A

RESEARCH REPORT
ON
CONSUMER BEHAVIOUR OF MOBILE PHONE
USERS A CASE STUDY OF NOKIA AND SAMSUNG
Submitted in Partial Fulfillment of the Requirements for the
Award of Degree
Of
MASTER OF BUSINESS ADMINISTRATION
U.P.TECHNICAL UNIVERSITY, LUCKNOW
ACADEMIC SESSION
(2008-2010)

SUBMITTED BY
Narendra Kumar
Roll no-0807470047
UNDER THE GUIDENCE OF:-
Mr. PRASHANT SHARMA

DEWAN INSTITUTE OF MANGEMENT STUDIES

BY PASS ROAD, PARTAPUR, MEERUT

[250001]

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ACKNOWLEDGE
MENT

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ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom

routine can substitute which is possible while working in real situations.
Application of theoretical knowledge to practical situations is the
bonanzas of this survey.

Without a proper combination of inspection and perspiration, it’s not

easy to achieve anything. There is always a sense of gratitude, which we
express to others for the help and the needy services they render during
the different phases of our lives. I too would like to do it as I really wish
to express my gratitude toward all those who have been helpful to me
directly or indirectly during the development of this project.

First of all I wish to express my profound gratitude and sincere thanks to

my esteemed learned to Mr. J. C. Pant (Director) Of Dewan Institute
of Management Studies ,Meerut ,Mr. Gaurav Kaushik (Head of the
Dept.M.B.A) who allowed me to conduct the survey.

I would like to thanks Mr. Lokesh Upreti who was always there to
help and guide me when I needed help. Her perceptive criticism kept me
working to make this project more full proof. I am thankful to him for
her encouraging and valuable support. Working under her was an
extremely knowledgeable and enriching experience for me. I am very
thankful to her for all the value addition and enhancement done to me.

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 No words can adequately express my overriding debt of gratitude to my
parents whose support helps me in all the way. Above all I shall thank
my friends who constantly encouraged and blessed me so as to enable
me to do this work successfully.

Narendra Kumar
MBA 4rth SEM
Roll no-0807470047

DECLARATION

Hereby declare that the project report entitled “CONSUMER BEHAVIOUR OF

MOBILE PHONE USERS A CASE STUDY OF NOKIA AND SAMSUNG”
submitted for the degree of Master of Business Administration, is my

original work and the project report has not formed the basis for the

award of any diploma, degree, associate ship, fellowship or similar other

titles. It has not been submitted to any other university or institution for

the award of any degree or diploma.

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 Narendra Kumar

MBA 4rth Sem.

Roll no-0807470047

TABLE OF CONTENT

Contents Page No.

Introduction 6
Objective of Study 43
Scope of Study 45
Company Profile Of Nokia 13
Company Profile of Samsung 32
Research Methodology 46
Research & Discussion 48
Review & Literature 51
Data Analysis & Interpretation 55
Conclusion & Suggetions 63

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Appendix 67
Biblography 69

INTRODUCTION

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 INTRODUCTION

1.1 Definition of Cellular/Mobile phone:-

The Cellular telephone (commonly "mobile phone" or "cell phone" or

"hand phone") is a long-range, portable electronic device used for mobile

communication. In addition to the standard voice function of a telephone,

current mobile phones can support many additional services such as SMS

for text messaging, email, packet switching for access to the Internet, and

MMS for sending and receiving photos and video. Most current mobile

phones connect to a cellular network of base stations (cell sites), which is

in turn interconnected to the public switched telephone network (PSTN)

(the exception is satellite phones.Cellular telephone is also define as a

type of short-wave analog or digital telecommunication in which a

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subscriber has a wireless connection from a mobile telephone to a

relatively nearby transmitter. The transmitter's span of coverage is called a

cell. Generally, cellular telephone service is available in urban areas and

along major highways. As the cellular telephone user moves from one cell

or area of coverage to another, the telephone is effectively passed on to

the local cell transmitter. A cellular telephone is not to be confused with a

cordless telephone (which is simply a phone with a very short wireless

connection to a local phone outlet). A newer service similar to cellular is

personal communications services (PCS).

1.2 Meaning of Consumer Behaviour:-

Consumer behavior is the study of how people buy, what they buy, when

they buy and why they buy. It blends elements

from psychology, sociology, sociopsychology, anthropology and economics

. It attempts to understand the buyer decision making process, both

individually and in groups. It studies characteristics of individual consumers

such as demographics, psychographics, and behavioural variables in an

attempt to understand people's wants. It also tries to assess influences on

the consumer from groups such as family, friends, reference groups, and

society in general.

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1.3 Factors affecting Consumer Behaviour:-
Black box model
ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
Marketing Environmental Buyer Decision RESPONSE
Stimuli Stimuli Characteristics Process

Problem
recognition
Information Product choice
Attitudes
Product Economic search Brand choice
Motivation
Price Technical Alternative Dealer choice
Perceptions
Place Political evaluation Purchase timing
Personality
Promotion Cultural Purchase Purchase
Lifestyle
decision amount
Post-purchase
behavior

The black box model shows the interaction of stimuli, consumer

characteristics, decision process and consumer responses. It can be

distinguished between interpersonal stimuli (between people) or

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intrapersonal stimuli (within people). The black box model is related to the

black box theory of behaviorism, where the focus is not set on the

processes inside a consumer, but the relation between the stimuli and the

response of the consumer. The marketing stimuli are planned and

processed by the companies, whereas the environmental stimulus are

given by social factors, based on the economical, political and cultural

circumstances of a society. The buyer’s black box contains the buyer

characteristics and the decision process, which determines the buyer’s

response.

The black box model considers the buyers response as a result of a

conscious, rational decision process, in which it is assumed that the buyer

has recognized the problem. However, in reality many decisions are not

made in awareness of a determined problem by the consumer.

1.4 Stages of the Consumer Buying Process:-

Six Stages to the Consumer Buying Decision Process (For complex

decisions). Actual purchasing is only one stage of the process. Not all

decision processes lead to a purchase. All consumer decisions do not

always include all 6 stages, determined by the degree of

complexity...discussed next. The 6 stages are:

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1. Problem Recognition (awareness of need)--difference between

the desired state and the actual condition. Deficit in assortment of

products. Hunger--Food. Hunger stimulates your need to eat.

Can be stimulated by the marketer through product information--did

not know you were deficient? I.E., see a commercial for a new pair of

shoes, stimulates your recognition that you need a new pair of shoes.

2.

3. Information search—

o Internal search, memory.

o External search if you need more information. Friends and

relatives (word of mouth). Marketer dominated sources;

comparison shopping; public sources etc.

A successful information search leaves a buyer with possible

alternatives, the evoked set.

Hungry, want to go out and eat, evoked set is

o Chinese food

o Indian food

o burger king

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 o Klondike kates etc

4. Evaluation of Alternatives--need to establish criteria for

evaluation, features the buyer wants or does not want. Rank/weight

alternatives or resume search. May decide that you want to eat

something spicy, Indian gets highest rank etc.

If not satisfied with your choice then return to the search phase. Can

you think of another restaurant? Look in the yellow pages etc.

Information from different sources may be treated differently.

Marketers try to influence by "framing" alternatives.

5. Purchase decision--Choose buying alternative, includes product,

package, store, method of purchase etc

6. Purchase--May differ from decision, time lapse between 4 & 5,

product availability.

7. Post-Purchase Evaluation--outcome: Satisfaction or

Dissatisfaction. Cognitive Dissonance, have you made the right

decision. This can be reduced by warranties, after sales

communication etc.

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 After eating an Indian meal, may think that really you wanted a

Chinese meal instead.

1.5 NOKIA:-

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Contact Information

Address:
Keilalahde +358-7-1800-8000
ntie 2-4
Fl-02150
Espoo,
Finland
Phone:
Fax: +358-7-1803-8503

Financial Highlights
Fiscal Year End: December
Revenue (2008): 71485.90 M
Revenue Growth (1 yr): (-4.90%)
Employees (2007): 100,534
Employee Growth (1 yr): 46.80%

Key People
• Chairman: Jorma Ollila
• President, CEO, and Director: Olli-Pekka Kallasvuo
• EVP and CFO: Richard A. (Rick) Simonson

Industry Information
Sector: Technology
Industry: Communication Equipment

Top Competitors
• Telefonaktiebolaget LM Ericsson (eric)
• Samsung, Inc. (mot)
• Samsung Electronics Co., Ltd.

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1.5(i) History of NOKIA:-

 Established in 1865 as a wood-pulp mill by Knut Fredrik Idestam on

the banks of Nokianvirta River in Finland.

 Finnish Rubber Works acquired Nokia Wood Mills, Telephone and

Telegraph Cables.

 Nokia Corporation created - 1967 -paper products- car tires- personal

computers-cables.

 Nokia began developing the digital switch (Nokia DX 200) which

became a success.

 1991 Nokia - agreements to supply GSM networks - nine European

countries.

 August 1997 Nokia - GSM systems to 59 operators in 31 countries.

1.5(ii) The Vision of Nokia:-

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“Our vision is a world where everyone can be connected. Our vision is to

ensure that 5 billion people are always connected at any given point and to

achieve 100 fold more network traffic.”

1.5(iii) Nokia Today:-

 Head office in Finland; R&D, production, sales, marketing activities

around the world.

 World’s #1 manufacturer of mobile devices, with 38% share in 2007

112 262 employees.

 Sales in more than 150 countries.

1.5(iv) NOKIA FIRST IN TELECOMMUNICATIONS:-

The world’s first international cellular mobile telephone network NMT was

opened in Scandinavia in 1981 with Nokia introducing the first car phones

for the network. The world’s first NMT hand portable, the Nokia cityman

was launched in 1987.

Year 2003:

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Nokia announce that the world’s first CDMA 2000® 1xEV-DV high speed

packet data phone call was completed at Nokia’s CDMA Product Creation

Centre in San Diego. The call, achieving a peak data rate of 3.09 Mbps,

was made between a test set based on a commercially available Nokia

2285 handset upgraded with a Nokia 1xEV-DV chipset and a Racal

Instruments, Wireless Solutions Group, 1xEV-DV base station emulator.

This chipset is the world’s first to support complete 1xEV-DV Release C

functionality.

Year 2004:

Using Nokia’s CDMA Dual -Stack handset, Nokia demonstrated the

Industry’s first Mobile IPv6 call at the 3G World Congress Convention and

Exhibition in November. The demonstration highlighted real-time streaming

video with seamless hand off between two CDMA access networks using

Mobile IPv6.

Nokia announced the Nokia NFC (Near Field Communication) shell, the

latest step in the development of innovative products for mobile

communications, in November. With the Nokia NFC shell on their phone,

consumers will be able to easily access a variety of services and

conveniently exchange information with a sample touch gesture utilizing

NFC technology.

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In October Nokia and Telia Sonera Finland successfully conducted the

world’s first EDGE-WCDMA 3G packet data handover in a commercial

network. Achieving a first for the Asia-Pacific region, Nokia, Media Corp

Technologies, M1 and the Media Development Authority of Singapore

jointly showcased a live end-to-end mobile phone TV broadcast over a

DVB-H (Digital Video Broadcast – Handheld) network at the Nokia

Connection event in Singapore.

Nokia and Texas Instruments Incorporated introduced the first pre-

integrated and validated series 60 Reference Implementation based on TI’s

OMAP (TM) processor - powered reference design in February. The

reference implementation is available immediately to series 60 licenses.

Year 2005:

The Nokia 6630 imaging smart phone has as the first device in the world

achieved global GCF 3G WDCMA certification. The certification was

achieved based on the requirements defined by Global Certification Forum

(GCF), an independent industry body which provides network compliancy

requirements and testing for GSM / WCDMA mobile devices.

SBS Finland’s Kiss FM became the first radio station in the world to begin

Visual Radio Broadcasts. The unique new concept developed by Nokia

offers the listeners the possibility to give feedback and to participate in

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programs easier than ever before. Nokia introduced a new product for

secure mobile contactless payments and ticketing. The world’s first Near

Field Communications (NFC) product for payment and ticketing will be an

enhanced version of the already announced Nokia NFC shell for Nokia

3220 phone

CELLULAR:-

A type of wireless communication that is most familiar to mobile phones

users. It’s called ‘Cellular’ because the system uses many base stations to

divide a service area into multiple ‘Cells’. Cellular cells are transferred from

base station to base station as a user travels from cell to cell.

The basic concept of cellular phones began in 1947, when researchers

looked at crude mobile (Car) phones and realized that by using small cells

(range of service area) with frequency reuse they could increase the traffic

capacity of mobile phones substantially. However at that time, the

technology to do so was nonexistent.

Anything to do with broadcasting and sending a radio or television

message out over the airwaves comes under Federal Communications

Commission (FCC) regulation. A cell phone is a type of two-way radio. In

1947, AT & T proposed that the FCC allocate a large number of radio

spectrum frequencies so that widespread mobile telephone service would

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become feasible and AT & T would have an incentive to research the new

technology. We can partially blame the FCC for the gap between the initial

concept of Cellular Service and its availability to the public. The FCC

decided to limit the amount of frequencies available in 1947, the limits

made only twenty-three phones conversations possible simultaneously in

the same service area – not a market incentive for research. The FCC

reconsidered its position in 1968, stating “if the technology to build a better

mobile service works, we will increase the frequencies allocation, freeing

the airwaves for more mobile phones.” AT & T and BELL labs proposed a

cellular system to the FCC of many small, low-powered, broadcast towers,

each covering a ‘Cell’ a few miles in radius and collectively covering a

larger area. Each tower would use only a few of the total frequencies

allocated to the system. As the phones traveled across the area, cells would be

passed from tower to tower.

WIRELESS STANDARDS ANALOG SERVICE:-

A method of modulating radio signals so that they can carry information

such as voice or data. Analog cellular phones work like a FM radio. The

receiver and transmitter are tuned to the same frequency, and the voice

transmitted is varied within a small band to create a pattern that the

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receiver reconstructs, amplifies and sends to a speaker. The drawback of

analog is the limitation on the number of channels that can be used.

DIGITAL SERVICE:-

A method of encoding information using a binary code of 0’s and 1’s. Most

newer wireless phones and networks use digital technology. In digital, the

analog voice signal is converted into binary code and transmitted as a

series of on and off transmissions. One of digitals drawbacks is that there

are three digital wireless technologies, CDMA, TDMA, and GSM. Phones

that work with one technology may not work on another.

TDMA IS-136 (TIME DIVISION MULTIPLE ACCESS):-

It is an update to TDMA IS-54, also called Digital AMPS or D-AMPS.

Released in 1994, TDMA IS-136 uses the frequency bands available to the

wireless network and divides them into time slots with each phone user

having access to one time slot at regular intervals. TDMA IS-136 exists in

North America at both the 800 MHz and 1900 MHz bands. Major US

carriers using TDMA and AT & T wireless services, BELL SOUTH and

SOUTH WESTERN BELL.

CDMA IS-95 (CODE DIVISION MULTIPLE ACCESS):-

It is based on a form of spread spectrum technology that separates voice

signals by assigning them digital codes within the same broad spectrum.

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CDMA type technology was used in military communication systems

because it was resistant to interface from enemy signals.

The Qualcomm Corporation began developing a CDMA wireless system in

the late 1980’s that was accepted as a s tandard in 1993 and went into a

operation by 1996. CDMA also exists at both the 800 MHz and 1900 MHz

bands. The major US carriers using CDMA are AIR TOUCH, BELL

ATLANTIC / NYNEX, GTE, PRIMECO and SPRINT PCS.

GSM (GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS):-

It is based on an improved version of TDMA technology. In 1982, the

conference of European posts and Telecommunications (CEPT) began the

process of creating a digital cellular standard that would allow users to

roam from country to country in Europe. By 1987, the GSM standard was

created based on a hybrid of FDMA (Analog) and TDMA (Digital)

technologies. GSM engineers decided to use wider 200 KHz channels

instead of the 30 KHz channels that TDMA used, and instead of having

only 3 slots like TDMA, SM channels had 8 slots. This allowed for fast bit

rates and more natural-sounding voice- compression algorithms. GSM is

currently the only one of the three technologies that provides data services

such as email, fax, internet browsing, and intranet / LAN wireless access,

and it’s also the only service that permits users to place a call from either

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North America or Europe. The GSM standard was accepted in the US in

1995. GSM-1900 cellular systems have been operating in the US since

1996, with the first network being in the Washington D.C. area. Major

carriers of GSM 1900 include omni point, Pacific Bell, Bell South, Sprint

Spectrum, Microcell, Western Wireless, Powertel and Aerial.

DIFFERENT TECHNOLOGY:-

(a.)BLUETOOTH TECHNOLOGY:-

It is a technology for wireless communication between devices. It’s based

on a lowcost short-range radio link. Every decorator knows that cables and

wires are unsightly and confusing. Bluetooth connections allow wireless

communication between devices within a range of about 30 feet (10

metres). Unlike infrared, you don’t have to point devices directly at each

other, or even have both devices in the same room. Blue tooth can initiate

connections automatically with paired devices, so you don’t even have to

think about it. And no, you don’t have to pay for a Bluetooth connection, no

matter how much data you transfer.

When two devices share information, there are a few things that have to be

worked out: firstly, how they will physically connect through how many

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wires? Or none at all? – And then what are the agreed commands that will

make sense to both devices? Bluetooth is an industry standard that solves

both of these issues cheaply, and using very little battery power.

(b.)GPRS TECHNOLOGY:-

General Packet Radio Service is a technology that allows your phone to

transfer data at moderate speeds. GPRS lets you send data faster than

over a GSM data network, and it’s also a lot more efficient. But “data”

sounds pretty vague.

To use GPRS, you need a phone that supports it, a subscription from your

network operator that supports GPRS, and the proper settings. GPRS does

what it says: it sends “packets” of data over a radio wave (on GSM

network). Packet switching works like a jigsaw puzzle: your data is split into

many pieces, then sent over the network and reassembled at the other

end. GPRS is just one of the ways to transport these jigsaw puzzles.

(c.)EDGE TECHNOLOGY:-

Enhanced Data rates for Global Evolution (EDGE) enables data

connections three times faster than GPRS within the same multi slot class.

Like GPRS, you’re billed for the data you transfer, not for the time you

spend connected.

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EDGE opens up a lot of possibilities for connecting to data networks on

your mobile phone, making it far less frustrating to stream video and

download larger files. To use EDGE, you need a phone that supports it, a

subscription from your network operator that supports EDGE, and the

proper settings. EDGE is based on General Packet Radio Service, which

sends “packets” of data over a radio wave. Packet Switching works like a

jigsaw puzzle: your data is split into many pieces, then sent over the

network and reassembled at the other end. GPRS is just one of the ways to

transport these jigsaw puzzles.

(d.)JAVA TECHNOLOGY:-

JAVA is both a programming language and a software platform, and its

used to create and run applications for Nokia phones. With JAVA

applications, your phone can do more of the things you’d like it to do.

Downloading and installing applications is a relatively simple process (as is

uninstalling them), and there is a wide range of applications available.

JAVA was originally developed by Sun Microsystems. Enhancements and

standardization of the JAVA platforms are conducted by the JAVA

Community Process (JCP), in which Nokia takes on active role together

with sun and other members. There are two parts to JAVA technology: a

programming language, and an environment in which those commands can

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be executed. You need an environment where the language means

something, so JAVA brings its own environment along. JAVA enabled

Nokia phones – most Nokia models on the market now-contain a JAVA

Virtual Machine, which is ready to run applications written in JAVA. This

makes using new applications easy, because you usually don’t have to

configure, load, or install anything else.

(e.)MMS TECHNOLOGY:-

MMS stands for Multimedia Messaging Service, a technology that allows

you to create, send and receive text messages that also include an image,

audio, and / or video clips. MMS messages are sent from one mobile

phone to another, or to an email address. Multimedia Messaging enriches

your mobile messages in much the same way as inserting photos or

changing fonts and colours does in email – it’s both useful and expressive.

MMS messages are sometimes considered equivalent to so –called

“Picture Messaging”, popularized by the recent imaging phones boom, but

other uses of the technology do exist.

You don’t need to have an imaging phone to send and receive MMS

messages, just an MMS-enabled mobile phone, an operator management

that supports the service, and the correct settings on your handset. Of

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course, an imaging phone gives you the option of creating and passing on

your original images.

An MMS message is a multimedia presentation in a single entry, unlike an

email with attachments, making it easier to create and simpler to deliver

than an email with attachments. MMS is a scalable technology, which

means it’s suitable for most types of mobile phones. And MMS is

compatible with fixed email addresses, so it is possible to criss-cross back

and forth over the mobile-PC border.

(f.)MOBILE BROWSING TECHNOLOGY:-

A mobile browser is simply any program that lets you access and read

content on a network from a mobile device – usually the Internet or some

other mobile network service. As more phones on the market boast high

network connection speeds and colour screens, mobile browsing is

becoming more common (and a lot better looking).

Many new Nokia models come with an integrated XHTML or even HTML

mobile browser, giving you the chance to surf without being chained to a

desktop computer. Today’s mobile browsers give you richer colours and

faster browsing than the original mobile browsers, and most importantly, a

way to access the web at your finger tips. Considering the no-frills WAP

sites that started off mobile browsing, the technology has come a long way.

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In order to browse with a mobile phone, you need to have a phone with a

browser (either one that’s built in or downloaded), a subscription from your

network operator to a data service (GSM data, GPRS, EDGE, WCDMA,

etc) and the correct settings on your phone. Then its up to other companies

and individuals to build the sites and services you can browse

1.5(v) FUTURE OF NOKIA:-

By the year 2012 a quarter of all content will be user-generated and passed

between friends, rather than being created and distributed by today's media

brands, according to interviews with "trend-setting consumers".

The Future Laboratory spoke to 9000 consumers on behalf of Nokia, all of

whom are described as "active users of technology" and thus can be

trusted to tell us what the world's going to look like.

As Nokia's Vice President, Multimedia, Mark Selby describes it thus:

"We think it will work something like this; someone shares video footage

they shot on their mobile device from a night out with a friend, that friend

takes that footage and adds an MP3 file - the soundtrack of the evening -

then passes it to another friend. That friend edits the footage by adding

some photographs and passes it on to another friend and so on."

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All of which will be done on their mobile phone, obviously.

Driving users to prefer content mashed up by friends, as opposed to

professionally-produced, are four trends which The Future Laboratory and

Nokia have identified through their research.

Immersive Living reflects the way people are always on-line, while Geek

Culture is a reflection of how everyone wants high-tech toys these days -

at least, all the people interviewed for this study. G Tech is technology for

girls - apparently not just technology for boys painted pink - and Localism

sees users taking pride in content produced by their locality.

All in all it's remarkable how closely this research matches Nokia's ideal

vision of the future. Consumers using mobile phones to create and mash

up content, taking power away from the media brands and placing it in the

hands of those running the portals and controlling the mobile user

experience.Now if they can just get rid of those power-hungry network

operators then Nokia's plan for world domination will be complete, at least

until the pills wear off.

1.5(vi) Nokia mobiles with price:-

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 Rs: 52000 Rs: 51100 Rs: 27810
Rs: 34500

            
Noki Rs: 34442
Nokia- a-8800- Noki
Nokia-8800 Nokia-
a-E90
8800-Arte Sapphire- N95-8GB

Rs: 17350
Rs: 26106
Rs: 23500 Rs: 20850 Rs: 19500

         
Noki No Nokia- Nokia-
Nokia-
a-8600-LUNA kia-N95 N82 7900-
N93i
Prism

Rs: 16630 Rs: 13440

Rs: 15577 Rs: 15200 Rs: 14300

         
Nokia- Noki Nok Noki Nokia-N80
a-N81-8GB ia-E61 a-N81-2GB
9300i

Rs: 13400 Rs: 13120

Rs: 13249 Rs: 13120 Rs: 13000

         
Nokia-3250 Nokia
-6500-Slide Nokia-N76 Nokia-6110 Nokia-N91

1.5(vi) Nokia Increases Profit and Market Share:-

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BERLIN — Nokia said Thursday that it had extended its dominant share of

the global mobile phone market to a record 40 percent in the fourth quarter

as profit surged 44 percent on rising sales to China, Africa and the Middle

East.

The company, based in Espoo, Finland, said profit rose to 1.84 billion euros,

or $2.7 billion, from 1.27 billion euros a year earlier as sales climbed 34

percent to 15.7 billion euros from 11.7 billion euros.

Nokia said it sold 77.8 million cellphones in Asia, the Middle East and Africa

in the quarter, nearly double the 42.3 million sold in Europe and North

America. In China, Nokia’s fastest-growing, high-volume market, the

company sold 20.2 million phones, an increase of 38.4 percent over a year

earlier.

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Nokia has pushed its global market share to 40.2 percent from 38.9 percent

in the third quarter, according to Strategy Analytics, a research firm in Milton

Keynes, England. Nokia’s market share exceeded the combined shares of its

next three biggest competitors — Samsung, Samsung and Sony Ericsson.

“Psychologically, this is an impressive milestone to reach in a mostly open

and free global market,” said Neil Mawston, director of wireless research at

Strategy Analytics. “They have become more dominant over the past decade

and this only strengthens their position.”

Olli-Pekka Kallasvuo, the Nokia chief executive, said the company was well

positioned to raise its market share further this year following its push to

develop a wireless services business around Navteq, an American maker of

digital maps, which Nokia is buying for $8.1 billion, as well as its wireless

networks joint venture with Siemens, which broke even after losing money in

its first six months of operation.

“It was a year of important strategic initiatives by Nokia,” Mr. Kallasvuo said

in a statement. “Facing a market that remains intensely competitive, we are

continuing to improve our leading device portfolio as well as execution at

Nokia Siemens Networks.”

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1.6 SAMSUNG :-
1.6(i) Company Profile:-
Samsung Inc.

Type Public (NYSE: MOT)

Founded 1928

Headquarters Schaumburg, Illinois, United States

Key people

[1] Greg Brown, President and Co-CEO

Sanjay Jha, Co-CEO

Industry Telecommunications

Products

Embedded systems

Microprocessors

Mobile phones

Two-Way radios

Networking Systems

Market cap $15 billion USD (2008)

Revenue ▲$36.622 billion USD (2007)

Operatingincome

▼ $553.0 million USD (2007)

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Net income ▼ $49.0 million USD (2007)

Employees 66,000 (2008)

Website www.samsung.com

1.6(ii) SAMSUNG Electronics:-

A wholly owned subsidiary of SAMSUNG Electronics was established in

January, 2003 after clearance from the Foreign Investment Promotion

Board

(FIPB). The trend of beating industry norms started with the fastest ever-

nationwide launch by SAMSUNG in a period of 4 and 5 months with the

commencement of operations in May 2003.SAMSUNG set up a state-of-the

art manufacturing facility at Greater Noida, near Delhi, in 2004, with an

investment of Rs 500 Crores. During the year 2001, SAMSUNG also

commenced the home production for its eco-friendly Refrigerators and

established its assembly line for its PC Monitors at its Greater Noida

manufacturing unit.

(34)
 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 SAMSUNG manufacturing plants

in the world.

 The year 2001 witnessed SAMSUNG 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, SAMSUNG achieved another benchmark

with the first ever sales of One Lakh ACs (Windows and Splits) in a

calendar year. SAMSUNG is poised to surpass its turnover target of Rs.

2700 Crores this year and clock a turnover of Rs. 3000 Crores.

 This year, SAMSUNG 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,

(35)
SAMSUNG has already achieved the one million mark in the month ahead

of its target.

 SAMSUNG Electronics India is the fastest growing company in the

consumer electronics, home appliances and computer peripherals industry

today.

 SAMSUNG Electronics is continually providing superior technology

products & value for money to over 50 lac households in India.

 Mr. K.R. Kim , Managing Director, SAMSUNG 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.

(36)
1.6(iii) History of SAMSUNG:-

 The foundation for Samsung was laid by an resident of Illinois, state

in north-central United States. Paul V. Galvin& Edward Stewart

starting with a storage battery in 1921.

 Galvin, then began working on a new car radio receiver in 1929 &

introduced the world's first commercially feasiblecar radio. The

product was named Samsung, a combination of the words of "motor"

and "victrola."

 Later, the company created a hand-held, two-way radio, known as

the "handie-talkie," for the U.S. military

 They made the equipment that carried the first words from the moon

in 1969.

 They led the communications revolution with the first commercial

handheld cellular phone in 1983 and the first all-digital high-definition

television (HDTV) in 1990.

(37)
  Samsung invented the Six Sigma quality improvement process in

1986. Six Sigma provided a common world wide language for

measuring quality and became a global standard

1.6(iv) About SAMSUNG:-

Samsung is known around the world for innovation in communications. The

company develops technologies, products and services that make mobile

experiences possible. Our portfolio includes communications infrastructure,

enterprise mobility solutions, digital set-tops, cable modems, mobile

devices and Bluetooth accessories. Samsung is committed to delivering

next generation communication solutions to people, businesses and

governments. A Fortune 100 company with global presence and impact,

Samsung had sales of US $36.6 billion in 2007. For more information about

our company, our people and our innovations, please visit

http://www.samsung.com.

(38)
1.6(v) MOBILE DEVICES:-

 Winner: CNET People’s Voice Award, ROKR E8, Consumer

Electronics Show (CES), 2008

 Winner: CNET Best of CES, Cell phones and Smart phones 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ｮ transfer category, Samsung T815,

Smartphone-based navigation system featuring MOTONAV, Bluetooth

Special Interest Group (SIG), 2008

(39)
 Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006

 Winners: MOTORIZR and MOTOKRZR K1m, International CES Design

and Engineering Awards, 2006

 Winners: Samsung/Burton Audex jacket and Samsung/Oakley

RAZRWIRE, International CES Design and Engineering Awards, 2006

 Best of What's New: MOTO Q, Popular Science Magazine, 2006

 Unique Product Winner: Samsung 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

(40)
1.6(vi) Samsung’s Changing Marketing Strategy:-

Samsung is changing its marketing practices for its next set of handsets,

according to this Ad Age interview with Casey Keller, chief marketing officer

of the handset manufacturer. Samsung will keep its “Hello Moto” tagline as

well as promote sub-brands like the Rokr and Razr. Perhaps the biggest

change is behind the scenes, where Keller is “unraveling” the marketing

model established by his predecessor. That model involved having a lot of

agencies around the world—Keller has “returned to a more traditional

agency relationship with “more focus” and “more longer-term partners—two

to three agencies on a worldwide base who understand us”.

Considering the Samsung management team just survived a shareholder

revolt I’m expecting all of them to be doing everything they can to pick up

the sales of the handset giant. I quite liked the ad for the original Rokr, it’s a

pity the music service was crippled on it.

Job Cuts: Analysts claim Samsung is also planning more job cuts, reports

RCR News. “Samsung CFO Thomas Meredith indicated the company

“would announce additional downsizing and restructuring”, most likely on May

(41)
30 or 31, ... Samsung would target cost savings “at least as large” as the $400

million the company cited when it announced 3,500 layoffs in Januar.

1.6(vii) Samsung’s product:-

It includes;

 Software-enhanced wireless telephone, Two-way radio, messaging

and Satellite communications products and systems, Networking and

Internet-access products for consumers, Network operators and

commercial, Government and Industrial customers.

 Embedded semiconductor solutions for customers in the consumer,

Networking and Computing, Transportation, and Wireless

communications markets.

 Electronic systems for Automotive communications, Manufacturing

systems, Computer & consumer markets.

(42)
1.6(viii) Mobiles of Samsung:-

Samsung B5310 Samsung Marine Samsung Corby POP Samsung C5212

Omnia Pro B7610 Samsung Corby Samsung Corby Txt Samsung I7500 Samsung C3010S

Samsung E1070 Samsung E1080T GT-E1410 Guru 1310S Solar Guru

Guru 1210 Samsung E1160 Guru 1125 GT-E1117

(43)
OBJECTIVE

(44)
1.7 Objectives of the Study:-
The subject matter for this research Project is to study the consumer

behaviour towards the NOKIA &SAMSUNG mobiles. This project consists

of different objectives. They are as follows:

 To know about the consumer preference level associated with

NOKIA & SAMSUNG mobiles.

 To find out the customer satisfaction towards NOKIA &

SAMSUNG.

 To know which advertisement media puts more impact on the

buying decision of customer.

 Determining the consumer behaviour towards NOKIA &

SAMSUNG.

(45)
3.1 Scope of the Study:-

As learning is a human activity and is as natural, as breathing. Despite of

the fact that learning is all pervasive in our lives, psychologists do not agree

on how learning takes place. How individuals learn is a matter of interest to

marketers. They want to teach consumers in their roles as their roles as

consumers. They want consumers to learn about their products, product

attributes, potential consumers benefit, how to use, maintain or even

dispose of the product and new ways of behaving that will satisfy not only

the consumer’s needs, but the marketer’s objectives.

The scope of my study restricts itself to the analysis of CONSUMER

BEHAVIOUR, perception of NOKIA & SAMSUNG. The scope of my study

is also restricts itself to DBIMCS only.

3.2 Time period of the Study:-

(46)
 The present study was undertaken during the month of March 2010 in

Lucknow .

RESEARCH
METHODOLOGY
3.3 Research Design :-

The study is a cross sectional study because the data were collected at a

single point of time. For the purpose of present study a related sample of

population was selected on the basis of convenience.

3.4 Data Collection :-

The data, which is collected for the purpose of study, is divided into 2

bases:

(47)
  Primary Source: The primary data comprises information survey of

“Comparative study of consumer behavior towards Nokia and

Samsung”. The data has been collected directly from respondent

with the help of structured questionnaires.

 Secondary Source: The secondary data was collected from internet

and references from Library.

3.5 Sample Size & Design:-

A sample of 50 people was taken on the basis of convenience. The actual

consumers were contacted on the basis of random sampling.

3.6 Tools and Techniques of Analysis:-

Percentage methods have been used for analysis the data.

3.7 Limitations of the Study:-

 The findings of the study will be based on opinion of the respondents,

which may be based.

 The study is confined to Mandi Gobindgarh.

(48)
  Lack of time and finance may prevent from carrying out in depth

study.

RESEARCH AND
DISCUSSION
4.1 ANALYSIS OF NOKIA & SAMSUNG:-

Vs

(49)
 200 MILLION 75 MILLION

Vs

ONE ON ONE COMPARISON

NOKIA SAMSUNG EDGE

KEY
SUCCESS

(50)
 Technolog 5 3 Nokia
y strategy
3G 4 5 Samsung
Applicatio 5 3 Nokia
n
software 5 4 Nokia
Total 19 15 NOKIA

Main Division: Mobiles

Sales 60.2% 66.2%

Operating 70.4% 65.7%
income

Continuous as focused on
“iconic”
innovation and new change products to
trends
features. On the
market.
 Moves faster than
rivals in introducing
new features PRODUCT

Year No of
new

(51)
2002 34
2004 36
2006 39

Nokia’s approach is Samsung's

More flexible to diversify R&D approach is more
Its product line risky as they
depend
on single “big hits”

REVIEW OF LITERATURE
Samsung Vs. Nokia

Link: Smartmoney.com: Techsmart: The Bizarro World of Cellphone

Makers. Samsung (NYSE:MOT) verus Nokia (NYSE:NOK).

While the Finnish phone maker has updated its handset portfolio at the

high end to compete better with Samsung's super-successful Razr phone,

the refresh has been less than inspired. ...

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

end [models] are thin and slick." ...

(52)
Samsung went for the wow effect, creating gotta-have-it phones. Now,

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

development," says Hoffman. "Right now, Samsung is head and shoulders

above Nokia in creating products that consumers desire. Nokia has

maintained their market share, but they're using price and marketing dollars

as the weapon." ...

Surely the the RAZR was a brilliant move...

Something as simple as naming a phone Razr has created enormous buzz

for the company, says Kelleher. Granted, the Razr is a sleek little piece of

telephonic technology, but the branding has given the phone cache.

Kelleher makes a good point. When you mention Razr, people know what

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

Great point. But just a piece of anecdotal evidence- the Nokia brand is still

quite strong in Asia. And according to The Motley Fool, Nokia's pushing

hard into emerging markets with low-cost phones, which while hitting

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

volumes versus a 25% sales increase. ... To find growth, Nokia is venturing

into emerging markets, such as China and Russia. ...

(53)
Nokia is looking out for the long term by penetrating emerging markets. But

it will take some time for the margins to improve as these consumers

upgrade to premium handsets. Nokia appears to have positioned itself well

because gaining recognition in these markets while they're still developing

will give it an important market presence moving forward

Nokia's strategy may be more sustainable than Samsung's "Wow!" strategy

if it succeeds in building deep moats in emerging markets. Popularity of

fashion and design can be fleeting, a fact which Nokia now knows well.

Also, one weakness I've noticed in the RAZR currently is that it lacks many

advanced functions which new smart phones have. And smart phones are

no longer huge and boxy- and no longer for techies. While the RAZR had

enough features for its time (and perhaps less-technologically-advancd US

mobile phone market), Samsung shareholders should hope that Samsung

features enough advanced features in its upcoming, well named SLVR and

PEBL.

This is because for fashionable technology, especially in emerging markets

I feel, the prestige and allure of a product is built upon both its look and its

array of the "newest" features, even if most functions are never used.

(54)
Yours may look shiny, but if mine can send everyone last nights photos,

then you've been one-upped.

It would also be interesting to see Samsung's share of sales inside and

outside the US, versus Nokia. Samsung could be overly US-dependent...

perhaps for another post. For reference, each company's one year chart

below.

Conclusion

Moto is gaining great grounds in emerging market like India, China and

South America. Though Nokia has a well-established market here;

Samsung is making great in-roads into Nokia's shares by an array of

products like SLVR, PEBL, SLIM and RAZR strongly backed by an

aggressive marketing strategy and competitive pricing.

(55)
DATA ANALYSIS AND INTERPRETATION

1. Do you have any mobile phone?

PARTICULARS NUMBER %AGE

Yes 50 100%
No 0 0%

(56)
 50 50

45
40
35
30
25
Yes
20
No
15
10 0
0% No
5
0 100%
Yes
NUMBER
%AGE

INTERPRETATION:
All the respondents had mobile phone

2. How many mobile phones do you have?

Particulars No. of respondents

1 37
2 13
3 0
3+ 0

(57)
 No. of respondents
40 37
35
30
25
20
15 13
10
5 No. of respondents
0 0
1 0 No. of respondents
2
3
3+

INTERPRETATION:
Out of 50 respondents 37 says that they had 1 connection while 13 were having 2
connections.

3. Which mobile are you using?

Particulars No. of respondents
Nokia 27
Samsung 16
Other 7

(58)
 30

25

20
Nokia
15
Samsung
10 Other

0
No. of respondents

INTERPRETATION:
Out of 50 respondents 27 were using NOKIA while 16 respondents were using

SAMSUNG and 7 were using other.

4. Are you satisfied with the services?

PARTICULARS NUMBER
Yes 41
No 9

(59)
 NUMBER
50
41
40

30

20

10 9 NUMBER

0
Yes NUMBER
No

INTERPRETATION:
Out of 50 respondents 41 respondents were satisfied with the services of there

particular mobile while only 9 were not satisfied.

5. Which facility attracts you most?

Particulars Nokia Samsung Other
Price 29 12 9
Style 14 15 21
Battery back up 36 7 7
Memory 24 16 10
Other 17 15 18

(60)
 40
35
30
25 Price
Style
20
Battery back up
15
Memory
10
Other
5
0
Nokia Samsung Other

INTERPRETATION
Out 50 respondents most of the respondents prefer Nokia then Samsung and others.

6. Which advertisement media puts more impact on your buying decision?

PARTICULARS NO. OF RESPONDENTS

T.V. 28

MAGAZINES 04

NEWSPAPERS 10

(61)
 INTERNET 05

OTHERS 03

NO. OF RESPONDENTS

30 28
25
20
15
10 10
5 4 5
0 3 NO. OF NO. OF RESPONDENTS
T.V.

MAGAZINES

RESPONDENTS
INTERNET
NEWSPAPERS

OTHERS

INTERPRETATION:
Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers,
03 by others while 04 by magazines.

7. From how long you are using this particular service mobile?

PARTICULARS NO. OF RESPONDENTS

1 year 10
2 years 25
3 years 11
More than 3 years 4

(62)
 NO. OF RESPONDENTS
25 25
20

15
10 10 11
5
NO. OF RESPONDENTS
0 4
NO. OF
1 year
2 years RESPONDENTS
3 years
More than
3 years

INTERPRETATION:
Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2

year, 11 since 3 years while only 4 were using there mobile from more than 3 years.

8. Would you like to change your current mobile in future?

PARTICULARS No. OF RESPONDENTS

Yes 18
No 32

(63)
 No. OF RESPONDENTS

35
32
30
25
20 18
15
10
5 No. OF RESPONDENTS
0
No. OF
Yes
No RESPONDENTS

INTERPRETATION:
Out of 50 respondents 32 did not want to change their current while only 18
respondents want to change their mobile.

5.1 CONCLUSSION:-

NOKIA:-

Price Rs. 1200 to 30,000

For Distinctive, value for money

(64)
Against Uninspiring style, no fun to use.

Conclusion:

At its price, the NOKIA gives more luxury per mobile than

others. The distinctive styling. Well- equipped body give it an up market.

However, a week sound quality and an unimpressive video experience are

serious drawbacks.

SAMSUNG:

Price Rs.1700 to 25,000

For price, battery, memory,

Against Bland styling.

(65)
Conclusion:

The SAMSUNG has to Sets the performance bench mark. With increase

the out look of the brand. it combines a strong design, superb bettery,with

low prices.

5.2 important finding of the study:-

 Few years back mobile phones were not common among the

consumer. But with the mobile revolution now we can find almost

every consumer with mobile phone.

(66)
  Most of the consumer prefers NOKIA then SAMSUNG and least

prefer other.

 Most preferred mobile company amongst the consumer is NOKIA and

the least preferred company is SAMSUNG.

 Mostly the consumers are satisfied with the services provided by the

different mobile companies.

 Maximum numbers of respondents were attracted towards the price &

battery and the least like the style and memory.

 T.V. and newspapers are the best media advertisements that put

more impact on the consumer buying decisions.

 Maximum number of consumer are loyal to there particular service

providers and they were using there mobile since 1 to2 years.

5.3 Suggetions:-

5.3(A) NOKIA:-

It harsh low sound & video quality that some could find it unexciting. And

high price is also a drawback for it .its price should be in reach of a middle

men. And style will be increased.

(67)
 5.3(B) SAMSUNG:-

Its low memory and low battery back are its drawbacks .at its price it has

distinctive style well, increase the memory status and the quality of the

battery.

APPENDIX
QUESTIONNAIRE
For

“Study of consumer behaviour towards NOKIA and SAMSUNG” In

Lucknow.

(68)
Name –
Contact no.-
Sex- male female

1. Do you have any mobile?

Yes No
2. How many mobile do you have?
1 2
3 3+
3. Which mobile are you using?
Nokia Samsung
4. Are you satisfied with the services?
Yes No

5. Which facility attracts you most?

Price Call Style
Battery Memory
Others

6. Which advertisement media puts more impact on your buying

decision?

(69)
 T.V Magazines
Newspapers Internet
Others
7. From how long you are using this particular mobile?
1 year 2 years
3 years More than 3 years
8. Would you like to change your current mobile in future?
Yes No
If yes
Then why…………………………………………………

(70)
BIBLIOGRAPHY

BOOKS:

 Marketing Research – G. C. Beri

(71)
  Research Methodology – C.R Kothari

 Principles of Marketing – Philip Kotler

Web Resources:

 www.nokia.com

 www.google.com

 www.scribd.com

 www.managementparadise.com

 www.samsung.com

 www.yahoo.com

 www.thestalwart.com

(72)
(73)