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Under Supervision of: Mr. Dinesh Sharma CDMA-HHP Business Division Samsung India Electronics Limited (SIEL) Submitted by: Manish Pandey Roll No: TM08-027 PGDM (Telecom & IT)
ACKNOWLEDGEMENT
My summer training with Samsung India Electronics Limited (SIEL) would not have been possible and the learning experience would not have been the same without the guidance and care of certain people. Here I would like to acknowledge those important people. I take this opportunity of expressing my sincere gratitude to Mr. Dinesh Sharma sir (CDMA-HHP Business Division, SIEL) and Mr. Nikhil sir (Senior executive, SIEL). Under their able and competent guidance I worked throughout the period of my training. They made sure that I learn facts as they are in the real corporate world and prepared me for it. My special thanks go to our Director Mr Milind Oka, Honory Dean Col Balasubramanium and our professor and the faculty who have molded us to handle such critical project. We are deeply indebted for their able guidance. Irrespective of all other benefits, it was the unconditional support and aid of my family, which enabled me to achieve to fullest extent of my endeavor. I am also indebted to all the store manager/executive for their cooperation rendered while my course of investigation. Now I conclude the passage with sincere thanks to any and all, I may have forgotten to mention.
EXECUTIVE SUMMARY
I did my winter training at Samsung India electronics limited (SIEL), Mumbai in Marketing research. To know the present CDMA mobile market scenario of Samsung at Mumbai, Mr. Dinesh Sharma (CDMA-HHP business division, SIEL) my project guide gave me a project that involves a survey of CDMA mobile market at the dealer of Mumbai region. The duration of my project was 60 days. During the 60 days I traveled extensively to try & cover maximum dealers of CDMA market of Mumbai. The main objective of the survey was to know the position of Samsung in market and present scenario of CDMA mobile market. The project was done in coordination with the dealers of CDMA mobile market. The work atmosphere at Samsung was very good. There was sufficient encouragement for even a management trainee to try and contribute the development of the company.
CONTENTS no.
1. Introduction A. B. C. D. Mobile Market in India Company Profile Vision of company Samsung in mobile business and CDMA business 10 E. Product profile 11 2. Project Design 13 A. Problem identification 14 B. Development of an approach to the problem 15 C. Research design formulation 17 D. Field work or data collection 18 E. Analysis of data. 19 3. Marketing View 35 A. Competitor analysis 36
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List of figure and charts 1. Indian Telecom GSM Vs CDMA 2. Mission of company 3. Samsung CDMA mobile business 4. Samsung handsets 10 5. Product life cycle 13 6 8 9
6. Availability of handsets 17 7. CDMA market share 18 8. Handset wise market share 18 9. Comparative market share 19 10. Consumer demand pie chart 21 11. Comparative study of consumer demand 22 12. Consumer pull bar chart 29 13. After sales service bar chart 29 14. Distribution bar chart 30 15. Interpretation charts for Samsung 31
1. INTRODUCTION
In this sector number of equipment manufacturer or mobile manufacturer presents such as: o Nokia o Samsung o LG o Mototola o Sony o Haier o Intex
B. Company Profile
INDIA Samsung India is the hub for Samsung's South West Asia Regional operations. The South West Asia Headquarters, under the leadership of Mr. J S Shin, President & CEO, Samsung India which commenced its operations in India in December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. Headquartered in New Delhi, Samsung India has widespread network of sales offices all over the country. The Samsung manufacturing complex housing manufacturing facilities for Color Televisions, Mobile phones, Refrigerators and Washing Machines is located at Noida, near Delhi. Employing approximately 138,000 people in 124 offices in 56 countries, Company consists of five main business units: o o o o o Digital media Business LCD Business Semiconductor Business Telecommunications Digital Appliance Business
C. Vision Of Company
Samsung is guided by a singular vision: to lead the digital convergence movement. Samsung believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunityfor businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities. Its our aim to develop innovative technologies and efficient processes that create new markets, enrich peoples lives and continue to make Samsung a trusted market leader.
Mission of Company
Everything we do at Samsung is guided by our mission: to be the best digitalCompany.
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o Open handsets are handsets manufacture by Samsung and handsets is compatible to any CDMA network, there is no restriction of any specific CDMA network.
E. Product Profile
Samsung has wide range of CDMA products in the market.
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2. PROJECT
DESIGN
A. Problem identification / Objective Find Out Dealers expectation to sell, promote a particular brand of CDMA mobile. Find Out the consumers expectation to buy a particular brand of CDMA mobile.
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How a consumer choose a new CDMA handset, how does a CDMA mobile consumer upgrade handset choice, it mean what features he/she wants in handset. What features customer likes more in handset? Analysis regarding customers complains. Samsung rating on dealers and consumers expectations. Need gap analysis.
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In Indian Mobile CDMA Market the SAMSUNG CDMA mobile is in growth stage. In growth stage we need to do following type of market studies. Awareness studies: In this study we need to know how much customer awareness about the availability/lucrative features of Samsung handsets in the market. Attitude studies: This study elaborates the expectations and thinkings of seller and consumer as far as the CDMA mobile handset is concern. Positioning: By this study we would know positioning of Samsung CDMA mobile handsets in the mobile market. Promotion test: By this study we would know what are the factors that improve the sales of Samsung CDMA mobile handsets? Tracking studies: This study shows how Samsung CDMA mobile is competing with the competitors is. What are the factors we need to change/improve to beat the competitors? Type of meeting: It would be personal visit/interview to retailers and distributors. Advantage of Personal visit: High response rate. Can ask difficult Questions.
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We have to visit the whole Mumbai: for the proper plan of action of the project we divided the Mumbai into the following regions: South Mumbai: Central Mumbai: Western Mumbai: Thane: Navi Mumbai: Dombivali, Vilas nagar. Where to visit: Web worlds, TVH, TVS, Modern Trade, Retailers, and Distributors.
Purpose of visit: Want to know the customer thinking. Their liking and disliking about handsets. Sellers/retailers expectation about handsets. What improvement is needed in the existing handsets? Where the major problem arises in distributions of handsets. Where the Samsung CDMA mobile is, in Customers and Sellers mind. Plan of action: There are 14 working days in data collection phase. The target is to visit of 140 retailers. We have to visit 10-12 retailers/distributors per day. Timing would be between 11:00 am to 04:00 pm. Every day 1-2 hours for the data entry into excel.
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After that next 10 days is for data analysis and preparation of reports. 29th October would be final submission day of reports and final presentation at Samsung.
C. Research Design
Introduction
The research was conducted in Mumbai to find the market potential of CDMA handsets. The study determines the future potential of CDMA handsets in a booming economy where organization is going for new technologies in order to maintain their supremacy over other. Scope study The internship was done under Samsung India Electronics Limited Mumbai. The CDMA mobile market is going for a boom in world market. This study provides an insight to the current scenario as well as the future trends of CDMA market. Thus it can help to find out or to predict the future of CDMA in Indian market. Sample Size The sample size was 132 respondents taken. Questionnaire would be: It would be maximum 15 questions. Maximum questions would be open ended questions. Except one or two questions would be closed ended questions. Time spent to retailers and distributors would be 5 to 10 minutes.
Limitations of Study Lack of time Constraints in getting appointments Low awareness Lack of time to cover all the accounts
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3. ANALYSIS OF DATA
In this market survey, we have collected data from 132 dealers/retailers (sample size) of Mumbai region. All data is base on the market research of the 132 retail store.
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Above figure shows that Samsung is most preferred brand in CDMA mobile handsets among all the brands. LG is close competitor of Samsung with 93%+ availability in retail mobile stores. The availability of Spice, Huawei and Haier is also good in CDMA market with availability more than 50% mobile retail stores.
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Zigzag line shows CDMA market shares in retail stores. CDMA mobile market share is vary in different stores. Majority of CDMA mobile market share in stores vary between 20% - 40%.
CDMA Mobile Market Share (Handset wise) in 132 shops Collected data (from 132 shops)
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Market Share Less than 20% 20% - 30% 30% - 40% 40% - 50% More than 50%
Samsungs market share is high among all the brands. In majority of mobile retail stores Samsungs CDMA mobile market share is half or more than 50%. In most of the mobile stores Samsungs CDMA mobile market share is 30% 40%. LG is close competitor of Samsung; in majority of mobile shops market share of both of the brand is almost equal.
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As per the above figure the market share of Samsung and LG are overlaping in some of the stores. It mean where demand of both the brand is equal. The above figure indicated that LG and Samsung are the close competitors. Somewhere LG is leading in CDMA market share, somewhere Samsung is leading.
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Majority of availability of Spice mobile in retail stores is less than 20% of market share. Where as almost Samsungs market share in mobile stores is more than 20%.
Sales of Haier mobile are very good in some of mobile stores because of low price of handsets available in Haier. In some of the stores Haier mobile market share is more than 40%. But its market share is less as compare to Samsung.
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The above figure shows that Samsung is most preferred brand in the CDMA segment by consumers. Samsung has the direct competition with LG.
Consumer Demand of CDMA handsets of different brands (in 132 shops) Collected data (from 132 shops)
Consumer Demand Extremely High Very High High Average Less Very less Samsung 12 (9.4%) 80 (61%) 28 (21.7%) 3 (2.4%) 2 (2%) LG 10 (10.3%) 63 (48.2%) 40 (31.5%) 6 (4.7%) 3 (2%) 1(1%) Haier 3 (2.6%) 25 (18.6%) 50 (38.3%) 14 (10.3%) 8 (5.6%) 3 (2.6%) Spice 3 (2.6%) 44 (38.2%) 38 (33%) 39 (32.3%) 4 (3%) Huawei 9 (6.2%) 64 (53.2%) 4 (3%) 1 (1%)
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9 (5.9%)
12 (8.8%)
1 (1%) 27 (22.4%)
3 (2.6%) 37(30.3%)
5 (3.5%) 38 (28.9)
The above tables shows the number of retail mobile stores where consumer demand of each brand of handsets. In brackets the percentage is given of consumer demand for each brand of handsets.
Average
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Above figure shows consumer demand of Samsung CDMA mobile is very high. In 61% of retail mobile stores consumer demand is very high. Approximate in 10% of retail mobile stores Samsung consumer demand is extremely high. LG is close competitor of Samsung CDMA mobile, having 48% of very high consumer demand. Haier demand is also very good among the consumer because of low price handsets.
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More than 50% of mobile retail stores in Mumbai where consumer pull for Samsung CDMA handsets is very high. Almost 80% of the mobile retail stores where consumer pull for the Samsung mobile is satisfactory. But in 10% stores the distribution of Samsung is not satisfactory.
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From the above graph we can conclude that after sales service of LG CDMA mobile is some what better than Samsung CDMA mobile. After sales service is not satisfactory for all the brands.
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In some mobile stores of the Mumbai region where distribution of Samsung is not up to the mark. There are few places where distribution of Samsung is worst.
Interpretations / Conclusion for Samsung (By SPSS software) Consumer pull After sales service
Note: This is conclusion concluded by Chi square test by SPSS software. Only major component has taken. After sales service Consumer pull Very Good High Medium Average 4 2 Good 38 25 4 Average 14 9 -
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There is very high consumer pull despite average after sales services. In most of the shops after sales service is good but not very good despite this consumer pull is high, where as in some shops after sales service is just average but consumer pull is high. So we can say that there is no significance impact of after sales service to consumer pull.
Note: This is conclusion concluded by chi square test by SPSS software. Only major component has taken. Distribution Consumer pull Very Good High Medium Average 29 24 1 Good 26 14 2 Average 3 1 1 Below avg 1 -
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Very high consumers pull despite average distribution of Samsung. Very good distribution in some places but there is medium consumer pull.
It is main market for first time buyer. Very good market for low income people. Very limited selling of high range phones. But Sales is increase day by day. Good market for price range 900-3000 Rs phones. Good Market because FM + color display is available in just 1300 Rs. Some of the models are not coming in the market. Nokia is not available in CDMA market, except single model.
Price:
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CDMA is low price handset market. Only 1k-2k models are in demand. Very less selling of more than 3000 Rs handset. LG/Haier is cheaper handsets. Samsung is little bit costlier than LG/Haier. Price of CDMA handsets are high compare to GSM handsets. Recently price is increased that impacted the CDMA market. High switching cost in CDMA. Nokia is giving Bluetooth + Camera + FM in just 3000 Rs. CDMA customer also expect it. Price of CDMA handsets should reduce. Network: Reliance and TATA are doing good in CDMA market. More operator should come in CDMA. There are very limited plan and scheme are available in CDMA.
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Price should less then GSM phones. Camera, Bluetooth, memory, music should come in 3k-3.5k Rs. Camera also comes in 2k Rs mobile. Data cable comes in 2k Rs range. Display size should bigger than existing size. New functions should come in basic handsets. Good quality of software should come in operator handsets. At least some memory should also give to the operator handsets Only basic model should come in 700 Rs.
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Extra accessories like headphones, data cables, cds. Generally customer asks for memory, how many songs can be stored. 3.5k to 7k Rs model are good in demand.
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Customer pays 1000 Rs for basic handsets, 1500 Rs for handsets with FM and in 3000 Rs customer expects camera and memory. Customer CDMA handsets feature and quality should better than GSM handsets. Very important is network operators plan and scheme.
Key Factor that consumer consider while making 1st time handsets purchase
Customer wants 1k-2k Rs range mobile. Customer goes for basic models but if FM facility is there than prefer that. Basic model + color display + FM + speaker phone in 2K Rs range is most prefer handsets. Customer pays 1000 Rs for basic models and more than that amount they expect FM. Display of handsets and software of handsets is also play major role while purchasing.
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Other features like phone book memory at least 500 contacts storage should be there. In message storage at least 150 messages storage should be there. Customer goes for the look of the handsets. Customer expects headphones with the models. Customer always asks for battery backup while purchasing.
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4k-8k Rs range model are good in market. Camera clarity in megapixels, at least 2 MP should be there but 3.2 MP is preferred. At least 1GB memory should be in model, extendable memory should be there. Bluetooth is must. Recorder should be present in model. Internet/ GPRS facility should be in model. Multimedia phones are also in demand. Good battery backup. Extra accessories like head phones, data cables CDs should provide by company. Free ringtones, songs and software should provide by dealers.
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Variety of handsets should available in CDMA. Good looking, stylish, attractive handsets like sony & Nokia should available in CDMA. New model should launched by the company, frequently. Battery backup and handset functionality should improve. Voice quality should improve. Change/improve the quality of software; come up with good quality of software. More number of 4k-5k Rs model should available Song as ring tone should come in CDMA basic models. Camera, music, recorder, memory should also come in 3k-4k Rs range. Camera should also come in basic handsets Handsets should use in both CDMA as well as GSM network. Every operator comes up with variety of handsets. Price should reduce.
Offers / Marketing
Company should provide free ring tones, wallpapers, and softwares in CDMA. Company should provide extra accessories like headphone, data cable & CDs. Create awareness about CDMA brands. Advertisement, branding is requiring of CDMA handsets. Large advertisement board is required. Offers, consumer offers, festive offers. Improve the distribution of CDMA handsets.
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4.
MARKETING VIEW
Competitors Analysis
Following are the main competitors of Samsung CDMA Mobile:
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2.
Product : LG 3500
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Name CDMA Handset LG 3500 Mobile phone comes with Reliance have the distinguish Features as good battery backup ... Category : CDMA Handsets Brand : LG Price Range : Rs. 999 to 1,999
3. Product LG RD 3000 : Name , CDMA Handset Stylish looking bar type color phone High capacity battery 32 polyphonic rington ... [ Read More ] [ Specifications ] [ Description ] Category : CDMA Handsets Brand : LG Price Range : Rs. 1199* ( * approx. price)
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4. Product : LG VX8300 Cellular Phone, CDMA Handset Name This slim and sleek VX8300 is built for serious mobile fun. Exchange vCards ... Category : CDMA Handsets Brand : LG Price Range : Rs. 3200* ( * approx. price)
5. Product : LG Chocolate VX8500 Cellular Phone CDMA Handset Name LGs mobile treat, the VX-8500 Chocolate offers minimalist-inspired style and more Category : CDMA Handsets Brand : LG Price Range : Rs. 12000* ( * approx. price)
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6. Product name : Haier Sumukha CDMA Features: Network CDMA 800 MHz Dimensions 100x42x15 mm Weight 80grams Type 1.5'', 65K CSTN Size 128x128 pixels Phonebook 200 entries Call Records 10 missed, 10 dialled, 10 recevied calls Messaging SMS, MMS Clock Yes Alarm Yes Games Yes T9 Dictionary Stand-by Up to 115.00hrs Talk time Up to 3 hrs 00 min
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5 Force Model
There are lot of competition in Indian telecom market ,Chinese mobile companies are also entering into the sector. In Indian telecom market having more than 400+ million subscribers with 42% of teledensity, still there is lot of potential is remaining.
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As we know that there is very difficult to switch in B2B Market. Bargaining power of buyers [ High]
Indian market is very price sensitive market. Awareness about the mobile is very high so that bargaining power of the customer is also very high.
GSM is as a substitution for the CDMA mobile so threat of substitute is high. Rivalry among competing firms [ High ]
There if very high competition among the mobile equipment manufacturer. Chinese companies also coming in Indian market.
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SWOT Analysis
SWOT analysis of Samsung CDMA mobile: Strength: o Samsung is well known brand in electronic market. o Samsung is in both direct market as well as open market in mobile segment. o Collaborations with TATA, MTS (SSTL), Virgin mobile. o Large range of CDMA mobile product from 1K to 14K. o Strong National distribution channels. Weakness: o Samsungs late entry in Indian mobile market. o Samsung is not market leader in mobile market segment. Opportunity:
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o Tele density is increasing in Indian telecom market. o CDMA mobile would play a major role in rural penetration. o 3G is coming into existence.\ o Falling ARPUs of Indian telcos. o Foreign telcos are coming into Indian market would be opportunity for direct market. Threats: o Popularity of GSM mobile. o Competitors are focusing only in telecom segment. o Entry of foreign player in mobile equipment market. o Threats from Chinese mobile market
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5.
Conclusions
CDMA market has 30-35% of total mobile market share. CDMA sales are increase day by day. Samsung Market share is high among all the brands. Market share of LG is very much similar to Samsung in mobile stores. CDMA mobile market is very price sensitive market. Maximum selling of 1k-2k Rs lower range handsets. A handsets restriction is biggest problem in CDMA segment. Customers are very much aware about every feature of handsets. In CDMA mobile market there are limited player are available.
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There are very close competition among some players of handsets manufacturer. In CDMA very limited handsets is available. In CDMA variety of handsets is required. In CDMA handsets battery problem is biggest problem. Price of CDMA handsets is high as compare to GSM handsets. Basic handsets + FM + speaker are most demand model in operator handsets. Camera (>=2 mp), memory (>=1GB), slide model are important factor that influence the customer. Samsung is most preferred brand among the consumers. After sales service of Samsung CDMA mobile is average.
Recommendations
Variety of handsets should available. Company should provide free ring tones, wallpapers, and softwares in CDMA. Company should provide extra accessories like headphone, data cable & CDs. Create awareness about CDMA brands. Advertisement, branding is requiring of CDMA handsets. Large advertisement board is required.
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Offers, consumer offers, festive offers. Improve the distribution of CDMA handsets. 3k-5k Rs model should available in more variant. More variant of slide phones and touch screen phones should available. Touch screen phones should come in 8k Rs range. Any new feature should come in CDMA. Price should less then GSM phones. Camera, Bluetooth, memory, music should come in 3k-3.5k Rs. Camera also comes in 2k Rs mobile. Data cable comes in 2k Rs range. Display size should bigger than existing size. New functions should come in basic handsets. Good quality of software should come in operator handsets. At least some memory should also give to the operator handsets Only basic model should come in 700 Rs.
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QUESTIONNAIRE
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Location______________________ Date______________ Time__________________ Type MBO 1. a. Total Handset Sales : ____________________________ b. CDMA handset sales, total : _______________________ c. CDMA Handset Sales share in % of the following brands LG_______ Spice ______ Samsung_______ Micromax____________ Others__________________ WW WWE TVH TVS Modern Trade
Huawei____________
ZTE_______________
2. Please rank the following CDMA brand in terms of best consumer demand for the brands. LG____, Samsung___, ZTE_____, Huwaei_____, Spice_____, Micromax_____, Haier_____ Others ________ 3. What are the key Challenges that you are facing in CDMA?
4. What are the key motivators for you to sell particular CDMA handsets? Also Rank the order of importance? Operator Handsets Open Handsets
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5. What are the key factors that motivate a consumer to buy a particular brand of CDMA Handset? Also Rank the order of importance.
6. What are the key factors looked in handsets by a consumer who upgrades in CDMA? 7. What are the key factor that consumer consider while making a first time handset purchase from an operator.
8. Please rank the brands on the below parameters Brand LG Samsung Huwaei ZTE Spice Haier Other Consumer pull ________ ________ ________ ________ ________ ________ After sales service ___________ ___________ ___________ ___________ ___________ ___________ Distribution ___________ ___________ ___________ ___________ ___________ ___________
9. What are the key steps any brand should take to increase the sales of CDMA handsets from your shop?
Bibliography
www.samsung.com www.themobilestore.com www.mobileindia.com
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www.spssinc.com www.compareindia.com Philip Kotler Marketing Management Naresh Malhotra Marketing Research Tull & Hokins Marketing Research.
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