Research Project on Brand Preference of Mobile Phones
1. 1
PROJECT REPORT
On
BRAND PREFERENCE OF MOBILE PHONES
Submitted in partial fulfillment of requirement of Bachelor of
Business Administration (B.B.A) General
BBA VI Semester (E) (A)
Batch 2011-2014
Submitted To: Submitted By:
Ms. Anshika Goel Monika Kadam
Assistant Professor Enrollment No.
02124501711
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI
2. 1
PROJECT COMPLETION CERTIFICATE
This is to certify that the Project Work titled “Brand Preferences of Mobile
Phones” is a bonafide work of Monika Kadam, Enrollment No. :
02124501711 carried out in partial fulfillment for the award of degree of BBA
(G) of Jagannath International Management School under my guidance.
This project work is original and not submitted earlier for the award of any
degree / diploma or associate ship of any other University / Institution.
Ms. Anshika Goel
Assistant Professor
3. 1
DECLARATION
I, Monika Kadam being a student of BBA sixth semester of JAGANNATH
INTERNATIONAL MANAGEMENT SCHOOL hereby declares that the project
report under title “Brand Preferences Of Mobile Phones” is my own work.
All care has been taken to keep this report error free and I sincerely regret for
any unintended discrepancies that might have crept into this report. I shall be
highly obliged if errors (if any) be brought to my attention.
Thank You
(Monika Kadam)
4. 1
ACKNOWLEDGEMENT
I Monika Kadam, sincerely thankful to all those people who have been giving
me any kind of assistance in the making of this project report.
However, it would not have been possible without the kind support and help of
many individuals and organization. I would like to extend my sincere thanks to
all of them.
I am highly indebted to Ms. Anshika Goel for his guidance and constant
supervision as well as for providing necessary information regarding the
project & also for their support in completing the project.
I would like to express my gratitude towards my parents & member of
Jagannath International Management School for their kind co-operation
and encouragement which help me in completion of this project.
I also extend my heartfelt thanks to my family and well-wishers.
5. 1
PREFACE
The project gives an insight of the telecom sector. It basically helps
understanding the brand preference of students with regard to mobile
phones. It helps us to know what are the basis on which students chooses a
particular brand when he/she purchases a new handset.
The project will help to learn about the growing telecom sector in India. The
research will also bring to light what all factors a student considers at the
time of purchase of a new mobile phone.
6. 1
TABLE OF CONTENTS
S NO. TITLE PAGE NO.
i List of figures 8
ii List of tables 11
1. Introduction
Definition of Cellular/Mobile phone
Telecom Industry in India
History of Indian
Telecommunications
The Key players in the Mobile
Market in India
12
2. Objective Of The Study 38
3. Research Methodology 39
4. Data Analysis and Interpretation 40
5. Findings 52
6. Recommendation 54
7. Limitations 55
8. 1
S. NO. TITLE PAGE NO.
1. Worldwide cellular Infrastructure Revenue by
Technology, 2005-‘15
2. Samsung Mobile
3. Samsung Logo
4. Samsung Business Principles
5. Nokia Mobiles
6. Nokia Smartphone shipments
7. Products of SONY
8. Business Segments of SONY
9. Blackberry Phones
10. Blackberry Sales
11. Apple Inc. Products
12. Opening Weekend iPhone Sales Through The
years
13. Products of Micromax
14. Logo of Micromax
9. 1
15. Sales of LG
16. LG Products
17. Representation of Sex ratio of the Respondents
18. Representation of occupation of the
Respondents’ Family
19. Representation of Income level of respondent’s
family
20. Representation of Educational Qualification of
Respondent’s Parents
21. Representation of Number of Respondents with
Various mobile phones
22. Number of the Respondents on the basis of
usage time period
23. Number of the Respondents on the basis of
frequency of changing mobile phones
24. Representation of willingness of respondents to
pay for a mobile
25. Representation of preference of brand on the
basis of advertisement
10. 1
LIST OF TABLES
S. NO. TITLE PAGE NO.
1. Representation of Sex ratio of the Respondents
2. Representation of occupation of the
Respondents’ Family
3. Representation of Income level of respondent’s
family
4. Representation of Educational Qualification of
Respondent’s Parents
5. Representation of Number of Respondents with
Various mobile phones
6. Number of the Respondents on the basis of
usage time period
7. Number of the Respondents on the basis of
frequency of changing mobile phones
8. Representation of willingness of respondents to
pay for a mobile
9. Representation of preference of brand on the
basis of advertisement
11. 1
INTRODUCTION
I. DEFINITION OF CELLULAR/MOBILE PHONE
A mobile phone (also known as a cellular phone, cell phone, and
a hand phone) is a device that can make and receive telephone calls over
a radio link while moving around a wide geographic area. It does so by
connecting to a cellular network provided by a mobile phone operator,
allowing access to the public telephone network. By contrast, a cordless
telephone is used only within the short range of a single, private base
station.
In addition to telephony, modern mobile phones also support a wide
variety of other services such as text messaging, MMS, email, Internet
access, short-range wireless communications (infrared, Bluetooth),
business applications, gaming and photography. Mobile phones that offer
these and more general computing capabilities are referred to
as smartphones.
The first hand-held cell phone was demonstrated by John F.
Mitchell and Dr. Martin Cooper of Motorola in 1973, using a handset
weighing around 2.2 pounds (1 kg). In 1983, the DynaTAC 8000x was the
first to be commercially available. From 1990 to 2011, worldwide mobile
phone subscriptions grew from 12.4 million to over 6 billion, penetrating
about 87% of the global population and reaching the bottom of the
economic pyramid.
12. 1
II. THE GLOBAL CELLULAR MOBILE PHONE INDUSTRY
The global mobile phone industry is based on many different
manufacturers and operators. The industry is based on advanced
technology and many of the manufacturers are operating in different
industries, where they use their technological skills, distribution
network, market knowledge and brand name. Four large
manufacturers of mobile phones are today dominating the global
mobile phone industry; Nokia, Sony, Samsung and Apple. In addition
to these companies there are many manufacturers that operate
globally and locally.
Figure 1 Worldwide cellular Infrastructure Revenue by
Technology, 2005-‘15
13. 1
III. TELECOM INDUSTRY IN INDIA
India is the second most populous country in the world with the Overall
GDP of $1.85 trillion (10th overall)
World’s largest democracy system with multi party model at its core.
Indian telecom is the second largest in the world (behind china) on the
basis of telephone users (Both fixed and wireless).
The Industry grew over 30 times from 37 million users in 2001 to
960.09 million (Both fixed and wireless) in 2012.
Fixed lines stood at 31.53 million in May 2012.
Total mobile phone active were at 929.37 million in 2012.
Total Wireless Teledensity was at 79.37% in 2012.
Total monthly additions were at 8.35 million by May 2012. (Both fixed
and wireless).
Fixed line rural density is at 33 % as of May 2012 Projected Wireless
Teledensity is at 84%.
The Industry in India is rapidly transforming into Next Gen Network
through various telephone exchange, mobile switching centers and
media gateways using optical fiber or microwave radios.
1.18% of household in India have broadband access. There were
14.31 million internet users in India as of May 2012.
Total ARPU for 2012 stood at $2.36 as compared to $46.50 in US
Lowest mobile tariffs in India due to high competition.
Total revenue generated in 2012 by telecom sector to be estimated
upward of US$50 billion.
14. 1
IV. HISTORY OF INDIAN TELECOMMUNICATIONS
Well Postal means of communication was the only mean communication until
the year 1850. In 1850 experimental electric telegraph started for first time in
India between Calcutta (Kolkata) and Diamond Harbor (southern suburbs of
Kolkata, on the banks of the Hooghly River).
In 1851, it was opened for the use of the British East India Company.
Subsequently construction of telegraph started throughout India. A separate
department was opened to the public in 1854. Dr.William O’Shaughnessy,
who pioneered the telegraph and telephone in India, belonged to the Public
Works Department, and worked towards the development of telecom.
Calcutta or the-then Kolkata was chosen as it was the capital of British India.
In early1881, Oriental Telephone Company Limited of England opened
telephone exchanges at Calcutta (Kolkata), Bombay (Mumbai), Madras
(Chennai) and Ahmedabad. On the 28th January 1882 the first formal
telephone service was established with a total of 93 subscribers.
From the year 1902 India drastically changes from cable telegraph to wireless
telegraph, radio telegraph, radio telephone, trunk dialing. Trunk dialing used in
India for more than a decade, were system allowed subscribers to dial calls
with operator assistance. Later it moved to digital microwave, optical fiber,
satellite earth station. During British period all major cities and towns in India
were linked with telephones.
In the year 1975 Department of Telecom (DoT) was responsible for telecom
services in entire country after separation from Indian Post &
Telecommunication. Decade later Mahanagar Telephone Nigam Limited
(MTNL) was chipped out of DoT to run the telecom services of Delhi and
Mumbai.
In 1990s the telecom sector was opened up by the Government for private
investment. In1995 TRAI (Telecom Regulatory Authority of India) was setup.
15. 1
This reduced the interference of Government in deciding tariffs and policy
making. The Government of India corporatized the operations wing of DoT in
2000 and renamed Department of Telecom as Bharat Sanchar Nigam Limited
(BSNL).
In last 10 years many private operator’s especially foreign investors
successfully entered the high potential Indian telecom market. Globally
acclaimed operators like Telenor, NTT Docomo, Vodafone, Sistema, SingTel,
Maxis, Etisalat invested in India mobile operators.
Wireless Communication
Pager Services: Pager communication successfully launched in
India in the year 1995. Pagers were looked upon as devices that
offered the much needed mobility in communication, especially for
businesses. Motorola was a major player with nearly 80 per cent of
the market share. The other companies included Mobilink, Pagelink,
BPL, Usha Martin telecom and Easy call. Pagers were generally
worn on the belt or carried in the pocket.
The business peaked in 1998 with the subscriber base reaching
nearly 2 million. However, the number dropped to less than 500,000
in 2002. The pager companies in India were soon struggling to
maintain their business. While 2-way pagers could have buffered
the fall, the pager companies were not in a position to upgrade their
infrastructure to improve the ailing market. The Indian Paging
Services Association was unable to support the industry.
Pager companies in India also offered their services in regional
languages also. However, the end had begun already. By 2002,
Motorola stops making or servicing pagers. When mobile phones
were commercially launched in India, the pager had many
advantages to boast. Pagers were smaller, had a longer battery life
16. 1
and were considerably cheaper. However, the mobile phones got
better with time and continuously upgraded themselves.
Mobile Communication: First mobile telephone service on non-
commercial basis started in India on 48th Independence Day at
country’s capital Delhi. The first cellular call was made in India on July
31st, 1995 over Modi Telstra’s MobileNet GSM network of
Kolkata. Later mobile telephone services are divided into multiple
zones known as circles. Competition has caused prices to drop and
calls across India are one of the cheapest in the world.
Most of operator follows GSM mobile system operate under
900MHz bandwidth few recent players started operating under
1800MHz bandwidth. CDMA operators operate under 800Mhz band,
they are first to introduce EVDO based high speed wireless data
services via USB dongle. In spite of this huge growth Indian telecom
sector is hit by severe spectrum crunch, corruption by India Govt.
officials and financial troubles.
In 2008, India entered the 3G arena with the launch of 3G
enabled Mobile and Data services by Government owned MTNL and
BSNL. Later from November 2010 private operator’s started to launch
their services.
Broadband communication: After US, Japan, India stands in third
largest Internet users of which 40% of Internet used via mobile phones.
India ranks one of the lowest providers of broadband speed as
compared countries such as Japan, India and Norway. Minimum
broadband speed of 256kbit/s but speed above 2Mbits is still in a
nascent stage.
Year 2007 had been declared as “Year of Broadband” in India.
Telco’s based on ADSL/VDSL in India generally have speeds up to
24Mbit max while those based on newer Optical Fiber technology offer
up to 100Mbits in some plans Fiber-optic communication (FTTx).
Broadband growth has been plagued by many problems. Complicated
17. 1
tariff structure, metered billing, High charges for right of way, Lack of
domestic content, non-implementation of Local-loop unbundling have
all resulted in hindrance to the growth of broadband.
Many experts think future of broadband is on the hands of
wireless factor. BWA auction winners are expected to roll out LTE and
WiMAX in India in 2012.
Next Generation Network (NGN): Next Generation Networks, multiple
access networks can connect customers to a core network based on IP
technology. These access networks include fiber optics or coaxial
cable networks connected to fixed locations or customers connected
through Wi-Fi as well as to 3G networks connected to mobile users.
As a result, in the future, it would be impossible to identify whether
the next generation network is a fixed or mobile network and the
wireless access broadband would be used both for fixed and mobile
services. It would then be futile to differentiate between fixed and
mobile networks both fixed and mobile users will access services
through a single core network. Cloud based data services are expected
to come.
Indian Satellites: India has launched more than 50 satellites of various
types, since its first attempt in 1975. The organization responsible for
Indian satellites is the Indian Space Research Organization (ISRO).
Most Satellites have been launched from various vehicles, including
American, Russian, European satellite-launch rockets, and the U.S.
Space Shuttle. First Indian satellite Aryabhata on 19th April 1975, later
Bhaskara, Rohini, INSAT, Edusat, IRS, GSAT, Kalpana, Cartosat, IMS,
Chandrayaan, ResourceSat, RiSat, AnuSat, etc.
18. 1
V. KEY PLAYERS IN THE MOBILE MARKET IN INDIA
The key players in the mobile market in India are as follows:
1. Samsung
2. Nokia
3. Sony
4. Blackberry
5. Apple
6. Micromax
7. LG
19. 1
SAMSUNG
Samsung Telecommunications America (STA) was established by Samsung
Electronics Corporation in 1992. From its Dallas, Texas headquarters, STA
researches, develops and markets a variety of personal and business
communications products throughout North America including handheld
wireless phones, wireless communications infrastructure systems and
enterprise communication systems.
Figure 2: Samsung Mobile
Today, STA's Mobile Handset division remains the fastest growing business
segment in the history of its parent company, Samsung Electronics, Ltd. The
division has been recognized as the number one mobile phone manufacturer
in customer loyalty by Brand Keys, Inc. for five consecutive years and it is a
driving force that has allowed Samsung Electronics to become the fastest
growing brand in the world.
Figure 3: Samsung Logo
20. 1
History
1992: Purchased Prostar Telecom Inc.
1996: Est. Dallas HQ & Expanded Telecom Products.
1997: Consolidated Telecom R&D (San Jose/Boston Maryland; Sprint
Becomes First Customer)
2001: CDMA W/S 1st Biz in North America: Sprint; HHP Customer
Expanded to T-Mobile & Verizon.
2002: HHP Customer Expanded to AT&T.
2006: Achieved over 100 Million HHP Units Shipped.
2008: Achieved HHP M/S #1 in U.S. (since 08'3Q); '08 YTD HHP Sales
over 5 Billion $.
2009: Achieved over 200 Million HHP Units Shipped; '09 Estimated
HHP Sales were over 6 Billion $.
Figure 4: Samsung Business Principles
21. 1
Samsung is dedicated to developing innovative technologies and efficient
processes that create new markets, enrich people's lives and continue to
make Samsung a digital leader.
At Samsung, it's our people that take our products across the line. We seek
creative and bold minded individuals who can meet the exciting challenges of
today's marketplace.
22. 1
NOKIA
Nokia Corporation is a Finnish communications and information technology
multinational corporation that is headquartered in Espoo, Finland. Its Nokia
Solutions Networks and company provides telecommunications network
equipment and services, while Internet services, including games, music,
applications, media and messaging, and free-of-charge digital map
information and navigation services, are delivered through its wholly owned
subsidiary Navteq.
Figure 5: Nokia Mobiles
Microsoft’s buyout of Nokia’s mobile phone business has been the talk of the
town recently. So, let’s take a look at how Nokia rose to fame and became the
world’s leading mobile phone manufacturer, eventually losing the spot to
smartphone giants like Samsung and Apple.
The company’s timeline originally begins in 1865 but things really began
rolling six years later in 1871. This was when mining engineer and co-founder
of Nokia, Fredrik Idestam opened his second paper mill. From here, the
company produced tyres, boots etc. After doing this for over a century, it was
in 1987 that Nokia came up with the Mobira Cityman, a phone that weighed a
whopping 800 grams and cost 4,650 euros.
In 1992, after selling off its non-mobile holdings, the company launched the
Mobira Cityman 2000, better known as the Nokia 1011. This was followed by
23. 1
the even better known Nokia 1100, back in 2003. This was a massive success
and became the most popular electronics device at the time.
From here, the company continued at the head of the mobile phones
business, before being toppled over by Samsung in 2012. The rise in
popularity of smartphones has left Nokia with only 15 per cent of the market
share, but the company seems to be fighting back with its Lumia series.
Figure 6: Nokia Smartphone shipments
24. 1
SONY
SONY CORPORATION is a Japan-based company mainly engaged in the
manufacture and sale of electronic products. This is a company of 168,200
employees (as of March 31, 2011).The major products company
manufactures are:
Figure 7: Products of SONY
Audio- Home audio, portable audio, etc.
Video- Video cameras, digital still cameras, and DVD-Video
players/recorders, and Digital-broadcasting receiving systems
Televisions- LCD televisions
Information and communications- PC, printer system, broadcast and
professional-use audio/video/monitors and other professional-use equipment
Semiconductors- LCD, CCD and other semiconductors
Electronic components- Optical pickups, batteries, audio/video/data
recording media, and data recording systems
25. 1
Figure 8: Business Segments of SONY
Brief History
Sony’s humble beginning started in Japan in 1946 from the sheer
determination and hard work of two bright and enterprising young men. Both
Masaru Ibuka and Akio Morita joined hands in making their dream of a
successful global company a reality. Learn more about who we are and what
we do in this section.
It was in 1946 that Masaru Ibuka and Akio Morita together with a small team
of passionate and committed group of employees started to build “Tokyo
Tsushin Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research
Institute” into the billion dollar global conglomerate that it is today. The main
objective of the company was to design and create innovative products which
would benefit the people.
26. 1
From early attempts at creating products like the rice-cooker to the later
success of creating Japan’s first magnetic recorder, the innovative company
went on to create other hit products which won the company widespread
recognition and international acclaim as a truly global company known for its
quality and innovative products. Significant product milestones included
Japan’s first transistor radio (1955), Trinitron color television (1968), Walkman
personal stereo (1979), Handycam video camera (1989), PlayStation (1994),
Blu-ray Disc recorder (2003) and PlayStation 3 (2006).
The company name of Sony was created by combining two words of “sonus”
and “sonny”. The word “sonus” in Latin represents words like sound and
sonic. The other word “sonny” means little son. Used in combination, Sony is
supposed to represent a very small group of young people who have the
energy and passion towards unlimited creations and innovative ideas. With
the far-sight of expanding worldwide, it was in 1958 that the company formally
adopted “Sony Corporation” as its corporate name. Easy to pronounce and
read in any language, the name Sony, which has a lively ring to it, fits
comfortably with the spirit of freedom and open-mindedness.
27. 1
BLACKBERRY
BlackBerry Limited, formerly known as Research In Motion
Limited (RIM), is a Canadian telecommunication and wireless equipment
company best known as the developer of the BlackBerry brand
of smartphones and tablets. The company is headquartered
in Waterloo, Ontario, Canada. It was founded by Mike Lazaridis, who served
as its co-CEO along with Jim Balsillie until January 22, 2012; as of November
2013, Prem Watsa assumes the new title of "Lead Director and Chair of
Compensation". In November 2013, John S. Chen took over as CEO. His
strategy is to farm out manufacturing to Foxconn, and to focus on software
technology.
Figure 9: Blackberry Phones
Originally a dominant innovative company in the smartphone market for
business and government usage, with 43% US market share in 2010, the
company has in recent years declined precipitously, in part because of
intense competition from Apple's iPhone and Google's Android brands. Due to
such competition, the company's share in the US personal consumer market
was reduced to 3.8% in 2013. On September 23, 2013 the company signed
a letter of intent to be acquired for US$4.7 billion, or US$9 per share, by a
consortium led by Fairfax Financial which has announced its intentions to take
the company private. The majority of Blackberry's remaining value lies in
its patent portfolio, which has been valued at between US$2 billion and $3
billion.
28. 1
Figure 10: Blackberry Sales
BlackBerry accounts for 3% of mobile device sales worldwide in 2011, making
its manufacturer the sixth most popular device maker (25% of mobile device
sales are smartphones). The consumer BlackBerry Internet Service is
available in 91 countries worldwide on over 500 mobile service operators
using various mobile technologies. As of September 2012, there were eighty
million subscribers worldwide to BlackBerry. In 2011 the Caribbean and Latin
America had the highest penetrations of BlackBerry smartphones worldwide,
with up to about 45 percent in the region having a BlackBerry device.
BlackBerry was widely referred to as "CrackBerry" in the United States, which
alluded to its excessive use by its owners and is a reference to
the addictiveness of crack cocaine. Use of the term "CrackBerry" became so
widespread that in November 2006 Webster's New World College
Dictionary named "crackberry" the "New Word of the Year."
29. 1
APPLE
Apple Inc. is an American multinational corporation that designs and markets
consumer electronics, computer software, and personal computers. The
company’s best-known hardware products include the:
Macintosh line of computers, the iPod, the iPhone and the iPad.
Figure 11: Apple Inc. Products
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on
April 1, 1976 to develop and sell personal computers. It was incorporated as
Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on
January 9, 2007 to reflect its shifted focus towards consumer electronics.
As of October 2010, the company operates 317 retail stores in ten countries,
and an online store where hardware and software products are sold. As of
September 2011, Apple is the largest publicly traded company in the world by
market capitalization and the largest technology company in the world by
revenue and profit.
30. 1
As of September 2010, Apple had 46,600 full time employees and
2,800temporary full time employees worldwide and had worldwide annual
sales of$65.23 billion.
Figure 12: Opening Weekend iPhone Sales Through The years
Apple has established a unique reputation in the consumer electronics
industry. This includes a customer base that is devoted to the company and
its brand, particularly in the United States. Fortune magazine named Apple
the most admired company in the United States in 2008, and in the world in
2008, 2009, and 2010.
31. 1
MICROMAX
Micromax is an Indian consumer electronic company located
in Gurgaon, Haryana, India. It is in the business of manufacturing of
Mobile, Tablet Computers, 3G Data cards and LED Televisions. It has 23
offices in India and an international office in Hong Kong. The company has
~1200 employees. Micromax started as an IT software company in the year
2000 working on embedded platforms. In 2008, it entered mobile handset
business and by 2010 it became one of the largest Indian domestic mobile
handsets company operating in low cost feature phone segments. This
transformation was steered by four friends who divided responsibilities on
functional lines, which haven’t changed since: Rajesh Agarwal, Rahul
Sharma, Vikas Jain, and Sumeet Arora. The company has a 22% market
share in the smartphone segment in India as per IDC for Q2 2013. The
company's product portfolio has more than 60 models ranging from feature
rich, dualSIM phones, 3G Android Smartphones, TabletsPC's, LED Television
s and 3G data cards.
Figure 13: Products of Micromax
32. 1
The company claims it has many firsts to its credit in the Mobile handset
market – including the 30-day battery backup, dual, QWERTY Keypad,
Universal Remote Control Mobile Phone etc. Micromax has presence in more
than 560 districts through 125,000 retail outlets in India. The company has
sales presence spread across Bangladesh, Sri Lanka, and Nepal and was
once present in UAE.
History
Micromax started its mobile phone manufacturing operations in 2008 when
multinationals ruled the telecom industry. With an understanding of the rapidly
changing consumer preferences coupled with the use of the latest
technologies; Micromax differentiated itself from the other players with its
pricing.
Figure 14: Logo of Micromax
Everything started with a truck battery in the year 2007. In the powerless city
of Baharampur in the Indian State of West Bengal, Mr. Rahul Sharma saw
an Airtel Pay Phone being powered by a truck battery. Every night, the PCO
owner would lug the battery 12 km to an adjoining village on his cycle, charge
it there overnight, and lug it back to Berhampur in the morning. Rahul was
fascinated by the nature of innovative adaptation to suit the difficult conditions
which the payphone operator had employed and his interest only grew when
he found out that to everyone’s surprise, the operator was also able to earn a
tidy sum of money. Based on this experience of innovation arising from
constraint, Micromax soon launched its first phone with a month long battery
33. 1
back-up known as X1i. In 2011, Micromax entered the phablet market with the
Canvas series. Micromax aims to be a company with a double digit market
share by 2014. Now the company has entered the smartphone segment and
tries to change the status quo that innovation and technology comes at a
price.
On 28 July 2011, Micromax withdrew its 4.66 billion rupees (about $106
million) initial public offering (IPO) due to volatile market conditions. The
withdrawal was recommended by its board in order to allow the company to
focus on new product launches and product development.
On October 2013, the company made an announcement that Hollywood
actor Hugh Jackman will be endorsing the soon-to-be-launched Micromax
smartphone called Canvas Turbo.
34. 1
LG
LG Electronics is a South Korean multinational electronics company
headquartered in Yeouido-dong, Seoul, and a member of the LG
Group chaebol. The company operates its business through five divisions:
Mobile Communications, Home Entertainment, Home Appliances, Air
Conditioning, and Energy Solutions. It is the world's second-largest television
manufacturer (after Samsung Electronics), and the world's fourth-largest
mobile phone maker by unit sales in the third quarter of 2013.
Operations
LG Electronics has about 75 subsidiaries worldwide. LG Electronics
owns Zenith and controls 37.9 percent of LG Display.
Figure 15: Sales of LG
Mobile Communications division
The Mobile Communications division provides mobile
communication terminals, personal computers and communication
devices.
35. 1
LG mobile devices are made for CDMA networks worldwide. LG
phones are available also in unlocked versions that can be used on
any GSM and network worldwide.
LG sold 116.7 million mobile phones in 2010, corresponding to a
market share of 8.4%.
Home Appliances division
The Home Appliances division manufactures refrigerators, washing
machines, stoves, microwave ovens, vacuum cleaners,
compressors, and motors.
Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the
company's total revenue. The division's profit was KRW 717.1
billion.
Air Conditioning & Energy Solutions division
The Air Conditioning & Energy Solutions division makes air
conditioners and LED lighting
About 35% of the company's home appliance revenue comes from the North
American market.
Figure 16: LG Products
37. 1
OBJECTIVES OF STUDY
PRIMARY OBJECTIVE
The Primary Objective was to study the perception & buying
behavior of students towards various mobile brands.
SECONDARY OBJECTIVE
The Secondary Objectives of this study were to identify:
To know about the student preference level associated with
different mobile phones.
To find out the students satisfaction towards the various mobile
phones.
Major features, which a customer looks for in a mobile
before making a purchase.
Factors that influence decision-making in purchasing a mobile
phone.
To know which advertisement media puts more impact
on the buying decision of students.
Factors, which help in increasing the sale of mobile phones.
38. 1
RESEARCH METHODOLOGY
SAMPLING METHODOLOGY:
Sample Size —100 respondents
Sample Unit- Students of Graduation and the Post-Graduation have
been taken as sample unit.
Sampling Area – Delhi
Sampling Technique - Random Sampling technique
RESEARCH DESIGN:
Visited the students across Delhi & gathered information required as
per the questionnaire.
The research design is probability research design and is descriptive
research.
DATA COLLECTION:
Primary data has been used by me in the form of Questionnaire &
Observation, which are the two basic methods of collecting primary
data, which suffices all research objectives.
Secondary data sources like catalogue of the company, product range
book of the company & various internet sites such as motorola.com &
google.com have been used.
39. 1
DATA ANALYSIS & INTERPREPATION
Q-1 Sex ratio of the respondents
Table Number – 1
PARTICULARS NUMBER %AGE
MALE 53 53
FEMALE 47 47
TOTAL 100 100
Figure 17: Representation of Sex ratio of the Respondents
44
45
46
47
48
49
50
51
52
53
54
Male Female
Number ofRespondents
Percentage ofRespondents
Interpretation
The graphical representation of the table shows that out of the 100
Respondents, 53 were male and 47 were female.
40. 1
Q.2- occupation of the Respondents’ Family
Table Number – 2
PARTICULARS NUMBER % AGE
Service 45 45
Professional 13 13
Business 30 30
Others 12 12
Total 100 100
Figure-18 Representation of occupation of the Respondents’
Family
0
10
20
30
40
50
Service Professional Business Other
Number OfRespondents
Percentage ofNumber of
Respondents
Interpretation
The graphical representation of the table shows that out of the 100
respondents, 45 respondents belong to the service family, 13 were from
business, 30 were from the professional and 12 were from the others family.
Q.3- Income level of respondent’s family
41. 1
Table Number 3
PARTICULARS NUMBER %AGE
Less than 15,000 42 42
15,001-25,000 24 24
25,001-35,000 20 20
35001 & above 14 14
Total 100 100
Figure-19 Representation of Income level of respondent’s family
0
5
10
15
20
25
30
35
40
45
Lessthan 15,000 15,001-25,000 25001-35,000 35,001 & above
Number of Respondents
Percentage of Number of
Respondents
Interpretation
The graphical representation of the table shows that out of the 100
respondents, 42 respondents were from the family whose income is less than
15,000, 24 respondents were from the family whose income is between the
15,001 – 25,000, 20 respondents were from the family whose income is
between 25,001- 35,000 and rest were from the family whose income is
above Rs. 35,001.
42. 1
Q. 4 Educational Qualification of Respondent’s Parents
Table Number 4
PARTICULARS NUMBER %AGE
High school 13 13
Intermediate 9 9
Graduate 37 37
Post graduate 39 39
Other 2 2
Total 100 100
Figure 20: Representation of Educational Qualification of
Respondent’s Parents
43. 1
0
5
10
15
20
25
30
35
40
High School Intermediate Graduate Post
Graduate
Other
Number of
Respondents
Percentage of
Number Of
Respondents
Interpretation
The graphical representation shows that out of the 100 respondents, 39
respondent’s parents are post graduate, 37 respondent’s parents are
graduate, 13 respondent’s parents are high school, 9 are intermediate and
rest have others educational background.
Q.5- Which mobile phone you are using?
Table Number 5
S.NO Name of the Mobile
Phones
Number of the
Respondents
Percentage of
Respondents
1 Nokia 6 6
2 Samsung 32 32
3 Sony 25 25
4 LG 5 5
5 Blackberry 5 5
44. 1
6 Micromax 13 13
7 IPhone 10 10
8 Others 4 4
Total 100 100.0
Figure 21: Representation of Number of Respondents with Various
mobile phones
0
5
10
15
20
25
30
35
Nokia Samsung Sony LG Blackberry Micromax Iphone Others
Number of
Respondents
Percentage of
Number of
Respondents
Interpretation
Out of the 250 respondents, 6 are using the Nokia phones, 32 are using
the Samsung, 25 are using the Sony, 5 are using the LG, 5 are using the
Blackberry, 13 are using the Micromax, 10 are using iPhone and 4 are
using others.
Q.6- How long you are using mobile phone?
Table Number 6
45. 1
S.NO Time Period of
using the mobile phones
Number of the
Respondents
Percentage of
Respondents
1 Less than 1 year 19 19
2 1-2 years 31 31
3 2-4 years 22 22
4 Above 4 years 28 28
Total 100 100.0
Figure 22: Number of the Respondents on the basis of usage time
period
46. 1
0
5
10
15
20
25
30
35
Less than 1
year
1-2 years 2-4 years above 4 years
Number of Respondents
Percentage of Number of
Respondents
Interpretation
Out of the 250 respondents 19 are using for less than year, 31 are
using for 1-2years, 22 are using for 2-4 years, 28 are using for above
4 years.
Q.7- How often do you change your mobile phone?
Table Number 7
S.NO. Frequency of changing the
mobile phones
Number of the
Respondents
Percentage of
Respondents
1 Less than 1 year 17 17
2 1-2 years 23 23
3 2-4 years 36 36
4 Above 4 years 24 24
Total 100 100.0
47. 1
Figure 23: Number of the Respondents on the
basis of frequency of changing mobile phones
0
5
10
15
20
25
30
35
40
Less than 1
year
1-2 years 2-4 years Above 4 years
Number of Respondents
Percentage of Number of
Respondents
Interpretation
Out of the 250 respondents 17 are using for less than year, 23 are using
for 1-2years, 36 are using for 2-4 years, 24 are using for above 4 years.
Q.8- What will you be willing to pay for a mobile phone by respondents?
Table Number 8
48. 1
PARTICULARS NUMBER %AGE
Less than 10,000 56 56
10,000 to 20,000 34 34
20,001 to 40,000 7 7
Any amount 3 3
Total 100 100
Figure 24: Representation of willingness of respondents to pay for a
mobile
0
10
20
30
40
50
60
Less than
10,000
10,000-20,00020,001--40,000 Any Amount
Number of
Respondents
Percentage of
Number of
Respondents
Interpretation
The graphical representation shows that out of the 100 respondents, 5 6
respondents were willing to spend less than 10,000, 3 4 were willing to
spend between 10,001 to 20,000, 7 were willing to pay between 20,001 to
40,000 and rest were ready to pay any amount.
49. 1
Q.9- Consider the TV advertisement you like most –what brand is it
promoting by respondents?
Table Number 9
PARTICULARS NUMBER %AGE
Nokia 12 12
Samsung 48 48
Sony 20 20
LG 2 2
Micromax 13 13
IPhone 2 2
Blackberry 2 2
Other 1 1
Total 100 100
Figure 25: Representation of preference of brand on the basis of
advertisement
50. 1
0
10
20
30
40
50
Nokia Samsung Sony LG Micromax Iphone Blackberry Other
Number ofRespondents
Percentage ofNumber of
Respondents
Interpretation
Out of the 250 respondents, 48 like the Samsung advertisement most, 12 like
the Nokia, 20 like the Sony, 13 like the Micromax, 2 like the LG and rest like
others.
FINDINGS
The findings of the project are as follows:-
Samsung is the most favorite brand of the college student.
36% students change their mobile phones within 2 to 4 years.
31% students are using the mobile phones since last 1 to 2 years.
51. 1
56% students are ready to pay for a mobile phone less than
10,000 and they spend according to their family income.
48% students like the Samsung advertisement most.
Mostly students use the mobile phones for talking, SMS and for using
the GPRS function.
Mostly students have hands free, Bluetooth and memory card.
Almost all students are aware about the GPRS, Bluetooth and MMS
service but least students are aware about the 3G function.
Most favorite brand among the college students is Samsung and the
least favorite brand is LG.
Appearance, Price, Brand Image and advertisement are the
important factors for the students while purchasing mobile phones.
Mostly students prefer slim, medium in weight and large in size
handset
Mostly students see advertisement on television.
Story, spokesperson and the music are the important factor in
advertisement
Mostly students have the hanging and service problem with the Nokia
& Micromax.
52. 1
RECOMMENDATIONS
Nokia should provide better service and try to solve the
hanging problem.
Cellular companies should increase the awareness about the
3G service. Companies should offer more range of Rs. 10,000
or less than 10,000.
53. 1
LG and Blackberry should try to expand its market share and also
should try to increase the awareness through the television
advertisement.
All companies should increase their distribution channel.
The companies should continue to work on the Strategy of T.Q.M
(Total Quality Management)
Consumers do not get satisfied with the promotional policies of the
companies. New techniques of promotion are required to create
awareness about the entire range of companies’ products.
54. 1
LIMITATIONS
A small sample size of 100 students is taken, so we cannot draw
inferences about the population from this sample size.
Time period is short and resource constraints.
The scope of the project is limited to the city of Delhi. So, we cannot
say that the same response will exist throughout India.
This study is based on the prevailing student’s satisfaction. But the
student’s satisfaction may change according to time, fashion,
technology, development, etc.
56. 1
ANNEXURE
QUESTIONNAIRE
Section A: Personal Information
1. Name:
2. (a) Age
(b) Gender
3. Occupation of Father
Service
Professional
Business
Others
Specify
4. Income Level (per month)
Less than 15,000
15,001 – 25,000
25,001 – 35,000
35,001 & above
57. 1
5. Educational Background (Parents)
High School
Intermediate
Graduate
Post Graduate
Other Specify
Section B: About mobile phones
6) Which mobile phone you are using.
A) Nokia B) Samsung
C) Sony D) LG
E) Micromax F) iPhone
G) Blackberry H) Others
Specify
7) Please write the model of your phone
(example: Nokia 1100, Sony J)
58. 1
8) How long you are using the mobile phone?
Less than 1 year
1 – 2 years
2-4 years
Above 4 years
9) What are the reasons for using the above
mentioned model?
A) WAP
B) Just to talk on it
C) Use GPRS function
D) Receive Email & SMS
E) Down Load Files
F) Others
Specify
10) How often do you change your mobile phone?
Less than 1 year
1 – 2 years
2 – 4 years
Above 4 years
59. 1
11) What phone Accessories do you have?
A) Hands free
B) Bluetooth Head Set
C) USB Data Cable
D) Memory Card (SD Card)
E) Others
Specify
12) Latest Mobile facilities which you are aware of:-
(Can tick multiple boxes of the facilities you know.)
A) GPRS
B) 3G
C) MMS
D) BLUETOOTH
E) INFRARED
F) VIDEO CALL
G) OTHER FACILITIES
Specify
13) Do you prefer phones to be?
Slim or medium or thick
Light or medium or heavy
Small or medium or large
60. 1
14) What is your favorite brand in Mobiles?
(Please choose your 3 favorite brands in order of preference from the
brands in the table below: 1-most favorite, 3-least favorite.)
1 2 3
Nokia
Samsung
Sony
IPhone
Blackberry
Micromax
Lg
Others
Specify the brand
15) Why you like the brands you chose above?
(Please indicate the important of below factors when you choose the brands.
1-very important, 2- somewhat important, 3-neither important nor
unimportant, 4-less important, 5- unimportant.)
1 2 3 4 5
Advertisement
Appearance
61. 1
Price
Functions
Quality
Brand image
Service
Recommended by
friends
Others
Specify
16) What would you be willing to pay for a mobile phone?
Less than 10,000
10,001 to 20,000
20,001 to 40,000
Any amount
Specify
17) Where did you often see the mobile advertisement?
62. 1
A) TV B) News Paper
C) Magazine D) Online
E) Outdoor F) Radio
G) Leaflets
H) Others
Specify
18) Consider the TV advertisement you like – what brand is it
promoting
A) Nokia B) Samsung
C) Sony D) LG
E) Micromax F) iPhone
G) Blackberry H) Others
Specify
19) Which of the following would impress you the most?
63. 1
(Please indicate the important of below factors when you choose the
brands. 1-very important, 2-somewhat important, 3-neither important nor
unimportant, 4-less important, 5- unimportant.)
1 2 3 4 5
A. Slogan
B. Picture
C. Color
D. Story
E. Spokesperson
F. Music
G. Others
H. Recommended by
Friends
I. Others
Specify
20.) Are there any general comments you would make about what you
like/dislike about mobile phones? (This could be pricing, location of
sales, reception, color, memory, or anything else.)