Comparison-nokia and Samsung

Case Study of Nokia & Samsung

PROJECT REPORTON

CASE STUDY OF NOKIA & SAMSUNGCOMPARATIVE ANALYSIS BETWEEN NOKIA &

SAMSUNG

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

Under Punjab Technical University, Jalandhar

SUBMITTED BY

ACKNOWLEDGEMENT

“World acknowledge those who acknowledge the world”

The satisfaction that accompanies the successful completion of any task would be incomplete

without mentioning the name of those people who made it possible, because success results


not only from hard work but also from undeterred missionary zeal, steady fast determination,

importuned concentration, dedication and above all adept’s advices

I am much obliged to for giving me an opportunity and a congenial atmosphere to learn while

working without bounds. Next I would like to express my profound sense of gratitude to,

project supervisor for reviewing the coding, advising, suggestions, guidance, motivation and

extending keen interest towards me throughout the project as well as the report The

department has offered a unique and a great opportunity of learning and hands on experience,

which will be invaluable for me in the years to come.

Last, but not the least, many thanks are also due to all others who remained behind the scene

but whose work has been consulted and referred to in this project.

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1.1. TABLE OF CONTENTS

CONTENTS PAGE NO.

CHAPTER 1 – INTRODUCTION 4-301.1. Overview of Industry as a whole 4

1.2. Profile of the Organization of Nokia 10

1.3. Problems of the Organization of Nokia 18

1.4. Competition Information of Nokia 19

1.5. S.W.O.T Analysis of the Organization of Nokia 24

1.6. Profile of the Organization of Samsung 25

1.7. Marketing Strategy of Samsung 29

1.8 S.W.O.T Analysis of the Organization of Samsung 30

CHAPTER 2 - OBJECTIVES & METHODOLOGY 31-37

2.1. Significance 31

2.2. Managerial usefulness of the study 32

2.3. Objectives 33

2.4. Scope of the Study 34

2.5. Limitations of the Study 35

2.6. Research Methodology 36

CHAPTER-3 CONCEPTUAL DISCUSSION 38-42

CHAPTER-4 DATA ANALYSIS 43-53

CHAPTER-5 FINDINGS & RECOMMENDATIONS 54-56

ANNEXURE 57-59

APPENDIX 60-63

BIBLIOGRAPHY 64

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CHAPTER-1

INTRODUCTION

OVERVIEW OF INDUSTRY AS A WHOLE

In today's world, most people communicate through the use cellular phones. It's hard to

believe that fifteen years ago cell phones were a rarity. Below is a history chronicling the

dawn of the cell phone to its current state. 1843-Faraday exposed his great advances of

nineteenth-century science and technology and his discoveries have had an incalculable effect

on technical development toward cellular phone development.

1865 - Dr. Mahlon Loomis of Virginia, a dentist, may have been the first person to

communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted

telegraphic messages at a distance of 18 miles between the tops of Coshocton and Beorse

Deer Mountains, Virginia.

1973 - Dr Martin Cooper is considered the inventor of the first portable handset. Dr. Cooper,

former general manager for the systems division at Motorola, and the first person to make a

call on a portable cellular phone.

1973 - Dr. Cooper set up a base station in New York with the first working prototype of a

cellular telephone, the Motorola Dynastic. Mr. Cooper and Motorola took the phone

technology to New York to show the public.

1977 - Cell phones go public. Public cell phone testing began. The city of Chicago was here

the first trials began with 2000 customers and eventually other cell phone trials appeared in

the Washington D.C. and Baltimore area. Japan began testing cellular phone service in 1979.

1988 - This year changed many of the technologies that had become typical in the past. The

Cellular Technology Industry Association (CTIA) was developed to lay down practical goals

for cellular phone providers. According to the Cellular Telecommunications Industry

Association, today there are more than 60 million customers with cellular phones, even

though wireless service was just invented nearly 50 years ago. The cellular business was a $3

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million market 25 years ago and has grown increasingly to close to a $30 billion per year

industry.

About the Industry

The cell phone industry has evolved greatly in the past 10 years. 10 years ago only the rich

could afford cell phones, and they looked like boxes more than some thing that could fit in

your pocket. “Today, more people have cell phones than fixed telephone lines, both in the

United States and internationally. There are more than one billion cell phone users

worldwide." Cell phones have now become a part of every day life. Without cell phones we

would be lost in our high tech world. Americans spend 7 hours a month on cell phones. The

effects of new technology have had positive effects in school, too. Cell phone use is getting

more and popular. "Some 85 million U.S. residents—30 percent of the population—have

joined the mobile-phone revolution.” There are already 1 billion cell phone users world wide.

Between 2010 and 2020 it will be hard to find a person with out a cell phone.

They are now bought for the fact that they are used in emergency situations. “Nearly 156,000

wireless emergency service calls were made every day—about 108 calls per minute.” Parents

are now buying them for their children so they know where they are all the time . Every

company has their different Marketing Strategies. Now I am going to discuss the Marketing

strategies of Nokia.

India’s Tele-density in January 2008 neared 12% with the subscriber base nearing the 130mn

mark. During January 2008, record 5mn subscribers were added as against 4.92mn

subscribers in December 2007. This strong growth could be attributed to lifetime validity

cards launched by almost all operators. During the first 10 months of FY06, 31.41mn

subscribers have been added. In the fixed segment, a total of 0.28mn subscribers were added

during January 2008, taking the subscriber base of fixed line services to 49.21mn. In the

mobile segment, total additions during the month summed up to 4.69mn with highest ever

GSM additions of 3.52mn and CDMA additions of 1.17mn. During the first 10 months of

FY08, 28.39mn subscribers have been added

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Telecom Industry in India

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Nokia 60%

Motorola 10%

Siemens 02%

Sony Ericsson 03%

Samsung 10%

Philips 10%

Others 05%

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http://www.google.co.in/imgres?imgurl=http://www.lnkr.net/wp-content/uploads/2008/04/nokia-beautiful-to-use-trio.jpg&imgrefurl=http://www.lnkr.net/archives/rosh/technology/nokia-6600-slide-6600-fold-and-3600-slide/306&usg=__BtrdMM2FJdF0z7Cn7ojEGBWrWdM=&h=494&w=600&sz=72&hl=en&start=8&um=1&itbs=1&tbnid=DWbujmDXieUL2M:&tbnh=111&tbnw=135&prev=/images%3Fq%3Dpics%2Bof%2Bnokia%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1


1.2. PROFILE OF THE ORGANIZATION

Company Profile

Nokia's history starts in 1865, Due to the European industrialization and the growing

consumption of paper and cardboard Nokia soon became successful. Nokia’s Cable Work's

Electronics department started to conduct research into semiconductor technology in the 1960

´s. This was the beginning of Nokia’s journey into telecommunications.

Nokia today is a world leader in mobile communications, driving the growth and

sustainability of the broader mobility industry. Nokia connects people to each other and the

information that matters to them with easy-to-use and innovative products like mobile

phones, devices and solutions for imaging, games, media and businesses. Nokia provides

equipment, solutions and services for network operators and corporations. The company

includes four business groups; Mobile Phones; Multimedia; Networks and Enterprise

Solutions. In this project I will be focusing only on the mobile Phone business of Nokia in

India.

Nokia Corporation engages in the manufacture of mobile devices and mobile networks. It

also provides equipment, solutions, and services for network operators, service providers, and

corporations. The company operates in four segments: Mobile Phones, Multimedia,

Enterprise Solutions, and Networks. The Mobile Phones segment offers mobile phones and

devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The

Multimedia segment enables to create, access, and share multimedia in the form of advanced

mobile multimedia computers and applications with connectivity over multiple technology

standards. The Enterprise Solutions segment offers various products and solutions, including

enterprise-grade mobile devices, underlying security infrastructure, software, and services for

businesses and institutions. The Networks segment provides network infrastructure,

communications, and networks service platforms, as well as professional services to

operators and service providers. It focuses on the GSM family of radio technologies;

networks with Internet Protocol and multi access capabilities; and professional services. The

company also develops mobile WiMAX solutions. Nokia sells its products to operators,

distributors, independent retailers, and corporate customers. It has its operations in Europe,

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the Middle East, Africa, China, the Asia-Pacific, North America, and Latin America. The

company was founded in 1865 and is based in Espoo, Finland.

Vision: Life Goes Mobile Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice Goes

Mobile! As history shows, this vision became reality in an incredibly short amount of

time. With more than 1.6 billion mobile phone subscriptions globally – and more mobile

phones than fixed-line phones in use – shows that mobility has transformed the way

people live their lives

Business Mission: Connecting People By connecting people, they help fulfill a fundamental human need for social connections

and contact. Nokia builds bridges between people – both when they are far apart and face-

to-face – and also bridges the gap between people and the information they need.

As a market leader, the best contribution we can make to the global community is to conduct

our business in a responsible way. This belief drives our commitment to creating ethically

sound policies and principles that guide us in our work. Our Corporate Responsibility (CR)

agenda is framed around the Nokia Values and is carried out in all aspects of our work to

ensure customer satisfaction and respect, and also to assist us in embracing renewal and

striving for achievement. By striving to include all members of Nokia's community in this

process, we are demonstrating our overall commitment to the belief that responsibility is

everybody's business. In this section you will find information about our strategy and

approach, navigating the links above will give you more concrete information on our

Corporate Responsibility activities.

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Our VisionOur vision is a world where everyone is connected. With mobile subscriptions about to reach

four billion, we are closer to our vision than anyone could have imagined just a few years

ago. Our business benefits people, communities and the environment in new and exciting

ways. As our business expands, so do our responsibilities. This sense of corporate

responsibility (CR) is a fundamental part of who we are. Considering the wider impact of our

actions is embedded in the Nokia Values, which guide our behavior, and in the Nokia Code

of Conduct, which gives guidance to our everyday work. Global challenges such as climate

change and poverty concern us all. As a business that affects the lives of billions around the

world, Nokia is in a key position to offer solutions to these challenges. We bring the benefits

of mobile technology to more people in ways that reflect our values and our responsibilities.

Our impactsNokia is the world's number one manufacturer of mobile devices by market share and a

leader in the converging Internet and communications industries.

We make a wide range of devices for all major consumer segments and offer Internet services

that enable people to experience music, maps, media, messaging and games. We also provide

comprehensive digital map information through NAVTEQ and equipment, solutions and

services for communications networks through Nokia Siemens Networks. In 2008, Nokia's

net sales were EUR 50.7 billion and operating profit was EUR 5.0 billion. At the end of 2008,

we employed more than 128,445 people; had production facilities for mobile devices and

network infrastructure around the world; sales in more than 150 countries; and a global

network of sales, customer service and other operational units.

Corporate responsibilityCorporate responsibility is a fundamental element in Nokia’s business, brand and culture.

Nokia aims to set the standards for the industry through initiatives that not only make a

positive impact, but also make good business sense. The Nokia Code of Conduct commits us

to uphold high ethical principles in everything we do. We respect the principles set in

Universal Declaration of Human Rights and by the International Labor Organization and the

United Nations Global Compact. Communications is a relatively "clean’ industry. It is not a

high energy user, does not generate substantial pollution, and does not endanger people or

communities. But a responsible business needs to address its impacts and aim to make a

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positive contribution wherever possible. Environmental issues are our main priority. Climate

change is a serious threat which requires everyone to contribute to building a low carbon

economy. We believe that strong, early action is necessary and that we have an opportunity to

make a contribution to tackling climate change beyond the impact of our operations and our

products. Our environmental strategy sees Nokia among the world’s leading companies for

all aspects of environmental performance. We have three priorities: energy efficiency,

managing substances in our products, and take-back and recycling. We are also focusing on

developing mobile services to promote more sustainable lifestyles. Reflecting this

prioritisiation, our environmental data can be found in its own section here. We have also set

high ethical standards for our supply chain and our own factories. We seek to provide

consumers with accessible high quality products that meet their needs and to trade with our

customers responsibly. Above all, we aim to make a positive contribution to society at the

local and global level. Please refer to our key Issues for information on how we identify our

most important impacts.

Our valuesThe Nokia Way and Values: A flat, networked organization and speed and flexibility in

decision-making characterize the Nokia Way of working. Equal opportunities and openness

towards people and new ideas are also key elements we want to nourish. Nokia is

straightforward when dealing with customers and suppliers, and we always looks for

innovative ways of creating and introducing products and solutions to the market. We provide

individuals with a platform for personal growth in a challenging environment with a clear

vision, goals and shared management principles - the Nokia Way. The Nokia Way brings

together talented individuals who share these principles, and therefore share success. The

values of our company make us different. They provide a sense of direction for consistent

behaviour as employees and citizens of the world, and in our quest to become more of an

internet company. Through extensive employee engagement, we have renewed our values to

reflect our business and changing environment. They act as a foundation for our evolving

culture and are the basis of our operational mode. Living up to our values every day is our

shared philosophy.

Engaging you: For us, ‘engaging you’ incorporates the ‘customer satisfaction’ value and

deals with engaging all our stakeholders, including employees, in what Nokia stands for in

the world.

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http://www.nokia.com/A4942585





http://www.nokia.com/environment/our-responsibility/environmental-report-2008

http://www.nokia.com/environment/our-responsibility/environmental-strategy


Achieving together: ‘Achieving together’ is more than collaboration and partnership. As

well as trust, it involves sharing, having the right mind-set and working in formal and

informal networks.

Passion for innovation: ‘Passion for innovation’ is based on a desire we have to live our

dreams, to find courage and make the leap into the future through innovation in technology,

ways of working and through understanding the world around us.

Very human: Being ‘very human’ encompasses what we offer customers, how we do

business and the impact of our actions and behavior on people and the environment. It is

about being very human in the world - making things simple, respecting and caring. In short,

our desire is to be a very human company. For more information on the Nokia Way and

Nokia Values, go to Nokia as an employer within careers.

As approximately one in three phones in use is a Nokia phone, it’s safe to say our products

influence the lives of hundreds of millions of people.

Maximizing the benefits of mobile communication and minimizing potentially negative

effects requires commitment from governments, civil society, and the business sector.

However, we recognize that as a market leader with global operations, our potential impact,

and therefore our responsibility, is great. From a social growth and economic development

perspective, we acknowledge our impact and responsibilities throughout our value chain: in

our sourcing, product design, manufacturing, employee well-being, business partnerships,

recycling, community involvement, and communications. Through our product lifecycle we

respond to various environmental needs. Through employee relations, supply-chain

management, and consumer offerings we aim to have a positive social influence. Our overall

response to our stakeholders is to produce high-quality, safe products while upholding the

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http://www.nokia.com/careers/nokia-as-an-employer/nokia-way-and-values


law, protecting the environment, and following sound best practices. It is an expectation we

strive to meet.

Nokia India

Nokia has played a pioneering role in the growth of cellular technology in India, starting with

the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-

deployed network. Nokia started its India operations in 1995, and presently operates out of

offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad,

Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D

facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a

Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from

450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia

Siemens Networks). Today, India holds the distinction of being the second largest market for

the company globally.

R & D centersNokia has three Research & Development centers in India, based in Hyderabad, Bangalore

and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation

packet-switched mobile technologies and communications solutions to enhance corporate

productivity. The Center in Bangalore, the biggest R&D site in the country comprises S60

Software Organization, Common Technologies, Next Generation now called Maemo

Software, Productization and Software & Services.

NOKIA’S MARKET SHARE:

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Today, Nokia is the leader in mobile phone technology, although they have other

subsidiaries, namely ‘Nokia Networks’ and ‘Nokia Ventures Organization’, which, together

with Nokia Mobile Phones, form ‘Nokia Group’. Nokia also launched ‘Vertu Ltd.’ in 2009,

the world’s first luxury mobile phone company, selling gold and platinum phones at

exorbitant prices.

Last year, Nokia has once again retained its top position in the market. It enjoys a market

share of 32.6%, followed by Samsung (because of their CDMA phones) with 29.6% and LG

with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5% market share, with

Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with 1.4%; they are the fourth,

fifth, sixth and seventh largest players in the domestic handset market. In the GSM handset

segment, Nokia has 58% market share, with Samsung at 14.7%, Motorola at 14.1%, and Sony

Ericsson at 7.1%. Thus, Nokia has a larger presence in the GSM market than the CDMA

market.

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1.3. PROBLEMS OF THE ORGANIZATION

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson,

Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I have

focused my research on Nokia and also on one of its major competitor; Sony Ericsson since

these are very prominent players in the Indian market. Nokia has saturated the urban market

including the B and C class cities and is now targeting potentially untapped markets. Sony

Ericsson on the other hand has chosen to focus its energies on the B and C class cities since

which it had not ventured into so far.

The following are the major problems faced by Nokia in the Indian cellular market:-

Identify cause of problems faced Nokia to enable the management to train the

employees in handling the problems as well as solving the problem in a satisfactory

manner.

Segregate identified problems of Nokia into problems requiring staff development

action such as training and into problems requiring other management actions, so that

these problems are accurately addressed.

Prioritize training actions in accordance to where the training need is more urgent.

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1.4 COMPETITION INFORMATION

Sony Ericsson: - Ericsson in one of the largest supplier of mobile systems in the world

and support all major standards for wireless communication. They drive the telecoms

industry and are shaping the future. The world’s 10 largest mobile operators are among

Ericsson's customers and some 40% of all mobile calls are made through its systems.

Ericsson has been active worldwide since 1876 and is present in more than 140 countries.

Headquarters are located in Stockholm, Sweden. Various Ericsson phones available in market

example are given below.

Ericsson R520 EricssonT39

Ericsson T60D / T60LX

Samsung: - In 1996, Samsung Electronics' Telecommunication Network Division became

the first in the world to utilize commercialized CDMA

services. By year 2002, Samsung Electronics has grown

into a world's telecommunications network leader, ranking

third in the world's wireless communications market share

and 55% in the domestic market. Various Samsung’s

phones available in market example are given below.

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Motorola: - Motorola is a global leader in wireless, automotive and broadband communications. Motorola's Intelligence Everywhere. Motorola, Inc. (NYSE: MOT) today announced it was selected by Microsoft Corp. as the recipient of the North American Windows Embedded CE Partner Excellence award in the original equipment manufacturer (OEM) category. . Various Motorola’s phones available in market example are given below.

Panasonic: - Panasonic, a creator of numerous electronic devices including wireless

handsets, have a corporate attitude that puts the consumer first. Panasonic continues to

produce creative devices that "resolve the challenges in business and personal life".

LG:- Headquartered in San Diego, California, LG is the North American wireless division

of LGE, a business unit of LG Electronics (LGE) and global manufacturer of electronics

products based in Seoul, Korea. LG entered the cellular phone market in 1998 and has

expanded its market share to nearly 19% of CDMA wireless handsets sold, and placed third

in the U.S. at the end of 2002, according to analysts at Strategy Analytics. Various

Motorola’s phones available in market example are given below.

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Marketing Strategy For Nokia

For this project I have been instructed to come up with a marketing strategy for an existing

company/product I have chosen to do Nokia communications, particularly the mobile phone

sector of Nokia's business. To do this properly I will need to:

* Appropriately identify, collect and use primary and secondary data that is relevant to the

marketing strategy of Nokia.

* Produce a clear analysis of the external influences affecting the development of a marketing

strategy.

* Complete a realistic rationale for the development of a coherent marketing mix for Nokia

communications.

* Show a full understanding of a marketing strategy for Nokia with a clear understanding of

marketing principles.

* Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing

models and tools.

Introducing the product

Nokia is a communications based company, which focuses on mobile telephone technology.

When mobile phones first became available on the market the models were very basic with

the best technology being SMS messaging (sending written "text messages" from one phone

to another).

Then the next advance in technology was being able to put different faces on your phone

(different style covers for the front and back of your mobile device) and after that the

technological advances have come thick and fast, with advances such as:

* MMS

* WAP (internet)

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* Polyphonic ringtones

* Predictive SMS (where the phone will finish off a word for you if it can guess what you are

typing)

* Camera phones and

* Video recorders

Competition in the market

With all this technology available in the communications market it is obvious that Nokia will

have lots of competition, they include:

* Sony Ericsson

* Samsung

* Motorola

* Siemens

* Panasonic

* NEG

* Sagem and

* Toplux

With all of these competitors in the market Nokia must keep ahead of the game...

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1.5 S.W.O.T ANALYSIS OF NOKIA

Strengths Is a dominant player in the smart phone market via its majority ownership of Symbian

and its proprietary Series 60 user interface which are projected to represent majority of

the 100M smart phones sold in the next 4 years.

33% market share still the largest cell phone vendor by far, with double the market share

of nearest competitor

Size should enable Nokia to amortize R&D costs and to get cost advantages

Brand position: probably one of the top 20 brands in the world

Weaknesses The N-gage is considered a flop.

Being the market leader and its increase role in Symbian is giving Nokia a bad image,

much like Microsoft in the PC industry.

Slow to adopt new ways of thinking: good examples are clamshell phones which are

preferred by many customers. Nokia was reluctant to produce a clamshell until this year,

when it launched its first model.

Opportunities Increase their presence in the CDMA market, which they are just entering, as well as 3G

and Edge

New growth markets where cell phone adoption still has room to go, including India and

other countries.

Leverage its infrastructure business to get preference and a stronger position with carriers

Threats Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC

and others.

Asian OEMs who are entering the market very aggressively (TCL, nGo Bird)

ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the

handset vendor. Operators want to lessen their dependency on handset vendors and the

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dominance of Nokia. Orange, O2, and many other operators globally are selling their own

brand of phones.

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1.6. PROFILE OF THE ORGANIZATION

Company ProfileIn 1938 the Samsung’s fonder byung –chull lee ser 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 become a co-operation in 1951. humble beginnings.

From 1958onwards Samsung began to expand into other industries such as financial, media,

chemical and ship building throughout the 1970’s .in 1969, Samsung electronics was

established producing what Samsung is most famous for television, mobile phones

(througout90’s),radios, computer components and other electronics devices .

1987 founder and chairman,byung-chull lee passed away and kun-hee lee took over as

chairman. In the1990’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 business shrunk in size and Samsung was no exception. They sold

business to relieve debt and cut employees down lowering personnel by 50,000. but thanks to

the electronic industry they manage to curb this and continue to grow.

The history of Samsung and mobile 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.then they developed smart phone and a phone combined mp3 player towards the

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end of the 20th century .to this date Samsung are dedicated to the 3g industry . making video,

camera phones at a speed to keep up with consumer demand .Samsung has made steady

growth in the mobile industry and are currently second but competitor Nokia is ahead with

more than 100%increase in shares.

VISION OF THE COMPANYLeading the digital convergence revolution

“GROWING TO BE THE BEST”

As a part of vision Samsung has mapped out a specific plan of reaching $400 billion in

revenue & becoming one of the world’s top 5 brands by 2020

MISSION OF THE COMPANY

“DIGITAL –E COMPANY” excited about future to serve better services to the people

in the market of telecommunications

THE SAMSUNG PHILOSOPHYAt Samsung we follow a simple business philosophy to devote our talent and technology to

creating superior products and services that contribute to a better global society. Every day

our people bring this philosophy to life . our leaders search for the brightest talent from

around the world ,and give them the resources they need to be the best at what they do . the

result is that all of our products from memory chips that help business store vital knowledge

to mobile phones that connect people across continents have the power to enrich lives and

that’s what making a better global society is all about.

OUR VALUESWe believe that by living by strong values is the key to business.

At Samsung a rigorous code of conduct and these core values are at the heart of every

decision we make .

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PEOPLE Quite simply, a company its people.

At Samsung ,we are dedicated to giving our people a wealth of opportunities to reach their

full potential

EXCELLENCE Everything we do at Samsung is driven by an unyielding passion for

excellence and an unfaltering commitment to develop the best products and services on the

market.

CHANGE In today’s fast paced global economy, change is constant and innovation is

critical to a company’s survival. As we have done for 70 years, we set our sights on the future

,anticipating market needs and demands so we can steer our company towards long term

success .

INTIGRITY Operating in an ethical way is the foundation of our business .everything we

do is guided by a moral compass that ensures fairness respect for all stakeholders and

complete transparency .

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CO-PROSPERITY A business cannot be successful unless it creates prosperity and

opportunity for others .Samsung is dedicated to being a socially and environmentally

responsible corporate citizen in every community where we operate around the globe.

PRINCIPLES OF THE COMPANY

We comply with laws and ethical standards.

We respect customers, shareholders and employees.

We are socially responsible corporate citizen.

We care for the environment health and safety.

We maintain a clean environmental culture.

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SAMSUNG COMPETITORS

PRODUCTS Samsung’s

global m/s

competitors M/S year source

DRAM 34.3% Hynix 21.6% 2009 26

NAND flash 40.4% Toshiba 28.1% 2008 27

Large size

LCD panel

26.2% LG display 25.8% 2009 28

Active matrix

OLED

90.0% LG display 2008 29

Lithium iron battery 19% Sanyo 20% 2009 30

LCD monitor 16.1% Dell 14.6% 2008 31

Hard disk drive 9.5% Seagate

technology

34.9% 2007 32

Multifunction printer 16.4% HP 19.2% 2009 33

Television

sets(LCD,PDP,CRT)

23% LG

electronics

13.7% 2009 34

Mobile phones 21% Nokia 37.8% 2009 35

PDP panel 30.5% LG display 34.8% 2008 37

MARKETING STRATEGY OF SAMSUNG

Aggressively hawking flips tops and clamshells with polyphonic ring tones and color

screen.

Nationwide distributer and retail presence in the consumer durable market.

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Samsung has been associated with the Lakme India fashion week for its mobile

phones the company used the LIFW 2005 as a platform to launch D-500,world’s best

mobile phone in the Indian market.

Set up a hand set manufacturing facility in India

S.W.O.T ANALYSIS OF THE COMPANY

STRENGTHNew product concept to rollout in five month.

Catching the pulse of the consumer offering design & understanding emotions.

Heavy investments in technology.

Focus on innovative products.

WEAKNESSNot proactively coming out with newer mobiles.

Lack in product differentiation.

Different models at different price points.

Focus on mass market.

not very user friendly designs

OPPORTUNITIES Distinguish its service from competitors offer product variation.

Demand for cell phones driven by the servers providers or carriers.

Tie up with service providers lowering the price of the phone just by $20.

THREATSMotorola’s dominance in the US the European market controlling more than world

market.

Aggressive competitors including Sony Erikson, Siemens eating into its share.

Not keeping track of the new trends in the market.

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Not an accessory and fashion statement.

CHAPTER-2

OBJECTIVES AND METHODOLOGY

2.1 SIGNFICANCE OF THE STUDY

The present study is quite significant because it discusses values cultures vision, mission and

strategies of two companies .Nokia and Samsung to make comparative analysis between

these two companies it identifies the current positions of the company .

The report finds that high quality and advanced technologies are important factor for

Nokia’s success moreover they are concentrating on ne area that is telecommunication while

Samsung is indulging in many areas

Moreover the other finding is that Nokia’s financial position is surpassing its competitors in

the telecommunications report concludes that Nokia has established its leadership in telecom

companies Samsung is gaining its area in style point of view or advanced features in their

products.

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2.2 MANAERIAL USEFULLNESS OF THE STUDY

Managerial usefulness of the study is to analyse the comparative study between Nokia and

Samsung. compare between there market strategies and to know about there vision mission

and there future plans the respondents were discussing the questions prior to reply thus there

could be biasness different promotional schemes were not known by the respondents.

The customer analysis of this coursework highlighted that the upper segment of the

population are the major consumers of mobile phones extensive research was conducted into

yhe strategies being implemented for the rural market .the prominent brands in Indian cellular

phones are Nokia and the Samsung .

Nokia has the single largest market share in India of 60%and the we have noticed that Nokia

is the only competitor of Samsung but Nokia’s major competitor is Sony Ericson since these

are very prominent players in the market.

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2.3 OJECTIVES OF THE STUDY

To know about the cellular industries.

To help consumers to know about the companies their products and the future over

comings

To know about the brand Nokia and the Samsung their products, market strategies,

values mission adopted in the cellular companies.

To know consumer behavior towards Nokia and Samsung.

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2.4. SCOPE OF THE STUDY

As learning is the human activity and is as natural ,as breathing despite of the fact the

learning is all pervasive in our lives, psychologists do not agree on how learning takes

place .how individuals learn s a matter of interest to marketers they want to teach consumers

in their roles as their roles as consumers. They want consumers to learn about their products

product attributes, potential consumers benefit, how to use, maintain or even dispose of the

product and the new ways of behaving that will satisfy not only the consumer needs, but the

marketer’s objectives.

The scope our study restricts itself to the analysis of CONSUMER BEHAVIOR, perception

of Nokia and Samsung.

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LIMITATIONS OF THE STUDY

The findings of the study will be based on opinion of the respondents, which may be

based.

The study is confined to rohini residential areas

Lack of time and finance may prevent from carrying out in depth study.

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2.6 RESEARCH METHDOLOGY Research comprise defining and redefining problems, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making deductions and reaching

conclusions; and at last carefully testing the conclusions to determine whether they fit the

formulating Hypothesis. In short, the search for Knowledge through Objective and

Systematic method of finding solutions to a problem is Research.

Research DesignType of Research: - Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main

characteristic of this method is that the researcher has no control over the variables; he can

only report what has happened or what is happening.

Data Source:

There are two types of data.

Primary Data:

The data was mainly obtained from the people feedback on the questionnaire which was

distributed by the group members at various places

Secondary Data:

The secondary data was obtained from various journals, internet, magazines etc.

Research Instruments

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Selected instrument for Data Collection for Survey is Questionnaire.

Sample DesignWho is to be surveyed? The marketing researcher must define the target population that will

be sampled.

The sample Unit taken by me; General public of different age group, different gender and

different professions.

Extent:-

Where the survey should be carried out?

I have covered entire residential area of Delhi city for the survey

Time Frame:-

When the survey should be conducted?

I conducted my survey for 1week

Sampling Frame:-

The source from which the sample is drawn

Sampling Technique: -

How should the respondent be chosen?

In the Project sampling is done on basis of Probability sampling. Among the probability

sampling design the sampling design chosen is stratified random sampling.

Because in this survey I had stratified the sample in different age group, different gender and

different profession

Sample Size/ Population Size: - How many people should be surveyed?

My sample size is 50

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CHAPTER-3

CONCEPTUAL DISCUSSION

CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

MEASURING CUSTOMER SATISFACTION

Organizations need to retain existing customers while targeting non-customers; Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products.

Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their

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perceived experience of performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Paraguayan, Zenithal and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of their perception and expectation of performance of the service being measured.

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METHODOLOGIES

American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data predicts stock market performance, both for market indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector, higher education and electronic mail.

The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model.

SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for its top-box approach and automotive industry rankings. J.D. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well. These include A.T. Kearney’s Customer Satisfaction Audit process, which incorporates the Stages of Excellence framework and which helps define a company’s status against eight critically identified dimensions.

For Business to Business (B2B) surveys there is the Info Quest box This has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket survey.

IMPROVING CUSTOMER SATISFACTION

Published standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute(TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their

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attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organization’s attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention.

CURRENT STRATEGIESIn my view, product development and market penetration are the strategies being

currently used by Nokia. Since Nokia operates in an extremely dynamic industry

where technology becomes obsolete in the span of six months or even less, Nokia has

taken to making forecasts every three months and revising their strategies

accordingly. The markets on which they are focusing for penetration include markets

with low mobile subscription rates relative to the size of the population, geographic

areas where it is more cost-effective to build wireless infrastructure than fixed-line

networks, and heavily populated areas. One of the ways they have implemented this is

the use of vernacular rendition of communication in their promotion campaigns to

appeal more closely to possible consumers. So if you are in Tamil Nadu, you would

hear the advertisements and other promotion campaigns in Tamil, and if in Karnataka

you would hear them in Karnataka. Nokia does not believe in restricting itself to just

basics. They intend to enter new product and service niches, which they expect will

emerge as technologies from diverse industries start to converge, especially in the

area of consumer multimedia. Their strategy is to explore, identify and extract

revenue from the most profitable and fastest growing segments of the consumer

multimedia business and its value chain by anticipating consumer needs in this area,

and developing innovative products and services. In the near term, they intend to

focus on imaging and games, where they have already introduced a number of

products. Their strategies to drive consumer multimedia will also consolidate their

strong position in the consumer voice market. While Samsung is focusing on only the

quality and the features of there products while Samsung introducing them as

aNationwide distributer and retail presence in the consumer durable market.

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There are no domestic players in the mobile phone industry at the moment. There is a larger

presence of international brands in the market. Therefore, competition in the Indian market is

primarily from the foreign companies. There is no indigenous competition as such. However,

as I will be discussing in the later sections, I have noticed that there is high brand loyalty to

these companies.

The various companies operating in the Indian market are:

Nokia

Sony Ericsson

Samsung

Motorola

Panasonic

.The major player is Nokia, on whom I will carry out intensive research, to help in

determining its relative strengths and weaknesses as well as its strategic approaches.

Nokia has a full range of mobile phones. They focus on the lower segment as well as the

higher-end segment of the market. They offer a variety of products in each range, with prices

varying according to how much the consumer is able to spend on a mobile phone. However,

they have phones which are targeted at the bulk of the population in general. For example, the

Nokia 1110i phone is in the lower price range, but its features and appearance are appealing

to the lower class as well as the middle class.

In the full range in India, Nokia has 29 models (out of which 2 are CDMA), whereas

comparatively Sony Ericsson has 18 models (all GSM), Motorola has 16 models and

Samsung has 10 GSM phones and 4 CDMA models.

Pest Analysis

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The PEST analysis is a Macro analysis which analyses the environment of a market. PEST is

an Acronym for Political, Environmental, Socio-cultural, and Technological. With these four

parameters, a marketer can get a very good idea about the market conditions, and if found

suitable the marketer can analyze the feasibility of venturing into the market.

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CHAPTER-4

DATA ANALYSIS1. Do you have any mobile phone

PARTICULARS NUMBER %AGEYES 50 100%

NO 0 0%

INTERPRETATION: All the respondents had mobile phone

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2. How many mobile phones do you have :

PARTICULAR NO. OF RESPONDENTS

1 37

2 13

3 0

3+ 0

INTERPRETATION Out of 50 respondents 37 says that they had 1 connection while 13 were having 2 connections

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3. Which mobile are you using ?

PARTICULAR NO. OF RESPONDENTS

NOKIA 27

SAMSUNG 16

OTHER 7

INTERPRETATION: Out of 50 respondents 27 were using NOKIA while 16 respondents were using MOTOROLA and 7 were using others.

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4. Are you satisfied with the services

PARTICULARS NUMBERSYes 41No 9

INTERPRETATION: Out of 50 respondents 41 respondents were satisfied with the services of there particular mobile while only 9 were not satisfied

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5. Which facility attracts you most ?

PARTICULARS NOKIA MOTOROLA OTHERSPRICE 29 12 9STYLE 14 15 21BATTERY BACK UP 36 36 7MEMORY 24 16 10OTHER 17 15 18

INTERPRETATION

Out 50 respondents most of the respondents prefer Nokia then Motorola and others

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6. Which advertisement media puts more impact on your buying decision ?

PARTICULARS NO. OF RESPONDENTSTV 28

MAGAZINES 04NEWPAPER 10INTERNET 05OTHERS 03

INTERPRETATION: Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers, 03 by others while 04 by magazines.

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7. From how long you are using this particular service mobile

PARTICULARS NO. OF RESPONDENTS1 102 253 11

More than 3 years 4

INTERPRETATION: Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2 year, 11 since 3 years while only 4 were using there mobile from more than 3 years.

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8. Would you like to change your current mobile in future ? PARTICULARS No. of RESPONDENTS

YES 18NO 32

INTERPRETATION: Out of 50 respondents 32 did not want to change there current while only 18 respondents want to change there mobile.

Q.9What qualities of mobiles are important to you while buying mobiles? Rank them in

order of 1 to 9, where 1 being the most important and 9 being the least important.

Criteria RANK IN( %)

Most preferred prefer No effect

Maintenance 80 15 5

Durability 64 24 12

Style/ Design 72 26 2

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Price 30 60 10Uniqueness 14 12 74Comfort (edges) 92 08 0

FM 94 4 2Table of figure no. 4.5

Interpretation The following are important criteria as suggested by the respondents,

Maintenance 80%, 15%, 5%, Durability 64%, 24%, 12%, Style/ Design 72%, 26%, 2%, Price

30%, 60%, 10%, Uniqueness 14%, 12%, 74%, Comfort (edges) 92%, 08%, 0% and

FM 94%, 4% and 2%.

Q.10 Rate the following brands based on your perception on the mentioned criteria on a

scale of 1-6 where,

1= Below Average 2=Average 3= Satisfactory

4= Good 5= Very good 6= Excellent

Criteria Nokia Sony Ericsson BenQ Panasonic Samsung

Maintenance 5 4 2 1 3

Durability 6 5 2 1 3

Style/ Design 4 4 3 2 5

Color 5 4 3 3 4

Size 4 4 3 4 5

Price 4 2 2 3 5

Availability 4 4 1 1 3

Lightweight 4 3 3 4 5

Comfort 5 5 3 3 4

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Table of figure no. 4.6

Interpretation Nokia is the clear leader in this question of preference asked to the respondents.

Q.11 Are you currently using Nokia? What is your opinion about it?

Effect No. of people (%)

Yes 64

No 36

Table of figure no. 4.13

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Interpretation 64 % are using Nokia mobile phones whereas rest of the people are using other mobile

phones.

Suggestions given by the people ……..

During our survey we asked the people to give some suggestions to the compananies

there is similar suggestion for both the companies given by 25 peoples that they

should not increase their prices. And 1 suggestions given by only 1 person out of 50

that is cellular companies that there should be some function to indicate the person

is driving this will not avoid accidents during driving.

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CHPATER-5

FINDINGS AND RECOMMENDATIONS

FINDINGS Nokia introduces a new phone into the market every two or three months.

In Nokia's human resource management, the features are to improve employee's

techniques by regularly training and developing effective teamwork. While Samsung

always improving model of their product with different features

Nokia's financial position is surpassing its competitors in telecommunication.

While Samsung in indulging itself in more than telecom it has more products more

than mobiles.

Nokia has established its leadership in mobile phone market according to its

successful marketing strategies and internal management. while Samsung is always

trying to indulge with media .

Nokia's philosophy is to learn continuously, to satisfy consumers, and to respect

individual and pursue professionalism.

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RECOMMENDATIONAfter analyzing all the data we have some recommendations such as:-

Advertisements: -

Nokia use advertisement mode of promotion after launching a new cell phone in the market.

So people don’t have much knowledge about their latest models. While Samsung have lots of

ads in market before launching it

EXAMPLE: -

Giving advertisement on television or cable

Giving print media add which explain all the features of cell phone

SPECIAL SCHEMES: -

Nokia always launch high range products. So to increase the sales it has to give advertisement

or special discount or special schemes with every purchase of new cell phone. Samsung have

color variety in their cell phones as Nokia don’t have this much.

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CONCLUSION

The customer analysis of this coursework highlighted that the upper segment of the

population are the major consumers of mobile phones. Extensive research was conducted into

the strategies being implemented for the rural market.

Nokia and Sony Ericsson segment the market on a similar basis. However, they have

different interpretations Nokia has saturated the urban market including the B and C class

cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has

chosen to focus its energies on the B and C class cities since which it had not ventured into so

far.

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson,

Motorola, and Samsung. Nokia has the single largest market share in India of 60%. We have

analysed that Nokia is better than Samsung . Nokia and also on one of its major competitors;

Sony Ericsson since these are very prominent players in the Indian market.

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ANNEXURE

For “Study of consumer behavior towards NOKIA and SAMSUNG”Name –

Contact no.-

Sex- male female

1. Do you have any mobile?

Yes No

2. How many mobile do you have?

1 2

3 3+

3. Which mobile are you using?

Nokia Samsung

4. Are you satisfied with the services?

Yes No

5. Which facility attracts you most?

Price Call Style

Battery Memory

Others

6. Which advertisement media puts more impact on your buying decision?

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T.V Magazines

Newspapers Internet

Others

7. From how long you are using this particular mobile?

1 year 2 years

3 years More than 3 years

8. Would you like to change your current mobile in future?

Yes No

If yesthen why………………………………

Q9. What qualities of mobiles are important to you while buying mobiles? Rank them in

order of 1 to 9, where 1 being the most important and 9 being the least important.

Criteria RANK (From1-9)

Most preferred preferred No effect

Maintenance

Durability

Style/ DesignPriceUniquenessComfort (edges)

FM

Q10. Rate the following brands based on your perception on the mentioned criteria on a

scale of 1-6 where,

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Criteria Nokia Sony Ericsson BenQ Panasonic Samsung

Maintenance

Durability

Style/ Design

Color

Size

Price

Availability

Lightweight

Comfort

Q11. Have you ever used Nokia? What is your opinion about it?

Yes

No

Q12. ARE THERE ANY GENERAL COMMENTS YOU WOULD MAKE ABOUTWHAT YOU LIKE / DISLIKE ABOUT MOBILE PHONES?

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APPENDIX

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BIBLIOGRAPHY BOOKS

Kothari, C.R.(2007), Research Methodology Methods and Techniques,

INTERNET:1. www.wikipedia.com

2. www.projectsmonitor.com

3. http://www.nokia.com

4. www.samsung.com

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http://www.projectsmonitor.com/

Documents

Comparison-nokia and Samsung