Professional Documents
Culture Documents
On
Prepared by
ANUJ VATS
B.COM(H)- 2nd Semester
Enrollment No. - 0821701707
Date - __________
Faculty guide:
CERTIFICATE
(Anuj Vats)
PREFACE
The project gives an insight of the telecom sector through Motorola India ltd. It basically helps
understanding the brand preference of consumers with regard to mobile phones. It helps us to
know what are the basis on which a customer chooses a particular brand when he purchases a
new handset.
The project will help to learn about the growing telecom sector in India. The research will also
bring to light what all factors a customer considers at the time of purchase of a new mobile
phone.
TABLE OF CONTENTS
1. INTRODUCTION
1.1 Company profile
1.2 Introduction
1.3 Scope of industry
1.4 Objective
2. RESEARCH METHODOLOGY
2.1 Sample size
2.2 Sample location
2.3 Research type
2.4 Data Types
4. Recommendations
Limitations
Conclusions
9. BIBLIOGRAPHY
1.1 Company Profile
Motorola Inc.
Founded 1928
Industr
y Telecommunications
Embedded systems
Microprocessors
Product
s Mobile phones
Two-Way radios
Networking Systems
Revenu
e ▲$36.622 billion USD (2007)
Operatin
g
incom ▼ $553.0 million USD (2007)
e
Websit
e www.motorola.com
MOTOROLA Electronics a wholly owned subsidiary of MOTOROLA 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 MOTOROLA in a period of 4 and 5 months with the
commencement of operations in May 2003. MOTOROLA 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, MOTOROLA 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.
The Greater Noida manufacturing unit line has been designed with the latest technologies at
par with international standards at Korea and is one of the most Eco-friendly units amongst
all MOTOROLA manufacturing plants in the world.
The year 2001 witnessed MOTOROLA becoming the fastest growing company in the
consumer electronics, home appliances and computer peripherals industry. The company had
till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India
since its inception in 2003 , making it the fastest ever Rs 5000 Crores clocked by any
company in the Indian consumer electronics and home appliances industry. Having achieved
this milestone, MOTOROLA achieved another benchmark with the first ever sales of One
Lakh ACs (Windows and Splits) in a calendar year. MOTOROLA is poised to surpass its
turnover target of Rs. 2700 Crores this year and clock a turnover of Rs. 3000 Crores.
This year, MOTOROLA has emerged as the leader in Colour Televisions, Semi Automatic
Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In
Colour Televisions having set the sales target of one million units of Color Televisions for
2002, MOTOROLA has already achieved the one million mark in the month ahead of its
target.
MOTOROLA Electronics India is the fastest growing company in the consumer electronics,
home appliances and computer peripherals industry today.
MOTOROLA Electronics is continually providing superior technology products & value for
money to over 50 lac households in India.
Mr. K.R. Kim, Managing Director, MOTOROLA Electronics said, "I am extremely
pleased with our performance in 2006 as we have been able to sustain growth during
a year of slowdown in the consumer electronics and home appliances industry." He
added, "Our growth record has led us to expand manufacturing presence in India. We have
accordingly reinforced our sales and distribution network through the concept of area
offices to reach out more Indian consumers in semi urban and rural India."
History
Motorola started as Galvin Manufacturing Corporation in 1928. The name Motorola was
adopted in 1947, but the word had been used as a trademark since the 1930s. Founders Paul
Galvin and Joe Galvin came up with the name Motorola when their company started
manufacturing car radios. A number of early companies making phonographs, radios, and other
audio equipment in the early 20th century used the suffix "-ola," the most famous being
Victrola; RCA made a "radiola"; there was also a company that made jukeboxes called Rock-
Ola, and a film editing device called a Moviola. The Motorola prefix "motor-" was chosen
because the company's initial focus was in automotive electronics. Many of Motorola's products
have been radio-related, starting with a battery eliminator for radios, through the first walkie-
talkie in the world, defense electronics, cellular infrastructure equipment, and mobile phone
manufacturing. The company was also strong in semiconductor technology, including integrated
circuits used in computers. Motorola has been the main supplier for the microprocessors used in
Commodore Amiga, Apple Macintosh and Power Macintosh personal computers. The chip used
in the latter computers, the PowerPC family, was developed with IBM and in a partnership with
Apple (known as the AIM alliance). Motorola also has a diverse line of communication
products, including satellite systems, digital cable boxes and modems
Products
Motorola creates several different products for use of the government, public safety officials,
business installments, and the general public. These products include cell phones, laptops, and
radios.
Spinoffs
Motorola developed the first truly global communication network using a set of 66 satellites.
The business ambitions behind this project and the need for raising venture capital to fund the
project led to the creation of the Iridium Company in the late 1990s. While the technology was
proven to work, Iridium failed to attract sufficient customers and they filed for bankruptcy in
1999. Obligations to Motorola and loss of expected revenue caused Motorola to spin off the ON
Semiconductor (ONNN) business August 4, 1999, raising for Motorola of about $1.1 Billion.
Further declines in business during 2000 and 2001, caused Motorola to spin off its government
and defense business to General Dynamics. The business deal closed September 2001. Thus GD
Decision Systems was formed (and later merged with General Dynamics C4 Systems) from
Motorola's Integrated Information Systems Group
On October 6, 2003, Motorola announced that it would spin off its semiconductor product sector
into a separate company called Free scale Semiconductor, Inc.. The new company began trading on
the New York Stock Exchange on July 16th of the following year.
Quality systems
The Six Sigma quality system was developed at Motorola even though it became best known
through its use by General Electric. It was created by engineer Bill Smith, under the direction of Bob
Galvin (son of founder Paul Galvin) when he was running the company. Motorola University is one
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.
As a pioneer in wireless communications, Motorola has transformed the cell phone into an
icon of personal technology — an integral part of daily communications, data management
and mobile entertainment. Motorola not only designs, manufactures sells and services
wireless handsets, but also licenses its vast portfolio of intellectual property. Our collection
spans all cellular and wireless systems and includes integrated software applications as well
as one a large complement of Bluetooth®-enabled accessories. We offer customers
innovative product designs that deliver "must have" experiences, such as mobile music and
video — enabling seamless connectivity at work or at play.
COMPANY SUCCESS
Winner: WiMAX Flexible Point Access System, Best of WiMAX World Europe Awards,
2007
Excellence in Technology Innovation Ongoing Achievement: WiMAX Flexible Access
Point System, EOS Awards, NXTcomm Chicago, 2007
Industry Innovation Award: WiMAX Distributed Network Architecture, exchange
Magazine, Best of WiMAX World Awards, USA, 2006
Home-Networking Winners: Mot SVG2500 Wireless VoIP Cable Modem Gateway and
Mot SBV5400 VoIP Cable Modem/ Cordless Phone System, International CES Design and
Engineering Awards, 2006
Winner: Best Home Wireless Product, CES Mark of Excellence Awards, 2006
Product of the Year: VoIP Open-Application Enabling Platform, Internet Telephony,
USA, 2005
RESEARCH AND DEVELOPMENT
100 Most Technologically Significant Products of the Year: Printed Active Displays,
R&D 100 Awards, 2007
Nano50 Award: Motorola Labs' NED technology, Nanotech Briefs, 2006
Malaysia Leadership in ICT R&D Award: Motorola Software Center, Multimedia
Development Corporation, 2006
Best of ITS Research & Innovation Winner: MOTODRIVE, ITS America Awards, 2006
Innovation Excellence Award, Mobile Devices: Motorola China Research Center,
Excellent Innovation Team Awards, 2005
CORPORATE RESPONSIBILITY
Corporate responsibility means harnessing the power of our global business to benefit people.
It also means doing the right thing in all aspects of our business, including how we treat the
environment, our employees, our customers, our partners and our communities.
Top 100 Corporate Citizens: No. 4, Corporate Responsibility Officer Magazine, USA,
2007
Outstanding Safety Practice Award, National Safety Council, USA, 2006
Top 10 Most Socially Responsible Businesses, National Business Social Responsibility
Survey, Israel, 2006
Corporate Social Responsibility Certificate, Mexico Center for Philanthropy, 2006
Platinum Health Award, Health Promotion Board, Singapore, 2006
MOBILE DEVICES
Winner: CNET People’s Voice Award, ROKR E8, Consumer Electronics Show (CES), 2008
Winner: CNET Best of CES, Cell phones and Smartphones category, ROKR E8,
Consumer Electronics Show, 2008
Winner: Top 20 Products of CES — Editor's Choice Award, ROKR E8, Popular Mechanics
magazine, 2008
Winner: Best of CES 2008: Best Cell Phone, ROKR E8, LAPTOP magazine, 2008
Winner: 2008 CES Best of Innovations Design and Engineering Award, headphones
category, MOTOROKR S9, Consumer Electronics Show, 2008
Winner: Best of CES, Bluetooth® transfer category, Motorola T815, Smartphone-based
navigation system featuring MOTONAV, Bluetooth Special Interest Group (SIG), 2008
Best Ultra Low Cost Handset, 3GSM Global Mobile Awards, 2006
Winners: MOTORIZR and MOTOKRZR K1m, International CES Design and
Engineering Awards, 2006
Winners: Motorola/Burton Audex jacket and Motorola/Oakley RAZRWIRE,
International CES Design and Engineering Awards, 2006
Best of What's New: MOTO Q, Popular Science Magazine, 2006
Unique Product Winner: Motorola Audex Protective Gear, Bluetooth SIG Best of
CES Awards, 2006
First Place Hardware/Mobile Phone: SLVR L7, CTIA Wireless E-tech Awards, 2006
Editor's Choice, Mobile Phone: RAZR V3 Black/Pink, CNET, 2005
Best in Class: RAZR V3 Silver, PC News Weekly, 2005
Mobile Innovations Award: RAZR v3 Silver, Mobile News Awards, 2005
1.2 INTRODUCTION
Cellular Telephony
The technology that gives a person the power to communicate anytime, anywhere - has spawned
an entire industry in mobile telecommunication. Mobile telephones have become an integral part
of the growth, success and efficiency of any business / economy.
The most prevalent wireless standard in the world today, is GSM. The GSM Association (Global
System for Mobile Communications) was instituted in 1987 to promote and expedite the
adoption, development and deployment and evolution of the GSM standard for digital wireless
communications.
The GSM Association was formed as a result of a European Community agreement on the need
to adopt common standards suitable for cross border European mobile communications. Starting
off primarily as a European standard, the Group Special Mobile as it was then called, soon came
to represent the Global System for Mobile Communications as it achieved the status of a world-
wide standard. GSM is today, the world's leading digital standard accounting for 68.5% of the
global digital wireless market.
The Indian Government when considering the introduction of cellular services into the country,
made a landmark decision to introduce the GSM standard, leapfrogging obsolescent
technologies / standards.
Although cellular licenses were made technology neutral in September 2005, all the private
operators are presently offering only GSM based mobile services. The new licensees for the 4th
cellular licenses that were awarded in July 2001 too, have opted for GSM technology to offer
their mobile services.
Cellular Industry in India
My research will help the telecom industry to know the current scenario of customers with
respect to brand preference of mobile phones, with respect to Motorola.
Title Justification – This title is justified as it tells about the customer preference
towards Motorola mobile phones as compared to other brands.
SAMPLING METHODOLOGY:
2.1 Sampling Size – 25 respondents
Visited the customers across Delhi and NCR & gathered information required as per the
questionnaire.
The research design is probability research design and is descriptive research.
Primary data has been used by me in the form of Questionnaire & Observation, which are the
two basic methods of collecting primary data, which suffices all research objectives.
Secondary data sources like catalogue of the company, product range book of the company &
various internet sites such as motorola.com & google.com have been used.
CHAPTER 3: FINDINGS AND DISCUSSIONS
FINDINGS
as brands among the
Nokia, Samsung, Motorola and Sony Ericsson are the favorite
customers in Delhi Market, closely followed by others.
The brand awareness of MOTOROLA mobile phones seems to be almost 100%.
The general opinion about MOTOROLA mobile phones is that it is either good or
satisfactory.
DATA ANALYSIS AND INTERPRETATION
0%0%
100%
Figure 1
Interpretation: -
It was found out that all the 50 respondents were using mobile phones.
10%
12%
44%
22%
12%
Figure 2
Interpretation:-
The above chart (Figure2) shows the percentage of various handsets used by the respondents.
Satisfaction
yes no
16%
84%
Figure 3
Interpretation: -
The chart (Figure3) shows maximum number of respondents who were satisfied with their
handsets.
AWARENESS
NOT AWARE AWARE
2%
98%
Figure 4
Interpretation: -
The pie chart(Figure4) shows the percentage of respondents who were aware of the
brand Motorola.
20% 18%
22%
40%
Figure 5
Interpretation: -
The above chart (Figure 5) depicts the respondents buying behavior with reference to time.
12%
36%
28%
10%
14%
Figure 6
Interpretation: -
This chart (Figure 6) depicts the respondents’ next preference for mobile phones.
12%
16%
72%
Figure 7
Interpretation: -
This shows (Figure 7) the source of purchase of handset of the respondents.
20%
80%
Figure 8
Interpretation: -
This shows (Figure 8) that maximum respondents consider Motorola mobile phones value
for their money.
Features Preferred
camera bluetooth mp3 mms others
8%
12% 24%
12%
44%
Figure 9
Interpretation: -
This shows (Figure 9) the various additional features which customer takes into account
while purchasing handset.
6%
32%
62%
Figure 10
Interpretation: -
This shows (Figure 10) that the after sales service is considered to be of prime importance to
the respondents.
In my survey I found that almost 90% of the customers purchased their material from local
dealers and only 10% of them purchased from the sales representative of the company.
In the Telecom Industry there are usually National & City distributors. A three-tier system is
followed whereby:
In case of MOTOROLA the Company has been following a very systematic channel
approach whereby only the first two Tiers are involved.i.e
MOTOROLA ’s billing of goods are directly billed to the Local Distributor which not only
helps in better interaction with them but also gives the company a more Microscopic focus of all
the happenings along with the Accountability of goods sold. The company through this practice
of it’s not only able to increase its revenue but is also able to increase its margins better.
MAJOR BRANDS THAT ARE DEALT BY DEALERS
Most of the executives who were surveyed had almost all the Brands of Mobile Handsets with
them and the final analysis upon which I arrived at was that Nokia is the No.1 selling Handset
in Delhi followed by Samsung, Motorola and Sony Ericsson.
Nokia no doubt has carved a niche for itself over the past 4-5 years with its superior technology
and its loyalty towards the Indian customer which certainly makes it the most superior brand.
The biggest advantage that has worked in Nokia’s favor is its marketing strategy, which focuses
more on their state of the art Handsets. They were the first company to come with a mobile
with an in-built camera in it and they surely knew how to sell their product. Today almost all
mobile companies have followed suit and come out with their own in-built camera mobiles.
Nokia is certainly a value for money mobile as more than 90% of the dealers interviewed
agreed on this statement, not only is the after sale service excellent but also the quality and
pricing of products is excellent. In such a scenario not only the existing companies but also the
new entrants such as MOTOROLA, BenQ, Alcatel etc will have to justify their launch in the
long run.
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.
2. MMS (Multimedia Messaging Service) - With MMS, it is not only possible to send your
multimedia messages from one phone to another, but also from phone to e-mail, and vice versa.
This feature dramatically increases the possibilities of mobile communication, both for private
and corporate use.
3. Integrated Camera – The latest in-thing, mobile phones with in-built camera. These
phones serve the twin service of mobile and a camera. One can not only click but also store
photos and even send it to their near and dear ones. Camera phones accounted for at least 10%
respondents in the survey conducted.
4. Tri-Band – A tri-band facility is useful for people who are constantly going abroad as a tri-
band enabled handset let’s one access the network of another country also and also keeps you
connected with people back home.
5. Size/Weight – These days mobile handsets come in various shapes and sizes with different
weights. The needs and requirements of a customer differ from person-to- Person as some like
bigger sets with minimum weight whereas there are some who prefer lighter sets with lighter
weights.
6. Talk/Stand by Time – Customers do pay a lot of attention on talk/stand by time as they
want a mobile, which can last the longest. Companies often promise of talk time
Of 4-6 hrs on various handsets, but ultimately it’s the customer who has to decide and make the
best choice for him.
7. WAP (Wireless Application Protocol) – WAP let’s one access the Internet-based services
supported by your network, such as news, weather reports and flight timings etc, even when you
are mobile.
8. Battery – Every customer wants his/her battery to last the longest and all mobile companies
fight out promising that their battery backup is the best. A mobile function on a battery and a
cheap and sub-standard battery always makes the customer vary of the companies’ products and
services.
9. Mp3 Ring Tones – An mp3 ring tone is the next generation of ring tones that has better
sound quality than traditional monotone or a polyphonic ring tones. Mp3 ring tones sound great
and truly make your phone unique. Mp3 ring tones phones are in major demand by the
customers.
SWOT ANALYSIS
STRENGTH: -
A well established brand name helps in promoting a new range of products. MOTOROLA is a
Multinational Company based in South Korea, which is considered to be a technically advanced
country with advanced products to meet the requirement of target customers internationally.
The company has a wide range of products to suite the purse & the taste of various segments of
customers.
The company has a huge advertisement budget which helps in brand positioning & recall.
It has a well established sales network of more than 4000 dealers & branch offices around the
globe & the company makes such of its products available as are in demand in each particular
area.
WEAKNESS: -
The company needs to evolve a comprehensive plan & strategy to make inroads into a part of
middle class & upper middle class.
Lack of production centers in India makes the product costlier as most of the parts have to be
imported.
Lack of R & D centers also makes it difficult to launch new products over here.
OPPORTUNITIES: -
The present rate of growth of the Entertainment & Telecommunication Industry & a large
potential available in these areas provides excellent opportunity for the company to widen its
market.
With the fast growing economy the pricing strategy needs to be tackled with care as it can
decide upon long term decisions of the company.
Globalization is yet another opportunity, if failed effectively & promptly.
THREATS: -
It is natural that threats from the existing as well as new entrants will affect the present turnover
& Market share. The nearest competitors having the identical product range are the
greatest threat to the company.
CHAPTER 4
RECOMENDATIONS
The company should try to reach maximum Consumers in INDIA by making distribution
channel more effective.
The company should continue to work on the Strategy of T.Q.M (Total Quality Management)
The MOTOROLA is a brand in itself and non-of the other brands are in a position to
compare with it in Quality, Reliability, Brand Image. Even then a number of other brands are
entering the market and are acquiring a good market share. The main reason behind it is that
the distributors of the company are not able to provide regular supply to the retailers in all the
areas.
Consumers do not get satisfied with the promotional policies of the company. New
techniques of promotion is required to create awareness about the entire range of
MOTOROLA products
LIMITATIONS
A small sample size of 50 customers was considered due to lack of time & resource
constraints.
The scope of the project is limited to the city of Delhi and N.C.R. So, we cannot say that the
same response will exist throughout India.
With regard to uneducated customers it was difficult to get across to them all the features of
their respective mobile phones.
CONCLUSION
Hereby I can conclude from this research that Nokia has the maximum brand preference
as compared to other brands.
Most of the dealers are selling more than one brand. They sell different brands to gain more
volume & more availability to the customers. So dealer’s preference to push a particular brand to
the customer plays a major role in the mobile market.
According to the dealers advertising & promotional schemes along with other schemes also
affect the consumer’s willingness. Aggressive advertising put into effect for a long time in the
customers mind, which influence the people, are T.V, Newspapers & magazines.
Consumers prefer a MNC brand due to the quality & technological superior features. Consumers
also judge the after sale service availability of the company before purchasing a mobile.
BIBLIOGRAPHY
WEBSITES:
Http://en.wikipedia.org/wiki/Motorola
http://www.google.co.in/search?hl=en&q=motorola&meta=
Http://www.motorola.com/content.jsp?globalObjectId=8592-11929
http://www.fonearena.com/motorola-phones.html
Name: _________________________________
Age: _____yrs
Occupation: _______________
Q5. In what time you are thinking to change your handset or buying a new one?
Within a week
Within a month
Within six months
Within a year
Nokia
Samsung
Motorola
Sony Ericsson
Others
Q8. Do you think Motorola mobile phones are value for money?
Yes
No
Q9. What according to you is the most important additional feature that should be present in a
mobile phone?
Integrated camera
Bluetooth
Mp3
MMS
Others
Very important
Important
Average