LAUNCHING OF NEW MOBILE PHONE

This is the project report on the analyses of Marketing mix, PEST analysis, STP analysis and SWOT analysis for launching a new mobile phone in India by a Korean Company named “MobiMe”

Company Name – “MobiMe”

Category- Mobile Phone handsets

Sector – Telecommunication

Tagline – “Next-Gen Communication”

USP – Provides hi-tech mobile phones at moderate price

“Next-Gen Communication”

The Mobile Market in India

Samsung currently has a market share of 26 percent, which is a fall given that Samsung had a 32.7 percent market share in Q1 of 2013. The report also notes that  Samsung’s cash-back and zero percent EMI worked in its favour, specifically for the Galaxy Note II.

Micromax remains steady at No 2 spot and crossed the 2 million unit mark in shipments. Phablets and the Canvas Series helped boost Micromax’s numbers. It now has a 22 percent market share which is much closer to Samsung.

Karbonn is the second Indian-manufacturer which is on the top five list with a 13 percent market share. In Q1 of 2013, Karbonn had a 10.9 percent market share. The report notes that the newly launched Titanium range is doing well in the price-sensitive market.

Nokia is at number four on the list with a 5 percent market share. Lumia 520 helped Nokia pick up volumes towards the lower end, notes the report. Lumia seems to be emerging as a new option for Indian consumers to choose from if they wish to avoid Android or Apple.

Sony is at number five with a 5 percent market share. The report notes that Sony’s mid-tier range of phones is doing well. This includes Sony Xperia M (under Rs 15 k), Sony Xperia SP (under Rs 25 k) and Sony Xperia E (under Rs 10k) Sony needs to add more phones to its portfolio, across a wider price-range, if it hopes to beat Nokia.

THE 4P’S OF THE MARKETING MIX

Product:-

The product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all o f t h e s e w h e n s e l l i n g a p r o d u c t ( t h a t i s w h y t h e y c o n d u c t m a r k e t research). Nokia does exactly the same and comes up with innovative phones almost every six months. The new phones that Nokia launchesh a v e   s o m e   n e w   f e a t u r e   o r   p r i c e   d i f f e r e n c e ,  t h u s   a p p e a l i n g   t o   t h e consumer. Sometimes, Nokia launches special and limited editions of its mobile phones, on special occasions such as the Olympics. I n s h o r t t h e y o f f e r v a r i o u s p h o n e s o f v a r i o u s d e s i g n s a n d v a r i o u s v a r i e t i e s w i t h h i g h q u a l i t y .

Prices:-

Price is a key factor in the selling of a product, and is usually the one that is open to most change based on different pricing strategies, for example, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service are cost of production, customer demand and competition. We have to have different mobiles available of different class of peoples at different prices, like sets should vary from Rs 1000-Rs 35,000.

Place: -

It refers to chosen outlets for a product or service, for a product to be successful it must be easy to access. Now a day’s mobile phones are easy to access as they are available in supermarkets, company outlets (Nokia Priority, Samsung Smart Phone shops), specialized outlets (Mobile Store).

Promotion:-

This involves providing information regarding the product to the customers through various media platforms like Print Advertising, Outdoor Advertising, Covert Advertising, Surrogate Advertising, Celebrity Advertising and Broadcasting Advertising. The Promotion also informs the customer about various offers and discount which is offered. Advertisement should be made in such a way that it appeals to the psychology of the customer and help them to recall the product brand while the purchasing is done.

PEST ANALYSIS

Political Factors:-

It is important for a company to acquire resources from the Government, such as Economic policies, Science and Technological policies.

To operate efficiently, a modern knowledge- and technology-based economy that is highly specialized, internationalized and undergoing rapid structural change requires active support from the public sector.   In  its widest sense industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus public welfare. Both policies used by Government and Parliament are crucial for the development of the Economy and the national information society. Government best facilitates the efficient functioning of the economy by directing its resources to the reduction of market failures. The State must also pursue an industrial and economic policy that provides a stable microeconomic environment for the enterprises. General microeconomics stability, low interest rates, stable currency condition and international competitiveness of tax

system form the foundation of the growth of business an improvement in employment. As a result of this not only the Government but also the international companies play a very important role to develop the information technology and the national technological strength.

Economical Factors:-

The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society.

An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a “booming” or growing economy will have low unemployment, high spending power and high stakeholder confidence. In this global business world, organizations are affected by economies throughout the world and not just the countries in which they are based or operate from. For example: a global credit crunch originating in the USA contributed towards the credit crunch in the UK in 2007/08. Cheaper labour in developing countries affects the competitiveness of products from developed countries. An increase in interest rates in the USA will affect the share price of UK stocks or adverse weather conditions in India may affect the price of tea bought in an English café. A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through global economic conditions.

Social Factors:-

The third aspect of PEST Social is about forces within society such as family, friends, colleagues, neighbours and the media. Social forces affect our attitudes, interests and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK people's attitudes are changing towards their diet and health. As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Wii Fit attempt to deal with society’s concern, about children’s lack of exercise.

Population changes also have a direct impact on organizations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. Conversely an increase in the global population and world food shortage predictions are currently leading to calls for greater investment in food production. Due to food shortages African countries such as Uganda are reconsidering their rejection of genetically modified foods.

In summary organizations must be able to offer products and services that aim to complement and benefit people’s lifestyle and behaviour. If organizations do not respond to changes in society they will lose market share and demand for their product or service.

Technological Factors:-

Unsurprisingly the fourth element of PEST is technology, as you are probably aware technological advances have greatly changed the manner in which businesses operate.

Organizations use technology in many ways, they have:

- Technology infrastructure such as the internet and telephone- Technology systems incorporating a multitude of software which help them manage their business.- Technology hardware such as mobile phones, Blackberry, laptops, desktops, Bluetooth devices, photocopiers and fax machines which transmit and record information.

Technology has created a society which expects instant results. This technological revolution has increased the rate at which information is exchanged between stakeholders. A faster exchange of information can benefit businesses as they are able to react quickly to changes within their operating environment. However an ability to react quickly also creates extra pressure as businesses are expected to deliver on their promises within ever decreasing timescales. For example the Internet is having a profound impact on the marketing mix strategy of organizations. Consumers can now shop 24 hours a day from their homes, work, and on the move. Employees and consumers have instant access to the internet and e-mails through smart phones and tablets such as the iPad.

The pace of technological change is so fast that the average life of a computer chip is approximately 6 months. Technology is utilised by all age groups, children are exposed to technology from birth and a new generation of technology savvy pensioners known as “silver surfers” have emerged. Technology will continue to evolve and impact on consumer habits and expectations, organizations that ignore this fact face extinction.

SEGMENTATION TARGETING AND POSITIONING THE PRODUCT

We can segment the market according to the following ways:-

Gender- We can segment the market by gender by bringing out cell phones of different colour as female are generally attracted towards bright colour such as pink, red, white etc. Female generally go for mini, slim, light weight phones.

Income- We can segment the market according to income by bringing out cell phones of different price range as there are different people in our country with different income level.Ex- A rich person would go for a hi-tech phone, or a multimedia set where as a poor person would go for a simple black & white set.

Age- A person’s taste varies with his age, like an old person would want a simple phone which would only serve his purpose of calling where as a middle age person would look for a business or smart phone which would keep him up-to-date with his mail and business. Where as a teenage would be looking for a hi-tech multimedia set with all facilities for entertainment like camera, music player, internet facilities, games etc.

Status- A person may buy goods to show his status. People trend to buy costly items to show their status belonging.

TARGETING:-

The mobile phone we are launching are generally for the teenager as it would be a multimedia set with many facilities like Android OS, 8MP camera, 2G & 3G supported, Super AMOLED capacitive touch screen, 480x800 pixel, 32GB internal memory and 25 GB cloud storage, Wi-Fi, Wi-Fi hotspot, music player, Secondary camera available.

Young generation people would prefer such mobile as it a multimedia set with hi-tech facilities available.

POSITIONING:-

Positioning of a product refers to creating a good image of the product in the minds of the customer by bringing out a logo which is easily recognized by the customer, also a standard ringtone & message tone and try to highlight the advantages of the product.This specific aspect must be embedded into the mindset of the customer so that whenever they hear the ringtone or see the logo they can associate it with our product.

SWOT ANALYSIS OF OUR MOBILE PHONE

Strength:-

1. Provide many functions at much lower costs, e.g. Android OS, 8MP camera, AMOLED screen, Dual sim etc

2. Regional languages support, Easy to operate and phones cabinets are made with fibre as it can easily be replaced at low-cost if damaged.

3. Most phones are dual SIM/Triple SIM phones 

4. Due to Android OS we can get a huge no of applications from the android market.

Weaknesses:-

1. After-sales customer service not present as the leading brands like Nokia, Samsung

2. Many consumers in this group still trust Nokia, Samsung as they have a good brand name and goodwill in this section of market.

Opportunities:- 1.Low-end phones market has become very competitive 

2. Cut-throat competition has made Dual-SIM phones being available.

Threats: -

1. Threat from low price well known brands like Nokia, Samsung, HTC, LG.

2. Other lower end phones brands like Karbonn Mobiles, Micromax Mobiles, Lava Mobiles, Lemon Mobiles.

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THANK YOU

PROJECT DONE BY:-

Sayantan Bhattacharya

Promit Chowdhury

Ankur Chhetri

Saurav Roy

Daipayan Samanta

Amit Chowdhury