Professional Documents
Culture Documents
Submitted To:
Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)
DECLARATION
This is to certify that as per best of my belief the project entitled MARKETING
STRATEGIES OF MOTOROLA is the bonafide research work carried out by VIKRANT
DANI student of BBA, BCIPS, Dwarka, New Delhi, in partial fulfillment of the requirements
for the Minor Project Report of the Degree of Bachelor of Business Administration.
He has worked under my guidance.
Counter signed by
Director: (Name)
Date: 22 / 09 / 2016
ACKNOWLEDGEMENT
The completion of the project study that follows, seemed to be a distant goal had it not
been for the contribution of Ms. Shalini sahni for allowing me to work on a very intrinsic
part on MARKETING STRATEGIES OF MOTOROLA . I thank her for the ideas and
basic concepts she delivered and shared with me, as they helped me a lot in
accomplishing this project of mine.
(Vikrant Dani)
TABLE OF CONTENTS
CERTIFICATE
ACKNOWLEDGEMNT
PREFACE
Chapter 2 Introduction
2.1. About the organization (history & evolution) 2
BIBLIOGRAPHY 37
CHAPTER 1
PURPOSE OF THE STUDY
1.1 OBJECTIVES
Motorola is the leading brand in countries like UK and US but it has not been
able to achieve the same status in India. This study , will therefore , also analyze
the reasons which hinder the growth of Motorola being a dominant player in the
Indian market.
Along with above mentioned objectives, the following secondary Objectives have
been made for my study:
What kind of products and services are being provided by Motorola in India ?
The current study focuses on the marketing strategies adopted by Motorola in India,
which includes marketing mix, 4 Ps, and the product range. Various strategies,
plans and case studies of company are studied in this project .
1
Chapter 2
INTRODUCTION
1.1 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,
AppleMacintosh and Power Macintoshpersonal 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).
2
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.
3
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 of many places that provide Six Sigma training.
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.
4
2.2 NATURE OF BUSINESS
5
Mobile Devices:
COMPANY SUCCESS
6
HOME AND NETWORKS MOBILITY
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
7
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.
8
MOBILE DEVICES
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
9
Chapter -3
COMPANY PROFILE
Motorola Slogan
A slogan is a short, memorable catch phrase, tagline or motto used to identify a product
or company in advertisements. The advertising slogan, or business slogan most
associated with Motorola, is:
"Hello Moto"
Mission Statements and Vision Statements are written for customers and employees of
corporations. A Mission Statement can be defined as a sentence or short paragraph
written by a company or business which reflects its core purpose, identity, values and
principle business aims. The definition for a Vision Statement is a sentence or short
paragraph providing a broad, a spirational image of the future.
"Our history is rich. Our future is dynamic. We are Motorola and the spirit of invention
is what drives us."
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3.2 PRODUCTS OFFERED
1. Razar
2. Android range
3. Atrix 4G, Droid Bionic , XOOM , and Droid RAZR
4. MOTO X
5. MOTO G
6. MOTO E
7. NEXUS 6/MOTO X Pro
8. DROID TURBO /MOTO MAXX
RAZR
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Since July 2003, Motorola released the Razr V3 in the third quarter of 2004.Because of
its striking appearance and thin profile, it was initially marketed as an exclusive fashion
phone, but within a year, its price was lowered and it was wildly successful, selling over
50 million units by July 2006. Over the Razr four-year run, Motorola sold more than 130
million units, becoming the bestselling clamshell phone in the world.
Motorola released other phones based on the Razr design as part of the 4LTR line. These
include the Pebl U6, Slvr L6, Slvr L7 (more expensive variant of Slvr L6),Razr
V3c (CDMA), Razr V3i (with upgraded camera and
appearance), V3x(supports 3G technology and has a 2-megapixel camera), Razr
V3xx (supports3.5G technology) and Razr maxx V6 (supports 3.5G technology and has
a 2-megapixel camera) announced on July 2006.
The Razr series was marketed until July 2007, when the succeeding Motorola
Razr2 series was released. Marketed as a more sleek and more stable design of the Razr,
the Razr 2 included more features, improved telephone audio quality, and a touch
sensitive external screen. The new models were the V8, the V9, and the V9m. However,
Razr2 sales were only half of the original in the same period.
Because Motorola relied so long upon the Razr and its derivatives and was slow to
develop new products in the growing market for feature-rich touchscreen and 3G phones,
the Razr appeal declined while rival offerings like the LG Chocolate, BlackBerry, and
iPhone captured, leading Motorola to eventually drop behind Samsung and LG in
market share for mobile phones. Motorola's strategy of grabbing market share by selling
tens of millions of low-cost Razrs cut into margins and resulted in heavy losses in the
cellular division.
Motorola capitalized on the Razr too long and it was also slow adopting 3G.
While Nokia managed to retain its lead of the worldwide cellular market, Motorola was
surpassed first by Samsung and then LG Electronics. By 2007, without new cellphones
that carriers wanted to offer, Motorola sold tens of millions of Razrs and their offshoots
by slashing prices, causing margins to collapse in the process.
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In January 2007, then-CEO of Motorola Ed Zander rode a yellow bike onto the stage
in Las Vegas for his keynote speech at the Consumer Electronics Show. Zander
departed for Dell, while his successor failed to turn around the struggling mobile handset
division.
Android range
In 2008, Sanjay Jha took over as co-chief executive officer of Motorola's mobile device
division; under Jha's control, significant changes were made to Motorola's mobile phone
business, including most prominently, a shift to the recently
introduced Android operating system as its sole smartphone platform, replacing
both Symbian and Windows Mobile. In August 2009, Motorola introduced the Cliq, its
first Android device, for T-Mobile USA. The device also featured a user interface known
as Motoblur, which aimed to aggregate information from various sources, such as e-mail
and social networking services, into a consistent interface.
A month later, Motorola unveiled the Droid, Verizon Wireless's first Android phone,
which was released on November 8, 2009. Backed with a marketing campaign by
Verizon, which promoted the device as a direct competitor to the iPhone with the slogan
"iDon't", "Droid Does", the Droid was a significant success for Motorola and
Verizon; Flurry estimated that at least 250,000 Droid smartphones had been sold in its
first week of availability.
13
PC World considered the sales figures to be an indicator of mainstream growth for the
Android platform as a whole. The Droid was also named "Gadget of the Year" for 2009
by Time. Other Droid-branded devices would be released
by Verizon, although not all of them were manufactured by Motorola.
In 2010, Motorola released the Droid X along with other devices such as
the Charm, Flipout, and i1. In July 2010, Motorola reported that it had sold 2.7 million
smartphones during the second quarter of 2010; an increase of 400,000 units over the first
quarter. Jha stated that the company was in "a strong position to continue improving our
share in the rapidly growing smartphone market and [improve] our operating
performance. In its third quarter earnings report, Jha reaffirmed that the Droid X was
selling "extremely well".
On January 5, 2011, Motorola Mobility announced that the Atrix 4G and the Droid
Bionic were headed to AT&T and Verizon, respectively, with expected release dates in
Q1 of 2011. The Atrix was released on February 22 as the world's first phone with both a
Dual-Core Processor and 1 GB of RAM. The phone also had optional peripherals such as
a Multimedia Dock and a Laptop Dock which launched a Webtop UI. On February 24,
two days after the release of Atrix, the company released Motorola Xoom, the world's
first Android 3.0 tablet, and followed it up shortly afterwards with an update to make it
the world's first Android.
In the fourth quarter of 2011, Motorola unveiled the Droid RAZR, the world's thinnest
4G LTE smartphone at that time at just 7.1 mm. The Droid Razr featured Kevlar backing,
the same used in bulletproof vests, and a Gorilla Glass faceplate.
14
The phone was very successful through Verizon Wireless, and many color variants of it
were released. In addition, a Maxx version of the Droid RAZR with an extended battery
was released at CES 2012. The Droid RAZR MAXX won CTIA's "Best Smartphone"
award. The company also announced new products by late 2011 and early 2012 such as
the Xoom 2 tablets, the motoACTV fitness watch with Android, and the Droid 4 with 4G
LTE for Verizon Wireless.
Though Jha managed to restore some of the lost luster to Motorola Mobility, it still
struggled against Samsung and Apple. Even among Android manufacturers, Motorola
had dropped behind Samsung, HTC, and LG in market share by the second quarter of
2011. This may have been due to the delay in releasing 4G LTE-capable devices, as well
as setting the prices of its new products too high. Jha was replaced by Dennis Woodside
as CEO by May 2012, when the Google acquisition was complete.
Motorola released the Droid RAZR HD as its 2012 flagship devices, featuring
improvements over 2011's RAZR. A lower end RAZR M was released, along with
an Intel powered RAZR i. Through late 2012 until 2013's third quarter, no further devices
were released, except for the lower end RAZR D1 and D3 devices for Latin America.
MOTO X
In an August 2013 interview, Motorola Corporate VP of product management Lior Ron
explained that the company will focus on the production of fewer products to focus on
quality rather than quantity. Ron stated, "Our mandate from Google, from Larry, is really
to innovate and take long-term bets. When you have that sort of mentality, its about
quality and not quantity".
Speaking at the D11 conference in Palos Verdes, California, in May 2013, Motorola
CEO Dennis Woodside announced that a new mobile device would be built by his
company at a 500,000 square-feet facility near Fort Worth, Texas, formerly used by
Nokia. The facility will employ 2,000 people by August 2013 and the new phone, to be
named "Moto X", will be available to the public in October 2013.
15
The Moto X featured Google Now software, and an array of sensors and two
microprocessors that will mean that users can interact with [the phone] in very different
ways than you can with other devices. Media reports suggested that the phone will be
able to activate functions preemptively based on an "awareness" of what the user is doing
at any given moment.
In early July 2013, the Wall Street Journal reported that Motorola will spend nearly
US$500 million on global advertising and marketing for the device. The amount is
equivalent to half of Apple's total advertising budget for 2012.
On August 1, 2013, Motorola Mobility unveiled the Moto X smartphone. It was released
on August 23, 2013 in the United States and Canada .
16
The Moto X Play and Moto X Style smartphones were announced in July 2015, and were
released in September 2015. Many customers who have ordered customized Moto X Pure
Editions via Motorola's website have experienced delays receiving their devices. These
delays have been attributed to issues including: manufacturing issues, lack of parts
needed to complete assembly of custom phones (black fronts, Verizon SIM cards and 64
GB versions), a possible redesign due to initial phones having a defect that causes one of
the front facing speakers to rattle at high volume and multiple day delays clearing U.S.
Customs at FedEx's Memphis, TN hub due to issues related to the import paperwork.
MOTO G
On November 13, 2013, Motorola Mobility unveiled the Moto G (1st generation), a
relatively low-cost smartphone. The Moto G will be launched in several markets,
including the UK, United States, France, Germany, India and parts of Latin America and
Asia. The Moto G is available in the United States, unlocked, for a starting price of
US$179. The device is geared toward global markets and some US models support 4G
LTE. Unlike the Moto X, the Moto G is not manufactured in the United States. On
September 5, 2014, Motorola Mobility released its successor to the 2013 version of the
Moto G, called the Moto G (2nd generation). It came with a larger screen, higher
resolution camera, along with dual front-facing stereo speakers.
On July 28, 2015, Motorola Mobility released the third generation of the Moto G series,
called the Moto G (3rd generation), in a worldwide press conference in New Delhi, India.
It retained the same screen as before but upgraded the processor and RAM. Furthermore,
it has an IPx7 water-resistance certification and comes into two variants - 1GB RAM /
8GB ROM and 2GB RAM / 16GB ROM. The device also has the latest (at the time)
Android Lollipop OS v5.1.1.
In May 2016, Motorola released three fourth generation Moto G smartphones: Moto G,
Moto G Plus, and Moto G Play.
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MOTO E
The Moto E (1st generation) was announced and launched on May 13, 2014. It was an
entry-level device intended to compete against feature phones by providing a durable,
low-cost device for first-time smartphone owners or budget-minded consumers, with a
particular emphasis on emerging markets. The Moto E shipped with a stock version
of Android "KitKat."
The Moto E (2nd generation) was announced and launched on March 10, 2015, in India.
Released in the wake of its successful first generation, the second generation of the Moto
E series still aims to provide a smooth experience to budget-oriented consumers. It
increased the screen size to 4.5" but kept the resolution at 540 x 960px. It came in two
versions, a 3G-only one powered by a Snapdragon 200 chipset and a 4G LTE version
powered by a Snapdragon 410 chipset. As before, it shipped with a stock version of the
latest (at the time) Android 5.0 "Lollipop".
In 2015 Motorola Mobility marketed the Moto E with the promise of continual updates
and support, "And while other smartphones in this category don't always support
upgrades, we won't forget about you, and we'll make sure your Moto E stays up to date
after you buy it." However, 219 days after launch Motorola announced that it was to
cease support for the Moto E. It was later announced that the device would receive
further updates in Canada, Europe, Latin America, and Asia (excluding China). China
and the US carrier-branded versions of the device will not receive further updates.
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NEXUS 6/MOTO X Pro
The Nexus 6 was announced October 15, 2014 by Motorola Mobility in partnership
with Google. It was the first 6-inch smartphone in the mainstream market, and came with
many high-end specs. It was the successor to the Nexus 5, Google's previous flagship
phone from their Google Nexus series of devices. Its design was similar to the Moto X
(2nd generation)but with a larger display and dual, front-facing speakers rather than the
single front-facing speaker on the Moto X. It was the first phone running vanilla Android
Lollipop, receiving software updates directly from Google.
On January 26, 2015, Motorola Mobility announced that they would sell the Moto X
Pro in China. The Moto X Pro was similar to the Nexus 6 in terms of hardware, but
excluded all of Google's services and applications
The Droid Turbo (Moto Maxx in Latin America and South America) features a 3900
mAh battery lasting up to two days. Motorola claims an additional eight hours of use
after only fifteen minutes of charging with the included Turbo Charger. The device is
finished in ballistic nylon over a Kevlar fiber layer and is protected by a water repellent
nano-coating.
The Droid Turbo uses a quad-core Snapdragon 805 processor clocked at 2.7 GHz, 3 GB
RAM, a 21-megapixel camera with 4K video, 5.2-inch screen with resolution of 2560
1440 pixels. The Droid Turbo includes 32 or 64 GB of internal storage, while the Moto
Maxx is only available in 64 GB .
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3.3 SWOT ANALYSIS
Strengths
Weaknesses
No compelling product lineup in the near future for Mobile Devices, coupled with lack
of differentiation from competitors with current product line
Poor shortterm financial performance
Too focused on North America and not as much on Emerging Markets relative to
competitors
Consumer demand decreasing for Mobile Device products
Recently has been late on new product introductions
Inability to be market leader in highend or lowtier mobile devices
Subject to changing consumer preferences
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Low switching costs for consumers to change brands
No executive for recently split Mobile Device segment
Consumer confusion due to break up of company
Declining return on invested capital
Opportunities
Threats
May face decrease in consumer spending for highend handsets with potential economic
recession
Increasing market share for competitors (Nokia, Samsung, SonyEricsson) Intense
competition across business segments
Subject to currency fluctuations in foreign markets
Local Chinese manufacturers gaining market share in Chinese mobile device market
Inability to cope with loss of synergies with respect to infrastructure and backoffice
functions Potential inability to capitalize on switch to siliconstrategy
Subject to unpredictable changes in consumer preferences
Potential difficulty for Mobile Devices division to raise debt following spinoff
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3.4 Competitive Analysis
Motorola operates in the Technology sector of the economy, and competes within the
Communications Equipment Industry. Motorola divides its company along three business
segments: Mobile Devices, Home and Network Mobility, and Enterprise Mobility
Solutions. The Mobile Devices segment designs, manufacturers, sells, and services
handset devices and accessories. Home and Network Mobility designs, manufactures,
sells, installs and services digital video, digital entertainment devices (Internet Protocol
networks), broadband access infrastructure systems, and associated data and voice
customer premise equipment (broadband gateways) to cable television and telecom
service providers, and wireless networks, including cellular infrastructure systems and
wireless broadband systems, to wireless service providers. Enterprise Mobility Solutions
designs, manufactures, sells, installs and services analog and digital twoway radio, voice
and data communications products and systems for private networks, wireless broadband
systems and endtoend enterprise mobility systems to government and public safety
agencies, and to commercial customers in retail, utility, transportation, manufacturing,
and healthcare. On March 24, 2008, the Company announced that it would be spinning
off its Mobile Devices segment, leaving their remaining two segments as a separate
business. In light of this information, our competitive analysis of Motorola separates the
Mobile Devices segment from the Home and Network Mobility and Enterprise Mobility
Solutions segments in order to achieve a complete understanding of the forces
contributing to the Companys competitive position in their industry.
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Internal Rivalry: Mobile Devices
The Mobile Devices segment has faced considerable competition from other leading
global mobile device companies including Nokia, Samsung, SonyEricsson, LG, Apple,
and Research in Motion. Motorola believes that it held 14% of the overall Mobile
Devices market share in 2007, making it the third largest supplier of wireless handsets.
The dominant firms in this industry, along with peripheral mobile phone manufacturers,
compete fiercely for business on both price and quality. The top five firms claimed 83%
of the market share in 2007, although this industry may become less concentrated as
China eases regulations to allow for more wireless handset manufacturers. The industry
expects an annual growth rate of 10% in mobile users in coming years, which represents
a decline from approximately a 20% annual growth rate from 2003 to 2007. This is still a
sizable growth rate in the mobile communications industry, with opportunities to gain
market share in emerging markets of Asia, Latin America, and Africa. The saturated
markets of the US, Canada, and Western Europe are also prime areas of competition, as
these companies attempt to maintain market share through reactivations of former
accounts, and attract new customers away from the competition.
This industry caters to a broad range of consumers, with some companies specializing in
lower price models with basic features, and others in higherend, advanced technology
phone designs. Motorolas products can fit into both of these categories, which may be a
business strategy worth reconsidering (it may be beneficial for Motorola to specialize
within the handset business). The Company divides its mobile products along four lines,
categorized as Mass Market, Feature, Multimedia, and Productivity. The following chart
illustrates a mapping of the mobile product line by breadth of features and value added.
23
3.5 MARKET SHARE OF MOTOROLA AS COMPRED TO
OTHERS
Lenovo
Lenovo fell by two places this quarter, which resulted in a 4.7% share of the market. The
Motorola brand shipped 5.9 million units, 36.2% of the Lenovo group. The second
quarter after Motorola announced its return to China, it shipped 26K units in comparison
to the 92K units in 2015Q1. Even though Lenovo had strategically positioned both its
brands and coinciding models in order to maximize brand awareness and global reach in
2015Q1, stiff competition from Huawei and Xiaomi has brought ample cause to re-look
at its strategy.
24
Samsung
Samsung retained its #1 leadership in the worldwide smartphone market with a 21.4%
share in 2015Q2. This retention of position comes in the midst of a growth decline of
11.5% QoQ. This is largely attributed to the underwhelming performance of its newest
flagship releases, the Galaxy S6 and the Galaxy S6 Edge. Despite this, it was able to
retain the number one position due to increased shipments of lower-end models,
particularly to regions like Southeast Asia, the Middle East, and Africa. Samsung's
improved streamlined portfolio of devices, including the premium inspired A-series,
proved successful in many mid-tier markets that were typically dominated by local
brands. Though Samsung's redefined flagship (the Galaxy S6 and S6 Edge) began
shipments on a strong note, it failed to keep up the momentum.
Apple
Apple continued to find success with its larger screened iPhone 6 Plus. It shipped a total
of 47.5 million units, which is a 22.3% decline from 2015Q1. Much of this came out of
Greater China as rapid 4G adoption, Apple retail expansion, and an increased appetite for
premium devices elevated the brand to new levels. Overall, iPhones grew 35.0% year
over year and a remarkable 51.4% in emerging markets alone. With Apple on the brink of
its next device update, IDC expects strong sales to continue for the rest of 2015.
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Huawei
Huawei raised itself to the number three spot this quarter from its fourth position in
2015Q1. There was a continued push on premium devices from its Ascend Mate 7, P-
Series, and Honor portfolio. The shipments of mid-range and high-end phones accounted
for 35.5% of its smartphone shipments in 2015 Q2. Huawei's Y-series sold briskly both
inside and outside China, as a valuable low-cost option in many markets. What remains
to be seen is how Huawei will leverage its online vs offline strategy, focus on revenue,
and efforts on innovation to battle in this arena.
Xiaomi
Xiaomi ousted LG to gain a spot in the top five category. Key to its success was the
launch of the Redmi 2A model in China, as well as the continued performance of the
Redmi 2 and MI-4 models. This growth is remarkable considering that it has made its
presence felt only in Asia Pacific, and primarily in China. With Xiaomi's recent entry into
Brazil and announcement to launch in Africa in September, its future growth may
become dependent on markets outside Asia Pacific. It will also showcase if Xiaomi's
direct selling strategy will prove successful in these newer markets.
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3.6 Organization Structure
Morgan Stanley is a global financial services firm headquartered in New York City
serving a diversified group of corporations, governments, financial institutions, and
individuals. Morgan Stanley also operates in 36 countries around the world, with
over 600 offices and a workforce of over 60,000.
The corporation, formed by J.P. Morgan & Co. employees Henry S. Morgan (grandson of
J.P. Morgan), Harold Stanley and others, came into existence on September 16, 1935. In
its first year the company operated with a 24% market share (US$1.1 billion) in public
offerings and private placements. The main areas of business for the firm today are
Global Wealth Management, Institutional Securities and Investment Management.
The company found itself in the midst of a management crisis in the late 1990s that
resulted in a loss of a number of the firm's staff and ultimately saw the firing of its then
CEO Philip Purcell in 2005.
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Chapter 4
MARKETING MIX
OF
MOTOROLA
INTRODUCTION
Marketing involves finding out what your customers want and then meeting their
requirements. To satisfy its customers, a business must create a successful mix of:
This is sometimes referred to as the 4Ps.This case study shows how Motorola has
created an effective marketing mix for its mobile phones in a highly competitive market
place.
Motorola began life as The Galvin Manufacturing Corporation in Chicago in 1928. Its
first product was a battery eliminator, enabling radios to operate from mains electricity
rather than expensive batteries. In the 1930s it produced car radios using the brand name
'Motorola'. The company later adopted Motorola as its name.
28
The company is now known around the world for innovation and leadership in wireless
and broadband communications. Motorola's vision is of Seamless Mobility, which the
company defines as helping users get and stay connected easily to the people,
information, and entertainment that they want and need. The company does this by
designing and delivering 'must have' products, 'must do' experiences and powerful
networks.
Applying this vision to mobile phones, Motorola has gone beyond just enabling users to
make voice calls or send text messages. Depending on the models chosen, users can:
In the car - as well as being able to use the phone with a hands-free car kit, play music
through the car stereo
PRODUCT
The first element in the marketing mix is the product itself. If you create products that
customers want, the other parts of the mix can be designed to meet customer needs.
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Motorola is a global leader in wireless and broadband communications technologies and
related electronic products. It has significant operations in the UK employing
approximately 2,400 people. It covers a number of businesses.
Mobile phones are among the most familiar products to consumers and the mobile phone
is seen by many as an essential item. It can perform a number of functions, including
being:
a fashion statement
The mobile phone market has risen dramatically in size. In April 2005, the market
research company Mintel produced figures which showed that 80% of the youth market
in the UK has a mobile phone, and that over 61 million people subscribed to an airtime
contract.
The market is a very competitive one with a range of companies competing to provide
mobile phone services. With a 3G or WAP-enabled phone, customers can browse special
Internet sites, which means they can look at football scores, search cinema movie times,
or live-chat with friends. Motorola has partners such as MTV, with high quality sites
providing diverse and entertaining content. 3G (third generation) phones offer much more
effective access to music and video downloads, because the networks they work on
provide faster connections for downloading content than previous generations of phones.
Text, Picture and Video messaging is phenomenally popular and is likely to become more
so. Motorola mobile phones are increasingly being used to capture and share experiences,
in addition to making arrangements, tell jokes, and flirt without the personal nature of a
face-to-face or voice-to-voice contact.
In creating products, Motorola concentrates on:
attractive design
excellent call-quality
ease of use
value-added features including music player, games, camera, and video features
high quality, reliable products.
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In order to remain competitive, the company continually seeks to innovate - for example
by building phones that are slim and well designed. This is particularly important for one
group or segment of the mobile market. An example of this is the Motorola RAZR phone.
The Motorola RAZR V3i is the thinnest clam-shell phone currently available (as at
January 2006), just 13.9mm thin. The casing is made from aircraftgrade alloy, and the
outer screen from glass, as no conventional plastic materials were strong enough.
It has a built-in camera with 4X zoom and quick exposure controls. This also lets you
watch and record video clips in full colour. You can also enjoy your favourite ring tones,
music clips and games with a state-of-the-art polyphonic speaker sound and an integrated
3D graphics engine.
PRICE
Price is the one element of the marketing mix which creates sales revenue - all the others
are costs. For companies like Motorola, price is a key element in the marketing mix. It is
a critical selling point. 'Getting the price right' is a vital part of building relationships with
customers.
Economies of scale are important. These come in when a firm is able to produce on a
large scale. With high outputs of production, costs of research and development, software
engineering and investment in plant (manufacturing machinery and tooling) can be
spread. State-of-the art products are sold at premium prices reflecting the high quality of
the items and their innovative nature.
The costs to the users of Motorola mobile phonesare kept down because they are
subsidised by the network providers such as Vodafone. Network providers want as many
people as possible to subscribe to their network. They therefore like to link with the
producers of the best designed phones which feature the most exciting and effective
technologies. Phone retailers will often supply free accessories with a mobile phone to
make it more useful to phone users and to encourage them to buy.
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PLACE
Though figures vary widely from product to product, roughly a fifth of the production
cost of an item goes on getting it to the customer. The term 'place' deals with various
methods of transporting and storing goods and then making them available to the
customer.
Getting the right product to the right place at the right time involves the distribution
system. Distribution is the process of moving goods and services to the places where they
are wanted.
There are a number of ways in which Motorola distributes its phones. If you want to buy
a Motorola mobile phone there are a number of distribution channels that you can use.
Many people like to buy phones from independent retailers such as Carphone Warehouse.
These can offer advice about a variety of different phones and suggest the one best suited
to your needs. A second source is a retail outlet belonging to a network provider such as
Vodafone.
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Nowadays, increasing numbers of people buy through the Internet. This is an example of
e-commerce. The great thing about buying online is that you can spend as long as you
like and examine a lot of information. You can buy a Motorola phone from the Motorola
website. It will tell you about different models of phones, their prices and features etc.
An advantage of buying online is that prices are typically cheaper because you are cutting
out the middle person. The site is managed for the company by a third party who
processes the orders and delivers the mobile phones/accessories to customers.
The place where you are able to buy sometimes depends on the product. Some companies
like Motorola often give exclusive offers to certain retailers. For example, when Motorola
first introduced the pink RAZR in the UK, it was exclusively available through Carphone
Warehouse. In contrast, 3G phones ,are mainly sold through retail outlets of 3G
networks. The reason for this is that the product fits closely with the distribution channel.
PROMOTION
Promotion includes all of the techniques that a company uses to communicate with other
individuals and organisations. Companies like Motorola send communications and
consumers receive them.An important avenue for communication is advertising.
Advertising is referred to as 'above the line' promotion. Othertypes of promotion such as
special offers and discounts are referred to as being 'below the line'.
The type of promotion that is used depends on the stage in the product life cycle. For
example, when a new product is launched, such as the RAZR, it makes sense to make
people aware. Advertising will communicate the desirability, emotional benefits and
exclusive features of the product.
Motorola works in close partnership to promote its phones with retailers. Promotion costs
are shared with retailers. The more retailers sell - the more Motorola is able to help them.
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MAJOR FEATURES THAT A CUSTOMER LOOKS FOR IN
A MOBILE
The Market is flooded with all sorts of mobile brands, each trying to showcase and push
forward its own particular brand with umpteen numbers of features. The customer these
days is quite educated and knows about the products quite well and therefore likes to
keep himself abreast with the latest technology available in the market, suiting his pocket
need and requirement. Mobile these days are being added with new features every second
day to lure the customer, and it is due to these very features only that becomes the
purchasing factor for the customer. Some of the most common features that a customer
demands these days are:
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.
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.
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4.Tri-Band A tri-band facility is useful for people who are constantly going abroad as a
tri-band enabled handset lets 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.
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.
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Chapter 5
Findings and Conclusions
Motorola has invested heavily in providing a range of products that enable people to
communicate on the move. These products are supported by other elements of the
marketing mix - the right price, in the right place, with appropriate promotion. In a
highly competitive market Motorola needs to regularly adjust this marketing mix in
line with the changing requirements of millions of customers.
It is concluded that overall people prefer other brands rather than MOTOROLA .
In Motorola handsets people tend to prefer Moto G series.
People from age group 16-25 are more interested in mobile phones rather than any
other age group .It is concluded that newspaper and internet is the best media of
advertisement . Most of the people are loyal to the brand.
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BIBLIOGRAPHY
WEBSITES:
https://en.wikipedia.org/wiki/Motorola_Mobility
http://www.counterpointresearch.com/the-big-acquisition-lenovo-
acquirs-motorola/
Http://www.motorola.com/content.jsp?globalObjectId=8592-11929
http://economicsfiles.pomona.edu/jlikens/SeniorSeminars/harknessco
nsulting2008/pdfs/Motorola.pdf
http://www.idc.com/prodserv/smartphone-market-share.jsp
https://www.motorolasolutions.com
http://www.nesscoinvsat.com/invsat/default_product_page.asp?pageid
=615
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