I. INTRODUCTION

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PROBLEM STATEMENT

Any research requires a proper understanding of the problem. A well-defined problem is half

work done. Statement of problem is this section was the reason for taking up a particular topic for

research is justified. Many creative efforts fail because the problem is either unclear or it is

focused in the wrong place. If people have different opinions of what the problem really is, they

will constantly diverge and never be able to find closure on a suitable solution

The project entitled “A Comparative study - Samsung vs. Nokia mobile” is an attempt to

understand the marketing strategies adopted by the companies and also to understand the brand

image of the company in India.

This research studies the marketing strategies of Nokia and Samsung in India. The study Attempts

to check the role of marketing activities in success of Nokia and Samsung in India. After studying

the past of the company and the history of Indian mobile industry, marketing strategies are

examined through secondary resources.

A sample of 50 consumers was taken of Bangalore city, on mobile phone users. Although this

sample is very small to represent the whole market but there is no choice because of time

constraints.

Yet we have tried to take consumers from every age group, every income group, and every

occupation group. Responses were generated from approximately all the areas of Bangalore in

order to minimize any bias.

We have demonstrated the data gathered through various bar chart, pie charts & cone charts. We

have also done the variety analysis as it is applicable. On the basis of this finding & conclusion

has been presented

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COMPANY PROFILE

Samsung

In 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.

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 end

of the 20th century to this date Samsung is 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 COMPANY

Leading 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

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Nokia

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.

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.

Corporate responsibility

Corporate 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

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.

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II. RESEARCH OBJECTIVES

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 .

To understand the marketing strategy of Nokia and Samsung mobile in India

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.

To recognize the expectation of customer.

HYPOTHESIS

Null Hypothesis (H0): Customer satisfaction regarding their mobile phone is independent of the

brand they own.

Alternate Hypothesis (H1): Customer satisfaction regarding their mobile phone is dependent of the

brand they own.

For detailed tabulation of hypothesis see table 0.1

III. Research Methodology

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 r esearch.

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Research Design:

Type 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:

Primary data: Through Questionnaire.

Secondary data: Through internet and magazines

Sample Design

Sample Unit: Mobile phone users of different age

Sample Size: This study involves 100 respondents

Sampling Type: The sample size has been taken by random convenience sampling technique

The sample Unit taken is General public of different age group, different gender and different

professions of Bangalore.

Research Instrument: Questionnaire.

Questionnaire :

Questions are multiple choice answers with predefined answers and few of

them offer respondents the possibility of grading progress across 0-5 scale.

Statistical tools:

Graphical analysis, comparative rating

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IV. LIMITATIONS

• Sample size taken is small

• The study only conducts in one geographical area Bangalore

• Respondent bias and sampling error

• Does not evaluate the importance of location.

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CHAPTER -I

LITERATURE REVIEW

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2.1.1 LITERATURE REVIEW

PURPOSE:

The literature review section examines the importance of search studies, company data or

industry reports that serve as a foundation for the setup of study. The research dimension of the

related literature and the relevant information begins from an explanatory perspective,

approaching towards specific studies which do related to the judge the limitations and

informational gaps in data from the secondary sources.

While the Finnish phone maker has updated its handset portfolio at the high end to compete

better with Samsung's super-successful Razor phone, the refresh has been less than inspired.

..."[Nokia's] high-end phones are small, but they're boxy. Samsung's high-end [models] are

thin and slick." Samsung went for the wow effect, creating got to-have-it phones. Now,

Nokia is playing catch-up. "It all comes down to innovation and product development," says

Hoffman. "Right now, Samsung is head and shoulders above Nokia in creating products that

consumer‘s desire. Nokia has maintained their market share, but they‘re using price and

marketing dollars as the weapon.‖ Surely the RAZR was a brilliant move. Something as

simple as naming a phone Razor has created enormous buzz for the company, says Kelleher.

Granted, the Razr is a sleek little piece of telephonic technology, but the

Branding has given the phone cache. Kelleher makes a good point. When you mention Razr,

people know what you're talking about. Just try and picture what the Nokia 6170 looks like.

But just a piece of anecdotal evidence- the Nokia brand is still quite strong in Asia. And

according, Nokia's pushing hard into emerging markets with low-cost phones, which while

hitting margins, are building presence for the long term. 34% increase in handset volumes

versus a 25% sales increase. To find growth, Nokia is venturing into emerging markets, such

as China and Russia. Nokia is looking out for the long term by penetrating emerging

markets. But it will take some time for the margins to improve as these consumers upgrade

to premium handsets.

More specifically, the areas of competitive advantages and dynamic capabilities of firms,

innovation and strategy design and implementation will be explored. Furthermore, the

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objective of this literature review is to identify and draw theoretical grounds which can be used as a

baseline for the development of conceptual framework in order to answer the research has three

sub-question and ultimately the research main question which is ‗how to re-gain the leader position

in the mobile smart phone market?‘

Although theories of firms are considered an abstraction of the real business world they

Certainly address some firms‘characteristics and behavior. The fact that different theories of the

firm address different aspects usually makes then complementary to each other.

Economic theories of the firm, for example cover the firms behavior in external market

while organizational theories of the firm comprise the analysis of the firms internal structure and the

relationship among its unit. Still, the resource - based view of the firm attempts to explain why some

firms succeed in establishing sustainable competitive advantages and

consequently, conquering superior position in the market place compared to the competitors.

Moreover the emerging knowledge based view which is not considered a theory as such can be

thought of as an outgrowth to the resource based view since it focus on knowledge as

being the most important strategic resource of a firm.

Competitive advantages and dynamic capability

A firm aiming to leverage and maintain superior performance needs to understand what the

source of competitive advantages are as well as how to sustain them. Since competitive

advantages can emerge from many sources, there are a number of different perspective for a firm to

take when analyzing those aspects as for ex from a resource and from a product

perspective, to name a couple of them. As a consequence of the importance to understand

such causal effect relations, this area of research has become has become a major one in

strategic management.

V. Krishnan a review of research in product development, which we define as the

transformation of a market opportunity into a product available for sale. Our review is broad,

encompassing work in the academic fields of marketing, operations management, and

engineering design. The value of this breadth is in conveying the shape of the entire research

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landscape. We focus on product development projects within a single firm. We also devote

our attention to the development of physical goods, although much of the work we describe

applies to products of all kinds. We look inside the ―black box‖ of product development at the

fundamental decisions that are made by intention or default. In doing so, we adopt the

perspective of product development as a deliberate business process involving hundreds of

decisions, many of which can be usefully supported by knowledge and tools. We contrast this

approach to prior reviews of the literature, which tend to examine the importance of

environmental and contextual variables, such as market growth rate, the competitive

environment, or the level of top-management support.

John R. Hauser Quality function deployment (QFD) is a product-development methodology

that ―deploys‖ the Voice of the Customer (VOC) throughout the product-development

process. A cross-functional team implements QFD by creating a series of one or more

matrices, the first of which is referred to as the House of Quality (HOQ). These matrices relate

customer wants and needs to an extensive set of product features. A set of metrics is

developed to measure how well sets of product features are meeting customer needs, and then

the product's design specifications are identified and prioritized. QFD enables the entire

product-development team to prioritize their development activities in a systematic, analytical

way. It helps them work together to achieve a common view of the relationship between

customer needs and product design. It provides an ―audit trail that reminds people, both new

and old to the project, as to why past decisions were made. The QFD process stretches the

product-development team's thinking as to which activities are most critical toward creating a

winning product or service. It also improves communication among members of the product-

development team. The result is a product that is thoughtfully designed right from the

ginning, cutting down the need for later rework and reducing development time and costs.

B. Zafer Erdogan According to the research, Use of celebrities as part of marketing

communications strategy is a fairly common practice for major firms in supporting corporate

or brand imagery. Firms invest significant monies in juxtaposing brands and organizations

with endorser qualities such as attractiveness, likeability, and trustworthiness. They trust that

these qualities operate in a transferable way, and, will generate desirable campaign outcomes.

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But, at times, celebrity qualities may be inappropriate, irrelevant, and undesirable. Thus, a

major question is: how can companies select and retain the 'right' celebrity among many

competing alternatives, and, simultaneously manage this resource, while avoiding potential pitfalls?

This paper seeks to explore variables, which may be considered in any celebrity selection process by

drawing together strands from various literatures

Alexander Krasnikov

The impact of the marketing function on firm performance has been the focus of much

recent research in marketing. Thus, the effect of marketing capability on firm performance,

compared with that of other capabilities, such as research and development and operations,

is an issue of importance to managers. To examine this issue and generate empirical

generalizations, the authors conduct a meta-analysis of the firm capability-performance

relationship using a mixed-effects model. The results show that, in general, marketing

capability has a stronger impact on firm performance than research-and-development and

operations capabilities. The results provide guidelines for managers and generate directions

for further research.

MARKET AND MARKETING

The root word in the term marketing is market. Market is a group of potential customers for a

particular product who are willing and able to spend money or exchange other resources to obtain

the product. Marketing is focused on the market place. Infect the shoppers of post

generations, the words marketing meant to buy groceries. Function of marketing activities is to bring

buyers and sellers together.

Consists of consumer oriented mix of business activities planned and implemented by the marketer

to facilitate the exchange or transfer of goods, services, and ideas, so that both parties profit in some

way.

A market is a group of potential customers for a particular product who are willing and able to

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spend money or exchange other resources to obtain the product. Good or service is a consumer

product sold in the consumer market organization is buying an organizational or business.

Market conditions more conducive the sale prospects. The transport work and its expansion

are necessary for the easy flow of goods for the market. Market, can be classified into Rural market,

Agricultural market, primary village market, primary whole sale market etc.,

Consumer market refers to the market for goods and services purchased by individual and

households to satisfy their consumption desires.

The term market does not mean any particulars market place in which things are bought and

sold but the whole of any region in which the buyers and sellers are in such inter course with

one another that the prices of the same goods tend to be equalized easily and quickly. It is the

process of planning executing the conception, pricing, promotion and distribution of ideas and

services to crate exchange will satisfy individual and organizational objectives keeping

customers and building relationship. Marketers want customers for life. Effective marketers

work to build long term relationships with their customers. Marketing as an activity involved in

getting and keeping customers.

Definition of 'Market Segmentation'

A marketing term referring to the aggregating of prospective buyers into groups (segments) that

have common needs and will respond similarly to a marketing action. Market

segmentation enables companies to target different categories of consumers who perceive the full

value of certain products and services differently from one another. Generally three

criteria can be used to identify different market segments:

1) Homogeneity (common needs within segment)

2) Distinction (unique from other groups)

3) Reaction (similar response to market

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MARKET SEGMENTATION

The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset

of prospects that are "most likely" to purchase you‘re offering. If done properly this will help to

insure the highest return for your marketing/sales expenditures. Depending on whether you are

selling your offering to individual consumers or a business, there are definite differences in what

you will consider when defining market segments.

Segmentation is beneficial because of better predictability of the target consumer group,

minimization of risk exposure, better ability to fine-tune a product/service to the

requirement of target buyer and the resultant ease in designing a proper designing

marketing mix strategy In this case segmentation is on the bade of income .

TARGET MARKET SEGMENT

Companies target the premium and upper middle class. The rationale behind it is that only

those segments should be targeted who value time and have the paying capacity. It is

also planning to target the business tourists during their stay in the capital.

About 60% of the clientele are top executives of corporate houses. About

15% are foreign organizations and the rest are professionals and small

businessmen. During the introduction stage there was intense pressure to

get consumers across to hook up with their brand, because getting them.

POSITIONING

The product is sought to be positioned as a business efficiency tool. A lifestyle

revolution and a status symbol the emphasis is to remove misconception that the

cellphone is an expensive means actually a day-to-day utility.

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PRODUCT POLICY AND PLANNING

The product or service is the heart of the marketing mix. Without a product or service

customers' needs cannot be satisfied. The basic product promise by company is ability.

Company's main marketing strategy is to be a first mover all the time. It has recognized

the significance of making the first move because in the field of Communication &

Information Technology changes occur at a tremendous pace .

Effective product segmentation has to be carried on continuously because basic services

can be and will be copied and in time become expected component of the product.

Company seeks to carry out this segmentation through provision of new information

services and making new facilities available . The product policy and planning depends

on the stage of the product life cycle . At present the cellular phone market has reached

the maturity stage .

Since , the premium segment is nearing saturation the company targeting the upper

middle and middle -middle class. In order to do so company is trying to optimize the

price performance package by offering suitable "product bundling" and its software (its

services) with reasonable price in order to deliver maximum price performance to its

customers. In addition, it offers free Airtime services and other concessions to make the

prices and thus the product more attractive. Only price doesn't serve as an effective

differentiator, value added services become the effective differentiator.

CUSTOMER SATISFACTION

Company‘s first task is to create customers but today customers face a vast array of product

and Brand choices, prices and suppliers. How do customers make their choices?

We believe that customer‘s estimate which offer will deliver the most value.

Customers are value maximizes within the bound of search of cost and limited knowledge,

mobility and income. They form an expectation of value and act on it. Whether or not the

offer leaves up to the value expectation affects customer‘s satisfaction and their repurchase

probability.

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ATTRACTING AND RETAINING CUSTOMER

To improve their relations with their partners in the supply chain, many companies are intent on

developing stronger bonds and loyalty with their ultimate customers. In the past many

companies took their customers for granted. Their customers may not have had many

alternatives of supply or all suppliers were equally deficient in the service or the market was

growing so fast that the company did not worry about satisfying its customers. Clearly things

have changes

THE NEED FOR CUSTOMER RETENTION

The cost of attracting a new customer is estimated to be 5 times the cost of keeping a current

customer happy. It requires a great deal of effort to induce satisfied customers to switch away from

their current suppliers.

Unfortunately most marketing theory and practice centered on the art of attracting new customers

rather than retaining existing ones. The emphasis traditionally has been on making sales rather than

building relationship. The focus has been on reselling and selling rather than on caring for the

customer afterwards. Today however, most of the companies are recognizing the importance of

satisfying and retaining current customers. There are two ways to strengthen customer retention: -

[1] One is to erect high switching barriers. Customers are less inclined to switch to another

suppliers when this would involve high capital cost, high search cost and the cost of loyal customer

discounts and so on

[2] The better approach is to deliver high customer satisfaction. This makes it harder for

competitors to overcome switching barriers by simply offering lower prices. The task of

creating strong customer loyalty is called Relationship Marketing. Relationship Marketing embraces

on those steps that companies undertake to know and serve better their valued individual customers.

Some cautions in measuring customer satisfaction level

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When customer rates their satisfaction with element of the company‘s performance the Company

needs to recognize that two customers can report being ―highly satisfied‖ for Different reasons. One

may be easily satisfied most of the time and the other might be hard to please but was pleased on

this occasion. Company should also note that manager and sales people could manipulate their

ratings and customer satisfaction. They can also try to exclude unhappy customers from the survey.

Another danger is that if customers know that the company will go out of its way to please

customers many express high dissatisfaction in order to receive more concession.

For businesses:

Strategic - your offering is in some way important to the enterprise mission, objectives and

operational oversight. For example, a service that helped evaluate capital investment opportunities

would fall into this domain of influence. The purchase decision for this category of offering will be

made by the prospect's top level executive management.

Operations - your offering affects the general operating policies and procedures. Examples

might be an employee insurance plan or a corporate wide communications system. This

purchase decision will be made by the prospect's top level operations management.

Functional - you‘re offering deals with a specific function within the enterprise such as data

processing, accounting, human resources, plant maintenance, engineering design,

manufacturing, inventory control, etc. This is the most likely domain for a product or service,

but you must recognize that the other domains may also get involved if the purchase of the product

or service becomes a high profile decision. This purchase decision will be made by the prospect's

functional management.

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Marketing strategy

A strategy is a long-term plan to achieve certain objectives. A marketing [link] strategy is

therefore a marketing plan designed to achieve marketing objectives. For example,

marketing objective may relate to becoming the market leader by delighting customers. The

strategic plan therefore is the detailed planning involving marketing research, and then

developing a marketing mix to delight customers. Every organization needs to have clear

marketing objectives, and the major route to achieving organizational goals will depend on

strategy. It is important, therefore, to be clear about the difference between strategy and

tactics.

These terms originate from military use (military strategy before and during a military campaign is

the general policy overview of how to defeat the enemy). Developing a strategy involves

establishing clear aims and objectives around which the framework for a policy is created. Having

established its strategy, an organization can then work out its day-to-day tools and tactics to meet

the objectives.

Marketing can thus be seen as the process of developing and implementing a strategy to plan and

coordinate ways of identifying, anticipating and satisfying consumer demands, in such a way as to

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make profits. It is this strategic planning process that lies at the heart of marketing. In 1985, the

Chartered Institute of Marketing adopted the dynamic slogan:

'Marketing means Business'

Strategic discipline

Marketing is now accepted as a strategic discipline or general management function and in this

respect must care for the health of a business in the future - especially against

competitive influences. This is because it is increasingly realized that although making a

profit is important, an organization should also develop its market share and search for brand

leadership as well. So the marketer must monitor the profitability of the business and

attempt to anticipate the likely trends. At the same time rival companies should be

monitored and examined for vulnerable points.

Successful marketers must therefore be concerned with every aspect of their business,

including future project and other areas of their industry. Successful companies plan five or ten

years and more in advance and often know as much about their competition as they know about

themselves.

Marketing is not just a series of business-related functions, but more wide-reaching than

this. It is a business philosophy designed to develop an attitude of mind which should be

shared by everyone in an organization and is often enhanced by both frequent and open

communication. Developing such an attitude of mind reduces the likelihood of crisis and

contributes to the development of the overall future of an enterprise at both strategic and tactical

levels.

At the heart of marketing lies the degree to which an organization becomes marketing orientated.

The more committed a company is to its marketing activities; the more able it will be to pursue its

corporate objectives and develop and retain customers. Every business in existence relies upon its

customers for survival, and those who best meet customer needs will always survive a period of

change.

The marketing function is therefore an essential ingredient of corporate strategy, and this marketing

focus should be communicated through marketing planning into all aspects of business activity.

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In choosing a marketing strategy a frequent distinction that is made is between undifferentiated

marketing and differentiated marketing.

Undifferentiated marketing is where a single marketing mix is offered to the total market. In

contrast differentiated market is the process of attacking the market by tailoring separate

product and marketing strategies to different segments of the market, for example, the

spectacles market can be broken down into fashion segments and functional segments, high

price and low price segments, and segments for individuals with different types of vision

problems.

Objectives

The ends which an organization focuses its plans and activities towards achieving.

Strategies

The means to achieve the ends. Usually long term plans.

WHY MARKETING STRATEGIES ARE IMPLENTED IN THE

ORGANIZATION

Strategy implementation is the translation of chosen strategy into organizational action so as

to achieve strategic goals and objectives. Strategy implementation is also defined as the

manner in which an organization should develop, utilize, and amalgamate organizational

structure, control systems, and culture to follow strategies that lead to competitive advantage

and a better performance. Organizational structure allocates special value developing tasks

and roles to the employees and states how these tasks and roles can be correlated so as

maximize efficiency, quality, and customer satisfaction-the pillars of competitive advantage.

But, organizational structure is not sufficient in itself to motivate the employees.

An organizational control system is also required. This control system equips managers with

motivational incentives for employees as well as feedback on employees and organizational

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performance. Organizational culture refers to the specialized collection of values, attitudes, norms

and beliefs shared by organizational members and groups .

Following are the main steps in implementing a strategy:

Developing an organization having potential of carrying out strategy successfully.

Disbursement of abundant resources to strategy-essential activities. Creating strategy-

encouraging policies. Employing best policies and programs for constant improvement.

Linking reward structure to accomplishment of results.

Making use of strategic leadership.

Excellently formulated strategies will fail if they are not properly implemented. Also, it is essential

to note that strategy implementation is not possible unless there is stability between strategy and

each organizational dimension such as organizational structure, reward structure, resource-allocation

process, etc.

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CHAPTER 2

INDUSTRY & COMPANY PROFILE

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2.2.1 Company Profile

Samsung

In 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.

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

end of the 20th century to this date Samsung is 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 COMPANY

Leading 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

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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, eventhough

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

$3 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 something 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 everyday 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 worldwide.

Between 2010 and 2020 it will be hard to find a person without 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

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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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Mobile phones in India

Smartphones are much different than regular feature phones. These phones are built on mobile

operating system. With the changes happening all over the world changes in a mobile phone is

must. The world is moving fast and so has technology to. The invention of a Smartphone is the best

thing that could have been done to human kind. Smartphones India market is huge. All over you will

people using this.

The Smartphones in India that are more famous are the ones that have high resolution touch

screen and web browsers that making life easy and fast moving. Using the best Smartphone

has become a style icon for today's generation. Best Smartphones can be found in best

brands like Samsung, Sony, HTC, LG, Nokia, etc. These phones are very common among

the professionals, students and other users as it allows them to check mails, stay connected

on social media and browse the net. A Smartphone price is different and more than a feature

phones because it has Operating System in the Mobile and makes life simple, easy and

hassle free

Among the popular smartphones in India are:

Samsung SmartPhones

Samsung Smartphone India market is more than expected by anyone. Here everyone wants to have

a Samsung Smartphone. Operating your office from your phone makes life so

exciting. You may be anywhere in the world Samsung Smartphone allows you to be ready all the

time. The latest Samsung Smartphone - Samsung Galaxy Note II gave a new

definition to the world of communication. You don't require a laptop or a desktop as this can do all

that the two have been doing for you all these years. Samsung Smartphone price

makes all this affordable for you buy and have the world in your palms.

Sony Smartphones

Sony is a brand leader in electronics. And a Sony Smartphone is stylish and durable. Sony Xperia

Smartphones have captured the market very fast. The features and the technology used make it

27

different from all the mobiles. All Sony Smartphones Mobiles are good and have been built after a

lot of research and development. Sony Smartphones in India is famous among the professionals and

students. It has made life easy and hassle free for them. See your mails, reply to them, Updating

status on Facebook, etc is done with a click. Sony Smartphone price is far less than the features

given to you in the mobile.

Nokia SmartPhones

Nokia is known for connecting people since it was launched. Now Nokia Smartphones have made

life easier for those who don't like any other brand. Users are least interested in the Nokia

Smartphone price as they trust that Nokia will give them the best. With Nokia Smartphone India you

can share more than you thought of. It allows you to do multitasking. The Latest Nokia Smartphones

come with enhanced processing power that makes multitasking fast and easy.

HTC SmartPhones

With the recent launch of the HTC Smartphones the market is now filled with beautiful and

useful Smartphones. HTC Smartphones India has captured the hearts of many consumers as

it loaded with world class features and has high speed that the young generation is looking

for. The best HTC Smartphones allow you to customize your phone through the internet.

HTC Smartphone price is less compared to the features available in the mobile.

LG SmartPhones

LG Smartphones India has launched the best Smartphones ever. LG Smartphones have been

designed uniquely with the NOVA display technology that offers clear outdoor visibility,

readability, and perfect colors. The Latest LG Smartphones have Wi-Fi Direct that allows access to

net without any Access Point. You will find LG Smartphones price differing from mobile to mobile

depending on the features.

Android Smartphone

Android Smartphones are on the go and most popular among professionals and students all across

28

the globe. Android Smartphone India runs on a platform that allows the users to install applications

as per their requirement. Every new Android Smartphone that has been launched in the last few

months has captured the market and is giving tough competition to other brands. Android

Smartphones prices are much less compared to other Smartphones grabbing the crowd more and

increasing the revenue.

3G SmartPhones

The 3G Smartphone Collections are most in demand today. The 3G Smartphones networks

allow the network operators to provide its valuable users with huge of advanced series like

internet, video calling, and voice calling from a mobile phone. Latest 3G Smartphone cab be

found in brands like HTC, Samsung, Nokia, etc. 3G Smartphone price is secondary as it has

more than what it actually quotes. It loaded with features and apps making life fun and enjoyable.

3G Smartphone India has been able to capture the mobile market in a short span of time.

Using best Smartphones has become very vital today. It allows you to stay connected always. This

change from regular cell phones to Smartphones will keep moving as now there will be much better

phones with much better technology used. Earlier the use of mobile was only to keep in touch when

out but today a mobile is more than making calls. Companies do a lot of research and development

to build the perfect phone for each of its valued customers.

29

Company Profile

Samsung

In 1938 the Samsung‘s fonder buying -chill 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 become a co-operation in 1951.

According to the company, from 1958 onwards 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.

30

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 end of

the 20th century to this date Samsung is 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.

THE SAMSUNG PHILOSOPHY

At 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 o

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

making a better global society.

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.

31

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.

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

STRENGTH

New product concept to rollout.

Catching the pulse of the consumer offering design & understanding

emotions.

Heavy investments in technology.

Focus on innovative products.

WEAKNESS

New models coming out very soon.

Different models at different price points.

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.

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THREATS

Motorola‘s dominance in the US the European market controlling more than world market

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

Nokia

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.

According to the company, 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

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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,

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.

Nokia was 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.

34

Marketing Strategy for Nokia

* 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.

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.

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.

35

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 dominance

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

36

CHAPTER III

DATA ANALYSIS AND INTERPRETATION

37

2.3.1 DATA ANALYSIS AND INTERPRETATION

1) Age

Age No. of Respondents

Less than 20 20

20 – 30 56

30 – 40 16

40 – 50 5

Above 50 3

Less than 20

20 – 30 30 – 40 40 – 50 Above 500

10

20

30

40

50

60

Age

No. of Respondents

38

2) Do you own a mobile phone?

No. of Respondents

Yes 100

No 0

Yes No0

20

40

60

80

100

120

Respondent own a mobile phone or not?

No. of Respondents

Interpretation:

From the response it is seen that 100 respondants own mobile phones.

39

3) How many mobile phones do you own?

No. of Phones No. of Respondents

One 54

Two 46

One Two42

44

46

48

50

52

54

56

Mobile phones do Respondents own

No. of Respondents

Interpretation:

54 respondants own one mobile phone.

46 respondants own two mobile phones.

40

4) Which brand and model do you own?

Name of Brand No. of Respondents

Samsung 60

Nokia 40

Samsung Nokia0

10

20

30

40

50

60

70

Brand and Model do Respondent own

No. of Respondents

Interpretation:

Among the respondents 60 of them own Samsung mobile phones and remaining 40 respondants own nokia mobile phones.

41

5) How long have you been using your current mobile phone?

No. of Years No. of Respondents

Less than 1 year 26

1 – 2 years 38

2 – 3 years 14

More than 3 years 22

Less than 1 year

1 – 2 years 2 – 3 years More than 3 years

0

5

10

15

20

25

30

35

40

Length of Ownership

No. of Respondents

Interpretation:

26 respondants have been using the mobile phones for less than one year

38 respondants have been using the mobile phones for 2 years

14 respondants have been using the mobile phones for 3 years

22 respondents have been using the mobile phones for more than 3 years

42

6) What feature in a mobile phone attracts you the most? Rate them on a scale aof 1-5.

1- Very important, 2 - Important, 3 - Neutral, 4 – Unimportant, 5 - Very unimportant

Features 1 2 3 4 5

Price 34 46 16 4 0

Style 50 40 8 2 0

Camera 60 24 8 2 2

Battery 62 30 8 0 0

Memory 42 42 12 4 0

Durability 42 48 8 2 0

Uniqueness 42 30 22 4 2

Availability 24 32 42 0 2

Service Support 40 42 14 2 2

User Friendly 42 32 24 0 2

Price

Style

Camera

Battery

Memory

Durabilit

y

Uniqueness

Availa

bility

Servi

ce Su

pport

User Fr

iendly

0

10

20

30

40

50

60

70

Attraction in Mobile Phone

12345

Interpretation:

According to the data the most important features for respondants are style , camera and battery.

43

7) Chose between Nokia and Samsung, which is the better mobile based on

following:

Nokia Samsung

Price 56 44

Style 20 80

Camera 30 70

Battery 80 20

Durability 70 30

Price Style Camera Battery Durability0

10

20

30

40

50

60

70

80

90

Better Mobile

NokiaSamsung

Interpretation:

According to the responses it is observed that nokia is better than Samsung on battery price and durability

And Samsung is better than Nokia on style and camera.

44

8) How satisfied are you with the mobile phone you are using?

Extremely Satisfied

Satisfied Neutral Dissatisfied Extremely Dissatisfied

Battery 40 48 8 2 0

Camera 28 32 38 2 0

Memory 22 36 32 10 0

Screen Size 32 28 28 10 2

Service Support 30 36 28 4 2

Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied0

10

20

30

40

50

60

BatteryCameraMemoryScreen SizeService Support

Interpretation

It is observed that maximum number of respondants are satisfied with their phones.

45

HYPOTHESIS:

Chi square test is used to analyze if the satisfaction level of customer was the same for Nokia and

Samsung with the following null and alternative hypothesis

Null Hypothesis (H0): Customer satisfaction regarding their mobile phone is independent of the

brand they own.

Alternate Hypothesis (H1): Customer satisfaction regarding their mobile phone is dependent of the

brand they own.

TABLE 0.1

ASSOCIATION BETWEEN BRAND AND CUSTOMER SATISFACTION

Chi Square p-value Null Hypothesis Accepted/Rejected

Battery17.74 0.023 Rejected

Camera7.439 0.282 Accepted

Memory20.978 0.002 Rejected

Screen Size12.88 0.116 Accepted

Service Support9.503 0.302 Accepted

Result:

There is no significant association between the brand and the customer satisfaction for battery and memory whereas there is significant associate between the brand and customer satisfaction for camera, screen size and service support.

46

11) Do you plan to change your mobile phone?

If yes, to which brand?

YES NO42

44

46

48

50

52

54

56

54

46

Interpretation:

54 respondants are planning to change their mobile phones and 46 respondants are not planning to change their phones.

IphoneHTC

SONY

Nexus

Motorola

Micromax

02468

101214

No. of Preferred Brand

No. of Preferred Brand

12 respondants preferred i phone8 respondants preferred HTC13 respondants preferred SONY10 respondants preferred NEXUS6 respondants preferred MOTOROLA5 respondants preferred MICROMAX

47

CHAPTER IV

FINDINGS

48

2.4 FINDINGS

Samsung is introducing phones very frequently while Nokia introduces a new phone into the

market every two or three months

Samsung has already entered into the market with economical phones to tap the low income

group. On the other hand Nokia is entering into market with windows technology.

Samsung is considered for other features such as internet, design, color, display, etc while

Nokia phones are more user-friendly and is economical.

Samsung is launching new mobiles more frequently to create more completion in the market

it is more inclined towards android operating mobile instead of bada. Whereas Nokia has

come up with few new models in the market but is unable to regain its share because of the

level of competition

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

Indulging itself in more than telecom it has more products more than mobiles.

Samsung is always trying to indulge with media through advertisement and innovative

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

successful marketing strategies and internal management.

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

individual and pursue professionalism.

49

Chapter V

CONCLUSIONS AND SUGGESTIONS

50

2.5.1 CONCLUSION

The customer analysis of this coursework highlighted that the mobile phones are used by everyone

and they are part of the lifestyle. Extensive research was conducted into the strategies being

implemented.

Samsung is the most innovative mobile handset company which launches mobile handset

very frequently and advertises products through various modes to promote their product and build a

market share for its company. However, they have different interpretations Nokia has saturated the

rural market and is now targeting potentially untapped markets and is trying to gain its market share

with the windows operating system and many few other features which will help to increase its

market share Nearly all mobile handset companies on the other hand have 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 Apple, Blackberry, Nokia, Sony Ericsson,

Motorola, and Samsung. Nokia was having market share in India of 60%, now its share has

declined and Samsung has entered into the market with Android. Research suggest that the

Samsung handsets are better than Nokia handsets. There is very close competition between

Samsung, Nokia, and other mobile handset companies, each and every company wants to lead the

race, so they are launching new products very frequently with good technology, better design and

according to the need of the user. In this completion of companies the consumers are being

benefited the most, they are enjoying. The services and pleasure of mobile phones at very

economical price ( depending upon the mobile handset)

51

2.5.2 SUGGESTIONS

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

Advertisements: -

Both Nokia and Samsung are using various modes of advertisement to

promote their products and schemes.

EXAMPLE: -

Giving advertisement on television or cable

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

SPECIAL SCHEMES: -

Nokia has to come up with innovative products when compared to Samsung. So to increase the

sales it has to improve mobile handset quality, give advertisement or special discount or special

schemes with every purchase of new cell phone. Samsung have color variety in their cell phones

and is equipped with latest technology and features

52

BIBLIOGRAPHY

WEBSITE:

1. http://www.nokia.com

2. www.samsung .com

3. www.ebsco.com

4. www.economictimes.com

53

ANNEXTURES

Questionnaire

Comparative study of Samsung and Nokia :

1) Name

2) Gender

3) Age

a. Less than 20 b. 20-30

c. 30-40 d. 40-50

e. Above 50

4) Do you own a mobile phone?

a. Yes b. No

5) How many mobile phones do you own?

a. One b. Two

6) Which brand and model do you own?

a. Samsung b. Nokia

7) How long have you been using your current mobile phone?

a. Less than 1year b. 1-2 years

c. 2-3 years d. More than 3 years

54

8) What feature in a mobile phone attracts you the most? Rate them on a scale of 1-5.

1- Very important, 2 - Important, 3 - Neutral, 4 – Unimportant, 5 - Very unimportant

Features 1 2 3 4 5

Price

Style

Camera

Battery

Memory

Durability

Uniqueness

Availability

Service Support

User Friendly

9) Chose between Nokia and Samsung, which is the better mobile based on following:

Particulars Nokia Samsung

Price

Style

Camera

Battery

Durability

55

10) How satisfied are you with the mobile phone you are using?

Extremely Satisfied

Satisfied Neutral Dissatisfied Extremely Dissatisfied

Battery

Camera

Memory

Screen Size

Service Support

11) Do you plan to change your mobile phone?

a. Yes b. No

If yes, to which brand?

Preferred Brands – IPhone, Sony, HTC, Micromax, Motorola and others.

Thank You!

56