CHAPTER 1: INTRODUCTION 1.1 INTRODUCTION .

. Today, mobile handsets have not only metamorphosed from the huge briefcase size devices of the 1980s to the ultra slim phones, but have also moved beyond being mere devices to make and receive calls. with more & more features and technologies being added, mobile handsets are on the way to be a single device serving the purpose of a phone, camera, MP3 player,GPRS ,games, television and a lot more. India has been the largest emerging mobile handset market in the last one year, surpassing China and these super gadgets have already made inroads in the Indian market. In India, there are already 250 million mobile customers, with 7 million more people every month becoming mobile users. In 2007 itself, the mobile market in India grew to 120 million and this growth is expected to cross 180 million units this year. with such an astonishing no. of mobile users in India, and just a little over 31 million PCs,mobile handsets will soon replace the personal computer. In India, Nokia, Sony Ericsson, and Motorola are the frontrunners, along with a plethora of players like Samsung, LG, Spice and Fly with other small players looking to grab place for them. Nokia, over the years, has been tasting success with its focused product range, competitive pricing and good Distribution Network. Sonys brand identity of high memory phones & phones with unique imaging solutions has been built with aggressive advertising and marketing strategy, while Motorola has focused on building an Indian appeal and strong Indian connection with products targeting the youths. Right from opening up experience stores to branded retail shops, handsets makers are leaving no stones unturned. While Spice mobiles and fly mobiles are aiming mainly at bottom of the pyramid. Though, Spice is also attracting customers through its dual mobiles like D-88n.

Mobile phone giant Nokias market share in India has increased to 62.5 % 2007-08 from 53.6 % in the previous year.Nokias revenue from the mobile segment stood at Rs. 15,000 crore, up by 30.6 %, compared to Rs. 11,486 crore in 2006-07.the companys increased market share seems to have come from the LG, Motorola and other players who have lost significant shares. The market leader is followed by Sony Ericsson and Samsung at second and third place with 12.8 % and 7% market share respectively. Motorola which is planning to sell the handset business also saw its share erode to just 5.9%, losing revenue by almost 50%.while LG is the biggest loser with a market share of just 3.41% and the comers like Spice have only 1.7% stake,thanks to its good position in Karnataka and Punjab, being the second and fifth largest handsets provider there. Indias telecom equipment revenue touched Rs. 95407 crore in 2007-08 driven by the rising demand for mobile handsets and wireless infrastructure expansion by service providers. In telecom equipment, Ericsson had revenue of Rs. 8,000 crore. Nokia Siemens network, the merged entity between Nokia and Siemens had revenues of Rs.7779 crore and Alcatel Lucent posted revenues of Rs.7,000 crore. While Nokia and Ericsson retained their positions as top players, Nokia Siemens Network, struck major deals in the wireless segment. Expansion of mobile networks And broadband infrastructure and the introduction of 3G technology will sustain the growth in the current year. Out of the total revenue of Rs. 95,407 crore, handsets business was Rs. 24,000 crore.the phone segment contributed nearly one fourth to the total telecom equipment industry, Rs. 25,203 crore recording a growth of 7 per cent.

In the handset segment, revenues of mobile handsets manufacturer grew 12% to Rs.24,003 crore, while the fixed handsets sales decreased by 41% to Rs. 12,00 crore, over the same period last year. The Indian handset market recorded a 33% growth by volume with 95.6 million pieces sold during the year against 71.8 million in the same period in the previous year. Of the total handsets sold, 68.3 million were GSM phones and 27.3 million phones are based on CDMA technology Youths have been the main target for the converged mobile phones. Handset makers have been redefining the ways to crack the youth segment which is also the primary target for the replacement market as young people have a tendency to change their handsets often. This has seen companies launching new set of products every six months.

1.2: PROBLEM IDENTIFICATION The objective of our research is to check the market potential for mobile phones in different price segments. Wherein, I compared the sales of different mobile phones and tried to find out the models of Spice having maximum sales and reasons for the low sales of Spice compared to Samsung and Nokia.

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CHAPTER 2: 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 The research design applied here was exploratory research and descriptive research. Exploratory Research is one in we dont know about the problem, we have to find about the problem and then work on solving the problem. Whereas in case of descriptive research, we know the problem, we just have to find the solution to the problem. Generally descriptive research design is applied after exploratory research design. Here, through primary research we came to know bout the sales for different mobiles , customer likings, problems faced y dealers and reasons for low sales of Spice mobiles. While through secondary research, I got the valuable data that I used for the trend and swot analysis. 2.3 SAMPLE SIZE To complete the research, the questionnaire was filled by 100 respondents, which were randomly selected. The respondents were the mobile dealers from the East Delhi 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 us in the primary research to ask the questions which are still unanswered & we can get only through primary study. SPSS& EXCEL has been used to fill in and to analyze the data collected.

CHAPTER 3: 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. Sample size: 100 respondents Basis of selection: randomly selected No. of questions:15 Area: East Delhi

CHAPTER 4 : DATA ANALYZATION AND FACT FINDINGS

4.1 PRIMARY DATA:

Q1. TABLE FOR Ist VARIABLE:

1. Out of the following, which company's mobiles have you placed in your shop?

Valid

Nokia,samsung Nokia,samsung, Spice Nokia,Spice,Fly Nokia,Samsung, Spice,Fly Nokia,Fly Total

frequency 1 9 6 83 1 100

percent 1.0 9.0 6.0 83.0 1.0 100.0

Valid percent 1.0 9.0 6.0 83.0 1.0 100.0

Cumulative percent 1.0 10.0 16.0 99.0 100.0