Project Report On: Brand Preference of Mobile Phones With Special Reference To MOTOROLA PHONES
Project Report On: Brand Preference of Mobile Phones With Special Reference To MOTOROLA PHONES
Project Report On: Brand Preference of Mobile Phones With Special Reference To MOTOROLA PHONES
On
Brand preference of Mobile Phones
with special reference to MOTOROLA PHONES.
The completion of the project study that follows, seemed to be a distant goal
had it not been for the contribution of Dr. Ajay Rathore for allowing me to
work on a very intrinsic part on BRAND PREFERENCE OF MOBILE PHONES
with Special reference to MOTOTROLA PHONES.I thank him for the ideas and
basic concepts he delivered and shared with me, as they helped me a lot in
accomplishing this project of mine.
(Anshul Gupta)
PREFACE
The project gives an insight of the telecom sector through Motorola India ltd. It basically helps
understanding the brand preference of consumers with regard to mobile phones. It helps us to
know what are the basis on which a customer chooses a particular brand when he purchases a
new handset.
The project will help to learn about the growing telecom sector in India. The research will also
bring to light what all factors a customer considers at the time of purchase of a new mobile
phone.
TABLE OF CONTENTS
4. Recommendations
Limitations
Conclusions
9. BIBLIOGRAPHY
Founded 1928
a wholly owned subsidiary
of MOTOROLA
Headquarters Schaumburg, Illinois, United States
Electronics was established
[1]
Greg Brown, President and Co-CEO in January, 2003 after
Key people
Sanjay Jha, Co-CEO clearance from the Foreign
Investment Promotion
Industry Telecommunications
Board (FIPB). The trend of
Embedded systems beating industry norms
Microprocessors
Products Mobile phones
started with the fastest
Two-Way radios ever-nationwide launch by
Networking Systems
MOTOROLA in a period
Market cap $15 billion USD (2008) of 4 and 5 months with the
commencement of
Revenue ▲$36.622 billion USD (2007)
operations in May 2003.
Operating MOTOROLA set up a
▼ $553.0 million USD (2007)
income state-of-the art
The Greater Noida manufacturing unit line has been designed with the latest technologies at
par with international standards at Korea and is one of the most Eco-friendly units amongst
all MOTOROLA manufacturing plants in the world.
The year 2001 witnessed MOTOROLA becoming the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry. The company had
till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India
since its inception in 2003 , making it the fastest ever Rs 5000 Crores clocked by any
company in the Indian consumer electronics and home appliances industry. Having achieved
this milestone, MOTOROLA achieved another benchmark with the first ever sales of One
Lakh ACs (Windows and Splits) in a calendar year. MOTOROLA is poised to surpass its
turnover target of Rs. 2700 Crores this year and clock a turnover of Rs. 3000 Crores.
This year, MOTOROLA has emerged as the leader in Colour Televisions, Semi Automatic
Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In
Colour Televisions having set the sales target of one million units of Color Televisions for
2002, MOTOROLA has already achieved the one million mark in the month ahead of its
target.
MOTOROLA Electronics India is the fastest growing company in the consumer electronics,
home appliances and computer peripherals industry today.
MOTOROLA Electronics is continually providing superior technology products & value for
money to over 50 lac households in India.
Mr. K.R. Kim, Managing Director, MOTOROLA Electronics said, "I am extremely
pleased with our performance in 2006 as we have been able to sustain growth during
a year of slowdown in the consumer electronics and home appliances industry." He
added, "Our growth record has led us to expand manufacturing presence in India. We have
accordingly reinforced our sales and distribution network through the concept of area
offices to reach out more Indian consumers in semi urban and rural India."
History
Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was
adopted in 1947, but the word had been used as a trademark since the 1930s. Founders Paul
Galvin and Joe Galvin came up with the name Motorola when their company started
manufacturing car radios. A number of early companies making phonographs, radios, and other
audio equipment in the early 20th century used the suffix "-ola," the most famous being Victrola;
RCA made a "radiola"; there was also a company that made jukeboxes called Rock-Ola, and a
film editing device called a Moviola. The Motorola prefix "motor-" was chosen because the
company's initial focus was in automotive electronics. Many of Motorola's products have been
radio-related, starting with a battery eliminator for radios, through the first walkie-talkie in the
world, defense electronics, cellular infrastructure equipment, and mobile phone manufacturing.
The company was also strong in semiconductor technology, including integrated circuits used in
computers. Motorola has been the main supplier for the microprocessors used in Commodore
Amiga, Apple Macintosh and Power Macintosh personal computers. The chip used in the latter
computers, the PowerPC family, was developed with IBM and in a partnership with Apple
(known as the AIM alliance). Motorola also has a diverse line of communication products,
including satellite systems, digital cable boxes and modems
Products
Motorola creates several different products for use of the government, public safety officials,
business installments, and the general public. These products include cell phones, laptops, and
radios.
Spinoffs
Motorola developed the first truly global communication network using a set of 66 satellites.
The business ambitions behind this project and the need for raising venture capital to fund the
project led to the creation of the Iridium Company in the late 1990s. While the technology was
proven to work, Iridium failed to attract sufficient customers and they filed for bankruptcy in
1999. Obligations to Motorola and loss of expected revenue caused Motorola to spin off the ON
Semiconductor (ONNN) business August 4, 1999, raising for Motorola of about $1.1 Billion.
Further declines in business during 2000 and 2001, caused Motorola to spin off its government
and defense business to General Dynamics. The business deal closed September 2001. Thus GD
Decision Systems was formed (and later merged with General Dynamics C4 Systems) from
Motorola's Integrated Information Systems Group
On October 6, 2003, Motorola announced that it would spin off its semiconductor product sector into
a separate company called Free scale Semiconductor, Inc.. The new company began trading on the
New York Stock Exchange on July 16th of the following year.
Quality systems
The Six Sigma quality system was developed at Motorola even though it became best known
through its use by General Electric. It was created by engineer Bill Smith, under the direction of Bob
Galvin (son of founder Paul Galvin) when he was running the company. Motorola University is one
Motorola is known around the world as an innovator and leader in wireless and broadband
communications. It is committed to helping the people get and stay connected simply and
seamlessly to the people, information and entertainment they want and need. Motorola do this by
designing and delivering "must have" products, "must do" experiences and powerful
networks — with a full complement of support services as well. A Fortune 100 company with
global presence and impact, Motorola had sales of US$42.8 billion in 2006.
As a pioneer in wireless communications, Motorola has transformed the cell phone into an
icon of personal technology — an integral part of daily communications, data management
and mobile entertainment. Motorola not only designs, manufactures sells and services
wireless handsets, but also licenses its vast portfolio of intellectual property. Our collection
spans all cellular and wireless systems and includes integrated software applications as well
as one a large complement of Bluetooth®-enabled accessories. We offer
customers innovative product designs that deliver "must have" experiences, such as mobile
music and video — enabling seamless connectivity at work or at play.
COMPANY SUCCESS
Winner: WiMAX Flexible Point Access System, Best of WiMAX World Europe Awards,
2007
Excellence in Technology Innovation Ongoing Achievement: WiMAX Flexible Access
Point System, EOS Awards, NXTcomm Chicago, 2007
Industry Innovation Award: WiMAX Distributed Network Architecture, exchange
Magazine, Best of WiMAX World Awards, USA, 2006
Home-Networking Winners: Mot SVG2500 Wireless VoIP Cable Modem Gateway and
Mot SBV5400 VoIP Cable Modem/ Cordless Phone System, International CES Design and
Engineering Awards, 2006
Winner: Best Home Wireless Product, CES Mark of Excellence Awards, 2006
Product of the Year: VoIP Open-Application Enabling Platform, Internet Telephony,
USA, 2005
100 Most Technologically Significant Products of the Year: Printed Active Displays,
R&D 100 Awards, 2007
Nano50 Award: Motorola Labs' NED technology, Nanotech Briefs, 2006
Malaysia Leadership in ICT R&D Award: Motorola Software Center, Multimedia
Development Corporation, 2006
Best of ITS Research & Innovation Winner: MOTODRIVE, ITS America Awards, 2006
Innovation Excellence Award, Mobile Devices: Motorola China Research Center,
Excellent Innovation Team Awards, 2005
CORPORATE RESPONSIBILITY
Corporate responsibility means harnessing the power of our global business to benefit people.
It also means doing the right thing in all aspects of our business, including how we treat the
environment, our employees, our customers, our partners and our communities.
Top 100 Corporate Citizens: No. 4, Corporate Responsibility Officer Magazine, USA,
2007
Outstanding Safety Practice Award, National Safety Council, USA, 2006
Top 10 Most Socially Responsible Businesses, National Business Social Responsibility
Survey, Israel, 2006
Corporate Social Responsibility Certificate, Mexico Center for Philanthropy, 2006
Platinum Health Award, Health Promotion Board, Singapore, 2006
MOBILE DEVICES
Winner: CNET People’s Voice Award, ROKR E8, Consumer Electronics Show (CES), 2008
Winner: CNET Best of CES, Cell phones and Smartphones category, ROKR E8, Consumer
Electronics Show, 2008
Winner: Top 20 Products of CES — Editor's Choice Award, ROKR E8, Popular Mechanics
magazine, 2008
Winner: Best of CES 2008: Best Cell Phone, ROKR E8, LAPTOP magazine, 2008
Winner: 2008 CES Best of Innovations Design and Engineering Award, headphones
category, MOTOROKR S9, Consumer Electronics Show, 2008
Winner: Best of CES, Bluetooth® transfer category, Motorola T815, Smartphone-based
navigation system featuring MOTONAV, Bluetooth Special Interest Group (SIG), 2008
Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006
Winners: MOTORIZR and MOTOKRZR K1m, International CES Design and Engineering
Awards, 2006
Winners: Motorola/Burton Audex jacket and Motorola/Oakley RAZRWIRE, International
CES Design and Engineering Awards, 2006
Best of What's New: MOTO Q, Popular Science Magazine, 2006
Unique Product Winner: Motorola Audex Protective Gear, Bluetooth SIG Best of CES
Awards, 2006
First Place Hardware/Mobile Phone: SLVR L7, CTIA Wireless E-tech Awards, 2006
Editor's Choice, Mobile Phone: RAZR V3 Black/Pink, CNET, 2005
Best in Class: RAZR V3 Silver, PC News Weekly, 2005
Mobile Innovations Award: RAZR v3 Silver, Mobile News Awards, 2005
1.2 INTRODUCTION
Although cellular licenses were made technology neutral in September 2005, all the private
operators are presently offering only GSM based mobile services. The new licensees for the 4th
cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer
their mobile services.
Studying about the brand preference of Motorola mobile phones through the respondents.
INDUSTRY PROFILE
In the early 1990s, the Indian government adopted a new economic policy aimed at improving
India's competitiveness in the global markets and the rapid growth of exports. Key to achieving
these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,
Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India. The
circles are further classified under "A," "B" and "C," with the "A" circle being the most
attractive and "C" being the least attractive. The regulatory body at that time — the
Department of Telecommunications (DOT) — allocated two cellular licenses for each metro
and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in
1995. The first cellular service was provided by, Modi Telstra in Kolkata in August 1995. For
the auction, it was stipulated that no firm can win in more than one metro, three circles or
both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while
West Bengal and Assam had only one bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok
Sabha, and the president officially announced the TRAI ordinance on 25 January 2003. The
government decided to set up TRAI to separate regulatory functions from policy formulation,
licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole
responsibility of the DOT.
High license fees and excessive bids for the cellular licenses put tremendous financial burden
on the operators, diverting funds away from network development and enhancements. As a
result, by 2005 many operators failed to pay their license fees and were in danger of having
their licenses withdrawn. In March 2005, a new telecom policy was put in place (New
Telecom Policy 2005). Under this new policy, the old fixed-licensing regime was to be
replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue
were to be paid to the government.
1.4 OBJECTIVES
The Primary Objective was to study the perception & buying behavior of customers towards
various mobile brands with special reference to “MOTOROLA”.
Major features, which a customer looks for in a mobile before making a purchase.
Brand awareness of MOTOROLA mobile phones in the market.
Title Justification – This title is justified as it tells about the customer preference towards
Motorola mobile phones as compared to other brands.
SAMPLING METHODOLOGY:
2.1 Sampling Size – 25 respondents
Primary data has been used by me in the form of Questionnaire & Observation, which are the
two basic methods of collecting primary data, which suffices all research objectives.
Secondary data sources like catalogue of the company, product range book of the company &
various internet sites such as motorola.com & google.com have been used.
FINDINGS
Nokia, Samsung, Motorola and Sony Ericsson are the favorite as brands among the customers
in Delhi Market, closely followed by others.
The general opinion about MOTOROLA mobile phones is that it is either good or
satisfactory.
DATA ANALYSIS AND INTERPRETATION
100%
Figure 1
Interpretation: -
It was found out that all the 50 respondents were using mobile phones.
10%
12%
44%
22%
12%
Figure 2
Interpretation:-
The above chart (Figure2) shows the percentage of various handsets used by the respondents.
Satisfaction
yes no
16%
84%
Figure 3
Interpretation: -
The chart (Figure3) shows maximum number of respondents who were satisfied with their
handsets.
AWARENESS
NOT AWARE AWARE
2%
98%
Figure 4
Interpretation: -
The pie chart(Figure4) shows the percentage of respondents who were aware of the brand
Motorola.
Figure
Frequency of changing a handset
a week a month six months a year
5
18%
20%
Interpretation: -
The above chart (Figure 5) depicts
the respondents buying behavior
with reference to time.
22%
36%
Interpretation: -
28% This chart (Figure 6)
depicts the respondents’
next preference for mobile
10%
14% phones.
16%
72%
Figure 7
Interpretation: -
This shows (Figure 7) the source of purchase of handset of the respondents.
8.) Do you think Motorola mobile phones are value for money?
20%
Interpretation: -
This shows (Figure 8) that maximum
respondents consider Motorola
80%
mobile phones value for their money.
24%
feature that should be
12%
present in a mobile
phone?
12%
44% Figure 9
Interpretation: -
This shows (Figure 9) the various additional features which customer takes into account while
purchasing handset.
Interpretation: -
32% This shows (Figure 10) that the
after sales service is considered
62%
to be of prime importance to the
respondents.
In my survey I found that almost 90% of the customers purchased their material from local
dealers and only 10% of them purchased from the sales representative of the company.
In the Telecom Industry there are usually National & City distributors. A three-tier system is
followed whereby:
In case of MOTOROLA the Company has been following a very systematic channel approach
whereby only the first two Tiers are involved.i.e
MOTOROLA ’s billing of goods are directly billed to the Local Distributor which not only helps
in better interaction with them but also gives the company a more Microscopic focus of all the
happenings along with the Accountability of goods sold. The company through this practice of
it’s not only able to increase its revenue but is also able to increase its margins better.
MAJOR BRANDS THAT ARE DEALT BY DEALERS
Most of the executives who were surveyed had almost all the Brands of Mobile Handsets with
them and the final analysis upon which I arrived at was that Nokia is the No.1 selling Handset in
Delhi followed by Samsung, Motorola and Sony Ericsson.
Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology
and its loyalty towards the Indian customer which certainly makes it the most superior brand.
The biggest advantage that has worked in Nokia’s favor is its marketing strategy, which focuses
more on their state of the art Handsets. They were the first company to come with a mobile with
an in-built camera in it and they surely knew how to sell their product. Today almost all mobile
companies have followed suit and come out with their own in-built camera mobiles.
Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed agreed
on this statement, not only is the after sale service excellent but also the quality and pricing of
products is excellent. In such a scenario not only the existing companies but also the new
entrants such as MOTOROLA, BenQ, Alcatel etc will have to justify their launch in the long
run.
1. Color Screen – Color Screen phones are the latest and the most wanted trend in the market
these days as these phones boast of a High Color Resolution Display so that the customer can
enjoy in his/her phone an exhilarating melange of colors. Most of the color phones boast of
65000-color display, which makes not only the resolution but also the picture quality treat to the
eyes. Color screen phones are in major demand by the public, which accounts for at least 50% in
the survey conducted.
2. MMS (Multimedia Messaging Service) - With MMS, it is not only possible to send your
multimedia messages from one phone to another, but also from phone to e-mail, and vice versa.
This feature dramatically increases the possibilities of mobile communication, both for private
and corporate use.
3. Integrated Camera – The latest in-thing, mobile phones with in-built camera. These
phones serve the twin service of mobile and a camera. One can not only click but also store
photos and even send it to their near and dear ones. Camera phones accounted for at least 10%
respondents in the survey conducted.
4. Tri-Band – A tri-band facility is useful for people who are constantly going abroad as a tri-
band enabled handset let’s one access the network of another country also and also keeps you
connected with people back home.
5. Size/Weight – These days mobile handsets come in various shapes and sizes with different
weights. The needs and requirements of a customer differ from person-to- Person as some like
bigger sets with minimum weight whereas there are some who prefer lighter sets with lighter
weights.
6. Talk/Stand by Time – Customers do pay a lot of attention on talk/stand by time as they
want a mobile, which can last the longest. Companies often promise of talk time
Of 4-6 hrs on various handsets, but ultimately it’s the customer who has to decide and make the
best choice for him.
7. WAP (Wireless Application Protocol) – WAP let’s one access the Internet-based services
supported by your network, such as news, weather reports and flight timings etc, even when you
are mobile.
8. Battery – Every customer wants his/her battery to last the longest and all mobile companies
fight out promising that their battery backup is the best. A mobile function on a battery and a
cheap and sub-standard battery always makes the customer vary of the companies’ products and
services.
9. Mp3 Ring Tones – An mp3 ring tone is the next generation of ring tones that has better
sound quality than traditional monotone or a polyphonic ring tones. Mp3 ring tones sound great
and truly make your phone unique. Mp3 ring tones phones are in major demand by the
customers.
SWOT ANALYSIS
STRENGTH: -
A well established brand name helps in promoting a new range of products. MOTOROLA is a
Multinational Company based in South Korea, which is considered to be a technically advanced
country with advanced products to meet the requirement of target customers internationally.
The company has a wide range of products to suite the purse & the taste of various segments of
customers.
The company has a huge advertisement budget which helps in brand positioning & recall.
It has a well established sales network of more than 4000 dealers & branch offices around the
globe & the company makes such of its products available as are in demand in each particular
area.
WEAKNESS: -
The company needs to evolve a comprehensive plan & strategy to make inroads into a part of
middle class & upper middle class.
Lack of production centers in India makes the product costlier as most of the parts have to be
imported.
Lack of R & D centers also makes it difficult to launch new products over here.
OPPORTUNITIES: -
The present rate of growth of the Entertainment & Telecommunication Industry & a large
potential available in these areas provides excellent opportunity for the company to widen its
market.
With the fast growing economy the pricing strategy needs to be tackled with care as it can
decide upon long term decisions of the company.
THREATS: -
It is natural that threats from the existing as well as new entrants will affect the present turnover
& Market share. The nearest competitors having the identical product range are the greatest
threat to the company.
CHAPTER 4
RECOMENDATIONS
The company should try to reach maximum Consumers in INDIA by making distribution
channel more effective.
The company should continue to work on the Strategy of T.Q.M (Total Quality Management)
The MOTOROLA is a brand in itself and non-of the other brands are in a position to compare
with it in Quality, Reliability, Brand Image. Even then a number of other brands are entering
the market and are acquiring a good market share. The main reason behind it is that the
distributors of the company are not able to provide regular supply to the retailers in all the
areas.
Consumers do not get satisfied with the promotional policies of the company. New
techniques of promotion is required to create awareness about the entire range of
MOTOROLA products
LIMITATIONS
A small sample size of 50 customers was considered due to lack of time & resource
constraints.
The scope of the project is limited to the city of Delhi and N.C.R. So, we cannot say that the
same response will exist throughout India.
With regard to uneducated customers it was difficult to get across to them all the features of
their respective mobile phones.
CONCLUSION
Hereby I can conclude from this research that Nokia has the maximum brand preference as
compared to other brands.
Most of the dealers are selling more than one brand. They sell different brands to gain more
volume & more availability to the customers. So dealer’s preference to push a particular brand to
the customer plays a major role in the mobile market.
According to the dealers advertising & promotional schemes along with other schemes also
affect the consumer’s willingness. Aggressive advertising put into effect for a long time in the
customers mind, which influence the people, are T.V, Newspapers & magazines.
Consumers prefer a MNC brand due to the quality & technological superior features. Consumers
also judge the after sale service availability of the company before purchasing a mobile.
BIBLIOGRAPHY
WEBSITES:
Http://en.wikipedia.org/wiki/Motorola
http://www.google.co.in/search?hl=en&q=motorola&meta=
Http://www.motorola.com/content.jsp?globalObjectId=8592-11929
http://www.fonearena.com/motorola-phones.html
http://solutionscatalog.motorola.com/
http://www.nesscoinvsat.com/invsat/default_product_page.asp?pageid=615
ANEXURE
QUESTIONNAIRE
Name: _________________________________
Age: _____yrs
Occupation: _______________
Q5. In what time you are thinking to change your handset or buying a new one?
Within a week
Within a month
Within six months
Within a year
Q6. To which handset will you move?
Nokia
Samsung
Motorola
Sony Ericsson
Others
Q8. Do you think Motorola mobile phones are value for money?
Yes
No
Q9. What according to you is the most important additional feature that should be present in a
mobile phone?
Integrated camera
Bluetooth
Mp3
MMS
Others
Q10. How important is after sales service in the mobile industry?
Very important
Important
Average