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ROYAL INSTITUTE OF MANAGEMENT AND
TECHNOLOGY
A
SEMINAR REPORT
ON
A COMPARATIVE STUDY ON CONSUMER BUYING BEHAVIOUR REGARDING VARIOUS BRAND NAMES;
A Case Study on
(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF MBA.)
(Session 2010-11)
Submitted To Submitted bu
Ms Isha kalra roohi sikka
lecturer MBA 1st year
Dept. of MBA university roll no
RIMTCollege
CERTIFICATE
Certified that the project report on “A Comparative Study on Consumer
Buying Behaviour Regarding Various Brand Names; A CASE STUDY
ON MICROMAX” has been completed by roohi sikka under by guidance.
She has submitted the report in partial fulfillment of the requirement for the
Degree MBA from Maharishi dayanad university It is her on original
research and I recommended that this should be sent for evaluation.
Dr.BHUTANI MS ISHA KALRA Principal Project Incharge RIMT College Lecturer in MBAPanipat RIMT College Panipat
ACKNOWLEDGEMENT
The researcher feels obliged to express his grateful thanks to all those
persons who rendered him all possible help in completion of this research
project.
y gratitude to the staff members of MBA. for the valuable guidance,
suggestions and continued encouragement in condition of the study and
preparation of the report.
I am thankful to MS ISHA KALRA, PROJECT INCHARGE for
providing signification help for completion of project report. I am also
thankful to Dept. of Micromax for their valuable help.
ROOHI SIKKA
PREFACE
I, ROOHI SIKKA have made this project in order to show technique’s of
“MICROMAX”. This report contains all the necessary information
regarding the history & evolution Mobile company, convey of brand
personality, methodology. There is cut throat competition and markets have
now realized the value of customers. Customer orientation is the key word of
the present times. Consumer buying preferences, tastes, choice have changed
and they have become much more quality conscious. It led to a boom in the
consumer market people was on the spending spree.
This project contains all the information about “MICROMAX”.
STUDENT DECLARATION
I, ROOHI SIKKA student of MBA RIMT College, Panipat here by declare
that this project report on “A Comparative Study on Consumer
Buying Behaviour Regarding Various Brand Names; A
CASE STUDY ON MICROMAX” is submitted in the partial
fulfillment for the requirement of degree MBA. It is of my own efforts &
not for the award of any other title or prize.
Submitted To: Submitted By: MS ISHA KALRA ROOHI SIKKA
Project Incharge MBA Department Of MBA. RIMT.College RIMT.College Panipat Panipat
CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION TO INDUSTRY
3. INTRODUCTION TO MICROMAX COMPANY
Company Introduction
Micromax in India
Board of Director’s
Product & Services
Corporate Responsibility
Office Locations
Company Financial Reports
4. INTRODUCTION TO STUDY UNDERTAKEN
5. OBJECTIVES OF THE STUDY
6. LIMITATIONS
7. RESEARCH METHODOLOGY
8. ANALYSIS & INTERPRETATION
9. CONCLUSION AND FINDINGS
10.SUGGESTIONS/RECOMMENDATIONS
11. ANNEXTURE
12. BIBILOGRAPHY
EXECUTIVE SUMMARY
The project is a study of Consumer buying behaviour about mobile handsets
offered by different companies like NOKIA, MICROMAX, MOTOROLA and
others. In this Project NOKIA is being taken as benchmarking to study especially
customers buying behavior so as to know;
Why people prefer NOKIA first while they are going to purchase any
Mobile Handset?
In spite of all Marketing efforts done by Micromax Why people aren’t ready
to purchase its Handsets?
What personal and organizational factors influence customers buying
behaviour?
To understand the degree of influence of product factors and service
factors on the customer buying behaviour.
Although all my research study is based on primary data that is collected through
questionnaire but few information is collected through secondary data like
company profile and results. The sample size is 200 and the research design
chosen is exploratory research design.
The conclusions drawn from this study are that in most of the customers are now
quality sensitive rather than price. A number of personal, psychological,
demographic and other factors influence customers buying behaviour. Most of
the customers get informations to get awareness from their friends and their
evaluations are based on that informations. Advertising and Word of mouth play
important role to create brand awareness and lead sales of mobile handsets.
After having a comparative overview it is known that Nokia as a market leader is
enjoying 63% market share where Micromax is having only 4% in Indian Mobile
Industry.
INTRODUCTION
TO
INDUSTRY
INTRODUCTION TO INDUSTRY
India to become 3rd largest mobile population in world by 2009 as middle classes
'go mobile' Data from the "Indian Mobile Market 2008" statistical handbook
reveals that mobile ownership will pass 100 million in 2009 as 'the largest
middleclass in the World’ takes up ownership. With 115.3 million forecasted ile
owners in 2009.
India ranks 3rd in the world behind only China and the USA.
Indian mobile owners are becoming younger as a result of cheaper calls;
subsidized handsets and widespread availability of prepay lowering the barriers
to ownership.
Relatively low GDP combined with the popularity of prepay still exerts downward
pressure on ARPU in India. Average revenues stand at under $8 per month in
2008, lower than the global average at $21.30. 25 – 29 year olds spend the most,
with ARPU at over $8pcm. The rising use of data services, particularly SMS, has
stemmed ARPU decline in this age group.
India has ranked next only to China in registering high GDP growth. The Indian
manufacturing output has been increasing year over year and the composites
industry has been growing at about 20% in the last couple of years. The need for
composites is increasing day by day and it is predicted that the composites
market will grow by 4 times the current consumption by the year 2012. This
report discusses in detail the large need for composites and the many new
applications that will emerge. The presence of many multinationals together with
a growing need for applications will ensure a steady market growth for the
composites in India.
India is one of the fastest growing markets for wireless technology. The country’s
mobile operators are currently providing services based on predominantly on
GSM, but also on CDMA. Whilst India has been moving into advanced forms of
mobile technology, including GPRS and EDGE, the country has stopped short of
extensive adoption of 3G, although trial services are being set up. Prepaid
services have been an important driver of growth in subscriber numbers and
represent around 75% of the total mobile subscriber base. The first mobile
services were introduced in 1996, but did not take off until 1998. Mobile data
services are expected to grow strongly on the back of rising mobile subscriptions.
THE INDIAN MOBILE HANDSET MARKET
The size of Indian mobile handset market in FY 2008-09 was Rs 8,805 crores.
Share of GSM handsets was 84% (7,384 crores) even higher than the GSM
connections (75%) for the same period. It was also much higher than that for
CDMA handsets, which accounted for Rs 1,421 crores (16% market share).
MOBILE GROWTH AND TRAI INITIATIVES
MOBILES CAN ADD VALUE TO GDP
Source –economic times/17 feb.09/p5
Mobile phones are not just about getting connected; they can prove to be a great
money-spinner for the country’s economic health by the virtue of productivity
gains achieved by its users, especially in a developing market like India.
According to a new study of three developing markets- china, India and
Philippines – conducted by the global consultancy giant McKinsey, the economic
impact of all wireless activities on the economy of these countries is upto four
times of the combined value of mobile operators.
The overall wireless activities in India contributed about 2 % to the country’s GDP
in 2008, the study says, adding that this could rise considerably going ahead as
the mobile penetration was a mere 7% in the year. Even a 2% contribution to the
GDP amounts to a whopping $14 billion, taking into a account a GDP of $700
billion in 2008.
In markets like china and Philippines, where wireless penetration is higher, the
wireless activities contributed 5% and 7.5%, respectively, in 2008. Wireless
penetration in china stood at 28% in china and 41% in the Philippines in 2008.
Much of the value created by wireless activities appears to come from the
productivity gains and economic surplus that wireless customers receive simply
by using their mobile phones, the study shows. According to the report, these
results should encourage regulators and operators to get mobile phones into
more hands more quickly.
“By promoting the use of mobile phones, regulatory and industry players can
amplify such gains, as well as the contributions that wireless industries make to
GDP. India has 2% contribution while having the lowest penetration,” Mckinsey
analyst Luis Enriquez said. A 10% increase in penetration would add $2.3 billion
to the end-user surplus and a further $6.2 billion in operator revenues in the
country, he added.
India, the world’s largest growing telecom market, is expected to grow to 500
million mobile users by 2011 and 250 million by 2010 from 150 million at present.
Mobile phones come with a price tag of less than Rs. 2000 and both affordable
STD and ISD call charges, the number of users would increase as the
decreasing average age of cell-phones users are likely to translate to additional
subscribers.
INTRODUCTION
TO
MICROMAX
COMPANY INTRODUCTION
Back in 1991, Micromax made a humble beginning and today prides itself in
being the leader in Wireless Telecommunication in the country.
With a futuristic vision and on exhaustive R&D, Micromax has successfully
generated innovative technologies that revolutionized the telecom sector.
Micromax, is a pioneer in creating life-enhancing mobile phone solutions and
wireless technologies that cater to the increasingly sophisticated needs of mobile
users around the world.
Driven by aspirations and passion for the telecom world, Micromax is geared up
to bring paradigm and groundbreaking mobile solutions incorporating the latest in
cutting edge technology.
Infused and equipped from nearly two decades of expertise and continuous
research, we steadfastly strive to remain at the forefront in terms of both design
and technological advancement.
Micromax dedicated to deliver the latest in breath taking technologies to you in
the most quickest and Xtreme forms.
MICROMAX IN INDIA
Micromax Informatics Ltd is a India based Telecom manufacturer and
distribution partner to Nokia, Samsung, LG etc for their IT / Telecom products in
India. With an annual turnover of INR 5000 million, Micromax has offices in all
major India cities and global offices in Dubai and USA.
Micromax has been making supplies to the Indian GSM operators for their
different telecom requirements and is now expanding their product range to the
global markets. Micromax's products comes with a qualty seal meaning product
satisfaction, high relieability resulting in repeated business. Micromax has their
own 24 hour operational customer service centre just in case you need that small
bit of information albeit at the wrong hour.
Micromax is headquartered at Gurgaon, Haryana, with offices at USA,
HongKong. It has research and development centers at USA and HongKong.
Motorola's operations in India are divided into three businesses: Enterprise
Mobility Solutions, Home & Network Mobility and Mobile Devices. The
Company’s focus areas include, Mobile handsets, Wireless Infrastructure,
Managed and Hosted Services, Broadband Equipment (wired as well as
wireless), Trunking & Two Way Radios, Software Development, bar code
scanners, RFID systems, and enterprise voice and data mobility solutions.
Micromax already a leader in wireless and broadband communication is picking
up the market in cell phones. It is basically a US based company that because of
the potential of Indian market and buyers has established its branch here in
1991. Started at small scale at that time. it has almost 700 employees in
Gurgaon.
BOARD OF DIRECTOR
Mr. Vikas JainDirector of the Board, Micromax Informatics Ltd.
Mr. Vikas Jain , Business Director Micromax, said, “Delivering best of the
technology and path breaking innovation has always been our priority. We work
towards bringing exclusive technology in the hands of the masses. A 3G Mobile
is stillconsidered an expensive piece of technology, but H360 is here to breakall
the rules. The journey of 3G in India has just begun and there is aneed for mass
awareness of 3G. We are thankful to MTNL for having worked with us to enable
us to bring forth arevolutionary product for the Indian 3G subscribers. We are
confident that thishandset will redefine the 3G experience in India and with
increasing awarenessand availability, 3G mobiles will gain mass popularity.”
PRODUCTS AND SERVICES
Micromax believe it’s possible to have everything. That’s why Micromax offers a
wide range of products and services – from consumer devices to solutions for
businesses, governments, and service providers. Ready to do more? So are we.
Micromax is a global leader in providing integrated communications
solutions and embedded electronic solutions. These include:
Software-enhanced wireless telephone, and messaging products and
systems, as well as networking and Internet-access products for
consumers, network operators, and commercial, government and
industrial customers.
Embedded semiconductor solutions for customers in networking,
transportation, wireless communications and imaging and entertainment
markets.
Embedded electronic systems for automotive, communications, imaging,
manufacturing systems, computer and industrial markets.
Digital and analog systems and set-top terminals for broadband cable
television operators.
Micromax products are distributed through the main channels and shops for
(mobile) communication. We advise you to contact your local communications
specialist with regards to availability and prices of Micromax products.
PRODUCT INFORMATION
Some Micromax products designs allow you to change the shape and colour of
your phone. Your Micromax product may support 'convertible covers', offering a
variety of different looks that constitute the housing of the phone. We recommend
the use of Micromax 'convertible covers', since they have been tested for
compliance with applicable mobile phone standards and regulations, including
Specific Absorption Rate (SAR).
Micromax does not warrant that the usage of non-Micormax convertible covers or
housings will meet such applicable standards and may invalidate your Micromax
warranty.
MICROMAX MOBILES
MICROMAX X500
Feature Highlights
2.8" 262K Full Touch Lens with Sense Flow
5MP Camera with LED Flash
Face Tracking
Sports Mode
Anti Shake
Direct TV Out
Preloaded Opera Mini Web Browser
Expandable Memory (upto 8GB)
MICROMAX GC 700
Feature Highlights
Dual Reception Mode (CDMA/GSM) using Gravity Sensor
262K Color Touch Lens with Sense-Flo
Motion Sensor
2MP Camera
Multi Format Music Player
Video Recorder/Player
Stereo FM Radio
Large PHB/SMS Memory with PhotoCall
Preloaded Opera MINI Web Browser
MICROMAX X115
Feature Highlights
Dual SIM - Dual Standby
Marathon Battery *
Stereo FM Radio
Music Player
Expandable Memory(upto
2GB)
Speaker Phone
Voice Recorder
Dust Resistant Keys
MICROMAX X2i
Feature Highlights
Dual SIM-Dual Standby
Marathon Battery
Standby Time - 30 Days*
Talk Time - 14 hours*
Stereo FM Radio
MP3 Player
Digital Camera
GPRS/WAP/MMS
Expandable Memory (upto 4GB)
MICROMAX Q3
Feature Highlights
Dual GSM-Dual Standby
Qwerty Keypad(ezpad)
Preloaded mobile social messenger (Nimbuzz)
1.3MP Camera
Multi Format Music Player
Stereo FM radio
Bluetooth(A2DP)
Large SMS & PHB using Photocall
Expandable Memory (upto 2GB)
MICROMAX H360
Feature Highlights
LIVE TV
Video Calling on 3G
High speed mobile broadband HSDPA (3.6Mbps)
2.4" QVGA Touch Screen
3MP CMOS Camera
Video Recording/Playback (4X Zoom)
Expandable Memory (upto 8GB)
MICROMAX DATA CARDS
MMX200C Data Card
Features:
High-Speed Connectivity with speed of upto 153.6 Kbps
T-Flash compatible upto 4GB
Supports Plug and Play Installation
Large Capacity Phonebook
MMX611U Data Card
General Features:Quad Band(850/900/1800/1900 MHz)Supports EDGE (MS Class 10)Auto-Intsall SoftwareInternal AntennaUSB 2.0 Form FactorSupports USB Storage (upto 2GB) Operating System Support:Windows 2000, XP, Vista Additionals:DATA/SMS SupportGlobal Roaming
Operator Independant
MMX610 P Data Card
General Features:
Quad Band(850/900/1800/1900 MHz)
Supports EDGE (MS Class 10)
Robust Metal Antenna
PCMCIA slot compatibility
Operating System Support:
Windows 2000, XP, Vista
Additionals:
DATA/SMS Support
Global Roaming
CORPORATE RESPONSIBILITY
Accessibility
Life is a challenge. We know that. But communicating doesn't have to be. At
Motorola, we recognize that customers have different needs and capabilities. We
are committed to creating products that meet the needs of everyone possible —
regardless of abilities.
We provide a wide range of products for people with diverse communications
needs — with hearing, speech, vision, dexterity, mobility or cognitive needs at
varying levels.
Business Conduct
The Micromax Code of Business Conduct reaffirms what each Micromax
employee stands for: Doing the right thing. Every day. No excuses.
Micromax's "Key Beliefs" have been in existence for decades, and Micromax
continues to have a strong culture of corporate ethics and citizenship.
Our Key Beliefs: The Way We Will Always Act
Uncompromising Integrity
Constant Respect for People
The Micormax Code of Business Conduct sets the standards for Micromax
commitment to uncompromising integrity. Since its original establishment in the
1991s, the Code has provided Micromax employees guidance for their business
activities, placing a priority on establishing trust with our stakeholders. However,
it is not enough to declare our good values. Micromax is committed to acting on
them — through the potential of our technology and the way we conduct our
business.
Environment, Health & Safety
Recycling
Micromax is a strong proponent and supporter of global environmental sustainability and recycling programs. In partnership with our carriers, customers, retailers and recyclers and on our own, we operate takeback programs across the globe.
Mobile phones
The success of our mobile phone reuse and recycling program depends on consumer participation. We work to increase the number of people who recycle their mobile phones and accessories by:
Enclosing prepaid return envelopes in packaging boxes
Encouraging recycling through charity take-back programs
Holding electronics collection events at our facilities for employees and
local communities
Offering incentives periodically
Participating with governments and other companies in take-back events
and promotions
Locating highly visible collection containers in our service centers
We accept any mobile phone or accessory — not just Micromax products.
OFFICE LOCATIONS
Corporate Office
Micromax House, 697, Udyog Vihar, Phase-V,
Gurgaon, Haryana, INDIA
Ph. : 0124-4009601/2
Fax: 0124-4009603
USA
Micromax Convergence Inc, 1668 S Lewis Street,
Anaheim, CA 92805, USA
HongKongRoom A, 15/F, Hillier Comm. Bldg65-67 Bonham Strand EastSheung Wan, Hong Kong
Factory
Micromax Informatics Ltd, Plot No.234,
HPSIDC Industrial Area, Tehsil Nalagarh, Distt Solan (HO)-173205
BRANCH OFFICES
JAMMU HIMACHAL PRADESH HIMACHAL PRADESH House no 45,Deshmesh Nagar, Digiana , Jammu – 180010
Khasra no.42, Swaraj Building, VillageAmbota, Sector-4, Parwanoo,Himachal Pradesh – 173220
Plot 234, HPSIDC Industrial Area Baddi ,Tehsil Nalagarh,Distt Solan, Himachal Pradesh – 173205
PUNJAB HARYANA UTTARPRADESH Plot no- 297F, Phase 8B,Industrial Area, Mohali,Punjab. – 160059
34- B, Udyog Vihar,Phase- 5, Gurgaon, HARYANA – 122016
E- 7, Madhuban palace, 1st floor, Sanjay Nagar Sector- 23, Ghaziabad,Uttar Pradesh – 201001
UTTARAKHAND DELHI, RAJASTHAN E 410/1/A, Rajendra Nagar,Roorki, Uttarkhand – 247667
9/52/1, Kirti Nagar Industiral Area, Kirti Nagar, Delhi – 110015
H- 410, Ramesh Marg, C- Scheme, Jaipur, Rajasthan – 302001
GUJRAT, MUMBAI, MADHYA PRADESH 116/1384, Laxmi Kripa Flat, New AEC Cross Road,Narayanpura, Ahmedabad,Gujrat – 380013
Plot no- 26, Sector 19E,Vashi, (Off to Palm Beach Road) Near Adlabs,New Mumbai – 400705
188, Rambali Nagar,Kila Maidan, Indore,Madhya Pradesh – 45006
CHATTISGARH ORISSA KOLKATA Near Shivnath Hyundai, Beside Union Bank of India, G.E.Road, Tatibandh Chowk, Raipur,Chattishgarh
Plot no. 750, At- Vimpur Mauza,Near Airport Gate,Bhubaneswar, Dist- Khurda, Orissa - 751020,
Netaji Nagar, "E" Block, P.O.- Ganganagar, Madhyamgram, Kolkata – 700132
BIHAR RANCHI ASSAM A/11, Sachivalaya Coloney, Kankarbagh, Patna, Bihar Sant Vihar, Booty Road , Bariatu, P.S.- SadarRanchi - 834009
Dulal Tea Ware House,NH- 37, Bel- tola, Guwahati,Assam – 781018
ANDHRA PRADESH TAMIL NADU BANGALORE Bunglow # 179, Old Bowenpally, Behind HP Petroll Pump, Near Old Bowenpally Bus Stop, Secunderabad , Andhra Pradesh – 500011
No- 17, 1st Noble Street , Near to Engine Values Ltd, Alandur , Chennai, Tamil Nadu - 600056.
28, 20th 'I' Cross, Ejipura, Viveknagar Post, Bangalore - 560047KERALA
COMPANY FINANCIAL REPORTS
PERIOD ENDING 09/2009 06/2009 03/2009 12/2008
Balance Sheet - Assets
Cash and Equivalents 3,064,000 2,974,000 2,757,000 2,693,000
Marketable Securities * 735,000 595,000 465,000
Accounts Receivable 225,000 4,330,000 5,820,000 6,035,000
Other Receivable * * 1,119,000 954,000
Receivables 225,000 4,330,000 6,939,000 6,989,000
Work in Progress * 1,724,000 1,565,000 1,532,000
Finished Goods * 1,634,000 1,609,000 1,799,000
Inventories Adjustments & Allowances
* (709,000) (416,000) (390,000)
Inventories 2,659,000 2,649,000 2,758,000 2,941,000
Current Deferred Income Taxes
* 1,954,000 1,882,000 1,951,000
Other Current Assets * 7,226,000 5,288,000 5,444,000
Total Current Assets 17,363,000 19,868,000 20,219,000 20,483,000
Land & Improvements * 150,000 158,000 158,000
Building & Improvements * 1,934,000 2,042,000 2,045,000
Machinery, Furniture & Equipment
* 5,811,000 5,812,000 5,821,000
Total Fixed Assets * 7,895,000 8,012,000 8,024,000
Gross Fixed Assets (Plant, Prop. & Equip.)
2,442,000 7,895,000 8,012,000 8,024,000
Accumulated Depreciation & Depletion
* 5,390,000 5,437,000 5,447,000
Net Fixed Assets (Net PP&E)
2,442,000 2,505,000 2,575,000 2,577,000
Intangibles * 1,298,000 1,522,000 1,201,000
Cost in Excess 2,837,000 4,351,000 4,358,000 4,517,000
Non-Current Deferred Income Taxes
* 3,060,000 3,074,000 2,679,000
Other Non-Current Assets * 2,037,000 1,991,000 2,676,000
Total Non-Current Assets 5,279,000 13,251,000 13,520,000 13,650,000
Total Assets 27,887,000 33,119,000 33,739,000 34,133,000
Balance Sheet - Liabilities, Stockholders Equity
Accounts Payable 3,188,000 3,834,000 3,806,000 3,660,000
Notes Payable 92,000 189,000 145,000 174,000
Accrued Liabilities * 6,229,000 6,116,000 6,445,000
Deferred Revenues * 1,621,000 1,507,000 1,497,000
Total Current Liabilities 10,620,000 11,873,000 11,574,000 11,776,000
Long Term Debt 4,092,000 3,988,000 3,971,000 4,074,000
Other Non-Current Liabilities
3,650,000 2,599,000 2,990,000 3,103,000
Total Non-Current Liabilities 7,742,000 6,587,000 6,961,000 7,177,000
Total Liabilities 11,022,000 18,460,000 18,535,000 18,953,000
Common Stock Equity 9,525,000 14,659,000 15,204,000 15,180,000
Common Par * 6,800,000 6,797,000 6,767,000
Additional Paid In Capital * 926,000 882,000 749,000
Retained Earnings * 7,649,000 8,159,000 8,269,000
Other Equity Adjustments * (716,000) (634,000) (605,000)
Total Capitalization 13,617,000 18,647,000 19,175,000 19,254,000
Total Equity 9,525,000 14,659,000 15,204,000 15,180,000
Total Liabilities & Stock Equity
20,547,000 33,119,000 33,739,000 34,133,000
Cash Flow * 358,000 843,000 826,000
Working Capital 14,083,000 7,995,000 8,645,000 8,707,000
Free Cash Flow * (866,000) (771,000) (708,000)
Invested Capital 13,617,000 18,647,000 19,175,000 19,254,000
* = Data not available
INTRODUCTION TO STUDY UNDERTAKEN
SOME HIGHLIGHTS OF NOKIA & MICROMAX, MOTOROLA STRATEGIES
IN MAR.09
Last September, Pitodia ponied up $56 for his first handset, a simple but sturdy
Nokia N86. Now he sits under a colorful beach umbrella, earning as much as $10
a day taking orders by phone for both himself and nearby vendors. "I tried many
phones, but Nokia is the most user-friendly," says Pitodia. "I am the only one in
the footpath with a mobile," he says proudly. More than any other handset maker,
Nokia Corp. has connected with the likes of Wang and Pitodia and their billions of
countrymen. In both China and India, the Finnish company is the top brand.
In China last year, it had nearly 31% of a crowded market, well ahead of the 10%
controlled by No. 2 Motorola Inc. Nokia's sales in Greater China (the mainland,
Hong Kong, and Taiwan) jumped by 28%, to $4.5 billion. The region today is the
company's biggest market, accounting for 11% of global revenues, compared
with 8% in the U.S. In India, Nokia has a 60% share, with sales last year of about
$1 billion. By 2010 the company expects India to be its No. 2 market.
Nokia isn't letting up: On Mar. 11 it opened its first Indian factory, a $150 million
facility near the southern city of Madras (Chennai) that will turn out as many as
20 million inexpensive phones annually both for the local market and for export.
And the company is doubling the size of its plant in the Chinese city of
Dongguan, near Hong Kong.
The two Asian giants are of fundamental importance for Nokia. The Finnish
company has played catch-up in the U.S., where Motorola has beaten it with hot-
selling models such as the ultra-thin RAZR. But the U.S. market is nearly
saturated.
The company that can control Asia's Big Two will have a lead in the global
handset wars. Today, China is the world's No. 1 cellular market, with some 400
million users and growth last year of 20%. While India is far smaller, with just 81
million users in February, handset sales are expected to double this year and
total users could hit 500 million by 2010.
"China and India are critical to Nokia's overall strategy and they can only get
more important," says Neil Mawston, associate director of consultancy Strategy
Analytics.
Caught off guard
Just a few years ago, Nokia faced big troubles in both countries. In India, growth
was sluggish. Nokia was an early mover -- the country's first cell-phone call was
made on one of its handsets -- but regulation hindered expansion.
In China, Nokia not only trailed Motorola, Micromax but was threatened by
ascendant domestic players such as TCL and Ningbo Bird, newcomers to the
business that had quickly gobbled up almost half of the market with their
inexpensive but well-designed handsets.
The Finns "were caught off guard by the rise of the domestic vendors," says Ted
Dean, managing director at BDA China Ltd., a Beijing consulting firm. "Suddenly,
Nokia was struggling."
Where the Money Is in Wireless
Nokia Realigns for the Future
The local upstarts flooded stores nationwide with armies of sales assistants
flogging their brands. "Our people would put up posters, and within 30 minutes
they would be torn down," recalls Colin Giles, manager of Nokia's China handset
business. Visiting a shop in the western city of Chengdu, Giles says, "You could
hardly move in the store because of the number of salespeople."
To fight back, Giles pushed through big changes. Nokia decentralized, going
from three Chinese sales offices in 2003 to 70 today. Instead of eight national
distributors, Nokia now has 50 provincial ones.
And since rivals were having great success with handsets designed for mainland
users, Nokia introduced its own China-specific models. For instance, since many
rural Chinese aren't familiar with the romanized transliteration system that most
cell phones use to input Chinese for text messages, Nokia developed two
phones with software that lets them write characters with a stylus.
And Nokia invested in new computer systems that provide detailed sales data.
"Tomorrow, I will be able to tell you what happened today in the top 4,500
outlets," Giles boasts. "In a week's time, I will be able to tell you about 30,000
outlets." The result: Nokia sold 27.5 million handsets in China last year, triple
what it sold in 2003. Now, the company is planning for the launch of 3G in China,
expected this year.
Since 2002, when India's cellular market took off, Nokia has drawn on its China
experience to consolidate its lead. In 2004 the company launched two India-
specific models, which included a flashlight, dust cover, and slip-free grip (handy
during India's scorching, sweaty summers).
Nokia introduced software in seven regional languages for non-Hindi speakers
and added ringtones of patriotic songs such as the nationalist hymn India Is the
Best. And the company's marketers pitched the phones through ads tailored to
India, with one early campaign showing burly truck drivers calling home on Nokia
handsets.
"We invested when the market was nothing," says Robert Andersson, who
oversees manufacturing, sales, and marketing at Nokia. "We have been able to
harvest the fruits of that commitment in the last four years."
Fierce rivals
Nokia has also reaped the fruits of rivals' missteps. Motorola, Micromax was
slower in reacting to the threat from the Chinese locals and has had a tougher
time bouncing back. "Motorola, Micromax didn't change its strategy for a long
time," says Chris Han, an analyst in Beijing at Norson Telecom Consulting.
The Chinese upstarts, meanwhile, have suffered sharp reversals due to
disappointing quality. In India, Micromax, Motorola didn't focus on the market
early enough, says Pankaj Mohindroo, president of the Indian Cellular Assn., a
trade group. Today its share there is just 5% or so.
Rivals say the time is right to eat into Nokia's lead. Samsung in the past focused
solely on the middle to high end of the market in India but began selling lower-
cost phones last year. And on Mar. 7 the Korean company opened a new factory
in Gurgaon, near Delhi.
Motorola and Micromax has revamped its structure in China, expanding its
sales force and strengthening its distribution network to cover 300 cities. By
February, Motorola had boosted its market share by several percentage points.
"We've done a lot of the blocking and tackling," says Michael Tatelman,
Motorola's China chief. And in India, Motorola is planning to market phones
costing as little as $35. Motorola Vice-President Allen Burnes calls India "pivotal"
and says the company will open its first factory there in 18 months. Of course,
that's 18 months behind Nokia, giving the Finns another opportunity to solidify
their lead in Asia's Big Two.
FACTORS AFFECTING CONSUMER CHOICE ABOUT MOBILE PHONES;
Mobile phone choice and use has also been found to be related to prior
consumption styles. According to a fresh survey of Finnish young people aged
16-20, it was found that mobile phone choice and especially usage is consistent
with respondents’ general consumption styles (India, 2006). The research
showed that addictive use was common among females and was related to
trendy and impulsive consumption styles. Instead, males were found to have
more technology enthusiasm and trend-consciousness. These attributes were
then linked to impulsive consumption. The study concluded that genders are
becoming more alike in mobile phone choice. Because individual differences in
consumption patterns are obviously identifiable, we hypothesize that background
variables especially have an influence on mobile phone choice.
H1:
Demographic factors have an influence on the evaluations of different attributes
related to mobile phone choice. Specifically, gender and social class will impact
on the evaluations of the attributes as men belonging to higher social class seem
to be more technology savvy. Consumers value in smart phones features that
enhance their personal time planning (e.g., Jones, 2006). These high-rated
features include calendar and e-mail services. It is interesting to note that
according to Jones the so-called killer services such as gaming, gambling
and music downloads are not seen that important in the diffusion of smart
phones. However, there is little support to this argument. However, while
synchronization of calendar and e-mail services to PCs has become easy and
fast, the importance of time planning in mobile phones becomes more and more
important. Thus, the following hypothesis is proposed:
H2:
Consumer’s value personal time planning properties in the choice of new
mobile phones. Another important aspect that has risen from different studies is
that consumers purchase new phones due to the fact that their existing one’s
capacity is not appropriate referring to the idea that new technology features
such as built-in cameras, better memory, radio, more developed messaging
services, and color displays are influencing consumer decisions to acquire new
models. Thus it can be expected that new features will influence the intention to
acquire new mobile phones, and therefore the following hypothesis was
developed:
H3:
New technical properties increase consumer willingness to acquire new phone
models. In addition, it seems that size and brand play to some extent an
important role in decision making. Haryana (2006) for instance surveyed Indian
mobile phone users and found that size of the phone had no impact on mobile
phone choice, but this finding might be due to the fact that all competing brands
have quite similar sized phones that are small enough. Researcher continues
that the trend will actually be not towards smaller phones but towards phones
with better capability and larger screens. While companies are advertising new
models and services that do not yet exist, it according to the paper signals to the
market that the company is at the cutting edge of technology and shows what will
be available in the very near future. The sales of new phones will then be driven
by replacement rather than adoption. Thus, it is hypothesized that size and brand
are related to mobile phone choice at some extent:
H4a:
When choosing between different mobile phone models, consumers value larger
screen size but the whole phone should be small enough and light to carry in
pocket.
H4b:
When choosing between different mobile phone models, consumers value
familiar brands. Price of the phone has been identified as a critical factor in the
choice of the mobile phone model, especially among younger people. By the use
of a survey (n = 200), they found that besides new technological advances price
was the most influential factor affecting the choice of a new mobile phone model.
In India consumers pay relatively low prices for their phones. In India, that kind of
linked transactions are regulated by law and currently illegal. In India, this kind of
regulation has resulted in a situation where people change their operator quite
often, and mostly on the basis of price. On this basis, it should be noted that
price of the phone plays an important role in India and thus, we hypothesize that:
H5:
When choosing between different mobile phone models, especially lower
income consumers have a price limit that restricts the choice to fewer models.
To summarize, consumer choice behavior can be studied through various
frameworks such as the problem-solving paradigm and through consumer choice
from product class through brand choice.
FACTORS AFFECTING CONSUMER’S CHANGE IN CHOICE AND
CONSUMER BEHAVIOUR
INTERPRETATION;
Although consumer motives underlying mobile phone acquisition are something
one could call general knowledge, relatively little is known on the buying decision
making process in relation to new mobile phone models packet with different
properties (i.e., smart phones) allowing users to communicate in fresh ways.
OBJECTIVES
OF
THE STUDY
OBJECTIVES OF THE STUDY
MAIN OBJECTIVES;
The primary objective of this project is to examine the importance of
different factors affecting consumer’s motives related to mobile
phone purchasing and to investigate the main reasons for Brand
switching.
The main objective of the study is to consider each and every
aspect of Micromax in terms of its offerings and Marketing activities
done by it to get the competitive Market share.
OTHER OBJECTIVES;
In India where Micromax is lacking to get better Market share in spite of
making vital efforts to compete Nokia and how can be the better image
developed in front of potential and existing customers.
Which factors strongly matters for customers while they think to purchase
any mobile handset?
Perceptions of the existing and potential customers towards different
brands of Mobile Handsets.
What tangible and intangible features should be added or improved in
Micromax offerings to provide better satisfaction in terms of value or
benefits.
LIMITATIONS
OF
THE STUDY
LIMITATIONS OF THE STUDY
While conducting a Marketing Research, the researcher faces a lot of
limitations. The present study is not an exception. A few errors have been
expected despite of best efforts to avoid them but this is expected that still the
study is much relevant, in spite of following;
As the study is based mainly on primary data and some instances of
secondary data is used in this study, the possibilities of personal bias
can’t be ruled out.
The researcher had an intention to reach a large sample size but due
to lack of much time and financial resources the intention could not be
accomplished upon the desired level.
Some respondents were reluctant to reveal the informations on the
pretext that they didn’t have sufficient time.
Despite all of the limitations efforts are being made so as best to
minimize the errors caused in the results.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
RESEARCH DESIGN- EXPLORATORY R.D
Exploratory research design is used to find out the cause of less
market share captured by Micromax rather than Nokia. After problem
identification researcher to solve the above problem has tried to sort out ideas.
SAMPLING DESIGN- RANDOM SAMPLING
Random sampling has been used to select the samples to collect
informations, which could provide better solutions to solve the problem.
UNIVERSE OF STUDY- INDIA
India has been selected by the researcher to draw inferences on the
based of sample study.
SURVEY POPULATION- HARYANA
Haryana has been taken as total population of the survey, on the
bases of which inferences can be drawn about India.
SAMPLING UNIT- ALL USERS AND NON-USERS
Researcher also want to check out total brand image of Micromax
in India, which can be better understood by perceptions and buying behaviour of
users and non-users of Micromax.
SAMPLE SIZE- 200 RESPONDENTS
Researcher had the greater intention to survey out a large sample
but due to lack of much time and financial resources it couldn’t be possible and
only 200 respondents have been taken as sample size.
DATA COLLECTION- PRIMARY & SECONDARY DATA
Primary data- Primary data has been collected through the
structured questionnaire with the help of cooperation made by respondents,
which helped to draw solutions to the problems.
Secondary data- Secondary data has been collected through
Internet and broachers of company offerings.
ANALYSIS
AND
INTERPRETATION
TABLE-1
RESPONSES NO. OF RESPONDENTS %AGE
YES 176 88
NO 24 12
INETRPRETATION-
The above graph is interpretated as 88% respondents having Mobile Handsets
and 12% having not.
TABLE-2
REASONS NO. OF RESPONDENTS %AGE
COST EFFECTIVENESS 9 37.5
ALREADY HAVING LANDLINE 11 45.8
HEALTH CONSIOUSNESS 1 4.16
ANY OTHER 3 12.5
TOTAL 24 100
REASONS FOR NOT BUYING ANY HANDSET
19%
23%
2%6%
50%
COSTEFFECTIVENESS
ALREADY HAVINGLANDLINE
HEALTHCONSIOUSNESS
ANY OTHER
TOTAL
INTERPRETATION
This graph is showing the reasons that 19% respondents are not ready to buy
any Mobile handset for Cost effectiveness, 50% are satisfied with their landline
phones, 2% for Health consciousness and 6% for any other reason.
TABLE-3
BRAND NAME NO. OF RESPONDENTS %AGE
NOKIA 111 63
MOTOROLA 25 14
MICROMAX 7 4
ANY OTHER 33 19
TOTAL 176 100
INTERPRETATION
This graph is interpretated as 63% respondents having NOKIA Mobile handsets,
14% having MOTOROLA Mobile handsets, 4% having MICROMAX Mobile
handsets and 19% having any other Mobile handsets.
TABLE-4
TYPE OF HANDSET NO. OF RESPONDENTS %AGE
GSM 158 89.77
CDMA 18 10.23
INTERPRETATION
This graph is showing that 90% respondents having GSM handsets and 10%
having CDMA handsets. Most of respondents having CDMA handsets are using
TATA’s services.
TABLE-5
FACTORS RANKING SUM RANKS
COST 284 3
RESALE VALUE 321 5
DESIGN/LOOK 271 2
FUNCTIONS 254 1
WEB BROWSERS 344 6
BATTERY BACKUP 296 4
MEMORY CHIP CAPACITY 376 7
COUNTRY OF ORIGIN 382 8
FACTORS RATED BY CUSTOMERS WHICH INFLUENCED THEIR BUYING DECISIONS FOR
CURRENT HANDSETS
11%13%
11%10%14%
12%
14%
15%
COST RESALE VALUE
DESIGN/LOOK FUNCTIONS
WEB BROWSERS BATTERY BACKUP
MEMORY CHIP CAPACITY COUNTRY OF ORIGIN
INTERPRETATION
This graph is showing that factors having least percentage have least ranks
given by respondents, which influenced their buying decisions for their current
Mobile handsets.
TABLE-6
TYPE OF HANDSET NO. OF RESPONDENTS %AGE
FIRST HAND 104 59.09
SECOND HAND 72 40.91
TOTAL 176 100
SAMPLE SIZE WITH RESPECT TO TYPE OF HANDSETS
59%
41%FIRST HAND
SECOND HAND
INTERPRETATION
This graph is showing that 59% respondents having First Hand Mobile handsets
and 41% having Second Hand Mobile handsets.
TABLE-7
COST NO. OF RESPONDENTS %AGE
<5000 94 53.4
5000-10000 64 36.36
10000 & Above 18 10.22
TOTAL 176 100
COST OF THEIR MOBILE HANDSETS
54%36%
10%
<5000
5000-10000
10000 & Above
INTERPRETATION
The above graph is representing that 54% respondents having their Mobile
handsets with cost <5000, 36% having Handsets with cost between 5,000-10,000
and rest of 10% having Handsets with cost 10,000 & above.
TABLE-8
N0. NO. OF RESPONDENTS %AGE
ONE 152 86.36
TWO 24 13.63
>TWO 0 0
TOTAL 176 100
RESPONDENTS HAVING NO. OF MOBILE HANDSETS
86%
14% 0%
ONE
TWO
>TWO
INTERPRETATION
The above graph is showing that 86% respondents having single Mobile handset,
14 % having two Mobile handsets and none of the respondent having more than
two handsets.
TABLE-9
RESPONSE NO. OF RESPONDENTS %AGE
YES 134 76.13
NO 42 23.86
TOTAL 176 100
RESPONDENTS WHO HAVE PURCHASED MOBILE SETS WITH BILL OR NOT
76%
24%
YES
NO
INTERPRETATION
This graph is showing that 76% respondents have purchased their Mobile
handsets with bill and rest of 24% respondents have purchased their Mobile
handsets without bill.
TABLE-10
RESPONSE NO. OF RESPONDENTS %AGE
YES 74 42.04
NO 102 57.95
TOTAL 176 100
STATUS OF RESPONDENTS WHO CHANGE MOBILE HANSETS FREQUENTLY OR NOT
42%
58%
YES
NO
INTERPRETATION
The graph is showing that 58% respondents change Mobile handsets frequently
and 42% don’t change Mobile handsets frequently.
TABLE-11
RESPONSE NO. OF RESPONDENTS %AGE
NEW TECHNOLOGY 36 48.64
STATUS 22 29.72
BOREDOM 16 21.62
TOTAL 74 100
REASONS FOR CHANGING OF MOBILE HANDSETS BY THEM
48%
30%
22%
NEW TECHNOLOGY
STATUS
BOREDOM
INTERPRETATION
The above graph is showing who frequently change their mobile handsets, 48%
respondents change their Mobile handsets because of new technology, 30%
change because of improvement in their Status and 22% change because of
Boredom with their current Mobile handsets.
TABLE-12
SOURCES NO. OF RESPONDENTS %AGE
TV 42 23.86
PRINTED MATERIALS 16 13.06
FRIENDS 86 48.86
DEALERS 20 11.36
ANY OTHER 12 6.81
TOTAL 176 100
SOURCES OF INFORMATION FOR THEIR BUYING OF MOBILE HANSETS
24%
9%
49%
11% 7% TV
PRINTED MATERIALS
FRIENDS
DEALERS
ANY OTHER
INTERPRETATION
This graph represents that 24% respondents have got informations about their
current handset through TV, 9% through printed materials (like newspaper,
magazines etc.), 49% through Friends, 11% through Dealers and rest of 9%
through any other sources.
TABLE-13
PARAMETERS NO. OF RESPONDENTS %AGE
TO A GOOD EXTENT 24 13.63
MODERATE 51 28.97
NOT VERY 101 57.38
TOTAL 176 100
EXTENT WITH WHICH THE DECISIONS OF RESPONDENTS ARE INFLUENCED BY THE
CELEBRITIES
14%
29%57%
TO A GOOD EXTENT
MODERATE
NOT VERY
INTERPRETATION
This graph represents that 14% respondents are influenced by Celebrities to a
good extent, 29% are influenced Moderately and 14% are not much influenced
by Celebrities.
TABLE-14
FACTORS RANKING SUM RANKS
RESALE VALUE 122 5
FUNCTIONS 52 1
PRICE 88 3
BATTERY BACKUP 102 4
TECHNOLOGY 72 2
CUSTOMER SERVICES 144 6
ANY OTHER 152 7
INTERPRETATION
This graph is showing that factors having least percentage have least ranks
given by respondents, which influenced their buying decisions for their
MICROMAX Mobile handsets.
TABLE-15
FACTORS RANKING SUM RANKS
BATTERY BACKUP 70 1
RESALE VALUE 94 3
BRAND NAME 112 5
TECHNOLOGY 114 6
COUNTRY OF ORIGIN 98 4
CUSTOMER SERVICES 82 2
ALL ABOVE 136 7
INTERPRETATION
This graph is showing that factors having least percentage have least ranks
given by respondents, which resist them for purchasing of any MICROMAX
Mobile handsets.
CONCLUSION
AND
FINDINGS
CONCLUSION AND FINDINGS
After analyzing the data, we can conclude that the users of cell phones
have been increasing day by day. This is not because for the status
symbol but it has become a necessity.
Customers are now becoming quality sensitive but not much price
sensitive.
If we study that which company dominant in the handsets market, we find
that Nokia is the company that covers about 70% market captured. It has
been proved by the survey that Nokia is the leader of the handsets
market.
Most of the respondents are satisfied with their present handset. They
don’t want to go to another handset because they are fully satisfied with
the performance of their handsets.
Due to technological change and extra features respondents said that they
were attracted towards the new cell phones/handsets.
After analyzing the data or with the help of response given by the users,
we can say that there is lot of opportunities in the cellular phone industry.
SUGGESTIONS
SUGGESTIONS
As we know, there is lot of opportunities in this industry so the company
should concentrate on the requirements of the customers.
Company should more emphasize on the state-or-art. (New
Technology/Advanced Technology) and better quality solutions.
Company should provide more features based handset with less
increasing the price.
Company should open their more outlets, customer care & repair
centres because the people of the remote areas don’t know about the
schemes or the facilities regarding cell phones which have been providing
by the company.
Company should focus on humorous & Emotional appeals in its
advertisement because sentiments play important role in Indian market-
culture. For eg. - ADVERTISEMENT OF X500 handset.
ANNEXURE
Annexure
QUESTIONNAIRE: -
Dear Sir/Madam,
I am a Management student doing B.I.M. in I.B. College,Panipat. I am doing a
research project on a case study on Micormax Informatics Ltd.. I have prepared a
structured questionnaire, which has contained some Close ended questions.
Therefore I kindly request to you to fill this questionnaire as per required
information’s, which may enable me to do analysis and complete the project.
PERSONAL PROFILE
Name- ___________________________________________
Sex- Male Female
Age- 15-30 30 & above
Profession- ___________________________________________
State ______________ City ____________________
Q.1 Do you have a Mobile Handset?
Yes No
“If no then go to Q.2 otherwise Q.3.”
Q.2 Reasons for not Buying One?
Cost Effectiveness
Already having landline which is sufficient
Health Consciousness
Any Other
Q.3 Which Mobile Handset do you have?
Nokia Micromax
Motorola Any Other
Q.4 Which model of mobile handset do you have?
-------------------------------------------------------------
Q.5 Rank the factors influenced your buying decisions for your current
Handset?
Cost Functions
Resale Value Country of Origin
Design/Look Web Browsers
Battery Backup Memory Chip Capacity
Q.6 What is the cost of your present Handset?
<5000
5000-10000
10000 & above
Q.7 Is it your first Mobile Handset?
Yes No
Q.8 How many Mobile Handsets do you have?
One
Two
More than two
Q.9 Have you purchased the Mobile set with bill?
Yes No
Q.10 Do you Change your Mobile Handset frequently?
Yes No
“If yes then why?”
New Technology
Status
Boredom Feeling with current Mobile
Q.11 Which Brand name comes to your mind first?
Nokia Micromax
Motorola Any Other
Q.12 Where did you come to know about your present Mobile Handset?
TV Dealers
Printed Material Any Other
Friends
Q.13 To which extent your purchasing decision is influenced by celebrities?
To a good extent
Moderate
Not very
Q.14 Have you ever purchased/Used Micromax Handset?
Yes No
“If yes then go to Q.14 otherwise answer Q.15.
Q.15 Rank the factors influenced you to purchase Motorola Handset?
Resale Value Technology
Functions Customer Services
Price Any Other
Battery Backup
Q.16 What factor resists you to purchase Micromax Handset?
Battery Backup Country of Origin
Resale Value All of above
Brand Name Technology
Q.17 Give your suggestions about Micromax to get better image than Nokia:
__________________________________________________________________
__________________________________________________________________
BIBLIOGRAPHY
BIBILOGRAPHY
www.micromaxinfo.com
www.nokia.com
www.google.com
www.motorola.com
www.indiacellular.com