2012

JAYPEE BUSINESS SCHOOL

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Business Research Methods Research Report

INTRODUCTION

1.1 ORGANIZATION : SPICE MOBILES LTD.

1.2: PROBLEM IDENTIFICATION

The objective of this research is To study the problem of advertising and distribution channel of spice mobiles and the market potential for Spice mobile phones in retail market And to find out the reason for low demand of Spice Mobiles . Wherein, I compared the sales of different mobile phones and tried to find out the models of Spice having maximum/minimum sales and reasons for the low sales of Spice compared to NOKIA and Samsung. Though Spice has made various efforts in adding latest features and technology yet when compared with the market leader like Samsung , Nokia etc. Spice seems to be at the bottom of the pyramid. Though being an Indian Company it has failed to utilize that fact . Due to same reason it has failed to implant the feeling of trust among its customers. Although the company is at the initial an is growing yet the growth has not been so impressive.

RESEARCH METHODOLOGY
2.1 INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results

2.2 RESEARCH DESIGN Here, through primary research I came to know about the sales for different mobiles , customer likings, problems faced by dealers and reasons for low sales of Spice mobiles. While through secondary research, I got the valuable data that I used . 2.3 SAMPLE SIZE To complete the research, the questionnaire was filled by 50 respondents, which were randomly selected. The respondents were the mobile dealers from the Delhi, Ghaziabad region.

Research tool The purpose is to first conduct a intensive secondary research to understand the major players in the market, their sales, studying their handsets and their features, & full impact and implication of this on their market and the customers. This helped me in the primary research to ask the questions which are still unanswered & I can get only through primary study.

DATA COLLECTION
3.1 DATA COLLECTION:

Both primary and secondary data have been collected very vigorously Primary data: it is basically collected by getting the questionnaire filled by the respondents, randomly selected for the research.

Secondary data: it is collected by the study of enormous material available on the company websites and the previous researches related to mobile industry. The data was also collected from the magazines and newspapers. 3.2 QUESTIONNAIRE METHOD The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. We tried to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personal administered. Basis of selection: randomly selected No. of questions: 15 Area: Delhi, Ghaziabad

DATA ANALYZATION AND FACT FINDINGS

4.1 PRIMARY DATA:

1. Out of the following, which company's mobiles have you placed in your shop?
Frequency Samsung, NOKIA Samsung, NOKIA, Spice Samsung, Spice ,Sony Samsung, NOKIA, Spice, Sony Samsung, Sony Total 10 15 5 18 2 50 Percent 20.0 30.0 10.0 36.0 4.0 100.0

INTERPRETATION:

From the data & table, it is interpreted that

36% of the dealers have all the 4 mobile phones i.e. Samsung, NOKIA, Spice & Sony. There is only 2 dealers who does not have NOKIA & Spice in their shop.

2. Which price range of mobiles have the maximum sales on your shop?

Frequency Valid Less than Rs. 3,000 between R.3,000 & Rs. 8,000 Between Rs. 8,000 & Rs. 13,000 More than Rs. 13,000 Total 10 30 8 2 50

Percent 20.0 60.0 16.0 4.0 100.0

60

50

40

Count

30

20

10

0 Less than Rs. 3,000 betwen R.3,000 & Rs. 8,000 Between Rs. 8,000 & Rs. 13,000 More than Rs. 13,000

2.Which price range of mobiles have the maximum sales on your shop?

INTERPRETATION:

60% of dealers have maximum sales of the mobiles ranging between Rs. 3,000 & 8,000 on their shop which shows that customers in Delhi, Ghaziabad dont like to spend too high on mobiles.

Sales for the mobile with price less than Rs. 3,000 is not too high , being 20% indicating that people though not spending too much on premium mobiles, buy mobiles with features like FM, MP3,Camera that cost higher than Rs. 3,000.

3. Do you have Spice mobile on your shop?

Frequency Valid Yes No Total 30 20 50

Percent 60.0 40.0 100.0

INTERPRETATION: 60% 0f the dealers have Spice mobile in their shops. as it has been 6-7 years since its presence in Delhi, Ghaziabad and now, people do recognize them. Rest 40% have not placed Spice mobile in their shop

4. According to you, which mobile company has the maximum Brand awareness?

Frequency Valid Nokia 24

Percent 48.0

Samsung

26

52.0

INTERPRETATION:

As expected, there is no competitor for Nokia, Samsung when it comes to the Brand awareness. People buy the handsets and accessories on its name. They have a huge faith in them.

5. Which mobile company has the best looks?

Frequency Valid Samsung NOKIA Total 31 19 50

Percent 62.0 38.0 100.0

INTERPRETATION:

62% dealers believe that Samsung mobile has the best looks and that is the reason for its popularity among the females.

Surprisingly, Nokia is chosen by only 38% dealers while none feel that Spice and Sony mobile do have the good looks.

6. Which mobile company has the best battery backup?

Frequency Valid Nokia Spice Total 48 2 100

Percent 96.0 4.0 100.0

100

80

60

Count
40 20 0 Nokia Spice

9.which mobile company has the best battery backup?

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INTERPRETATION: As expected, almost everyone favored Nokia to be the mobile with best battery backup as 48 out of 50 favored it. While Spice got 2 favors and Sony got none.

7.Which mobile company has the lowest price?

Frequency Valid Spice Samsung Total 34 16 50

Percent 68.0 32.0 100.0

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INTERPRETATION: The data shows that dealers feel the Spice mobile and Samsung mobiles have been offering the best price to the customers and that too without making relaxation in the features. The Spice mobile has got 34 favours while the Sony mobile got the rest 16. Which shows that the strategies that Spice and Samsung are opting going well.

8. In case of low sales, what is the main reason for low sales of Spice?

Frequency Valid Looks sound Brand Total 13 1 36 50

Percent 26.0 2.0 72.0 100.0

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80

60

Count

40

20

0 Looks sound Brand

11.in case of low sales, what is the main reason for low sales of Spice?

INTERPRETATION:

The data here interprets that the main reason for the low sales of Spice mobiles as compared to its rivals Samsung and NOKIA is the less brand awareness among the people. People do not easily recognize and hence show favour to Spice mobile as they show towards Samsung & NOKIA.

72% dealers think that brand unawareness is the main cause for its low sales while 26% believe its looks to be responsible for low sales.
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9. According to you, what should the Spice company do to increase their sales?

Frequency Valid Increase the features Promotions own service centers Others \ Total 12 28 3 7 100

Percent 24.0 56.0 6.0 14.0 100.0

60

50

40

Count

30

20

10

0 Increase the features Promotions own service centers Others

12..According to you, what should the Spice company do to increase their sales?

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INTERPRETATION:

56% dealer feel that by promoting the Spice mobile on a large scale through press , media , programs, Spice mobile can increase its market share.

24% think that by increasing the features as in Samsungs mobiles, Spice will be able to snatch some customers from its competitors.

While 6% dealers also believe that by having their own service centers they can n serve its customers better which otherwise suffer due to dependence on hotspots and dealers for any default piece.

10. If you did not place Spice mobile on your shop, give reason:
Frequency Valid Company executive did not approach Brand name Total 8 12 20 Percent 40.0 60.0 100.0

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INTERPRETATION: Out of 50, there were only 20 dealers who had not Spice mobile on their counter. 8 of them told that company executive did not approach them thats why they did not place Spice mobile on their shop. While the other told that it does not have much brand value and thus there are less sales and hence they do not place them on the shop.

11. According to you, how long will it take for spice mobile to give tough competition to Samsung & NOKIA in the metro cities?
Frequency Valid less than 10 years 10-20 years can't say Total 34 4 12 50 Percent 68.0 8.0 24.0 100.0

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70

60

50

Count

40

30

20

10

0 less than 10 years 10-20 years can't say

14.According to you, how long will it take for spice mobile to give tough competition to Nokia & Samsung in the metro cities?

INTERPRETATION:

68% dealers say that within 10 years, Spice mobile can surpass NOKIA and may come closer to Samsung. While there were also 24% dealers who did not have a say and said that they cant say.

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SECONDARY DATA:

4.2.1 ANALYSIS OF THE CURRENT MARKET SHARES OF MOBILE COMPANIES:

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COMPANY WISE MARKET SHARE IN INDIA:

COMPANY SAMSUNG SONY NOKIA MICROMAX LG SPICE OTHERS

MARKET SHARE 38.5 12.8 29.0 5.9 3.41 1.7 10.69

Market Share

Samsung Nokia Sony LG Micromax Spice Others

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INTERPRETATION: This pie chart shows that Samsung still maintaining its top position in India with 38.50% market share though it is also losing some of its customers due to a large no. of new entrants in the Indian booming telecom industry. But it is still far ahead of its closest rival Nokia by 8.50% market shares. while Spice has only 1.70% market share, being a rather new player.

4.2.2: NO. OF FUTURE MOBILE SUBSCRIBERS IN INDIA:

1000 900 No.of mobile subscribers(in million) 800 700 600 500 400 300 200 100 0 2000-01 2005-06 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Series1

INTERPRETATION: On the basis of this ,it is projected that almost 150 million new mobile subscribers will be added between 2011-12 and 2012-13 and more than 450 million will be added between 2010-11 and 2015-16.

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CONCLUSIONS & RECOMMENDATIONS:

5.1: CONCLUSION:

FROM PRIMARY DATA: 60% dealers have the maximum sales for the mobiles ranging between Rs. 3,000 and 8,000 i.e. Spice mobile has a good market potential in Delhi since they have maximum offerings in this price segment only. Samsung tops the table in Brand awareness with all 100% dealers support and in infact Battery backup with 96%. Samsung was chosen to be the mobile with the best looks and Spice being the cheapest mobile without compromising on features. The Spice mobile lacks in the brand awareness with 72% dealers thinking it to be the reason for its low sales.26% also feel that it hasnt got lucrative looks which is a must to attract youth customers. Moreover, the company should send their company executives to every dealer in order to offer Spice mobile in each and every corner to all customers. As there are still many shops which dont have a Spice mobile because executives did not approach them. It is concluded that within 10 years, the Spice mobile should overtake the likes of NOKIA Surveys shows that people have a huge faith in Samsung mobile but their mindset is changing with some good offerings from Spice and other mobiles in low cost.

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FROM SECONDARY DATA:

According to the current market share for mobile companies in India, Samsung is the uninterrupted leader with 38.50% share. Nokia holds the second position with 29.00% share while Spice mobile has 1.70% market share having their presence in limited areas.

5.2: RECOMMENDATIONS:

I recommend Spice mobiles Ltd. To go through my these findings: There was a good demand for the model and thus, Spice should provide the stock to the distributors. The company should work on its brand building if it really want to match the likes of Samsung and in fact should work on its models looks to catch the attention of youths. The companys distribution network is also the weak link since there are only two distributors in the big city like Delhi. And no distributor in the attached NCR regions likes Gurgaon and Ghaziabad which have a good market potential. The company should open their own service centers as the customers face problems to get their phones serviced in Hotspot which already offers service for a large no. of players like NOKIA , Samsung LG , Sony, and Sony. The company may offer some attractive offers with their mobiles like a Lucky Draw winner

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