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INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION LUCKNOW

Research Report Taste and preferences of Rural Consumer in

mobile segment(As part of completing Post Graduate Diploma In Management)

SUBMITTED BY:

SHIV PRATAP SINGHENROLL. NO. -1088

IISE LUCNOW

UNDER GUIDANCE OF: MRS. SHILPI SAXENA HOD,FACULTY

IISE BUSINESS SCHOOL, LUCKNOW

SUBMITTED TO: DEPT. OF MANAGEMENTI.I.S.E. BUSINESS SCHOOL LUCKNOW

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ACKNOWLEDGEMENT

No academic endeavor can be single handedly accomplished. This work is no exception.

At the outset, I would like to express our gratitude to Mrs. Shilpi Saxena, Faculty

IISE Business School for initiating us into this project (rural marketing). We sincerely

acknowledge our thanks for her valuable suggestions and time to time consultation.

Last, but not least, I would like to thank all the people who helped me in completion of

this project and for their kind cooperation and assistance during my project work.

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PREFACE

My project is about studying the rural market-the taste and preferences of the rural

customers when purchasing mobile phones and availing after sales services and that which GSM

or CDMA Service they prefer or use. Rural Areas visited were Rahimabad, Amousi, Gauri, 3 No.

bagiya falling under Sarojini Nagar Police circle. Before making this Project I was not aware

about the varied taste and preference pattern in RURAL AREAS. After doing this project, my

knowledge has increased with respect to need, taste, preferences and ever growing demand of

mobile phones. During this project I met with many people of varied background and

occupation. Moreover, I learnt the complexity coming into RURAL MOBILE Segment and

companies are fighting hard for their share of pie by introducing mobile phones with affordable

price.

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TABLE OF CONTENT

OBJECTIVES

RESEARCH METHODOLOGY

INTRODUCTION

What Rural Mobile Phone Users Want?

THE INDIAN MOBILE MARKET

ABOUT LOCAL CHINESE BRANDS

TABULATION OF DATA

GRAPHICAL REPRESENTATION

MAJOR FINDINGS

SUGESSIONS

CONCLUSION

REFERENCES

http://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.htmlhttp://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.html

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OBJECTIVES:

Major Objectives:

To study taste and preferences of Rural Consumer in Mobile segment.

Minor Objectives:

1. Factor important in purchasing a mobile phone.

2. To know the percentage of rural area people knowing

about after sales-service.

3. To know mobile services they are using. How many of

them are switchers?

4. Ideal refill (top-up/recharge) voucher for you?

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RESEARCH METHODOLOGY:

Primary Data : From Amausi, Rahimabad, Gauri, Naven Gauri (Sarojini Nagar), Ali

Nagar Sunehra, Kesari Kheda.

Tool : Questionnaire

Sample Size = 50 People

Analysis Mean: Graphical representation

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INTRODUCTION:

Defining the Indian rural market

The definition of the word rural in a market like India is very amorphous. There aremultiple versions of the same idea, which are followed by different entities. Even in the ruralmarketing space, there is not one concrete definition. Different brands define rural according totheir product and service offerings. In a diverse market like India, which has a population ofmore than1.17 billion people (estimate till July 2009), the urban-rural divide is quite significant.According to various studies, around 12.2per cent of the worlds population lives in rural India,which also indicates that 29 per cent of the worlds rural population lives here. As per the 2001census, 72.2 per cent of the population lives in about 6, 38,000 villages scattered throughout thecountry. The number of people living in each of the Indian villages also varies considerably. It isfound that most of the Indian villages have a population of less than1, 000, while there are only afew villages where more than 10,000people live.

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What Rural Mobile Phone Users Want?

Indian has always been a very lucrative market for all the mobile phone companies.

Though these days mobile phones have reached in every nook and corner of Indian metros and

other big cities, the rural market still remains largely untapped and the penetration is very low if

you compare it to the penetration of mobile phones in some big Indian cities. The heavily

untapped rural market still attracts mobile phone companies from Nokia to the unbranded ones.

Like mobile phone OEMs, mobile service providers are also very much interested in tapping this

market and the biggest question they face today is the kind of services they need to offer for rural

customers. When it comes to mobile services, the preferences of the urban mobile users are

entirely different from what their rural counter parts prefer. Its a no brainer that, rural mobile

users are looking for ultra cheap mobile services whereas urban customers look for high internetspeeds and rich mobile experience. Rural customers prefer features like camera, dust proof

phones with torch lights. Operators also need to make sure that they devise special and cheap

plans for customers in rural India as money is the main factor for these people and as far as

mobile phone companies are concerned, products which are easy to use and handle are rugged

and have good after sales service support will do well in this market

http://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.htmlhttp://4.bp.blogspot.com/_R_sbWukBfwI/SCEkQqzv5VI/AAAAAAAACBU/DHAXF3QrWAo/s1600/India_mobile.jpghttp://www.nampblog.com/2010/04/what-rural-mobile-phone-users-want.html

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THE INDIAN MOBILE MARKET:

Voice and Data recently released a survey report on mobile handset market share in India

which says a lot of things on where India is heading to. In the financial year 2009 10, the

market share ofNokia in India stood at 52.2%. Thats a good 11.8% falls from 64% in the last

financial year. Samsung with its wide range ofCorby and Star branded mobiles has caught

the attention of young Indians that played its part in raising its Market share from 10% to 17.4%.

LG stands third at 5.9% share. On the other hand, the Indian handset makers, whose combined

market share was just lurking between 3 to 4% in the previous financial year has grown up to14%. Micromax mobiles topped the chart (of Indian makers) with 4.1% share followed by Spice

(3.9%) and Karbonn mobiles (3%). Recent entrants such as Lava mobile, Lemon mobiles and

Max mobile too are hovering around that 1% market share. Its not rocket science that why these

Indian handset makers saw that instant success. Its all thanks to the falling telecom calling

prices and hence the need for Dual sim mobiles. These handset makers made huge money in very

little time and were sponsoring events like crazy, including the BCCI cricketing events, which

isnt a small boys thing. For some reasons, Big players such as Nokia were reluctant to produce

Dual Sim mobiles. Realizing this about to get worse situation, Nokia recently announced its

first round ofDual Sim phonesthat will soon be introduced in India. When it does, it is sure to

receive a warm response. Some call the Indian handsets as Made in China and sold under Indianbrands seeing their awful UIs and cheap plastics. Yet, they are cheap and offer Dual Sim

capability and hence people go crazy and buy them. Nokia, on the other hand is known for its

Quality and longevity (which seriously lacks in the other category handsets) and hence should

receive good, if not great response to its Dual sim mobiles. However, the Dual sim craze might

not last longer as consolidation is expected in the Indian market when maintaining 2-3 Sim cards

would prove to be heavy.

http://voicendata.ciol.com/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/http://voicendata.ciol.com/http://www.sriraj.org/gadgets/samsung-corby-speed-price-review-india-cdma/http://www.sriraj.org/gadgets/nokia-c1-c2-dual-sim-phones-price/

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Nokia's launch of mobile phones for rural India can boost mobile

government applications for grassroots

The rural phone in integration with the CSC centers to be launched by government of

India may provide a major boost to mobile government services in India especially to the

grassroots and unreached.

Nokia chose Delhi for Thursday's launch of seven mobile phones for emerging markets,

including two intended for shared use by families or entire villages. The launch of these GSM

(Global System for Mobile Communications) phones in India comes in the wake of attempts by

the Indian government and mobile services operators in the country to introduce low-cost mobile

telephony to India's rural masses. Like the traditional public call office, the shared mobile phone

offered through a local village entrepreneur is seen by many nongovernmental organizations

(NGOs) as the best way to increase mobile penetration in rural markets, where users may not be

able to afford a personal phone. In many villages, local entrepreneurs have already emerged to

offer this service.Nokia's 1200 and 1208 models offer call-time tracking and multiple phonebooks, the

company said. To help manage airtime costs, the call-time tracking feature allows consumers and

village phone entrepreneurs to preset a time or cost limit on individual calls, automatically

ending the call after the limit has been reached, it said. India had 166 million mobile subscribers

at the end of March, up 68 percent over a year earlier, according to the Telecom Regulatory

Authority of India (TRAI). Most of these subscribers are in urban areas. Large mobile service

providers have identified the rural market as the next big opportunity. The government is also

subsidizing roll-outs of mobile services in rural markets, and has proposed that operators share

infrastructure to reduce costs. A number of multinational mobile phone vendors, including

Nokia, have started manufacturing phones in India. Nokia also has other operations in the

country including a research and development center and a network operations center.

The Nokia 1200, with a monochrome screen, will be available this quarter with an

estimated retail price of about $48 before subsidies or taxes. The Nokia 1208, with a color VGA-

resolution screen, will be available in the third quarter of this year with an estimated retail price

of $65, Nokia said.Nokia also launched four other low-cost GSM phones, including the entry-

level Nokia 1650 and Nokia 2660, and the Nokia 2630 and 2760 with features such as a built-in

camera, an e-mail client, an FM radio and Bluetooth connectivity. The Nokia 1650 and 2660 will

be available this quarter, with the 1650 priced at about $75, and the 2660 at about $115. The

Nokia 2630 and Nokia 2760 will be available in the third quarter of this year. The estimatedprice for the Nokia 2630 will be around $115 and for the Nokia 2760 around $122.The company

also launched Nokia 2505, an entry-level phone based on the CDMA (code division multiple

access) standard for markets in Asia-Pacific, the Middle East, Africa, China and Latin America.

The phone will be available in select markets in this quarter. Nokia did not disclose the pricing of

this product. Its Nokia Life Tools (Jeevan Saadhan), an ambitious programme which bundles

the handset with a services, all aimed to hook the rural customers.

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This is a long term initiative which focuses on empowering rural India

The thrust on rural markets in India comes even as the mobile density is around 40% with

450 million users thus providing ample scope for full throttle growth. However, most of the

growth witnessed so far has taken place in urban areas, particularly major metros with tele-

density going through the roof. Rural in the next big opportunity. Everyone knows that. But the

question is how to tap it. All the operators are aggressive. Bundling helps any handset player to

create extra value to lure the entry level consumers. But how does one create brand leadership

for oneself in such a scenario without depending on others?

NLT says the approach goes back to the development level which kicked off when Nokia

launched the 1100 series keeping in mind the rigours of the hinterland. But lowering handset

prices or reducing charges is only half the attempt, he says. And Nokia knows that if it needs to

make money from rural markets, it has to play a role in augmenting the incomes of the target

audience. And for that one cant merely rely on a transactional relationship but one that createsrelevant value for them. The relevant value creation of NLT stands on four pillars or rather the

four Es empathy, entertainment, evidence and education. The services on offer at various

price points range from market prices, weather to music and entertainment to even simple

courses on English on the mobile phone. Rural community, its about stature and not just status.

At the end even economic progress is more a means to achieve stature than statuses in the

community. Therefore progress achieved through more knowledge is a definitive way acquires

social stature . Even as this will be a first for a handset manufacturer, the strategy of

empowerment isnt entirely new. The industry is watching with interest on how exactly it pans

out for Nokia. Competing with operators is an altogether different story. Unless the value adds

is something very unique, it will just be another fad which will fade away in sometime, he says,adding that mobile connectivity has ensured that farmers have access to information like mandi

prices. Further if one gets a plan with a close user group from operators, then why pay

extra. Nokia officials however counter that NLT becomes a retention platform by offering more

and more services in the time to come. The key is to create a base through constant engagement.

Once it is achieved, the services can be bundled on all handsets sold in rural market,

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ABOUT LOCAL CHINESE BRANDS:

Chinese handsets in India account to 15 % of India's Mobile Market and increasing. The Market

is valued at 75,000 Crores a year. Over 2 million mobile phones in India have lost connectivity

due to fake imei. Being a part of this telecom revolution & sell genuine IMEI china mobiles with

full replacement warranty & tech support. China Mobiles Stores HK Limited, company

established in India & China , and one of the leading genuine IMEI mobile phone importers for

brands such as Gfive , GILD, Sigmatel , Forme , Crucell, G-Tide, LC Mobiles and over 60

brands.We sell mobiles with complete replacement warranty & tech support. We are setting up a

genuine IMEI mobile phone store network in India, as the China Mobile sales is presently to

75,000 crores annually in South East Asia with majority in Indian market specially the sub-urban

and rural market.

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TABULATION OF DATA

Cost ofmobile

1 to 5 35

5 to 10 10

10 to 15

15 to 20

CompanyName

Nokia 15

Samsung 5

LG 15

Onida

Spice

Lawa

G Five

Others 10

Important Factors InPurchasing a Mobile Set

Cost 140

messaging 25

Voice Quality 115Battery

backup 145Media Player 55

Speaker 120

Style 40

Durability 135

Internet 55

Hindi 45

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F M Radio 90

More than One

Change yourSet

In one year 5

In two year 25

In three year

in five year 15Purchasedfrom

AuthorisedDealer 10

Vendor 35

after SalesService

Yes No

40 10

MobileService

Airtel 20

BSNL 5

Voda Phone

DOCOMO 5

TATA

Reliance 15

Idea 5Change MobileService

RefillVoucher

Rs 10 5

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Rs 20 10

Rs 30 15

Rs 50 20

Rs 100 10

Rs 500 5

GRAPHICAL REPRESENTATION:

As it is visible in the graph that the mean age of mobile user is 15 to 25 year.

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As it is visible in the graph that the most of the population has yearly income is Rs. 50,000/-

to 1, 00,000/- so they cannot use mobile of very high cost.

Around 90 % of the rural population surveyed of sample size 50 is using mobile phone

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As it is shown in the graph that the mean cost of mobile is majorly is 5 thousand appx.

As it is shown in the graph that the Nokia and L.G. has around equal market share

and others also has good share of other local brands.

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As it is shown in the graph that usually people change their set in two years.

As it is shown in the graph that very few people purchase mobile from authorized dealer

they purchase phone from local vender just because of easy installment.

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As it is shown in the graph that people are aware of after sale service but they very often

use the service.

As it is shown in the pie chart that Nokia and Samsung has maximum market share.

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As it is shown in the graph that people think about battery backup, Durability and speaker

phone and Voice quality before purchasing a mobile phone the mean cost of mobile is

majorly is 5 thousand apx.

As it is shown in the pie chart that Airtel leads the rural market and reliance comes

next to it in terms of market share in rural india.

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This pie chart depicts that the ideal recharge refill voucher used by rural consumer

ranges between Rs 30 to Rs 50.

MAJOR FINDINGS:

The mean age of mobile user is 15 to 25 year the people above 45 yrs. do not use mobilejust because low literacy.

The population has yearly income is Rs. 50,000/- to Rs 1, 00,000/- so they cannot usemobile of very high cost.

Around 90 % of the rural population surveyed of sample size 50 is using mobile phone

Nokia and L.G. have around equal market share and others also has good share of otherlocal brands.

In the rural usually people change their set in two years.

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Very few people purchase mobile from authorized dealer they purchase phone from localvender just because of easy installment and less paper work.

People are aware of after sale service but they do not use the service often.

While purchasing mobile phone rural people look for Durability and speaker phone andVoice quality before purchasing a mobile phone the mean cost of mobile is majorly is 5thousand apx.

In mobile network Airtel leads the rural market and reliance comes next to it in terms ofmarket share in rural India.

The ideal recharge refill voucher used by rural consumer ranges between Rs 30 to Rs 50.

SUGGESSIONS

I would like to suggest to the mobile companies that they should try to target young

customers because old persons are not so much user friendly.

Mobile companies should try to launch some phone who has some picture facility

instead of written language because old people are not educated.

As the income of rural people is so low so the coast of mobile should be ideally

between 1 to 5 thousand so that people of less income can afford phone.

The people are purchasing phone from local venders not from authorized dealerjust because of finance facility so companies should give finance facility to people so

that they can purchase phone.

The companies should give some feature like speaker phone, voice quality, battery

back up to attract rural people.

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LG and Nokia has equal market share in rural people but others also have very

good share in rural India because they give so many features with less price but

branded companies are not given so much competitive price so companies should

try to give products with competitive prices.

Rural people are much considering about the agriculture and companies should givesome call center who give help in agriculture business to rural people.

The companies should keep in mind the taste and preferences of rural people like

Hindi language.

CONCLUSION:

After doing this extensive Project Research in rural area -Amausi,Rahimabad,Gauri,Naveen Gauri(Sarojini Nagar) & Ali

nagar sunehra,kesri khera(Krishna Nagar) we found that theincome-level,literacy of people residing in rural area is low because of that they are not able to purchase the highcost(branded mobiles) and more switching towards the Chinesemobiles (local mobile-handsets).

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The preference of rural people with respect to mobilephones is mainly durability, lowcost, long battery-backup, loudspeaker phone, operating language Hindi should be present in

mobile phones.There is a large unorganized mobile handset market in therural area and their lies huge opportunity in front of the brandedcompanies to tap the Rural consumer according to his/her taste& preferences.

REFERENCE- Questionnaire

Taste and preferences of Rural Consumer in mobilesegment

Name:

..

Address

Phone no: Land line:

Age Group: 15-25 25-35 35-45 45 & above( ) ( ) ( ) ( )

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Question 1: Yearly Income More than 50,000More than 100,000More than 500,000More than 10,00,000

Question 2: Occupation:

Question 3: LandholdingQuestion 4: Currently using Mobile: Yes.

No..Question 5:If no than whyQuestion 6: Cost of mobile1 to 5 thousand5 to 10 thousand10 to 15 thousand15 to 20 thousandQuestion 7: If yes then of which company are you using the mobile:

Nokia., Samsung..,L. G., OnidaLAWA, Spice.,G FIVE., Others

Question 8: Which Factor is more important in purchasing a mobile phone?( Please ratebetween 1 to 5)

Cost., Messaging., Voice Quality,Battery Back upMedia player., Speaker., Style,

DurabilytyInternet.., Hindi, F M

Radio, More than one.Question 9: How often do you change your set?In one year.., In two years., In five year Question 10: From where have you purchased your set?

1) Authorized dealer 2) Local vendor

Question 11: Do you know about after sale service? If yes than ever you have use it?Ans:Question 12: Which mobile service you are using?Airtel, BSNL,Vodaphone.DOCOMO.., TATA.,Reliance..Question 13: How often you change your mobile network and why?Ans

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Question 14 :Why you have purchased a mobile?Ans..Question 15: What feature you want in a mobile set?Ans:

..Question 16: what is the ideal refill voucher for you?Ans: