ELASTICITY OF DEMANDCELL PHONE

PRICE ELASTICITY OF DEMAND

• Definition

• Sales increase with drop in prices and decrease with rise in prices

• Non-essential Products show elasticity of demand whereas most necessities show inelasticity of demand

• Example

CROSS ELASTICITY OF DEMAND

• Definition

• As demand changes, price changes

• Positive when products are mutual substitutes and negative vice versa

• Example

INCOME ELASTICITY OF DEMAND

• Definition

• Change in quantity demanded and real income

• Example

PROMOTIONAL ELASTICITY OF DEMAND

• Definition

• Why it is important for advertisers?

• Example

CURRENT SCENARIO OF CELLPHONES IN INDIA

• One Of The Fastest Growing Smartphone Markets In Asia in 1st Quarter of 2014

• Vast majority of the country's user base migrated to smartphones

• Outshone other emerging markets like China which registered a year-on-year

growth of 31%

• India’s cell phone market is expected to grow even further because of a

variety of low cost availability of smartphones

Top Smartphone Vendor Share in India Q1 2014

33%

14%10%6%

4%

33%

Smartphone Vendor Share in India Q1 2014

SamsungMicromaxAppleKarbonnNokiaOthers

SURVEY ANALYSIS

Q. How many phones do you have?

85%

15%

One Phone Dual SimMore Than One

Q. What brand’s cellphone you use?

10%

35%

25%

20%

10%

NokiaSamsungAppleMicromaxSony Ericsson

Q. How often do you change your mobile?

MonthlyQuarterly

Half YearlyYearly

Once in 2 years and above

0% 1%

5% 30%

64%

Q. How much would you pay for a new mobile phone?

35%

25%

20%

20%

10 - 20K20 - 30K30 - 40K40K +

Q. Is the design of a mobile phone important for you?

60%

40%

Yes OfcourseNot at all

Q. You often use your phone to :

20%

10%

68%

2%

CallSMSMobile InternetMMS

Q. In purchasing phones does your choice depend on :

5%5%

30%

60%

Brand PopularityTechnological FeaturesA Bit Of BothCost

Q. Would you pay more money to buy a new phone of the same brand you own currently?

45%

55%YesNo

Q. In determining which phones you want to buy what are the most important features?

60%

10%

10%

20%

Battery LifeCameraMusicUsability

Q. Would You Buy A Phone Costing Between 15-25K, with all latest features?

30%

20%

50%YesNoDepends

SURVEY CONCLUSION

DURABILITY

PRICING

LOOK & FEEL BATTERY

INTERNET

THANKYOU !

GROUP MEMBERS

Swapneel Nalawade MMM 08

Hrushikesh Murkute MMM 07

Vikas Thawani MMM 17

Kushal MishraMFM 11

Selvam Ramkrishnan MFM 25