A PROJECT REPORT ON CASE STUDY OF NOKIA & SAMSUNG COMPARATIVE ANALYSIS BETWEEN NOKIA & SAMSUNG Submitted to:JAGANNATH

INSTITUTE OF MANAGEMENT SCIENCES

Under the supervision:Mrs. Smriti Dua

Presented by:Mohita shukla Pooja mittal Ankita Badula Mehak Arora Gauri Kansal Ankit Biyani Tanuj Jain Divyanshu Arora Nikhil Dua Rohit Sharma BBA 2nd Semester

SESSION 2009-2012 JaganNath Institute of Management Sciences, Rohini Delhi-110085

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ACKNOWLEDGEMENT
Survey is an excellent tool for learning an exploration no classroom routine can substitute which is possible while working in real situations application of the article knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, its not easy to achieve anything. There is always a sense of gratitude, which we express to other for the help and the needy sevice they render during the development of this project. First of all we wish to express my profound gratitude & sincere thanks to my esteemed learned Director who allowed me to conduct the survey. We would like to thank my lect. Mrs. Smriti Dua who has always there to help and guide me when we needed help. His perceptive criticism kept me working to make the project more full proof. We thankful to her for her encouraging & enriching experience for me. We very thankful to him for all the addition & enhancement done to us. No words can adequately express our overriding debt of gratitude to my parents whose support help me in all the way above all I shall thank all my friends.!

1.1. TABLE OF CONTENTS CONTENTS CHAPTER 1 INTRODUCTION

1.1. Overview of Industry as a whole 1.2. Profile of the Organization 1.3. Problems of the Organization 1.4. Competition Information 1.5. S.W.O.T Analysis of the Organization

PAGE NO. 3-22

3 8 16 17 22

CHAPTER 2 - OBJECTIVES & METHODOLOGY

2.1. Significance 2.2. Managerial usefulness of the study 2.3. Objectives 2.4. Scope of the Study 2.5. Research Methodology

23-28
24 25 26 26 27

CHAPTER-3

CONCEPTUAL DISCUSSION

29-60

CHAPTER-4
CHAPTER-5

DATA ANALYSIS
FINDINGS & RECOMMENDATIONS

61-73
74-82

ANNEXURE APPENDIX BIBLIOGRAPHY

CHAPTER-1INTRODUCTION
OVERVIEW OF INDUSTRY AS A WHOLE
In today's world, most people communicate through the use cellular phones. It's hard to believe that fifteen years ago cell phones were a rarity. Below is a history chronicling the dawn of the cell phone to its current state. 1843-Faraday exposed his great advances of nineteenth-century science and technology and his discoveries have had an incalculable effect on technical development toward cellular phone development. 1865 - Dr. Mahlon Loomis of Virginia, a dentist, may have been the first person to communicate through wireless via the atmosphere. Between 1866 and 1873 he transmitted telegraphic messages at a distance of 18 miles between the tops of Coshocton and Beorse Deer Mountains, Virginia. 1973 - Dr Martin Cooper is considered the inventor of the first portable handset. Dr. Cooper, former general manager for the systems division at Motorola, and the first person to make a call on a portable cellular phone. 1973 - Dr. Cooper set up a base station in New York with the first working prototype of a cellular telephone, the Motorola Dynastic. Mr. Cooper and Motorola took the phone technology to New York to show the public. 1977 - Cell phones go public. Public cell phone testing began. The city of Chicago was here the first trials began with 2000 customers and eventually other cell phone trials appeared in the Washington D.C. and Baltimore area. Japan began testing cellular phone service in 1979. 1988 - This year changed many of the technologies that had become typical in the past. The Cellular Technology Industry Association (CTIA) was developed to lay down practical goals for cellular phone providers. According to the Cellular Telecommunications Industry Association, today there are more than 60 million 4

customers with cellular phones, even though wireless service was just invented nearly 50 years ago. The cellular business was a $3 million market 25 years ago and has grown increasingly to close to a $30 billion per year industry

About the Industry

The cell phone industry has evolved greatly in the past 10 years. 10 years ago only the rich could afford cell phones, and they looked like boxes more than some thing that could fit in your pocket. Today, more people have cell phones than fixed telephone lines, both in the United States and internationally. There are more than one billion cell phone users worldwide." Cell phones have now become a part of every day life. Without cell phones we would be lost in our high tech world. Americans spend 7 hours a month on cell phones. The effects of new technology have had positive effects in school, too. Cell phone use is getting more and popular. "Some 85 million U.S. residents30 percent of the populationhave joined the mobile-phone revolution. There are already 1 billion cell phone users world wide. Between 2010 and 2020 it will be hard to find a person with out a cell phone. They are now bought for the fact that they are used in emergency situations. Nearly 156,000 wireless emergency service calls were made every dayabout 108 calls per minute. Parents are now buying them for their children so they know where they are all the time. Every company has their different Marketing Strategies. Now I am going to discuss the Marketing strategies of Nokia.

Indias Tele-density in January 2008 neared 12% with the subscriber base nearing the 130mn mark. During January 2008, record 5mn subscribers were added as against 4.92mn subscribers in December 2007. This strong growth could be attributed to lifetime validity cards launched by almost all operators. During the first 10 months of FY06, 31.41mn subscribers have been added. In the fixed segment, a total of 0.28mn subscribers were added during January 2008, taking the subscriber base of fixed line services to 49.21mn. In the mobile segment, total additions during the month summed up to 4.69mn with highest ever GSM additions of 3.52mn and CDMA additions of 1.17mn. During the first 10 months of FY08, 28.39mn subscribers have been added Telecom Industry in India

Nokia Motorola Siemens Sony Ericsson Samsung Philips Others

60% 10% 02% 03% 10% 10% 05%

60% 50% 40% 30% 20% 10% 0%

60% Nokia Motorola Siemens Sony Ericsson Samsung 10% 2% 3% 10% 10% 5% Philips Others

1.2. PROFILE OF THE ORGANIZATION Company Profile

Nokia's history starts in 1865, Due to the European industrialization and the growing consumption of paper and cardboard Nokia soon became successful. Nokias Cable Work's Electronics department started to conduct research into semiconductor technology in the 1960s. This was the beginning of Nokias journey into telecommunications. Nokia today is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. The company includes four business groups; Mobile Phones; Multimedia; Networks and Enterprise Solutions. In this project I will be focusing only on the mobile Phone business of Nokia in India. Nokia Corporation engages in the manufacture of mobile devices and mobile networks. It also provides equipment, solutions, and services for network operators, service providers, and corporations. The company operates in four segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment enables to create, access, and share multimedia in the form of advanced mobile multimedia computers and applications with connectivity over multiple technology standards. The Enterprise Solutions segment offers various products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software, and services for businesses and institutions. The Networks segment provides network infrastructure, communications, and networks service platforms, as well as professional services to operators and service providers. It focuses on the GSM family of radio technologies; networks with Internet Protocol and multi access capabilities; and professional services. The company also develops mobile WiMAX solutions. Nokia sells its 10

products to operators, distributors, independent retailers, and corporate customers. It has its operations in Europe, the Middle East, Africa, China, the Asia-Pacific, North America, and Latin America. The company was founded in 1865 and is based in Espoo, Finland.

Vision: Life Goes Mobile

Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice Goes Mobile! As history shows, this vision became reality in an incredibly short amount of time. With more than 1.6 billion mobile phone subscriptions globally and more mobile phones than fixed-line phones in use shows that mobility has transformed the way people live their lives

Business Mission: Connecting People

By connecting people, they help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people both when they are far apart and face-to-face and also bridges the gap between people and the information they need.

As a market leader, the best contribution we can make to the global community is to conduct our business in a responsible way. This belief drives our commitment to creating ethically sound policies and principles that guide us in our work. Our Corporate Responsibility (CR) agenda is framed around the Nokia Values and is carried out in all aspects of our work to ensure customer satisfaction and respect, and also to assist us in embracing renewal and striving for achievement. By striving to include all members of Nokia's community in this process, we are demonstrating our overall commitment to the belief that responsibility is everybody's business. In this section you will find information about our strategy and approach, navigating the

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links above will give you more concrete information on our Corporate Responsibility activities.

Our vision is a world where everyone is connected. With mobile subscriptions about to reach four billion, we are closer to our vision than anyone could have imagined just a few years ago. Our business benefits people, communities and the environment in new and exciting ways. As our business expands, so do our responsibilities. This sense of corporate responsibility (CR) is a fundamental part of who we are. Considering the wider impact of our actions is embedded in the Nokia Values, which guide our behavior, and in the Nokia Code of Conduct, which gives guidance to our everyday work. Global challenges such as climate change and poverty concern us all. As a business that affects the lives of billions around the world, Nokia is in a key position to offer solutions to these challenges. We bring the benefits of mobile technology to more people in ways that reflect our values and our responsibilities.

Our impacts
Nokia is the world's number one manufacturer of mobile devices by market share and a leader in the converging Internet and communications industries. We make a wide range of devices for all major consumer segments and offer Internet services that enable people to experience music, maps, media, messaging and games. We also provide comprehensive digital map information through NAVTEQ and equipment, solutions and services for communications networks through Nokia Siemens Networks. In 2008, Nokia's net sales were EUR 50.7 billion and operating profit was EUR 5.0 billion. At the end of 2008, we employed more than 128,445 people; had production facilities for mobile devices and network infrastructure around the world; sales in more than 150 countries; and a global network of sales, customer service and other operational units.

Corporate responsibility
Corporate responsibility is a fundamental element in Nokias business, brand and culture. Nokia aims to set the standards for the industry through initiatives that not only make a positive impact, but also make good business sense. The Nokia Code of

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Conduct commits us to uphold high ethical principles in everything we do. We respect the principles set in Universal Declaration of Human Rights and by the International Labor Organization and the United Nations Global Compact. Communications is a relatively "clean industry. It is not a high energy user, does not generate substantial pollution, and does not endanger people or communities. But a responsible business needs to address its impacts and aim to make a positive contribution wherever possible. Environmental issues are our main priority. Climate change is a serious threat which requires everyone to contribute to building a low carbon economy. We believe that strong, early action is necessary and that we have an opportunity to make a contribution to tackling climate change beyond the impact of our operations and our products. Our environmental strategy sees Nokia among the worlds leading companies for all aspects of environmental performance. We have three priorities: energy efficiency, managing substances in our products, and take-back and recycling. We are also focusing on developing mobile services to promote more sustainable lifestyles. Reflecting this prioritisiation, our environmental data can be found in its own section here. We have also set high ethical standards for our supply chain and our own factories. We seek to provide consumers with accessible high quality products that meet their needs and to trade with our customers responsibly. Above all, we aim to make a positive contribution to society at the local and global level. Please refer to our key Issues for information on how we identify our most important impacts.

Our values
The Nokia Way and Values: A flat, networked organization and speed and flexibility in decision-making characterize the Nokia Way of working. Equal opportunities and openness towards people and new ideas are also key elements we want to nourish. Nokia is straightforward when dealing with customers and suppliers, and we always looks for innovative ways of creating and introducing products and solutions to the market. We provide individuals with a platform for personal growth in a challenging environment with a clear vision, goals and shared management principles - the Nokia Way. The Nokia Way brings together talented individuals who share these principles, and therefore share success. The values of our company make us different. They provide a sense of direction for consistent behaviour as employees

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and citizens of the world, and in our quest to become more of an internet company. Through extensive employee engagement, we have renewed our values to reflect our business and changing environment. They act as a foundation for our evolving culture and are the basis of our operational mode. Living up to our values every day is our shared philosophy. Engaging you: For us, engaging you incorporates the customer satisfaction value and deals with engaging all our stakeholders, including employees, in what Nokia stands for in the world. Achieving together: Achieving together is more than collaboration and partnership. As well as trust, it involves sharing, having the right mind-set and working in formal and informal networks. Passion for innovation: Passion for innovation is based on a desire we have to live our dreams, to find courage and make the leap into the future through innovation in technology, ways of working and through understanding the world around us. Very human: Being very human encompasses what we offer customers, how we do business and the impact of our actions and behavior on people and the environment. It is about being very human in the world - making things simple, respecting and caring. In short, our desire is to be a very human company. For more information on the Nokia Way and Nokia Values, go to Nokia as an employer within careers.

As approximately one in three phones in use is a Nokia phone, its safe to say our products influence the lives of hundreds of millions of people.

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Maximizing the benefits of mobile communication and minimizing potentially negative effects requires commitment from governments, civil society, and the business sector. However, we recognize that as a market leader with global operations, our potential impact, and therefore our responsibility, is great. From a social growth and economic development perspective, we acknowledge our impact and responsibilities throughout our value chain: in our sourcing, product design, manufacturing, employee well-being, business partnerships, recycling, community involvement, and communications. Through our product lifecycle we respond to various environmental needs. Through employee relations, supply-chain management, and consumer offerings we aim to have a positive social influence. Our overall response to our stakeholders is to produce high-quality, safe products while upholding the law, protecting the environment, and following sound best practices. It is an expectation we strive to meet.

Nokia India

Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network. Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore. Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally.

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R & D centers
Nokia has three Research & Development centers in India, based in Hyderabad, Bangalore and Mumbai. These R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity. The Center in Bangalore, the biggest R&D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software & Services.

NOKIAS MARKET SHARE:

Today, Nokia is the leader in mobile phone technology, although they have other subsidiaries, namely Nokia Networks and Nokia Ventures Organization, which, together with Nokia Mobile Phones, form Nokia Group. Nokia also launched Vertu Ltd. in 2009, the worlds first luxury mobile phone company, selling gold and platinum phones at exorbitant prices. Last year, Nokia has once again retained its top position in the market. It enjoys a market share of 32.6%, followed by Samsung (because of their CDMA phones) with 29.6% and LG with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5% market share, with Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with 1.4%; they are the fourth, fifth, sixth and seventh largest players in the domestic handset market. In the GSM handset segment, Nokia has 58% market share, with Samsung at 14.7%, Motorola at 14.1%, and Sony Ericsson at 7.1%. Thus, Nokia has a larger presence in the GSM market than the CDMA market.

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Pie chart showing the market share in the GSM mobile phone market

Motorola 14.1%

Sony Ericsson 7.1%

Samsung 14.7%

Nokia 58.4%

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1.3. PROBLEMS OF THE ORGANIZATION

The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson, Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I have focused my research on Nokia and also on one of its major competitor; Sony Ericsson since these are very prominent players in the Indian market. Nokia has saturated the urban market including the B and C class cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its energies on the B and C class cities since which it had not ventured into so far. The following are the major problems faced by Nokia in the Indian cellular market: Identify cause of problems faced Nokia to enable the management to train the employees in handling the problems as well as solving the problem in a satisfactory manner. Segregate identified problems of Nokia into problems requiring staff development action such as training and into problems requiring other management actions, so that these problems are accurately addressed. Prioritize training actions in accordance to where the training need is more urgent.

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1.4 COMPETITION INFORMATION

Sony Ericsson: - Ericsson in one of the largest supplier of mobile systems in the
world and support all major standards for wireless communication. They drive the telecoms industry and are shaping the future. The worlds 10 largest mobile operators are among Ericsson's customers and some 40% of all mobile calls are made through its systems. Ericsson has been active worldwide since 1876 and is present in more than 140 countries. Headquarters are located in Stockholm, Sweden. Various Ericsson phones available in market example are given below. Ericsson R520 EricssonT39

Ericsson T60D / T60LX

Samsung: - In 1996, Samsung Electronics' Telecommunication Network Division

became the first in the world to utilize commercialized CDMA services. By year 2002, Samsung Electronics has grown into a world's telecommunications network leader, ranking third in the world's wireless communications market share and 55% in the domestic market. Various Samsungs phones available in market example are given below.

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Motorola: - Motorola is a global leader in wireless, automotive and broadband

communications. Motorola's Intelligence Everywhere. Motorola, Inc. (NYSE: MOT) today announced it was selected by Microsoft Corp. as the recipient of the North American Windows Embedded CE Partner Excellence award in the original equipment manufacturer (OEM) category. . Various Motorolas phones available in market example are given below.

Panasonic: - Panasonic, a creator of numerous electronic devices including

wireless handsets, have a corporate attitude that puts the consumer first. Panasonic continues to produce creative devices that "resolve the challenges in business and personal life".

LG:- Headquartered in San Diego, California, LG is the North American wireless

division of LGE, a business unit of LG Electronics (LGE) and global manufacturer of electronics products based in Seoul, Korea. LG entered the cellular phone market in 1998 and has expanded its market share to nearly 19% of CDMA wireless handsets sold, and placed third in the U.S. at the end of 2002, according to analysts at Strategy Analytics. Various Motorolas phones available in market example are given below.

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Marketing Strategy For Nokia

Marketing Strategy for Nokia For this project I have been instructed to come up with a marketing strategy for an existing company/product I have chosen to do Nokia communications, particularly the mobile phone sector of Nokia's business. To do this properly I will need to: * Appropriately identify, collect and use primary and secondary data that is relevant to the marketing strategy of Nokia. * Produce a clear analysis of the external influences affecting the development of a marketing strategy. * Complete a realistic rationale for the development of a coherent marketing mix for Nokia communications. * Show a full understanding of a marketing strategy for Nokia with a clear understanding of marketing principles. * Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing models and tools. Introducing the product Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of your mobile device) and after that the technological advances have come thick and fast, with advances such as: * MMS

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* WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders Competition in the market ------------------------With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson * Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game...

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1.5 S.W.O.T ANALYSIS OF NOKIA

Strengths
Is a dominant player in the smart phone market via its majority ownership of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smart phones sold in the next 4 years. 33% market share still the largest cell phone vendor by far, with double the market share of nearest competitor Size should enable Nokia to amortize R&D costs and to get cost advantages Brand position: probably one of the top 20 brands in the world

Weaknesses
The N-gage is considered a flop. Being the market leader and its increase role in Symbian is giving Nokia a bad image, much like Microsoft in the PC industry. Slow to adopt new ways of thinking: good examples are clamshell phones which are preferred by many customers. Nokia was reluctant to produce a clamshell until this year, when it launched its first model.

Opportunities
Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge New growth markets where cell phone adoption still has room to go, including India and other countries. Leverage its infrastructure business to get preference and a stronger position with carriers

Threats
Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC and others. Asian OEMs who are entering the market very aggressively (TCL, nGo Bird)

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 ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Operators want to lessen their dependency on handset vendors and the dominance of Nokia. Orange, O2, and many other operators globally are selling their own brand of phones.

1.2. PROFILE OF THE ORGANIZATION Company Profile

In 1938 the Samsungs fonder byung chull lee ser up a trade export company in Korea ,selling fish vegetables and fruit to china .within a decade Samsung had flour mills and confectionary machines and become a co-operation in 1951. humble beginnings. From 1958onwards Samsung began to expand into other industries such as financial, media, chemical and ship building throughout the 1970s .in 1969, Samsung electronics was established producing what Samsung is most famous for television, mobile phones (througout90s),radios, computer components and other electronics devices . 1987 founder and chairman,byung-chull lee passed away and kun-hee lee took over as chairman. In the1990s Samsung began to expand globally building factories in the us,Britain, Germany Thailand Mexico Spain and china until 1997 In 1997 nearly all Korean business shrunk in size and Samsung was no exception. They sold business to relieve debt and cut employees down lowering personnel by 50,000. but thanks to the electronic industry they manage to curb this and continue to grow. The history of Samsung and mobile phones stretches back to over 10 years .in 1993 Samsung developed the lightest mobile phone of its era the SCH 800 and it was available on CDMA networks.then they developed smart phone and a phone combined mp3 player towards the end of the 20th century .to this date Samsung are dedicated to the 3g industry . making video, camera phones at a speed to keep up with consumer demand .Samsung has made steady growth in the mobile industry and are

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currently second but competitor Nokia is ahead with more than 100%increase in shares.

VISION OF THE COMPANY

Leading the digital convergence revolution GROWING TO BE THE BEST As a part of vision Samsung has mapped out a specific plan of reaching $400 billion in revenue & becoming one of the worlds top 5 brands by 2020

MISSION OF THE COMPANY

DIGITAL E COMPANY excited about future to serve better services to the
people in the market of telecommunications

THE SAMSUNG PHILOSOPHY

At Samsung we follow a simple business philosophy to devote our talent and technology to creating superior products and services that contribute to a better global society. Every day our people bring this philosophy to life . our leaders search for the brightest talent from around the world ,and give them the resources they need to be the best at what they do . the result is that all of our products from memory chips that help business store vital knowledge to mobile phones that connect people across continents have the power to enrich lives and thats what making a better global society is all about.

OUR VALUES
We believe that by living by strong values is the key to business. At Samsung a rigorous code of conduct and these core values are at the heart of every decision we make .

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PEOPLE
Quite simply, a company its people. At Samsung ,we are dedicated to giving our people a wealth of opportunities to reach their full potential

EXCELLENCE
Everything we do at Samsung is driven by an unyielding passion for excellence and an unfaltering commitment to develop the best products and services on the market.

CHANGE
In todays fast paced global economy, change is constant and innovation is critical to a companys survival. As we have done for 70 years, we set our sights on the future ,anticipating market needs and demands so we can steer our company towards long term success .

INTIGRITY

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Operating in an ethical way is the foundation of our business .everything we do is guided by a moral compass that ensures fairness respect for all stakeholders and complete transparency .

CO-PROSPERITY
A business cannot be successful unless it creates prosperity and opportunity for others .Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where we operate around the globe.

PRINCIPLES OF THE COMPANY

We comply with laws and ethical standards. We respect customers, shareholders and employees. We are socially responsible corporate citizen. We care for the environment health and safety. We maintain a clean environmental culture.

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SAMSUNG COMPETITORS
PRODUCTS DRAM NAND flash Large size LCD panel Active matrix OLED Lithium iron battery LCD monitor Hard disk drive Multifunction printer Television sets(LCD,PDP,CRT) Mobile phones PDP panel 30.5% Samsungs global m/s 34.3% 40.4% 26.2% 90.0% 19% 16.1% 9.5% 16.4% 23% 21% competitors Hynix Toshiba LG display LG display Sanyo Dell Seagate technology HP LG electronics Nokia LG display 20% 14.6 % 34.9 % 19.2 % 13.7 % 37.8 % 34.8 % M/S 21.6 % 28.1 % 25.8 % 2008 2009 2008 2007 2009 2009 2009 2008 29 30 31 32 33 34 35 37 year 2009 2008 2009 source 26 27 28

MARKETING STRATEGY OF SAMSUNG

Aggressively hawking flips tops and clamshells with polyphonic ring tones and color screen. Nationwide distributer and retail presence in the consumer durable market. Samsung has been associated with the Lakme India fashion week for its mobile phones the company used the LIFW 2005 as a platform to launch D500,worlds best mobile phone in the Indian market.

Set up a hand set manufacturing facility in India

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S.W.O.T ANALYSIS OF THE COMPANY STRENGTH

New product concept to rollout in five month. Catching the pulse of the consumer offering design & understanding emotions. Heavy investments in technology. Focus on innovative products.

WEAKNESS

Not proactively coming out with newer mobiles. Lack in product differentiation. Different models at different price points. Focus on mass market. not very user friendly designs

OPPORTUNITIES
Distinguish its service from competitors offer product variation. Demand for cell phones driven by the servers providers or carriers. Tie up with service providers lowering the price of the phone just by $20.

THREATS
Motorolas dominance in the US the European market controlling more than world market. Aggressive competitors including Sony Erikson, Siemens eating into its share. Not keeping track of the new trends in the market. Not an accessory and fashion statement.

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CHAPTER-2 OBJECTIVES AND METHODOLOGY

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SIGNFICANCE OF THE STUDY

The present study is quite significant because it discusses values cultures vision, mission and strategies of two companies .Nokia and Samsung to make comparative analysis between these two companies it identifies the current positions of the company . The report finds that high quality and advanced technologies are important factor for Nokias success moreover they are concentrating on ne area that is telecommunication while Samsung is indulging in many areas Moreover the other finding is that Nokias financial position is surpassing its competitors in the telecommunications report concludes that Nokia has established its leadership in telecom companies Samsung is gaining its area in style point of view or advanced features in their products.

MANAERIAL USEFULLNESS OF THE STUDY

Managerial usefulness of the study is to analyse the comparative study between Nokia and Samsung. compare between there market strategies and to know about there vision mission and there future plans the respondents were discussing the questions prior to reply thus there could be biasness different promotional schemes were not known by the respondents. The customer analysis of this coursework highlighted that the upper segment of the population are the major consumers of mobile phones extensive research was conducted into yhe strategies being implemented for the rural market .the prominent brands in Indian cellular phones are Nokia and the Samsung .

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Nokia has the single largest market share in India of 60%and the we have noticed that Nokia is the only competitor of Samsung but Nokias major competitor is Sony Ericson since these are very prominent players in the market

OJECTIVES OF THE STUDY

To know about the cellular industries. To help consumers to know about the companies their products and the future over comings To know about the brand Nokia and the Samsung their products, market strategies, values mission adopted in the cellular companies. To know consumer behavior towards Nokia and Samsung.

SCOPE OF THE STUDY

As learning is the human activity and is as natural ,as breathing despite of the fact the learning is all pervasive in our lives, psychologists do not agree on how learning takes place .how individuals learn s a matter of interest to marketers they want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and the new ways of behaving that will satisfy not only the consumer needs, but the marketers objectives. The scope our study restricts itself to the analysis of CONSUMER BEHAVIOR, perception of Nokia and Samsung.

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LIMITATIONS OF THE STUDY

The findings of the study will be based on opinion of the respondents, which may be based. The study is confined to rohini residential areas Lack of time and finance may prevent from carrying out in depth study.

RESEARCH METHDOLOGY
Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research.

Research Design
Type of Research: - Descriptive research Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.

Data Source:
There are two types of data.

Primary Data:

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 The data was mainly obtained from the people feedback on the questionnaire which was distributed by the group members at various places

Secondary Data:
The secondary data was obtained from various journals, internet, magazines etc.

Research Instruments
Selected instrument for Data Collection for Survey is Questionnaire.

Sample Design
Who is to be surveyed? The marketing researcher must define the target population that will be sampled. The sample Unit taken by me; General public of different age group, different gender and different professions.

Extent:Where the survey should be carried out? I have covered entire residential area of Delhi city for the survey

Time Frame:When the survey should be conducted? I conducted my survey for 1week

Sampling Frame:The source from which the sample is drawn

Sampling Technique: How should the respondent be chosen? In the Project sampling is done on basis of Probability sampling. Among the probability sampling design the sampling design chosen is stratified random sampling. Because in this survey I had stratified the sample in different age group, different gender and different profession Sample Size/ Population Size: - How many people should be surveyed? My sample size is 50

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CHAPTER-3 CONCEPTUAL DISCUSSION

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CUSTOMER SATISFACTION
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

MEASURING CUSTOMER SATISFACTION

Organizations need to retain existing customers while targeting non-customers; Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. Work done by Paraguayan, Zenithal and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Paraguayan, Zenithal and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of their perception and expectation of performance of the service being measured.

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METHODOLOGIES

American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth. On the microeconomic level, research has shown that ACSI data predicts stock market performance, both for market indices and for individually traded companies. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private sector companies and government agencies in order to improve loyalty and purchase intent. Two companies have been licensed to apply the methodology of the ACSI for both the private and public sector: CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results applies the ACSI to websites and other online initiatives. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector[5], higher education and electronic mail The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model. SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer to indicate the gap between customer expectations and experience. J.D. Power and Associates provides another measure of customer satisfaction, known for its top-box approach and automotive industry rankings. J.D. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards. Other research and consulting firms have customer satisfaction solutions as well. These include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence framework and which helps define a companys status against eight critically identified dimensions. For Business to Business (B2B) surveys there is the Info Quest box This has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket survey.

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IMPROVING CUSTOMER SATISFACTION

Published standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organizations attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention

CURRENT STRATEGIES

In my view, product development and market penetration are the strategies being currently used by Nokia. Since Nokia operates in an extremely dynamic industry where technology becomes obsolete in the span of six months or even less, Nokia has taken to making forecasts every three months and revising their strategies accordingly. The markets on which they are focusing for penetration include markets with low mobile subscription rates relative to the size of the population, geographic areas where it is more cost-effective to build wireless infrastructure than fixed-line networks, and heavily populated areas. One of the ways they have implemented this is the use of vernacular rendition of communication in their promotion campaigns to appeal more closely to possible consumers. So if you are in Tamil Nadu, you would hear the advertisements and other promotion campaigns in Tamil, and if in Karnataka you would hear them in Karnataka. Nokia does not believe in restricting itself to just basics. They intend to enter new product and service niches, which they expect will emerge as technologies from diverse industries start to converge, especially in the area of consumer multimedia. Their strategy is to explore, identify and extract revenue from the most profitable and fastest growing segments of the consumer multimedia business and its value chain by anticipating consumer needs in this area, and developing innovative products and services. In the near term, they intend to focus on

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imaging and games, where they have already introduced a number of products. Their strategies to drive consumer multimedia will also consolidate their strong position in the consumer voice market. While Samsung is focusing on only the quality and the features of there products consumer durable market. while Samsung introducing them as aNationwide distributer and retail presence in the

Graph showing the number of mobile phone users at the year end for the last four years 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2006 2007 Year 2008 2009

There are no domestic players in the mobile phone industry at the moment. There is a larger presence of international brands in the market. Therefore, competition in the Indian market is primarily from the foreign companies. There is no indigenous competition as such. However, as I will be discussing in the later sections, I have noticed that there is high brand loyalty to these companies. The various companies operating in the Indian market are: Nokia Sony Ericsson Samsung Motorola Panasonic .The major player is Nokia, on whom I will carry out intensive research, to help in determining its relative strengths and weaknesses as well as its strategic approaches. Nokia has a full range of mobile phones. They focus on the lower segment as well as the higher-end segment of the market. They offer a variety of products in each range,

No. of users (in millions)

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with prices varying according to how much the consumer is able to spend on a mobile phone. However, they have phones which are targeted at the bulk of the population in general. For example, the Nokia 1110i phone is in the lower price range, but its features and appearance are appealing to the lower class as well as the middle class. In the full range in India, Nokia has 29 models (out of which 2 are CDMA), whereas comparatively Sony Ericsson has 18 models (all GSM), Motorola has 16 models and Samsung has 10 GSM phones and 4 CDMA models.

Pest Analysis
The PEST analysis is a Macro analysis which analyses the environment of a market. PEST is an Acronym for Political, Environmental, Socio-cultural, and Technological. With these four parameters, a marketer can get a very good idea about the market conditions, and if found suitable the marketer can analyze the feasibility of venturing into the market.

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CHAPTER-4 DATA ANALYSIS

1.

Do you have any mobile phone PARTICULARS NUMBER %AGE

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YES NO

50 0

100% 0%

INTERPRETATION:
All the respondents had mobile phone

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2. How many mobile phones do you have : PARTICULAR 1 2 3 3+ NO. OF RESPONDENTS 37 13 0 0

INTERPRETATION
Out of 50 respondents 37 says that they had 1 connection while 13 were having 2 connections

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3. Which mobile are you using ? PARTICULAR NOKIA SAMSUNG OTHER NO. OF RESPONDENTS 27 16 7

INTERPRETATION:
Out of 50 respondents 27 were using NOKIA while 16 respondents were using MOTOROLA and 7 were using others.

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4. Are you satisfied with the services PARTICULARS Yes No NUMBERS 41 9

INTERPRETATION:
Out of 50 respondents 41 respondents were satisfied with the services of there particular mobile while only 9 were not satisfied

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5. Which facility attracts you most ? PARTICULARS PRICE STYLE BATTERY BACK UP MEMORY OTHER NOKIA 29 14 36 24 17 MOTOROLA 12 15 36 16 15 OTHERS 9 21 7 10 18

INTERPRETATION Out 50 respondents most of the respondents prefer Nokia then Motorola and others

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6. Which advertisement media puts more impact on your buying decision ? PARTICULARS TV MAGAZINES NEWPAPER INTERNET OTHERS NO. OF RESPONDENTS 28 04 10 05 03

INTERPRETATION: Out of 50 respondents 28 gets aware of mobiles T.V, 5 by internet,10 by news papers, 03 by others while 04 by magazines.

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7. From how long you are using this particular service mobile PARTICULARS 1 2 3 More than 3 years NO. OF RESPONDENTS 10 25 11 4

INTERPRETATION: Out of 50 respondents 10 were using there particular mobile since 1 years, 25 since 2 year, 11 since 3 years while only 4 were using there mobile from more than 3 years.

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8. Would you like to change your current mobile in future ? PARTICULARS No. of RESPONDENTS YES 18 NO 32

INTERPRETATION:
Out of 50 respondents 32 did not want to change there current while only 18 respondents want to change there mobile.

Q.9What qualities of mobiles are important to you while buying mobiles? Rank them in order of 1 to 9, where 1 being the most important and 9 being the least important. Criteria RANK IN( %) Most preferred prefer Maintenance No effect

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Durability Style/ Design Price uniqueness Comfort (edges) FM Table of figure no. 4.5
100 90 80 70 60 50 40 30 20 10 0 M ost preferred M ost preferred M aintenance Durability prefer Style/ Design Price uniqness No effect Comfort (edges) FM

Interpretation The following are important criteria as suggested by the

respondents, Maintenance 80%, 15%, 5%, Durability 64%, 24%, 12%, Style/ Design 72%, 26%, 2%, Price 30%, 60%, 10%, Uniqueness 14%, 12%, 74%, Comfort (edges) 92%, 08%, 0% and FM 94%, 4% and 2%. Q.10 Rate the following brands based on your perception on the mentioned criteria on a scale of 1-6 where, 1= Below Average 4= Good Criteria Maintenance Durability Style/ Design Color Size Price Availability Lightweight Comfort 2=Average 5= Very good Nokia 5 6 4 5 4 4 4 4 5 Sony Ericsson 4 5 4 4 4 2 4 3 5 BenQ 2 2 3 3 3 2 1 3 3 51 3= Satisfactory 6= Excellent Panasonic 1 1 2 3 4 3 1 4 3 Samsung 3 3 5 4 5 5 3 5 4

Table of figure no. 4.6

6 5 4 3 2 1 0

Nokia

Sony Ericsson Durability Availability

BenQ Style/ Design Lightweight

Panasonic Color Comfort

Samsung Size

Maintenance Price

Interpretation
Nokia is the clear leader in this question of preference asked to the respondents.

Q.11 Are you currently using Nokia? What is your opinion about it? Effect Yes No Table of figure no. 4.13 64 36 No. of people (%)

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36%

64% Yes No

Interpretation
64 % are using Nokia mobile phones whereas rest of the people are using other mobile phones.

Suggestions given by the people ..

During our survey we asked the people to give some suggestions to the compananies there is similar suggestion for both the companies given by 25 peoples that they should not increase their prices. And 1 suggestions given by only 1 person out of 50 that is cellular companies that there should be some function to indicate the person is driving this will not avoid accidents during driving.

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CHPATER-5 FINDINGS AND RECOMMENDATIONS

FINDINGS
Nokia introduces a new phone into the market every two or three months. In Nokia's human resource management, the features are to improve employee's techniques by regularly training and developing effective

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teamwork. While Samsung always improving model of their product with different features Nokia's financial position is surpassing its competitors in telecommunication. While Samsung in indulging itself in more than telecom it has more products more than mobiles. Nokia has established its leadership in mobile phone market according to its successful marketing strategies and internal management. while Samsung is always trying to indulge with media . Nokia's philosophy is to learn continuously, to satisfy consumers, and to respect individual and pursue professionalism.

RECOMMENDATION
After analyzing all the data we have some recommendations such as:Advertisements: -

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Nokia use advertisement mode of promotion after launching a new cell phone in the market. So people dont have much knowledge about their latest models. While Samsung have lots of ads in market before launching it EXAMPLE: Giving advertisement on television or cable Giving print media add which explain all the features of cell phone SPECIAL SCHEMES: Nokia always launch high range products. So to increase the sales it has to give advertisement or special discount or special schemes with every purchase of new cell phone. Samsung have color variety in their cell phones as Nokia dont have this much.

CONCLUSION

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The customer analysis of this coursework highlighted that the upper segment of the population are the major consumers of mobile phones. Extensive research was conducted into the strategies being implemented for the rural market. Nokia and Sony Ericsson segment the market on a similar basis. However, they have different interpretations Nokia has saturated the urban market including the B and C class cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its energies on the B and C class cities since which it had not ventured into so far. The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson, Motorola, and Samsung. Nokia has the single largest market share in India of 60%. We have analysed that Nokia is better than Samsung . Nokia and also on one of its major competitors; Sony Ericsson since these are very prominent players in the Indian market.

ANNEXURE

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For Study of consumer behavior towards NOKIA and SAMSUNG Name Contact no.Sex- male female

1. Do you have any mobile? Yes No

2. How many mobile do you have? 1 3 2 3+

3. Which mobile are you using? Nokia Samsung

4. Are you satisfied with the services? Yes No

5. Which facility attracts you most? Price Battery Others 6. Which advertisement media puts more impact on your buying decision? T.V Newspapers Magazines Internet Call Style Memory

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Others

7. From how long you are using this particular mobile? 1 year 3 years 2 years More than 3 years

8. Would you like to change your current mobile in future? Yes No

If yes then why

Q9.

What qualities of mobiles are important to you while buying mobiles? Rank them in order of 1 to 9, where 1 being the most important and 9 being the least important.

Criteria

RANK (From1-9) Most preferred preferred No effect

Maintenance Durability Style/ Design Price uniqueness Comfort (edges) FM Q10. Rate the following brands based on your perception on the mentioned criteria on a scale of 1-6 where, 60

Criteria Maintenance Durability Style/ Design Color Size Price Availability Lightweight Comfort

Nokia

Sony Ericsson BenQ

Panasonic

Samsung

Q11. Have you ever used Nokia? What is your opinion about it? Yes No

Q12. ARE THERE ANY GENERAL COMMENTS YOU WOULD MAKE ABOUT WHAT YOU LIKE / DISLIKE ABOUT MOBILE PHONES?

APPENDIX

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BIBLIOGRAPHY
BOOKS
Kothari, C.R.(2007), Research Methodology Methods and Techniques,

INTERNET:
1. www.wikipedia.com 2. www.projectsmonitor.com 3. http://www.nokia.com 4. www.samsung .com

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CHPATER-5 FINDINGS AND RECOMMENDATIONS

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