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THE COMPANY: MOTOROLA ELECTRONICS INDIA LTD. RESEARCH OBJECTIVE: TO STUDY THE MOBILE MARKET CONDITION IN CONTEXT TO POSITIN OF MOBILE SALES, BRANDS, PURCHASING FACTORS, FEATURES & AFTER SALE SERVICE OF VARIOUS BRANDS.A SURVEY OF 200 DEALERS ACROSS DELHI IN THE FORM OF QUESTIONNAIRE WAS DONE. COMPETITORS: THE MAIN COMPETITORS OF MOTOROLA WITH
REFERENCE TO MOBILES ARE NOKIA, SAMSUNG, SONY ERICSSON, LG & PANASONIC ALONG WITH CERTAIN NEW ENTRANTS. CONCLUSIONS: WERE DERIVED FROM RESULTS OF THE
SURVEY.THERE ARE CERTAIN FACTS, WHICH ARE ARRIVED AT AFTER ANALYSING THE DATA.THE REPORT GIVES A DETAILED ACCOUNT OF SUCH FACTS. RECOMMENDATIONS: OFFER SOME SUGGESTIONS THAT ARE BASED ON THE SHORTCOMINGS OF THE COMPANY, WHICH THE COMPANY CAN LOOK UPON AT. BIBLIOGRAPHY: PROVIDES A LIST OF SOURCES FROM WHERE THE VARIOUS FACTS & INFORMATION WERE COLLECTED OR GATHERED.
HISTORY OF CELLULAR TELEPHONY IN INDIA
Cellular Telephony The technology that gives a person the power to communicate anytime, anywhere has spawned an entire industry in mobile telecommunication. Mobile telephones have become an integral part of the growth, success and efficiency of any business / economy. The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communications. The GSM Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications. Starting off primarily as a European standard, the Group Special Mobile as it was then called, soon came to represent the Global System for Mobile Communications as it achieved the status of a world-wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the global digital wireless market. The Indian Government when considering the introduction of cellular services into the country, made a landmark decision to introduce the GSM standard, leapfrogging obsolescent technologies / standards. Although cellular licenses were made technology neutral in September 2005, all the private operators are presently offering only GSM based mobile services. The new licensees for the 4th cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer their mobile services. Cellular Industry in India The Government of India recognizes that the provision of a world-class telecommunications infrastructure and information is the key to rapid economic and
social development of the country. It is critical not only for the development of the Information Technology industry, but also has widespread ramifications on the entire economy of the country. It is also anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. Accordingly, it is of vital importance to the country that there be a comprehensive and forward looking telecommunications policy which creates an enabling framework for development of this industry.
New Telecom Policy 2005 Telecommunications is now universally recognized as one of the prime movers of the modern economy; hence it's vital importance for a developing country like India. The availability of adequate infrastructure facilities is critical for acceleration of the economic development of any country. In fact international studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP. Accordingly, the Government of India has accorded the highest priority to investment and development of the telecommunications sector. Telecom requires very heavy investment and it was not possible for the Indian Government to organize public funding of this sector on such a massive scale. In fact the national telecom Policy 1994, estimated a resource gap of Rs. 23,000 crores to meet the telecom targets of the eighth five-year plan of the Government of India (1992-97). It was for this reason to bridge the resource gap between government funding and the total projected funds requirement and to provide the additional resources to achieve the nation's telecom targets that the telecommunications sector was
liberalized in 1992 and the Government invited private sector participation in telecommunications. Cellular mobile services were one of the first areas to be opened up to private competition. The whole country was divided into the 4 metropolitan cities of and 19 telecom circles, which were roughly analogous with the States of India. Cellular Licenses were awarded to the private sector - first in the metropolitan cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995. The first metro cellular network started operating in August 1995 in Calcutta.
HISTORY OF MOTOROLA
Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was adopted in 1947, but the word had been used as a trademark since the 1930s. Founder Paul Galvin came up with the name Motorola when his company started manufacturing car radios. A number of early companies making phonographs, radios, and other audio equipment in the early 20th century used the suffix "-ola," the most famous being Victrola; RCA made a "radiola"; there was also a company that made jukeboxes called Rock-Ola, and a film editing device called a Moviola. The Motorola prefix "motor-" was chosen because the company's initial focus was in automotive electronics. Most of Motorola's products have been radio-related, starting with a battery eliminator for radios, through the first walkie-talkie in the world, defense electronics, cellular infrastructure equipment, and mobile phone manufacturing. The company was also strong in semiconductor technology, including integrated circuits used in computers. Motorola has been the main supplier for the microprocessors used in Commodore Amiga, Apple Macintosh and Power Macintosh personal computers. The chip used in the latter computers, the PowerPC family, was developed with IBM and in a partnership with Apple (known as the AIM alliance). Motorola also has a diverse line of communication products, including satellite systems, digital cable boxes and modems. On October 6, 2003, Motorola announced that it would spin off its semiconductor product sector into a separate company called Freescale Semiconductor, Inc.. The new company began trading on the New York Stock Exchange on July 16th of the following year. See also: List of Motorola products (including Freescale's semiconductors) The Six Sigma quality system was developed at Motorola even though it became best known through its use by General Electric. It was created by engineer Bill Smith, under the direction of Bob Galvin (son of founder Paul Galvin) when he was
Motorola has recently been regaining market share in the cellular-phone business from Nokia. The company also unveiled the first ever iTunes phone. 6 . with regard to taking over the number one spot from Nokia. the Motorola ROKR E1. Motorola sold its Automotive division to Continental in April 2006 and is proceeding with a policy of streamlining its cell phone business. and the Motorola SLVR in January 2006. Motorola University is one of many places that provides Six Sigma training. Recently.000. in September 2005. Motorola has recently announced its new iRadio music service as a potential substitute for iTunes compatibility. the number of employees working for Motorola has gone from just over 150.running the company. Samsung and others due to stylish new cellular phone designs like the Motorola RAZR V3. Due to recent layoffs and the spinoff of Freescale Semiconductor. although many credit former CEO Chris Galvin with taking the first comprehensive steps.000 to approximately 66. a massive turnaround plan has been executed successfully by CEO Edward Zander.
and sale of mobility products worldwide. application platforms and third-party switching for CDMA. iDEN. including radio base stations. This segment also offers cellular networks. Inc. distributors. In addition. hybrid fiber coaxial network transmission systems. It operates in four segments: Mobile Devices. Motorola was founded in 1928 and is headquartered in Schaumburg. engages in the design. The Connected Home Solutions segment offers various broadband products. subscriber modules. mobility soft switching. and embedded communications computing platforms. The company offers its products through direct sale. digital satellite program distribution systems. The Mobile Devices segment offers wireless handsets with related software and accessory products. and video communication products. business wireless devices. This segment develops its products using GSM. manufacture. it provides optical line terminals and optical network terminals for passive optical networks. networks. CDMA. high speed data products. and electronics and telematics systems for automobile manufacturers. wireless broadband systems. marketing. direct-to-home satellite networks and private networks for business communications. and Connected Home Solutions. and retailers. Illinois 7 . dealers. The Government and Enterprise Mobility Solutions segment provides wireless communications systems for government and public safety markets. The Networks segment provides cellular infrastructure systems. and backhaul modules for wireless broadband systems. and advanced TCA and micro TCA communications servers. and UMTS technologies. Networks. iDEN and 3G technologies. fiber-to-the-premise and fiber-to-the-node transmission systems.BUSINESS SUMMARY Motorola. associated software and services. access points. base site controllers. and applications for enterprise organizations. Government and Enterprise Mobility Solutions. GSM.
Factors which help in increasing the sale of mobile phones. The Secondary Objectives of this study were to identify:• • • Various Sources from which mobiles are purchased. • • • Brand awareness of MOTOROLA mobile phones in the market. Factors that influence decision making in purchasing a mobile phone. 8 . Major features which a customer looks for in a mobile before making a purchase.STATEMENT OF OBJECTIVES The Primary Objective was to study the dealer perception & buying behavior of customers towards various mobile brands with special reference to “MOTOROLA ”. Efficiency of after sale service of various brands.
The extent of this survey was limited to the city of New Delhi only. 3.RESEARCH METHODOLOGY 1. RESEARCH INSTRUMENT:- Visited the dealers across Delhi & gathered information required as per the questionnaire.com & google. Final ranks were obtained by giving weightage to individual ranks possessed by the dealers to make the research more reliable. 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 objective. product range book of the company & various internet sites such as Motorola ezbuy. SAMPLING TECHNIQUE: • For the purpose of the survey a sample size of 200 dealers was taken.com have been used. • Secondary data sources like catalogue of the company. 2. 9 . For employing a strong base to the research I tried to enquire the positions of various Mobile brands & how satisfied the dealers were with them if they were already selling them.
AREA OF STUDY: • The study was conducted in South Delhi Market in the following areas. ▪ Safdarjung ▪ Green Park ▪ Hauz Khaz ▪ Yusuf Sarai ▪ Gulmohar Park ▪ Panchsheel ▪ Malva Nagar ▪ Shivalik ▪ Saket ▪ Vasant Kunj ▪ Vasant Vihar ▪ Moti Bagh ▪ Nanakpura ▪ Khanpur ▪ Sheikh Sarai ▪ Madangir ▪ Tughlakabad ▪ Okhla ▪ Lajpat Nagar ▪ Defence Colony ▪ South Extension ▪ Amar Colony ▪ East of Kailash ▪ Greater Kailash ▪ Kailash Colony ▪ Nehru Place ▪ Kalkaji ▪ CR Park ▪ Alaknanda ▪ Govindpuri ▪ New Friends Colony ▪ Maharani Bagh ▪ Ashram ▪ Jangpura ▪ Bhogal ▪ Sarojini Nagar 10 .4.
▪ Chanakyapuri ▪ Bhikaji Cama Place ▪ R.K Puram ▪ Sarita Vihar ▪ Mahipalpur ▪ Kotla Mubarakpur 11 .
and the president officially announced the TRAI ordinance on 25 January 2003. In March 2005. by 2005 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. Prior to the creation of TRAI. For the auction. The first cellular service was provided by. it was stipulated that no firm can win in more than one metro." with the "A" circle being the most attractive and "C" being the least attractive. In 1996. The circles are further classified under "A. Mumbai. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators. The government decided to set up TRAI to separate regulatory functions from policy formulation. licensing and telecom operations. these functions were the sole responsibility of the DOT. Chennai and Kolkatta) and 20 circles. Key to achieving these goals was a world-class telecom infrastructure. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. Modi Telstra in Kolkatta in August 1995. the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders.INDUSTRY PROFILE In the early 1990s. Under this new policy. which roughly correspond to the states in India. In India. the telecom service areas are divided into four metros (New Delhi. 12 ." "B" and "C. three circles or both. The regulatory body at that time — the Department of Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government. a new telecom policy was put in place (New Telecom Policy 2005). the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha. As a result. diverting funds away from network development and enhancements. while West Bengal and Assam had only one bidder each.
near Delhi. The company had till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 2003 . with an investment of Rs 500 Crores. The trend of beating industry norms started with the fastest ever-nationwide launch by MOTOROLA in a period of 4 and ýý months with the commencement of operations in May 2003. The year 2001 witnessed MOTOROLA becoming the fastest growing company in the consumer electronics. In Colour Televisions having set the sales target of one million units of Color Televisions for 2002. home appliances and computer peripherals industry. During the year 2001. MOTOROLA set up a state-of-the art manufacturing facility at Greater Noida. 13 . The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Ecofriendly units amongst all MOTOROLA manufacturing plants in the world. 2700 Crores this year and clock a turnover of Rs. was established in January. Air Conditioners.COMPANY PROFILE MOTOROLA Electronics a wholly owned subsidiary of MOTOROLA Electronics. Having achieved this milestone. MOTOROLA has emerged as the leader in Colour Televisions. Frost-Free Refrigerators and Microwaves Ovens. 2003 after clearance from the Foreign Investment Promotion Board (FIPB). 3000 Crores. This year. Semi Automatic Washing Machines. making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and home appliances industry. in 2004. MOTOROLA has already achieved the one million mark in the month ahead of its target. MOTOROLA is poised to surpass its turnover target of Rs. MOTOROLA also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. MOTOROLA achieved another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year.
Having achieved a milestone of selling 6. MOTOROLA Electronics is continually providing superior technology products & value for money to over 50 lakh households in India. Managing Director. 3 FF Ref 19% No.2 (No1 in 300Ltr) DC Ref 9% No 5 Air Conditioners 26% No 1 Fully-Automatic Washing machines 11% No1 Semi-Automatic Washing machines 23% No 1 in 6 kg and above Microwave Ovens 32% No1 COLOUR TELEVISIONS: MOTOROLA Electronics has targeted to become India’s single largest value CTV brand in India in the year 2002.MOTOROLA Electronics India is the fastest growing company in the consumer electronics. home appliances and computer peripherals industry today. We have accordingly reinforced our sales and distribution network through the concept of area offices to reach out more Indian consumers in semi urban and rural India. "I am extremely pleased with our performance in 2001 as we have been able to sustain growth during a year of slowdown in the consumer electronics and home appliances industry. "Our growth record has led us to expand manufacturing presence in India. MOTOROLA Electronics said. K.5 lakh 14 . Mr.R." He added. " SALES & MARKET SHARE: Market Share Market Ranking CTVs 27% No. Kim.
CTV units in the year 2001. 15 . It is targeting to sell 8. MOTOROLA has chalked out a strategy to achieve this vision of becoming the single largest CTV brand in 2002.5 lakh CTV Units in the current year.. thereby increasing its market share from 12% in 2001 to 15% in 2002.
This is first ever one lakh mark in a calendar year in the Air conditioner (Windows and Splits) category in the Indian home appliances industry.000 Air Conditioners (Windows and Splits) in the year 2001. According to the stages of the product life cycle. Marketing objectives and strategies for the introductory and the growth stage are summarized. MOTOROLA is in the growth stage considering the company’s success over the past 3 years. The company is also looking at 2002 very ambitiously with target sales of 1.00.5 lakh units this year. 16 . MOTOROLA also trying to increase its market share from the current 26% in 2001 to 31% in 2002.AIR CONDITIONERS MOTOROLA Electronics has achieved a record sale of 1.
000 (458.000 4.Introduction Marketing objectives Growth To offer technological superior Preparing for “Digitally products in the market yours” image for the now millennium Strategies Product Offering the market Price about in total 23 Launching its product ranges to the mass digitally products to the premium end of superior products for all Initially prices high to cater the Catering premium end prized market via its diverse Distribution Promotion Selective Heavy advertising to Intensive create More into corporate awareness about its products advertising i.000 8.000 27.000 18.826.000 3.497.859.000 3.060.101.680.000 17 .058.000 25.073.323.000) (15.000 4.957.000 31.320.000 3. promotion the brand INCOME STATEMENT View: Annual Data | Quarterly Data PERIOD ENDING Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring All numbers in thousands 31-Dec-05 31-Dec-04 31-Dec-03 36.000 3.000) 86.e.771.000 20.777.843.000 10.066.000 11.
000 856.000 325.000 1.696.000 - 893.000 4.000 18 .000 893.532.532.252.000 $1.000 1.000 2.000 (21.000 647.084.000) 7.000 199.000 400.000 - $4.845.520.578.000 3.921.000 - 1.000 Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 4.000 1.000 1.293.940.000) - (659.000 1.149.599.000 2.132.000 3.578.000 3.873.000 $893.000 6.000 6.061.451.000) - - Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 4.Others Total Operating Expenses - - (57.191.000 319.
907.000 717.000 3.000 296.000 Total Assets 35.856.000 6.746.271.331.000 7.000 985.098.000 3.416.792.000 332.000 3.000 2.000 8.000 1.BALANCE SHEET Assets Current Assets 10.768.164.000 212.000 2.000 Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges 1.869.877.000 184.353.546.000 1.000 152.00 0 Net Receivables Inventory Other Current Assets 9.011.795.000 Cash And Cash Equi valen ts3.000 32.000 30.556.332.000 9.000 Liabilities Current Liabilities Acco Short/Current Long Term Debt unts Paya 448.000 21.522.349.000 Total Current Assets Long Term Investments27.000 794.082.889.033.245.000 Short Term Investments 11.000 19 .000 2.283.000 2.000 704.000 475.000 5.736.649.000 896.000 6.000 1.000 2.537.000 2.000 139.7 74.000 1.349.000 17.114.000 1.
000 Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill 9.423.000) 207.691.321.653.000 7.000 $11.673.000 - Long Term Debt12.000 2.103.000 2.362.722.897.000 1.000 4.689.000 $11.000 13.806.573.558.Misc Stocks Options Warrants 7.433.000 19.000 Total Liabilities 18.000 10.000 12.409.000 20 .000) .017.Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity 7.578.161.000 (55. 000 Other Current Liabilities 387.000 2.000 3.000 7.815.331.000 Total Stockholder Equity 16.000 Net Tangible Assets $14.000 Total Current Liabilities 3.407.343.000 4.089.682.000 4.ble11 .620.000 17.976.488.508.836.000 2.000 (1.000 5.000 Stockholders' Equity Redeemable Preferred Stock.
MOTOROLA GSM HANDSET PROFILE SMS (SHORT MESSAGING SERVICE) VOICE DIALING BLUE COLOR DISPLAY 3 GAMES GPRS (GENERAL PACKET RADIO SERVICE) 21 .
.2. GPRS CLASS 10.WAP ( WIRELESS APPLICATION PROTOCOL) POLYPHONIC RINGTONES VOICE DIALING 65000 COLOR LCD POLYPHONIC RINGTONE MMS (MULTIMIDIA MESSAGING SERVICE) LMS (LONG MESSAGING SERVICE) STYLISH DESIGN VOICE DIAL MELODY COMPOSER CONFERENCE CALLS EMBEDDED JAVA TECH.WAP 1.1 ENABLED GAMES 22 .
EXTERNAL CAPSULE DISPLAY 65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES MMS (MULTIMIDIA MESSAGING SERVICE) MULTI PARITY CALL FACILITY GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) EMBEDDED JAVA IRDA (INFRARED DATA ASSOCIATION) VOICE DIAL 24 .
65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES MMS (MULTIMEDIA MESSAGING SERVICE) GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) IR IRDA IRDA (INFRARED DATA ASSOCIATION) DUAL COLOR DISPLAY 25 .
65000 COLOR LCD DISPLAY POLYPHONIC RINGTONES MMS (MULTIMEDIA MESSAGING SERVICE) GPRS (GENERAL PACKET RADIO SERVICE) WAP (WIRELESS APPLICATION PROTOCOL) IR IRDA (INFRARED DATA ASSOCIATION) SWIVEL CLAMSHELL(270 DEGREES) SLIDE MOUNTED VGA CAMERA WITH WITH IN BUILT FLASH 9 SE 9SEQ UENTIAL STILL SHOTS & COLOR 26 .
So we cannot say that the same response will exist throughout India. • Human error during recording. • The scope of the project is limited to the city of Delhi only.LIMITATIONS • A small sample size of 200 dealers was considered due to time & resource constraints. • Some of the dealers were not co-operative in giving correct information even if they were selling various mobile brands. tabulation & printing error could be present. 27 .
..Dealer In case of MOTOROLA the Company has been following a very systematic channel approach whereby only the first two Tiers are involved. After development of a product.National Distributor Tier 2 . Distribution of products constitutes an important element of marketing –mix of a firm.National distributor --------.Local Distributor Tier 3 – Local Distributor -----------.National Distributor Tier 2 – National Distributor ----------. In my survey I found that almost 85% of the dealers purchased their material from local distributors and only 15% of them purchased from the company.i.DATA ANALYSIS AND INTERPRETATION SOURCES FROM WHICH MATERIAL IS PURCHASED Most of the dealers who were surveyed said that they preferred to purchase their material from a distributor. The company through this practice of its is not only able to increase its revenue but is also able to increase its margins better. a three tier system is followed whereby: Tier 1 – Company ...e Tier 1 – Company -----------. In the Telecom Industry there are usually National & City distributors. the marketing manager has to decide channels or routes through which the product will flow.Local Distributor MOTOROLA’s billing of goods are directly billed to the Local Distributor which not only helps in better interaction with them but also gives the company a more Microscopic focus of all the happenings along with the Accountability of goods sold. 28 .
1 selling Handset in South Delhi followed by Samsung. Motorola and Sony Ericsson. The biggest advantage that has worked in Nokia’s favour is its marketing strategy. which focuses more on their state of the art Handsets. 29 . Today almost all mobile companies have followed suit and come out with their own in-built camera mobiles. Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology and its loyalty towards the Indian customer which certainly makes it the most superior brand. Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed agreed on this statement.Alcatel etc will have to justify their launch in the long run.MAJOR BRANDS THAT ARE DEALT BY DEALERS Most of the dealers who were surveyed had almost all the Brands of Mobile Handsets with them and the final analysis upon which I arrived at was that Nokia is the No. not only is the after sale service excellent but also the quality and pricing of products is excellent. They were the first company to come with a mobile with an in-built camera in it and they surely knew how to sell their product. In such a scenario not only the existing companies but also the new entrants such as MOTOROLA .BenQ.
RANKING ATTRIBUTES IN A MOBILE 180 160 140 120 100 80 60 40 20 0 1 2 3 4 5 NO. OF RESPONDENTS RANKS PRICE BRAND NAME FEATURES THE GRAPH ABOVE DEPICTS THAT THE FIRST RANK HAS BEEN OBTAINED BY BRAND NAME WHICH GOES ON TO PROVE THAT MANY PEOPLE IN SOUTH DELHI ARE ‘BRAND CONSCIOUS’. WHICH IS FOLLOWED BY A CONSIDERABLE PERCENTAGE OF PEOPLE WHO ARE ‘PRICE CONSCIOUS’ WHILE PURCHASING A MOBILE PHONE. QUALITY AFTER SALE SERVICE 30 .
Camera phones accounted for at least 10% respondents in the survey conducted. and vice versa.it is not only possible to send your multimedia messages from one phone to another.MAJOR FEATURES THAT A CUSTOMER LOOKS FOR IN A MOBILE The Market is flooded with all sorts of mobile brands. each trying to showcase and push forward its own particular brand with umpteen number of features. These phones serve the twin service of mobile and a camera. One can not only click but also store photos and even send it to their near and dear ones. mobile phones with in-built camera. and it is due to these very features only that becomes the purchasing factor for the customer. Most of the color phones boast of 65000 color display which makes not only the resolution but also the picture quality treat to the eyes. 31 . but also from phone to email.MMS(Multimedia Messaging Service). Color screen phones are in major demand by the public which accounts for at least 50% in the survey conducted. both for private and corporate use. This feature dramatically increases the possibilities of mobile communication. 4. The customer these days is quite educated and knows about the products quite well and therefore likes to keep himself abreast with the latest technology available in the market. Some of the most common features that a customer demands these days are: 1. 2.Tri-Band – A tri-band facility is useful for people who are constantly going abroad as a tri-band enabled handset let’s one access the network of another country also and also keeps you connected with people back home. Mobile these days are being added with new features every second day to lure the customer. suiting his pocket need and requirement.Color Screen – Color Screen phones are the latest and the most wanted trend in the market these days as these phones boast of a High Color Resolution Display so that the customer can enjoy in his/her phone an exhilarating melange of colors.With MMS. 3.Integrated Camera – The latest in-thing.
Companies often promise of talktime of 4-6 hrs on various handsets. 9.even when you are mobile. weather reports and flight timings etc. 8.5. Polyphonic ring tones phones are in major demand by the customers and accounted to nearly 20% respondents according to the survey conducted.Polyphonic Ring Tones – A polyphonic ring tone is the next generation of ringtones that has better sound quality than traditional monotone ringtones. 6. A mobile functions on a battery and a cheap and sub-standard battery always makes the customer vary of the companies products and services.Polyphonic ring tones sound great and truly make your phone unique.Talk/Stand by Time – Customers do pay a lot of attention on talk/stand by time as they want a mobile which can last the longest.WAP(Wireless Application Protocol) – WAP let’s one access the Internet-based services supported by your network. 32 . but ultimately it’s the customer who has to decide and make the best choice for himself.Size/Weight – These days mobile handsets come in various shapes and sizes with different weights. The needs and requirements of a customer differ fro person to person as some like bigger sets with minimum weight whereas there are some who prefer lighter sets with lighter weights.Battery – Every customer wants his/her battery to last the longest and all mobile companies fight out promising that their battery backup is the best. such as news. 7.
BIRD. KYOCERA ) ETC AT 4%.SONY ERICSSON AT 5%.MARKET SIZE OF NUMBER OF HANDSETS SOLD 70 60 M ARKET SIZE 50 40 30 20 10 0 1 BRANDS NOKIA SAMSUNG MOTOROLA SONY ERICSSON LG OTHERS IT IS QUITE CLEAR FROM THE ABOVE GRAPH THAT NOKIA HAS THE LARGEST MARKET SHARE IN SOUTH DELHI AT 65%.MOTOROLA AT 10%.FOLLOWED BY SAMSUNG AT 15%. ALCATEL. BENQ. MOTOROLA AT 1% AND OTHERS (PANASONIC. 33 .
GENERATING POSITIVE WORD OF MOUTH AND PROVIDING VALUABLE INFORMATION TO SUPPORT PRODUCT DEVELOPMENT AND QUALITY ASSURANCE. PROFIT FROM SERVICE= +(long term profits from loyal customer) +(word-of-mouth) +(regulatory cost or preventive service cost avoided) +(cost of handling) FACTORS WHICH HELP IN INCREASING SALES PERCENTAGE 60 40 20 0 1 POP DUMMIES GLOWSIGN DISPLAY STANDS 34 .AFTER SALE SERVICE OF MOBILE BRANDS 120 100 PERCENTAGE 80 60 40 20 0 NOKIA SAMSUNG SONY ERICSSON LG MOTOROLA PANASONIC EXCELLENT GOOD BAD FROM THE DATA ABOVE IT CAN BE CLEARLY OBSERVED THAT NOKIA LEADS THE PATH AS FAR AS AFTER SALES SERVICE IS CONCERNED FOLLOWE CLOSELY BY SAMSUNG AND MOTOROLA. TIME AND AGAIN COMPANIES HAVE REALISE THAT THEIR SERVICE COULD PROVIDE THE IMPETUS TOWARDS RETAINING CUSTOMER LOYALTY.
G LOWSIGNS HELP IN ATTRACTING THE ATTENTION OF THE PEOPLE TO QUITE AN EXTENT AS THE GLOWSIGN NOT ONLY REFLECTS THE NAME OF THE COMPANY BUT ALSO ITS PRODUCT RANGE.MOST OF THE DEALERS AGREED ON THE FACT THAT POP’S PLAYED A MAJOR ROLE IN INCREASING THE SALE OF THEIR PRODUCT FOLLOWED BY DUMMIES.E THEY RESEMBLE THE SAME MODEL BUT DO NOT FUNCTION WHICH HELPS A CUSTOMER GET A FEEL OF THE IDENTICAL MODEL.1ST QUARTER 2006 EFFECT OF GREY MARKET 120 PERCENTAGE OF RESPONDENTS 100 80 60 40 20 0 YES AWARNESS NO Series1 35 . DUMMIES ARE ALMOST A DUPLICATE OF THE ORIGINAL MODEL I. DISPLAY STANDS ARE USED BY DEALERS TO SHOWCASE THE VARIED SET OF THE RANGE OF MOBILES POSSESSED BY THEM AND ATTRACT CUSTOMER ATTENTION. LEGAL AND GREY MARKET STANDINGS SINCE 2002-TILL DATE. POP’S NOT ONLY MAKES THE CUSTOMER GET TO KNOW MORE ABOUT THE PRODUCT BUT ALSO EXPLAINS BASIC FEATURES ABOUT THAT PRODUCT.GLOWSIGN AND DISPLAY STANDS.
THE INCENTIVE TO BUY SOMETHING FROM A REGULAR SHOWROOM IS HIGHER NOW THAN EVER BEFORE.COMPANIES AND SOMETIMES DEALERS ON THEIR OWN.THE RECENT ANNOUNCE MENT BY THE FINANCE MINISTER ON EXCISE AND CUSTOM DUTY CUTS HAVE PUSHED THIS TREND FURTHER.AND GREY MARKET CUSTOMERS ARE MOVING TO COMPANY AUTHORISED SHOWROOMS.OFFER ATTRACTIVE SCHEMES LIKE ZERO PERCENT FINANCE SPREAD OVER 12-24 MONTHS.ALMOST 100% DEALERS AGREED TO THE FACT THAT THEY ARE NOT AFRAID OF THE GREY MARKET SCENARIO WHICH USED TO HAMPER THEIR BUSINESS A FEW YEARS AGO.BESIDES THE USUAL GUARANTEE AND WARANTEE.FOR THE PAST COUPLE OF YEARS. COMPANIES HAVE BEEN RAPIDLY REDUCING THE PRICE OF MOBILE SETS. Aw areness about Motorola m obile phones 120 Percentage of respondents 100 80 60 40 20 0 YES NO Aw areness Series1 36 .BUYBACK OPTIONS ON OLD GOODS AND THEFT INSURANCE ON MOBILE HANDSETS.
IRRESPECTIVE OF THE FACT WHETHER THEY DEALT IN THEM OR NOT. 37 .ALMOST 100% DEALERS AGREED TO THE FACT THAT THEY HAD HEARD OF MOTOROLA MOBILE PHONES.
RANKS OBTAINED TO MAKE MOTOROLA MOBILE A SUCCESS POP AVAILABILITY DUMMIES STOCK AVAILABILITY AGGRESSIVE PRICING QUALITY PRODUCTS SCHEMES SERVICE 38 .
Brand name and Brand Recommendation seem to be the major influence in the purchase decision of a mobile phone.Motorola (10 percent). The brand awareness of MOTOROLA mobile phones seems to be almost 100%. 39 . BenQ and Alcatel. Color Screen.Sony Ericsson (5 percent) and MOTOROLA (1 percent). Motorola and Sony Ericsson are the favourite as brands among the dealers in South Delhi Market. The general opinion about MOTOROLA mobile phones is that it is either Good or Satisfactory. Samsung.FINDINGS Nokia. Bird. The average monthly sales of mobile phones was around 300-350 handsets. Polyphonic Ring Tones and Integrated Camera seem to be the favorites among the customers. The Market Leader Nokia appeared to hold 65 percent market share followed by Samsung (15 percent). Panasonic. closely followed by MOTOROLA.
MOTOROLA is a Multinational Company based in South Korea. Lack of production centers in India makes the product costlier as most of the parts have to be imported. A well established brand name helps in promoting a new range of products. 4. 3. WEAKNESS: 1. 40 . 2.REFLECTIONS STRENGTH: 1. OPPORTUNITIES: 1. The company needs to evolve a comprehensive plan & strategy to make inroads into a part of middle class & upper middle class. Lack of R & D centers also makes it difficult to launch new products over here. 2.The company has a wide range of products to suite the purse & the taste of various segments of customers. The present rate of growth of the Entertainment & Telecommunication Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market.The company has a huge advertisement budget which helps in brand positioning & recall. 3.It has a well established sales network of more than 4000 dealers & branch offices around the globe & the company makes such of its products available as are in demand in each particular area. which is considered to be a technically advanced country with advanced products to meet the requirement of target customers internationally.
41 . THREATS: It is natural that threats from the existing as well as new entrants will effect the present turnover & Market share. Globalization is yet another opportunity. 3. With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company.2. The nearest competitors having the identical product range are the greatest threat to the company. if failed effectively & promptly.
enabling radios to operate from mains electricity rather than expensive batteries. To satisfy its customers. a business must create a successful mix of: • • • the right product or service sold in the right place at the right priceusing the most effective forms of promotion. information. Motorola's vision is of Seamless Mobility.Introduction Marketing involves finding out what your customers want and then meeting their requirements. Applying this vision to mobile phones. The company is now known around the world for innovation and leadership in wireless and broadband communications. and entertainment that they want and need. The company later adopted Motorola as its name. "must do" experiences and powerful networks. which the company defines as helping users get and stay connected easily to the people. Motorola has gone beyond just enabling users to make voice calls or send text messages. Depending on the models chosen. Motorola began life as The Galvin Manufacturing Corporation in Chicago in 1928. Its first product was a battery eliminator. 42 . This is sometimes referred to as the 4Ps: This Case Study shows how Motorola has created an effective marketing mix for its mobile phones in a highly competitive market place. In the 1930s it produced car radios using the brand name 'Motorola'. The company does this by designing and delivering "must have" products.
play music through the car stereo • at home. 43 . play the music through your stereo system.as well as being able to use the phone with a hands-free car kit.users can: • • • share music files between the user's PC and their phone play that music easily on stereo BluetoothTM headphones in the car .
Motorola is a global leader in wireless and broadband communications technologies and related electronic products.400 people. It has significant operations in the UK employing approximately 2.g. In April 2005. the other parts of the mix can be designed to meet customer needs. If you create products that customers want. The mobile phone market has risen dramatically in size. to tell people where you are).CREATING THE RIGHT MARKETING MIX Product The first element in the marketing mix is the product itself. Motorola's principal businesses are: Mobile phones are among the most familiar products to consumers and the mobile phone is seen by many as an essential item. the market research company Mintel produced figures which showed that 80% of the youth 44 . including being: • • • • an essential means of communication a fashion statement a source of entertainment such as music and video games a safety precaution (e. It can perform a number of functions.
and that over 61 million people subscribed to an airtime contract. because the networks they work on provide faster connections for downloading content than previous generations of phones. and 45 . 3G (third generation) phones offer much more effective access to music and video downloads. camera. just 13. Text. tell jokes. The casing is made from aircraftgrade alloy. search cinema movie times. or livechat with friends. In order to remain competitive. Motorola has partners such as MTV. the company continually seeks to innovate . which means they can look at football scores. in addition to making arrangements.for example by building phones that are slim and well designed. with high quality sites providing diverse and entertaining content.9mm thin. and video features • high quality. Motorola mobile phones are increasingly being used to capture and share experiences. Picture and Video messaging is phenomenally popular and is likely to become more so. reliable products. This is particularly important for one group or segment of the mobile market. Motorola concentrates on: • • • • attractive design excellent call-quality ease of use value-added features including music player. The Motorola RAZR V3i is the thinnest clam-shell phone currently available (as at January 2006). and flirt without the personal nature of a face-to-face or voice-to-voice contact.market in the UK has a mobile phone. customers can browse special Internet sites. With a 3G or WAP-enabled phone. An example of this is the Motorola RAZR phone. games. In creating products. The market is a very competitive one with a range of companies competing to provide mobile phone services.
Co-ordinating promotion across the Promotion business Above and below the line Sales and the marketing mix Creating strategies that meet customer Product needs (the marketing mix) Marketing mix (Price. Visitors who viewed this page also viewed. For companies like Motorola. as no conventional plastic materials were strong enough. This also lets you watch and record video clips in full colour.. 'Getting the price right' is a vital part of 46 .the outer screen from glass. The extended marketing mix (7Ps) Promotion. Product) The marketing mix Marketing Sponsorship and the marketing mix Functional areas Marketing Marketing mix Price Price is the one element of the marketing mix which creates sales revenue . It has a built-in camera with 4X zoom and quick exposure controls. price is a key element in the marketing mix. You can also enjoy your favourite ring tones. Place.all the others are costs. It is a critical selling point. music clips and games with a state-of-the-art polyphonic speaker sound and an integrated 3D graphics engine..
As a product matures and sales increase. This is because a lot of product and market research has gone into producing the product.. Place. It usually takes time for large numbers of consumers to purchase new products. Economies of scale are important. When a new product is launched prices will typically be quite high.building relationships with customers. it is possible to reduce costs. They therefore like to link with the producers of the best designed phones which feature the most exciting and effective technologies. software engineering and investment in plant (manufacturing machinery and tooling) can be spread. Sales and the marketing mix The 4Ps Promotion Product Creating strategies that meet customer The marketing mix and market research needs (the marketing mix) Marketing mix (Price. As with other companies. Network providers want as many people as possible to subscribe to their network. Business location Product) 47 . With high outputs of production. For example. Phone retailers will often supply free accessories with a mobile phone to make it more useful to phone users and to encourage them to buy. Visitors who viewed this page also viewed. Promotion. These come in when a firm is able to produce on a large scale. prices charged by Motorola are linked to the product life cycle. costs of research and development. State-of-the art products are sold at premium prices reflecting the high quality of the items and their innovative nature. The costs to the users of Motorola mobile phones are kept down because they are subsidised by the network providers such as Vodafone. 3G phones are only just beginning to sell in large quantities..
There are a number of ways in which Motorola distributes its phones. 48 . The term 'place' deals with various methods of transporting and storing goods and then making them available to the customer. Getting the right product to the right place at the right time involves the distribution system.The marketing mix Marketing Marketing Marketing mix The extended marketing mix (7Ps) Functional areas Sponsorship and the marketing mix Place Though figures vary widely from product to product. Distribution is the process of moving goods and services to the places where they are wanted. roughly a fifth of the production cost of an item goes on getting it to the customer.
49 . It will tell you about different models of phones. The reason for this is that the product fits closely with the distribution channel.are mainly sold through retail outlets of 3G networks. Many people like to buy phones from independent retailers such as Carphone Warehouse. For example. You can buy a Motorola phone from the Motorola website. The place where you are able to buy sometimes depends on the product. it was exclusively available through Carphone Warehouse.. A second source is a retail outlet belonging to a network provider such as Vodafone. increasing numbers of people buy through the Internet. 3G phones . The great thing about buying online is that you can spend as long as you like and examine a lot of information.. Visitors who viewed this page also viewed. their prices and features etc. These can offer advice about a variety of different phones and suggest the one best suited to your needs. Nowadays. An advantage of buying online is that prices are typically cheaper because you are cutting out the middle person. This is an example of e-commerce. In contrast.If you want to buy a Motorola mobile phone there are a number of distribution channels that you can use. Some companies like Motorola often give exclusive offers to certain retailers. The site is managed for the company by a third party who processes the orders and delivers the mobile phones/accessories to customers. when Motorola first introduced the pink RAZR in the UK.
An important avenue for communication is advertising. Advertising will communicate the desirability. Place.Co-ordinating promotion across the Promotion business Price The 4Ps Above and below the line Location Creating strategies that meet customer The extended marketing mix (7Ps) needs (the marketing mix) Marketing mix (Price. Advertising is referred to as 'above the line' promotion. Companies like Motorola send communications and consumers receive them. it makes sense to make people aware.the more Motorola is able to 50 . when a new product is launched. Location of production Promotion. For example. Promotion costs are shared with retailers. emotional benefits and exclusive features of the product. The more retailers sell . Other types of promotion such as special offers and discounts are referred to as being 'below the line'. The type of promotion that is used depends on the stage in the product life cycle. Product) Sponsorship and the marketing mix Marketing mix Functional areas Marketing Marketing Promotion Promotion includes all of the techniques that a company uses to communicate with other individuals and organisations. Motorola works in close partnership to promote its phones with retailers. such as the RAZR.
Place. listen to music of their choice. access important information on the move. in the right place. Motorola has invested heavily in providing a range of products that enable people to communicate on the move. In a highly competitive market Motorola needs to regularly adjust this marketing mix in line with the changing requirements of millions of customers. Visitors who viewed this page also viewed. Its vision is to provide seamless mobility.. In the modern age. The extended marketing mix (7Ps) Promotion. Above and below the line Promotion The marketing mix and market Place research Creating strategies that meet customer Price needs (the marketing mix) Marketing mix (Price. Product) The marketing mix Marketing mix Sponsorship and the marketing mix Marketing Functional areas Marketing Conclusion Motorola is an exciting high-tech company.help them. In short. with appropriate promotion. These products are supported by other elements of the marketing mix the right price. communication and the sharing of information is a major goal of consumers.. 51 . to make best use of their time and the communications available to them. They want to be able to share a joke with friends.
According to the dealers advertising & promotional schemes along with other Dhamaka like schemes also effect the consumers willingness. So dealers’ preference to push a particular brand to the customer plays a major role in the mobile market. Along with these he will keep in mind the product quality & technology while selling a mobile brand. They sell different brands to gain more volume & more availability to the customers. A dealer also prefers the company which provides better after sale service. Dealer preference to sell that brand in which he gains more profit & whose schemes are more beneficial & best suited to him. Consumers also judge the after sale service availability of the company before purchasing a mobile.V. Consumers prefer a MNC brand due to the quality & technological superior features.CONCLUSION Most of the dealers are selling more than one brand. 52 . Newspapers & magazines. Aggressive advertising put into effect for a long time in the customers mind which influence the people are T.
In South Delhi Market “Brand Name” plays a crucial role in the sale of a mobile phone. The promotional schemes attract the customer to buy a particular brand. so that they might recommend MOTOROLA brand to the customer. should stress on “RELATIONSHIP MARKETING” to attain credibility in the market. to build good relations with the customers & to retain customer loyalty. 53 .RECOMMENDATIONS The dealer recommendations influence the buyer’s decision to purchase a particular brand. Should ensure that their mobiles are delivered on time & place. Therefore the company should come out with new & innovative schemes so that volume can be increased. To create brand image. So MOTOROLA Electronics India Ltd. MOTOROLA Electronics India Ltd. So there is need for good relationship with the dealer in terms of incentives provided by the competitors.
MOTOROLA EZBUY. PUBLISHED BY PRENTICE. MARKETING MANAGEMENT. MARKETING RESEARCH.COM COMPANY CATALOGUE & BROCHURES 54 .TRAI. Ed. 2003. Ed. 8. PUBLISHED BY HALL OF INDIA PVT.COM • HTTP:// WWW. HALL OF INDIA PVT.BIBLIOGRAPHY BOOKS KOTLER PHILIPS.GOOGLE. 2003 WEBSITES: • HTTP:// WWW.COAI.LTD..COM • HTTP:// WWW.LTD.COM • HTTP:// WWW. HAWKINS & PRENTICE TULL. 10.
QUESTIONNAIRE. 2.ANNEXURE 1. BIBLIOGRAPHY. 55 .
Age: ………………………………………………………………. Occupation : ………………………………………………………………. If yes which one & when did you purchase it? Q3. Income (P. In what time you are thinking to change your handset or buying a new one Q6.M & Rs.): > 5000 5000-10000 10000-15000 <15000 Q1. (if no go to question 7) Q2. Which Phone do you like the most and why? 56 . Are you using a mobile Yes No. Are you satisfied Yes No. If yes then reason & if no then reason? Q5.QUESTIONNAIRE Name: ………………………………………………………………. Q4. To which handset will you move and what’s your budget Q7.
How would you rate the positioning of LCC mobile phones in the market. Q9. Excellent Good Satisfactory Poor 57 .Q8. Do you think after sales network is important in mobile industry? Very Important Average Least Important Q10. What extra features or suggestion would you like to give for mobile phone companies.
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