A PROJECT REPORT

ON

CASE STUDY OF NOKIA & SAMSUNG

COMPARATIVE ANALYSIS BETWEEN

NOKIA & SAMSUNG

Submitted to:-

PUNJAB TECHNICAL UNIVERSITY,

JALANDHAR

Under the supervision:- Presented by:-

Ms. Tanpreet Kaur Parminder Singh

BBA 6th Sem.

Univ. Roll. No. 100912483923

LUDHIANA GROUP OF COLLEGES, CHOWKISESSION 2011-2013

ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of our project work not only to

one individual as this work is integrated effort of all those who concerned

with it.

I want to owe thanks to all those individuals who guided me to move the

track. This report entitled “COMPARATIVE ANALYSIS BETWEEN

NOKIA AND SAMSUNG”

First of all I would like to thank Ms. Tanpreet Kaur for their experience,

effective guiding and encouragement which give me the confidence to

complete the project work effectively and under their guidance i am able

to complete my project. They removed all the obstacles coming in my

way with great ease by offering one or more alternative solutions to the

same.

Parminder Singh

Certificate

This is to certify that the project entitled, “Comparative

Analysis Between Nokia and Samsung – A Case Study of

Nokia and Samsung ” submitted for the degree of BBA, in the

subject of Management of the Punjab Technical University,

Jalandhar is a bonafide research work carried out by Mr.

Parminder Singh, univ. roll no. 100912483923, under my

supervision and that no part of this project report has been

submitted for any other degree.

The assistance and help received during the course of

investigation have been fully acknowledged.

Subject In-charge

______________

1.1. TABLE OF CONTENTS

CONTENTS PAGE NO.

CHAPTER 1 – INTRODUCTION 3-22

1.1. Overview of Industry as a whole 3

1.2. Profile of the Organization 8

1.3. Problems of the Organization 16

1.4. Competition Information 17

1.5. S.W.O.T Analysis of the Organization 22

CHAPTER 2 - OBJECTIVES & METHODOLOGY 23-28

2.1. Significance 24

2.2. Managerial usefulness of the study 25

2.3. Objectives 26

2.4. Scope of the Study 26

2.5. Research Methodology 27

CHAPTER-3 CONCEPTUAL DISCUSSION 29-60

CHAPTER-4 DATA ANALYSIS 61-73

CHAPTER-5 FINDINGS & RECOMMENDATIONS 74-82

ANNEXURE

APPENDIX

BIBLIOGRAPHY

CHAPTER-1-

INTRODUCTION

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, even though 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 some thing 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 every day 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.

residents—30 percent of the population—have joined the mobile-phone revolution.”

There are already 1 billion cell phone users world wide. Between 2010 and 2020 it

will be hard to find a person with out 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 day—about 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.

India’s 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

Telecom Industry in India

Nokia 60%

Motorola 10%

Siemens 02%

Sony Ericsson 03%

Samsung 10%

Philips 10%

Others 05%

0%

10%

20%

30%

40%

50%

60%

60%

10%

2% 3%

10% 10%5%

Nokia

Motorola

Siemens

Sony Ericsson

Samsung

Philips

Others

1.2 . PROFILE OF THE ORGANIZATION

Company Profile

Nokia's history starts in 1865, Due to the European industrialization and the growing

consumption of paper and cardboard Nokia soon became successful. Nokia’s Cable

Work's Electronics department started to conduct research into semiconductor

technology in the 1960´s. This was the beginning of Nokia’s journey into

telecommunications.

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.

Vision: Life Goes Mobile

Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice

Goes Mobile! As history shows, this vision became reality in an incredibly short

amount of time. With more than 1.6 billion mobile phone subscriptions globally –

and more mobile phones than fixed-line phones in use – shows that mobility has

transformed the way people live their lives

Business Mission: Connecting People

By connecting people, they help fulfill a fundamental human need for social

connections and contact. Nokia builds bridges between people – both when they

are far apart and face-to-face – and also bridges the gap between people and the

information they need.

As a market leader, the best contribution we can make to the global community is to

conduct our business in a responsible way. This belief drives our commitment to

creating ethically sound policies and principles that guide us in our work. Our

Corporate Responsibility (CR) agenda is framed around the Nokia Values and is

carried out in all aspects of our work to ensure customer satisfaction and respect, and

also to assist us in embracing renewal and striving for achievement. By striving to

include all members of Nokia's community in this process, we are demonstrating our

overall commitment to the belief that responsibility is everybody's business. In this

section you will find information about our strategy and approach, navigating the

links above will give you more concrete information on our Corporate Responsibility

activities.

Our vision is a world where everyone is connected. With mobile subscriptions about

to reach four billion, we are closer to our vision than anyone could have imagined just

a few years ago. Our business benefits people, communities and the environment in

new and exciting ways. As our business expands, so do our responsibilities. This

sense of corporate responsibility (CR) is a fundamental part of who we are.

Considering the wider impact of our actions is embedded in the Nokia Values, which

guide our behavior, and in the Nokia Code of Conduct, which gives guidance to our

everyday work. Global challenges such as climate change and poverty concern us all.

As a business that affects the lives of billions around the world, Nokia is in a key

position to offer solutions to these challenges. We bring the benefits of mobile

technology to more people in ways that reflect our values and our responsibilities.

Our impacts

Nokia is the world's number one manufacturer of mobile devices by market share and

a leader in the converging Internet and communications industries.

We make a wide range of devices for all major consumer segments and offer Internet

services that enable people to experience music, maps, media, messaging and games.

We also provide comprehensive digital map information through NAVTEQ and

equipment, solutions and services for communications networks through Nokia

Siemens Networks. In 2008, Nokia's net sales were EUR 50.7 billion and operating

profit was EUR 5.0 billion. At the end of 2008, we employed more than 128,445

people; had production facilities for mobile devices and network infrastructure around

the world; sales in more than 150 countries; and a global network of sales, customer

service and other operational units.

Corporate responsibility

Corporate responsibility is a fundamental element in Nokia’s 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. We

believe that strong, early action is necessary and that we have an opportunity to make

a contribution to tackling climate change beyond the impact of our operations and our

products. Our environmental strategy sees Nokia among the world’s leading

companies for all aspects of environmental performance. We have three priorities:

energy efficiency, managing substances in our products, and take-back and recycling.

We are also focusing on developing mobile services to promote more sustainable

lifestyles. Reflecting this prioritisiation, our environmental data can be found in its

own section here. We have also set high ethical standards for our supply chain and our

own factories. We seek to provide consumers with accessible high quality products

that meet their needs and to trade with our customers responsibly. Above all, we aim

to make a positive contribution to society at the local and global level. Please refer to

our key Issues for information on how we identify our most important impacts.

Our values

The Nokia Way and Values: A flat, networked organization and speed and

flexibility in decision-making characterize the Nokia Way of working. Equal

opportunities and openness towards people and new ideas are also key elements we

want to nourish. Nokia is straightforward when dealing with customers and suppliers,

and we always looks for innovative ways of creating and introducing products and

solutions to the market. We provide individuals with a platform for personal growth in

a challenging environment with a clear vision, goals and shared management

principles - the Nokia Way. The Nokia Way brings together talented individuals who

share these principles, and therefore share success. The values of our company make

us different. They provide a sense of direction for consistent behaviour as employees

and citizens of the world, and in our quest to become more of an internet company.

Through extensive employee engagement, we have renewed our values to reflect our

business and changing environment. They act as a foundation for our evolving culture

and are the basis of our operational mode. Living up to our values every day is our

shared philosophy.

Engaging you: For us, ‘engaging you’ incorporates the ‘customer satisfaction’ value

and deals with engaging all our stakeholders, including employees, in what Nokia

stands for in the world.

Achieving together: ‘Achieving together’ is more than collaboration and partnership.

As well as trust, it involves sharing, having the right mind-set and working in formal

and informal networks.

Passion for innovation: ‘Passion for innovation’ is based on a desire we have to live

our dreams, to find courage and make the leap into the future through innovation in

technology, ways of working and through understanding the world around us.

Very human: Being ‘very human’ encompasses what we offer customers, how we do

business and the impact of our actions and behavior on people and the environment. It

is about being very human in the world - making things simple, respecting and caring.

In short, our desire is to be a very human company. For more information on the

Nokia Way and Nokia Values, go to Nokia as an employer within careers.

As approximately one in three phones in use is a Nokia phone, it’s safe to say our

products influence the lives of hundreds of millions of people.

Maximizing the benefits of mobile communication and minimizing potentially

negative effects requires commitment from governments, civil society, and the

business sector. However, we recognize that as a market leader with global

operations, our potential impact, and therefore our responsibility, is great. From a

social growth and economic development perspective, we acknowledge our impact

and responsibilities throughout our value chain: in our sourcing, product design,

manufacturing, employee well-being, business partnerships, recycling, community

involvement, and communications. Through our product lifecycle we respond to

various environmental needs. Through employee relations, supply-chain management,

and consumer offerings we aim to have a positive social influence. Our overall

response to our stakeholders is to produce high-quality, safe products while upholding

the law, protecting the environment, and following sound best practices. It is an

expectation we strive to meet.

Nokia India

Nokia has played a pioneering role in the growth of cellular technology in India,

starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone

over a Nokia-deployed network. Nokia started its India operations in 1995, and

presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow,

Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations

comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and

Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength

increasing from 450 people in the year 2004 to over 15000 employees in March 2008

(including Nokia Siemens Networks). Today, India holds the distinction of being the

second largest market for the company globally.

R & D centers

Nokia has three Research & Development centers in India, based in Hyderabad,

Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working

on next-generation packet-switched mobile technologies and communications

solutions to enhance corporate productivity. The Center in Bangalore, the biggest

R&D site in the country comprises S60 Software Organization, Common

Technologies, Next Generation now called Maemo Software, Productization and

Software & Services.

NOKIA’S MARKET SHARE:

Today, Nokia is 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 world’s first luxury mobile phone company, selling gold and

platinum phones at exorbitant prices.

Last year, Nokia has once again retained its top position in the market. It enjoys a

market share of 32.6%, followed by Samsung (because of their CDMA phones) with

29.6% and LG with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5%

market share, with Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with

1.4%; they are the fourth, fifth, sixth and seventh largest players in the domestic

handset market. In the GSM handset segment, Nokia has 58% market share, with

Samsung at 14.7%, Motorola at 14.1%, and Sony Ericsson at 7.1%. Thus, Nokia has a

larger presence in the GSM market than the CDMA market.

Nokia58.4%

Samsung14.7%

Motorola14.1%

Sony Ericsson7.1%

Pie chart showing the market share in the GSM mobile phone market

1.3. PROBLEMS OF THE ORGANIZATION

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson,

Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I

have focused my research on Nokia and also on one of its major competitor; Sony

Ericsson since these are very prominent players in the Indian market. Nokia has

saturated the urban market including the B and C class cities and is now targeting

potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its

energies on the B and C class cities since which it had not ventured into so far.

The following are the major problems faced by Nokia in the Indian cellular market:-

Identify cause of problems faced Nokia to enable the management to train the

employees in handling the problems as well as solving the problem in a

satisfactory manner.

Segregate identified problems of Nokia into problems requiring staff development

action such as training and into problems requiring other management actions, so

that these problems are accurately addressed.

Prioritize training actions in accordance to where the training need is more urgent.

1.4 COMPETITION INFORMATION

Sony Ericsson: - Ericsson in one of the largest supplier of mobile systems in the

world and support all major standards for wireless communication. They drive the

telecoms industry and are shaping the future. The world’s 10 largest mobile operators

are among Ericsson's customers and some 40% of all mobile calls are made through

its systems. Ericsson has been active worldwide since 1876 and is present in more

than 140 countries. Headquarters are located in Stockholm, Sweden. Various Ericsson

phones available in market example are given below.

Ericsson R520 EricssonT39

Ericsson T60D / T60LX

Samsung: - In 1996, Samsung Electronics' Telecommunication Network Division

became the first in the world to utilize commercialized

CDMA services. By year 2002, Samsung Electronics has

grown into a world's telecommunications network leader,

ranking third in the world's wireless communications

market share and 55% in the domestic market. Various

Samsung’s phones available in market example are given

below.

Motorola: - Motorola is a global leader in wireless, automotive and broadband communications.  Motorola's Intelligence Everywhere. Motorola, Inc. (NYSE: MOT) today announced it was selected by Microsoft Corp. as the recipient of the North American Windows Embedded CE Partner Excellence award in the original equipment manufacturer (OEM) category. . Various Motorola’s phones available in market example are given below.

Panasonic: - Panasonic, a creator of numerous electronic devices including

wireless handsets, have a corporate attitude that puts the consumer first.  Panasonic

continues to produce creative devices that "resolve the challenges in business and

personal life".  

LG:- Headquartered in San Diego, California, LG is the North American wireless

division of LGE, a business unit of LG Electronics (LGE) and global manufacturer of

electronics products based in Seoul, Korea. LG entered the cellular phone market in

1998 and has expanded its market share to nearly 19% of CDMA wireless handsets

sold, and placed third in the U.S. at the end of 2002, according to analysts at Strategy

Analytics. Various Motorola’s phones available in market example are given below.

Marketing Strategy For Nokia

Marketing Strategy for Nokia

For this project I have been instructed to come up with a marketing strategy for an

existing company/product I have chosen to do Nokia communications, particularly the

mobile phone sector of Nokia's business. To do this properly I will need to:

* 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.

Introducing the product

Nokia is a communications based company, which focuses on mobile telephone

technology. When mobile phones first became available on the market the models

were very basic with the best technology being SMS messaging (sending written "text

messages" from one phone to another).

Then the next advance in technology was being able to put different faces on your

phone (different style covers for the front and back of your mobile device) and after

that the technological advances have come thick and fast, with advances such as:

* MMS

* WAP (internet)

* Polyphonic ringtones

* Predictive SMS (where the phone will finish off a word for you if it can guess what

you are typing)

* Camera phones and

* Video recorders

Competition in the market

-------------------------

With all this technology available in the communications market it is obvious that

Nokia will have lots of competition, they include:

* Sony Ericsson

* Samsung

* Motorola

* Siemens

* Panasonic * NEG * Sagem and * Toplux

With all of these competitors in the market Nokia must keep ahead of the game...

1.5 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 of the 100M smart phones sold in the next 4 years.

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.

1.2 . PROFILE OF THE ORGANIZATION

Company Profile

In 1938 the Samsung’s 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. humble

beginnings.

From 1958onwards Samsung began to expand into other industries such as financial,

media, chemical and ship building throughout the 1970’s .in 1969, Samsung

electronics was established producing what Samsung is most famous for television,

mobile phones (througout90’s),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 the1990’s 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 are

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 world’s 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

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 to mobile phones that connect people across

continents have the power to enrich lives and that’s what making a better global

society is all about.

OUR VALUES

We believe that by living by strong values is the key to business.

At Samsung a rigorous code of conduct and these core values are at the heart of every

decision we make .

PEOPLE

Quite simply, a company its people.

At Samsung ,we are dedicated to giving our people a wealth of opportunities to reach

their full potential

EXCELLENCE

Everything we do at Samsung is driven by an unyielding passion

for excellence and an unfaltering commitment to develop the best products and

services on the market.

CHANGE

In today’s fast paced global economy, change is constant and

innovation is critical to a company’s survival. As we have done for 70 years, we set

our sights on the future ,anticipating market needs and demands so we can steer our

company towards long term success .

INTIGRITY

Operating in an ethical way is the foundation of our

business .everything we do is guided by a moral compass that ensures fairness

respect for all stakeholders and complete transparency .

CO-PROSPERITY

A business cannot be successful unless it creates prosperity and

opportunity for others .Samsung is dedicated to being a socially and environmentally

responsible corporate citizen in every community where we operate around the globe.

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.

SAMSUNG COMPETITORS

PRODUCTS Samsung’s

global m/s

competitors M/S year source

DRAM 34.3% Hynix 21.6

%

2009 26

NAND flash 40.4% Toshiba 28.1

%

2008 27

Large size

LCD panel

26.2% LG display 25.8

%

2009 28

Active matrix

OLED

90.0% LG display 2008 29

Lithium iron battery 19% Sanyo 20% 2009 30

LCD monitor 16.1% Dell 14.6

%

2008 31

Hard disk drive 9.5% Seagate

technology

34.9

%

2007 32

Multifunction printer 16.4% HP 19.2

%

2009 33

Television

sets(LCD,PDP,CRT)

23% LG

electronics

13.7

%

2009 34

Mobile phones 21% Nokia 37.8

%

2009 35

PDP panel 30.5% LG display 34.8

%

2008 37

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,world’s 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 in five month.

Catching the pulse of the consumer offering design & understanding emotions.

Heavy investments in technology.

Focus on innovative products.

WEAKNESS

Not proactively coming out with newer mobiles.

Lack in product differentiation.

Different models at different price points.

Focus on mass market.

not very user friendly designs

OPPORTUNITIES

Distinguish its service from competitors offer product variation.

Demand for cell phones driven by the servers providers or carriers.

Tie up with service providers lowering the price of the phone just by $20.

THREATS

Motorola’s dominance in the US the European market controlling more than

world market.

Aggressive competitors including Sony Erikson, Siemens eating into its share.

Not keeping track of the new trends in the market.

Not an accessory and fashion statement.

CHAPTER-2

OBJECTIVES AND METHODOLOGY

SIGNFICANCE OF THE STUDY

The 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 .

The report finds that high quality and advanced technologies are important factor

for Nokia’s success moreover they are concentrating on ne area that is

telecommunication while Samsung is indulging in many areas

Moreover the other finding is that Nokia’s financial position is surpassing its

competitors in the telecommunications report concludes that Nokia has established its

leadership in telecom companies Samsung is gaining its area in style point of view or

advanced features in their products.

MANAERIAL USEFULLNESS OF THE STUDY

Managerial usefulness of the study is to analyse the comparative study between Nokia

and Samsung. compare between there market strategies and to know about there

vision mission and there future plans the respondents were discussing the questions

prior to reply thus there could be biasness different promotional schemes were not

known by the respondents.

The customer analysis of this coursework highlighted that the upper segment of the

population are the major consumers of mobile phones extensive research was

conducted into yhe strategies being implemented for the rural market .the prominent

brands in Indian cellular phones are Nokia and the Samsung .

Nokia has the single largest market share in India of 60%and the we have noticed that

Nokia is the only competitor of Samsung but Nokia’s major competitor is Sony

Ericson since these are very prominent players in the market

OJECTIVES OF THE STUDY

To know about the cellular industries.

To help consumers to know about the companies their products and the future

over comings

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.

SCOPE OF THE STUDY

As learning is the human activity and is as natural ,as breathing despite of the fact the

learning is all pervasive in our lives, psychologists do not agree on how learning takes

place .how individuals learn s a matter of interest to marketers they want to teach

consumers in their roles as their roles as consumers. They want consumers to learn

about their products product attributes, potential consumers benefit, how to use,

maintain or even dispose of the product and the new ways of behaving that will

satisfy not only the consumer needs, but the marketer’s objectives.

The scope our study restricts itself to the analysis of CONSUMER BEHAVIOR,

perception of Nokia and Samsung.

LIMITATIONS OF THE STUDY

The findings of the study will be based on opinion of the respondents, which

may be based.

The study is confined to rohini residential areas

Lack of time and finance may prevent from carrying out in depth study.

RESEARCH METHDOLOGY

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

Research.

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:

There are two types of data.

Primary Data:

The data was mainly obtained from the people feedback on the questionnaire

which was distributed by the group members at various places

Secondary Data:

The secondary data was obtained from various journals, internet, magazines etc.

Research Instruments

Selected instrument for Data Collection for Survey is Questionnaire.

Sample Design

Who is to be surveyed? The marketing researcher must define the target population

that will be sampled.

The sample Unit taken by me; General public of different age group, different gender

and different professions.

Extent:-

Where the survey should be carried out?

I have covered entire residential area of Delhi city for the survey

Time Frame:-

When the survey should be conducted?

I conducted my survey for 1week

Sampling Frame:-

The source from which the sample is drawn

Sampling Technique: -

How should the respondent be chosen?

In the Project sampling is done on basis of Probability sampling. Among the

probability sampling design the sampling design chosen is stratified random sampling.

Because in this survey I had stratified the sample in different age group, different

gender and different profession

Sample Size/ Population Size: - How many people should be surveyed?

My sample size is 50

CHAPTER-3

CONCEPTUAL DISCUSSION

CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key

performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element

of business strategy.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

MEASURING CUSTOMER SATISFACTION

Organizations need to retain existing customers while targeting non-customers;

Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state

of satisfaction will vary from person to person and product/service to product/service.

The state of satisfaction depends on a number of both psychological and physical

variables which correlate with satisfaction behaviors such as return and recommend

rate. The level of satisfaction can also vary depending on other factors the customer,

such as other products against which the customer can compare the organization's

products.

Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and 1988

delivered SERVQUAL which provides the basis for the measurement of customer

satisfaction with a service by using the gap between the customer's expectation of

performance and their perceived experience of performance. This provides the

researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and

Taylor extended the disconfirmation theory by combining the "gap" described by

Paraguayan, Zenithal and Berry as two different measures (perception and

expectation) into a single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements

using a Likert Technique or scale. The customer is asked to evaluate each statement in

terms of their perception and expectation of performance of the service being

measured.

METHODOLOGIES

American Customer Satisfaction Index (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong

predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of

Personal Consumption Expenditure (PCE) growth. On the microeconomic level,

research has shown that ACSI data predicts stock market performance, both for

market indices and for individually traded companies. Increasing ACSI scores has

been shown to predict loyalty, word-of-mouth recommendations, and purchase

behavior. The ACSI measures customer satisfaction annually for more than 200

companies in 43 industries and 10 economic sectors. In addition to quarterly reports,

the ACSI methodology can be applied to private sector companies and government

agencies in order to improve loyalty and purchase intent. Two companies have been

licensed to apply the methodology of the ACSI for both the private and public sector:

CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results

applies the ACSI to websites and other online initiatives. ASCI scores have also been

calculated by independent researchers, for example, for the mobile phones sector [5],

higher education and electronic mail

The Kano model is a theory of product development and customer satisfaction

developed in the 1980s by Professor Noriaki Kano that classifies customer

preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent,

Reverse. The Kano model offers some insight into the product attributes which are

perceived to be important to customers. Kano also produced a methodology for

mapping consumer responses to questionnaires onto his model.

SERVQUAL or RATER is a service-quality framework that has been incorporated

into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction

Barometer to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known

for its top-box approach and automotive industry rankings. J.D. Power and

Associates' marketing research consists primarily of consumer surveys and is publicly

known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well.

These include A.T. Kearney's Customer Satisfaction Audit process, which

incorporates the Stages of Excellence framework and which helps define a company’s

status against eight critically identified dimensions.

For Business to Business (B2B) surveys there is the Info Quest box This has been

used internationally since 1989 on more than 110,000 surveys (Nov '09) with an

average response rate of 72.74%. The box is targeted at "the most important"

customers and avoids the need for a blanket survey.

IMPROVING CUSTOMER SATISFACTION

Published standards exist to help organizations develop their current levels of

customer satisfaction. The International Customer Service Institute (TICSI) has

released The International Customer Service Standard (TICSS). TICSS enables

organizations to focus their attention on delivering excellence in the management of

customer service, whilst at the same time providing recognition of success through a

3rd Party registration scheme. TICSS focuses an organization’s attention on

delivering increased customer satisfaction by helping the organization through a

Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises,

Product/Services, as well as performance measurement. The implementation of a

customer service standard should lead to higher levels of customer satisfaction, which

in turn influences customer retention

CURRENT STRATEGIES

In my view, product development and market penetration are the strategies

being currently used by Nokia. Since Nokia operates in an extremely dynamic

industry where technology becomes obsolete in the span of six months or even

less, Nokia has taken to making forecasts every three months and revising

their strategies accordingly. The markets on which they are focusing for

penetration include markets with low mobile subscription rates relative to the

size of the population, geographic areas where it is more cost-effective to

build wireless infrastructure than fixed-line networks, and heavily populated

areas. One of the ways they have implemented this is the use of vernacular

rendition of communication in their promotion campaigns to appeal more

closely to possible consumers. So if you are in Tamil Nadu, you would hear

the advertisements and other promotion campaigns in Tamil, and if in

Karnataka you would hear them in Karnataka. Nokia does not believe in

restricting itself to just basics. They intend to enter new product and service

niches, which they expect will emerge as technologies from diverse industries

start to converge, especially in the area of consumer multimedia. Their

strategy is to explore, identify and extract revenue from the most profitable

and fastest growing segments of the consumer multimedia business and its

value chain by anticipating consumer needs in this area, and developing

innovative products and services. In the near term, they intend to focus on

imaging and games, where they have already introduced a number of products.

Their strategies to drive consumer multimedia will also consolidate their

strong position in the consumer voice market. While Samsung is focusing on

only the quality and the features of there products while Samsung

introducing them as aNationwide distributer and retail presence in the

consumer durable market.

2006 2007 2008 20090

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Graph showing the number of mobile phone users at the year end for the last four years

Year

No.

of

user

s (i

n m

illi

ons)

There are no domestic players in the mobile phone industry at the moment. There is a

larger presence of international brands in the market. Therefore, competition in the

Indian market is primarily from the foreign companies. There is no indigenous

competition as such. However, as I will be discussing in the later sections, I have

noticed that there is high brand loyalty to these companies.

The various companies operating in the Indian market are:

Nokia

Sony Ericsson

Samsung

Motorola

Panasonic

.The major player is Nokia, on whom I will carry out intensive research, to help in

determining its relative strengths and weaknesses as well as its strategic approaches.

Nokia has a full range of mobile phones. They focus on the lower segment as well as

the higher-end segment of the market. They offer a variety of products in each range,

with prices varying according to how much the consumer is able to spend on a mobile

phone. However, they have phones which are targeted at the bulk of the population in

general. For example, the Nokia 1110i phone is in the lower price range, but its

features and appearance are appealing to the lower class as well as the middle class.

In the full range in India, Nokia has 29 models (out of which 2 are CDMA), whereas

comparatively Sony Ericsson has 18 models (all GSM), Motorola has 16 models and

Samsung has 10 GSM phones and 4 CDMA models.

Pest Analysis

The PEST analysis is a Macro analysis which analyses the environment of a market.

PEST is an Acronym for Political, Environmental, Socio-cultural, and Technological.

With these four parameters, a marketer can get a very good idea about the market

conditions, and if found suitable the marketer can analyze the feasibility of venturing

into the market.

CHAPTER-4

DATA ANALYSIS

1. Do you have any mobile phone

PARTICULARS NUMBER %AGE

YES 50 100%

NO 0 0%

INTERPRETATION: All the respondents had mobile phone

2. How many mobile phones do you have :

PARTICULAR NO. OF RESPONDENTS

1 37

2 13

3 0

3+ 0

INTERPRETATION

Out of 50 respondents 37 says that they had 1 connection while 13 were having 2 connections

3. Which mobile are you using ?

PARTICULAR NO. OF RESPONDENTS

NOKIA 27

SAMSUNG 16

OTHER 7

INTERPRETATION: Out of 50 respondents 27 were using NOKIA while 16 respondents were using MOTOROLA and 7 were using others.

4. Are you satisfied with the services

PARTICULARS NUMBERSYes 41No 9

INTERPRETATION: Out of 50 respondents 41 respondents were satisfied with the services of there particular mobile while only 9 were not satisfied

5. Which facility attracts you most ?

PARTICULARS NOKIA MOTOROLA OTHERSPRICE 29 12 9STYLE 14 15 21BATTERY BACK UP 36 36 7MEMORY 24 16 10OTHER 17 15 18

INTERPRETATION

Out 50 respondents most of the respondents prefer Nokia then Motorola and others

6. Which advertisement media puts more impact on your buying decision ?

PARTICULARS NO. OF RESPONDENTSTV 28

MAGAZINES 04NEWPAPER 10INTERNET 05OTHERS 03

INTERPRETATION: Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers, 03 by others while 04 by magazines.

7. From how long you are using this particular service mobile

PARTICULARS NO. OF RESPONDENTS1 102 253 11

More than 3 years 4

INTERPRETATION: Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2 year, 11 since 3 years while only 4 were using there mobile from more than 3 years.

8. Would you like to change your current mobile in future ? PARTICULARS No. of RESPONDENTS

YES 18NO 32

INTERPRETATION: Out of 50 respondents 32 did not want to change there current while only 18 respondents want to change there mobile.

Q.9What qualities of mobiles are important to you while buying mobiles? Rank

them in order of 1 to 9, where 1 being the most important and 9 being the least

important.

Criteria RANK IN( %)

Most preferred prefer No effect

Maintenance 80 15 5

Durability 64 24 12

Style/ Design 72 26 2

Price 30 60 10

uniqueness 14 12 74

Comfort (edges) 92 08 0

FM 94 4 2

Table of figure no. 4.5

Most preferred prefer No effect0

10

20

30

40

50

60

70

80

90

100

Most preferred Maintenance Durability Style/ Design Price uniqness Comfort (edges) FM

Interpretation The following are important criteria as suggested by the

respondents, Maintenance 80%, 15%, 5%, Durability 64%, 24%, 12%, Style/ Design

72%, 26%, 2%, Price 30%, 60%, 10%, Uniqueness 14%, 12%, 74%, Comfort (edges)

92%, 08%, 0% and FM 94%, 4% and 2%.

Q.10 Rate the following brands based on your perception on the mentioned

criteria on a scale of 1-6 where,

1= Below Average 2=Average 3= Satisfactory

4= Good 5= Very good 6= Excellent

Criteria Nokia Sony Ericsson BenQ Panasonic Samsung

Maintenance 5 4 2 1 3

Durability 6 5 2 1 3

Style/ Design 4 4 3 2 5

Color 5 4 3 3 4

Size 4 4 3 4 5

Price 4 2 2 3 5

Availability 4 4 1 1 3

Lightweight 4 3 3 4 5

Comfort 5 5 3 3 4

Table of figure no. 4.6

Nokia Sony Ericsson BenQ Panasonic Samsung0

1

2

3

4

5

6

Maintenance Durability Style/ Design Color Size Price Availability

Lightweight Comfort

Interpretation

Nokia is the clear leader in this question of preference asked to the respondents.

Q.11 Are you currently using Nokia? What is your opinion about it?

Effect No. of people (%)

Yes 64

No 36

Table of figure no. 4.13

64%

36%

Yes No

Interpretation

64 % are using Nokia mobile phones whereas rest of the people are using other

mobile phones.

Suggestions given by the people ……..

During our survey we asked the people to give some suggestions to the

compananies there is similar suggestion for both the companies given by 25

peoples that they should not increase their prices. And 1 suggestions given by

only 1 person out of 50 that is cellular companies that there should be some

function to indicate the person is driving this will not avoid accidents during

driving.

CHPATER-5

FINDINGS AND RECOMMENDATIONS

FINDINGS

Nokia introduces a new phone into the market every two or three months.

In Nokia's human resource management, the features are to improve

employee's techniques by regularly training and developing effective

teamwork. While Samsung always improving model of their product with

different features

Nokia's financial position is surpassing its competitors in telecommunication.

While Samsung in indulging itself in more than telecom it has more products

more than mobiles.

Nokia has established its leadership in mobile phone market according to its

successful marketing strategies and internal management. while Samsung is

always trying to indulge with media .

Nokia's philosophy is to learn continuously, to satisfy consumers, and to

respect individual and pursue professionalism.

RECOMMENDATION

After analyzing all the data we have some recommendations such as:-

Advertisements: -

Nokia use advertisement mode of promotion after launching a new cell phone in the

market. So people don’t have much knowledge about their latest models. While

Samsung have lots of ads in market before launching it

EXAMPLE: -

Giving advertisement on television or cable

Giving print media add which explain all the features of cell phone

SPECIAL SCHEMES: -

Nokia always launch high range products. So to increase the sales it has to give

advertisement or special discount or special schemes with every purchase of new cell

phone. Samsung have color variety in their cell phones as Nokia don’t have this

much.

CONCLUSION

The customer analysis of this coursework highlighted that the upper segment of the

population are the major consumers of mobile phones. Extensive research was

conducted into the strategies being implemented for the rural market.

Nokia and Sony Ericsson segment the market on a similar basis. However, they have

different interpretations Nokia has saturated the urban market including the B and C

class cities and is now targeting potentially untapped markets. Sony Ericsson on the

other hand has 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 Nokia, Sony Ericsson,

Motorola, and Samsung. Nokia has the single largest market share in India of 60%.

We have analysed that Nokia is better than Samsung . Nokia and also on one of its

major competitors; Sony Ericsson since these are very prominent players in the Indian

market.

ANNEXURE

For “Study of consumer behavior towards NOKIA and SAMSUNG”

Name –

Contact no.-

Sex- male female

1. Do you have any mobile?

Yes No

2. How many mobile do you have?

1 2

3 3+

3. Which mobile are you using?

Nokia Samsung

4. Are you satisfied with the services?

Yes No

5. Which facility attracts you most?

Price Call Style

Battery Memory

Others

6. Which advertisement media puts more impact on your buying decision?

T.V Magazines

Newspapers Internet

Others

7. From how long you are using this particular mobile?

1 year 2 years

3 years More than 3 years

8. Would you like to change your current mobile in future?

Yes No

If yesthen why………………………………

Q9. What qualities of mobiles are important to you while buying mobiles?

Rank them in order of 1 to 9, where 1 being the most important and 9

being the least important.

Criteria RANK (From1-9)

Most preferred preferred No effect

Maintenance

Durability

Style/ Design

Price

uniqueness

Comfort (edges)

FM

Q10. Rate the following brands based on your perception on the mentioned

criteria on a scale of 1-6 where,

Criteria Nokia Sony Ericsson BenQ Panasonic Samsung

Maintenance

Durability

Style/ Design

Color

Size

Price

Availability

Lightweight

Comfort

Q11. Have you ever used Nokia? What is your opinion about it?

Yes

No

Q12. ARE THERE ANY GENERAL COMMENTS YOU WOULD MAKE ABOUTWHAT YOU LIKE / DISLIKE ABOUT MOBILE PHONES?

APPENDIX

BIBLIOGRAPHY

BOOKS

Kothari, C.R.(2007), Research Methodology Methods and Techniques,

INTERNET:

1. www.wikipedia.com

2. www.projectsmonitor.com

3. http://www.nokia.com

4. www.samsung.com