. 3G
Smartphone price is secondary as it has more than what it actually
quotes. It loaded with features and apps making life fun and
enjoyable. 3G Smartphone India has been able to capture the mobile
market in a short span of time.Using best Smartphones has become
very vital today. It allows you to stay connected always. This
change from regular cell phones to Smartphones will keep moving as
now there will be much better phones with much better technology
used. Earlier the use of mobile was only to keep in touch when out
but today a mobile is more than making calls. Companies do a lot of
research and development to build the perfect phone for each of its
valued customers.
Company Profile
Samsung
In 1938 the Samsungs fonder buying -chill lee set up a trade
export company in Korea, selling fish vegetables and fruit to china
.within a decade Samsung had flour mills and confectionary machines
and become a co-operation in 1951. According to the company, from
1958 onwards Samsung began to expand into other industries such as
financial, media, chemical and ship building throughout the 1970s
.in 1969, Samsung electronics was established producing what
Samsung is most famous for television, mobile phones
(througout90s), radios, computer components and other electronics
devices.
1987 founder and chairman, byung-chull lee passed away and
kun-hee lee took over as chairman. In the1990s Samsung began to
expand globally building factories in the US, Britain, Germany
Thailand Mexico Spain and china until 1997
In 1997 nearly all Korean business shrunk in size and Samsung
was no exception. They sold business to relieve debt and cut
employees down lowering personnel by 50,000 but thanks to the
electronic industry they manage to curb this and continue to
grow.
The history of Samsung and mobile phones stretches back to over
10 years .In 1993 Samsung developed the lightest mobile phone of
its era the SCH 800 and it was available on CDMA networks. Then
they developed smart phone and a phone combined mp3 player towards
the end of the 20th century to this date Samsung is dedicated to
the 3g industry. making video, camera phones at a speed to keep up
with consumer demand .Samsung has made steady growth in the mobile
industry and are currently second but competitor Nokia is ahead
with more than 100%increase in shares. THE SAMSUNG PHILOSOPHY
At Samsung we follow a simple business philosophy to devote our
talent and technology to creating superior products and services
that contribute to a better global society. Every day our people
bring this philosophy to life. Our leaders search for the brightest
talent from around the world, and give them the resources they need
to be the best at what they do. The result is that all of our
products from memory chips that help business store vital knowledge
o mobile phones that connect people across continents have the
power to enrich lives and thats what making a better global
society. PRINCIPLES OF THE COMPANY We comply with laws and ethical
standards. We respect customers, shareholders and employees. We are
socially responsible corporate citizen. We care for the environment
health and safety. We maintain a clean environmental culture.
MARKETING STRATEGY OF SAMSUNG
Aggressively hawking flips tops and clamshells with polyphonic
ring tones and color screen. Nationwide distributer and retail
presence in the consumer durable market. Samsung has been
associated with the Lakme India fashion week for its mobile phones
the company used the LIFW 2005 as a platform to launch D-500,worlds
best mobile phone in the Indian market. Set up a hand set
manufacturing facility in India
S.W.O.T ANALYSIS OF THE COMPANY STRENGTH
New product concept to rollout. Catching the pulse of the
consumer offering design & understanding emotions. Heavy
investments in technology. Focus on innovative products.
WEAKNESS
New models coming out very soon. Different models at different
price points.
OPPORTUNITIES
Distinguish its service from competitors offer product
variation. Demand for cell phones driven by the serversproviders or
carriers. Tie up with service providers lowering the price of the
phone. THREATS Motorolas dominance in the US the European market
controlling more than world market Aggressive competitors including
Sony Ericsson, Siemens eating into its share.
Nokia
Nokia's history starts in 1865, Due to the European
industrialization and the growing consumption of paper and
cardboard Nokia soon became successful. Nokias Cable Work's
Electronics department started to conduct research into
semiconductor technology in the 1960s. This was the beginning of
Nokias journey into telecommunications.
According to the company, Nokia today is a world leader in
mobile communications, driving the growth and sustainability of the
broader mobility industry. Nokia connects people to each other and
the -information that matters to them with easy-to-use and
innovative products like mobile phones, devices and solutions for
imaging, games, media and businesses. Nokia provides equipment,
solutions and services for network operators and corporations. The
company includes four business groups; Mobile Phones; Multimedia;
Networks and Enterprise Solutions. In this project I will be
focusing only on the mobile Phone business of Nokia in India. Nokia
Corporation engages in the manufacture of mobile devices and mobile
networks. It also provides equipment, solutions, and services for
network operators, service providers, and corporations. The company
operates in four segments: Mobile Phones, Multimedia, Enterprise
Solutions, and Networks. The Mobile Phones segment offers mobile
phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular
technologies. The Multimedia segment enables to create, access, and
share multimedia in the form of advanced mobile multimedia
computers and applications with connectivity over multiple
technology standards. The Enterprise Solutions segment offers
various products and solutions, including enterprise-grade mobile
devices, underlying security infrastructure, software, and services
for businesses and institutions. The Networks segment provides
network infrastructure, communications, and networks service
platforms, as well as professional services to operators and
service providers. It focuses on the GSM family of radio
technologies; networks with Internet Protocol and multi access
capabilities; and professional services. The company also develops
mobile WiMAX solutions. Nokia sells its products to operators,
distributors, independent retailers, and corporate customers. It
has its operations in Europe, the Middle East, Africa, China, the
Asia-Pacific, North America, and Latin America. The company was
founded in 1865 and is based in Espoo, Finland.
Nokia was the leader in mobile phone technology, although they
have other subsidiaries, namely Nokia Networks and Nokia Ventures
Organization, which, together with Nokia Mobile Phones, form Nokia
Group. Nokia also launched Vertu Ltd. in 2009, the worlds first
luxury mobile phone company, selling gold and platinum phones at
exorbitant prices.
Marketing Strategy for Nokia
* Appropriately identify, collect and use primary and secondary
data that is relevant to the marketing strategy of Nokia.* Produce
a clear analysis of the external influences affecting the
development of a marketing strategy.* Complete a realistic
rationale for the development of a coherent marketing mix for Nokia
communications.* Show a full understanding of a marketing strategy
for Nokia with a clear understanding of marketing principles.*
Produce a full, well-balanced marketing strategy that reflects
appropriate use of marketing models and tools.
S.W.O.T ANALYSIS OF NOKIA STRENGTHS
Is a dominant player in the smart phone market via its majority
ownership of Symbian and its proprietary Series 60 user interface
which are projected to represent majority. 33% market share still
the largest cell phone vendor by far, with double the market share
of nearest competitor . Size should enable Nokia to amortize
R&D costs and to get cost advantages Brand position: probably
one of the top 20 brands in the world. WEAKNESSES The N-gage is
considered a flop. Being the market leader and its increase role in
Symbian is giving Nokia a bad image, much like Microsoft in the PC
industry. Slow to adopt new ways of thinking: good examples are
clamshell phones which are preferred by many customers. Nokia was
reluctant to produce a clamshell until this year, when it launched
its first model. OPPORTUNITIES
Increase their presence in the CDMA market, which they are just
entering, as well as 3G and Edge . New growth markets where cell
phone adoption still has room to go, including India and other
countries. Leverage its infrastructure business to get preference
and a stronger position with carriers
THREATS
Late in the game in 3G creates a risk to be displaced by leaders
like Motorola, LG, NEC and others. Asian OEMs who are entering the
market very aggressively (TCL, nGo Bird) ODMs (HTC and others)
enabling carriers to leverage their customer power bypassing the
handset vendor. Operators want to lessen their dependency on
handset vendors and the dominance of Nokia. Orange, O2, and many
other operators globally are selling their own brand of phones.
CHAPTER III
DATA ANALYSIS AND INTERPRETATION
2.3.1 DATA ANALYSIS AND INTERPRETATION 1) Age
AgeNo. of Respondents
Less than 2020
20 3056
30 4016
40 505
Above 503
2) Do you own a mobile phone?No. of Respondents
Yes100
No0
Interpretation:From the response it is seen that 100 respondants
own mobile phones.
3) How many mobile phones do you own?No. of PhonesNo. of
Respondents
One54
Two46
Interpretation:54 respondants own one mobile phone.46
respondants own two mobile phones.
4) Which brand and model do you own?
Name of BrandNo. of Respondents
Samsung60
Nokia40
Interpretation:Among the respondents 60 of them own Samsung
mobile phones and remaining 40 respondants own nokia mobile
phones.
5) How long have you been using your current mobile phone?
No. of YearsNo. of Respondents
Less than 1 year26
1 2 years38
2 3 years14
More than 3 years22
Interpretation:26 respondants have been using the mobile phones
for less than one year 38 respondants have been using the mobile
phones for 2 years14 respondants have been using the mobile phones
for 3 years22 respondents have been using the mobile phones for
more than 3 years
6) What feature in a mobile phone attracts you the most? Rate
them on a scale aof 1-5.1- Very important, 2 - Important, 3 -
Neutral, 4 Unimportant, 5 - Very unimportantFeatures12345
Price34461640
Style5040820
Camera6024822
Battery6230800
Memory42421240
Durability4248820
Uniqueness42302242
Availability24324202
Service Support40421422
User Friendly42322402
Interpretation:According to the data the most important features
for respondants are style , camera and battery.
7) Chose between Nokia and Samsung, which is the better mobile
based on following:NokiaSamsung
Price5644
Style2080
Camera3070
Battery8020
Durability7030
Interpretation:According to the responses it is observed that
nokia is better than Samsung on battery price and durabilityAnd
Samsung is better than Nokia on style and camera.
8) How satisfied are you with the mobile phone you are
using?
Extremely SatisfiedSatisfiedNeutralDissatisfiedExtremely
Dissatisfied
Battery4048820
Camera28323820
Memory223632100
Screen Size322828102
Service Support30362842
InterpretationIt is observed that maximum number of respondants
are satisfied with their phones.
HYPOTHESIS:Chi square test is used to analyze if the
satisfaction level of customer was the same for Nokia and Samsung
with the following null and alternative hypothesis
Null Hypothesis (H0): Customer satisfaction regarding their
mobile phone is independent of the brand they own.
Alternate Hypothesis (H1): Customer satisfaction regarding their
mobile phone is dependent of the brand they own.
TABLE 0.1 ASSOCIATION BETWEEN BRAND AND CUSTOMER
SATISFACTION
Chi Squarep-valueNull Hypothesis Accepted/Rejected
Battery17.740.023Rejected
Camera7.4390.282Accepted
Memory20.9780.002Rejected
Screen Size12.880.116Accepted
Service Support9.5030.302Accepted
Result:There is no significant association between the brand and
the customer satisfaction for battery and memory whereas there is
significant associate between the brand and customer satisfaction
for camera, screen size and service support.11) Do you plan to
change your mobile phone?If yes, to which brand?
Interpretation:54 respondants are planning to change their
mobile phones and 46 respondants are not planning to change their
phones.
12 respondants preferred i phone8 respondants preferred HTC13
respondants preferred SONY10 respondants preferred NEXUS6
respondants preferred MOTOROLA5 respondants preferred MICROMAX
CHAPTER IV
FINDINGS
2.4 FINDINGS
Samsung is introducing phones very frequently while Nokia
introduces a new phone into the market every two or three
months
Samsung has already entered into the market with economical
phones to tap the low income group. On the other hand Nokia is
entering into market with windows technology.
Samsung is considered for other features such as internet,
design, color, display, etc while Nokia phones are more
user-friendly and is economical.
Samsung is launching new mobiles more frequently to create more
completion in the market it is more inclined towards android
operating mobile instead of bada. Whereas Nokia has come up with
few new models in the market but is unable to regain its share
because of the level of competition Nokia's financial position is
surpassing its competitors in telecommunication. While Samsung is
Indulging itself in more than telecom it has more products more
than mobiles.
Samsung is always trying to indulge with media through
advertisement and innovative Technology while Nokia has established
its leadership in mobile phone market according to its successful
marketing strategies and internal management.
Samsung's philosophy is to learn continuously, to satisfy
consumers, and to respect individual and pursue
professionalism.
Chapter V
CONCLUSIONS AND SUGGESTIONS
2.5.1 CONCLUSION The customer analysis of this coursework
highlighted that the mobile phones are used by everyone and they
are part of the lifestyle. Extensive research was conducted into
the strategies being implemented.
Samsung is the most innovative mobile handset company which
launches mobile handset very frequently and advertises products
through various modes to promote their product and build a market
share for its company. However, they have different interpretations
Nokia has saturated the rural market and is now targeting
potentially untapped markets and is trying to gain its market share
with the windows operating system and many few other features which
will help to increase its market share Nearly all mobile handset
companies on the other hand have chosen to focus its energies on
the B and C class cities since which it had not ventured into so
far. The prominent brands in the Indian cellular phone industry are
Apple, Blackberry, Nokia, Sony Ericsson, Motorola, and Samsung.
Nokia was having market share in India of 60%, now its share has
declined and Samsung has entered into the market with Android.
Research suggest that the Samsung handsets are better than Nokia
handsets. There is very close competition between Samsung, Nokia,
and other mobile handset companies, each and every company wants to
lead the race, so they are launching new products very frequently
with good technology, better design and according to the need of
the user. In this completion of companies the consumers are being
benefited the most, they are enjoying. The services and pleasure of
mobile phones at very economical price ( depending upon the mobile
handset)
2.5.2 SUGGESTIONS
After analyzing all the data we have some recommendations such
as:-
Advertisements: -
Both Nokia and Samsung are using various modes of advertisement
to promote their products and schemes.
EXAMPLE: - Giving advertisement on television or cable Giving
print media add which explain all the features of cell phone
SPECIAL SCHEMES: -
Nokia has to come up with innovative products when compared to
Samsung. So to increase the sales it has to improve mobile handset
quality, give advertisement or special discount or special schemes
with every purchase of new cell phone. Samsung have color variety
in their cell phones and is equipped with latest technology and
features
BIBLIOGRAPHY
WEBSITE:
1. http://www.nokia.com2. www.samsung .com3. www.ebsco.com4.
www.economictimes.com
ANNEXTURES
Questionnaire
Comparative study of Samsung and Nokia :1) Name
2) Gender
3) Age a. Less than 20b. 20-30c. 30-40d. 40-50e. Above 504) Do
you own a mobile phone?a. Yesb. No5) How many mobile phones do you
own?a. One b. Two
6) Which brand and model do you own?a. Samsungb. Nokia
7) How long have you been using your current mobile phone?a.
Less than 1yearb. 1-2 yearsc. 2-3 yearsd. More than 3 years8) What
feature in a mobile phone attracts you the most? Rate them on a
scale of 1-5.1- Very important, 2 - Important, 3 - Neutral, 4
Unimportant, 5 - Very unimportantFeatures12345
Price
Style
Camera
Battery
Memory
Durability
Uniqueness
Availability
Service Support
User Friendly
9) Chose between Nokia and Samsung, which is the better mobile
based on following:ParticularsNokiaSamsung
Price
Style
Camera
Battery
Durability
10) How satisfied are you with the mobile phone you are
using?Extremely SatisfiedSatisfiedNeutralDissatisfiedExtremely
Dissatisfied
Battery
Camera
Memory
Screen Size
Service Support
11) Do you plan to change your mobile phone?a. Yesb. NoIf yes,
to which brand?
Preferred Brands IPhone, Sony, HTC, Micromax, Motorola and
others.
Thank You!
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