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MARKETING STRATEGY OF
NOKIA & SAMSUNG
SUBMITTED BY :PINAK PAUL
MANAV RACHNA INTERNATIONAL UNIVERSITY
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.NehaWadhawan for her helpful hand
in the completion of my project.
NAME –PINAK PAUL
TABLE OF CONTENTS
INDUSTRY PROFILE 3
COMPANY PROFILE 9
RESEARCH METHODOLOGY 38
COMPARISON BETWEEN NOKIA AND SAMSUNG 42
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.
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
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.
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
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.
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
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 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.
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
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,
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
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.
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
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
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 ****
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.
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.
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
Time Period/ Units Produced
T1 T2 T3
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
Selecting final price- Using all the above, the final price is arrived at.
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
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
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
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
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.
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.
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.
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.
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
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
Vertical Marketing System
Administered (Nokia Priority Dealer) and Contractual (Various Dealership)
Steps involved in designing market channel
Analysing customer needs and expectations- breakthrough technology and
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
Market segmentation and targeting strategy
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 falls in “product specialization” pattern .As it specializes in
the same product line.
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
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 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
Basis of market segmentation:-
a) Geographic segmentation
2) Semi urban
b) Demographic segmentation
c) Psychological segmentation
On the basis of the above factors market segmentation in Nokia takes place.
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
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.
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
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
DISTRIBUTIONAL CHANNEL HIERARCHY OF NOKIA
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.
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
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: -
1) Strengthening their channel relationships,
2) Enhancing their product portfolio and
3) Creating the best service infrastructure, to gain more mindshare."
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.
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
• Air Conditioner
• Washing Machine
• TV, video & audio
• DVD Player
• Home Theater
• Digital Audio Player
• Digital Still Camera
• Mobile Phones
• Information technology products
• Note PC
• CD Rom & DVD Rom Drive
• CD & DVD Read & Write Solution
• Laser Printers & Laser Based MFPs
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
MOBILE SEGMENT OF SAMSUNG
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 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,
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.
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
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
Low Perceive Value High Perceive
• Digital Appliance
• Semi Conductor
• HD TV/DVD
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.
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.
• High resolution screen
• 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
• 16 GB Internal Memory
• 16 GB microSD card from Sandisk
• Dedicated dome key to control communications
• DivX, Xvid and other video formats
• 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”.
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 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.
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, 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.
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.
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 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 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
Sources of secondary data are:-
BETWEEN NOKIA AND
Q1. Which brand comes to your mind when you think of high end mobiles?
Sony Ericson 28
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.
Q2. Which brand of mobiles do you use at present?
Sony Ericson 14
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.
Q3. What do you look for in mobiles?
Most Important Somewhat
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
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
Q4. Which mode has motivated your purchase for the particular brand?
a) Newspaper b) Television
b) Family and friends d) dealers e) Others
Family & Friends 43
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
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
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 company to use unsatisfied customer to turn them out to their
Q6. Which brand are you looking for the purchase in future and why?
Sony Ericson 23
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
Q7.would you recommend this brand to your friends?
Very Likely May be Unlikely
Very Likely May be Unlikely
136 39 25
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.
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 excellent
good average poor
2. Samsung price
Brands Particulars excellent V good good average poor
Nokia price 108 12 32 43 5
Config. 87 45 36 26 6
style 56 67 65 9 3
service 45 55 59 34 7
Samsung price 68 69 43 13 7
Config. 49 67 39 29 16
style 87 49 47 16 1
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
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.
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
Q.10.What you liked about that showroom?
1. Reach of outlet
3. Price of models
5. Special offers like
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
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
Special offers like
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
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.
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.
Many constraints were involved in doing this study. Some of them are as
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
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
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
⇒ 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
⇒ 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 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
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.
The above data is collected from the following sources:
• Kothari, C.R. Research methodology, 3rd
edition, 1997, Vikas
Publishing House Pvt. Ltd, New Delhi.