HISTORY OF MOBILE HANDSET INDUSTRY IN INDIA

India is one of the fastest growing economies all over the world and a
live example which depicts the development is the growth of the
telecommunication industry in India, especially the in the field of mobile
communication.
In 1990s, telecommunications sector benefited from the general opening
up of the economy. Also, examples of telecom revolution in many other
countries, which resulted in better quality of service and lower tariffs,
led Indian policy makers to initiate a change process finally resulting in
opening up of telecom services sector for the private sector. National
Telecom Policy (NTP) 1994 was the first attempt to give a
comprehensive roadmap for the Indian telecommunications sector. In
1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI
was formed to act as a regulator to facilitate the growth of the telecom
sector. New National Telecom Policy was adopted in 1999 and cellular
services were also launched in the same year.
Global System for Mobile Communications (GSM) and Code Division
Multiple Access (CDMA). The GSM sector is dominated by Airtel,
Vodafone-Hutch, and Idea Cellular, while the CDMA sector is dominated
by Reliance and Tata Indicom. Opening up of international and domestic
long distance telephony services are the major growth drivers for
cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reduction in tariffs on airtime, which
along with rental was the main source of revenue. The reduction in
tariffs for airtime, national long distance, international long distance,
and handset prices has driven demand.
Today mobile phones have moved beyond their primarily role of
communications and have graduated to become an essential entertaining
devices for mobile users .we are in an era where users buy mobile phones
not just to be in touch, today’s youth use it to express their thoughts ,
for social networking , to show their interests , play games, read news ,
surf on internet , listen to music , chat instantly with friends and
families and even check their bank balances. There are various phone
manufacturers providing handsets.
 Major players and their respective market position

In India mobile handset market is flooded with local and branded

handsets from different companies. Major players are Nokia, Samsung,
Sony Ericsson, LG and Motorola.

Handset Market Share

 Nokia market share dipped from -64% in 08-09 to 52.2% in 09-10.

 Sony Ericcson (market share fell from 6% to 3%)
 Samsung gained market share- 10% to 17.4% in 09-10
 LG’s market share increased marginally from 4.5% to 5.9%
 Swot Analysis of Nokia

Strengths

1. Experience – 142 year history.

2. Leader in the industry (selling and distribution)
3. Strong financial support for R&D.
4. Strong customer relations.
5. User friendly phones.
6. Wide range of products.
7. Re-sale value is high.
8. Economies of scale.
9. Lower logistics costs than competitors.

High margins.
Do it yourself manufacturing – manufactures 75% of its phones

Weakness

1. N gage is considered flop.

2. Not targeting the lower class of society in promotions.
3. Lapse has opened up market for new competitors.
4. Didn’t customize phones based on customers in each region.
Opportunities

1. New growth markets where cell phone adoption still has room to go,
Including India and other countries.
2. Increase their presence in 3G and Edge market.
3. Potential in Latin America, market for entry.
4. Decrease prices in volume market & increase profit margin overall.

Threats
1. Strong competitors
2. Saturation in current market rapid change in technology.
3. Cheaper and midrange models from Motorola.
4. Threat from apple I phone.
5. Growth in handset models to slow from 21% experienced over the past
Few years to 10% in 2008.
 MARKETING STRATEGIES OF THE MAJOR PLAYERS

NOKIA:-

“Wherever, whenever, we believer in communicating, sharing

and in the awesome potential of connecting the 2 billion who do,
with the 4 billon who don’t” At Nokia, customers remain our top
priority. Customer focus and consumer understanding must
always drive our day-to-day business behavior.
Nokia’s priority is to be the most preferred partner to
operators, retailers and enterprises. Nokia will continue to be a
growth company and we will expand to new markets and
businesses. World leading productivity is critical for our future
success. Our brand goal is for Nokia to become the brand most
loved by our customers.

SAMSUNG;-

The strategy included bolstering its distribution network, rolling out a

number of mobile phone models in all price segments, and adopting a new
positioning for the brand supported by celebrity endorsement. Earlier in
2006, Samsung India had planned to increase its market share to 20
percent by 2008, focusing primarily on the mobile phone replacement
market. With this in mind , the company had discontinued its cheaper
monochrome screen models and focused on offering sleek and stylish
mobile phones, in particular were popular with a segment of the youth
population .However its market share continued to hover around 10
percent. With Aamir Khan as its brand ambassador the company is trying
to project a sense of uniqueness.
LG:-

Lg will invest 300 crore this year in brand building, distribution strategy
and marketing activities, Lg Electronics India Business Group Marketing
Head (mobile communications) Sudhin Mathur says. It has appointed
John Abraham , Genelia D’souza and Abhay Deol as brand ambassadors
for LG mobile phones in India. The company is also targeting a three –
fold increase in revenue s this year to Rs 3000 crores from Rs 1000
crore at present
“We will position LG Mobiles as a Fun loving, free spirited brand. Our
strong differentiated product line up with clearly defined value
propositions and enhanced distribution reach ill help”, Mathur says .
There would be an aggressive multi-media campaign covering television ,
radio,outdoor,cinema and internet, supplemented by print advertisement.

SONY ERICSSON:-

In a bid to recapture market share in the fastest growing mobile market

in the world. Sony Ericsson has restructured its India strategy with a
slew of new products and more focus on retail and distribution activities.
Sony Ericsson’s market share in the Indian market has declined over
the past few years to be overtaken by the likes of Samsung and LG.
Speaking to business line, Mr Hirokazu Ishizuka, Corporate Vice
President, Sony Ericsson said “We want to leave the past behind us and
now focus on improving our performance in India. This market is very
important and is already among the top five markets for us both in
terms of revenues and volumes.
 MARKETING MANAGEMENT

ASSINGMENT ON “INDUSTRY ANALYSIS OF THE

MOBILE HANDSET INDUSTRY”

NAME: - JAI RAJ DUBEY

SECTION: - MBA (GEN) B

SEMESTER: - FIRST

ENROLLMENT NO:-

SUB TOPICS:-
 ABOUT THE INDUSTRY
 THE MAJOR PLAYERS & MARKET POSITION
 SWOT ANALYSIS OF NOKIA
 MARKETING STRATEGIES OF THE MAJOR PLAYERS
 BIBLIOGRAPHY
 BIBLIOGRAPHY

This assignment has been compiled by me successfully with the

information gathered from the following sources
 www.iloveindia.com
 www.pluggd.in(sinha)
 www.scribd.com(bilalnaeem)
 www.scribd.com(hardyroxxs)
 Yahoo answers