“COMPARATIVE ANALYSIS OF APPLE VS.

SAMSUNG”

Semester Project / Dissertation Topic submitted in partial fulfillment for the award of

Master in Business Administration

2012-13

BY

MOHAMMAD IRFAN

MBA, IIND SEM

Roll No-1200122044

Under the guidance of

Dr. YASHIR ARAFAT ILAHI

(Sr. PROF.)

DEPARTMENT OF BUSINESS MANAGEMENT

INTEGRAL UNIVERSITY

Integral University, Lucknow

Dasauli, P.O. Bas-ha Kursi Road Lucknow - 226026

 DECLARATION

I declare that the project entitled “COMPARATIVE ANALYSIS OF APPLE VS.

SAMSUNG” under the guidance of Dr. YASHIR ARAFAT ILAHI (DEAN), Integral
University submitted in partial fulfillment of the requirement for the award of the degree
of Master of Business Administration to Integral University, Lucknow is my original
work – carried out and not submitted for the award of any other degree, diploma,
fellowship or other similar or prize to any other institute, organization or university by
any other person.

MOHAMMAD IRFAN

MBA, IIND SEM

Roll No-1200122044
 ACKNOWLEDGEMENT

I am thankful to Dr. YASHIR ARAFAT ILAHI (Sr. PROF.), Integral University for his valuable
inspiration and guidance provided me throughout the course of this project. She has patience and
critically gone through the subject matter.

I would like to take opportunity to express my gratitude towards all of them who have contributed
directly or indirectly in my project work.

At last I would like to extend my deep sense of gratitude to my friends, colleagues and each
individual who directly or indirectly help me during the project work.
 EXECUTIVE SUMMARY

The problem staring at the face of Apple today is its loss of focus. It failed to innovate with the
technology curve and understand the changing consumer needs. Apple seemed to successfully do
what marketing experts say you can’t do: serve all segments in a market. Apple sold very high
-end, technologically advanced phones and simple, inexpensive phones, all under the Apple
brand. The branding structure was very simple: the Apple brand with a product number, the
company’s newest smartphone ofcourse, many branding problems only surface over time.

And that is certainly the case for Apple . By playing in all segments of the market, Apple
watered down its brand, eroding its meaning. The company stands on a double edged sword of
surviving and reviving. Apple 's new Apple phones are considered to be its last shot at success by
analysts, who believe that if the new devices fail, the company will not be able to rise from the
ashes. The Finnish manufacturer has lost ground to Apple iPhone and Samsung Galaxy phones.
In addition to this, Apple needs to develop a long term strategy to stay competitive and profitable
in the industry.

This study primarily targets the strategy of Apple and its upcoming products. All the major
sectors of product management are studied. SWOT Analysis & PESTLE Analysis were carried
out and PORTER’s 5 Forces Model w as applied on Apple during this study while doing
competitor analysis at each step. Promotion and Pricing strategy was studied and distribution
channels were analysed to find the best suitable strategy for the future using current resources and
competencies. Apple has lost its crown and the acceptability in the market especially like India.
Following a short term strategy to increase brand equity is the first and most important task at
hand. It has to be efficiently promoted and aggressively sold to generate survival resources.
Finally, Apple needs a long term strategy to sustain the ever increasing competition in the
otherwise very profitable industry.
 TABLE OF CONTENT

Cover Page

Acknowledgement

Executive Summary

Index

Chapter - I : Conceptual Description of topic

Chapter - II : Brief Profile of the Company

Chapter - III : Research Methodology

In Case of Primary data Collection and Secondary Data Analysis

i. Objective

ii. Research Design

Chapter - IV : Analysis and Interpretation of Data

Chapter - V : Findings, Conclusion and Suggestions

Bibliography

Annexures

Questionnaire
 Chapter - I

Conceptual Description of topic

 INTRODUCTION

The cellular telephone (commonly “mobile phone” or “cell phone” or “hand phone’) is a
long range portable electronic device used for mobile communication. In addition to the
standard voice function of a telephone, current m o b i l e i - p h o n e s c a n s u p p o r t
m a n y a d d i t i o n a l services such a s sessor text messaging, email, switching for
a c c e s s t o t h e Internet, & MMS for sending and receiving photos and video. Most
current mobile i-phones connect to a Cellular network of base stations, which is in turn
interconnected to the public switched telephone networks i-phones. Cellular telephone is
also defined as a type of short-waveanalogor digital telecommunication in which a
subscriber has a wireless connection from a mobile telephone to a relatively nearby
transmitter. The transmitter's span of coverage is called a cell. Generally, cellular
telephone service is available in urban areas and along major highways. As the cellular
telephone user moves from one cell or area of coverage to another telephone is
effectively passed on to the local cell transmitter. A cellular telephone is not be confused
with a codeless telei-phones.
 INTRODUCTION OF SAMNSUNG

Samsung Group is a South Korean multinational conglomerate company headquartered

in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses,
most of them united under the Samsung brand, and are the largest South Korean chaebol.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2011 revenues), Samsung Heavy
Industries (the world's second-largest shipbuilder measured by 2010 revenues), and
Samsung Engineering and Samsung C&T (respectively the world's 35th- and 72nd-
largest construction companies). Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest insurance company), Samsung Everland (the oldest
theme park in South Korea) and Cheil Worldwide (the world's 19th-largest advertising
agency measured by 2010 revenues).

Samsung produces around a fifth of South Korea's total exports and its revenues are
larger than many countries' GDP; in 2006, it would have been the world's 35th-largest
economy. The company has a powerful influence on South Korea's economic
development, politics, media and culture, and has been a major driving force behind the
"Miracle on the Han River".
 INTRODUCTION OF APPLE

2) Overview of company:-

Apple Inc. is an American corporation that designs and manufactures computer hardware,
software and other consumer electronics devices. The company is best known for their
Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media application,
the iPod personal music player and i I-phones. The company headquarters is in Cupertino, California, CEO
and co-founder is Steve Jobs and the company boasts 284 retail locations spanning 106 different countries.
(apple, 2011)
Apple was established on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne to sell
the Apple I personal computer kit. Steve Jobs was said to own 45% of the company, Steve Wozniak with
45% and Wayne with the remaining 10%. While Jobs and Wozniak were young with little to no assets,
Ronald Wayne was older with personal assets and was scared to put these at risk. This resulted in Wayne
selling his share of the company back to Jobs and Wozniak for a reported 800$. Today Wayne’s share of
the company would be worth over 3 billion dollars. (Michael Dougherty, 2010)
In December 1980, Apple went public. Its offering of 4.6 million shares at $22 each sold
lot within minutes. Second offerings of 2.6 million shares quickly sold out in May 1981.
As of September 25, 2010, the Company had opened a total of 317 retail stores, including
233 stores in the United States and 84 stores internationally.(apple b,2011)
3) Product portfolio:-
Apple has different segment in its product portfolio: - (apple, 2011)
1) Macintosh computers
2) I I-phones (I Phone 3g, I Phone 3gs, I Phone 4)
3) I Pad
4) I Pod
5) Software (I Tunes and other application software)
Source: .(ismashphone, 2009)
 Chapter - II
Brief Profile of the Company
4) Overview of Smartphone industry:-
A Smartphone is a mobile phone that offers more advanced computing ability and
connectivity then ordinary feature phone. Smartphone may refer to handheld computer
integration with a mobile. Smartphone are completely built with operating system
software which allows user to use phone instead of their laptop or computers. In 2011
Smartphone are experiencing accelerating rates of adoption: 22% of consumers already
have a Smartphone, with this percentage rising to 31% amongst 24-35 year olds.
(ismashphone, 2009)

List of companies involved in manufacturing Smartphone are as follows :- (ismashphone,

2009)
1) Apple
2) Nokia
3) Blackberry (RIM)
4) HTC
5) Fujitsu
6) Others (includes Motorola, Sony, and everyone else)

Apple's Smartphone market share growth over 1 year has been 10 times that of any other
of its competitors. However, Apple is still only third in line when counting the number of
units sold by each major Smartphone manufacturer. Nokia is first, selling a whopping
18,441,000 in the 2nd quarter of 2009, and RIM (Blackberry) is 2nd with 7,678,900 units
sold.
5) Product overview:-
Apple i Phone 4 is the latest i phone series phone launched by apple inc. For this report i
have chosen this product and further marketing analysis is done in following report.

Source: (apple, 2011)

6) Audit of marketing environment:-

1) Macro Environment
 Source(learning marketing, 2005)

1) Political factor:-

In 2010 Emergency Budget the Chancellor announced an increase in the standard

rate of VAT from 17.5 per cent to 20 per cent effective from 4 January 2011. This
would affect the total selling price of i phone 4. (apple store, 2011)

GATT laws can interfere selling of i phone 4 in global context. (duke law,2004)

As most apple iphone is sold in terms of contract with other telecommunication

companies, sometimes customer finds problem to finish this contract and thus
laws of such contract affect the consumer buying decision.
2) Economic factor:-

Average Weekly Earnings

Regular pay growth decreases

Source (national statistics, 2011)

As shown in graph average weekly income of people in UK is going

slightly down from February 2011, this may affect the purchasing power
of consumer in future.

Unemployment rate of UK is 7.8% which is quite high and can affect the
sells of company.

Inflation

CPI 4.0%, RPI 5.3%
 Source(national statastics b,2011)

Inflation rate was 4.0 per cent in March 2009, down from 4.4 per cent in
February 2011. As inflation is decreasing but still is quite high which can
affect consumer purchasing decision.
3) Socio-cultural factor:-

Population Estimates
UK population grows to 61.8 million

Population: by gender and age, mid-2009

 Source(national statastics c,2011)

The
 estimated resident population of the UK was 61,792,000 in mid-2009, and Children aged
under 16 represented approximately one in five of the total population and youth population
between 20-40 is also high, thus apple has larger scope as it target the customer between this
group.

GDP
 per head in Britain was £23,500 in 2008 which means standard of living
in Britain was high. As apple group is targeting the customer with high
income earning group, can get larger customer group in Britain. (David
smith, 2007)

As
 per capita income and economy is growing after the great recession most
people want to achieve higher slandered of living by purchasing premium
product. Hence, it widened the market for apple iphone.

As
 compared to Asian countries the culture of UK is independent that means individual are
free to take their own decision after 18 years. Which also influenes the buying decision of
consumer.

4) Technological factor:

 Apple iphone 4 is loaded with latest technology going in market. But

Innovation in technology takes place very fast thus companies has to keep
updating their product with new technology. Soon apple is going to launch
apple iphone 5, hence apple iphone 4 would be out of market.

2) Micro environment:-
Michel
 Porter identified five forces for analysing the micro environment (Elizabeth, H.
and Terry O, 1996)
 SWOT ANALYSIS

Strength:
 -

Innovative – The i Phone has an innovative touch screen that is patented and
unmatched by any other mobile product today. It also has many functions of other
mobile products all in one device.

Compatibility –The phone will work with iTunes and with other Mac/Apple products
like the new Apple TV, allowing for wireless connectivity to the big screen. The i
Phone is also compatible with many Mac OS software tools. Mac OS compatibility
means that the i Phone has limitless potential for upgradeability.

Ease-of-Use – The all-new touch screen interface making operations extremely

intuitive. It is radically different from those of other i-phones or PDAs that
recognizes multi finger gestures, just as the human hand normally behaves. The Mac
OS X application imbedded into the i Phone assures users will easily recognize what
they can do

Brand awareness – Apple is well known for cool essential gadgets like the iPods,
ipad, macbook and Smartphone along great technological innovations like the
original Macintosh.

Price – At £418, the i Phone would be sold at a reasonable price for its value. It
outperforms any other PDA or smart phone on the market and the convenience of
having multiple features combined into one-device increases its overall value.

Quality – The i Phone has one of the brightest and most scratch resistant screens in
the market. It also has a fine metallic finish that is durable and light. The software
suite included is also unsurpassed with their ease of use and resistance to computer
viruses.
Weakness:
 -

Image – The Apple brand is not targeted towards business people, which most smart
i-phones have targeted. Does not have a reputation as being compatible with the
corporate world.

Price – Apple does not yet offer lower priced models for more cost conscious
consumers.

User Interface – Touch screen interfaces suffer from the problem of “gorilla arm,” in
which long-term use of a flat, solid surface for input becomes uncomfortable.
Opportunity:
 -

Increasing demand and expansion to a new target segment – Apple will continue to
target the business productivity market who wants an all in one computing solution.
But as technology advances and smart i-phones get cheaper companies also have a
great opportunity to target people who want entertainment. Apple will attract these
consumers and get iPod users to upgrade to i I-phones.

Upgradeable – Since software on the i Phone can be updated, it allows new exciting
features to be brought in which take advantage of the touch screen ability. Future
versions will also be hardware upgradeable.

Partnerships – Apple can collaborate with many powerful global mobile phone
companies to flood the market with iI-phones, which reduces costs in marketing and
increases revenue through long-term agreement deals.

Threats: -
 Increased competition – Smart i-phones are easier to make now more than ever.
More companies may enter the market, given that there are few barriers to entry
other than patents. Competitors or even Apple contractors can maneuver around
patents to create similar devices.

Downward pricing pressure – The i Phone is marketed as a high-end phone, but

phone prices are almost certainly going to fall when other companies undercut the
price of i I-phones.

8) Marketing mix:-

Product


According to philip Kotler a product is anything that can be offered to a market for attention,
acquisition, or use, or something that can satisfy a need or want. Therefore, a product can be a
physical good, a service, a retail store, a person, an organisation, a place or even an idea. Products
are the means to an end wherein the end is the satisfaction of customer needs or wants.

Kotler states five product levels, the core benefit, the basic product, the expected
product, the augmented product and the potential product.
 Source (Philip k 1969)

Each
 level adds more customer value, and the five constitute a customer value
hierarchy. The most fundamental level is the core benefit: the fundamental
service or benefit that the customer is really buying. A i phone purchaser is
buying “entertainments and telecommunication”.

At
 the second level the marketer has to turn the core benefit into a basic product.
Thus a i phone manufacturer will include touch screen, camera, other
application, speakers etc.

At
 the third level, the marketer prepares an expected product, a set of attributes
and conditions buyers normally expect when they purchase this product. I
Phone buyers expect internet facility, good sound system, user friendly
instrument, good camera, good touch screen system.

At
 the fourth level, the marketer prepares an augmented product that exceeds
customer expectation. I phone manufacturer can include a good Wi-Fi
internet system, 10 mega pixel camera, and other advanced application.

At
 the fifth level stands the potential product, which encompasses all the possible
augmentations and transformations the product might undergo in the future.
Successful companies add benefits to their offering that not only satisfy
customers, but also surprise and delight them. Delighting is a matter of
exceeding expectations.

Product
 name :- Apple iPhone 4

Brand:-
 Apple INC
Product
 specification:- (apple 2011)

Launch
 date:- 27 june 2010
Size and weight
Height:4.5 inches (115.2 mm) Width:2.31 inches (58.6 mm)
Depth:0.37 inches (9.3 mm) Weight:4.8 ounces (137 grams)

Location
Assisted
 GPD

Digital
 compass

Wi-Fi


Cellular


Power and battery

Built-in
 rechargeable lithium-ion battery

Charging
 via USB to computer system or power adapter

Talk
 time:
Up to 7 hours on 3G
Up to 14 hours on 2G

Standyby
 time: Up to 300 hours

Capacity
16GB
 or 32GB flash drive

Colour
Black


Display
Retina
 display

3.5-inch
 (diagonal) widescreen Multi-Touch display

960-by-640-pixel
 resolution at 326 ppi
 800:1
 contract ratio (typical)

500
 cd/m2 max brightness (typical)

Fingerprint-resistant
 oleophobic coating on front and back

Support for display of multiple languages and characters simultaneously

Price:-


As Apple iphone is well known brand in domestic as well international market and has
covered maximum market share in Smartphone industry. Apple iphone 3 and iphone 3gs
were successful in market thus, apple at launching of iphone 4 decided to set their prices
on basis of market skimming pricing rather than premium pricing strategy.

Market
 skimming pricing is setting a high price for a new product to skim maximum
layer from the segment willing to pay the high price; the company fewer but more profit.
(Philip k.and gary.a, 2006,pp.353)

Whereas
 premium pricing is use a high price where there is uniqueness about the product
or service. This approach is used where a substantial competitive advantage exists.
(Philip k.and gary.a, 2006,pp.353)

Apple can use any 1 of the pricing strategy as their brand value and product were in demand in market.
Because of their new technology customer were willing to pay higher price for the iphone 4. But as product
goes old and other competitors enter the market with same technology apple has to reduce their price to be
in market. Thus, apple used market skimming pricing strategy to cover maximum market share and revenue
in beginning and then to lower their price according to competition.

Current
 price of apple iphone 4 is 16GB is £510 and for 32GB £612.(apple store 2011)

Place

 “Channels of distribution are set of interdependent organisations involved in the process
of making a product or service available for use or consumption” (Kotler P., thr1999. pp.
489-496). There are two types of distribution network 1) direct distribution channel 2)
indirect distribution channel.
Indirect Channel

The
 indirect channel is used by companies who do not sell their goods directly to
consumers. Suppliers and manufacturers typically use indirect channels because they
exist early in the supply chain. Depending on the industry and product, direct distribution
channels have become more prevalent because of the Internet.(Osmond Vitez, 2011)

Direct Channel

A
 direct distribution channel is where a company sells its products direct to consumers.
While direct channels were not popular many years ago, the Internet has greatly increased
the use of direct channels. Additionally, companies needing to cut costs may use direct
channels to avoid middlemen markups on their products. .(Osmond Vitez, 2011)

Indirect Channel Methods

Distributors,
 wholesalers and retailers are the primary indirect channels a company may
use when selling its products in the marketplace. Companies choose the indirect channel
best suited for their product to obtain the best market share; it also allows them to focus
on producing their goods. .(Osmond Vitez, 2011)

Direct Channel Methods

Selling
 agents and Internet sales are two types of direct distribution channels. Selling
agents work for the company and market their products directly to consumers through
mail order, storefronts or other means. The Internet is an easy distribution channel
because of the global availability to consumers. .(Osmond Vitez, 2011)

Apple uses both types of distribution channel to sell their product in UK. As apple
doesn’t have any manufacturing plant in UK they have to import from USA. Apple has
their own online stores thus customer those who want to purchase iphone can order there.
Thus apple uses direct channel for such customer.

Apple also has almost 30 retail store in UK, hence they follow indirect distribution
channel to sell their final product to their customer.(apple store,2011)

As shown in the distribution Chart, Company uses both one level and two level
distribution channels to make available their product to end user.
 Distribution channel of apple INC

Promotion


Promotion is all about companies communicating with customers. A business'

total marketing communications programme is called the "promotional mix" and
consists of a blend of advertising, personal selling, sales promotion and public
relations tools.(tutor2u, 2004)
1) Advertising
Any paid form of non-personal communication of ideas or products in the "prime
media": i.e. television, newspapers, magazines, billboard posters, radio, cinema
etc. Advertising is intended to persuade and to inform. The two basic aspects of
advertising are the message (what you want your communication to say) and the
medium (how you get your message across) (tutor2u, 2004)
(2) Personal Selling
Oral communication with potential buyers of a product with the intention of
making a sale. The personal selling may focus initially on developing a
relationship with the potential buyer, but will always ultimately end with an
attempt to "close the sale".(tutor2u, 2004)

(3) Sales Promotion

Providing incentives to customers or to the distribution channel to stimulate
demand for a product. (tutor2u, 2004)
(4) Publicity
The communication of a product, brand or business by placing information
about it in the media without paying for the time or media space directly.
otherwise known as public relations. (tutor2u, 2004)
Apple has its own online store so they advertised their product there and
costumer easily get all information about the product from there. Mostly
advertisement of apple in UK is done by other telecommunication company such
as Vodafone, o2, virgin, and orange. These companies in order to sell their
telecommunication services gives i phone with their services on basis of
contract. This is the advertising approach used by apple in UK. This saves lots of
money for apple and ultimate aim to communicate the message to customer is
done by this telecommunication companies. Apple also have TV ads to promote
their product. Apple also use magazine advertisement to promote their product.
Apple also uses hoardings where image of product is displayed and detailed
information is written there. By putting such hoardings people who are walking
roadside can see the information and message can be conveyed to customer.
Apple uses promotional methods using special short-term techniques to persuade members of a
 target market to respond or undertake their products. Apple uses for sales promotions are money
back guarantees, lower purchase price and rebates etc. The Apples stores are very distinct and
captivating from many other electronic stores because they display all of their products for
consumers to experience hands-on. Consumers are allowed to surf the web on any of their
computers, listen to the latest ipods, and experience the iPhone and its features. This lets
consumers get comfortable with the products and familiarize themselves with it. This is a major
consumer sales promotion that Apple has developed.(apple INC, 2009)

As most of the user of iphone are college student age group from 17 to 22,
company should promote their product mostly to this group but we not found out
any such activities carried by apple group.
As apple iphone are loaded with latest technology and its has covered most of
the market, that’s why they are always there in media or news. This promote
apple product to graeter context.

9) Marketing approaches:-

Segmentation, targeting, and positioning together comprise a three stage

process. We first (1) determine which kinds of customers exist, then (2) select
which ones we are best off trying to serve and, finally, (3) implement our
segmentation by optimizing our products/services for that segment and
communicating that we have made the choice to distinguish ourselves that way.
 (Sources: USC marshall ,2009)
Segmentation
 :-

Type of segment Variable

Demographic Age, Gender, Occupation, Income

Geographic Region, Population density, climate

Psychographic Social class, Life style, personality

Behavioural Degree of loyalty, Type of User

Source: Dibb and et al, (2001)

Apple i Phone 4 come under Smartphone segment and classified under unsought
goods. Thus, it requires lots of things to consider while purchasing it though it
requires more attention of Apple INC. Apples target segments consist of
professionals, students, corporate users, entrepreneurs, and health care workers.

Demographic:-

Age: - Apple i Phone 4 targets younger customer and with high income earning
group.
Sex: - As it is a Smartphone it can be used by both male and female. Thus apple
group concentrate on both group.
 Religion: - As UK is a demographic country generally companies do not segment
their product according to religion.
Occupation: - as i Phone 4 is a Smartphone it targets the corporate people.
Geographic:
 -
Country: - As apple INC is an American company but still it sales their product in
almost 106 countries in world. And for Europe it covers 36 countries.
Region: - In UK there 4 key markets (England, northern Ireland, Wales,
Scotland ) and apple group covers all 4 markets in UK.
Psychographic:
 -
Social class: - As in UK there is basically three group low earning income,
medium earning income, high earning income group. Apple INC concentrates on
high income earning group.
Life style: - As i Phone 4 is a highly technological phone, company targets the
customer which are interested in using new technology.
Occasion:- It’s a human psychology that to buy some new thing on some
occasion thus considering this apple group try to attract such customer and to have
maximum sell at this time.
Benefits: - as i Phone 4 is a latest Smartphone customer do not buy just to use it
but it also shows image and status in society.

Targeting
 :-

‘’The decision about which market segment(s) a business decides to prioritise for
its sales and marketing efforts.’’(Dibb and et al, 2001)
I Phone’s marketing strategy is to differentiate the i Phone from other PDA’s on
the market. I phone’s primary customer targets is the middle-upper income
professional that need one portable device to coordinate their busy schedules and
communicate with colleagues, friends and family. I phone’s secondary consumer
targets are high school, college and graduate students who need one portable
multifunction device. Mainly this market will be replacing their iPod and cell
phone with the iPhone.
 Apple group uses concentrated marketing strategy for targeting their customer.
“Concentrated marketing is a market coverage strategy in which firm goes after a
large share of one or few segment or niches”(Philip k. And gary a. b, 2006, pp
231). Apple group uses this strategy to attract the customer who are interested in
store information and communicate or people who want entertainment on the go.
By using such strategy apple targets
Segments consist of professionals, students, corporate users, entrepreneurs, and
health care workers with age group between 16 to 40.

Positioning
 :-
Positioning is the process of creating an image for a product in the mind of
target customer.

Source: USC marshall (2009)

Using
 product differentiation, Apple group positioned the iPhone 4 as the versatile,
convenient, value-added device for personal and professional use. The marketing
strategy will focus on the convenience of having one device for communication,
but also music, pictures, and video, and full Internet access. The iPhone will be
promoted as both professional and hip.
Currently
 Apple i Phone 4 is in maturity stage generating maximum profit for
company. But soon apple i Phone 4 is going to decline stage because apple group
is going to launch i Phone 5 in July 2011.
 Current
 position of apple i Phone 4 in product life cycle:-

Perpetual
 mapping ( kotler, p., 1999)

As apple i Phone 4 is made up of latest technology, it is positioned in high price and high
technology group.
 COMPANY PROFILE

Type Business unit

Industry Telecommunication

Founded Seoul, South Korea 1977

Headquarters Suwon, Shout Korea

Area served Worldwide

Key people Geesung choi, President

Products Mobile i-phones

Smart i-phones

Telecommunication system

MP3 Player, Laptop computers

Revenue US$ 21.1 billion (2007)

Net income US$ 2.3 billion (2007)

Employees 344,000 (2010)

Website Samsung consumers

HISTORY

Unlike other electronic companies Samsung origins were not involving electronics but
other products.

In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in Korea,
selling fish, vegetables, and fruit to China. Within a decade Samsung had flour mills and
confectionary machines and became a co-operation in 1951. Humble beginnings.

From 1958 onwards Samsung began to expand into other industries such as financial,
media, chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics
was established producing what Samsung is most famous for, Televisions, Mobile I-
phones (throughout 90's), Radio's, Computer components and other electronics devices.

1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over
as chairman. In the 1990's Samsung began to expand globally building factories in the
US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.

In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They
sold businesses to relieve debt and cut employees down lowering personnel by 50,000.
But thanks to the electronic industry they managed to curb this and continue to grow.

The history of Samsung and mobile i-phones stretches back to over 10 years. In 1993
Samsung developed the 'lightest' mobile phone of its era. The SCH-800 and it was
available on CDMA networks.

Samsung has made steady growth in the mobile industry and are currently second but
competitor APPLE is ahead with more than 100% increase in shares.
Samsung Telecommunications

Samsung Telecommunications is one of five business units within Samsung Electronics,

belonging to the Samsung Group, and consists of the Mobile Communications Division,
Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile
Solution Centre and Telecommunication R&D Centre. Telecommunication Business
produces a full spectrum of products from mobiles and other mobile devices such as MP3
players and laptop computers to telecommunication network infrastructure. Headquarters
is located in Suwon, South Korea.

In 2007 Samsung Telecommunication Business reported over 40% growth and became
the second largest mobile device manufacturer in the world. Its market share was 14% in
Q4 2007, growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung
sold more than 300 million mobile devices and set still in second after APPLE with 300.6
million mobile devices sold in the first three quarter of 2011.

Subsidiaries and affiliates

As of April 2011, Samsung Group was comprised of 59 unlisted companies and 19 listed
companies, all of which had their primary listing on the Korea Exchange stock exchange.

Company Symbol Company Symbol

Samsung Corporation 000830 Shilla Hotels and Resorts 008770
Samsung Securities 016360 Samsung Fine Chemicals 004000
Samsung SDI 006400 SI Corporation 012750
Samsung Electro-Mechanics 009150 Samsung Fire & Marine Insurance 000810
Samsung Engineering 028050 Samsung Electronics 005930
Samsung Techwin 012450 Samsung Life Insurance 032830
Cheil Industries 001300 Samsung Card 029780
Samsung Heavy Industries 010140 Cheil Worldwide 030000
Market Korea 122900 Credu 067280
Ace Digitech 036550
Samsung Vision

Samsung India's Vision entails helping people improve the quality of their lives by
providing them with superior quality, state-of-the- art technology products at the
right time and the right price. But b e y o n d i t s r o l e a s a p u r v e y o r o f q u a l i t y
p r o d u c t s i n I n d i a , Samsung seeks to contribute to the economic growth of the
country though its export commitments and large scale production facilities generating
secured employment for hundreds of Indian people. At Samsung, we strive to contribute
to the development of the electronics a n d c o m p o n e n t s i n d u s t r y i n I n d i a b y
e n h a n c i n g t h e k n o w l e d g e l e v e l s o f o u r w o r k f o r c e through the introduction
of our advanced management systems and production know-how in our
m a n u f a c t u r i n g facilities by introducing our Indian vendors to our world class
quality systems and helping them in improving them in their own quality
systems and production processes and setting benchmarks for the industry both in terms
of after sales service for our products, quality systems and management techniques at our
facilities or our products themselves. At Samsung, we believe in returning to the
community some of the profits we earn from it, through the social causes we espouse. We
view ourselves not as an MNC operating in India, but as an 'Indian Company'
operating here, conforming to the laws of the country and committed to working
for the Indian community. We want and to be seen as the 'Most Respected' Indian
Company.
 CHAPTER - III
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Research is the systematic and objective search for the analysis of the information
relevant to the identification and solution of any problem in the field of channel
development. The objective behind this project was to get a deep insight into the answers
To the questions “what are the general problem faced by the subscribers and
what they expect from mobile handsets providers and study of current mobile market”.
The object of the survey was the mobile users of various mobile companies.

The essence of research conducted by us is to analyze the present market position of

APPLE & Samsung mobiles among its competitors and the problem which are being
faced by customer, wholesaler, and retailers. The eventual objectives are to suggest some
recommendation to the company so as to enable them to increase their market share.

Only in analyzing my sample follows no conventional method. The total analyze is based
on the internees the question put on before our sample size. A research of this can’t be
done all once through large area in limited time so NABHA has been selected for
research.

STEPS IN MARKETING RESEACH PROCESS

 DEFINE PROBLEM AND RESEARCH OBJECTIVES

 DEVELOPING THE RESEARCH PLAN

 COLLECTION OF DATA
  PRESENTATIONS OF THE FINDINGS

RESEARCH OBJECTIVES

 Get knowledge about APPLE mobiles and Samsung mobiles.

 Customer satisfaction about using their handset.

 Sale of products.

 Know about sale pattern.

DEVELOPING THE RESEARCH PLAN

The second step of marketing research process calls for developing the most efficient
plan for gathering the need information. While designing a research plan we have to take
decisions regarding data sources, search approached, search instruments, sampling etc.
there are two plan contact which are as follows:-

1. DATA SOURCE

There are two type of data source:

 Primary data

 Secondary data

Primary data :

Personal interviews are conducted which enable collection of oral verbal

response. This is fact to face contracted with structured or sometime even unstructured
patterns. This helps in obtaining indent information.

Secondary data:

Secondary data can be obtained from different magazines and annual

reports, financial documents referred.

2. RESEARCH APPROACH

SURVEY METHOD:-

Survey are best suited for descriptive research companies which undertake surveys to
learn about people’s knowledge, preferences, satisfaction etc. to measure these
magnitude in general population. While observation and tours are best suited for
exploratory research which is not the case of our study.

3. RESEARCH INSTRUMENT

Questionnaire: A Questionnaire is prepared and use to collect the information. The

majority of questions are close ended. Questionnaire is distributed to people to know
about their preferences, quality, demand etc. this is one of the easiest method of
collecting information.

4. SAMPLING PLAN

After deciding on the research approach and instrument, we must design a

sampling plan. This plan calls for three decisions.

a) Sampling unit:- Here we define what is to be surveyed i.e. the target

population that will be sampled. In our case the journal public in cities
& towns come under the sampling unit.

b) Sample size:- Large sample give more reliable results. In our study 50
customers were surveyed in LUCKNOW.

c) Sampling Procedure:- area sampling is using because it is not

practically possible to visit all places of India therefore LUCKNOW
chosen for survey.

5. CONTACT METHOD

In this decision is taken that how the object should be contacted i.e. whether
by mail questionnaires, telephone, interviews. In our research personal
interview is the most convenient and reliable method.
6. COLLECTION OF THE INFORMATION

The data collection phase of the marketing research is most expensive and
most error prone process. There can be error some respondent can give biased
or dishonest answer from collection of information. The researcher personally
goes to customer to collect the reliable data. Here all knowledge of the
researcher about that field comes to test the ingenuity of the research.

Here we got the experience of working professionally and independently on

the road which gives some taste of practical marketing. We also got a lot
exposure about the market. The present study undertake is descriptive in
nature and in this study questioning people with regular expertise in that are
being used.

Limitations of Research:-

The research was subjected to following limitations:-

 The survey can not be termed 100% accurate due to lack of time.

 The lack of candidates of respondent towards answering the

Questionnaire in few cases may have reduced the accuracy of survey
to some extent.

 There is more measure to check out whether the information provided

by the consumer is correct or not.
 OBJECTIVES OF THE STUDY

The subject matter for this research Project is to study the consumer behavior towards the
APPLE & SAMSUNG mobiles. This project consists of different objectives. They are as
follows::-

 To know about the consumer preference level associated with APPLE &
SAMSUNG mobiles.

 To find out the customer satisfaction towards APPLE & SAMSUNG

 To know which advertisement media puts more impact on the buying decision of
customer.
 Chapter - VI
Analysis and Interpretation of Data
 ANALYSIS & INTERPERATION

1. Which model is best?

Answer Percentage(%)

Apple 60

Samsung 40

INTERPRETATION

Out of 100 respondents 60 says APPLE mobile i-phones are best while 40 were says
Samsung.
 2. Why do you prefer APPLE or Samsung?

Answer Percentage(%)

Feature 36

Look 12

Quality 37

Price 15

INTERPRETATION

Out of 100 respondent 36 prefer their mobiles for features, 12 prefer look , 37 prefer their
mobile quality & 15 prefer their price in the market.
 3. Which provide you better touch?

Answer Percentage(%)

Apple 53

Samsung 47

INTERPRETATION

Out of 100 respondent 53 says APPLE touch is better while 47 says Samsung.
4. Which among has more features?

Answer Percentage(%)
Apple 61
Samsung 39

INTERPRETATION

Out of 100 respondent 61 says APPLE has more features rather than Samsung.
5. Are you satisfied with price of APPLE or Samsung?

Answer Percentage(%)
Yes 78
No 22

INTERPRETATION

Out of 100 respondent 78 respondents are satisfied with their particular mobile
 while only 22 were not satisfied.

6. Which among these provide you better after sale?

Answer Percentage(%)
Apple 74
Samsung 26

INTERPRETATION

Out of 100 respondents 74 says APPLE provides better service after sale while only 26
says Samsung.
7. What will more prefer in APPLE or SAMAUNG NOTE?

Answer Percentage(%)
Apple price less than Samsung 34
Look 54
Weight 12

INTERPRETATION

Out of 100 respondent 34 prefer APPLE Lumia 800 because their price less than
Samsung Note, while 54 prefer their models because of their Look, & 12
respondents prefer their models for weight.
8. Which provide good battery back-up?

Answer Percentage(%)
Apple 69
Samsung 31

INTERPRETATION

Out of 100 respondent 69 says APPLE provides better battery back-up while 31
says Samsung.
9. Which provide more accessories with it?

Answer Percentage(%)
Apple 55
Samsung 45

INTERPRETATION

Out of 100 respondent 55 says APPLE provide more accessories with it while
only 45 says Samsung provide more accessories with it.
10. Which would you prefer business point of view?

Answer Percentage(%)
Apple 55
Samsung 45

INTERPRETATION

Out of 100 respondent 55 says APPLE handsets best business point of view while
only 45 says Samsung mobiles business point of view.
11. Which among these have more models and design?

Answer Percentage(%)
Apple 55
Samsung 45

INTERPRETATION

Out of 100 respondents 55 says APPLE gives more models & designs while other
45 respondents in favors of Samsung.
12. Which gives better camera celerity?

Answer Percentage(%)
Apple 62
Samsung 38

INTERPRETATION

Out of 100 respondents 62 says APPLE gives better camera celerity while only 38
respondents Samsung gives better camera celerity.
13. Which give more GPRS speed?

Answer Percentage(%)
Apple 58
Samsung 42

INTERPRETATION

Out of 100 respondents 58 says APPLE give more GPRS speed while other 42 in
favors of Samsung.
14. Which cell companies have better sound quality?

Answer Percentage(%)
Apple 69
Samsung 31

INTERPRETATION

Out of 100 respondents 69 say APPLE have better sound quality & other 31 says
Samsung provide better sound.
15. Which company provides best dual sim i-phones?

Answer Percentage(%)
Apple 15
Samsung 79
Others 6

INTERPRETATION

Out of 100 respondent 79 in favors of Samsung &

15 say APPLE provides better dual sim i-phones & only 6 in ther favors of other
companies.
16. Which company provides better 3G/WI-Fi services?

Answer Percentage(%)
Apple 60
Samsung 40

INTERPRETATION

Out of 100 respondents 60 says APPLE provides better 3G/Wi-Fi services while
only 40 in the favors of Samsung.
17. Which model is comfort caring?

Answer Percentage(%)
Apple 67
Samsung 33

INTERPRETATION

Out of 100 respondents 67 says APPLE mobiles are comfort caring while only 33
says Samsung mobiles are comfort caring.
 18. Which companies provide more models with touch & keypad?

Answer Percentage(%)
Apple 45
Samsung 55

INTERPRETATION

Out of 100 respondents 55 says Samsung provide more models with touch & keypad
while 45 says APPLE provide more models with touch & keypad.
19. Which company provides better flap i-phones?

Answer No: people

Apple 70
Samsung 30

INTERPRETATION

Out of 100 respondent 70 says APPLE provide better Flap i-phones while 30 says
Samsung provide better flap i-phones.
20. Which companies provide more service sale counter nearby?

Answer No; of people

Apple 69
Samsung 31

INTERPRETATION

Out of 100 respondent 69 says APPLE provide more service sale counter nearby
while only 31 in the favors of Samsung.
 21. Which company has more cell memory storage?

Answer Percentage(%)
Apple 68
Samsung 29

Other 3

INTERPRETATION

Out of 100 respondents 68 says APPLE mobiles has more memory storage & 29
respondents says Samsung mobiles while only 3 respondents in favors of others.
 22. Which company have technical maintain & additional (like long life)?

Answer Percentage(%)
Apple 65
Samsung 35

INTERPRETATION

Out of 100 respondents 65 in the favors of APPLE & only 35 in favors of Samsung.
23. Which are reasons for using LUMIA 800 or SAMSUNG NOTE?

Answer Percentage(%)
Wap 21
Just to talk it 18
Download files 13
GPRS function 12
Receive mails 20
Others 16

INTERPRETATION

Out of 100 respondents 21 says they using their mobile models reason because of
good wap service , 18 using just to talk it , 13 using for download files , 12 in the
favor of GPRS function , 20 says they using their mobile models because their
handsets have receiving the mails , 16 respondents in the favors of Others.
24. Why do you like brand you choose?

Answer Percentage(%)
Function 26
Advertisement 20
Brand name 19
Quality 19
Price 14
Appearance 02

INTERPRETATION

Out of 100 respondents 26 like their brand because of their functions , 20

respondents choose their brand because of Advertisement , 19 in the favors of
Brand name , 19 in the favors of quality , 14 in the favors of Price , & only 2
 like respondents like their brand because of Appearances.

25. What kind of model do you prefer?

Answer Percentage(%)
Slim 33
Thick 25
Light 14
Medium 11
Large 11
Heavy 06

INTERPRETATION

Out of 100 respondents 33 says they prefer Slim models , 25 prefer thick
handsets , 14 respondents prefer light mobiles , 11 prefer medium , 11 prefer
large handsets & only 6 respondents says they prefer Heavy mobiles.
 Chapter - V :

Findings, Conclusion and Suggestions

 FINDINGS AND SUGGESTIONS

• Few years back mobile i-phones were not common among the
consumer. But with the mobile revolution now we can find almost
every consumer with mobile phone.

• Most of the consumer prefers APPLE then SAMSUNG and least prefer other.

• Mostly the consumers are satisfied with the services

Provided by the different mobile companies.

• Maximum numbers of respondents were attracted towards the price

& battery and the least like the style and memory.

• Maximum number of consumer are loyal to there particular

service providers and they were using there mobile since 1 to2 years.
 CONCLUSION

• Working on APPLE & Samsung project gave me a opportunity to apply

my skills and knowledge, which We had gained previously.

• It gave us a opportunity to see working an organization.

• It was an amazing experience with learning all the way, which help us
to brush up our knowledge.
Bibliography
 BIBLOGRAPHY

BOOKS:-

Marketing research – G.C.Beri

Research Methodology – C.R.Kothari

Principal of Marketing – Philip Kotler.

WEB RESOURCES:-

www.Apple .com

www.samsung.com

www.google.com

www.yahoo.com

www.scribd.com

www.thestalwart.com
ANNEXURE
 ANNEXURE

SECTION A PERSONAL INFORMATION

1. Name ______________________

2. Gender

○ Male ○ Female

3. Age

□ 10-20 □ 30-50

□ 20-30 □ 50 & Above

4. Marital Status

◊ Single ◊ Married

5. Educational Status

□ Matric □ 10+2

□ Graduation □ Post-Graduation

6. Occupation

◊ Self Employee ◊ Professional

◊ Student ◊ Others

7. Income Level

◌ < 10000 ◌ < 20000

◌ < 40000 ◌ > 40000

8. Residence
 □ Urban □ Rural

9. Contact No: ________________

10. E mail id:

SECTION B ABOUT MOBILE

1. Which model is best ?

□ APPLE

□ Samsung

2. Why do you prefer APPLE or Samsung ?

∆ Best features ∆ Best look

∆ Best Quality ∆ Price

3. Which provide you better touch?

‫ ﬦ‬Apple

‫ ﬦ‬Samsung

4. Which among has more features?

Ὸ Apple

Ὸ Samsung

5. Are you satisfied with price of APPLE or Samsung?

⌂ Yes

⌂ No

6. Which among these provide you better after sale service?

∆ Apple ∆ Samsung

7. What will be more preferred in APPLE LUMIA 800 or Samsung NOTE?

⌂ Lumia price less then Samsung Note

⌂ Look

⌂ Weight

8. Which provide good battery back-up?

⌂ Apple ⌂ Samsung

9. Which provide more accessories with it?

○ Apple ○ Samsung

10. Which would you prefer for business point of view?

◊ APPLE ◊ Samsung

11. Which among these have more models & designs?

□ Apple □ Samsung

12. Which gives better camera clarity?

‫ ﬦ‬Apple ‫ ﬦ‬Samsung

13 Which gives more GPRS speed ?

∆ Apple ∆ Samsung

14 Which cell companies have better sound quality?

⌂ Apple ⌂ Samsung

15 Which company provides best Dual sim cell i-phones?

⌂ APPLE ⌂ Samsung

16 Which companies provide better 3G/WI-Fi services?

 ◊ Apple ◊ Samsung

17 Which mobile is comfort carriying?

◊ Apple ◊ Samsung

18 Which company provides a more models with touch screen & keypad?
⌂ Apple ⌂ Samsung

19 Which company provides better flap cell i-phones?

⌂ Apple

⌂ Samsung

20 Which company provides more Service sale counter nearby?

○ APPLE ○ Samsung

21 Which companies have a more cell memory storage?

○ Apple ○ Samsung

22 Which companies have technical maintaince & additional (like long life)?
□ Apple □ Samsung

23 Which are the reasons for using the APPLE LUMIA 800 or SAMSUNG NOTE?
◊ Wap ◊ GPRS functions

◊ Just to talk on it ◊ Receive email & Mms

◊ Download files ◊ others

24 Why you like brand you choose above?

∆ Advertisement ∆ Appearance

∆ Functions ∆ Price

∆ Brand Name ∆ Quality

25 What kind of model you prefer?

⌂ Slim ⌂ Medium
⌂ Thick ⌂ Light

⌂ Large ⌂ Heavy