Professional Documents
Culture Documents
Zamir Final Project
Zamir Final Project
MARKET
March 2015
DECLARATION
CERTIFICATE
(Ankita Shrivastava)
Project Guide
(Saher B. Kapdi)
Director
Date: 16 / 03 / 2015
Place: Navi Mumbai
ACKNOWLEDGEMENT
With immense pleasure I am presenting CONSUMER BEHAVIOUR TOWARDS
SMARTPHONE INDUSTRY IN INDIAN MARKET Project report as part of the curriculum
of Master of Management Studies. I wish to thank all the people who gave us unending
support.
I express my profound thanks to Director and Prof. Ankita srivastava, project guide and all those
who have indirectly guided and helped us in preparation of this project.
I also like to extend our gratitude to all staff and our colleagues of College of Management, who
provided moral support, a conductive work environment and the much-needed inspiration to
conclude the project in time and a special thanks to my parents who are integral part of the
project.
Thanking you
INDEX
SR NO.
TITLE
PAGE NO.
1.
Executive Summary
2.
Introduction
Industry Overview
3.
SWOT Analysis
20
4.
Literature Review
21
5.
Research Methodology
25
Topic of Research
Objective of the study
Scope of the study
Method of Data Collection
Sampling Method
Research Instrument
6.
30
7.
Conclusion
50
8.
Bibliography
51
9.
Annexure
52
Executive Summary
1. Executive Summary
The behavior of consumers toward smart phone is increasingly as a focus of marketing research.
In particular, consumers behavior in smart phone industry, from adoption motivation to postusage behavior it has become a major focus of research in the field of marketing, especially
within consumer behaviour. The results of the research confirm that regulatory focus has an
influence on consumer behaviour towards smartphone purchase decision by affecting their
perception, motivation and lifestyle. As, India is one of the fastest growing economies in the
world, the smartphone industry in India is growing very fast and for consumers in market
smartphone has become essential parts of personal and business life. There is a continuous
increase in disposable income; there has been a major shift in the attitude and aspirations of the
consumers. This research is to analyse the external and internal factors which are influencing in a
consumer in purchasing a smartphone. The research also focuses on consumer attitude for
smartphone and influence of brand on consumers in buying decisions. The recent growth of
smartphone usage is an observable fact that crosses all age and gender boundaries. Hence, this
research explores through quantitative analysis some of the key factors believed to affect
consumers attitudes and behaviours towards smartphone purchase.
2. Introduction
The increasing trend in Smartphone among the people is the main reason that has amplified the
interest to research on the topic. Peoples obsession about the Smartphone has been increasing
rapidly. The aim of this research is therefore to find out consumer behaviour of Smartphone
buyers in Indian Market. The research is trying to find out that why do people desire to purchase
a smartphone, what influence people in purchasing a smartphone and what motivate them in
making the purchase decision.
Different consumers have different characteristics in their life that also influences their buying
behaviour. Social factors such as family, groups, roles and status) and personal factors (such as
age, occupation, lifestyle, personality and self-concept) are those characteristics that could
influence the buyer behaviour in making final decision.
Nowadays cheaper smart phones are also available in the market. But why people buy expensive
smartphones? Price, quality, brand, country of origin, marketing, sales, word of mouth etc. could
be several factors that a consumer may think before buying a Smartphone. How much does brand
of smartphone affect the buying decision of a customer? As there are various types of
smartphones available in market with varying price; what is the difference between them? And
how they impact the customer buying decision?
This research also aims on the marketing strategy of the smartphone companies to influence the
buying behaviour of customer. These strategies include Promotional campaigns, Tie-Ups with
network carrier etc.
Vegas, and was launched into the market the following year by a company called BellSouth
(Schneidawind, 1992).
demographic and rapidly expanding economy, the countrys smartphone numbers are poised to
expand at a much faster pace as compared to rest of the world. 11
Price remains the main criteria when buying any consumer electronic device in India, including a
mobile device. The Indian smartphone phone market mainly depends upon the price, features,
stability and style. Most of the Indians buying smartphone are middle income groups and above.
As a developing economy, India is a most suitable place for investment. Strong marketing
strategies, established retail outlets, customer satisfaction are the tools to succeed in any market.
Indian smartphone market is expected to grow as the 3G network coverage is increasing and
there is increase in demand of high in smartphones in 2014. Smartphone manufacturer are
concentrated on building application stores and improving service quality to offer an attractive
value proposition and strengthen their market position. The Indian market was ruled by Nokia
phones (3Q2013, 2013). Other brands like Motorola, Samsung, Sony and LG failed to compete
with Nokia phones as Nokia phones are more easy to use as compared to the cell phones of other
companies. Now, Samsung is the main player in Indian smartphone market with 1/3rd of Indian
market share. Indian brands like Micromax and Karbonn are at the second and third position in
market share with 21% and 10%. Global companies like Sony, Nokia and Apple are ranked
fourth, fifth and sixth (3Q2013, 2013).
11
Here are the top five Smartphone brands in India as per IDC:
India now has the fastest-growing smartphone market in the world, with growth outpacing that of
other emerging markets like China and Brazil. According to market research firm IDC, the
country saw 15.06 million smartphones and 67.83 million mobile phones change hands in the
last quarter itself.
1. Samsung
South Korean manufacturer Samsung continues to
enjoy the lions share of the Indian smartphone
market, shipping over 5.7 million units in the last
quarter.
According
to
IDC,
low-end
Galaxy
12
2. Micromax
Micromax took the second spot in the list of biggest smartphone makers of India with 13%
market share and shipment of 2.4 million units.
Entry-level smartphones under its Bolt range, along
with the Canvas series, accounted for the major
share
of
the
volume.
3. Karbonn
13
Karbonn, shipping 1.5 million units, was the third biggest smartphone maker in India, accounting
for 10% of the market. The biggest hits for the company were models like A1+ and A51.
In the mobile phone market, it was behind Nokia and occupied the fourth spot, with shipments of
6.7 million units and 10% market share.
4. Sony
14
Japanese manufacturer Sony is on the fourth position in the list of Indias biggest smartphone
makers. It shipped 0.75 million units and took 5% of the market; its highest selling models were
mid-range smartphones Xperia C and Xperia M.
However, Sony could not find a place in the list of top five mobile phone makers (which includes
both feature phones and smartphones sold by a company) in the country.
5. Lava
Lava, which owns the brand Xolo, is on the fifth position in the Indian smartphone market. With
Xolo A500S, Iris 402S and Iris 349 as its top selling models, the company took 4.7% market
share and sold 0.70 million smartphones.
It is on the fifth spot in the list of Indias top mobile phone makers, shipping 4.06 million units
and taking 6% market share.
15
HTC:
Taiwan-based mobile handset manufacturer HTC is expanding its reach in India, as it eyes 10 per
cent market share by 2015. Faisal Siddiqui, vice-president and country head, India HTC, said
India is among the top five fastest growing regions for the company, and he plans to put India
among the top three countries for HTC.
16
Apple:
Microsoft Mobile:
17
2. Apple iPhone 6
18
9. Samsung Galaxy S5
10. Blackberry Passport
almost up to 65% are using their smart phones to read news feeds, post status updates, read &
reply to messages and post photos. This shows that now people are leaving PCs and moving
towards Smartphones.
Studies have investigated the demographic characteristics of smartphone users which are Males
53%. They are more likely to have a smartphone than females which is only 47%
(Entner, 2010). The smartphone user tends to be younger than the general cell phone audience.
Smartphone features like, text to speech, GPS and social Websites are helping people to easily
remain integrated with society. Using these services and many more features, People can easily
communicate to their needs, seek assistance from others and remain connected to society.
20
3. SWOT ANALYSIS
STRENGTHS
1. Large customer base
2. Higher margins
3. Hi-end technology No compromise!
WEAKNESS
1. Low manufacturing base
2. High focus on R&D
OPPORTUNITIES
1. Rising 3G uptake
2. Rising data usage
3. Growing rural numbers
4. Rising disposable income
THREATS
1. Competition
2. The Chinese presence in Indian market
3. Virus attacks
21
Literature Review
22
4. Literature Review
3.1 Introduction
In this chapter provide a review and synthesis of the literature, it explain the consumer decision
making process with the model which is used as the research framework. This explains all the
external and internal factors which influence consumer in decision making process. This chapter
also includes literature for smartphone and its characteristics. It explains the factors which are
affecting consumer in purchasing a smartphone. This chapter also explain the importance of band
influence on consumer in smartphone industry. This chapter use a consumer decision making
model to explain the consumer buying behaviour for smartphone industry in India. Literature
review contents are linked with research questions and research objective of this research.
23
studies have investigated this issue and many models have been developed accordingly. Models
aim to depict the purchase decision-making process and its influential factors.
Consumer behaviour is a wide range of study about the decision making processes that a
consumer make at the time of making a purchase. According to Kotler (2009) Consumer
behaviour is the study of how individuals or groups buy, use and dispose of goods, services,
ideas or experience to satisfy their needs or wants. In the early stages, consumer behaviour 17
which he assumes to be the best for him. After purchasing the product, the buyer will take further
action to the marketer based on his satisfaction or dissatisfaction (Kotler, 2009). For purchasing a
smartphone a buyer goes to these five stages. These stages help the buyer to evaluate his/her
needs, choose the best smartphone according to his/ her need and budget and purchase it.
25
Research Methodology
26
5. Research Methodology
This chapter identifies how the research was done, and its aim is to describe the research strategy
and methods applied in this study, and to discuss their suitability within the context of various
research philosophies, models and methodological approaches. This includes a general overview
of the overall research philosophy employed in carrying out the research, justification of the
chosen approach, provision of operational construct definitions and specification of their
indicators, and a discussion of the data collection and analysis methods. It is useful to state at this
point that due to the confirmatory nature of the research objectives, the questions that emerged in
chapter two and previous research foundations reported in the literature, the approach used in
this research is primarily informed by a positivist philosophy based on the deductive approach of
enquiry. In line with general practice within research of a management nature, some elements of
inductive-based qualitative techniques are incorporated in achieving the objectives of this
research; hence, it is important to evaluate the range of research approaches and possible
methodologies that were at the researchers disposal, in order to show how these were considered
and to justify the methodological choices made.
Type of research
Descriptive research: they are well structured. It can be complex a high degree of
scientific skill on the part of the demanding a high degree of scientific skill on the
part of the researcher. It can be taken in certain circumstances. When the
researcher is interested in knowing the characteristics of certain groups such as
gender, profession, etc. a descriptive study may be necessary. in this I did
descriptive research because I want to know the consumer buying behavior and
preferences towards Smartphone
27
28
29
4.7 Limitation
While conduction the research time management can be a limitation as this was an analysis of
the smartphone market. It is a vast sector and the Indian market is very huge so, in order to
complete the research on schedule time management was very important. The time taken to
conduct the paper including preparation, research, analysing findings and drawing conclusions
was excessive.
The questioner part was also challenging as selecting a group of 150 people with different
background was essential for the research and analysing the market from different viewpoints. It
was felt that the sample size was needed in order to get a broad understanding of the area would
be 150, if this was not achieved the sample may become insufficient.
There was some difficulties because of the language barrier but as most of the Indian people
understand and speaks English language that was not that difficult.
30
31
Count of Gender
Female
30
Male
120
Grand Total
150
Pie Chart:-
32
Total
20%
Female
Male
80%
Analysis & Interpretation: - Out of 150 samples 80% are male followed by 20%
of female using smart phones.
Age
Age
Count of Age
15-20
20-25
84
25-30
50
30-35
11
Grand Total
150
33
Total
11
50
84
15-20
20-25
25-30
30-35
Educational Level
Educational Level
Count of Educational
Under graduate
Level
15
Graduate
72
Post Graduate
63
34
Grand Total
150
Total
15
63
72
Unde r Graduate
Graduate
Post Graduate
Income
Income
Count of Income
35
<20000
43
>40000
18
20000-40000
38
No Income
Grand Total
51
150
Total
43
51
18
38
<20000
>40000
20000-40000
No Income
Analysis & interpretation: - 34% of smartphone user are having no income & 29%
are of <20000 income group followed by 20000-40000 income group.
Reasons
Count of Question 1
52
Multitasking
59
24
Status symbol
14
Watching sports
Grand Total
1
150
Total
14
1
52
24
59
High te ch fe ature s
Multitasking
Re quire d for work
Status symbol
Watching sports
Count of Question 1
37
Apple
31
Blackberry
11
HTC
17
i ball
Nokia
Samsung
80
Sony ericsson
Grand Total
150
Pie ChartTotal
31
11
80
61
17
Apple
Blackbe rry
HTC
i ball
Nokia
Samsung
Sony e ricsson
Analysis & interpretation: - 53% people most prefer Samsung followed by 21%
prefer apple & 11% prefer HTC
3. Please tick as per your preferences for features you were looking while buying a
smart phones (1- Least Preferred & 5- Most preferred)
38
Least
Somewhat
Neutral
Preferred
Most
Preferred
Preferred
Touch
16
15
65
50
Screen
Wi-Fi
Apps
GPS
0
4
3
0
11
12
10
18
25
25
31
60
115
86
50
Preferred
140
115
120
100
86
80
65
60
40
20
0
16
4
1112
4 3
0
25
15 18
10
60
31
25
50
50
Touch Screen
Wi-Fi
Apps
GPS
Analysis & Interpretation:- about 115 people preferred wifi function the most
followed by apps preferred by 86 people whereas the least preferred function was
GPS.
4. How do you seek information of different smart phones in the market?
Medium
Count of Question 4
39
In-store display
Newspapers/Magazines
12
Official website/Internet
84
TV advertising
22
Word of mouth
Grand Total
24
150
Pie chartTotal
24
12
22
84
In-store display
Ne wspape rs/Magazines
Official we bsite /Inte rne t
TV adve rtising
Word of mouth
Count of Question 5
40
57
93
Grand Total
150
Pie ChartTotal
57
93
Analysis & interpretation: 62% users search option within a particular brand in
future purchase & only 38% users go for different brand.
6. If in case you will buy a smart phone in future you will go for which brand?
41
Brands
Count of Question 6
Apple
54
Blackberry
HTC
12
Samsung
47
Sony Ericsson
20
29
Grand Total
150
Pie chartTotal
29
54
20
47
12
Apple
Blackbe rry
HTC
Samsung
Sony Ericsson
Cant Say now
Analysis & interpretation: - In future purchase 36% of the people go for apple and
31% go for Samsung.
7. Which type of advertising do you feel is most effective for smart phones?
42
Medium
Count of Question 7
In-store display
16
Newspapers/magazines
Official website/internet
55
TV advertising
54
Word mouth
16
Grand Total
150
Pie ChartTotal
16
54
16
9
55
In-store display
Ne wspape rs/magazine s
Official we bsite /inte rne t
TV adve rtising
Word mouth
Analysis & interpretation: - 36% users told that official website/internet & 36%
told that TV advertising most effective medium for advertising
43