G.N.D.C

PROJECT REPORT

ON

MARKETING STRATEGY OF

NOKIA & SAMSUNG

“In partial fulfillment of the requirement of Kumaun University for the Award of Degree in Bachelor of Business Administration”

SUBMITTED TO: SUBMITTED BY:Mrs. Asmeet Kaur sethi Sahib Khan (Management Faculty) BBA 6th semG.N.D.C Rudrapur Roll No. 112398 Phone- 9012000651

G.N.D.C

ACKNOWLEDGEMENT

I would like to take opportunity to thanks all the people who helped me in

collecting necessary information and making of this report. I am grateful to

all of them for their time energy and wisdom. Getting a project ready

requires the work and efforts of many people. I would like to thank all those

who have contributed in completing this project. First of all, I would like to

send my sincere thanks to Mrs.Asmeet Kaur Sethi for her helpful hand in the

completion of my project.

NAME – SAHIB KHAN

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TABLE OF CONTENTS

CHAPTER 1

INDUSTRY PROFILE 3

CHAPTER 2

COMPANY PROFILE

9

CHAPTER 3

RESEARCH METHODOLOGY 38

CHAPTER 4

COMPARISON BETWEEN NOKIA AND SAMSUNG

42

FINDINGS

58

LIMITATIONS 59

RECOMMENDATION

60

CONCLUSION 61

BIBLIOGRAPHY 63

QUESTIONNAIRE 64

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CHAPTER 1

INDUSTRY PROFILE

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INDUSTRY PROFILE

Growth in India's mobile sector, from a humble start in the mid-1990s, has

really picked up pace in recent years, aided by higher subscriber volumes,

lower tariffs and falling handset prices. Home to a clutch of global operators

working with local companies, India had almost 350 million mobile

subscribers (including GSM & CDMA) in early 2008.

The market was growing at an annual rate of around 60% and while the

ARPU has been steadily declining as competing operators offer cheaper

tariffs the usage levels have been high, thus slowing the decline of ARPU.

By 2008 there was a major push to take mobile services into the poorer and

rural areas of the country. Driven by cheap call rates, low handset prices and

rising incomes among the estimated 300 million of the population that are

described as the country's middle class, the boom in India's mobile market

was continuing into 2008. Also operators were increasingly eyeing the

poorer rural areas a potential markets for their services. India has continued

to attract a lot of attention in the global telecom sector, especially from

foreign players interested in entering the Indian market.

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India's mobile market finished in the 2007 year strongly with over

233 million subscribers in the sector according to the telecom

regulator's figures which cover GSM, CDMA and Wireless Local Loop

(WLL). The Telecom Regulatory Authority (TRAI) announced that the

country had added a record 8.32 million subscribers during November 2007,

up from 8.05 million one month previously. This was followed by 8.16

million in December.

India's mobile operators have been attracting new customers with call rates

ass low as US$0.01 a minute and by offering cheap handsets. While offering

some of the lowest tariffs in the world, the market also had the highest usage

in the world with the average customer using 500 minutes a month. In the

meantime, the fixed line segment experienced falling numbers, with the

overall base dropping to 39.3 million by the year end.

There was much evidence by early 2008 of the continuing global interest in

the Indian telecom market. With the market showing some of the most

consistent growth in the world throughout 2007, it has been the focus of

much attention by both foreign and domestic players. Vodafone arrived on

the scene with a considerable impact, having successfully acquired

Hutchison Telecom's 67% stake in Hutchison Essar for US$11.1 billion --

one of the largest ever single foreign investments in India. UK incumbent

BT also boosted its presence in India in 2007, expanding the footprint of its

managed network services and IT operations in the country through its

acquisition of i2i Enterprise.

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By the end of 2004 and ten years after India had launched mobile

services, India had 47.4 million mobile subscribers, up from 28

million a year earlier, after the national subscriber base had grown by 168per

cent in 2004. A total of 19.2 million mobile subscribers were added in 2004,

compared with 17.5 million in 2003. GSM operators added more than 1.5

million subscribers in 2004 to end up with 37.4 million at the end of the

year. CDMA operators had 9.9 million at end-2004, up from 6.2 million at

the end of 2003.

The Telecom Regulatory Authority (TRAI) announced in April 2005 that the

fiscal year ending March 2005 had seen what it described as 'unprecedented

growth' in telecoms service in India, with mobiles leading the way with 55

per cent growth rate. The main driver for the continuing high growth since

1996 had been the falling tariffs in a sector where the mobile operators have

been prepared to lose money to keep or win market share and have

consequently been fighting a fierce price war. Facing the prospect of

subscriber growth reaching saturation point in the larger cities, the country's

mobile operators were increasingly eyeing the vast rural market in the next

step in boosting mobile phone growth.

In March 2005 it was reported that the average per minute charge for mobile

services in India declined by 58 per cent to 1.20 rupee (US$0.27) during the

quarter ending December 2005, compared with 1.90 Rupee (US$0.043

during the previous quarter.

As an indication of how the Indian mobile market was expanding, In May

2005 LG Electronics India announced plans to build a GSM handset

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manufacturing plant in Ranjangaon near Pune as part of plans to

produce 20 million GSM handsets by2010. The company said the

facility was part of LG's plans to make India its global export hub. Sony-

Ericsson also said it saw significant new growth areas in emerging markets

like India which were helping drive sales of mobile phones.

There were 149.5 million mobile subscribers in India by December 2006,

representing a penetration of 13.6 per cent. Close to 74 million subscribers

were added in 2006 and according to TRAI, making it one of the most

attractive markets in the world for mobile operators and wireless equipment

vendors alike. The Cellular Operators Association of India (COAI) reported

that the country's nine GSM operators added 47 million subscribers in 2006

whilst The Association of Unified Telecom Service Providers (AUSPI)

reported the four CDMA-based operators added 25 million during 2006.

India's mobile operators committed to investments of about US$20 billion

over a two year period to 2009 to bring over 80 per cent of the population

under mobile coverage. The planned investment, announced in April 2007,

was 50 per cent higher that what had been invested in the 12 year period to

2006. In anticipation of the huge potential in both mobile penetration and the

coverage area of the networks, operators were planning a total capital

expenditure of US$10 billion each of fiscal 2008 and 2009. It was generally

agreed that significant growth opportunities existed in the rural areas, where

penetration remained around 1 per cent while worthwhile growth prospects

also remained in the urban areas where penetration was running at 40 per

cent at the time. Furthermore, it was expected that mobile revenues would be

substantial enough to support the huge CAPEX committed to the sector.

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The mobile market in India continued its strong growth through

2007 and looked to be carrying a 50 per cent annual growth rate into 2008.

While the market was initially totally a GSM domain, CDMA technology

was introduced as a Wireless Local Loop (WLL) service, which after a long

battle with the regulator was eventually accepted as a legal mobile service.

The subscriber base has developed into a fairly stable mix of GSM

subscribers, (74 per cent market share at end-2007) and CDMA subscribers

(24 percent). The regulator initially referred to these CDMA service as WLL

(Mobile), or WLL (M). These CDMA services were differentiated from

WLL (Fixed), or WLL (F) services, which at the time were being included

as part of the fixed-line segment of the market. In 2006, TRAI started

putting the emphasis on the 'wireless' in WLL in WLL (F) and grouped all

WLL services with 'mobile' services.

Although well behind China a terms of the total size of its mobile subscriber

base, a comparison of net growth by end 2006 was interesting. Chain added

a total of just fewer than 6.1 million subscribers in December 2006, bringing

the total additions for the December quarter to just less than 18 million;

India, by contrast, added 6.25 million in December to being the total number

of additions to 19.5 million for the quarter.

Key players of mobile phones

L.G.

Nokia

Motorola

Samsung Mobile

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Tata

Reliance

Sony Ericsson

Virgin mobile

Sony

CHAPTER 2

COMPANY PROFILE

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Story of Nokia

Nokia Corporation (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is an

international communications company, focused on the key growth areas of

wire line and wireless telecommunications. Nokia is currently the world's

largest manufacturer of mobile telephones, with a global device market share

of approximately 38% in Q2 of 2007. Nokia produces mobile phones for

every major market segment and protocol, including GSM, CDMA, and W-

CDMA (UMTS). The corporation also produces telecommunications

network equipment for applications such as mobile and fixed-line voice

telephony, ISDN, broadband access, voice over IP, and wireless LAN.

Nokia's headquarters are located in Espoo, a neighbouring city of Finland's

capital Helsinki. It has R&D, manufacturing, and sales representation sites

in many continents throughout the world. Nokia Research Center, the

corporation's industrial research laboratories, has sites in Helsinki; Tampere;

Toijala; Tokyo; Beijing; Budapest; Bochum; Palo Alto, California and

Cambridge, Massachusetts. Major production factories are located at Salo,

Finland; Beijing, China; Dongguan, China; Chennai, India; Komárom,

Hungary and the Ruhr region at Germany. In March 2007, Nokia signed a

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memorandum with Cluj-Napoca City Council, Romania to open a

new plant near the city in Jucu commune. Nokia's Design

Departure has stayed at Salo.

Nokia plays a very large role in the economy of Finland. Nokia is by far the

largest Finnish company, accounting for about a third of the market

capitalization of the Helsinki Stock Exchange (OMX Helsinki); a unique

situation for an industrialized country. It is an important employer in Finland

and several small companies have grown into large ones as Nokia's

subcontractors. Nokia increased Finland's GDP by more than 1.5 percent in

1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5 percent and

accounted for almost a quarter of Finland's exports in 2003. In 2006, Nokia

generated revenue that for the first time exceeded the state budget of

Finland. This has led some to refer to Finland as "Nokialand."

Finns have ranked Nokia many times as the best Finnish brand and

employer. Nokia is listed as the 5th most valuable global brand in Business

Week’s Best Global Brands list of 2007 (1st non-US company), the 20th

most admirable company worldwide in Fortune's World's Most Admired

Companies list of 2007 (1st in network communications, 4th non-US

company), and is the world's 119th largest company in Fortune Global 500

list of 2007, up from 131 of the previous year.

BRAND ARCHITECT

PRODUCT STRATEGY

Nokia provides its customers with a wide variety of products. As per the

income band, a series of phones have been produced to meet the customer

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demand. Here are some examples of various products in different

product levels offered by Nokia.

Our Companies Basic Product: Nokia 1100- This is a simple phone having

core benefits as well as certain added benefits such as a calculator, alarm,

games, etc.

Our Companies Expected Product: Nokia 6610- This product has certain

features which the consumer expects to be present in the handset. It has a

colour display, a radio, some value added games, and many more such

features.

Our Companies Augmented Product: N Series- This series has been lately

introduced and has some extraordinary functions but for a cost which is its

price. These phones can adapt to various devices, further some of these

phones are Wi-Fi enabled.

Our Companies Potential Product: Nokia provides its users with even the

option of customization. Though these phones are not officially launched but

they are sold under the same brand Nokia. Examples: Voice operated

phones, Nokia Sirocco Gold phones, etc.

PRODUCT CLASSIFICATION

Based on functional life (Durable or Consumable): Phones are basically

durables which last for a long period. Based on utility (Consumer goods or

Industrial goods): Phones are consumer good. They can be put under

Homogeneous Shopping goods. Based on tangibility (Tangible or

Intangible): They can be touched and seen hence they are tangible. Based on

price and quantity (Mass or Premium product): Premium products as they

are.

Product Assortment

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Product Width- 1

Nokia is only into Manufacturing of mobile handsets hence its

product width is 1.

Product Length - (No. Of products)

Presently Nokia provides its customers with 111 various cell phones,

excluding the prototypes in it.

Product Depth- (No. of products into colours)

Nokia provides its products in various colours. Though the product may be

the same but panels of various colours are available. Further it also provides

with small variations such as presence or absence of camera. Product

Consistency- Not applicable as Nokia is only in 1 field having no other

product lines

Branding Decisions

Nokia follows Umbrella as well as Company brand name strategy. Example

for Umbrella branding- N Series and E Series Example for Company brand

name – Nokia ****

Brand Equity

Nokia uses Line extension as well as Multi branding. It’s most common way

of introducing phones is by line extension, though it may sometimes evolve

a new brand which it has done in case of N-Series and lately in case of E-

Series. In reality a multi brand turns into line extension over a period of

time. Co-Brands- Nokia had incorporated with Renault and had made a joint

advertisement. This advertisement promoted both.

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Product Category

Old New

Brand Name

Old

New

Brand ExtensionNot applicable

New BrandNot applicable

Multi BrandN-Series, E-Series

Line ExtensionNokia ****

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Pricing Strategy

Nokia uses a pricing strategy that best suits the product. Keeping the product

in mind the company may go for mass distribution (Penetration) or else may

just tap a selected group (Skimming).

Market Skimming- N-95: As in case of this phone Nokia deliberately

focuses on only a selected rich group of consumers. The price is kept high as

their target is only to sell a limited number of phones at a higher margin.

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P1

P2

P3

Price/Cost

Time Period/ Units Produced

Experience Curve

T1 T2 T3

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Market Penetration- Nokia: The price of this phone is kept

nominal. The objective that Nokia wants to achieve through this

phone is high market penetration. The desired profits are attained by dealing

in volumes.

Analysing competitors’ cost price and offers- When 6610 was introduced,

other players namely Motorola and Sony Ericsson’s phones were not

considered to be reliable and user friendly, even though they were

marginally cheap. Further as Nokia was the market leader, the prices were

regulated by Nokia and other companies followed Nokia pricing decision

making i.e. if Nokia reduced its price than other companies also ought to

reduce their prices.

Methods- Initially it was VALUE PRICING and now it is GOING RATE

PRICING

Selecting final price- Using all the above, the final price is arrived at.

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Promotion Mix

Use of AIDA model in Nokia – N Series:

When Nokia launched its N Series of phones, it used the AIDA model to

great perfection. Before N Series phones came in the market, cell phones

were primarily used as a communication tool. Features like cameras, MP3

Players, Radio, and Bluetooth were the ones which used to catch attention of

the users. N Series phones revolutionised the cell phone industry with

features such as High Data Storage, High Quality camera, amazing sound

quality, professional usage etc.

Nokia first gained ATTENTION by highly publicising N Series phones as a

lifestyle product. Then it began to hold INTEREST of the people by coming

up with new models and variety of features in the N Series. This also helped

in arousing DESIRE in the market, which helped the company to make N

Series a great success despite the high prices of the phones.

Promotion Mix Tools

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a) Advertising

One of the strongest aspects of Nokia is its advertising strategy.

Nokia’s ad campaigns are have a short shelf life as they are known to be

coming up with one new model for each class(basic, mid, high end) in two

months. So they have something or the other new for the consumers, thanks

to their excellent innovation.

Nokia also come up with customised ads during specific events and

festivals. For example, they came up with an ad for Nokia 1110 during Holi

last year, with the concept that it’s a colour phone for the festival of colours.

b) Sales Promotion

Nokia does not stress much on Sales Promotion. This is because today the

cell phone market is moving really very fast with new models coming up

every third month, and even the consumers are ready to change at such a

short period.

c) Public Relations (PR)

Nokia has strong PR. They keep on doing some or the other new events,

programmes and publicity, so as to keep up with the brilliant image of the

company and also to enhance the brand equity.

One of the instance is they sponsored the COUNTDOWN event for NEW

YEAR 2007, wherein they used Nokia 5200 as their prime product. The

event featured NELLY FURTADO performing live. The event also

concentrated on GLOBAL WARMING.

d) Direct Marketing

Nokia does not perform Direct Sales activities on its official website

www.nokia.com. However, they do have contractual tie ups with other e-

commerce websites like www.ebay.com, www.amazon.com etc.

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Nokia does use DEMO style of Direct Marketing. They set up

kiosks extensively at various locations such as malls; business

parks etc. and had its latest product N 95 for demo. Nokia does not use

Direct Mail or Telemarketing styles of Direct Marketing.

Consumer Behaviour

1. Social Factors

Social factors like feedback on a specific product from family, friends and

peers influence the decision of a person whether to buy a product or not. For

example, Nokia 6800 is technically one of the best phones by Nokia.

However, in terms of features it is similar to Nokia 6610. So, the review was

not good and hence it affected the sales of Nokia 6800.

2. Personal Factors

Personal Factors like age, occupation, lifestyle, income and personality

affect the consumer behaviour. For example, a young college going person

may consider music and gaming as the add on features. So, he or she may

choose a Nokia N – Gage. On the other hand, a professional may consider

utility and may buy an N Series phone.

3. Psychological Factors

Psychological factors like perception make difference in consumer

behaviour. For example, a consumer may not buy a flip or a slide phone if he

or she thinks they are delicate handsets.

4. Cultural Factors

Not Applicable with respect to Nokia.

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Place Mix

Market Channels- Nokia uses both dealership as well as direct

selling strategy. It has opened its retail outlet ‘Nokia Priority’ as well has

many authorised dealers at various places. So Nokia uses 0 level, 1 level & 2

level Market channel levels.

Consumer

Manufacturer Dealer

Market Channel Levels-

0 level (outlets and internet) - Nokia has their retail outlets ‘Nokia

Priority’ also although they directly don’t sell product on their website

but they have contractual tie ups with other e-commerce websites like

www.ebay.com, www.amazon.com etc.

1 level (Dept stores- Hypercity) - Nokia has authorised dealers at

various places it also provide their product at super malls like

Hypercity.

2 level (Wholesaler Retailer channel followed) – This is the traditional

way of selling which Nokia does follow. Nokia’s products today are

available at almost all retail outlets dealing in mobile phones.

Vertical Marketing System

Administered (Nokia Priority Dealer) and Contractual (Various Dealership)

–

Steps involved in designing market channel

E-Series

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Analysing customer needs and expectations- breakthrough

technology and utility

a) Objectives and constraints- high profit (market skimming) and

(constraint) low volumes

b) Identifying channel alternatives- 0, 1 and 2 level

c) Evaluating major alternatives- high profits by catering to the needs of

higher level income customers, which are increasing in towns and cities

d) Selecting channel members

e) Training channel members

f) Motivating channel members

g) Evaluating channel members

h) Modify channel arrangements

E-Series

Market segmentation and targeting strategy

Target marketing

The market today has large number of customers and to satisfy each of them

individually is impossible of any company. So what any company does is it

comes out with a product which satisfies majority of its consumers. This is

known as target marketing. The target marketing done by Nokia is also the

same it targets major portion of the market whose preferences are similar. It

does a market survey of understanding the consumers. It is not actually a

survey but look at the type of cell phone which a consumer is looking for in

the market through the consumers demand. Nokia targets the market by

targeting groups holding major part of demand and accordingly manufacture

the product.

Example: - Targeting the lower income group who are looking for a cheaper

cell phone in the market like Nokia 1100. In market targeting strategy Nokia

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falls in “product specialization” pattern .As it specializes in the

same product line.

Market segmentation

Dr Philip Kotler defines market segmentation as “a process of identifying

groups of buyers with different desires or requirements”.

Levels of market segmentation:-

Mass marketing: - Nokia uses mass marketing techniques by manufacturing

cell phones which is suitable for major portion of market. Considering the

fact that there are a large number of families falling in the middle income

group in India, so their buying capacity is kept in mind and accordingly cell

phones are introduced in the market. In this way large number of market is

target and mass marketing is done by Nokia.

Segment marketing: - In segment marketing Nokia identifies groups having

similar wants, purchasing power, buying attitude etc and then comes out

with phones catering to different major groups and thus satisfying every part

of market with its product.

Example: - Cell phones 6610, 6610i, 2310 which have fm facilities and are

less expensive for middle class service people who travel in trains or via any

means of transport. This fm facility will attract such group of people and

will indulge such people in buying fm cell rather than normal simple cell

phones.

Niche marketing: - The latest E-series and N-series phones introduced by

Nokia are a classic example of niche marketing. Nokia with these latest cell

phones targeted the higher class businessmen in the society. These cell

phones had features like internet access, a large screen and all the possible

latest technology introduced till date. These cell phones are expensive and so

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it clearly shows that Nokia target a small fraction of higher income

group in the urban society.

Local marketing: - When it comes to local marketing Nokia is not into

local marketing. But country wise products are manufactured i.e. according

to the demand of product in the market.

Individual marketing: - Nokia in not into manufacturing of product

according to customer specifications. Therefore Nokia is still not into

customized marketing.

Basis of market segmentation:-

a) Geographic segmentation

1) Urban

2) Semi urban

3) Rural

b) Demographic segmentation

1) Age

2) Income

c) Psychological segmentation

1) Personality

On the basis of the above factors market segmentation in Nokia takes place.

Positioning strategy

Positioning strategy is an image which a marketer develops in the minds of

the customer in other words perception about the product in the minds of

consumer which is formed by the positioning strategy of the marketer. Any

company prefers one consistent positioning message.

In case of Nokia the positioning strategy used was “Nokia Connecting

People”. But from the time Nokia has been introduced in the market one

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image which was created in the minds of consumers was it was a

ruff and tuff piece i.e. its body is hard. But as the time passed by

today Nokia with its core positioning is also targeting its technological

advancement as positioning strategy. The positioning strategy of any

company plays a vital role in creating a psychological perception about the

product.

Differentiation strategy

It is nothing but adding valued difference to the product which a

competitor’s product will not be having in it. It is necessary as

differentiation is necessary for a product to be recognized and sold in the

market.

Differentiation tools:-

Product differentiation:-Nokia in terms of product differentiation has a

better quality outer body. Nokia has its own software’s supporting the

features in the cell phone. These make Nokia different from other cell phone

companies.

DISTRIBUTIONAL CHANNEL HIERARCHY OF NOKIA

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COMPANY

Direct Dealers(AWD)

Product Specific Dealer

NOKIA PRIORITY CENTER

Multi Branded Outlets

Distributors

Sub Dealers Retailers

G.N.D.C

As part of its distribution strategy, Nokia has ensured that it has a presence

in all 2,000 cities and towns that have cellular coverage. Nokia's distribution

network of over 30,000 outlets is roughly double that of its rivals, according

to industry sources. The other edge that Nokia has over its rivals is the large

portfolio of phones Unlike other consumer durables, a mobile phone is a

style statement much like the wristwatch. The design, style and colour

elements play an important role when consumers are choosing a phone.

Today it has the largest range of handset models to choose from. Nokia has

introduced phones at all price points, right from the mass market entry-level

phones to the mid-market colour and camera ph ones and also the high-end

exclusive phones. “Nokia empowers the consumer in that it offers a choice

of more than one phone at every price point,” says Kobita Desai, principal

analyst, telecom, with research firm, Gartner. “Thus, in the mid-market

range, you can have a phone suited for the corporate types while another

would be aimed at techno-loving teenagers.” Nokia lost its edge when

GSM's rival technology, CDMA, made its entry in 2009.

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SAMSUNG

Emerging Markets (EMs) with large consumer bases and untapped demand

constitute the major growth opportunities for the multinationalsand global

companies. However, not all companies are successful in establishing a

foothold, leave alone operating profitably, in such markets. For most, it

takes years of struggle before they can even breakeven. Marketing is

difficult in such EMs because of little or no market data, non-existent or

poorly developed distribution systems, lack of regulatory discipline, and

where regulations exist, a propensity to change them frequently and

unpredictably.

Samsung entered India in December 1995 as a 51:49 joint venture with

Reasonable Computer Solutions Pvt. Ltd (RCSPL), owned by Venugopal

Dhoot of the Videocon group. In 1998, RCSPL diluted its stake in Samsung

to 26% and in November 2002, the FIPB cleared Samsung's proposal to buy

RCSPL's remaining (23%) stake. With Samsung buying the total stake of

RCSPL, it became a wholly-owned subsidiary of its South Korean parent

company. In spite of being a latecomer to India, Samsung was able to

become one of the top consumer electronic companies in India, an emerging

market was due to a combination of several aspects: Product innovation,

Promotion, Pricing, distribution and Positioning; wherein Samsung

primarily focused at.

The three-pronged objectives of Samsung are: -

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1) Strengthening their channel relationships,

2) Enhancing their product portfolio and

3) Creating the best service infrastructure, to gain more mindshare."

Positioning:-

Many multinational companies adopt a “less developed countries” mindset,

assuming that these markets are at an earlier stage of the same development

path followed by the developed countries. To take the example of the

automobile industry, Ford and GM launched their outdated models like Ford

Ikon and Opel Astra in the Indian market. When these models did not sell

well, the companies changed course and decided to launch newer models in

India. In the case of Samsung, the company from the very beginning

launched its whole range of high technology products, which included

CTVs, audio and video products, information technology products, mobile

phones and home appliances in India. It introduced products such as the

‘Bio’ range in CTVs, high-powered Woofer series of colour televisions in

21-inch and 29-inch conventional and 21-inch flat TV segments. And not to

forget the lateset DNie television.

By positioning itself on the technology platform, Samsung was able to

differentiate itself from its competitors. Differentiation today is the key for a

brand to be preferred by the consumers, when there are so many other

brands within the same product category. Without differentiation, its loyal

customer base cannot be created or sustained. But to be a true differentiator,

a company must provide features that are meaningful to customers. Which is

what exactly Samsung has been doing.

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Products: -

Samsung’s product range in India includes CTVs, video products,

information technology products, mobile phones and home appliances. Its

product range covers all the categories in the consumer’s electronics and

home appliances. According, to the analyst’s wide product range of

Samsung is one of the main reasons for its success in the Indian market. The

wide range products are as follows: -

Home appliances

Microwave Oven

Refrigerator

Air Conditioner

Washing Machine

TV, video & audio

TV

DVD Player

Camcorder

Audio

Home Theater

Digital Audio Player

Digital Still Camera

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Mobile Phones

GSM

CDMA

Information technology products

Note PC

HDD

CD Rom & DVD Rom Drive

CD & DVD Read & Write Solution

Monitors

Laser Printers & Laser Based MFPs

Fax

Samsung by launching innovative products and using proprietory technology

was able to gain market share. Samsung has therefore set up Samsung India

Software Centre (SISC) and Samsung India Software operations unit (SISO)

for software development at Noida and Bangalore respectively. While the

Samsung India Software Centre in developing software solutions in

Samsung’s global software requirements for hi-end television like Plasma

and LCD TVs. SISO is working on major projects for Samsung Electronics

in the area of telecom: wireless terminals and infrastructure, Networking,

SoC (System on Chip) Digital Printing and other multimedia/digital media

as well as application software. In addition to working on global R&D

projects, SISO is also helping Samung India’s CDMA business by focusing

on product customization for the Indian market

MOBILE SEGMENT OF SAMSUNG

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Samsung India has created an independent vertical to handle its

digital mobile business. Under this vertical, the company expects to

grow volumes of these products (MP3, digital still cameras and digital

camcorders) by over 400% this year. "Looking at the strong growth

potential of these product categories in the Indian market and our strong

product lineup, we decided to set up a new team which will put a fresh focus

on this business," says R Zutshi, deputy managing director, Samsung India

Electronics. A team of 18 people and a general manager will lead the

vertical. The company's consumer electronic business now has three

verticals audio-visual (TVs), home appliances (washing machines) and

digital mobile. Samsung is targeting a market share of 12-14% in each of

the categories

Samsung Telecommunications India (STI), a design and technology leader

in the Indian Mobile market , today , announced the appointment of Actor

Aamir Khan as its Brand Ambassador for Samsung Mobile Phones in India.

Announcing Aamir Khan as Samsung’s Ambassador for Mobile Phones,

stated Mr. H. B. Lee, President & CEO, Samsung South West Asia

Headquarters, “The Samsung brand stands for qualities of innovation,

change, discovery, self-expression and excellence in performance. And these

very same qualities are epitomized by Aamir Khan, whose quality and depth

of work as well as versatility as an actor, have made him a much loved and

respected actor in India today. We are indeed very proud and privileged to

have him as our Brand Ambassador”.

The Company plans to leverage Aamir in its brand advertising as well as

product advertising for Mobile phones. In Sync with its thrust on

introducing innovative, consumer oriented, breakthrough technology

products, Samsung today announced its new brand positioning for Samsung

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G.N.D.C

Mobiles, which is reflected in its new, spunky, tagline - ‘Next is

What ?’ being used in all its communication material for mobiles.

Living up to its promise of ‘Next is What?’, Samsung today announced the

launch of five new, sleek and stylish Samsung Mobile phones that

exemplify cutting edge technology and design innovation. The new handset

range targets consumers across the multimedia (Imaging and Music),

Business Lifestyle and Popular segments.

The highpoint of Samsung’s Multimedia Phone range in the Music Phone

segment is the Samsung SGH –i450, which seeks to give users a Mobile

Theatre experience. Combining the next level in form and function, the i450

brings alive the pulsating experience of 3D surround sound powered by ICE

Power amplifiers by Bang & Olufsen. Storing, accessing and juggling music

on this mobile phone gives the users a new high because of the revolutionary

Music wheel and the Dual-Slider form factor. The SHG –i450 has been

priced at Rs.15, 000/-

The Samsung SGH-G800, the world’s first 5 mega pixel camera phone with

3x optical zoom, is the answer for customers’ needs to have the perfect

digital camera and the multimedia mobile phone combined into one single

device. A sleek camera phone, the G800 from Samsung Metal series is

equipped with advanced camera features such as face detection , Xenon

flash and Wide Dynamic Range (WDR), and also provides a very easy tool

for sharing images and videos. The Samsung G800 is priced at Rs.21, 799/-.

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G.N.D.C

Samsung i550, D 880 address the needs of the business consumer.

Powered by Symbian S60 operating system, the sleek and stylish

Samsung i550 comes with an in built GPS Receiver and five hot keys

provided for music, camera, navigation, internet and main menu. The

trackball provided in the phone allows for 360 degrees movement on the

screen for navigation and selection. This 3 mega pixel camera phone with

capability to support Bluetooth audio streaming is priced at around Rs.25,

000/- .

The Dual GSM Sim phone from Samsung – the Samsung D 880 comes with

3.2 Mega Pixel Camera, 2.3” Wide LCD screen, Bluetooth and Stereo FM

radio. It is priced at Rs.13, 799/-.

The new launch in the popular category of Samsung Mobile phones is the

Samsung J210. It is a stylish and compact 2 mega pixel camera phone with

FM recording and Bluetooth music streaming. Compact meets impact in the

form of the J210, which is priced at a very affordable Rs.6649/-

Samsung India has strengthened its distribution network in the country, by

appointing SSK and Link as its distributors for Mobile sales in the Western

and Eastern part of the country respectively. Thus, in addition to Telemart

and United Telelinks who were two distributors handling the distribution of

Samsung Mobiles in the country, the Company now has four distributors,

each operating on a regional basis. Telemart services the Northern markets

while UTL services South. “With Aamir Khan as our brand ambassador, our

strong, differentiated product lineup and our enhanced distribution reach, I

am confident that we should be in a position to double our market share in

the Indian market this Year”, states Mr. Lee.

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G.N.D.C

Product/Market Positioning

As mentioned earlier, Samsung has positioned themselves as wide variety

products, good quality-affordable priced company. There are many

companies competing in the same industry like Apple with its mp3 and

computer products, Canon Samsung is one of the largest electronics and IT

companies. According to Fortune, they have made themselves noticeable by

being ranked second company in their industry (Electronics, electrical

equipment) with a fortune 500 rank of 46 (Fortune, 2008). We have chosen

to position Samsung's products in 5 different categories, because they have

different position in each category.

Products & Market Positioning Diagram

32

Low Perceive Value

High Perceive Value

High Prices

Mobile

Digital Appliance

Semi Conductor

LCD HD TV/DVD

G.N.D.C

The substitutes in the telecom industry are landline phones and email. At the

moment, landline phones are losing popularity because of lower prices and

popularity of cell phones and internet calling programs. In the cell phone

industry, Apple's I phone has the latest technology with its Touch screen, but

companies are following and introducing new phones. Technology is very

important in this market. Samsung has just introduced new line of innovative

cell phones for 2009. Cell phones and PDA's have standard features and the

only product differentiation lies with adding services such as Bluetooth,

gaps and other communication applications and tools that are important for

customers in the cell phone industry. it is important to know that there are

several companies who compete based on price in the cell phone industry

because it is a product that all kind of customers want. Samsung provides an

affordable PDA with the modern features to satisfy the average telecom

user. Apple and Nokia are selling mobile phones with new technology for a

high price for customers who are willing to pay more. There are not many

substitutes for PDA's. The main one is using a cell phone or computer,

laptop to call someone using e.g. Skype.

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G.N.D.C

Omnia launching with amir khan as brand ambassador

Samsung launched its fully-loaded handset, Samsung Omnia (SGH-i900),

in the Indian market recently. A touch phone that features Samsung’s

patented TouchWiz user interface is a stylish and fully loaded handset that

could be tough competition to some HTC touch phones.

Specs:

• High resolution screen

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G.N.D.C

• 3.2-inch WQVGA LCD screen

• On-screen QWERTY keyboard

• Windows Mobile 6.1 Professional operating system

• MS Office documents such as PowerPoint, Excel and Word

• Outlook Express

• 12.5-mm

• 16 GB Internal Memory

• 16 GB microSD card from Sandisk

Features:

• Dedicated dome key to control communications

• DivX, Xvid and other video formats

• GPS

• Geo-tagging

• 5 megapixel CMOS camera

• Auto-focus (AF), face detection, smile detection and auto-panorama shot

• Optical mouse

Announcing the launch of Samsung Omnia, Sunil Dutt, Country Head-

Samsung Telecom, said, “Samsung Omnia is our flagship model aimed  at

users who desire  a lot of functionality, a lot of style, a lot of usability and a

lot of entertainment in one innovative device. Samsung Omnia  will help

users to be at the forefront of work and play and at the same time, to stay

connected anytime, anywhere”.

Price:

Rs. 39,999 (32 GB Memory) and Rs. 37,999 (24 GB Memory)

Among the spread sheet of Samsung in the Mobile World Congress, the star-

studded and the cynosure is its Omnia HD, projected as the recorder of video

in HD resolution and the play on an HD-ready TV. The brief outlook of this

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G.N.D.C

handset portrays – a 3.7 inch touch screen, Symbian S60 5.0

( claimed to be Samsung’s first touch-capable device), 640 x 360

pixel resolution ( with the display efficiency of 720p signal), an 8-megapixel

camera and back up for GPS.

To meet the needs and challenges of internet applications, the Omnia HD

has the ability to surf the Web aided by Wi-Fi / HSPA enabled

downloading(7.2Mbps) and the upload (5.76 Mbps); 16GB internal storage,

a via card slot for microSDHC to store further 32GB.Samsung is planning to

unveil this Omnia HD during the second quarter and the price may be higher

than the currently available one.

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G.N.D.C

BUSINESS PHONE FROM SAMSUNG

The strategy included bolstering its distribution network, rolling out a

number of mobile phone models in all price segments, and adopting a new

positioning for the brand supported by celebrity endorsement. With these

initiatives, the company aimed to increase its market share in India by 100

percent in 2009. Sunil Dutt (Dutt), country head (mobile business), Samsung

India, said, "We are looking at doubling our market share to 15 per cent in

2009, which at present is around 7-8 per cent. The company will make

required investments in building the brand, expanding channels and rolling

out new models." Samsung India, the 100 percent subsidiary of Samsung

Electronics Co. Ltd.2 (Samsung), had a manufacturing unit at Noida and

also imported high-end mobile phones from the parent company. Samsung,

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G.N.D.C

which had firmly established itself as the No.2 player in the global

arena in 2008 with a 14.3 percent market share,3 trailed Nokia,

Motorola, and Sony Ericsson in India. With Nokia's market share dropping

from 78 percent in 2005 to 48 percent in 2008 and its stranglehold on the

Indian market loosening, its rivals including Samsung were gearing up to

boost their market share further.4 Analysts expected fierce competition in

this market as all the companies viewed India, which had emerged as the

world's fastest growing mobile phone market, as a key market.

Earlier in 2008, Samsung India had planned to increase its market share to

20 percent by 2009, focusing primarily on the mobile phone replacement

market6.7 With this in mind, the company had discontinued its cheaper

monochrome-screen models and focused on offering sleek and stylish

mobile phones. Its slim phones, in particular, were popular with a segment

of the youth population. However, its market share continued to hover at

around 10 percent. In March 2009, True to its brand positioning ‘Next is

What?’, the new Samsung mobile phone launches exemplify the latest in

terms of cutting edge technology and design innovation. Addressing the

needs of the business users , are the Samsung SGH-i780 and the Samsung

D780.The Samsung SGH-i780 is a sleek smart device featuring a full

QWERTY keyboard and full touch screen. The Windows Mobile 6.0 device

features push email, MS Office, MSN Chat; GPS capabilities, an optical

mouse, Wi-fi support and 2-megapixel camera.

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G.N.D.C

CHAPTER 3

RESEARCH

METHODOLOGY

39

G.N.D.C

Meaning of Research

Redman and Mory define research as a “systemized effort to gain new

knowledge.” Some people consider research as a movement, a movement

from the known to the unknown.

Research is an academic activity and as such the term should be used in a

technical sense. According to Clifford Woody, research comprises 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.

Objectives of Research

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out

the truth which is hidden and which has not been discovered as yet. Though

each research study has it’s own specific purpose but the research objectives

can be listed into a number of broad categories, as following

1. To gain familiarity with a phenomenon or to achieve new insights into

it. Studies with this object in view are termed as exploratory or

formulative research studies.

2. To portray accurately the characteristics of a particular individual,

situation or a group. Studies with this object in view are known as

descriptive research studies.

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G.N.D.C

3. To determine the frequency with which something occurs or

with which it is associated with something else. Studies with

this object in view are known as diagnostic research studies.

4. To test a hypothesis of a casual relationship between variables. Such

studies are known as hypothesis-testing research studies.

Significance of Research

“All process is born of inquiry. Doubt is often better than overconfidence,

for it leads to inquiry and inquiry leads to invention.” Is a famous Hudson

Maxim in context of which the significance of research can well be

understood? Increased amounts of research make progress possible.

Research inculcates scientific and inductive thinking and it promotes the

development of logical habits of thinking and organization.

The role of research in several fields of applied economics, whether related

to business or to the economy as a whole, has greatly increased in modern

times. The increasing complex nature of business and government has

focused attention on the use of research in solving operational problems.

Research, as an aid to economic policy, has gained added importance, both

for government and business.

Research Methodology

Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how research is done

scientifically. In it we study the various steps that are generally adopted by a

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G.N.D.C

researcher in studying his research problem along with the logic

behind them. It is necessary for the researcher to know not only the

research methods or techniques but also the methodology.

Data Collection Source

Information was collected through both primary and secondary sources.

Primary Data: In some cases the researchers may realize the need for

collecting the first hand information. As in the case of everyday life, if we

want to have first hand information or any happening or event, we either ask

someone who knows about it or we observe it ourselves, we do the both.

Thus, the two methods by which primary data can be collected is

observation and questionnaire.

Secondary Data: Any data, which have been gathered earlier for some other

purpose, are secondary data in the hands of researcher.

The data collected for this project has been taken from the secondary

source.

Sources of secondary data are:-

Internet

Magazines

Publications

Newspapers

Broachers

42

G.N.D.C

CHAPTER 4

COMPARISON

BETWEEN NOKIA

AND SAMSUNG

Q1. Which brand comes to your mind when you think of high end mobiles?

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G.N.D.C

Nokia 65

Sony Ericson 28

Samsung 59

Motorola 32

Other 16

Nokia33%

Sony Ericson14%Samsung

30%

Motorola16%

Other8%

As per this study suggested that Nokia is still has market leadership in India

because 32% of the people has recalled Nokia adding to this 30% of the

people suggested that they have Samsung in top of the mind recall activity

similar to the that 16% of the people like Motorola and 14% of the people

suggested that Sony Ericson.

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G.N.D.C

Q2. Which brand of mobiles do you use at present?

Nokia 123

Sony Ericson 14

Samsung 30

Motorola 23

Other 10

Nokia62%

Sony Ericson7%

Samsung15%

Motorola12%

Other5%

As per this study suggested that 61% of the people currently using Nokia

which show there market leadership in the Indian market, and 15% of the

people using Samsung and 12% of the people using Motorola this kind of

output is also we are getting because of the People perceiving that Nokia is

the best brand which can be used for.

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G.N.D.C

Q3. What do you look for in mobiles?

Most Important Somewhat

Important

Least Important

Price

Safety

Looks

Brand Name

Reliability

  Most Important Somewhat Important Least Important

Price 98 35 67

Safety 78 87 35

Looks 134 23 43

Brand Name 141 32 27

Reliability 88 99 13

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G.N.D.C

Price Safety Looks Brand Name Reliability

98

78

134141

88

35

87

2332

99

67

3543

2713

Most Important Somewhat Important Least Important

As per our study suggested that 98 people out of 200 are suggested that

Price is the most important factor to choosing the Any Mobile Phone adding

to this 67% of the people suggested that Price is the Least important for

them when purchasing to the Mobile phone. It is found that Indian consumer

are very price sensitive, 87 people suggested that safety is the somewhat

important for the Mobile purchasing 134 people out of 200 suggested that

they purchase the Mobile phone according to the Looks wise where an

Brand name is playing very important role to purchasing the Mobile.

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G.N.D.C

Q4. Which mode has motivated your purchase for the particular brand?

a) Newspaper b) Television

b) Family and friends d) dealers e) Others

Newspaper 46

Television 76

Family & Friends 43

Dealers 22

Others 13

Newspaper23%

Television38%

Family & Friends22%

Dealers11%

Others7%

Customer purchasing power is also influenced through the advertisement

and the channel that chosen by the Mobile company to promote their

individual brands. As per our study suggested that 38% of the people out of

200 got the relevant information of the product from the Television, 23% of

the people suggested that the News paper is the Best Medium where they

can get the Maximum knowledge of the brand and there offers. 21% of the

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G.N.D.C

people suggested that the family and friends motivate them to

purchase any particular mobile phone.

Q5. Are you satisfied with the current purchase?

Fully Satisfied Somewhat Satisfied Not Satisfied

Fully Satisfied Somewhat Satisfied Not Satisfied

87 77 36

Fully Satisfied44%

Somewhat Satisfied39%

Not Satisfied18%

This question suggested and judge the satisfaction level of the existing

consumer towards their Mobile phone, 43% of the people who contributed

their views in the survey suggested that the that they are fully satisfied with

the mobile phone which they are using adding to this 39% of the people

suggested that they are somewhat satisfied with their current Mobile phone,

18% of the people suggested that they are not happy with the current handset

which they are using. It is very great opportunity for the mobile phone

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G.N.D.C

company to use unsatisfied customer to turn them out to their

potential customer.

Q6. Which brand are you looking for the purchase in future and why?

Nokia 87

Sony Ericson 23

Samsung 80

Motorola 8

Other 2

Nokia44%

Sony Ericson12%

Samsung40%

Motorola4%

Other1%

This question gives an insight people perception towards purchasing the

New handset which also reflects the customer perception towards the

customer preference. As per our data suggested that 12% of the people want

to purchase Sony Ericson mobile whether 43% of the people would like to

purchase Nokia so clearly Nokia is the Market leader , surprisingly Samsung

scored 40% people prefer to purchase this brand as they also come with

various inbuilt feature in that. For example recently launched Samsung

Marine is launched against of the Nokia 1100 which said the shock proof.

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G.N.D.C

Q7.would you recommend this brand to your friends?

Very Likely May be Unlikely

Very Likely May be Unlikely

136 39 25

Very Likely68%

May be20%

Unlikely13%

Recommendation

Word to mouth publicity always helps company to retain more and more

customer as per our study suggested that 68% of the people prefer to tell

other people about the features , and there new purchased mobile phone.

Adding to this 19% of the people they are not prefer any show off business

so they did not tell anybody for their new mobiles.

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G.N.D.C

Q.8. In the following scale how do you rate Nokia and Samsung

on following parameters? (1=excellent,2=v.

good,3=good,4=average,5=poor)

Brands Particulars excellentV

goodgood average poor

1.

Nokia price

Config.

style

After sale

service

2.

Samsung price

Config.

style

After sale

service

3.

others price

Config.

style

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G.N.D.C

  Brands Particulars excellent V good good average poor

1

Nokia price 108 12 32 43 5

Config. 87 45 36 26 6

style 56 67 65 9 3

After sale

service 45 55 59 34 7

2

Samsung price 68 69 43 13 7

Config. 49 67 39 29 16

style 87 49 47 16 1

After sale

service 78 49 23 30 20

3

others price 101 57 34 3 5

Config. 67 39 23 56 15

style 77 45 32 30 16

price Config. style After sale

service

price Config. style After sale

service

price Config. style

Nokia Samsung others

0

20

40

60

80

100

120

excellentV goodgoodaveragepoor

53

G.N.D.C

This question gives an insight where consumer preference is comes

from different parameter like Price , configuration, style and after

sales service, as per our study suggested that almost 108 people said Nokia

is the brand who can give the better price than the other, adding to this

Samsung has better style than the others mobile handset provider, almost

135 people would go for the Samsung because of the Style icon.

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G.N.D.C

Q.9.Place of purchase

Most of the people love to purchase High end phone from the

authorized retailers as suggested that almost 99% of the population 1% of

the customer using high end phone but they either purchase second hand or

near by the shop.

Q.10.What you liked about that showroom?

Particulars BrandsV.Goo

dGood

Averag

ePoor

V.Poo

r

1. Reach of outlet

Nokia

Samsung

S.Ericso

n

Others

2.Availability of

Designs

Nokia

Samsung

S.Ericso

n

Others

3. Price of models

Nokia

Samsung

S.Ericso

n

Others

4. Pride in

Ownership

Nokia

Samsung

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G.N.D.C

S.Ericso

n

Others

5.Special offers like

discounts.

Nokia

Samsung

S.Ericso

n

Others

6.

Behavior/

helpfulness

Of staff

Nokia

Samsung

S.Ericso

n

Others

  Particulars Brands V.Good Good Average Poor V.Poor

1 Reach of outlet

Nokia 49 67 39 29 16

Samsung 87 49 47 16 1

S.Ericson 78 49 23 30 20

Others 102 57 33 3 5

2

Availability of

Designs

Nokia 77 43 64 11 5

Samsung 111 12 28 32 17

S.Ericson 143 36 3 6 12

Others 99 78 11 9 3

3 Price of models Nokia 87 94 9 3 7

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G.N.D.C

Samsung 138 32 22 5 3

S.Ericson 67 59 18 46 10

Others 89 48 49 10 4

4 Pride in Ownership

Nokia 78 49 53 12 8

Samsung 68 34 32 45 21

S.Ericson 49 57 23 48 23

Others 68 67 25 35 5

5

Special offers like

discounts.

Nokia 120 35 12 23 10

Samsung 78 49 27 21 25

S.Ericson 59 69 45 22 5

Others 98 32 43 12 15

6

Behavior/helpfulness Nokia 87 32 36 26 19

Of staff Samsung 56 67 65 9 3

  S.Ericson 45 55 59 34 7

  Others 68 69 43 13 7

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G.N.D.C

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Noki

a

Sam

sung

S.Er

icson

Oth

ers

Reach of out-let

Availability of Designs

Price of models

Pride in Ownership

Special offers like discounts.

Behavior/helpfulness

Of staff

0

20

40

60

80

100

120

140

160

V.GoodGoodAveragePoorV.Poor

As this study suggested that the customer preference towards the various

parameter before the purchasing of Luxurious mobile handset , as per our

data suggested that Nokia has a strongest Reach of outlets, Samsung has the

Availability of the phone Is better than other while price of the model have

preference of NOKIA by the various consumer group.

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G.N.D.C

FINDINGS

We have compared both products on many bases like image

quality, internal and external memory, screen resolution, sound quality,

camera and other multimedia functions.

On comparing on the above basis we can say 6that Nokia’s n series is a

better product than Samsung in following ways-

Better image quality

Better internal as well as external memory

Better screen resolution

Better camera with flash

Better software

Have bigger market shear in India

Clearly Nokia’s n series have a upper hand in all the above features but if we

compare in terms of sound quality then we can say that Samsung’s walkman

series is a better product.

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G.N.D.C

LIMITATIONS

Many constraints were involved in doing this study. Some of them are as

follows.

The most significant limitation has been the individuals involved in

this study were very busy and did not spare much time in discussion.

The sample size selected for the survey was too small as compared to

large population.

The project was carried out only in the Delhi, so findings on data

gathered can be best true for Delhi only and not applicable to other

parts of state and country.

Indian stock market is a market where sentiments play a major role in price;

hence 100% accurate predictions cannot be made about its future path

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G.N.D.C

RECOMMENDATION

The study reflects that the use of sales promotion undeniably has increased

over the years in India. Future holds lot of promise for such schemes across

wider range of product-markets. Sales Promotion has ceased to be major

differentiator at least in the metros, with almost all companies offering

similar freebies and gifts. As a result now marketers have to find out some

innovative ways of sales promotion to differentiate from competitors.

Currently Price off and Bye one get one free offers are very effective to

attract the consumers towards the products. We have noted that these kind

of promotional tools are useful for short term increase in sales and to induce

first trial. These types of promotional schemes should be consistent and

changed from time to time depending upon season and competitor’s

schemes. With the Increasing number of supermarket, the branded packaged

goods work as silent sales person. So in such stores, sales promotion plays a

more effective role in stimulating consumers’ demands. One of the very

important facts we came to know from this project is that sale of goods

which contain large quantity and having big packaging e.g. detergent are

stagnating because consumer prefer to buy small pack goods, the reasons

are: small pack goods reduce risk of bad quality, It had low cost or say price,

and last but important factor i.e. mentality to purchase just to try first. Sales

of small pack goods are quite high, but from the company’s point of view

small pack goods is less profitable compare to large pack goods.

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G.N.D.C

CONCLUSION

Introduce the product with the offer of one free toothbrush with the

purchase of a brush which will help in blocking and prepointing the

purchase of the buyer.

As the target segment is the premium segment therefore, premium

pricing of the product is necessary.

Add value to the product by giving tips on taking good oral care, in the

back side of the package or a free pamphlet with the purchase of a brush,

like brushing twice a day, flossing, polishing, regular dental check-up by

your dentist, this shows a caring and concerned attitude by the company.

With the purchase of a toothbrush, give a free coupons which is to be

filled in by the consumer and can be used by him or her for getting a free

dental check-up as when and where specified in the advertisement in the

newspaper. This kind of scheme can be implemented by the company

once in two three months.

However, these suggestions can be used by the big players in the market or

the new entrant, who has to be a big player because a large investment is

needed for such heavy sales promotion and also an attempt should be made

to convert this low involvement product into a high involvement as it is

concerned with personal card and hygiene and a product of daily use. The

findings of the empirical study indicate that unless the brand to be promoted

is in the consideration set of the consumer, sales promotion by itself is

unlikely to have any major impact. Clearly this shows that managers need to

invest into brand building exercise so that his/her brand appears in the

consideration set of the target consumers. Only after this should he spend

time, money and energy on sales promotion activities. Sales promotion

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G.N.D.C

should not be used in isolation but need to be integrated with other

tools and in line with the overall positioning of the brand. Also the

importance of the role of mass media came out clearly in the study.

Companies need to create sufficient awareness about sales promotion

schemes through mass media in order to create awareness. Mobile products

are low involvement products characterized by switching behavior. Also the

person going to the shop for the purchase of soap is the final decision maker

of the brand. Hence it is essential that companies need to design attractive,

striking, visible POPs for scheme announcements. With respect to nature of

scheme, the finding suggested that premium (free gift) was popular with

companies. While both retailers and consumers preferred price offs. So it is

necessary that the perceived value of a free gift has to be appealing and high

for the target consumers.

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G.N.D.C

BIBLIOGRAPHY

The above data is collected from the following sources:

Internet

www.nokia.world.com

www.sonyericsson.india.in

www.comparemyphone.com

www.mycellphone.com

Book

Kothari, C.R. Research methodology, 3rd edition, 1997, Vikas

Publishing House Pvt. Ltd, New Delhi.

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G.N.D.C

QUESTIONNAIRE

  Particulars Brands V.Good Good Average Poor V.Poor

1 Reach of outlet

Nokia 49 67 39 29 16

Samsung 87 49 47 16 1

S.Ericson 78 49 23 30 20

Others 102 57 33 3 5

2

Availability of

Designs

Nokia 77 43 64 11 5

Samsung 111 12 28 32 17

S.Ericson 143 36 3 6 12

Others 99 78 11 9 3

3 Price of models

Nokia 87 94 9 3 7

Samsung 138 32 22 5 3

S.Ericson 67 59 18 46 10

Others 89 48 49 10 4

4 Pride in Ownership

Nokia 78 49 53 12 8

Samsung 68 34 32 45 21

S.Ericson 49 57 23 48 23

Others 68 67 25 35 5

5

Special offers like

discounts.

Nokia 120 35 12 23 10

Samsung 78 49 27 21 25

S.Ericson 59 69 45 22 5

Others 98 32 43 12 15

6 Behavior/helpfulness Nokia 87 32 36 26 19

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G.N.D.C

Of staff Samsung 56 67 65 9 3

  S.Ericson 45 55 59 34 7

  Others 68 69 43 13 7

PHONE No – 9012000651 (SAHIB KHAN)

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